Sonoma Valley tries to save Westamerica branches

Westamerica Bank is being criticized for scaling back its presence in Glen Ellen and Boyes Hot Springs after bank officials shortened branch hours at those two locations, including one created to serve the Latino community.

Consumer advocates and business owners say those two branches provide needed services in the Sonoma Valley. By reducing bank hours, residents are left with scant local options.

"There really are no other banks between Sonoma and Santa Rosa," said Sonoma resident Ralph Hutchinson, a former federal bank regulator. "They really need a branch there."

Westamerica acquired the two branches when it bought the assets of Sonoma Valley Bank, which was seized by regulators in August due to massive losses in its lending portfolio.

Branch hours at the two locations were shortened to noon to 4 p.m. Monday through Thursday, noon to 6 p.m. on Friday, and closed on Saturday. Westamerica's other Sonoma County branches are open from at least 9 a.m. to 4 p.m. Monday through Thursday, and later on Friday.

Westamerica officials did not return calls seeking comment Thursday.

Local leaders are concerned the San Rafael-based bank will close the two locations.

Sonoma County Supervisor Valerie Brown sent a letter last month to Westamerica's chief executive, David Payne, asking him to retain the two locations.

"I wanted him to know how important those branches are to residents," Brown said Thursday. "We need to do everything we possibly can to keep them open."

Brown and others say the former Sonoma Valley Bank branches provide critical financial services for the Latino community and other area residents.

Some local business owners are considering closing their accounts if the branches close, and some say they already have.

"It'll be a hassle," said Jim Donovan, owner of Donovan Pool Plastering in Boyes Hot Springs. "If I have to drive through Sonoma traffic, I might as well join a national bank like Chase."

The bank has publicly committed to keep both branches open until at least February.

"We became concerned about making sure it stayed open," said Ken Brown, a Sonoma City Council member. "Those services are greatly needed. Basically, (Boyes Hot Springs) just had check cashing services prior to that."

Sonoma Valley Bank opened the branch on the outskirts of Sonoma in order to serve the growing Latino community. It staffed the small branch, which is located in a strip mall off Highway 12, with bilingual tellers and bankers. It had become a popular choice with Latino laborers from local ranches and vineyards.

Hutchinson filed a complaint with the Federal Deposit Insurance Corporation, which oversees Westamerica Bank. He believes the bank might have to maintain the branch because it serves a low- to moderate-income population. The Community Reinvestment Act is a federal law intended to prevent bankers from ignoring or mistreating poor and moderate-income communities.