Earnings Per Share

3 Months Ended

Mar. 31, 2015

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.  These awards were settled in 2014 and as of March 31, 2015, the Company no longer has unvested restricted stock awards that were previously considered participating securities.

A reconciliation of the component parts of earnings per share for the three months ended March 31, 2015 and 2014 is as follows:

(dollars in thousands, except per share data)
	2015		2014
For the three months ended
March 31:
Net income	$	10,715		11,011
Less: Net income allocated to participating securities		-		12
Net income allocated to common shareholders	$	10,715		10,999
Basic EPS:
Distributed earnings allocated to common stock	$	6,228		6,206
Undistributed earnings allocated to common stock		4,487		4,793
Net income allocated to common shareholders	$	10,715		10,999
Weighted average common shares outstanding including participating securities		94,947		94,558
Less: Participating securities		-		106
Weighted average common shares		94,947		94,452
Basic EPS	$	0.113		0.116
Diluted EPS:
Net income allocated to common shareholders	$	10,715		10,999
Weighted average common shares for basic EPS		94,947		94,452
Effect of Dilutive Securities:
Stock Options		127		129
Weighted average common shares including potential dilutive shares		95,074		94,581
Diluted EPS	$	0.113		0.116

For the three months ended March 31, 2015 and 2014, the weighted average number of antidilutive stock options excluded from diluted earnings per share was approximately 1.4 million and 2.4 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.