Earnings Per Common Share

6 Months Ended

Jun. 30, 2011

Earnings Per Common Share [Abstract]

(15) Earnings Per Common Share

Washington Trust utilizes the two-class method earnings allocation formula to determine earnings per share of each class of stock according to dividends and participation rights in undistributed earnings. Share based payments that entitle holders to receive non-forfeitable dividends before vesting are considered participating securities and included in earnings allocation for computing basic earnings per share under this method. Undistributed income is allocated to common shareholders and participating securities under the two-class method based upon the proportion of each to the total weighted average shares available.

The calculation of earnings per common share is presented below.

(Dollars and shares in thousands, except per share amounts)

	Three Months						Six Months
Periods ended June 30,	2011			2010			2011			2010
Net income	$	7,565		$	5,298		$	14,365		$	10,470
Less dividends and undistributed earnings allocated to participating securities		(30	)		(19	)		(57	)		(27	)
Net income applicable to common shareholders		7,535			5,279			14,308			10,443

Weighted average basic common shares		16,251.6			16,104.6			16,224.5			16,081.3
Dilutive effect of common stock equivalents		32.7			38.5			32.5			35.0
Weighted average diluted common shares		16,284.3			16,143.1			16,257.0			16,116.3
Earnings per common share:
Basic	$	0.46		$	0.33		$	0.88		$	0.65
Diluted	$	0.46		$	0.33		$	0.88		$	0.65

Weighted average common stock equivalents, not included in common stock equivalents above because they were anti-dilutive, totaled 349 thousand and 717 thousand, respectively, for the three months ended June 30, 2011 and 2010. These amounts totaled 374 thousand and 707 thousand, respectively, for the six months ended June 30, 2011 and 2010.