How to resolve AdBlock issue? UPPER LAKE, Calif. – State officials said Wednesday that they have finalized an agreement with Westamerica Bank to postpone the bank's proposed closure of its Upper Lake branch.
The California Department of Business Oversight, which oversees state-chartered banks, announced the agreement with Westamerica Bank that will keep its Upper Lake branch – located at 9470 Main St. – open for up to six additional months.
During that additional six-month “breathing space,” the Department of Business Oversight said it will work with local elected officials, banks and credit unions to bring another financial institution to the town to replace Westamerica.
“At least we have six months” to see if anything else can be done, said Upper Lake businesswoman Debbie Hablutzel, who also serves as president of the Upper Lake Community Council, which has rallied grassroots support for the bank.
Department of Business Oversight Commissioner Jan Lynn Owen and Westamerica Chief Executive Officer David Payne signed the agreement on Wednesday.
Under the terms of the agreement, Westamerica’s Upper Lake branch will remain open through Oct. 15 at the latest.
If another financial institution decides to open in Upper Lake, Westamerica's branch could close earlier than Oct. 15, according to the agreement.
However, regardless of whether or not a replacement financial institution comes to Upper Lake, the agreement allows the branch to close in October.
“This agreement properly balances the bank’s interests with the community’s interests,” said Owen. “Local residents and business owners expressed legitimate, serious concerns about the harm a closure would inflict on Upper Lake and nearby towns. Now, we have a real opportunity to find another financial institution to step in and ensure the community doesn’t lose the banking services it needs for its families and businesses.”
State Financial Code Section 1078 requires banks to notify the Department of Business Oversight commissioner when they want to close a branch, and bars them from implementing a closure if the commissioner objects.
Westamerica first notified the Department of Business Oversight on Dec. 31 that it intended to close the branch.
In a letter to Westamerica on Feb. 13, Owen initially indicated to the bank that she did not object to the closure.
However, she subsequently became aware of substantial opposition to the closure among local residents, business owners and elected officials.
Community members and leaders have argued that the closure would seriously harm not just Upper Lake but neighboring communities as well, as the Westamerica branch is the only bank on the entire Northshore, and the only bank on the 85-mile stretch of Highway 20 between Williams and Ukiah.
Lake County officials– including County Administrative Officer Matt Perry and Supervisor Jim Steele – said the closure would undermine the area’s economic recovery and development.
As a result of that opposition and the potential harm to the community, Owen on March 6 withdrew her nonobjection and placed the matter under further review.
Assemblyman Bill Dodd and state Sen. Mike McGuire also added their voices to the issue, writing to Owen after she reopened the review to urge her to consider the wide-ranging ramifications of the bank closure to the community.
On March 12, Westamerica granted Owen’s request for 30 additional days to consider the closure. That 30-day period expired on Wednesday.
As a result of the agreement, Owen will issue a nonobjection letter to the bank that becomes effective on the date another financial institution establishes services in Upper Lake but no later than Oct. 15.
Hablutzel said community members are looking for ways to keep a bank in town.
“We've been romancing Mendo Lake Credit Union a little bit,” she said.
Mendo Lake Credit Union representatives, including Richard Cooper – the credit union's president and chief executive officer – were at a March 4 Upper Lake town hall, where the bank closure was a main topic of discussion.
At that point, Cooper indicated that the credit union – which has branches in Clearlake and Lakeport – was interested in offering services to the community, but cautioned that such decisions ultimately are up to his board of directors.
“MLCU is interested in providing the highest level of service we can to our members in Lake County,” Cooper told Lake County News on Wednesday. “We are investigating options and looking for feedback from members and potential members from the community on this subject. We continue to monitor the situation with interest.”
Meanwhile, there came word that Westamerica has offered to donate its Upper Lake building to Hospice Services of Lake County.
Hospice Services Executive Director Corrigan Gommenginger confirmed to Lake County News that the local bank managers approached his organization about donating the property.
“Hospice Services of Lake County has a long and terrific relationship with Westamerica Bank, they are tremendous supporters, and we have been fortunate to take care of some of their loved ones, which we are truly honored to do,” Gommenginger said.
“There are a lot of steps, on both sides that need to take place before a large contribution like this can take place, and we are in the process of completing those steps. In order to make an informed decision, Hospice staff is working with the bank’s staff to gather all pertinent information necessary,” he continued.
Gommenginger added, “Hospice realizes the occupants of the building have always been a positive and integral part of community events and if Hospice is successful in accepting the donated building, it will continue in the tradition to support the community. Between now and October, Hospice will be exploring the best usage of the building to support its mission and its programs and serve the local community.”
Also between now and the fall closure, Dodd and McGuire said they plan to hold a community meeting in Upper Lake to receive input from residents and businesses about the closure. That meeting is scheduled for the summer.
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041515 Westamerica Bank and Department of Business Oversight agreement
