Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2022

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 Unaudited Consolidated Balance Sheets:

(Dollars in thousands)	Derivative Assets			Derivative Liabilities
		Fair Value			Fair Value
	Balance Sheet Location	Mar 31, 2022	Dec 31, 2021	Balance Sheet Location	Mar 31, 2022	Dec 31, 2021
Derivatives Designated as Cash Flow Hedging Instruments:
Interest rate risk management contracts:
Interest rate swaps	Other assets	$201	$182	Other liabilities	$18,947	$5,301
Derivatives not Designated as Hedging Instruments:
Loan related derivative contracts:
Interest rate swaps with customers	Other assets	7,088	32,361	Other liabilities	21,656	2,015
Mirror swaps with counterparties	Other assets	21,518	2,001	Other liabilities	7,141	32,480
Risk participation agreements	Other assets	—	1	Other liabilities	2	2
Mortgage loan commitments:
Interest rate lock commitments	Other assets	407	1,256	Other liabilities	85	—
Forward sale commitments	Other assets	985	54	Other liabilities	69	905
Gross amounts		30,199	35,855		47,900	40,703
Less: amounts offset (1)		13,961	2,167		13,961	2,167
Derivative balances, net of offset		16,238	33,688		33,939	38,536
Less: collateral pledged (2)		—	—		10,848	34,539
Net amounts		$16,238	$33,688		$23,091	$3,997

(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 Unaudited Consolidated Statements of Changes in Shareholders’ Equity and Unaudited Consolidated Statements of Income:

(Dollars in thousands)	Gain (Loss) Recognized in Other Comprehensive Income (Loss), Net of Tax
Three months ended March 31,	2022	2021
Derivatives Designated as Cash Flow Hedging Instruments:
Interest rate risk management contracts:
Interest rate swaps	($10,335)	$297
Total	($10,335)	$297

For derivatives designated as cash flow hedging instruments, see Note 15 for additional disclosure pertaining to the amounts and location of reclassifications from AOCL into earnings.

(Dollars in thousands)		Amount of Gain (Loss) Recognized in Income on Derivatives
Three months ended March 31,	Statement of Income Location	2022	2021
Derivatives not Designated as Hedging Instruments:
Loan related derivative contracts:
Interest rate swaps with customers	Loan related derivative income	($40,822)	($30,231)
Mirror swaps with counterparties	Loan related derivative income	41,122	30,683
Risk participation agreements	Loan related derivative income	1	15
Mortgage loan commitments:
Interest rate lock commitments	Mortgage banking revenues	(934)	(4,529)
Forward sale commitments	Mortgage banking revenues	2,991	7,285
Total		$2,358	$3,223