Share-Based Compensation Arrangements (Tables)

12 Months Ended

Dec. 31, 2020

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,	2020	2019	2018
Share-based compensation expense	$3,766	$3,124	$2,602
Related income tax benefits (1)	$801	$982	$1,108

(1)Includes $103 thousand of excess tax expenses recognized upon the settlement of share-based compensation awards in 2020. Includes $248 thousand and $496 thousand, respectively, of excess tax benefits recognized upon the settlement of share-based compensation awards in 2019 and 2018.

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:

	2020		2019		2018
Options granted	81,530		61,800		47,950
Cliff vesting period (years)	3		3		3
Expected term (years)	6.5		6.5		6.5
Expected dividend yield	3.69	%	3.40	%	3.39	%
Weighted average expected volatility	29.89	%	23.05	%	22.73	%
Weighted average risk-free interest rate	0.46	%	1.71	%	3.14	%
Weighted average grant-date fair value	$5.75		$7.44		$9.74

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, 2020:

	Number of Stock Options	Weighted Average Exercise Price	Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (000’s)
Beginning of period	248,815	$45.38
Granted	81,530	32.23
Exercised	(4,100)	17.52
Forfeited or expired	—	—
End of period	326,245	$42.44	7.23	$2,011
At end of period:
Options exercisable	134,965	$41.40	4.77	$986
Options expected to vest in future periods	191,280	$43.18	8.97	$1,025

Schedule of Stock Options Outstanding and Options Exercisable

The following table presents additional information concerning options outstanding and options exercisable at December 31, 2020:

	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
$20.01 to $30.00	22,015	1.14	22.89	22,015	22.89
$30.01 to $40.00	123,405	7.82	33.57	41,875	36.17
$40.01 to $50.00	93,050	7.79	45.83	31,250	40.25
$50.01 to $60.00	87,775	7.34	56.24	39,825	58.05
Total	326,245	7.23	$42.44	134,965	$41.40

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, 2020:

	Number of Shares	Weighted Average Grant Date Fair Value
Beginning of period	53,890	$52.01
Granted	27,385	35.38
Vested	(15,160)	53.39
Forfeited	—	—
End of period	66,115	$44.80

Performance Share Units Outstanding

The following table presents a summary of the performance share unit awards as of December 31, 2020:

		Grant Date Fair Value per Share	Weighted Average Current Performance Assumption	Expected Number of Shares
Performance share units awarded in:	2020	$34.22	140%	65,632
	2019	52.84	148%	46,320
	2018	54.25	150%	44,415
Total				156,367

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, 2020:

	Number of Shares	Weighted Average Grant Date Fair Value
Beginning of period	108,964	$53.16
Granted	71,007	35.70
Vested	(23,604)	51.85
Forfeited	—	—
End of period	156,367	$45.43