Earnings Per Common Share

6 Months Ended

Jun. 30, 2013

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						Six months
Periods ended June 30,	2013			2012			2013			2012
Net income		$8,983			$8,713			$16,404			$17,151
Less dividends and undistributed earnings allocated to participating securities	(39		)	(40		)	(78		)	(74		)
Net income applicable to common shareholders		$8,944			$8,673			$16,326			$17,077
Weighted average basic common shares	16,454			16,358			16,428			16,344
Dilutive effect of common stock equivalents	127			34			130			37
Weighted average diluted common shares	16,581			16,392			16,558			16,381
Earnings per common share:
Basic		$0.54			$0.53			$0.99			$1.04
Diluted		$0.54			$0.53			$0.99			$1.04

Weighted average common stock equivalents, not included in common stock equivalents above because they were anti-dilutive, totaled 241 thousand and 394 thousand, respectively, for the three months ended June 30, 2013 and 2012. These amounts totaled 394 thousand and 393 thousand, respectively, for the six months ended June 30, 2013 and 2012.