ORANGE, Tex. - While all eyes are on Wall Street and the plan to bail out the financial industry, credit unions along the Texas Coast are still bailing out from the flood waters of Hurrican Ike.
More than 180 Texas CUs were damaged by Ike, with five located in the hardest-hit areas near Galveston remaining non-operational, according to the Texas CU League. CUNA Mutual is still assessing Ike's widespread damage, the insurer reported.
In Orange Texas, the $6.8-million Southeast Texas Employees FCU isn't certain how it will keep operations going with mold growing every day in its 3,500-square-foot facility. "We've been working with masks in here since we opened last week," said Manager Linda Landry, whose office was flooded by Ike. "We spray with Lysol and bleach, but the smell is horrendous. We've cut back our normal hours, and I expect we will shorten them even more. But I can't expect my staff to continue to work in these conditions."
Landry said she'll likely close the office and use a mobile unit thanks to support from local credit unions. If that happens, she's unsure when the CU's main office will reopen and if STEFCU will be able to afford the expense to remove the mold.
"Restoration companies tell me they are so backed up due to Ike that it will be sometime in November before they can get here to assess the situation," Landry said. "We don't have flood insurance because I never thought waves would hit our credit union that's 16 miles inland. I'm hoping we will get this covered. It cost us $25,000 several years ago to remove mold after water pipes leaked in our office."
It will be at least two more months before the Galveston branch of the Houston-based JSC FFCU will be operating, explained Branch Manager Joetta Petteway, who had "nightmares" about money floating away and the credit union being a total loss. "Thank God that did not happen," said Petteway. "Once the waters receded and they let us back, I couldn't believe how high the water got-about four-and-a-half feet inside our office. And we're already about 12 feet above street level."
Despite their problems in Galveston, which included drying out money from a flooded vault, and in a Houston office that suffered roof damage, the $1-billioon JSC is turning its attention to helping members with a 4% 10-month signature loan with a $2,500 limit.
The Austin-based University FCU is "being as responsive as we can" to members' needs, whether that be a low-rate signature loan or deferring payments, said President and CEO Tony Budet, whose Galveston location was "remarkably undamaged." "We're just listening to members and responding to individual needs, which are unique," said Budet, whose $955-million CU has been serving Galveston members through a mobile branch stationed in the parking lot of Amoco FCU's Dickinson branch. "When members talk to us at the RV, we find that most of them break down in tears and tell us stories that have our staff in tears. It's just a tough situation down there."
In Pasadena, Texas Bay Area CU is providing members with a 12% $500 disaster relief signature loan, explained Paul Withey. "We've done 250 loans so far and 8% have gone to new members. No one else in our marketplace is doing this. Many people in the community are coming to us saying they don't need that much to go to FEMA, but the $500 is just what they need to get back on track." (c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved. http://www.cujournal.com/ http://www.sourcemedia.com/
