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Heritage State Bank in Sheldon to close April 15
Nevada Daily Mail
Heritage State Bank's branch office in Sheldon will close permanently April 15.
"We're still going to be involved in the Sheldon community" according to Heritage president Rob Barrett, but "this is the best option for the business."
The Heritage board decided to close the Sheldon branch at their January meeting. According to Barrett, this was a cost of operation versus activity of operation decision.
The board's first consideration was keeping their customer base but they found most have migrated to using the Lamar or Nevada branches already. Barrett said their goal was that the community not suffer, and that Heritage was offering what alternative banking methods they could.
Barrett said that a number of factors were considered when making the decision to close the branch office. Security is a concern as there is currently only one employee there during the day although she is in a secure area inside the bank. Currently, most customers use the drive through or a secure walk up window.
Beyond growing security concerns, the overhead cost of the building, the cost of upgrading internet access to the standard required by the banks software, the cost of a surety bond, and the low number of businesses operating in the community all contributed to the decision.
Cybersecurity is a great concern for Heritage. Even the most minor of security breaches can have a devastating impact on the bank. While the current teller is permitted to work in the office alone, the regulatory agencies that oversee the bank prefer there be at least two people in the office.
Barrett said that online and phone banking are partially responsible for decreased business at the Sheldon branch. Social security checks and most payroll checks are directly deposited into recipient's accounts. At least half of Heritage's customer base actively uses online banking, but Barrett said they are still committed to one-on-one customer service.
Heritage plans to continue their support of the Sheldon community, to the picnic, the car show, and the ball teams Barrett said.
The teller at the Sheldon office, Geanie Fowler, announced after the closure decision was made that she would retire after 47 years with the bank although she was offered positions in Lamar or Nevada. Barrett said that Fowler was "irreplaceable," and closing the branch office in Sheldon was "a business decision."
Installing an ATM had been considered but there would still be a problem with the Internet connection, and daily trips would still have to be made to Sheldon to service the machine. As for cash withdrawals from other ATM's that may be in the area, Barrett said that Heritage offers account options that negate the user fees charged by foreign ATMs.
There has been mixed reaction from the Sheldon community ranging from indifference to displeasure.
Becky Morgan, Sheldon's city clerk, said that the bank's closure would require her to drive further to make deposits and get change for city hall.
Jane Baumgartner, a Sheldon area resident is staying with Heritage although she will have to drive to Nevada or Lamar. She said they have to go to town for groceries anyway, but that it was sad that Sheldon is losing another business.
Comments on Sheldon Community Betterment's Facebook page emphasize the inconvenience it will be to have to drive to Nevada or Lamar for banking services. There was also concern that without a bank, Sheldon would be unable to attract new businesses.
Phyllis Sprenkle said that the Community Betterment Committee was shocked when they were notified of the banks closing and they are actively trying to recruit new businesses and are concerned that the lack of a bank will make Sheldon less appealing to potential prospects.
Sprenkle echoed other's sentiments in expressing how much of an inconvenience it will be for not only local businesses, but to the area elderly many of which do not drive and will have to rely on someone else for yet one more thing in life. She saw the bank as a lifeline for anything new coming to town.
With Heritage's departure, Sheldon's two restaurants, gas station, seed company, tanning salon, Jone's boots, and the school will all have to travel to Lamar or Nevada if their needs can not be fulfilled through online banking. Account deposits and cash withdrawals are a common concern to area residents.