EARNINGS PER SHARE

6 Months Ended

Jun. 30, 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, after adding back the after-tax interest expense on our 2026 Notes, by the weighted average number of shares outstanding, noted above, adjusted for the dilutive effect of our 2026 Notes, 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 conversion into shares of the Company’s common stock for our 2026 Notes, 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				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
	(In thousands, except per share data)
Net income (loss) attributable to FedNat Holding Company shareholders	$	(50,369)	$	(21,479)	$	(69,750)	$	(19,346)

Weighted average number of common shares outstanding - basic	17,411		13,714		15,901		13,981

Net income (loss) per common share - basic	$	(2.89)	$	(1.57)	$	(4.39)	$	(1.38)


Weighted average number of common shares outstanding - basic	17,411		13,714		15,901		13,981
Dilutive effect of stock compensation plans	—		—		—		—
Weighted average number of common shares outstanding - diluted	17,411		13,714		15,901		13,981

Net income (loss) per common share - diluted	$	(2.89)	$	(1.57)	$	(4.39)	$	(1.38)

Dividends per share	$	—	$	0.09	$	—	$	0.18

For the three and six months ended June 30, 2021, we excluded (in thousands) dilutive shares of 2,813 and 1,426 from our weighted average number of common shares outstanding - diluted above because their inclusion would have been antidilutive.