EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2019

12. 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						Nine Months Ended
	September 30,						September 30,
	2019		2018		2019		2018
	(In thousands, except per share data)
Net income (loss) attributable to FedNat Holding Company shareholders	$	4,659	$	7,950	$	7,904	$	24,233

Weighted average number of common shares outstanding - basic	12,854		12,749		12,831		12,775

Net income (loss) per common share - basic	$	0.36	$	0.62	$	0.62	$	1.90


Weighted average number of common shares outstanding - basic	12,854		12,749		12,831		12,775
Dilutive effect of stock compensation plans	43		121		49		91
Weighted average number of common shares outstanding - diluted	12,897		12,870		12,880		12,866

Net income (loss) per common share - diluted	$	0.36	$	0.62	$	0.61	$	1.88

Dividends per share	$	0.08	$	—	$	0.24	$	0.16

Dividends Declared

In January 2019, our Board of Directors declared a $0.08 per common share dividend, payable in March 2019, to shareholders of record on February 14, 2019, amounting to $1.0 million.

In May 2019, our Board of Directors declared a $0.08 per common share dividend, payable in June 2019, to shareholders of record on May 14, 2019, amounting to $1.1 million.

In July 2019, our Board of Directors declared a $0.08 per common share dividend, payable in September 2019, to shareholders of record on August 16, 2019, amounting to $1.0 million.

In November 2019, our Board of Directors declared a $0.09 per common share dividend, payable in December 2019, to shareholders of record on November 15, 2019, amounting to $1.2 million.