Balance Sheet Offsetting

For interest rate risk management contracts and loan-related derivative contracts, the Corporation records derivative assets and derivative liabilities on a net basis. The interest rate risk management contracts and loan-related derivative contracts with counterparties are subject to master netting agreements. The following tables present the Corporation’s derivative asset and derivative liability positions and the effect of netting arrangements on the Consolidated Balance Sheets:



(Dollars in thousands)	Gross Derivative Positions		Offsetting Derivative Positions		Net Amounts Presented in Balance Sheet		Cash Collateral Pledged		Net Amount
March 31, 2017	Gross Derivative Positions		Offsetting Derivative Positions		Net Amounts Presented in Balance Sheet		Cash Collateral Pledged		Net Amount
Derivative Assets:
Interest rate risk management contracts:
Interest rate caps		$81		$—		$81		$—		$81
Loan-related derivative contracts:
Interest rate swaps with customers	3,952		3,457		495		—		495
Mirror swaps with counterparties	3,336		3,336		—		—		—
Total		$7,369		$6,793		$576		$—		$576

Derivative Liabilities:
Interest rate risk management contracts:
Interest rate swaps		$174		$—		$174		$212		($38	)
Loan-related derivative contracts:
Interest rate swaps with customers	3,457		3,457		—		—		—
Mirror swaps with counterparties	4,007		3,336		671		1,604		(933		)
Total		$7,638		$6,793		$845		$1,816		($971	)



(Dollars in thousands)	Gross Derivative Positions		Offsetting Derivative Positions		Net Amounts Presented in Balance Sheet		Cash Collateral Pledged		Net Amount
December 31, 2016	Gross Derivative Positions		Offsetting Derivative Positions		Net Amounts Presented in Balance Sheet		Cash Collateral Pledged		Net Amount
Derivative Assets:
Interest rate risk management contracts:
Interest rate caps		$134		$—		$134		$—		$134
Loan-related derivative contracts:
Interest rate swaps with customers	4,920		2,884		2,036		—		2,036
Mirror swaps with counterparties	2,758		2,758		—		—		—
Total		$7,812		$5,642		$2,170		$—		$2,170

Derivative Liabilities:
Interest rate risk management contracts:
Interest rate swaps		$378		$—		$378		$133		$245
Loan-related derivative contracts:
Interest rate swaps with customers	2,884		2,884		—		—		—
Mirror swaps with counterparties	4,986		2,758		2,228		1,295		933
Total		$8,248		$5,642		$2,606		$1,428		$1,178

As of March 31, 2017 and December 31, 2016, Washington Trust pledged collateral to derivative counterparties in the form of cash totaling $1.8 million and $1.4 million, respectively. Washington Trust may need to post additional collateral in the future in proportion to potential increases in unrealized loss positions.