Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivatives by Balance Sheet Location

The following table presents the notional amounts and fair values of derivative instruments in the Consolidated Balance Sheets:

(Dollars in thousands)	December 31, 2022			December 31, 2021
		Fair Value			Fair Value
	Notional Amounts	Derivative Assets	Derivative Liabilities	Notional Amounts	Derivative Assets	Derivative Liabilities
Derivatives Designated as Cash Flow Hedging Instruments:
Interest rate risk management contracts:
Interest rate swaps (1)	$320,000	$548	$31,178	$320,000	$182	$5,301
Derivatives not Designated as Hedging Instruments:
Loan related derivative contracts:
Interest rate contracts with customers	935,099	32	68,137	1,022,388	32,361	2,015
Mirror contracts with counterparties	935,099	67,797	61	1,022,388	2,001	32,480
Risk participation agreements	282,191	—	2	237,446	1	2
Mortgage loan commitments:
Interest rate lock commitments	12,201	144	4	49,800	1,256	—
Forward sale commitments	23,150	58	150	103,626	54	905
Gross amounts		68,579	99,532		35,855	40,703
Less: amounts offset (2)		23,524	23,524		2,167	2,167
Derivative balances, net of offset		45,055	76,008		33,688	38,536
Less: collateral pledged (3)		—	7,716		—	34,539
Net amounts		$45,055	$68,292		$33,688	$3,997

(1)The fair value of derivative assets includes accrued interest receivable of $24 thousand and $182 thousand, respectively, at December 31, 2022 and 2021. The fair value of derivative liabilities includes accrued interest payable of $856 thousand and $19 thousand, respectively, at December 31, 2022 and 2021.

(2)Interest rate risk management contracts and loan related derivative contracts with counterparties are subject to master netting arrangements.

(3)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:

(Dollars in thousands)	Gain (Loss) Recognized in Other Comprehensive Income, Net of Tax
Years ended December 31,	2022	2021	2020
Derivatives Designated as Cash Flow Hedging Instruments:
Interest rate risk management contracts:
Interest rate caps	$—	$—	$89
Interest rate swaps	(18,632)	(2,566)	(893)
Interest rate floors	—	—	150
Total	($18,632)	($2,566)	($654)

The following table presents the effect of derivative instruments in the Consolidated Statements of Income:

(Dollars in thousands)		Amount of Gain (Loss) Recognized in Noninterest Income
Years ended December 31,	Statement of Income Location	2022	2021	2020
Derivatives not Designated as Hedging Instruments:
Loan related derivative contracts:
Interest rate contracts with customers	Loan related derivative income	($92,730)	($27,846)	$60,938
Mirror contracts with counterparties	Loan related derivative income	94,759	31,547	(57,067)
Risk participation agreements	Loan related derivative income	727	641	120
Mortgage loan commitments:
Interest rate lock commitments	Mortgage banking revenues	(1,116)	(5,947)	6,106
Forward sale commitments	Mortgage banking revenues	4,530	5,383	(10,769)
Total		$6,170	$3,778	($672)