Sunny Days Returning to Florida
After six years of stagnation and economic hardship, Florida is slowly coming out of the recession cocoon.
Recently, the Sunshine State's unemployment rate fell to 8.5%, the lowest in nearly four years, and combined with the momentum of the housing market, it clearly shows that Florida is on a positive path and has been for months. Pending home sales, closed sales and prices are all trending up.
The $1.85 billion Pen Air Federal Credit Union reported a respectable 5.23% loan growth to the NCUA as of Sept. 30, and a ROA of 0.83%. But with a delinquency rate of 9.27% and charge-offs at 1.33%, it shows that the recovery in Florida may take some time.
“Pen Air FCU is located in Northwest Florida, and we also serve members in the neighboring Baldwin County, Ala.,” said Patricia M. Veal, vice president of marketing for Pen Air FCU. “We may not necessary be the norm for the rest of Florida, but it seems we are all facing the same issues with the economy and the housing market.”
MCFCU’s ROA as of Sept. 30 was 0.33%, a big improvement over last year, Barco said.
“The credit union experienced its highest year of loan loss in 2011 due to mortgage depreciation and loss,” Barco explained. “Charged-off loans in 2011 increased 83% over 2010, with 62% of total charge-offs being mortgage loans. This resulted in large provision for loan loss expense in 2010 and 2011.”