Earnings Per Common Share

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Earnings Per Common Share

Earnings Per Common Share

Washington Trust utilizes the two-class method earnings allocation formula to determine earnings per share of each class of stock according to dividends and participation rights in undistributed earnings.  Share-based payments that entitle holders to receive non-forfeitable dividends before vesting are considered participating securities and included in earnings allocation for computing basic earnings per share under this method.  Undistributed income is allocated to common shareholders and participating securities under the two-class method based upon the proportion of each to the total weighted average shares available.

The calculation of earnings per common share is presented below.

(Dollars and shares in thousands, except per share amounts)
	Three Months						Nine months
Periods ended September 30,	2013			2012			2013			2012
Net income		$9,960			$8,900			$26,364			$26,051
Less dividends and undistributed earnings allocated to participating securities	(37		)	(42		)	(115		)	(116		)
Net income applicable to common shareholders		$9,923			$8,858			$26,249			$25,935
Weighted average basic common shares	16,563			16,366			16,473			16,351
Dilutive effect of common stock equivalents	133			48			127			41
Weighted average diluted common shares	16,696			16,414			16,600			16,392
Earnings per common share:
Basic		$0.60			$0.54			$1.59			$1.59
Diluted		$0.59			$0.54			$1.58			$1.58

Weighted average common stock equivalents, not included in common stock equivalents above because they were anti-dilutive, were zero and 400 thousand, respectively, for the three months ended September 30, 2013 and 2012. These amounts were 7 thousand and 342 thousand, respectively, for the nine months ended September 30, 2013 and 2012.