WASHINGTON TRUST BANCORP INCWASH

WASHINGTON TRUST BANCORP INC Earnings Per Share Disclosure

10-KFiled Feb 24, 20261 min read
Earnings per Common Share
The following table presents the calculation of EPS:
(Dollars and shares in thousands, except per share amounts)
Years ended December 31,202520242023
Earnings for basic and diluted EPS calculations:
Net income (loss)$52,244 ($28,059)$48,176 
Less: dividends and undistributed earnings allocated to participating securities— (21)85 
Net income (loss) available to common shareholders$52,244 ($28,038)$48,091 
Shares for basic and diluted EPS calculations:
Weighted average common shares outstanding for basic EPS
19,180 17,149 17,033 
Dilutive effect of common stock equivalents101 — 29 
Weighted average common and potential common shares outstanding for diluted EPS
19,281 17,149 17,062 
EPS:
Basic earnings (loss) per common share$2.72 ($1.63)$2.82 
Diluted earnings (loss) per common share$2.71 ($1.63)$2.82 
Shares excluded from the calculation of diluted EPS:
Weighted average anti-dilutive common stock equivalents (1)
431 481 466 
(1)For 2025 and 2023, weighted average anti-dilutive common stock equivalents represent share-based compensation awards not included in the calculation of common shares outstanding for purposes of calculating diluted EPS as the grant prices were greater than the average market price of Bancorp’s common stock, and therefore were anti-dilutive. For 2024, the dilutive effect of common stock equivalents was excluded from the calculation of diluted EPS because the Corporation reported a net loss and the inclusion would have an anti-dilutive effect.

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

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