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Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2024
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 Unaudited Consolidated Balance Sheets:
(Dollars in thousands)June 30, 2024December 31, 2023
Fair ValueFair Value
Notional AmountsDerivative AssetsDerivative LiabilitiesNotional AmountsDerivative AssetsDerivative Liabilities
Derivatives Designated as Cash Flow Hedging Instruments:
Interest rate risk management contracts:
Interest rate swaps (1)
$120,000 $2,176 $— $120,000 $802 $1,119 
Interest rate collar50,000 — 41 — — — 
Derivatives not Designated as Hedging Instruments:
Loan related derivative contracts:
Interest rate contracts with customers933,015 2,967 60,648 938,872 6,594 52,102 
Mirror contracts with counterparties933,015 60,443 3,052 938,872 51,859 6,757 
Risk participation agreements
327,948 41 — 321,055 66 1 
Mortgage loan commitments:
Interest rate lock commitments
40,026 704 — 20,980 504 1 
Forward sale commitments
81,062 134 592 50,117 18 711 
Gross amounts
66,465 64,333 59,843 60,691 
Less: amounts offset (2)
3,093 3,093 7,877 7,877 
Derivative balances, net of offset63,372 61,240 51,966 52,814 
Less: collateral pledged (3)
— — — — 
Net amounts$63,372 $61,240 $51,966 $52,814 
(1)The fair value of derivative assets includes accrued interest receivable of $232 thousand and $239 thousand, respectively, at June 30, 2024 and December 31, 2023. There was no accrued interest payable included in the fair value of derivative liabilities at June 30, 2024 or at December 31, 2023.
(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 Unaudited Consolidated Statements of Changes in Shareholders’ Equity:
(Dollars in thousands)Amounts Recognized in
Other Comprehensive Income (Loss), Net of Tax
Three MonthsSix Months
Periods ended June 30, 2024202320242023
Derivatives Designated as Cash Flow Hedging Instruments:
Interest rate risk management contracts:
Interest rate swaps
$1,846 $2,715 $5,051 $5,512 
Interest rate collar(31)— (31)— 
Total$1,815 $2,715 $5,020 $5,512 

For derivatives designated as cash flow hedging instruments, see Note 14 for additional disclosure pertaining to the amounts and location of reclassifications from AOCL into earnings.
The following table presents the effect of derivative instruments in the Unaudited Consolidated Statements of Income:
(Dollars in thousands)Amount of Gain (Loss)
Recognized in Noninterest Income
Three MonthsSix Months
Periods ended June 30, Statement of Income Location2024202320242023
Derivatives not Designated as Hedging Instruments:
Loan related derivative contracts:
Interest rate contracts with customersLoan related derivative income($6,348)($20,492)($25,357)($9,360)
Mirror interest rate contracts with counterpartiesLoan related derivative income6,404 20,696 25,714 9,524 
Risk participation agreements
Loan related derivative income(7)43 (24)32 
Mortgage loan commitments:
Interest rate lock commitments
Mortgage banking revenues(48)(72)200 191 
Forward sale commitments
Mortgage banking revenues177 482 243 358 
Total$178 $657 $776 $745