HOUSTON--(BUSINESS WIRE)--Allegiance Bank and the Federal Home Loan Bank of Dallas (FHLB Dallas) today announced $382,000 in disaster recovery grants to assist 32 Houston homeowners, seven businesses and three community groups with recovery efforts in response to damage caused by Hurricane Harvey in August 2017.
When Hurricane Harvey swept through the Texas Gulf Coast in August 2017, it left a trail of destruction, causing many Houston-area residents and homeowners to pick up the pieces. With 273,276 homes damaged and more than 15,500 homes destroyed, businesses struggled to get back on their feet, facing a loss of infrastructure, customers and funds.
“Hurricane Harvey may have wreaked havoc on Houston homes and businesses, but one thing that was strengthened is the resolve of Houstonians to rebuild and recover,” said Houston Mayor Sylvester Turner. “I want to thank everyone who had a hand in the recovery efforts of our community, now including Allegiance Bank and FHLB Dallas.”
Joining bank representatives, homeowners and business owners at today’s check presentation were Catherine Hardy, field representative from the office of Texas State Representative Sarah Davis, R-134 and City of Houston Deputy Director Marsha Murray.
In response to the devastation caused by Hurricane Harvey, FHLB Dallas made available through its members more than $6.7 million in the form of three grant programs.
FHLB Dallas made available $4.25 million to help the employees of member institutions, like Allegiance Bank, with their recovery efforts until November 15. After that the funds were opened up to help qualified homeowners in the general public. Allegiance Bank utilized $250,000 to help 32 homeowners, including 21 of its employees.
FHLB Dallas made available another $2.25 million to assist recovery efforts of small businesses, of which $102,000 was awarded through Allegiance Bank to assist seven local businesses. An additional $225,000 was made available to support community-based organizations (CBOs) involved in the recovery efforts, of which, $30,000 was awarded through Allegiance Bank to help three community organizations.
“As a regulator, whenever we saw disaster hit, we always encouraged the local financial institutions to assist in recovery efforts in the community,” said Allegiance Bank Vice President and Fair Banking Officer Marcus Vasquez, whose background includes community development and bank regulation. “Now that I’m on the private side, I’m directly involved and Houston is home. I feel the direct responsibility to assist with the recovery needs of the families, businesses and nonprofit organizations throughout the communities we serve. The funding FHLB Dallas provided is exactly the type of support a regulator would want to see provided when a disaster such as Harvey hits and would encourage banks to leverage these funds to be reinvested back into the community.”
Mayco Automotive, a Houston businesses that received $15,000 in grant funds, shut down for four days due to significant building damage after the hurricane. The grant helped fund repairs to the building, repair electrical damage to the company’s computer system and fund a backup emergency phone system.
“When a catastrophe like this happens, the recovery process can be annihilating for many small businesses and communities,” said Steve Dragos, owner of Mayco Automotive. “Allegiance Bank and FHLB Dallas came to our aid in a time when we needed it the most.”
Arena Design owner and local artist Rusty Arena lost $1 million of inventory in the storm. The residential textile and wallpaper manufacturer lost 30 years’ worth of original artwork, formulas, pigments and equipment. While many of his losses are irreplaceable, the $15,000 grant he received from Allegiance Bank and FHLB Dallas was used to replace some of his lost inventory.
“The grant process was the most painless financial process I’ve ever experienced,” said Mr. Arena. “We were funded in three or four days and we just couldn’t believe it. It was a nice thing to have happen. I don’t know what we would have done without the financial help from Allegiance and the Federal Home Loan Bank of Dallas.”
Mary Beth Baker, owner of home décor gift store, Gnome Sweet Gnome, also used her $15,000 grant to replace lost inventory. The store, which employs six people, was inundated by 5 feet of water.
“We were down to the studs and had to pay for everything out of our pockets,” she said. “The only funding we received was from Allegiance Bank, which we used to replace the flooring.”
FHLB Dallas also made available $1 billion in low-cost Special Disaster Relief Program advances for members to support their customers in communities affected by the floods.
“I get the sense that FHLB Dallas understood what everyone was going through,” said Mr. Vasquez. “The process was not burdensome on the applicants and the funding was provided quickly. This type of grant program plays a vital role in keeping the economy going in our communities.”
FHLB Dallas First Vice President and Director of Community Investment Greg Hettrick said providing special disaster recovery funding honors the Home Loan Banks’ history.
“The Federal Home Loan Bank system was created in the wake of an economic crisis in 1932,” said Mr. Hettrick. “Providing financial assistance is woven into the fabric of our existence. Helping communities is what we’ve always done and what we hope to continue to do for many years to come.”
Allegiance Bancshares Company Profile
Allegiance Bancshares, Inc. is a Houston, Texas-based bank holding company. Through its wholly owned subsidiary, Allegiance Bank (the Bank), provides a diversified range of commercial banking services primarily to Houston metropolitan area-based small to medium-sized businesses and individual customers. In addition to banking during normal business hours, the Company offers extended drive-in hours, automated teller machines (ATMs) and banking by telephone, mail and Internet.
About the Federal Home Loan Bank of Dallas
The Federal Home Loan Bank of Dallas is one of 11 district banks in the FHLBank system created by Congress in 1932. FHLB Dallas, with total assets of $68.5 billion as of December 31, 2017, is a member-owned cooperative that supports housing and community development by providing competitively priced advances and other credit products to approximately 835 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico and Texas. Visit fhlb.com for more information.