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Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Derivative Instruments
The following table presents the notional amounts and fair values of derivative instruments in the Unaudited Consolidated Balance Sheets:
(Dollars in thousands)June 30, 2026December 31, 2025
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 $770 $170 $120,000 $126 $979 
Interest rate collars50,000 20 — 100,000 — 17 
Interest rate floors
200,000 33 — 200,000 125 — 
Derivatives Designated as Fair Value Hedging Instruments:
Interest rate risk management contracts:
Interest rate swaps100,000 1,503 — 100,000 335 — 
Derivatives not Designated as Hedging Instruments:
Loan related derivative contracts:
Interest rate contracts with customers897,320 3,053 32,189 882,941 6,326 27,959 
Mirror contracts with counterparties897,320 32,090 3,118 882,941 27,857 6,392 
Risk participation agreements
311,701 50 — 304,854 28 1 
Mortgage loan commitments:
Interest rate lock commitments
57,294 1,102 12 30,373 603 12 
Forward sale commitments
93,612 62 921 90,813 13 828 
Gross amounts
38,683 36,410 35,413 36,188 
Less: amounts offset (2)
3,288 3,288 6,643 6,643 
Derivative balances, net of offset35,395 33,122 28,770 29,545 
Less: collateral pledged (3)
— — — — 
Net amounts$35,395 $33,122 $28,770 $29,545 
(1)The fair value of derivative assets includes accrued interest receivable of $23 thousand and $35 thousand, respectively, at June 30, 2026 and December 31, 2025. The fair value of derivative liabilities includes accrued interest payable of $53 thousand and $23 thousand, respectively, at June 30, 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)
June 30, 2026December 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$98,516 ($1,484)$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 $590.2 million and $608.5 million, respectively, at June 30, 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 MonthsSix Months
Periods ended June 30, 2026202520262025
Derivatives Designated as Cash Flow Hedging Instruments:
Interest rate risk management contracts:
Interest rate swaps
$1,096 $1,094 $3,254 $1,693 
Interest rate collars17 (18)28 (24)
Interest rate floors
(34)— (13)— 
Total$1,079 $1,076 $3,269 $1,669 

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 MonthsSix Months
Periods ended June 30, Statement of Income Location2026202520262025
Derivatives Designated as Cash Flow Hedging Instruments:
Interest rate risk management contracts:
Interest rate swapsInterest income: Interest and fees on loans($729)($2,139)($2,845)($4,255)
Interest rate swaps
Interest expense: FHLB advances
34 192 26 386 
Interest rate floorsInterest income: Interest and fees on loans(38)— (75)— 
Derivatives Designated as Fair Value Hedging Instruments:
Interest rate risk management contracts:
Interest rate swapsInterest income: Interest and fees on loans554 (519)1,140 (1,298)
Hedged itemInterest income: Interest and fees on loans(561)520 (1,149)1,302 
Derivatives not Designated as Hedging Instruments:
Loan related derivative contracts:
Interest rate contracts with customersLoan related derivative income($7,012)$4,357 ($11,817)$14,154 
Mirror interest rate contracts with counterpartiesLoan related derivative income7,767 (3,690)12,787 (13,418)
Risk participation agreements
Loan related derivative income(172)9 (160)41 
Mortgage loan commitments:
Interest rate lock commitments
Mortgage banking revenues510 (55)499 515 
Forward sale commitments
Mortgage banking revenues(421)(87)78 (726)
Total($68)($1,412)($1,516)($3,299)
For derivatives designated as cash flow hedging instruments in the table above, the amounts represent the pre-tax reclassifications from AOCL into earnings.