Share-Based Compensation Arrangements (Tables)

12 Months Ended

Dec. 31, 2018

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 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

(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.

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

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

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		$42.92	87,990		$31.18

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

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

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			$48.20