The port of Lancaster was badly affected by a depression in trade with the West Indies at the start of the 19th Century (not least due to the growth of Liverpool), culminating in the collapse of two private banks in 1822 and 1826 – a disaster in such a small town. As a response, the Lancaster Banking Company was founded later in 1826, only the second in the UK to operate under joint stock principles.
It opened in Penny Street in October under the management of John Coulston, but moved here, to the premises of one of the failed banks, in 1827. This building was constructed in 1870, plainly in better times, as, in addition to the grand exterior, it features a similarly splendid banking hall and was furnished by the renowned Gillow & Company.
When Coulston died in 1866 after 40 years of service, the grateful bank paid for a prominent obelisk in Lancaster 'top' Cemetery. Coulston Road, one of the main streets in the (then) suburb of Bowerham further commemorates the saviour of many merchant families and their employees.

The Lancaster Banking Company was amalgamated with the Manchester & Liverpool District Banking Company in 1907, which became the District Bank in 1924 then, in 1970, was absorbed by the National Westminster Bank.

The shield is that of the pre-1974 Borough of Lancaster, depicting a single lion below a fleur-du-lys. I'm not sure how to interpret the three sheep skulls below it, though.