Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2020

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)	Derivative Assets			Derivative Liabilities
		Fair Value			Fair Value
	Balance Sheet Location	Dec 31, 2020	Dec 31, 2019	Balance Sheet Location	Dec 31, 2020	Dec 31, 2019
Derivatives Designated as Cash Flow Hedging Instruments:
Interest rate risk management contracts:
Interest rate caps	Other assets	$—	$—	Other liabilities	$—	$—
Interest rate swaps	Other assets	—	—	Other liabilities	1,958	730
Interest rate floors	Other assets	—	3	Other liabilities	—	—
Derivatives not Designated as Hedging Instruments:
Loan related derivative contracts:
Interest rate swaps with customers	Other assets	75,804	27,736	Other liabilities	68	358
Mirror swaps with counterparties	Other assets	67	351	Other liabilities	76,248	27,819
Risk participation agreements	Other assets	22	1	Other liabilities	2	1
Mortgage loan commitments:
Interest rate lock commitments	Other assets	7,202	1,097	Other liabilities	—	—
Forward sale commitments	Other assets	—	30	Other liabilities	2,914	827
Gross amounts		83,095	29,218		81,190	29,735
Less: amounts offset (1)		67	354		67	354
Derivative balances, net of offset		83,028	28,864		81,123	29,381
Less: collateral pledged (2)		—	—		74,698	27,105
Net amounts		$83,028	$28,864		$6,425	$2,276

(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,	2020	2019	2018
Derivatives Designated as Cash Flow Hedging Instruments:
Interest rate risk management contracts:
Interest rate caps	$89	$52	$30
Interest rate swaps	(893)	(1,232)	515
Interest rate floors	150	196	74
Total	($654)	($984)	$619

For derivatives designated as cash flow hedging instruments, see Note 20 for additional disclosure pertaining to the amounts and location of reclassifications from accumulated other comprehensive income (loss) into earnings.

(Dollars in thousands)		Amount of Gain (Loss) Recognized in Income on Derivatives
Years ended December 31,	Statement of Income Location	2020	2019	2018
Derivatives not Designated as Hedging Instruments:
Loan related derivative contracts:
Interest rate swaps with customers	Loan related derivative income	$60,938	$29,910	($290)
Mirror swaps with counterparties	Loan related derivative income	(57,067)	(26,043)	2,709
Risk participation agreements	Loan related derivative income	120	97	(27)
Foreign exchange contracts	Loan related derivative income	—	28	69
Mortgage loan commitments:
Interest rate lock commitments	Mortgage banking revenues	6,106	290	(139)
Forward sale commitments	Mortgage banking revenues	(10,769)	(1,818)	997
Total		($672)	$2,464	$3,319