Lynn Paulson doesn't recognize Grand Forks anymore.
"It's a disaster beyond comprehension," said Mr. Paulson, president of Citizens State Bancorp. in Grafton, a North Dakota town 40 miles west of the flood-stricken city.
"You see this stuff on TV, but until you've seen it, smelled it-TV just doesn't do it justice."
The once bustling streets of Grand Forks, an economic and agricultural hub in the eastern part of the state, are awash in sewage and debris. The Red River has overrun an area that Mr. Paulson described as like a "war zone."
He and other bankers in North Dakota and western Minnesota are trying to figure out how to revive an area devastated by the river's worst flood in this century. The waters of the Red River crested above 54 feet eight days ago-surpassing the record 48-foot flood of 18 years ago.
Miraculously, all of the 24 banks in the area that had closed at one point during the disaster and its associated fires were up and running by Friday.
But to pull off this feat, many of these institutions have had to take up temporary quarters in trailers, vacant office space, or other branches away from the impact zone. Some have set up toll-free numbers to improve customers' access.
Scores of cash-strapped refugees trudged into bank branches in Grand Forks and in East Grand Forks, which is across the border in Minnesota. Most wanted to withdraw cash or write checks, but bankers say they are trying to maintain full-service operations. Automated teller machines that are not in the flooded or evacuated areas stayed in use.
"Their immediate concern is to make sure that the flood victims have banking services, from being able to cash checks to getting temporary loans," said Gary Preszler, commissioner of the North Dakota Department of Banking and Financial Institutions.
Minnesota and North Dakota banking officials are calling upon bankers to waive the fees they would normally charge noncustomers.
"A lot of these people were displaced in the middle of the night with no advance preparation," Mr. Preszler said. "Some need cash."
Thompson, a town south of Grand Forks, saw its population of 930 double in the past week. So has business at the nearby First State Bank of Buxton. The $30 million-asset bank is setting up a temporary loan pool to help people with cleanup expenses and losses of income.
"We've noticed an extremely big jump in business," said Barry Hanson, vice president at First State. "You will do whatever it takes to work for those people."
The regular competition among the banks has given way to a spirit of cooperation. For now, the banks aren't battling each other with loan promotions and CD rates. As one banker put it, "the competitiveness has been put on hold."
Steven Worwa, president of American Federal Savings Bank in East Grand Forks, flew a small plane over the city of Grand Forks to get a firsthand look at the damage.
He saw one of his thrift's offices under 12 feet of water in an area that looked more like a reservoir than a city.
Under that water also lay many of the homes with American Federal mortgages. About 25% of the institution's loan portfolio is concentrated in the Grand Forks-East Grand Forks area.
"The fact that no one has died is almost miraculous, considering what has happened," Mr. Worwa said.
American Federal is working with customers and employees who have lost everything and says just staying open is one way to help the community deal with the damage.
"As long as we can keep the paychecks coming, people will be able to rebuild," he said of his own employees. "That is our intention."
To keep the money flowing, federal and state agencies have announced an array of loan programs.
The Federal Home Loan Bank of Des Moines earmarked $100 million of below-market loans for all of its member financial institutions located in flood disaster areas.
For banks suffering losses of their own, the Home Loan bank is offering immediate access to special adjustable-rate advances to ease liquidity problems.
The Federal Reserve Board said banks can ease credit terms to help new borrowers get back on their feet and can restructure or extend repayments for existing borrowers. The Fed is also considering the need to waive its appraisal regulation for real estate-related transactions affected by the flooding.
Norwest Corp., the Minneapolis-based superregional, has established a $5 million low-interest loan pool for flood victims. The bank is sending a tractor-trailer full of bottled water to Grand Forks.
First Bank System donated $65,000 to the American Red Cross for flood relief efforts in Minnesota, North Dakota, and South Dakota.
Bank of North Dakota, which is owned by the state, extended a $25 million line of credit to the North Dakota National Guard and State Division of Emergency Management to fund relief efforts.
John Hoeven, president of the Bank of North Dakota, is leading an effort to get federal agencies, such as the Federal Emergency Management Administration, to work with area bankers. A meeting is expected to take place sometime this week to discuss what bankers can do to help.
Terry J. Jorde, president of Towner County Financial, Cando, N.D., is joining in on relief efforts from 120 miles away from Grand Forks. She said she is fielding calls from bankers across the country who want to pitch in.
Ms. Jorde, chairman of the Independent Bankers Association of America's agriculture rural America committee, said the state banking associations are compiling information on crisis counseling, mortgage and rent assistance, and business loan programs so member banks can act as information centers.
"It has really affected the entire state," Ms. Jorde said. "Grand Forks is a pretty good-size city for North Dakota."
