PROVIDENCE, R.I. — A community bank in Rhode Island agreed to pay $9 million to resolve allegations that it engaged in lending discrimination by redlining majority-Black and Hispanic neighborhoods, a U.S. attorney announced Wednesday.
Washington Trust CEO Edward O. “Ned” Handy III said the bank vehemently denies the allegations. The bank entered into the agreement to avoid the expense and distraction of potential litigation, and to allow the bank to focus fully on serving the needs of its customers and communities. Despite expanding across the Rhode Island, the bank never opened a branch in a majority-Black and Hispanic neighborhood, investigators said. It relied on mortgage loan officers working out of only majority-white areas as the primary source for generating loan applications.
“Everyone who pursues the American dream has the right to expect to be treated equally and with dignity, regardless of their race, their background, or zip code,” said Zachary Cunha, U.S. Attorney for the District of Rhode Island.