Share-Based Compensation Arrangements (Tables)

12 Months Ended

Dec. 31, 2016

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

Compensation Cost for Share-based Compensation Arrangements

The following table presents share-based compensation expense and the related income tax benefit recognized in the Consolidated Statements of Income for stock options, nonvested share awards and nonvested performance shares:

(Dollars in thousands)
Years ended December 31,	2016		2015		2014
Share-based compensation expense		$2,190		$2,074		$1,880
Related income tax benefit		$810		$767		$676

Stock 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:

	2016		2015		2014
Options granted	53,400		48,600		25,850
Cliff vesting period (years)	3		3-5		3
Expected term (years)	7.5		7.5		8
Expected dividend yield	3.89	%	3.94	%	3.83	%
Weighted average expected volatility	29.99	%	40.76	%	41.84	%
Weighted average risk-free interest rate	1.66	%	1.95	%	2.27	%
Weighted average grant-date fair value	$7.92		$11.15		$9.92

Stock 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, 2016:

	Number of Stock Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (000’s)
Beginning of period	309,116			$26.84
Granted	53,400		40.25
Exercised	(143,237	)	22.87
Forfeited or expired	—		—
End of period	219,279			$32.70	7.17		$5,121
At end of period:
Options exercisable	89,954			$25.34	4.77		$2,763
Options expected to vest in future periods	129,325			$37.82	8.85		$2,358

Schedule of Stock Options Outstanding and Options Exercisable

The following table presents additional information concerning options outstanding and options exercisable at December 31, 2016:

	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
$15.01 to $20.00	13,200	2.93		$17.52	13,200		$17.52
$20.01 to $25.00	54,090	4.52	23.08		47,090	22.84
$25.01 to $30.00	—	—	—		—	—
$30.01 to $35.00	51,689	6.90	32.76		29,564	32.77
$35.01 to $40.00	46,900	8.74	39.39		100	39.55
$40.01 to $45.00	53,400	9.80	40.25		—	—
	219,279	7.17		$32.70	89,954		$25.34

Nonvested Shares 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, 2016:

	Number of Shares		Weighted Average Grant Date Fair Value
Beginning of period	47,225			$33.46
Granted	22,175		38.82
Vested	(16,797	)	29.24
Forfeited	(2,928	)	36.11
End of period	49,675			$37.12

Nonvested Performance Shares Outstanding

The following table presents a summary of the performance share awards as of December 31, 2016:

		Grant Date Fair Value per Share	Current Performance Assumption	Expected Number of Shares
Performance shares awarded in:	2016	$36.11	140%	47,532
	2015	38.02	142%	37,683
	2014	34.66	133%	16,783
Total				101,998

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, 2016:

	Number of Shares		Weighted Average Grant Date Fair Value
Beginning of period	110,891			$32.81
Granted	47,532		36.11
Vested	(48,090	)	27.30
Forfeited	(8,335	)	37.26
End of period	101,998			$36.58