As we navigate 2025, I’m proud to share the impactful strides Community Bankers of Washington has made in advocacy this year. The need for an independent community bank voice has never been clearer — or more essential.

The final Washington State budget is, frankly, a tough pill to swallow. The legislature chose to close the gap with billions in new taxes instead of spending reform. In response, CBW stood firm. We opposed numerous harmful proposals and championed a select few. Major kudos to our intrepid lobbyist, Brad Tower, who swatted bill after bill that would negatively impact community banks.

Despite the headwinds, we secured three pivotal wins:

• Tax Justice in Bank Mergers
  State-chartered credit unions that acquire community banks will now be subject to B&O taxes — a landmark victory and a national first. This decreases the competitive advantage of those credit unions and slows the unchecked acquisition spree that’s been draining local tax revenue.
• Preserving Mortgage Interest Tax Deduction and Affordable Housing
  Through a robust grassroots effort, we urged Gov. Ferguson to veto a proposal that would remove the first mortgage interest tax deduction for community banks. His veto preserves community banks’ role in financing affordable housing across Washington.
• Grasstops Advocacy in Action
  Community bankers across the state showed up — calling, emailing and meeting with legislators. You built trust, delivered strong messages and clearly demonstrated the vital role community banks play in our districts. Legislators were receptive, and your work made all the difference.

This was advocacy at its best — a master class in grasstops engagement. Building relationships with lawmakers outside of the legislative session proved crucial. Thank you to everyone who reached out to their legislators. Special appreciation to Josh Deck, CBW chairman and president & CEO of Olympia Federal, for testifying multiple times, and to Carol Kowalski, VP of Business, Community & Government Relations of Kitsap Bank, for her extraordinary advocacy efforts.

Warm regards,
Kathryn Swenson
President & CEO, Community Bankers of Washington