Earnings Per Share

12 Months Ended

Dec. 31, 2012

Earnings Per Share [Abstract]

Earnings Per Share

(11) Earnings Per Share

The Company computes earnings per share in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 260, Earnings Per Share ("ASC 260"). TrustCo adopted FASB Staff Position on Emerging Issues Task Force 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities, as codified in FASB ASC 260-10 ("ASC 260-10"), which clarified that unvested share-based payment awards that contain nonforfeitable rights to receive dividends or divided equivalents (whether paid or unpaid) are participating securities, and thus, should be included in the two-class method of computing earnings per share ("EPS"). Participating securities under this statement include the unvested employees' and directors' restricted stock awards with time-based vesting, which receive nonforfeitable dividend payments.

A reconciliation of the component parts of earnings per share for 2012, 2011 and 2010 follows:

(dollars in thousands, except per share data)
	2012		2011
For the year ended December 31:
Net income	$	37,534	$	33,087
Less: Net income allocated to participating securities		43		5
Net income allocated to common shareholders	$	37,491	$	33,082
Basic EPS:
Distributed earnings allocated to common stock	$	24,607	$	22,389
Undistributed earnings allocated to common stock		12,884		10,693
Net income allocated to common shareholders	$	37,491	$	33,082
Weighted average common shares outstanding including participating securities		93,739		85,086
Less: Participating securities		106		14
Weighted average common shares		93,633		85,072
Basic EPS		0.400		0.389
Diluted EPS:
Net income allocated to common shareholders	$	37,491	$	33,082
Weighted average common shares for basic EPS		93,633		85,072
Effect of Dilutive Securities:
Stock Options		4		-
Weighted average common shares including potential dilutive shares		93,637		85,072
Diluted EPS		0.400		0.389

			Weighted
			Average Shares		Per Share
	Income		Outstanding		Amounts
For the year ended December 31, 2010:
Basic EPS:
Income available to common shareholders	$	29,321		76,935	$	0.381
Effect of Dilutive Securities:
Stock Options		-		-		-
Diluted EPS	$	29,321		76,935	$	0.381

As of December 31, 2012, 2011 and 2010, the weighted average number of antidilutive stock options excluded from diluted earnings per share was approximately 2.9 million, 2.8 million, and 3.0 million, respectively. The stock options are antidilutive because the strike price is greater than the average fair value of the Company's common stock for the periods presented.