Share-Based Compensation Arrangements (Tables)

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [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,	2019		2018		2017
Share-based compensation expense		$3,124		$2,602		$2,577
Related income tax benefits (1)		$982		$1,108		$1,114

(1) Includes $248 thousand, $496 thousand, and $508 thousand, respectively, of excess tax benefits recognized upon the settlement of share-based compensation awards in 2019, 2018 and 2017.

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:

	2019		2018		2017
Options granted	61,800		47,950		47,725
Cliff vesting period (years)	3		3		3
Expected term (years)	6.5		6.5		7.0
Expected dividend yield	3.40	%	3.39	%	3.57	%
Weighted average expected volatility	23.05	%	22.73	%	27.10	%
Weighted average risk-free interest rate	1.71	%	3.14	%	1.70	%
Weighted average grant-date fair value	$7.44		$9.74		$10.60

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, 2019:

	Number of Stock Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (000’s)
Beginning of period	222,615			$42.92
Granted	61,800		48.65
Exercised	(35,600	)	35.70
Forfeited or expired	—		—
End of period	248,815			$45.38	7.27		$2,308
At end of period:
Options exercisable	95,240			$33.57	4.71		$1,926
Options expected to vest in future periods	153,575			$52.70	8.85		$382

Schedule of Stock Options Outstanding and Options Exercisable

The following table presents additional information concerning options outstanding and options exercisable at December 31, 2019:

	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	4,100	0.42		$17.52	4,100		$17.52
$20.01 to $25.00	22,015	2.14	22.89		22,015	22.89
$25.01 to $30.00	—	—	—		—	—
$30.01 to $35.00	19,775	4.16	32.76		19,775	32.76
$35.01 to $40.00	22,100	5.72	39.22		18,100	39.55
$40.01 to $45.00	31,250	6.80	40.25		31,250	40.25
$45.01 to $50.00	61,800	9.80	48.65		—	—
$50.01 to $55.00	47,950	8.80	54.74		—	—
$55.01 to $60.00	39,825	7.80	58.05		—	—
	248,815	7.27		$45.38	95,240		$33.57

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, 2019:

	Number of Shares		Weighted Average Grant Date Fair Value
Beginning of period	45,350			$48.73
Granted	26,070		49.81
Vested	(17,530	)	40.26
Forfeited	—		—
End of period	53,890			$52.01

Performance Share Units Outstanding

The following table presents a summary of the performance share unit awards as of December 31, 2019:

		Grant Date Fair Value per Share	Weighted Average Current Performance Assumption	Expected Number of Shares
Performance share units awarded in:	2019	$52.84	138%	43,360
	2018	54.25	140%	41,454
	2017	51.85	150%	24,150
Total				108,964

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, 2019:

	Number of Shares		Weighted Average Grant Date Fair Value
Beginning of period	93,604			$48.20
Granted	43,360		52.84
Vested	(28,239	)	36.11
Forfeited	239		36.11
End of period	108,964			$53.16