CEDAR RAPIDS, Iowa - The record-setting floods tested the resourcefulness, mettle, and patience of credit union CEOs in this state, who are still guiding their CUs through the disaster. Leaders of five of those credit unions allowed Credit Union Journal to follow them through the early days leading up to the floods, and then the days the floods struck. Here are their stories, told in real time.
Friday, June 13
First Federal CEO Tim Byers acknowledges he was not prepared for the speed of the rising water. “I have to admit this came on us fast, especially since our downtown branch was determined to be out of reach of original flood projections,” says Byers, who hopped into a boat to save his data processing server. Byers borrowed the boat from a board member who joined the CEO and a small team of CU staff to break a window and enter the flooded branch, remove the computer equipment, and transport it to the CU’s Hiawatha, Iowa location.
Also amazed at how quickly the water rose, Rick Benhart, CEO of Collins Community CU, says conditions have everyone “dazed” after a tough week of moving operations out of two locations. “My staff is in shock,” Benhart said. “There’s tens of thousands of people who have lost tremendous amounts. When your river is 20 feet above flood stage…it’s just unbelievable.”
The $470-million Collins Community– along with Metco CU, Iowa Community CU, and Des Moines Metro CU–moves fast to execute disaster recovery strategies and transport data processing equipment and critical records out of branches to other locations or hot spots provided by CU neighbors.
CEO Brent Helin, a veteran of the ’93 flood, is confident the safe deposit vault at Des Moines Metro will hold out if water advances to it. “I had four cans of hydraulic bearing grease given to me after the 93 flood and I used all of them to coat the seals around the vault. Let’s see what the weekend brings.”
Monday, June 16
Heavy weekend rains held off and the rivers are receding. With concern about the safety of flooded buildings, police and National Guard checkpoints are making it nearly impossible to navigate Cedar Rapids and determine damage. Mark Heth, of the $68-million Iowa Community CU, believes only his basement is flooded in his Cedar Rapids branch, but doesn’t really know.
“You have to get a permit to get to your building,” says Heth, sharing some frustration. Meanwhile, a branch of Collins Community CU is serving as ICCU’s temporary Cedar Rapids location.
Brad Mertens, CEO of the $20-million Metco Credit Union here, says the CU is operating well out of Quaker Oats Credit Union, where temporary three teller terminals have been set up. “We’re still having a few back-office issues, setting up technology. But our members don’t see that. We’re OK today, much better than last week.”
Helin, who says the $38-million Des Moines Metro CU closed its main office located 200 yards from the Des Moines River for “fear” of flooding, is operating from two hot spots: one at First Class CU and another at United Service. With Des Moines not as hard hit as Cedar Rapids and his location dry today, Helin expects to re-open tomorrow. The $112-million First Federal and Collins Community are using their other branch locations to keep business going.
Tuesday, June 17
It’s a better day today, say most CEOs, with police and National Guard lifting some access restrictions. Byers gets a first-hand look at the main First Federal branch, and he’s not happy. “I just got out of the building and it’s sickening. It’s really sad. My place is mud and people’s homes are mud. It’s dirty, muddy chaos. I’m going back later today and meet the insurance adjuster.”
Benhart of Collins Community expects to look at the branch near the Cedar River. “I think we’ll get a chance to assess damages. We’ll try to get equipment rounded up–gas generators and pumps. We do know there is water in the basement but no damage to the main floor. We feel extremely fortunate.”
Metco’s Mertens is hoping to “plead his case” at the police barricades. “You have to have a permit, which I don’t have. I still haven’t seen my credit union. I have to admit this is getting very frustrating. I was hoping today to assess the damage and get what I need ordered.”
At Des Moines Metro, Helin says he’s “well off,” having opened for business at 11:30 this morning. It’s “business as usual” tomorrow.
Wednesday, June 18
In many areas the water has receded and the area is slowly drying. And despite looking like a “war zone” with “heaps of trash” from people cleaning out damaged homes, access to CUs is easy today and now it’s time to think about reopening dates, CEOs tell CU Journal. Metco’s Mertens is “pleasantly surprised” to see his CU has been spared form any real damage. “With everyone around me taking on water, I only have a quarter inch on my basement floor. Only thing I lost was my employees’ food in the refrigerators. I hope to reopen Monday.”
First Federal’s Byars says “downtown is pretty much open now. We’ll be cleaning up the credit union and drying out for the next 10 days, then we spray for mold. Our contractor says we’ll be in within eight weeks. We have the plan worked out now and we’re on the other side of this mess. We’ve turned the corner. I think damage will be about $750,000.”
Benhart learned damage to his branch was limited to the basement. “We have no water on the first floor at all. We have seven feet of water in the basement and will likely have to throw out a couple furnaces, but not much more. We’re beginning cleanup today and we may be operating in two weeks.
Throughout the ordeal, CUs battling floodwaters looked for ways to assist members, boards met to discuss special loans, cash, advances, and payment deferments. “The physical issues we are facing with our facilities I feel good about. The concern now is for our members,” Benhart says. “What products do we offer? What will the government programs and FEMA support do for our members? It’s very frustrating to me. There are members who are hurting deeply and they’ve lost everything. We plan to talk to a number credit union tomorrow who have gone through a similar situation to learn best practices from them–not only on what to offer members, but how to help them through this.”(c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com http://www.sourcemedia.com
