- Elizabeth Larson
State agency reopens consideration of Westamerica Bank's proposed Upper Lake branch closure
UPPER LAKE, Calif. – A state agency involved with reviewing Westamerica Bank's proposed closure of its Upper Lake branch has reopened its consideration of the matter based on concerns about the impact on the community.
The commissioner of the California Department of Business Oversight notified Westamerica Bank of the reopening of the case in a letter dated March 6.
“That's wonderful news,” said Debbie Hablutzel, president of the Upper Lake Community Council, which has been rallying the town and the Northshore in the effort to keep a bank on Upper Lake's Main Street – which has been the location of a bank under one name or another since 1921.
Westamerica – a state-chartered bank – had notified the Department of Business Oversight in a Dec. 31 letter that it intended to closure the branch, located at 9470 Main St.
In that letter, as well as supplemental information provided to the state on Jan. 15, the bank cited low transactional volume “which does not support having a branch in the current location.”
The bank also has suggested that there will be no impact on the community, which could transition business to Westamerica’s Lakeport branch.
Business Oversight Commissioner Jan Lynn Owen responded in a Feb. 13 letter that she was not raising an objection to the closure.
However, since then, Upper Lake residents including Nancy Brier, Hablutzel and the community council, and local officials including County Administrative Officer Matt Perry, Supervisor Jim Steele and Lake County Chamber of Commerce Chief Executive Officer Melissa Fulton have worked hard to focus attention on the planned closure’s potential impacts.
Their efforts have brought to the Department of Business Oversight's attention the potentially far-reaching effects of the closure of the only bank on the Northshore – and, in fact, the only bank on the 85-mile stretch of the Highway 20 corridor between Williams and Ukiah.
While Westamerica Bank provided the state with information about the Upper Lake community and its banking needs, it hadn't included the fact that residents of Lucerne, Clearlake Oaks, Nice, Glenhaven and – in some cases – Lakeport also bank there, according to Tom Dresslar, a special assistant to Owen.
An online petition as well as paper petitions signed by Northshore residents and forwarded by Perry and Fulton to the Department of Business Oversight illustrated the concerns about the broader impact of the branch closure.
As part of the state’s further inquiry into the matter, Dresslar came to Lake County to attend a special March 4 Upper Lake town hall hosted by Supervisor Jim Steele to discuss matters including the bank closure.
The March 6 letter from Owen to Arlene Riedinger, Westamerica Bank vice president/Community Reinvestment Act and compliance manager – which came two days after the town hall – explained, “Subsequent to issuing the letter of no objection, the Department of Business Oversight received additional information impacting whether the discontinuance of the branch office will have a seriously adverse effect on the public convenience or advantage.”
Noting that California Financial Code requires her to consider the new information, Owen's letter stated, “Given the new information and need to evaluate its effect on the decision regarding whether to object to the proposed discontinuance, the Commissioner hereby withdraws the February 13, 2015 letter of no objection.”
In addition, Owen is requesting that Westamerica consent to a 30-day extension of the time permitted under California Financial Code to consider the bank's branch closure notice.
“With this consent, any decision concerning the branch closure would be made on or before April 15, 2015,” Owen’s letter stated.
In response to Lake County News' questions about the letter, Dresslar emphasized that the letter does not mean that the commissioner now objects to the closure, “just that the issues raised by community residents and leaders warrant a re-opening of the matter and a further review before a final decision is made.”
California Financial Code Section 1078 gives the commissioner 60 days from the time the Department of Business Oversight deems the bank's notice is complete to issue a written statement of objection or non-objection.
The rules say the notice is deemed to be filed when the notice is complete, “including any amendments or supplements, containing all the information required by the commissioner.”
In this case, Dresslar said the agency deemed the notice complete on Jan. 15, which gave them until March 15. He said the 30-day extension would take them to April 15.
The statute explains, “the commissioner shall consider whether the closing or discontinuance of the branch office will have a seriously adverse effect on the public convenience or advantage.”
So far, the Department of Business Oversight has not gotten any indication from Westamerica Bank regarding whether or not it will consent to the 30-day time extension, Dresslar said.
“It’s premature to speculate about what may happen if the bank refuses the commissioner’s request for more time,” he added.
Hablutzel, who continues to gather petitions, said she's been told by a lot of people that there is no chance of stopping the branch closure, but she remains hopeful.
“We have a lot of people pulling for us here,” she said. “Let’s just see what happens.”
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