U.S. Bank plans to close Shelby branch
For the second time in 28 months, the city of Shelby is on the verge of losing the presence of a Top 10 American bank, the last bank in the downtown area.
U.S. Bank announced it is closing its branch at 85 W. Main St. in downtown Shelby, according to federal Office of the Comptroller of the Currency records .
Records show that a July 23 closing date is planned, less than two and a half years after PNC Bank left Shelby.
Through a public records request, the Daily Globe obtained a letter that U.S. Bank sent to the city of Shelby.
“Clients’ banking preferences and behaviors are changing, influencing how and where we operate,” stated the April 3 letter from Nicole M Loar, U.S. Bank district manager in Lucas, Ohio, about 17 miles southeast of Shelby. “As a result, we are consolidating some of our physical locations.”
“We understand that closing a branch is an inconvenience, but we are dedicated to providing you with best-in-class service,” Loar also wrote.
Loar thanked the city of Shelby for “entrusting U.S. Bank with your financial needs.”
“We’re grateful to be your committed partner,” she added.
The U.S. Bank website shows that Lucas, about 17 miles southeast of Shelby is the nearest branch. “Partner” ATMS are listed in places such as Mansfield, Lexington and Crestline. A list of U.S. Bank locations in Ohio is available at https://www. usbank.com/locations/ohio
Shelby City Council was notified Monday night about the planned closure.
The Shelby municipal government has $10,974,213.87 with U.S. Bank. The city’s treasury totals $14,547,475.84.
“U.S. Bank has a considerable amount,” said Shelby City Councilman Nathan Martin, chairman of the council’s Finance Committee. “We did get a letter that the U.S. Bank branch in Shelby will be closing.”
“We have, as a city, (and)
local businesses as well... have reached out to them and said, ‘We like banking with you. However, if you decide to move elsewhere, we’re going to have to reinvest our funds somewhere else with the city,’” Martin said.
The Daily Globe made a public records request for a copy of the city of Shelby’s correspondence with U.S. Bank on Tuesday.
Councilman Martin noted that time remains before the planned closure.
“It’s not till July,” he said.
He said that Minneapolisbased
U.S. Bank has “some products and stuff that’s beneficial to us that other banks just don’t have.”
The more than $10.9 million kept by Shelby in U.S. Bank far outpaces three other banks where other city funds are held: Park National Bank ($2,545,321.73), Mechanics Bank ($1 million) and Civista ($27,940.24), records show.
City of Shelby Finance Director Brian Crum offered additional information.
“We do have meetings with U.S. Bank and all the other banks in town this week,” Crum told council. “We’ll hopefully know
more by the next council meeting.”
Local bank staff declined to be included in the story of the branch’s closure.
Reached for further questions, U.S. Bank issued a written statement.
“Client’s banking preferences and behaviors are changing, including a rapid migration toward digital and mobile banking platforms, and a desire for greater simplicity,” Chad Seely, communications manager-east Region, wrote in part.
Clients received notification earlier this month that the Shelby branch would close, he said.
“We understand that the
closure of any branch is a disruption for our clients and our employees, and we are working to make the transition as smooth as possible for all involved,” Seely said.
The closure of this branch will not affect client accounts, he said.
U.S. Bank did not disclose the number of Shelby branch employees.
“Employees who wish to stay with the bank are encouraged to pursue other opportunities that may be available,” Seely said. “This could include roles in other locations, as well as remote positions.”
Last spring, in reaction to PNC Bank closing its local branch in Shelby, the city’s municipal government pulled $1 million in funds from the institution and deposited the funds in other banks with a Shelby presence.
Shelby’s actions included moving $500,000 into a savings account at U.S. Bank, Crum told City Council on May 1, 2023.
The PNC, with headquarters in Pittsburgh, formerly was at 29 N. Gamble St. in Shelby. Announced on Dec. 10, 2021, the closure occurred on March 18, 2022, according to public records on file with the U.S. Office of the Comptroller of the Currency.
In speaking Sept. 18, 2023, then-councilman Garland Gates offered a further explanation on the transition of Shelby funds out of PNC and a softer tone from the city.
“It’s not because we don’t like PNC, but state law gives a preference to financial institutions within the boundaries of a governmental unit,” Gates said at the time.
U.S. Bank is the fifth largest commercial bank in the United States as ranked by consolidated assets, according to 2023 data by the Federal Reserve. PNC ranks sixth. The top four are Jpmorgan Chase Bank, Bank of America, Wells Fargo and Citibank.