EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2018

11. EARNINGS PER SHARE

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the period, including vested restricted stock awards during the period. Diluted EPS is computed by dividing net income by the weighted average number of shares outstanding, noted above, adjusted for the dilutive effect of stock options and unvested restricted stock awards. Dilutive securities are common stock equivalents that are freely exercisable into common stock at less than market prices or otherwise dilute earnings if converted. The net effect of common stock equivalents is based on the incremental common stock that would be issued upon the assumed exercise of common stock options and the vesting of RSAs using the treasury stock method. Common stock equivalents are not included in diluted earnings per share when their inclusion is antidilutive.

The following table presents the calculation of basic and diluted EPS:



	Three Months Ended
	March 31,
	2018		2017
	(in thousands, except per share data)
Net income attributable to Federated National Holding Company shareholders	$	7,463	$	2,422

Weighted average number of common shares outstanding - basic	12,850		13,432
Net income per share - basic	$	0.58	$	0.18


Weighted average number of common shares outstanding - basic	12,850		13,432
Dilutive effect of stock compensation plans	95		127
Weighted average number of common shares outstanding - diluted	12,945		13,559
Net income per share - diluted	$	0.58	$	0.18

Dividends per share	$	0.08	$	0.08

Dividends Declared

In February 2018, our Board of Directors declared a $0.08 per common share dividend, payable in June 2018, to shareholders of record on May 1, 2018, amounting to $1.0 million.