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 Unaudited Consolidated Balance Sheets:



(Dollars in thousands)	Gross Derivative Positions		Offsetting Derivative Positions		Net Amounts Presented in Balance Sheet		Cash Collateral Pledged		Net Amount
June 30, 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		$44		$—		$44		$—		$44
Interest rate floors	389		—		389		—		389
Loan-related derivative contracts:
Interest rate swaps with customers	4,620		2,302		2,318		—		2,318
Mirror swaps with counterparties	2,213		2,213		—		—		—
Total		$7,266		$4,515		$2,751		$—		$2,751

Derivative Liabilities:
Interest rate risk management contracts:
Interest rate swaps		$537		$—		$537		$537		$—
Loan-related derivative contracts:
Interest rate swaps with customers	2,302		2,302		—		—		—
Mirror swaps with counterparties	4,659		2,213		2,446		2,446		—
Total		$7,498		$4,515		$2,983		$2,983		$—



(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 June 30, 2017 and December 31, 2016, Washington Trust pledged collateral to derivative counterparties in the form of cash totaling $3.0 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.