Share-Based Compensation Arrangements (Tables)
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12 Months Ended |
Dec. 31, 2018 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
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Compensation Cost for Share-based Compensation Arrangements |
The following table presents share-based compensation expense and the related income tax benefits recognized in the Consolidated Statements of Income for stock options, nonvested share units and nonvested performance share units: | | | | | | | | | | | | | (Dollars in thousands) | | | | | | Years ended December 31, | 2018 |
| | 2017 |
| | 2016 |
| Share-based compensation expense |
| $2,602 |
| |
| $2,577 |
| |
| $2,190 |
| Related income tax benefits (1) |
| $1,108 |
| |
| $1,114 |
| |
| $810 |
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| | (1) | Includes $496 thousand and $508 thousand, respectively, of excess tax benefits recognized upon the settlement of share-based compensation awards in 2018 and 2017. See additional disclosure under the heading “Share-Based Compensation” in Note 1. |
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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: | | | | | | | | | | | 2018 |
| | 2017 |
| | 2016 |
| Options granted | 47,950 | | 47,725 | | 53,400 | Cliff vesting period (years) | 3 |
| | 3 |
| | 3 |
| Expected term (years) | 6.5 |
| | 7.0 |
| | 7.5 |
| Expected dividend yield | 3.39 | % | | 3.57 | % | | 3.89 | % | Weighted average expected volatility | 22.73 | % | | 27.10 | % | | 29.99 | % | Weighted average risk-free interest rate | 3.14 | % | | 1.70 | % | | 1.66 | % | Weighted average grant-date fair value | $9.74 | | $10.60 | | $7.92 |
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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, 2018: | | | | | | | | | | | | | | | Number of Stock Options | | Weighted Average Exercise Price | | Weighted Average Remaining Contractual Term (Years) | | Aggregate Intrinsic Value (000’s) | Beginning of period | 223,853 |
| |
| $38.68 |
| | | | | Granted | 47,950 |
| | 54.74 |
| | | | | Exercised | (29,738 | ) | | 27.57 |
| | | | | Forfeited or expired | (19,450 | ) | | 46.71 |
| | | | | End of period | 222,615 |
| |
| $42.92 |
| | 7.15 | |
| $1,790 |
| At end of period: | | | | | | | | Options exercisable | 87,990 |
| |
| $31.18 |
| | 4.68 | |
| $1,439 |
| Options expected to vest in future periods | 134,625 |
| |
| $50.60 |
| | 8.76 | |
| $351 |
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Schedule of Stock Options Outstanding and Options Exercisable |
The following table presents additional information concerning options outstanding and options exercisable at December 31, 2018: | | | | | | | | | | | | | | | | | | | 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 | 6,900 |
| | 1.42 |
| |
| $17.52 |
| | 6,900 |
| |
| $17.52 |
| $20.01 to $25.00 | 26,040 |
| | 3.07 |
| | 23.06 |
| | 26,040 |
| | 23.06 |
| $25.01 to $30.00 | — |
| | — |
| | — |
| | — |
| | — |
| $30.01 to $35.00 | 22,875 |
| | 4.98 |
| | 32.76 |
| | 22,875 |
| | 32.76 |
| $35.01 to $40.00 | 36,175 |
| | 6.47 |
| | 39.35 |
| | 32,175 |
| | 39.55 |
| $40.01 to $45.00 | 42,850 |
| | 7.80 |
| | 40.25 |
| | — |
| | — |
| $45.01 to $50.00 | — |
| | — |
| | — |
| | — |
| | — |
| $50.01 to $55.00 | 47,950 |
| | 9.80 |
| | 54.74 |
| | — |
| | — |
| $55.01 to $60.00 | 39,825 |
| | 8.80 |
| | 58.05 |
| | — |
| | — |
| | 222,615 |
| | 7.15 |
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| $42.92 |
| | 87,990 |
| |
| $31.18 |
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Nonvested Shares Units Activity |
The following table presents a summary of the status of Washington Trust’s nonvested share units as of and for the year ended December 31, 2018: | | | | | | | | | Number of Shares | | Weighted Average Grant Date Fair Value | Beginning of period | 53,775 |
| |
| $43.13 |
| Granted | 13,430 |
| | 55.71 |
| Vested | (18,805 | ) | | 37.87 |
| Forfeited | (3,050 | ) | | 47.75 |
| End of period | 45,350 |
| |
| $48.73 |
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Performance Share Units Outstanding |
The following table presents a summary of the performance share unit awards as of December 31, 2018: | | | | | | | | | | | | | Grant Date Fair Value per Share | | Current Performance Assumption | | Expected Number of Shares | Performance share units awarded in: | 2018 | | $54.25 | | 140% | | 41,454 |
| | 2017 | | 51.85 | | 150% | | 24,150 |
| | 2016 | | 36.11 | | 140% | | 28,000 |
| Total | | | | | | | 93,604 |
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Performance Share Units Activity |
The following table presents a summary of the status of Washington Trust’s performance share units as of and for the year ended December 31, 2018: | | | | | | | | | Number of Shares | | Weighted Average Grant Date Fair Value | Beginning of period | 117,465 |
| |
| $41.58 |
| Granted | 41,454 |
| | 54.25 |
| Vested | (36,729 | ) | | 38.02 |
| Forfeited | (28,586 | ) | | 42.83 |
| End of period | 93,604 |
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| $48.20 |
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