Banks, credit unions respond to wave of windstorms and tornadoes

Bloomberg Mercury

In the wake of disastrous weather events across the U.S. that have so far killed more than 20 people and left hundreds injured since Friday, bank and credit union professionals are stepping in to help support recovery efforts.

Intense supercell thunderstorms, high-speed winds and tornadoes clocked at 1 and higher on the Enhanced Fujita (EF) Scale devastated areas of Texas, Oklahoma, Arkansas, Kentucky and other parts of the country over Memorial Day weekend, leaving many residents without power and access to basic utilities. Parts of the phenomena are classified as a derecho, which is defined as a widespread, long-lived windstorm that is associated with a band of rapidly moving showers or thunderstorms.

In Oklahoma, data from the National Weather Service recorded numerous tornadoes across Rogers, Mayes, Delaware and Benton counties, bringing winds of 86 to 165 miles per hour.

Aaron Beldner, president and chief executive of Truity Credit Union in Bartlesville, Oklahoma, has been working to help impacted members and staff rebuild their lives since a prior tornado touched down in the state earlier this month.

His first task was to assess damages in Bartlesville and the nearby town of Barnsdall, which has a population of a little over 1,000 residents and was hit especially hard. He and his staff provided storage containers and commissioned food trucks, charging stations, portable restrooms and hand-washing stations, then went out into the community and volunteered their time to remove debris.

The $1.1 billion-asset Truity also deployed an automated emergency loan program for both members and nonmembers needing financial support. The program is tailored using zip codes and other geographic details to help guide the money solely to impacted communities.

Members can apply through the online banking portal and receive up to $5,000 in minutes with no interest or fees attached, while nonmembers are subject to a standard underwriting process. Within a week and a half, the credit union underwrote more than a million dollars in loans.

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Truity Credit Union employees working with local Lowes staffers to offload stacks of storage bins for impacted members. (Truity Credit Union)

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Aaron Beldner (left), president and chief executive of Truity Credit Union (Truity Credit Union)

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Truity deployed charging stations and food trailers such as these in affected communities. (Truity Credit Union)

"It was a much needed resource in our community," Beldner said. The current total stands at 278 emergency loans at $1.2 million.

Beldner said that the program is still primarily focused on Barnsdall, but those outside the region that are affected can still request support on a case-by-case basis.

Texas was also hard hit.

Governor Greg Abbott said in a press release on Sunday that estimates count seven deaths so far in addition to "close to 100 people injured, more than 200 homes or structures destroyed and more than 220 buildings damaged."

"The State of Texas will remain engaged and involved with impacted communities to ensure they can rebuild and recover," Abbott said. State officials have been working with the Federal Emergency Management Agency to add impacted localities to the Presidential Disaster Declaration, and have qualified 19 counties for aid so far.

Advocates with the Texas Bankers Association are making an initial $2,500 donation to the United Way of Central Texas through the group's philanthropic arm to help those impacted by the storms, while also connecting with local bank executives and other municipality leaders to gauge more specific needs.

"From the panhandle wildfires, Houston flooding, Dallas storms and to the Temple tornadoes just a few days ago, we are in constant contact with our bank members in these areas in the lead-up and immediately after any event to understand the impact and how we can help support or facilitate any foundation related effort," said Chris Furlow, president and CEO of the Texas Bankers Association.

Members of the Cornerstone League, the credit union trade group for Texas, Oklahoma, Arkansas, Kansas and Missouri, have rolled out a two-stage assistance program through the Cornerstone Credit Union Foundation to help credit union employees in need of immediate and more long-term aid.

Phase one of the aid program provides employees with a maximum of $1,000 pending approval by the credit union's CEO for up to 60 days after a natural disaster occurs. The second wave of assistance provides up to $5,000 for 90 days after a disaster and is for those who received funds in phase one.

As of Wednesday, the National Oceanic and Atmospheric Administration has identified much of the Central region of the U.S. as still at marginal to slight risk of severe thunderstorms.