Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2023

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, 2023			December 31, 2022
		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)	$120,000	$802	$1,119	$320,000	$548	$31,178
Derivatives not Designated as Hedging Instruments:
Loan related derivative contracts:
Interest rate contracts with customers	938,872	6,594	52,102	935,099	32	68,137
Mirror interest rate contracts with counterparties	938,872	51,859	6,757	935,099	67,797	61
Risk participation agreements	321,055	66	1	282,191	—	2
Mortgage loan commitments:
Interest rate lock commitments	20,980	504	1	12,201	144	4
Forward sale commitments	50,117	18	711	23,150	58	150
Gross amounts		59,843	60,691		68,579	99,532
Less: amounts offset (2)		7,877	7,877		23,524	23,524
Derivative balances, net of offset		51,966	52,814		45,055	76,008
Less: collateral pledged (3)		—	—		—	7,716
Net amounts		$51,966	$52,814		$45,055	$68,292

(1)The fair value of derivative assets includes accrued interest receivable of $239 thousand and $24 thousand, respectively, at December 31, 2023 and 2022. There was no accrued interest payable included in the fair value of derivative liabilities at December 31, 2023, compared to $856 thousand of accrued interest payable at December 31, 2022.

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

(3)Collateral contractually required to be 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,	2023	2022	2021
Derivatives Designated as Cash Flow Hedging Instruments:
Interest rate risk management contracts:
Interest rate swaps	$7,026	($18,632)	($2,566)
Total	$7,026	($18,632)	($2,566)

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	2023	2022	2021
Derivatives not Designated as Hedging Instruments:
Loan related derivative contracts:
Interest rate contracts with customers	Loan related derivative income	($1,408)	($92,730)	($27,846)
Mirror contracts with counterparties	Loan related derivative income	3,211	94,759	31,547
Risk participation agreements	Loan related derivative income	(413)	727	641
Mortgage loan commitments:
Interest rate lock commitments	Mortgage banking revenues	363	(1,116)	(5,947)
Forward sale commitments	Mortgage banking revenues	61	4,530	5,383
Total		$1,814	$6,170	$3,778