Upper Lake residents fight closure of only bank

If not for signs directing tourists to its three-block historic downtown, Upper Lake would be easy to miss while driving along Highway 20 in northwestern Lake County. But state regulators more than two hours away in Sacramento are paying attention, after plucky residents and business owners have raised a ruckus over the planned closure of the town’s only bank.

An effort to halt the planned closure of Westamerica Bank’s Upper Lake branch on April 24 has earned the backing of county officials worried about the economic impacts of the closure, as well as inspired a signature drive that gathered about 200 names.

“It’s community. People pull together up here,” said Debbie Hablutzel, owner of County Carpets and one of the leaders of the charge to keep the bank open. The bank’s name and location have changed over the years, but Upper Lake has had a financial institution for 93 years.

The state Department of Business Oversight is listening. The bank regulating agency is taking another look at its decision to not object to the closure of the Upper Lake bank, spokesman Tom Dresslar said. The department has not yet decided whether to reopen the case, he said.

“We’re still gathering facts,” said Dresslar, who attended a community meeting about the closure this week. An estimated 70 people attended the town hall session.

If the department reverses its earlier decision, the bank would be required to stay put, Dresslar said.

Westamerica officials did not return phone calls seeking comment. But in a letter to state regulators, they said the bank has “low transactional volume which does not support having a branch in the current location.” The letter also said Westamerica had determined that the community “will continue to have reasonable access to financial services.”

Upper Lake residents disagreed and began working against the bank closure soon after it was announced in late January.

They were quickly joined by county officials.

“I went to work right away” on the issue, said Lake County Supervisor Jim Steele, whose district includes Upper Lake. The town and its environs has about 1,000 residents, according to census data, but the bank closure could affect many more people.

Westamerica is the only bank on Clear Lake’s north shore, which has a population of about 7,000 residents scattered between Blue Lakes and Clearlake Oaks, Steele said.

With Westamerica’s closure, the nearest bank for Upper Lake residents would be about 10 miles away in Lakeport, where there are multiple banks. It would be farther for residents of Nice and Lucerne, east of Upper Lake on Highway 20. For residents of Clearlake Oaks, the nearest banks are in the city of Clearlake, about 10 minutes away.

“We’re not fighting to keep the bank here for just Upper Lake, it’s the whole north shore,” Hablutzel said.

The bank closure could create additional hardships for the area’s population of seniors and disabled people - which is above state averages - who rely on others to take them to the bank, closure opponents say.

It also would be inconvenient for businesses that utilize the bank to make daily deposits or obtain change for customers.

“I use that bank every day,” said Hablutzel, who has multiple accounts with Westamerica.

Bernard Butcher, who has invested heavily in Upper Lake by restoring and re-creating several historic structures that have become the town’s main attractions, also opposes the closure. His projects include the Tallman Hotel, a onetime stagecoach stop, and the Blue Wing Saloon and Café, which features live music.

“It would be a shame if they left,” he said. The closure would force managers of his three businesses - which also include a gift store in the town’s original bank building, built in 1921 - to take deposits to Lakeport. If that happens, he said he might decide to go with one of the other banks that are available in Lakeport.

Downtown Upper Lake doesn’t even have an ATM where visitors or residents can obtain cash. The nearest one is located inside a casino east of downtown.

Steele said he’s most worried about the impacts of the bank’s closure on businesses.

“That would be an economic depressor. Having a bank is essential if you’re trying to grow an economy,” he said.

Currently there are about 19 privately owned businesses open on Main Street and about 10 buildings that are vacant or for sale.

County officials have obtained funding for and spent more than $1 million in recent years making improvements to Upper Lake, including adding an archway over the entrance of the historic downtown and burying phone and electrical wires, in an effort to boost the economy, Steele noted.

The town is just beginning to recover from the recession and would be dealt a setback if the bank closes, leaving yet another vacant building in its place, Hablutzel said.

“Just when things are getting better, now we’re going to lose our bank,” she said.

But the interest expressed by bank regulators has given her hope the bank will remain.

Steele said if it doesn’t, there may be interest by a local credit union to offer services in the area.

“I am optimistic,” he said.

You can reach Staff Writer Glenda Anderson at 462-6473 or glenda.anderson@pressdemocrat.com. On Twitter @MendoReporter