Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2026

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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


(Dollars in thousands)	March 31, 2026			December 31, 2025
		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	$341	$470	$120,000	$126	$979
Interest rate collars	100,000	—	3	100,000	—	17
Interest rate floors	200,000	116	—	200,000	125	—
Derivatives Designated as Fair Value Hedging Instruments:
Interest rate risk management contracts:
Interest rate swaps	100,000	921	—	100,000	335	—
Derivatives not Designated as Hedging Instruments:
Loan related derivative contracts:
Interest rate contracts with customers	846,233	4,690	28,875	882,941	6,326	27,959
Mirror contracts with counterparties	846,233	28,755	4,783	882,941	27,857	6,392
Risk participation agreements	298,536	40	1	304,854	28	1

Mortgage loan commitments:
Interest rate lock commitments	40,650	593	13	30,373	603	12
Forward sale commitments	83,715	334	440	90,813	13	828
Gross amounts		35,790	34,585		35,413	36,188
Less: amounts offset (2)		5,240	5,240		6,643	6,643
Derivative balances, net of offset		30,550	29,345		28,770	29,545
Less: collateral pledged (3)		—	—		—	—
Net amounts		$30,550	$29,345		$28,770	$29,545

(1)The fair value of derivative assets includes accrued interest receivable of $23 thousand and $35 thousand, respectively, at March 31, 2026 and December 31, 2025. The fair value of derivative liabilities includes accrued interest payable of $49 thousand and $23 thousand, respectively, March 31, 2026 and December 31, 2025.

(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)

March 31, 2026

December 31, 2025

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

$99,077

($923)

$99,665

($335)

(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 $600.0 million and $608.5 million, respectively, at March 31, 2026 and December 31, 2025.

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, Net of Tax

Three months ended March 31,	2026	2025
Derivatives Designated as Cash Flow Hedging Instruments:
Interest rate risk management contracts:
Interest rate swaps	$2,158	$600
Interest rate collars	11	(7)

Interest rate floors	21	—
Total	$2,190	$593

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 the Unaudited Consolidated Statements of Income

Three months ended March 31,	Statement of Income Location	2026	2025
Derivatives Designated as Cash Flow Hedging Instruments:
Interest rate risk management contracts:
Interest rate swaps	Interest income: Interest and fees on loans	($2,116)	($2,116)
Interest rate swaps	Interest expense: FHLB advances	(8)	193

Interest rate floors	Interest income: Interest and fees on loans	(37)	—
Derivatives Designated as Fair Value Hedging Instruments:
Interest rate risk management contracts:
Interest rate swaps	Interest income: Interest and fees on loans	586	(779)
Hedged item	Interest income: Interest and fees on loans	(588)	782
Derivatives not Designated as Hedging Instruments:
Loan related derivative contracts:
Interest rate contracts with customers	Loan related derivative income	($4,805)	$9,797
Mirror interest rate contracts with counterparties	Loan related derivative income	5,020	(9,728)
Risk participation agreements	Loan related derivative income	12	32

Mortgage loan commitments:
Interest rate lock commitments	Mortgage banking revenues	(11)	570
Forward sale commitments	Mortgage banking revenues	499	(639)
Total		($1,448)	($1,888)

For derivatives designated as cash flow hedging instruments in the table above, the amounts represent the pre-tax reclassifications from AOCL into earnings.