Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2021

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 Consolidated Balance Sheets:

(Dollars in thousands)	Derivative Assets			Derivative Liabilities
		Fair Value			Fair Value
	Balance Sheet Location	Dec 31, 2021	Dec 31, 2020	Balance Sheet Location	Dec 31, 2021	Dec 31, 2020
Derivatives Designated as Cash Flow Hedging Instruments:
Interest rate risk management contracts:
Interest rate swaps	Other assets	$182	$—	Other liabilities	$5,301	$1,958
Derivatives not Designated as Hedging Instruments:
Loan related derivative contracts:
Interest rate swaps with customers	Other assets	32,361	75,804	Other liabilities	2,015	68
Mirror swaps with counterparties	Other assets	2,001	67	Other liabilities	32,480	76,248
Risk participation agreements	Other assets	1	22	Other liabilities	2	2
Mortgage loan commitments:
Interest rate lock commitments	Other assets	1,256	7,202	Other liabilities	—	—
Forward sale commitments	Other assets	54	—	Other liabilities	905	2,914
Gross amounts		35,855	83,095		40,703	81,190
Less: amounts offset (1)		2,167	67		2,167	67
Derivative balances, net of offset		33,688	83,028		38,536	81,123
Less: collateral pledged (2)		—	—		34,539	74,698
Net amounts		$33,688	$83,028		$3,997	$6,425

(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 table presents the effect of derivative instruments in the 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,	2021	2020	2019
Derivatives Designated as Cash Flow Hedging Instruments:
Interest rate risk management contracts:
Interest rate caps	$—	$89	$52
Interest rate swaps	(2,566)	(893)	(1,232)
Interest rate floors	—	150	196
Total	($2,566)	($654)	($984)

Interest rate cap and interest rate floor contracts designated as cash flow hedges matured in 2020.

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	2021	2020	2019
Derivatives not Designated as Hedging Instruments:
Loan related derivative contracts:
Interest rate swaps with customers	Loan related derivative income	($27,846)	$60,938	$29,910
Mirror swaps with counterparties	Loan related derivative income	31,547	(57,067)	(26,043)
Risk participation agreements	Loan related derivative income	641	120	97
Foreign exchange contracts	Loan related derivative income	—	—	28
Mortgage loan commitments:
Interest rate lock commitments	Mortgage banking revenues	(5,947)	6,106	290
Forward sale commitments	Mortgage banking revenues	5,383	(10,769)	(1,818)
Total		$3,778	($672)	$2,464