EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2016

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 outstanding unvested restricted stock awards and vested restricted stock awards. 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. 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 computations of diluted earnings per share available to common stockholders do not include approximately 0.2 million stock options and RSAs for the three months ended June 30, 2016 and 2015, respectively, and 0.2 million stock options and RSAs for the six months ended June 30, 2016 and 2015, respectively, as the effect of their inclusion would have been antidilutive to earnings per share.

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
	(in thousands, except per share data)				(in thousands, except per share data)
Net income attributable to Federated National Holding Company shareholders	$	991	$	11,734	$	10,526	$	21,018
Weighted average number of common shares outstanding - basic		13,805		13,722		13,816		13,689
Net income per share - basic	$	0.07	$	0.86	$	0.76	$	1.54

Weighted average number of common shares outstanding - basic		13,805		13,722		13,816		13,689
Dilutive effect of stock compensation plans		183		263		197		289
Weighted average number of common shares outstanding - diluted		13,988		13,985		14,013		13,978
Net income per share - diluted	$	0.07	$	0.84	$	0.75	$	1.50

Dividends per share	$	0.06	$	0.04	$	0.11	$	0.08

Dividends Declared

In February and May 2016, our Board of Directors declared a quarterly dividend payment of $0.05 and $0.06 per common share, respectively, paid in March and June 2016, respectively, amounting to $1.6 million.

In June 2016, our Board of Directors declared a $0.06 per common share dividend payable September 1, 2016 to shareholders of record on August 1, 2016.