v3.25.2
Defined Benefit Pension Plans
 6 Months Ended
Jun. 30, 2025
Retirement Benefits [Abstract]  
Defined Benefit Pension Plans Defined Benefit Pension Plans
Washington Trust maintained a qualified pension plan for the benefit of certain eligible employees who were hired prior to October 1, 2007. Washington Trust also has non-qualified retirement plans to provide supplemental retirement benefits to certain employees, as defined in the plans. These defined benefit pension plans were previously amended to freeze benefit accruals after a 10-year transition period, which ended in December 2023.

In the fourth quarter of 2023, the Corporation’s Board of Directors approved a resolution to terminate the qualified pension plan, and participants were notified of the termination. In the first quarter of 2025, the qualified pension plan liability was settled after plan assets were distributed through a combination of lump sum payments to participants and the purchase of a group annuity contract from a highly-rated insurance company. This resulted in a pre-tax non-cash pension settlement charge of $6.4 million being recognized in noninterest expenses in the first quarter of 2025. The settlement charge included the recognition of pre-tax actuarial losses accumulated in AOCL and the effects of the remeasurement of plan assets and liabilities upon settlement. As a result of the plan’s over-funded status, remaining surplus plan assets of approximately $10.3 million are expected to be transferred directly to the Corporation’s 401(k) Plan (a qualified replacement plan) to fund future non-elective employer contributions.
The following table presents components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss), on a pre-tax basis:
(Dollars in thousands)Qualified Pension PlanNon-Qualified Retirement Plans
Three MonthsSix Months Three MonthsSix Months
Periods ended June 30, 20252024202520242025202420252024
Net Periodic Benefit Cost:
Service cost (1)
$— $125 $— $250 $— $— $— $— 
Interest cost (2)
— 833 15 1,666 163 163 326 325 
Expected return on plan assets (2)
— (1,028)(34)(2,056)— — — — 
Recognized net actuarial loss (2)
— — — — 29 30 58 61 
Net periodic benefit cost before settlement— (70)(19)(140)192 193 384 386 
Pension plan settlement charge— — 6,436 — — — — — 
Net periodic benefit cost$— ($70)$6,417 ($140)$192 $193 $384 $386 
(1)Included in salaries and employee benefits expense in the Unaudited Consolidated Statements of Income. Service cost for 2024 represents administrative expenses related to the termination of the qualified pension plan.
(2)Included in other expenses in the Unaudited Consolidated Statements of Income.