Earnings Per Common Share

3 Months Ended

Mar. 31, 2014

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 ended March 31,	2014			2013
Net income		$9,298			$7,421
Less dividends and undistributed earnings allocated to participating securities	(41		)	(39		)
Net income applicable to common shareholders		$9,257			$7,382
Weighted average basic common shares	16,626			16,401
Dilutive effect of common stock equivalents	174			48
Weighted average diluted common shares	16,800			16,449
Earnings per common share:
Basic		$0.56			$0.45
Diluted		$0.55			$0.45

Weighted average common stock equivalents, not included in common stock equivalents above because they were anti-dilutive,were 55 thousand and 336 thousand, respectively, for the three months ended March 31, 2014 and 2013.