ALVIN, Texas - In the aftermath of Hurricane Ike, which battered the Texas coast and ripped inland all the way to the upper Midwest, credit unions are demonstrating their resiliency and dedication to serving members.
As Credit Union Journal was going to press, NCUA was reporting that two CUs had yet to be contacted and 32 were not operating. Meanwhile, many credit unions have been fighting hard to remain open, patching roofs, operating member service stations under battery-powered emergency lighting, and connecting to hot sites via modems to run limited services at branches. Some CEOs even stayed overnight at the office to oversee disaster recovery during the storm.
Ike, one of the worst Category 2 hurricanes in recent years, adversely impacted 179 credit unions, the National Credit Union Administration reported. In Texas, which took the brunt of Ike's force, some CU locations were believed to have been destroyed completely, the Texas Credit Union League told Credit Union Journal. Homes of many members and CU staff were damaged or destroyed, as well, but no lives were lost, according to leagues in states along Ike's path.
In Alvin, Tex., Gary Davis' determination to get keep the CU up and running was apparent when his $70-million Chocolate Bayou Community FCU's main office was closed for just one day after Ike ripped off half its roof.
"The water poured in," said Davis, who chose to weather the hurricane at the credit union. "I heard a big noise and I knew it was the roof. I thought it was the air conditioning units being torn away above my data processing room. Luckily that room was bone dry."
First Good Sign: Roofers' Arrival
Roofers arrived on Sunday and the CU was operating under generator power last week, serving members from two computer terminals.
"Amazingly, members have been coming to us for deposits as much as withdrawals," Davis explained. "Many of them got paychecks right before the storm hit and couldn't get them deposited. They wanted to use their debit cards. Our members have been so appreciative that we are open. I believe we are the only financial institution open in the area."
That was clear to members and non-members, said Davis. "We had residents stop by and tell us their banks could do nothing for them and that they'd be back to open an account."
Kim Heinze, president and CEO of the $242-million Mobiloil FCU in Beaumont, Tex., also rode out the storm at her main office and watched as her disaster recovery systems worked flawlessly. "Following Hurricane Rita, it's great to see the investment we made in our disaster recovery program has paid off for the credit union and our members," Heinze said.
MFCU's main office in Beaumont was open Sept. 15, the Monday following Ike's weekend visit. But the credit union was already assisting the community before the work week started. Heinze walked to a nearby CVS on Sept. 14 and learned that the pharmacy was shutting down because they didn't have $1 bills to make change. The CEO headed to the credit union, and with the help of her branch manager pulled $200 in singles from a cash dispenser.
"We banded them up and took them to the CVS cashier, who was so thankful," Heinze said. "I knew residents needed the pharmacy to remain open during this very difficult time."
In Port Neches, Texas, the $236-million Neches FCU was hoping to use modems last week to link damaged branches to its hot site to run drive-through lanes. But before the storm arrived, credit union staff put in overtime to help members.
"The day they called for mandatory evacuation we stayed open at all of our locations," explained CEO Jason Landry. "Our staff stayed behind and we kept the drive-throughs operating as long as we could to help as many people as possible. We had lines out to the streets."
Landry, like most CEOs who spoke with Credit Union Journal, said it was too early to gauge damage totals, and that restoring electricity has been the biggest obstacle to getting operations back to 100%. CU leaders' estimated from days to weeks before power is returned.
Power was not a problem at the $16-million Bayou City FCU, which remained open without any issues, reported CEO Ron Groth. "We are very fortunate that we're located in a medical center area considered critical here in Houston, and therefore did not lose power, phone or Internet," he said. "We are up and running, full service."
Ike Slams Through Midwest
When Ike made its swing through the upper Midwest Sept. 14, knocking out electricity to millions of homes and businesses, the lack of power didn't prevent the Cincinnati-based Kemba CU from opening its doors last Monday.
The $380-million Kemba opened nine of its ten branches for "limited services," most operating under battery-powered emergency lighting, said President and CEO Steve Behler. "We had enough management staff to be at the front doors so security was not an issue. We decided to open because we knew our members needed access to their money and our service. That's what we had to do."
"This is incredible to think a hurricane could affect credit unions in Ohio," said Patrick Harris, spokesperson for the Ohio Credit Union System, who reported last week that the league was aware of 12 Ohio CUs that were not operating due to lack of power.
The force of Ike's winds took a lot of people in the Midwest by surprise, acknowledged Members First Credit Union CEO Greg Kidwell, who was only three hours away from initiating the Columbus-based credit union's disaster recovery plan last Monday, when power came back at 8 a.m. "We had no idea that we would have the highest recorded sustained winds in the history of Columbus weather record-keeping. It was incredible."
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