Hurricane Aftermath Pressures Mount on Credit Unions

The League of Southeastern Credit Unions is working with other credit unions to deliver portable generators and other supplies and resources to credit unions that are unable to service their members primarily because of widespread power outages caused by Hurricane Michael.

Even though cell phone coverage continues to be sporadic and spotty along the Panhandle’s areas hardest hit by the hurricane, the league managed to contact Friday morning with Panama City-based Bay Credit Union CEO Bob Little and CFO Bill Collins.

LSCU also has been in contact with other credit unions affected by the hurricane. Although numerous Florida and Alabama credit unions reopened their branches and call centers Thursday and Friday, some cooperatives announced they won’t be able to reopen until Monday, and a few have said their branches will be closed until further notice though their online, mobile and ATM systems are operating.

“Bay’s headquarters does have some damage, but the main problem is the lack of power,” LSCU President/CEO Patrick LaPine said. “This may be a very broad statement, but they’ve been told it could be months before they get power back. So we know this is going to be a long recovery effort. But if they can get their headquarters powered up, they can access their server. If they can access their server then people can actually work remotely as well. Job 1 is getting power back up to the branches.”

The Tyndall Federal Credit Union and the Panhandle Educators Federal Credit Union, both based in Panama City, are also having power issues, LaPine said.

Although Panhandle Educators FCU had a large hard-wired generator connected to its headquarters building, a  tree crashed into the generator during the storm, rendering it inoperable.

“They were prepared for this disaster, but Mother Nature decided to throw them a monkey wrench,” LaPine said.

CNN reported Friday that all of the buildings at Tyndall Air Force Base have been damaged. On the air force base  Tyndall FCU operates a branch but it is unknown whether it was damaged. One Facebook a photo showed Panama City’s First Federal Bank building had many of its windows blown out by the hurricane.

LaPine said other credit unions are delivering portable generators to the League’s headquarters in Tallahassee that was not damaged by the hurricane.

The other challenge, however, is delivering the generators because roads have been closed for rescue, electric utility and cleanup crew operations.

LaPine said that the league is working with another credit union and law enforcement officials in the hopes that they can safely navigate around the road closures to deliver the generators.

With every passing hour, the pressures are mounting on affected credit unions because some members are already losing their patience, as they have been unable to access cash or their accounts.

For example, some members at Tyndall FCU posted critical comments on social media while other members were sympathetic and supportive.

In response to its 115,208 members, Tyndall posted a statement on Facebook on Friday morning: “We understand that the amount of time that our systems have been down has caused you an inconvenience. We are working endlessly to get our systems restored. Our team has made progress over the night. At this time, we are working to get direct deposits processed from the last couple of days. When that is complete, we will work to bring up online banking, so you will have access your accounts.”

Panhandle Educators FCU said all of its branches will be closed until further notice, but indicated its ATMs, online and mobile banking systems are operating.

Emerald Coast Federal Credit Union in Port St. Joe also noted that all of its branches will be closed until further notice, which includes its main office that is only one-half mile from the shoreline. Although it is unknown the extent of damages, if any, to its branches, Emerald Coast stated on its site that all courtesy pay, NSF, low balance fees and ATM fees will be refunded to members.

The Avadian Credit Union based in Birmingham, Ala., said its branch in Dothan on West Main Street will be closed until further notice.

Gulf Winds Credit Union also announced that its Tallahassee branches will remain closed until damage assessments are completed.

“We are working hard to open as quickly as possible,” the credit union said.

Other credit unions will not be able to reopen until Monday.

“We have begun the cleanup after Hurricane Michael. Many of us, including our employees, have damage to homes or are unable to leave our homes because of downed trees and power lines,” Community South Credit Union in Chipley, posted on its Facebook page. “Due to the widespread power outages and the number of trees down, we will be closed until Monday. We will have Disaster Impact Loans and Programs available to assist you in the recovery.”

The NCUA said it is ready to assist credit unions with maintaining or restoring operations, if necessary. The NCUA’s Office of Credit Union Resources and Expansion can provide urgent needs grants up to $7,500 to low-income credit unions that experience sudden costs to restore operations interrupted by the storm.

LaPine also noted that another challenge credit unions are grappling with is that many staff members have been affected by the hurricane and may not be able to report to work because of road closures or because their homes or cars may have been damaged or destroyed.

“We know there have been a lot of staff that have been impacted,” he said. “We’re also really looking to fund right now those immediate necessities of their lives.”

The league’s foundation is accepting contributions to help those in need at this PayPal site.

The National Credit Union Foundation said it has opened CUAid to receive disaster relief funds to assist credit union people affected by Hurricane Michael. Credit union supporters in every state can make donations through cuaid.coop.