CU Still Picking Up The Pieces After Deadly Tornado

JOPLIN, Mo.-While some credit unions here are just getting their offices back to normal after riding out one of the deadliest tornadoes to strike the U.S. in 50 years, one CU continues to struggle with after-effects that aren't going away anytime soon.

Credit Union Journal reconnected with a number of CUs that were affected by the twister that hit in May (Credit Union Journal, May 27). They reconfirmed that disaster recovery plans performed as expected-most were open for business in some fashion less than two days after suffering a punch from a storm that killed 161 people and brought $1.3-billion in insurance claims citywide, according to latest estimates. While some members lost their lives, no employees were killed.

Joplin Metro CU was fortunate that its building was spared any damage, but numerous members who lost their homes and cars have deposited big insurance checks at the $24-million CU. Those deposits have Joplin Metro rethinking its strategic plan and financial goals for 2012, said CEO Cindy Atteberry, who lost her home in the storm (see related story). "In June we received $6 million in deposits and that has lowered our loan-to-share ratio to 56.46% from 76.04%, and capital to 7.31% from 8.98%."

Atteberry said JMCU was not caught off guard by the inflow of deposits, but it is surprised the money has not flowed back out as quickly as the credit union expected. "It may be another six months until we start seeing some of those funds disappearing. We will have to look at alternative investment options to try to bring our income up."

The main office of the $287-million Great Plains FCU just got back to normal a month ago, following extensive water damage when air conditioning units ripped loose and rolled across the roof, opening huge holes. "The entire building was soaked, so we had to gut it down to the metal studs," said Controller Kelley Melton.

Half of the 23-person staff got their hours at two nearby branches before the main office reopened. A modular unit served the townspeople during the transition.

Food Stored In Boardroom
The Joplin branch of the $131-million BluCurrent CU, formerly Postal Federal Community CU, did not suffer extensive damage, said EVP Craig Tabor, but members put up for a while with an office under repair. Windows and carpet were replaced, and the interior was repainted. "We had to work on the drive-through, but fortunately the building suffered no structural damage. It took us a few months to replace everything."

Total claims by Joplin CUs totaled more than $4 million, according to CUNA Mutual Group estimates, with Great Plains likely to reach $4 million and BluCurrent CU about $80,000.

If the storm did leave something positive behind, CUs told Credit Union Journal, it is that members gained an even better understanding of the CU difference as they were helped with emergency loans, grants from money collected by the Missouri CU Association, and food and essentials.

"One of our board members had connections to get a lot of clothing and food donations," said Joplin Metro's Atteberry. "For about three months after the tornado he made trips to the credit union to stock our boardroom, which became a free store for our members. It was stocked from the floor to ceiling with canned goods, cereals, soups, shoes, anything you could imagine. It was a great feeling to be able to do that for the membership."