Credit unions across the Mid-Atlantic region are preparing for the worst as Hurricane Florence barrels toward the East Coast.
The storm's projected impact is currently centered on the Carolinas and Virginia, but the threat to Washington, D.C., was significant enough to lead the National Association of Federally-Insured Credit Unions to cancel its annual Congressional Caucus less than 24 hours before the event was set to kick off.
South Carolina Gov. Henry McMaster has ordered all coastal residents in the state to evacuate by noon Tuesday, along with closing all schools and state government offices in more than two dozen counties.
The National Hurricane Center currently lists Florence as a Category Four storm, but said Tuesday that it is “expected to re-strengthen later today,” with a life-threatening storm surge possible along the coasts of North and South Carolina, featuring maximum sustained winds of 130 mph.
The storm is expected to make landfall by late Thursday and at least one CU has already closed for evacuation.
Brandon Pugh, VP of public relations and communications at the Carolinas league, said as of Tuesday morning, $110 million-asset Georgetown Kraft Credit Union had shut down operations in preparation for the storm. Georgetown Kraft CU is based in coastal Georgetown, S.C., one of the areas ordered for evacuation.
By late Tuesday, credit unions acros the region had already shut their doors or were announcing plans to close in advance of the storm.
Charleston-based CPM Federal Credit Union shuttered six branches shortly before noon Tuesday, while Greenville-based SC Telco FCU announced plans to close its Florence branch at 2:00 p.m. on Wednesday.
In Summerville, S.C., $621 million-asset Herritage Trust FCU has closed all locations until further notice. Meanwhile, $1.7 billion-asset South Carolina FCU in North Charleston as closed financial centers in Charleston and Georgetown, with a Florence branch set to shut down Wednesday afternoon.
The Carolinas Credit Union League and Carolinas Credit Union Foundation are currently “fielding reports of closings and preparing to support any credit union facilities, staff and volunteers affected by the storm.”
The Carolinas Foundation stated that it is “prepared to disburse aid to disaster-stricken” credit union employees and volunteers through its disaster relief grant application process.
In addition, CUNA Mutual Group has activated its disaster team, which will contact credit unions in the Carolinas that may be affected, provide information on how to report a claim and follow up regarding the storm.
Some schools in the state have reportedly also been closed indefinitely in order to be used as shelters for evacuees.
Raleigh readiness
Hurricane Florence is also on track to have a significant impact on Raleigh, N.C., and at two of the region’s largest CUs based there, preparations are underway.
Joseph Mecca, VP, communication-spokesperson at the $3 billion Coastal Credit Union in Raleigh said the CU’s inclement weather team is monitoring the weather forecast and thinking ahead to later in the week.
“It’s still too early to say 100 percent if we expect any closings, but at this point all of our locations are in the path of Florence,” he told CU Journal. ”However, we have strong business continuity program in place, and have gotten good at ensuring the safety of our employees while minimizing impact to members when we have bad weather and need to close.”
Leigh Brady, executive vice president-organizational development at the $38 billion State Employees' Credit Union of Raleigh, said SECU is “making preparations to help ensure continuity of service, as well as the safety of our employees.”
If the hurricane stays on its current track, she added, “we do expect some closings to occur.”
SECU subsequently announced the closure of more than 10 branches and service centers due to the storm.
In Durham, N.C., Duke FCU has announced plans to close at noon on Thursday, Sept. 13, and remain closed through the following day.
The $722 million-asset Marine Federal Credit Union of Jacksonville, N.C., closed all of its branches in both North Carolina and South Carolina as of 2:00 pm Tuesday and will re-open Saturday, September 15 (subject to change).
Mid-Atlantic could take a heavy hit
Further north, the Virginia Credit Union League stated that while it is too soon to know the exact track Florence will take, the majority of forecast models are indicating “significant potential impacts” to the Commonwealth in the form of coastal storm surge, catastrophic inland flooding, high winds and possibly widespread power outages.
Gov. Ralph Northam has already ordered mandatory evacuation for parts of the Hampton Roads area and Eastern Shore.
“Our credit unions are closely monitoring the storm, as is the League,” said Lewis Wood, vice president, public relations and communication at the Virginia Credit Union League. “Credit unions will use appropriate caution, with the safety of employees and members in mind when deciding whether to open branches.”
The National Hurricane Center has advised that while the storm is expected to weaken on Thursday, “Florence is expected to be an extremely dangerous major hurricane through landfall. The combination of a dangerous storm surge and the tide will cause normally dry areas near the coast to be flooded by rising waters moving inland from the shoreline.”
The storm is also expected to produce total rainfall accumulations of 15 to 20 inches with isolated maximum amounts to 30 inches near the storm's track over portions of the Carolinas and Mid-Atlantic states from late this week into early next week. This rainfall, NHC added, could produce “catastrophic flash flooding and significant river flooding.”
This story was updated at 4:54 P.M. ET on Sept. 11, 2018.
