Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivatives by Balance Sheet Location

The following table presents the fair values of derivative instruments in the Corporation’s Unaudited Consolidated Balance Sheets:

(Dollars in thousands)	Asset Derivatives					Liability Derivatives
		Fair Value					Fair Value
	Balance Sheet Location	Mar 31, 2019		Dec 31, 2018		Balance Sheet Location	Mar 31, 2019		Dec 31, 2018
Derivatives Designated as Cash Flow Hedging Instruments:
Interest rate risk management contracts:
Interest rate caps	Other assets		$3		$20	Other liabilities		$—		$—
Interest rate swaps	Other assets	291		903		Other liabilities	—		—
Interest rate floors	Other assets	16		37		Other liabilities	—		—
Derivatives not Designated as Hedging Instruments:
Loan related derivative contracts:
Interest rate swaps with customers	Other assets	11,176		5,340		Other liabilities	2,952		7,719
Mirror swaps with counterparties	Other assets	2,897		7,592		Other liabilities	11,236		5,392
Risk participation agreements	Other assets	—		—		Other liabilities	1		—
Foreign exchange contracts	Other assets	8		—		Other liabilities	—		7
Forward loan commitments:
Interest rate lock commitments	Other assets	1,491		806		Other liabilities	—		—
Forward sale commitments	Other assets	—		—		Other liabilities	818		816
Gross amounts		15,882		14,698			15,007		13,934
Less amounts offset in Consolidated Balance Sheets (1)		1,899		10,732			1,899		10,732
Net amounts presented in Consolidated Balance Sheets		13,983		3,966			13,108		3,202
Less collateral pledged (2)		—		—			9,569		1,460
Net amounts			$13,983		$3,966			$3,539		$1,742

(1) Interest rate risk management contracts and loan related derivative contracts with counterparties are subject to master netting arrangements.

(2) Collateral pledged to derivative counterparties is in the form of cash. Washington Trust may need to post additional collateral in the future in proportion to potential increases in unrealized loss positions.

Derivative Instruments Effect in Statements of Income and Changes in Shareholders' Equity

The following tables present the effect of derivative instruments in the Corporation’s Unaudited Consolidated Statements of Changes in Shareholders’ Equity and Unaudited Consolidated Statements of Income:

(Dollars in thousands)	Gain (Loss) Recognized in Other Comprehensive Income, Net of Tax
Three months ended March 31,	2019			2018
Derivatives Designated as Cash Flow Hedging Instruments:
Interest rate risk management contracts:
Interest rate caps		$—			$38
Interest rate swaps	(466		)	839
Interest rate floors	24			12
Total		($442	)		$889

See Note 15 for additional disclosure pertaining to the amounts reclassified from accumulated other comprehensive income into earnings for derivatives designated as cash flow hedging instruments.

(Dollars in thousands)		Amount of Gain (Loss) Recognized in Income on Derivatives
Three months ended March 31,	Statement of Income Location	2019			2018
Derivatives not Designated as Hedging Instruments:
Loan related derivative contracts:
Interest rate swaps with customers	Loan related derivative income		$10,310			($9,195	)
Mirror swaps with counterparties	Loan related derivative income	(9,604		)	9,324
Risk participation agreements	Loan related derivative income	—			—
Foreign exchange contracts	Loan related derivative income	18			12
Forward loan commitments:
Interest rate lock commitments	Mortgage banking revenues	685			(14		)
Forward sale commitments	Mortgage banking revenues	(429		)	1,318
Total			$980			$1,445