HOUSTON -- Credit unions across areas of south Texas ravaged byHurricane Ike were still picking up the pieces last week, hopingthe backup generator would continue working and helping affectedemployees and members of hundreds of credit unions to recover.

The eventual property losses were expected to be staggering andas CUNA Mutual Group put it, "the damages will be far greater andmore widespread than almost all other Category 2 hurricanes we'veseen in recent years."

"Ike's large size has resulted in losses from south of Galvestonthrough Louisiana, and although many dealt with minor roof, signand water damage, we are seeing some substantial losses rangingfrom major roof damage to large flood claims," said CUNAMutual.

At mid-week and with power still out in large cities likeGalveston, Beaumont and parts of Houston, there remained 47 TexasCUs considered "nonoperational;" regulators still had not been ableto contact a handful of area CUs as of press time.

"Remember, that no one is allowed back yet to Galveston andplaces like Orange and certain areas of Houston to even assessdamage," Harold Feeney, Texas credit union commissioner, said.

Though contact was made, no one has been able to assess damageat the $9 million Galveston Government Employees CU, the lone CU onthe island, because of city orders to stay away, according toFeeney.

Like scores of other CUs in the devastated zone, GalvestonGovernment found a makeshift site in a county building, somedistance from the island as still other CUs in destroyed coastaltowns utilized shared branch centers to serve members.

Of the 47 nonoperational CUs, the NCUA identified 32 federallyinsured CUs in that group along with two that still have not beencontacted. These CUs were not identified, but the NCUA said in astatement that "looking at member numbers, this means that 89% ofaffected members have access to at least some services."

The NCUA concluded, "this is a major accomplishment given thatTexas media is reporting that over 2.1 million residentialcustomers are still without power."

Some CUs that rode out the storm amid flooded lobbies,ripped-out roofs and missing employees were ready to share theirstories (see related article, page 4).

"Thank God my board had the wisdom after Hurricane Rita in 2005to buy a new $140,000 generator, and I know that's money that isn'tearning us anything, but let me tell you what a smart decision thatwas," declared Kim Heinze, president/CEO of the six-branch, $242million Mobiloil FCU in Beaumont. Power has been out for most ofthe city since the storm hit Sept. 13.

Apart from restoring member services, the CU also spent the weekassisting employees who suffered heavy losses to their homes fromflooding and wind damage.

"With four feet of water and little fishes at my home in BridgeCity, my problems were minor compared to some of my staff," saidHeinze. She noted also the goodwill the CU managed to generate frombusinesses that relied on the CU for services while banks wereclosed.

"Let me tell you that even though we don't have a businessrelationship, the manager of a CVS pharmacy, which stayed open,could not say enough in gratitude about us since we got him dollarshe needed urgently when his bank was closed," said Heinze.

She explained how even though staff couldn't access the vaultbecause of the power outage, they raided a cash dispensing machineto get stacks of dollar bills for the pharmacy.

And in Alvin, Texas, Gary Davis, president/CEO of the $70million Chocolate Bayou Community CU, called his CU's recovery"amazing" after half the roof was torn off Sept. 13.

"We did not lose our processor, and it's a miracle that we wereable to make a hotline recovery connection and are back up andopen, and so we can offer basic services for now," said Davis. Thetemporary roof was installed within days. "We're simply blessed. Wehave nothing to complain about since the Lord took care of us."

Chocolate Bayou was able to operate with sharply reduced staff,based on employees who stayed behind. "I think we started withabout a third of our 120 employees, and today we're up to maybehalf," Heinze said last week.

While Texas coast towns took the brunt of the storm,70-mile-per-hour winds and rain did spread as far north asColumbus, Ohio, where the Ohio Credit Union League reported a dozenCUs shut down after losing power Sept. 14-15.

CUNA Mutual in Madison said access restriction orders in theimpact zone continue to "hamper our claims inspection teams,although we have been able to get to many of the most severelyimpacted credit unions," Media Relations Manager Phil Tschudysaid.

Considering that many CUs remain without power and unable toinspect their facilities, CUNA Mutual said it does expect to see arising number of claims this week.

"Our catastrophe adjusters will be visiting all locationsreporting major damage," said Tschudy.

Many of those even hardest-hit CUs moved quickly to waivepayments and provide loan relief to members with Texas DowEmployees CU in Lake Jackson posting ads and radio messagesheadlined, "We'll Get Through It."

One ad read, "After Hurricane Carl, TDECU helped your mom anddad and even your grandparents get back on their feet" and lossesthen "were huge but we all got through it together."

"We're going to get through this one, too," promised TDECU."We're TDECU your credit union. Our doors are open to help you getwhat you need especially now."

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