Earnings Per Share

9 Months Ended

Sep. 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 nine months ended September 30, 2013 and 2012 follows:

(dollars in thousands, except per share data)
	2013		2012
For the quarter ended September 30:
Net income	$	10,252	$	9,753
Less: Net income allocated to participating securities		11		11
Net income allocated to common shareholders	$	10,241	$	9,742
Basic EPS:
Distributed earnings allocated to common stock	$	6,191	$	6,156
Undistributed earnings allocated to common stock		4,050		3,586
Net income allocated to common shareholders	$	10,241	$	9,742
Weighted average common shares outstanding including participating securities		94,334		93,798
Less: Participating securities		106		106
Weighted average common shares		94,228		93,692
Basic EPS		0.109		0.104
Diluted EPS:
Net income allocated to common shareholders	$	10,241	$	9,742
Weighted average common shares for basic EPS		94,228		93,692
Effect of Dilutive Securities:
Stock Options		47		7
Weighted average common shares including potential dilutive shares		94,275		93,699
Diluted EPS		0.109		0.104

(dollars in thousands, except per share data)
	2013		2012
For the nine months ended September 30:
Net income	$	29,183	$	27,728
Less: Net income allocated to participating securities		33		31
Net income allocated to common shareholders	$	29,150	$	27,697
Basic EPS:
Distributed earnings allocated to common stock	$	18,546	$	18,443
Undistributed earnings allocated to common stock		10,604		9,254
Net income allocated to common shareholders	$	29,150	$	27,697
Weighted average common shares outstanding including participating securities		94,202		93,674
Less: Participating securities		106		106
Weighted average common shares		94,096		93,568
Basic EPS		0.310		0.296
Diluted EPS:
Net income allocated to common shareholders	$	29,150	$	27,697
Weighted average common shares for basic EPS		94,096		93,568
Effect of Dilutive Securities:
Stock Options		19		4
Weighted average common shares including potential dilutive shares		94,115		93,572
Diluted EPS		0.310		0.296

For the three months ended September 30, 2013 and 2012, the weighted average number of antidilutive stock options excluded from diluted earnings per share was approximately 2.1 million and 2.6 million, respectively.  For the nine months ended September 30, 2013 and 2012, the weighted average number of antidilutive stock options excluded from diluted earnings per share was approximately 2.5 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.