Earnings Per Share

12 Months Ended

Dec. 31, 2013

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 2013, 2012 and 2011 follows:

(dollars in thousands, except per share data)

	2013		2012		2011
For the years ended December 31:
Net income	$	39,812		37,534		33,087
Less: Net income allocated to participating securities		45		43		5
Net income allocated to common shareholders	$	39,767		37,491		33,082
Basic EPS:
Distributed earnings allocated to common stock	$	24,745		24,607		22,389
Undistributed earnings allocated to common stock		15,022		12,884		10,693
Net income allocated to common shareholders	$	39,767		37,491		33,082
Weighted average common shares outstanding including participating securities		94,266		93,739		85,086
Less: Participating securities		106		106		14
Weighted average common shares		94,160		93,633		85,072
Basic EPS	$	0.422		0.400		0.389
Diluted EPS:
Net income allocated to common shareholders	$	39,767		37,491		33,082
Weighted average common shares for basic EPS		94,160		93,633		85,072
Effect of Dilutive Securities:
Stock Options		46		4		-
Weighted average common shares including potential dilutive shares		94,206		93,637		85,072
Diluted EPS	$	0.422		0.400		0.389

As of December 31, 2013, 2012 and 2011, the weighted average number of antidilutive stock options excluded from diluted earnings per share was approximately 2.5 million, 2.9 million, and 2.8 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.