Earnings Per Share

3 Months Ended

Mar. 31, 2014

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 ASC 260-10 (“ASC 260-10”), Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities, 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 ended March 31, 2014 and 2013 is as follows:

(dollars in thousands, except per share data)
	2014		2013
For the three months ended March 31:
Net income	$	11,011	$	9,168
Less: Net income allocated to participating securities		12		10
Net income allocated to common shareholders	$	10,999	$	9,158
Basic EPS:
Distributed earnings allocated to common stock	$	6,206	$	6,173
Undistributed earnings allocated to common stock		4,793		2,985
Net income allocated to common shareholders	$	10,999	$	9,158
Weighted average common shares outstanding including participating securities		94,558		94,068
Less: Participating securities		106		106
Weighted average common shares		94,452		93,962
Basic EPS		0.116		0.097
Diluted EPS:
Net income allocated to common shareholders	$	10,999	$	9,158
Weighted average common shares for basic EPS		94,452		93,962
Effect of Dilutive Securities:
Stock Options		129		5
Weighted average common shares including potential dilutive shares		94,581		93,967
Diluted EPS		0.116		0.097

As of March 31, 2014 and 2013, the weighted average number of antidilutive stock options excluded from diluted earnings per share was approximately 2.4 million and 2.7 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.