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Earnings Per Common Share
 9 Months Ended
Sep. 30, 2012
Earnings Per Share [Abstract]  
Earnings Per Common Share
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
 
Nine Months
Periods ended September 30,
2012
 
2011
 
2012
 
2011
Net income

$8,900

 

$7,582

 

$26,051

 

$21,947

Less dividends and undistributed earnings allocated to participating securities
(42
)
 
(27
)
 
(116
)
 
(84
)
Net income applicable to common shareholders

$8,858

 

$7,555

 

$25,935

 

$21,863

 
 
 
 
 
 
 
 
Weighted average basic common shares
16,366

 
16,278

 
16,351

 
16,242

Dilutive effect of common stock equivalents
48

 
16

 
41

 
27

Weighted average diluted common shares
16,414

 
16,294

 
16,392

 
16,269

 
 
 
 
 
 
 
 
Earnings per common share:
 
 
 
 
 
 
 
Basic

$0.54

 

$0.46

 

$1.59

 

$1.35

Diluted

$0.54

 

$0.46

 

$1.58

 

$1.34


Weighted average common stock equivalents, not included in common stock equivalents above because they were anti-dilutive, totaled 400 thousand and 412 thousand, respectively, for the three months ended September 30, 2012 and 2011. These amounts totaled 342 thousand and 385 thousand, respectively, for the nine months ended September 30, 2012 and 2011.