Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The following table presents the notional amounts and the fair values of derivative instruments:


(Dollars in thousands)	December 31, 2025			December 31, 2024
		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	$126	$979	$120,000	$1,529	$229
Interest rate collar	100,000	—	17	50,000	—	30
Interest rate floors	200,000	125	—	—	—	—
Derivatives Designated as Fair Value Hedging Instruments:
Interest rate risk management contracts:
Interest rate swaps	100,000	335	—	100,000	1,477	—
Derivatives not Designated as Hedging Instruments:
Loan related derivative contracts:
Interest rate contracts with customers	882,941	6,326	27,959	886,912	2,468	51,372
Mirror interest rate contracts with counterparties	882,941	27,857	6,392	886,912	51,176	2,529
Risk participation agreements	304,854	28	1	343,935	29	—

Mortgage loan commitments:
Interest rate lock commitments	30,373	603	12	20,238	248	—
Forward sale commitments	90,813	13	828	52,100	163	291
Gross amounts		35,413	36,188		57,090	54,451
Less: amounts offset (2)		6,643	6,643		2,788	2,788
Derivative balances, net of offset		28,770	29,545		54,302	51,663
Less: collateral pledged (3)		—	—		—	—
Net amounts		$28,770	$29,545		$54,302	$51,663

(1)The fair value of derivative assets includes accrued interest receivable of $35 thousand and $120 thousand, respectively, at December 31, 2025 and 2024. The fair value of derivative liabilities includes accrued interest payable of $23 thousand at December 31, 2025. There was no accrued interest payable included in the fair value of derivative liabilities at December 31, 2024.

(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.

The following table presents the balance sheet location, carrying value, and cumulative basis adjustment of the hedged item associated with fair value hedges:

(Dollars in thousands)

December 31, 2025

December 31, 2024

Balance Sheet Location

Carrying Value of Hedged Item (1)

Cumulative Basis Adjustment

Carrying Value of Hedged Item

(1)

Cumulative Basis Adjustment

Residential real estate loans

$99,665

($335)

$98,519

($1,481)

(1)Represents the carrying value of the hedged item associated with fair value hedges on a closed-pool of fixed-rate residential real estate loans that are expected to be outstanding for the designated hedged periods. The amortized cost balance of the closed-pool of residential real estate loans used in the fair value hedges was $608.5 million and $733.2 million, respectively, at December 31, 2025 and 2024.

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)	Amounts Recognized in Other Comprehensive Income (Loss), Net of Tax
Years ended December 31,	2025	2024	2023
Derivatives Designated as Cash Flow Hedging Instruments:
Interest rate risk management contracts:

Interest rate swaps	$4,887	$7,703	$7,026
Interest rate collar	10	(22)	—
Interest rate floors	(101)	—	—
Total	$4,796	$7,681	$7,026

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


(Dollars in thousands)		Amount of Gain (Loss) Recognized in the Consolidated Statements of Income (Loss)
Years ended December 31,	Statement of Income Location	2025	2024	2023
Derivatives Designated as Cash Flow Hedging Instruments:
Interest rate risk management contracts:
Interest rate swaps	Interest income: Interest and fees on loans	($8,581)	($8,605)	($9,228)
Interest rate swaps	Interest expense: FHLB advances	675	1,775	1,665

Interest rate floors	Interest income: Interest and fees on loans	(50)	—	—
Derivatives Designated as Fair Value Hedging Instruments:
Interest rate risk management contracts:
Interest rate swaps	Interest income: Interest and fees on loans	(1,142)	1,477	—
Hedged item	Interest income: Interest and fees on loans	1,146	(1,481)	—
Derivatives not Designated as Hedging Instruments:
Loan related derivative contracts:
Interest rate contracts with customers	Loan related derivative income	11,896	(28,561)	(1,408)
Mirror interest rate contracts with counterparties	Loan related derivative income	(10,068)	28,963	3,211
Risk participation agreements	Loan related derivative income	301	65	(413)

Mortgage loan commitments:
Interest rate lock commitments	Mortgage banking revenues	343	(256)	363
Forward sale commitments	Mortgage banking revenues	(1,176)	514	61
Total		($6,656)	($6,109)	($5,749)