Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 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	Sep 30, 2022	Dec 31, 2021	Balance Sheet Location	Sep 30, 2022	Dec 31, 2021
Derivatives Designated as Cash Flow Hedging Instruments:
Interest rate risk management contracts:
Interest rate swaps	Other assets	$540	$182	Other liabilities	$32,936	$5,301
Derivatives not Designated as Hedging Instruments:
Loan related derivative contracts:
Interest rate contracts with customers	Other assets	122	32,361	Other liabilities	71,028	2,015
Mirror contracts with counterparties	Other assets	70,679	2,001	Other liabilities	122	32,480
Risk participation agreements	Other assets	—	1	Other liabilities	—	2
Mortgage loan commitments:
Interest rate lock commitments	Other assets	204	1,256	Other liabilities	186	—
Forward sale commitments	Other assets	1,069	54	Other liabilities	211	905
Gross amounts		72,614	35,855		104,483	40,703
Less: amounts offset (1)		24,516	2,167		24,516	2,167
Derivative balances, net of offset		48,098	33,688		79,967	38,536
Less: collateral pledged (2)		—	—		8,542	34,539
Net amounts		$48,098	$33,688		$71,425	$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		Nine Months
Periods ended September 30,	2022	2021	2022	2021
Derivatives Designated as Cash Flow Hedging Instruments:
Interest rate risk management contracts:
Interest rate swaps	($6,973)	($403)	($20,281)	($36)
Total	($6,973)	($403)	($20,281)	($36)

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		Nine Months
Periods ended September 30,	Statement of Income Location	2022	2021	2022	2021
Derivatives not Designated as Hedging Instruments:
Loan related derivative contracts:
Interest rate contracts with customers	Loan related derivative income	($33,605)	($2,715)	($93,227)	($21,281)
Mirror contracts with counterparties	Loan related derivative income	34,646	3,558	95,189	23,173
Risk participation agreements	Loan related derivative income	—	(115)	49	478
Mortgage loan commitments:
Interest rate lock commitments	Mortgage banking revenues	(516)	(17)	(1,238)	(4,859)
Forward sale commitments	Mortgage banking revenues	998	(361)	4,729	4,994
Total		$1,523	$350	$5,502	$2,505