TALLAHASSEE, Fla.—Following a natural disaster, a warm meal can mean just as much or more to people than a short-term loan, says First Commerce CU.
The $1.1-billion CU moved quickly following Hurricane Helene to turn a number of its 14 offices into comfort stations, where people could stop by to get food, water, recharge their electronic devices and simply try to relax.
First Commerce COO Kim Howes spoke with CUToday.info about what her organization witnessed following Helene—a storm that has killed more than 160—and how the credit union is providing support to those in need.
“I could not be prouder of how our team responded,” said Howes, who noted most of the problems Helene left behind in First Commerce CU’s markets were related to power outages, obstructed roads and wind damage. “We're still running comfort stations at several of our locations.”
Small-Town Focus
While helping out in all of the CU’s communities, First Commerce focused on small towns that have few resources and are sometimes cut off from aid.
“In several of our smaller communities we have had cookouts,” she said. “In three of our communities we served more than 1,500 hot dogs and hamburgers in the aftermath of the storm.”
Howes emphasized in those initial days following a disaster, as people are trying to sort out their lives, that is when a helping hand is needed the most.
“Those early days are when it matters most, to get help, especially in those smaller communities where they have limited resources and the resources are slower to come,” she said.
First Commerce’s efforts stretched across its markets—from Atlanta, to Nashville, Ga.; to Valdosta, Ga.; to Tallahassee, Fla.
“So many people told us they had not had a hot meal in days,” she said. It's been a true spirit of cooperation, to support the well-being of our team members, our members and our communities in their time of greatest need.”
The credit union has also been providing financial assistance via skip-a-pays, short-term loans and more.
Howes said First Commerce was fortunate its 13 offices across Florida and south Georgia did not suffer any significant damage, and that the CU was fully operational less than a day after the storm swept through. Howes credited the organization’s IT team and infrastructure for the speedy recovery. Mountain Credit Union shared a similar perspective here.
Regulators Respond
The Federal Deposit Insurance Corporation, the Federal Reserve Board, the National Credit Union Administration, the Office of the Comptroller of the Currency, and state financial regulators, issued a joint statement recognizing the "serious impact" of Hurricane Helene on the account holders and operations of many financial institutions, outlining specific areas of concern and issues financial institutions must be watching:
Lending: "The agencies encourage financial institutions to work constructively with borrowers in communities affected by Hurricane Helene. Prudent efforts to adjust or alter terms on existing loans in affected areas are supported by the agencies and should not be subject to examiner criticism. In accordance with U.S. generally accepted accounting principles, institutions should individually evaluate modifications of existing loans to determine whether they represent troubled debt restructurings or modifications to borrowers experiencing financial difficulty, as applicable. In making this evaluation, institutions should consider the facts and circumstances of each borrower and modification. In supervising institutions affected by Hurricane Helene, the agencies will consider the unusual circumstances these institutions face. The agencies recognize that efforts to work with borrowers in communities under stress can be consistent with safe-and-sound practices as well as in the public interest."
Temporary Facilities: "The agencies understand that many financial institutions face staffing, power, telecommunications, and other challenges in re-opening facilities after Hurricane Helene. In cases in which operational challenges persist, the primary federal and/or state regulator will expedite, as appropriate, any request to operate temporary facilities to provide more convenient availability of services to those affected by Hurricane Helene. In most cases, a telephone notice to the primary federal and/or state regulator will suffice initially to start the approval process, with necessary written notification being submitted shortly thereafter."
Publishing Requirements: "The agencies understand that the damage caused by Hurricane Helene may affect compliance with publishing and other requirements for branch closings, relocations, and temporary facilities under various laws and regulations. Institutions experiencing disaster-related difficulties in complying with any publishing or other requirements should contact their primary federal and/or state regulator."
Regulatory Reporting Requirements: "Institutions affected by Hurricane Helene that expect to encounter difficulty meeting the agencies’ reporting requirements should contact their primary federal and/or state regulator to discuss their situation. The agencies do not expect to assess penalties or take other supervisory action against institutions that take reasonable and prudent steps to comply with the agencies’ regulatory reporting requirements if those institutions are unable to fully satisfy those requirements because of Hurricane Helene."
Community Reinvestment Act (CRA): "Financial institutions may receive CRA consideration for community development loans, investments, or services that revitalize or stabilize federally designated disaster areas in their assessment areas or in the states or regions that include their assessment areas. For additional information, refer to the Interagency Questions and Answers Regarding Community Reinvestment at https://www.ffiec.gov/cra/qnadoc.htm."
Investments: "Institutions are encouraged to monitor municipal securities and loans affected by Hurricane Helene. The agencies realize local government projects may be negatively affected by the disaster and encourage institutions to engage in appropriate monitoring and take prudent efforts to stabilize such investments."