Earnings Per Share

12 Months Ended

Dec. 31, 2014

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 2014, 2013 and 2012 follows:

(dollars in thousands, except per share data)
	2014		2013		2012
For the years ended December 31:
Net income	$	44,193		39,812		37,534
Less: Net income allocated to participating securities		43		45		43
Net income allocated to common shareholders	$	44,150		39,767		37,491
Basic EPS:
Distributed earnings allocated to common stock	$	24,866		24,745		24,607
Undistributed earnings allocated to common stock		19,284		15,022		12,884
Net income allocated to common shareholders	$	44,150		39,767		37,491
Weighted average common shares outstanding including participating securities		94,721		94,266		93,739
Less: Participating securities		93		106		106
Weighted average common shares		94,628		94,160		93,633
Basic EPS	$	0.467		0.422		0.400
Diluted EPS:
Net income allocated to common shareholders	$	44,150		39,767		37,491
Weighted average common shares for basic EPS		94,628		94,160		93,633
Effect of Dilutive Securities:
Stock Options		125		46		4
Weighted average common shares including potential dilutive shares		94,753		94,206		93,637
Diluted EPS	$	0.466		0.422		0.400

As of December 31, 2014, 2013 and 2012, the weighted average number of antidilutive stock options excluded from diluted earnings per share was approximately 2.3 million, 2.5 million, and 2.9 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.