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Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2013
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Change in component of other comprehensive income related to retirement plan and post-retirement benefit plan
The following table details the change in the components of other comprehensive income related to the retirement plan and the post-retirement benefit plan, at December 31, 2013 and 2012, respectively:

(dollars in thousands)
 
 
 
 
December 31, 2013
 
 
 
  
Post-
  
 
 
 
Retirement
  
Retirement
  
 
 
 
Plan
  
Benefit Plan
  
Total
 
 
 
  
  
 
 
  
  
 
Change in overfunded position of pension and postretirement benefits
 
$
(8,156
)
  
(2,403
)
  
(10,559
)
Amortization of net actuarial gain (loss)
  
(516
)
  
49
   
(467
)
Amortization of
            
prior service credit
  
-
   
262
   
262
 
Total
 
$
(8,672
)
  
(2,092
)
  
(10,764
)

 
 
December 31, 2012
 
 
 
  
Post-
  
 
 
 
Retirement
  
Retirement
  
 
 
 
Plan
  
Benefit Plan
  
Total
 
 
 
  
  
 
 
 
  
  
 
Change in overfunded position of pension and postretirement benefits
 
$
1,834
   
(590
)
  
1,244
 
 
            
Amortization of net actuarial gain (loss)
  
(335
)
  
29
   
(306
)
 
            
Amortization of prior service credit
  
-
   
262
   
262
 
Total
 
$
1,499
   
(299
)
  
1,200
 
Asset allocation of pension and postretirement benefit plans
The asset allocations of the Company’s pension and postretirement benefit plans at December 31, were as follows:
 
 
 
Pension Benefit
  
Postretirement Benefit
 
 
 
Plan Assets
  
Plan Assets
 
 
 
2013
  
2012
  
2013
  
2012
 
Debt Securities
  
26
%
  
29
   
27
   
28
 
Equity Securities
  
69
   
65
   
68
   
64
 
Other
  
5
   
6
   
5
   
8
 
Total
  
100
%
  
100
   
100
   
100
 
Fair value of plan assets by type of financial instrument and level hierarchy
The fair value of the plan assets at December 31, 2013 and 2012, by asset category, is as follows:
 
Retirement Plan
 
  
Fair Value Measurements at
  
 
 
 
  
December 31, 2013 Using:
  
 
 
 
  
  
Significant
  
 
 
 
  
Quoted Prices in
  
Other
  
Significant
 
 
 
  
Active Markets for
  
Observable
  
Unobservable
 
 
 
Carrying
  
Identical Assets
  
Inputs
  
Inputs
 
 
 
Value
  
(Level 1)
  
(Level 2)
  
(Level 3)
 
(Dollars in thousands)
 
  
  
  
 
Plan Assets
 
  
  
  
 
 
 
  
  
  
 
Cash and cash equivalents
 
$
1,916
   
1,916
   
-
   
-
 
Equity mutual funds
  
27,296
   
27,296
   
-
   
-
 
U.S. government sponsored enterprises
  
5,091
   
-
   
5,091
   
-
 
Corporate bonds
  
4,517
   
-
   
4,517
   
-
 
Fixed income mutual funds
  
599
   
599
   
-
   
-
 
 
                
Total Plan Assets
 
$
39,419
   
29,811
   
9,608
   
-
 

Postretirement Benefits
 
  
Fair Value Measurements at
  
 
 
 
  
December 31, 2013 Using:
  
 
 
 
  
  
Significant
  
 
 
 
  
Quoted Prices in
  
Other
  
Significant
 
 
 
  
Active Markets for
  
Observable
  
Unobservable
 
 
 
Carrying
  
Identical Assets
  
Inputs
  
Inputs
 
 
 
Value
  
(Level 1)
  
(Level 2)
  
(Level 3)
 
(Dollars in thousands)
 
  
  
  
 
Plan Assets
 
  
  
  
 
 
 
  
  
  
 
Cash and cash equivalents
 
$
950
   
950
   
-
   
-
 
Equity mutual funds
  
12,135
   
12,135
   
-
   
-
 
U.S. government sponsored enterprises
  
1,020
   
-
   
1,020
   
-
 
Corporate bonds
  
449
   
-
   
449
   
-
 
State and political subdivisions
  
3,381
   
-
   
3,381
   
-
 
 
                
Total Plan Assets
 
$
17,935
   
13,085
   
4,850
   
-
 
 
Retirement Plan
 
  
Fair Value Measurements at
  
 
 
 
  
December 31, 2012 Using:
  
 
 
 
  
  
Significant
  
 
 
 
  
Quoted Prices in
  
Other
  
Significant
 
 
 
  
Active Markets for
  
Observable
  
Unobservable
 
 
 
Carrying
  
Identical Assets
  
Inputs
  
Inputs
 
 
 
Value
  
(Level 1)
  
(Level 2)
  
(Level 3)
 
(Dollars in thousands)
 
  
  
  
 
Plan Assets
 
  
  
  
 
 
 
  
  
  
 
Cash and cash equivalents
 
$
2,114
   
2,114
   
-
   
-
 
Equity mutual funds
  
22,599
   
22,599
   
-
   
-
 
U.S. government sponsored enterprises
  
4,574
   
-
   
4,574
   
-
 
Corporate bonds
  
4,626
   
-
   
4,626
   
-
 
Fixed income mutual funds
  
671
   
671
   
-
   
-
 
 
                
Total Plan Assets
 
$
34,584
   
25,384
   
9,200
   
-
 

Postretirement Benefits
 
  
Fair Value Measurements at
  
 
 
 
  
December 31, 2012 Using:
  
 
 
 
  
  
Significant
  
 
 
 
  
Quoted Prices in
  
Other
  
Significant
 
 
 
  
Active Markets for
  
Observable
  
Unobservable
 
 
 
Carrying
  
Identical Assets
  
Inputs
  
Inputs
 
 
 
Value
  
(Level 1)
  
(Level 2)
  
(Level 3)
 
(Dollars in thousands)
 
  
  
  
 
Plan Assets
 
  
  
  
 
 
 
  
  
  
 
Cash and cash equivalents
 
$
1,148
   
1,148
   
-
   
-
 
Equity mutual funds
  
9,718
   
9,718
   
-
   
-
 
State and political subdivisions
  
4,160
   
-
   
4,160
   
-
 
 
                
Total Plan Assets
 
$
15,026
   
10,866
   
4,160
   
-
 
Summary of the status of stock option plans
Under each of these plans, the exercise price of each option equals the fair value of the Company’s stock on the date of grant, and an option’s maximum term is ten years. Options vest over five years from the date the options are granted for the employees plans and they are immediately vested under the directors’ plans. A summary of the status of TrustCo’s stock option plans as of December 31, 2013 and changes during the year then ended, are as follows:
 
 
 
Outstanding Options
 
Exercisable Options
 
 
  
 
Weighted
 
  
 
Weighted
 
 
  
Weighted
 
Average
 
  
Weighted
 
Average
 
 
  
Average
 
Remaining
 
  
Average
 
Remaining
 
 
  
Exercise
 
Contractual
 
  
Exercise
 
Contractual
 
 
Shares
  
Price
 
Life
 
Shares
  
Price
 
Life
Balance, January 1, 2013
  
2,892,000
  
$
9.58
 
 
  
2,144,600
  
$
11.01
 
 
New options awarded-2013
  
281,500
   
7.05
 
 
  
-
   
0.00
 
 
Expired options - 2013
  
-
   
0.00
 
 
  
-
   
0.00
 
 
Cancelled options-2013
  
-
   
0.00
 
 
  
-
   
0.00
 
 
Exercised options - 2013
  
(14,700
)
  
5.15
 
 
  
(14,700
)
  
5.15
 
 
Options became exercisable
  
-
   
0.00
 
 
  
234,600
   
6.25
 
 
Balance, December 31, 2013
  
3,158,800
  
$
9.54
 
5.1 years
  
2,364,500
  
$
10.78
 
3.4 years
Assumptions used to determine the fair value of options granted
Valuation of Stock-Based Compensation: The fair value of the Company’s employee and director stock options granted is estimated on the measurement date, which, for the Company, is the date of grant. The weighted-average fair value of stock options granted during 2013, 2012 and 2011 estimated using the Black-Scholes option pricing model, was $1.08, $0.76 and $0.98, respectively. The Company estimated expected market price volatility and the expected term of the options based on historical data and other factors. The assumptions used to determine the fair value of options granted during 2013, 2012 and 2011 are detailed in the table below:

 
2013
 
2012
 
 
Employees'
 
Employees'
 
 
Plan
 
Plan
 
Expected dividend yield
  
3.72
%
  
5.08
 
Risk-free interest rate
  
1.45
   
0.80
 
Expected volatility rate
  
25.83
   
30.18
 
Expected lives
  
5.0 years
   
5.0 years
 

 
 
2011
 
 
 
Employees'
  
Directors'
 
 
 
Plan
  
Plan
 
Expected dividend yield
  
5.11
%
  
5.11
 
Risk-free interest rate
  
1.90
   
1.59
 
Expected volatility rate
  
26.64
   
28.50
 
Expected lives
  
7.5 years
   
6.0 years
 
Restricted common shares
The 2013 activity for the restricted common shares was as follows:
 
 
Restricted common shares
 
  
 
 
 
   
Weighted
 
 
 
  
Average
 
 
 
Shares
  
Price
 
 
 
  
 
 
 
  
 
Balance, December 31, 2012
  
106,000
  
$
5.14
 
New awards granted
  
-
   
0.00
 
Awards became vested
  
-
   
0.00
 
Balance, December 31, 2013
  
106,000
  
$
5.14
 
Restricted share units
 The activity for service based awards during 2013 was as follows:
 
Restricted share units
 
 
 
 
   
Weighted
 
 
 
  
Average
 
 
 
Units
  
Price
 
 
 
  
 
 
 
  
 
Balance, December 31, 2012
  
82,500
  
$
5.17
 
New awards granted
  
51,250
   
7.05
 
Awards became vested
  
-
   
0.00
 
Balance, December 31, 2013
  
133,750
  
$
5.89
 
Performance share units
The activity for performance based awards during 2013 was as follows:
 
Performance share units

 
 
 
   
Weighted
 
 
 
  
Average
 
 
 
Units
  
Price
 
 
 
  
 
 
 
  
 
Balance, December 31, 2012
  
65,000
  
$
5.17
 
New awards granted
  
81,500
   
7.05
 
Awards became vested
  
-
   
0.00
 
Balance, December 31, 2013
  
146,500
  
$
6.22
 
Retirement Plan [Member]
  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Change in projected/accumulated benefit obligation
The Company maintains a trusteed non-contributory pension plan covering employees that have completed one year of employment and 1,000 hours of service. The benefits are based on the sum of (a) a benefit equal to a prior service benefit plus the average of the employees’ highest five consecutive years’ compensation in the ten years preceding retirement multiplied by a percentage of service after a specified date plus (b) a benefit based upon career average compensation. The amounts contributed to the plan are determined annually on the basis of (a) the maximum amount that can be deducted for federal income tax purposes or (b) the amount certified by a consulting actuary as necessary to avoid an accumulated funding deficiency as defined by the Employee Retirement Income Security Act of 1974. Contributions are intended to provide for benefits attributed to service to date. Assets of the plan are administered by Trustco Bank’s Financial Services Department. This plan was frozen as of December 31, 2006. The following tables set forth the plan’s funded (unfunded) status and amounts recognized in the Company’s consolidated statements of condition at December 31, 2013 and 2012.

Change in Projected Benefit Obligation:
 
December 31,
 
(dollars in thousands)
 
2013
  
2012
 
Projected benefit obligation at beginning of year
 
$
31,990
   
29,283
 
Service cost
  
69
   
55
 
Interest cost
  
1,273
   
1,426
 
Benefits paid
  
(2,045
)
  
(2,036
)
Net actuarial loss (gain)
  
(3,465
)
  
3,262
 
 
        
Projected benefit obligation at end of year
 
$
27,822
   
31,990
 
Change in plan assets and reconciliation of funded status
 
Change in Plan Assets and Reconciliation of Funded Status:
 
December 31,
 
(dollars in thousands)
  
2013
   
2012
 
 
        
Fair Value of plan assets at beginning of year
 
$
34,584
   
30,278
 
Actual gain on plan assets
  
6,880
   
3,342
 
Company contributions
  
-
   
3,000
 
Benefits paid
  
(2,045
)
  
(2,036
)
Fair value of plan assets at end of year
  
39,419
   
34,584
 
 
        
Funded status at end of year
 
$
11,597
   
2,593
 
Amounts recognized in accumulated other comprehensive income
Amounts recognized in accumulated other comprehensive income consist of the following as of:

 
 
December 31,
 
 
 
2013
  
2012
 
Net actuarial loss
 
$
813
     
9,486
 
Components of net periodic pension inome and other amounts recognized in other comprehensive income
Components of Net Periodic Pension Income and Other Amounts Recognized in Other Comprehensive Income:
(dollars in thousands)
 
For the years ended
 
 
 
December 31,
 
 
 
2013
  
2012
  
2011
 
Service cost
 
$
69
   
55
   
45
 
Interest cost
  
1,273
   
1,426
   
1,515
 
Expected return on plan assets
  
(2,190
)
  
(1,912
)
  
(1,985
)
Amortization of net actuarial loss
  
516
   
335
   
156
 
Net periodic pension income
  
(332
)
  
(96
)
  
(269
)
 
            
Amortization of net actuarial loss
  
(516
)
  
(335
)
  
(156
)
 
            
 
            
Net actuarial (gain) / loss included in other comprehensive income
  
(8,156
)
  
1,834
   
3,689
 
 
            
 
  
(8,672
)
  
1,499
   
3,533
 
 
            
 
            
Total recognized in net periodic pension income and other comprehensive income
 
$
(9,004
)
  
1,401
   
3,264
 
Estimated future benefit payments
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:

(dollars in thousands)
 
 
Year
 
 
 
Pension Benefits
 
2014
 
$
1,698
 
2015
  
1,720
 
2016
  
1,750
 
2017
  
1,757
 
2018
  
1,780
 
2019 - 2023
  
9,141
 
Assumptions used to determine benefit obligation and net periodic expense
The assumptions used to determine benefit obligations at December 31 are as follows:

 
 
2013
  
2012
  
2011
 
Discount rate
  
5.08
%
  
4.07
   
5.17
 


The assumptions used to determine net periodic pension expense for the years ended December 31 are as follows:

 
 
2013
  
2012
  
2011
 
Discount rate
  
4.07
%
  
5.17
   
5.62
 
 
            
Expected long-term rate of return on assets
  
6.50
   
6.50
   
6.50
 
Post-Retirement Benefits Plan [Member]
  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Change in projected/accumulated benefit obligation
The following tables show the plan’s funded status and amounts recognized in the Company’s Consolidated Statements of Condition at December 31, 2013 and 2012:

Change in Accumulated Benefit Obligation:
 
December 31,
 
(dollars in thousands)
 
2013
  
2012
 
Accumulated benefit obligation at beginning of year
 
$
2,413
   
2,008
 
Service cost
  
50
   
33
 
Interest cost
  
101
   
97
 
Plan amendments
  
465
   
-
 
Benefits paid
  
(60
)
  
(48
)
Net actuarial (gain) loss
  
(456
)
  
323
 
Accumulated benefit obligation at end of year
 
$
2,513
   
2,413
 
Change in plan assets and reconciliation of funded status
The $465 thousand plan amendment included in the above table is due to an additional executive becoming eligible for postretirement medical benefits during 2013.

Change in Plan Assets and Reconciliation of Funded Status:
 
December 31,
 
(dollars in thousands)
 
2013
  
2012
 
 
 
  
 
Fair value of plan assets at beginning of year
 
$
15,026
   
13,662
 
Actual gain on plan assets
  
2,909
   
1,364
 
Company contributions
  
60
   
48
 
Benefits paid
  
(60
)
  
(48
)
Fair value of plan assets at end of year
  
17,935
   
15,026
 
Funded status at end of year
 
$
15,422
   
12,613
 
Amounts recognized in accumulated other comprehensive income
 
 
 
December 31,
 
Amounts recognized in accumulated other comprehensive income consist of the following as of:
 
2013
  
2012
 
Net actuarial gain
 
$
(4,945
)
  
(2,125
)
Prior service credit
  
(2,979
)
  
(3,706
)
Total
 
$
(7,924
)
  
(5,831
)
Components of net periodic pension inome and other amounts recognized in other comprehensive income
Components of Net Periodic Benefit Income and Other Amounts Recognized in Other Comprehensive Income:
 
 
 
For the years ended
 
 
 
December 31,
 
(dollars in thousands)
 
2013
  
2012
  
2011
 
Service cost
 
$
50
   
33
   
26
 
Interest cost
  
101
   
97
   
98
 
Expected return on plan assets
  
(495
)
  
(451
)
  
(447
)
Amortization of net actuarial gain
  
(49
)
  
(29
)
  
(71
)
Amortization of prior service credit
  
(262
)
  
(262
)
  
(262
)
Net periodic benefit income
  
(655
)
  
(612
)
  
(656
)
 
            
Net (gain) loss
  
(2,868
)
  
(590
)
  
531
 
Prior service cost
  
465
   
-
   
533
 
Amortization of prior service credit
  
262
   
262
   
262
 
Amortization of net actuarial gain
  
49
   
29
   
71
 
Total amount recognized in other comprehensive income
  
(2,092
)
  
(299
)
  
1,397
 
 
            
 
            
Total amount recognized in net periodic benefit income and other comprehensive income
 
$
(2,747
)
  
(911
)
  
741
 
Estimated future benefit payments
The following benefit payments are expected to be paid:

Year
 
Postretirement Benefits
 
 
 
 
2014
 
$
56
 
2015
  
59
 
2016
  
62
 
2017
  
65
 
2018
  
70
 
2019 - 2023
  
510
 
Assumptions used to determine benefit obligation and net periodic expense
The discount rate assumption used to determine benefit obligations at December 31 is as follows:

 
 
2013
  
2012
  
2011
 
Discount rate
  
5.08
%
  
4.07
   
5.17
 

The assumptions used to determine net periodic pension benefit (credit) for the years ended December 31 are as follows:
 
 
2013
  
2012
  
2011
 
Discount rate
  
4.07
%
  
5.17
   
5.62
 
Expected long-term rate of return on assets, net of tax
  
3.30
   
3.30
   
3.30