Earnings Per Share

6 Months Ended

Jun. 30, 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 and six months ended June 30, 2014 and 2013 is as follows:

(dollars in thousands, except per share data)
	2014		2013
For the three months ended June 30:
Net income	$	11,808	$	9,763
Less: Net income allocated to participating securities		13		11
Net income allocated to common shareholders	$	11,795	$	9,752
Basic EPS:
Distributed earnings allocated to common stock	$	6,213	$	6,182
Undistributed earnings allocated to common stock		5,582		3,570
Net income allocated to common shareholders	$	11,795	$	9,752
Weighted average common shares outstanding including participating securities		94,665		94,204
Less: Participating securities		106		106
Weighted average common shares		94,559		94,098
Basic EPS		0.125		0.104
Diluted EPS:
Net income allocated to common shareholders	$	11,795	$	9,752
Weighted average common shares for basic EPS		94,559		94,098
Effect of Dilutive Securities:
Stock Options		116		7
Weighted average common shares including potential dilutive shares		94,675		94,105
Diluted EPS		0.125		0.104

(dollars in thousands, except per share data)
	2014		2013
For the six months ended June 30:
Net income	$	22,819	$	18,931
Less: Net income allocated to participating securities		26		21
Net income allocated to common shareholders	$	22,793	$	18,910
Basic EPS:
Distributed earnings allocated to common stock	$	12,419	$	12,356
Undistributed earnings allocated to common stock		10,374		6,554
Net income allocated to common shareholders	$	22,793	$	18,910
Weighted average common shares outstanding including participating securities		94,642		94,134
Less: Participating securities		106		106
Weighted average common shares		94,536		94,028
Basic EPS		0.241		0.201
Diluted EPS:
Net income allocated to common shareholders	$	22,793	$	18,910
Weighted average common shares for basic EPS		94,536		94,028
Effect of Dilutive Securities:
Stock Options		122		6
Weighted average common shares including potential dilutive shares		94,658		94,034
Diluted EPS		0.241		0.201

For both the three months and six months ended June 30, 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.