EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2021

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
	March 31,
	2021		2020
	(In thousands, except per share data)
Net income (loss) attributable to FedNat Holding Company shareholders	$	(19,381)	$	2,133

Weighted average number of common shares outstanding - basic	14,395		14,249

Net income (loss) per common share - basic	$	(1.35)	$	0.15


Weighted average number of common shares outstanding - basic	14,395		14,249
Dilutive effect of stock compensation plans	—		63
Weighted average number of common shares outstanding - diluted	14,395		14,312

Net income (loss) per common share - diluted	$	(1.35)	$	0.15

Dividends per share	$	—	$	0.09