Earnings Per Share

9 Months Ended

Sep. 30, 2015

(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 dividend 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 received nonforfeitable dividend payments. These awards vested in November 2014 and as of September 30, 2015, the Company no longer has unvested restricted stock awards that were previously considered participating securities. As of September 30, 2015, there are no other awards that are considered participating securities.

A reconciliation of the component parts of earnings per share for the three months and nine months ended September 30, 2015 and 2014 is as follows:

(In thousands except per share data)	For the three months ended September 30:				For the nine months ended September 30:
	2015		2014		2015		2014
Net income	$	10,616		10,714	$	32,058		33,533
Less: Net income allocated to participating securities		-		12		-		38
Net income allocated to common shareholders	$	10,616		10,702	$	32,058		33,495
Basic EPS:
Distributed earnings allocated to common stock	$	6,244		6,220	$	18,710		18,639
Undistributed earnings allocated to common stock		4,372		4,482		13,348		14,856
Net income allocated to common shareholders	$	10,616		10,702	$	32,058		33,495
Weighted average common shares outstanding including participating securities		95,149		94,734		95,051		94,668
Less: Participating securities		-		106		-		106
Weighted average common shares		95,149		94,628		95,051		94,562
Basic EPS	$	0.112		0.113	$	0.337		0.354
Diluted EPS:
Net income allocated to common shareholders	$	10,616		10,702	$	32,058		33,495
Weighted average common shares for basic EPS		95,149		94,628		95,051		94,562
Effect of Dilutive Securities:
Stock Options		85		124		116		123
Weighted average common shares including potential dilutive shares		95,234		94,752		95,167		94,685
Diluted EPS	$	0.111		0.113	$	0.337		0.354

For both the three and nine months ended September 30, 2015, the weighted average number of antidilutive stock options excluded from diluted earnings per share was approximately 1.4 million. For both the three and nine months ended September 30, 2014 the weighted average number of antidilutive stock options excluded from diluted earnings per share was approximately 2.4 million. 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.