Bankers in Vermont are still grappling with the aftermath of a massive storm that released close to nine inches of rain in parts of the state already damp with precipitation, spurring flash flooding that caused at least one death and some of the worst damage ever documented.
In the towns hit hardest by floods along the Green Mountain range in central Vermont, some of the approximately 20 bank branches affected by flooding remain closed, with customers being redirected to the closest surviving institutions.
At a branch in downtown Montpelier, where overflow from the nearby Winooski River turned Main Street into a waterway for residents to paddle across in canoes, bankers have been figuring out how to remediate safe deposit documents lost to the storm. Elsewhere bankers have set up mobile branch units in driveways — at times carved out from the piles of wreckage that line roadsides. Others still have been mulling over how to dole out cash, in the form of loans and grants, to support the thousands of residents that have lost businesses and homes.
"I've got a branch in Johnson that will not open for a while because of the high water marks there. I've got downtown branches in Montpelier, Barre, that are going to be offline for a period of time," said Christopher D'Elia, president of the Vermont Bankers Association. "I heard of a small drive-up teller window in Woodstock that was completely pushed off its foundation."
The total costs of repairs to banks and other businesses caused by floods from the heavy rainfall July 10 and July 11 remains unclear. But damage from the flooding continues to be felt across the state, with business owners in the capital tallying some
Meanwhile, banks continue to make repairs, fight to reopen branches and work with municipalities and businesses
"Our communities suffered significant damage," said David Silverman, CEO at Morrisville, Vermont-based Union Bank. "The less fortunate always get the raw end of the deal in natural disasters. This is no different. There's a lot of need."
'A sign of stability'
Silverman remembers when the Gihon and Lamoille rivers swelled into the small mountain towns served by Union 12 summers ago during Hurricane Irene. He recalled how, about 14 miles northwest of Union's Morrisville headquarters in Johnson, Vermont, residents lost essential small businesses and services — the liquor store, grocery store and post office — to that storm.
When Silverman told his branch staffers to close shop early three weeks ago in anticipation of bad weather, he hardly expected that an even stronger tempest was on its way.
"The rivers rose exceptionally rapidly," Silverman said. "Nobody around here can remember this ever happening [as] quickly or as high."
Johnson residents have once again
Residents of Johnson, a town with a population of roughly 1,400 and one of the areas hardest hit by the flooding, have been forced from their homes. Dozens of mobile homes in the town were irrecoverably damaged and
Silverman said that the bank hopes its Johnson branch lobby will reopen for next Monday.
"People have an attachment to their local banks. It's a sign of stability," he said. "We think we just need to get open and be part of our community."
Jeffersonville, Vermont, is another area that is suffering from flooding. It is home to less than 1,000 residents, and Union is the only bank there. Its lone branch was built on the shores of the Lamoille River with safeguards to withstand flooding.
But the historic nature of the flooding — the river crested
The Jeffersonville branch's lobby should reopen on Tuesday. Silverman praised his employees' willingness to provide aid to the community in this time of need. He noted that the head teller at the Jeffersonville branch came back early from a vacation to help out.
"We're strong. We'll get through this and when I say that, I don't mean just the Union Bank, but the community banking industry in our market, just like all across the country," Silverman said. "We're resilient. We'll bounce back. We always do."
Union's staff has been struggling with other, perhaps less serious, issues. One has been drying out wet currency. A team of six employees have been patting dry and re-rolling coins and even putting soaked dollar bills into drying machines over the past few days.
Another has been finding a dumpster to dispose of materials damaged by the flooding. "All of a sudden when you have an event, you can't find it," Silverman said. "If you have a flooded branch, make sure it's ready to roll because you're probably going to fill it many more times than you think."
Supporting local communities
Silverman speculated that the damage could cost about a quarter of a million dollars to repair each of Union's two water-damaged branches, much of which will be shouldered by insurance.
"But the property damage is the least of my worries," he said, noting that the costs would be manageable and that he was not concerned about credit losses either. "My worries are my customers, my community."
To aid local residents, financial institutions are offering borrowers repayment moratoriums or interest-free payment periods. North Country Federal Credit Union's board approved $10 million in lending to members affected by floods, with loans going at a rate of 4% for $20,000 over 10-year terms.
Union's some 200 employees have been reaching out to individual borrowers to ask how it can support them. The institution is making loan repayment terms more flexible on a case-by-case basis. So far, it's identified 10 local businesses and a "small universe" of other residents who are in need of financing, Silverman said.
The Vermont Bankers Association has been working with more than 30 municipalities that have had
Banks also have been making donations, often splitting them between specific funding for areas impacted by the flooding and the ABA Foundation's Disaster Relief Program. Most recently, TD Bank
"Rebuilding takes time," D'Elia said. "To make people whole takes time. But we will certainly come out of it and be stronger for it."
