Share-Based Compensation Arrangements (Tables)

12 Months Ended

Dec. 31, 2014

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

Compensation Cost for Share-based Compensation Arrangements

The following table presents the amounts recognized in the consolidated financial statements for stock options, nonvested share awards and nonvested performance shares:

(Dollars in thousands)
Years ended December 31,	2014		2013		2012
Share-based compensation expense		$1,880		$1,876		$1,962
Related income tax benefit		$676		$673		$700

Share Options Fair Value Assumptions

The following presents the assumptions used in determining the grant date fair value of the stock option awards granted to certain key employees:

	2014		2013		2012
Options granted	25,850		54,600		106,775
Cliff vesting period (years)	3		3		3 - 5
Expected term (years)	8		8		9
Expected dividend yield	3.83	%	3.77	%	3.45	%
Weighted average expected volatility	41.84	%	42.85	%	42.97	%
Weighted average risk-free interest rate	2.27	%	2.46	%	1.53	%
Weighted average grant-date fair value	$9.92		$10.35		$7.46

Share Options Activity

The following table presents a summary of the status of Washington Trust’s stock options outstanding as of and for the year ended December 31, 2014:

	Number of Stock Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (000’s)
Beginning of period	428,388			$24.50
Granted	25,850		32.74
Exercised	(89,511	)	24.66
Forfeited or expired	(7,250	)	27.20
End of period	357,477			$24.99	5.80		$5,428
At end of period:
Options exercisable	192,627			$22.60	3.70		$3,386
Options expected to vest in future periods	164,850			$27.79	8.25		$2,042

Schedule of Stock Options Outstanding and Options Exercisable

The following table presents additional information concerning options outstanding and options exercisable at December 31, 2014:

	Options Outstanding				Options Exercisable
Exercise Price Ranges	Number of Shares	Weighted Average Remaining Life (Years)	Weighted Average Exercise Price		Number of Shares	Weighted Average Exercise Price
$16.39 to $19.66	56,032	4.97		$17.61	56,032		$17.61
$19.67 to $22.94	40,778	6.28	21.71		40,778	21.71
$22.95 to $26.22	133,478	5.95	23.62		46,078	24.06
$26.23 to $29.49	49,739	0.75	27.61		49,739	27.61
$29.50 to $32.77	77,450	9.12	32.76		—	—
	357,477	5.80		$24.99	192,627		$22.60

Nonvested Share Units Activity

The following table presents a summary of the status of Washington Trust’s nonvested shares as of and for the year ended December 31, 2014:

	Number of Shares		Weighted Average Grant Date Fair Value
Beginning of period	90,525			$24.34
Granted	11,630		34.45
Vested	(31,350	)	21.37
Forfeited	(375	)	23.27
End of period	70,430			$27.34

Nonvested Performance Shares Activity

The following table presents a summary of the status of Washington Trust’s performance share awards as of and for the year ended December 31, 2014:

	Number of Shares		Weighted Average Grant Date Fair Value
Beginning of period	124,117			$23.87
Granted	21,140		34.66
Vested	(39,218	)	21.62
Forfeited	(6,343	)	24.01
End of period	99,696			$27.12