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Earnings Per Share
 9 Months Ended
Sep. 30, 2014
Earnings Per Share [Abstract]  
Earnings Per Share
Earnings Per Share
The Company calculates basic net income per common share based on the Company’s common stock outstanding as well as its unvested restricted share units. The unvested restricted share units are included in the basic earnings per share calculation using the two class method because they are eligible to receive dividends. Under the two class method income is allocated to the class of securities prior to the calculation of earnings per share. A diluted net income for the period takes into account the effect of dilutive instruments, such as any options on common shares, but uses the average share price for the period in determining the number of incremental shares that are to be added to the weighted average number of common shares outstanding. Diluted net income also includes the minimal dilutive impact of the 3,609,420 Operating Company warrants held by TFP as part of the Contribution Transactions as summarized in Note 14. Earnings per share data excludes Tiptree’s Class B common stock, as the Class B common stock evidences a voting right without any economic interest.
The following table presents a reconciliation of basic and diluted net income per common share for the three and nine month periods ended September 30, 2014 and 2013:
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
 
2014
 
2013
 
2014
 
2013
Basic:
 
 
 
 
 
 
 
 
Net income
 
$
272

 
$
1,830

 
$
2,368

 
$
6,563

 
 
 
 
 
 
 
 
 
Weighted average number of Class A common shares outstanding (basic)
 
17,449,974

 
10,246,176

 
12,909,949

 
10,243,893

Basic earnings per share
 
$
0.02

 
$
0.18


$
0.18


$
0.64

Diluted:
 
 
 
 
 
 
 
 
Net income
 
$
259

 
$
1,806

 
$
2,344

 
$
6,543

 
 
 
 
 
 
 
 
 
Weighted average number Class A common shares outstanding (diluted)
 
17,449,974


10,271,537


12,909,949


10,266,164

Diluted earnings per share
 
$
0.01

 
$
0.18

 
$
0.18

 
$
0.64


The above table excludes the effect of the 2008 warrant convertible into 652,500 shares because the exercise price of $11.33 was greater than the average market price during such periods.