Washington Trust in R.I. uses sale-leaseback to offset hit from nixed pension plan

Washington Trust Bancorp in Westerly, R.I., used a sale-leaseback transaction to offset a hit from terminating its qualified pension plan.

The $6.6 billion-asset company said in a press release that its first-quarter net income rose by 11.4% from a year earlier, to $12.2 million. The company lost $60.8 million in the fourth quarter of 2024 after repositioning its balance sheet.

Washington Trust sold five branches in the first quarter at a $7 million pretax gain. It also incurred $6.4 million in noninterest expenses tied to ending its pension plan.

The company did not disclose the lease terms for the branches.