Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 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 Consolidated Balance Sheets:

(Dollars in thousands)	Asset Derivatives					Liability Derivatives
		Fair Value					Fair Value
	Balance Sheet Location	Dec 31, 2019		Dec 31, 2018		Balance Sheet Location	Dec 31, 2019		Dec 31, 2018
Derivatives Designated as Cash Flow Hedging Instruments:
Interest rate risk management contracts:
Interest rate caps	Other assets		$—		$20	Other liabilities		$—		$—
Interest rate swaps	Other assets	—		903		Other liabilities	730		—
Interest rate floors	Other assets	3		37		Other liabilities	—		—
Derivatives not Designated as Hedging Instruments:
Loan related derivative contracts:
Interest rate swaps with customers	Other assets	27,736		5,340		Other liabilities	358		7,719
Mirror swaps with counterparties	Other assets	351		7,592		Other liabilities	27,819		5,392
Risk participation agreements	Other assets	1		—		Other liabilities	1		—
Foreign exchange contracts	Other assets	—		—		Other liabilities	—		7
Mortgage loan commitments:
Interest rate lock commitments	Other assets	1,097		806		Other liabilities	—		—
Forward sale commitments	Other assets	30		—		Other liabilities	827		816
Gross amounts		29,218		14,698			29,735		13,934
Less amounts offset in Consolidated Balance Sheets (1)		354		10,732			354		10,732
Net amounts presented in Consolidated Balance Sheets		28,864		3,966			29,381		3,202
Less collateral pledged (2)		—		—			27,105		1,460
Net amounts			$28,864		$3,966			$2,276		$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 Consolidated Statements of Changes in Shareholders’ Equity and Consolidated Statements of Income:

(Dollars in thousands)	Gain (Loss) Recognized in Other Comprehensive Income, Net of Tax
Years ended December 31,	2019			2018		2017
Derivatives Designated as Cash Flow Hedging Instruments:
Interest rate risk management contracts:
Interest rate caps		$52			$30		($64	)
Interest rate swaps	(1,232		)	515		358
Interest rate floors	196			74		(346		)
Total		($984	)		$619		($52	)

(Dollars in thousands)		Amount of Gain (Loss) Recognized in Income on Derivatives
Years ended December 31,	Statement of Income Location	2019			2018			2017
Derivatives not Designated as Hedging Instruments:
Loan related derivative contracts:
Interest rate swaps with customers	Loan related derivative income		$29,910			($290	)		$2,243
Mirror swaps with counterparties	Loan related derivative income	(26,043		)	2,709			1,198
Risk participation agreements	Loan related derivative income	97			(27		)	(233		)
Foreign exchange contracts	Loan related derivative income	28			69			6
Mortgage loan commitments:
Interest rate lock commitments	Mortgage banking revenues	290			(139		)	(100		)
Forward sale commitments	Mortgage banking revenues	(1,818		)	997			(328		)
Total			$2,464			$3,319			$2,786