Earnings Per Share

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Earnings Per Share

(2) 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 the three months and six months ended June 30, 2013 and 2012 follows:

(dollars in thousands, except per share data)
	2013		2012
For the quarter ended June 30:
Net income	$	9,763	$	9,066
Less: Net income allocated to participating securities		11		10
Net income allocated to common shareholders	$	9,752	$	9,056
Basic EPS:
Distributed earnings allocated to common stock	$	6,182	$	6,139
Undistributed earnings allocated to common stock		3,570		2,917
Net income allocated to common shareholders	$	9,752	$	9,056
Weighted average common shares outstanding including participating securities		94,204		93,667
Less: Participating securities		106		106
Weighted average common shares		94,098		93,561
Basic EPS		0.104		0.097
Diluted EPS:
Net income allocated to common shareholders	$	9,752	$	9,056
Weighted average common shares for basic EPS		94,098		93,561
Effect of Dilutive Securities:
Stock Options		7		1
Weighted average common shares including potential dilutive shares		94,105		93,562
Diluted EPS		0.104		0.097

(dollars in thousands, except per share data)
	2013		2012
For the six months ended June 30:
Net income	$	18,931	$	17,975
Less: Net income allocated to participating securities		21		20
Net income allocated to common shareholders	$	18,910	$	17,955
Basic EPS:
Distributed earnings allocated to common stock	$	12,356	$	12,287
Undistributed earnings allocated to common stock		6,554		5,668
Net income allocated to common shareholders	$	18,910	$	17,955
Weighted average common shares outstanding including participating securities		94,134		93,609
Less: Participating securities		106		106
Weighted average common shares		94,028		93,503
Basic EPS		0.201		0.192
Diluted EPS:
Net income allocated to common shareholders	$	18,910	$	17,955
Weighted average common shares for basic EPS		94,028		93,503
Effect of Dilutive Securities:
Stock Options		6		1
Weighted average common shares including potential dilutive shares		94,034		93,504
Diluted EPS		0.201		0.192

For both the three months and six months ended June 30, 2013 and 2012, the weighted average number of antidilutive stock options excluded from diluted earnings per share was approximately 2.7 million and 3.1 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.