As the title says, my ADR is delisting. It's going OTC. In such a situation would my shares, which I have with my bank's discount brokerage, normally automatically convert to the OTC shares and remain in my account? Is it possible my bank (USAA, if it matters) will not be able to handle OTC shares for whatever reason, and force me to sell?
Most discount brokers handle OTC stocks transparently, so it shouldn't matter. Note, however, that there's a difference between "OTC" and "Grey market". The difference between the OTC market and the NYSE or NASDAQ is just the listing requirements of the major exchanges and the degree of SEC regulation. The OTC markets still have market-makers who provide liquidity. That is not the case for "Grey market". You need to check whether "delisting", in the case of your stock, just means moving to OTC (in which case, nothing to worry about) or means going to grey market.