Authorized Financial Institutions

Pursuant to Rule 1.15 of the Washington Rules of Professional Conduct, all LFW IOLTA accounts must be maintained at authorized financial institutions. To qualify as authorized, a financial institution must execute a Compliance Statement and agree to promptly report any overdraft to the Office of Disciplinary Counsel of the Washington State Bar Association.

See below for a list of authorized financial institutions.

Compliance Statements
In order to document compliance with rate comparability, a financial institution must submit to LFW a Compliance Statement with supporting documentation. Compliance Statements are subject to evaluation by LFW for compliance with Rule 1.15. Once a Compliance Statement is approved, if a financial institution proposes to reduce its LFW rates, it must submit a new Compliance Statement with supporting documentation, which is then subject to reevaluation by LFW. Reevaluation may take up to 45 days, and financial institutions may not change rates until the reevaluation finds them compliant.

Click here for a Financial Institution Compliance Statement (.pdf)

Benchmark Rate
Financial institutions can choose to pay a benchmark rate, a net rate equal to 75% of the Federal Funds Target Rate, which results in an automatic determination of compliance with the rate comparability requirements of Rule 1.15. When the Federal Funds Target Rate is expressed as a range, the rate to be used for the benchmark is the highest value in the range. The benchmark rate is provided simply as an administrative convenience, and selecting it is entirely optional.

Monthly Remittances
Interest or dividends earned on a LFW IOLTA account should be remitted electronically to LFW by the financial institution on a monthly basis on or before the 15th of each month. A remittance report should also be transmitted electronically with each remittance, showing:

• name of the legal professional on whose account the remittance is made;
• account number;
• remittance period;
• rate or rates of interest or dividends applied;
• account balance or balances on which the interest or dividends are calculated;
• amount of interest or dividends paid;
• amount and type of fees, if any, deducted; and
• amount of net earnings remitted.

Click here for a Financial Institution Remittance Report template (.xlsx)

List of Authorized Financial Institutions

The following institutions are currently eligible to hold IOLTA and other trust funds:

1st Century Bank, a division of MidFirst Bank
1st Security Bank of Washington
Baker Boyer Bank
Bank of America
Bank of Texas
Bank of the Pacific, The
Bank of the West
Bank of Idaho
bankcda
BankUnited, N.A.
Banner Bank
Beneficial State Bank
BECU
Capital Bank
Cashmere Valley Bank
Choice Bank
Citibank
Coastal Community Bank
Columbia State Bank
Commencement Bank
Community Bank
Community First Bank
East West Bank
Esquire Bank N.A.
Farmers State Bank
First American Trust
First Citizens Bank
First Federal
First Financial Northwest Bank
First Interstate Bank
First Republic Bank
First Sound Bank
Flagstar Bank, N.A.
Gesa Credit Union
Harborstone Credit Union
Hapo Community Credit Union
Heritage Bank
HomeStreet Bank
Idaho Trust Bank
Islanders Bank
JPMorgan Chase N.A.
Key Bank
Kitsap Bank
Liberty Bank
Mountain Pacific Bank
Mountain West Bank
MUFG Union Bank, N.A.
North Cascades Bank, a division of Glacier Bank
Northwest Bank
Numerica Credit Union
Olympia Credit Union
Olympia Federal Savings
OnPoint Community Credit Union
Oregon Pacific Bank
P1FCU
Pacific Premier Bank
Pacific West Bank
Peoples Bank
Pinnacle Bank
PNC Financial Services
RiverBank
Riverview Community Bank
Salal Credit Union
SaviBank
Seattle Bank
Security State Bank
Sound Banking Company
Sound Community Bank
Sound Credit Union
Spokane Teachers Credit Union (STCU)
State Bank Northwest
Summit Bank
The Commerce Bank of Washington
The Huntington National Bank
The Northern Trust Company
Timberland Bank
Twin City Bank
Twin River Bank
TwinStar Credit Union
Umpqua Bank
UniBank
United Business Bank
US Bank
US Metro Bank
Verity Credit Union
Washington Business Bank
Washington Federal
Washington Trust Bank
Wells Fargo Bank
Wheatland Bank