EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2020

16. 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:


	Year Ended December 31,
	2020		2019		2018
	(In thousands, except per share data)
Net income (loss) attributable to FedNat Holding Company shareholders	$	(78,158)	$	1,011	$	14,928

Weighted average number of common shares outstanding - basic	13,846		12,977		12,775

Net income (loss) per common share - basic	($5.64)		$0.08		$1.17


Weighted average number of common shares outstanding - basic	13,846		12,977		12,775
Dilutive effect of stock compensation plans	—		46		92
Weighted average number of common shares outstanding - diluted	13,846		13,023		12,867

Net income (loss) per common share - diluted	$	(5.64)	$	0.08	$	1.16

Dividends per share	$	0.36	$	0.33	$	0.24

Dividends Declared

In February 2020, our Board of Directors declared a $0.09 per common share dividend, payable in March 2020, to shareholders of record on February 14, 2020. amounting to $1.3 million.

In April 2020, our Board of Directors declared a $0.09 per common share dividend, payable in June 2020, to shareholders of record on May 15, 2020, amounting to $1.3 million.

In July 2020, our Board of Directors declared a $0.09 per common share dividend, payable in September 2020, to shareholders of record on August 14, 2020, amounting to $1.2 million.

In November 2020, our Board of Directors declared a $0.09 per common share dividend, payable in December 2020, to shareholders of record on November 16, 2020, amounting to $1.3 million.