Share-Based Compensation Arrangements (Tables)

12 Months Ended

Dec. 31, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Compensation Cost for Share-based Compensation Arrangements

Amounts recognized in the consolidated financial statements for share options, nonvested share units, nonvested share awards and nonvested performance shares are as follows:

(Dollars in thousands)
Years ended December 31,	2012		2011		2010
Share-based compensation expense		$1,962		$1,394		$909
Related income tax benefit		$700		$497		$324

Share Options Fair Value Assumptions

The fair value of the share option awards granted in 2012, 2011 and 2010 were estimated on the date of grant using the Black-Scholes Option-Pricing Model based on assumptions noted in the following table.  Washington Trust uses historical data to estimate share option exercise and employee departure behavior used in the option-pricing model; groups of employees that have similar historical behavior are considered separately for valuation purposes.  The expected term of options granted was derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding.  Expected volatility was based on historical volatility of Washington Trust shares.  The risk-free rate for periods within the contractual life of the share option was based on the U.S. Treasury yield curve in effect at the date of grant.

	2012		2011		2010
Expected term (years)	9		9		9
Expected dividend yield	3.45	%	3.33	%	3.16	%
Weighted average expected volatility	42.97	%	41.90	%	41.95	%
Weighted average risk-free interest rate	1.53	%	3.05	%	3.42	%

The weighted average grant-date fair value of the share options awarded during 2012, 2011 and 2010 was $7.46, $7.46 and $6.29, respectively.

Share Options Activity

A summary of the status of Washington Trust’s share options outstanding as of December 31, 2012 and changes during the year ended December 31, 2012 is presented below:

	Number of Share Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (000’s)
Beginning of period	712,061			$22.96
Granted	106,775		23.37
Exercised	(150,039	)	20.06
Forfeited or expired	(23,000	)	26.33
End of period	645,797			$23.58	5.0		$2,043
At end of period;
Options exercisable	390,347			$25.35	2.7		$658
Options expected to vest in future periods	255,450			$20.89	8.4		$1,385

Schedule of Stock Options Outstanding and Options Exercisable

Additional information concerning options outstanding and options exercisable at December 31, 2012 is summarized as follows:

	Options Outstanding				Options Exercisable
Exercise Price Ranges	Number of Shares	Weighted Average Remaining Life (Years)	Weighted Average Exercise Price		Number	Weighted Average Exercise Price
$14.47 to $17.36	3,582	5.9		$16.58	3,582		$16.58
$17.37 to $20.26	153,785	4.6	18.54		59,985	20.00
$20.27 to $23.15	68,200	7.0	21.52		12,000	20.62
$23.16 to $26.05	185,850	7.7	23.69		80,400	24.12
$26.06 to $28.94	234,380	2.5	27.52		234,380	27.52
	645,797	5.0		$23.58	390,347		$25.35

Nonvested Share Units Activity

A summary of the status of Washington Trust’s nonvested shares as of December 31, 2012 and changes during the year ended December 31, 2012 is presented below:

	Number of Shares		Weighted Average Grant Date Fair Value
Beginning of period	91,250			$19.84
Granted	29,725		23.62
Vested	(6,752	)	19.37
Forfeited	(5,448	)	21.54
End of period	108,775			$20.82

Nonvested Performance Shares Activity

A summary of the status of Washington Trust’s performance share awards as of December 31, 2012 and changes during the year ended December 31, 2012 is presented below:

	Number of Shares		Weighted Average Grant Date Fair Value
Beginning of period	76,341			$19.97
Granted	47,208		23.86
Vested	(2,666	)	21.62
Forfeited	(1,863	)	21.62
End of period	119,020			$21.45