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 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				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
	(In thousands, except per share data)
Net income (loss) attributable to FedNat Holding Company shareholders	$	8,820	$	3,995	$	16,283	$	6,417

Weighted average number of common shares outstanding - basic	12,726		13,171		12,788		13,305

Net income (loss) per common share - basic	$	0.69	$	0.30	$	1.27	$	0.48


Weighted average number of common shares outstanding - basic	12,726		13,171		12,788		13,305
Dilutive effect of stock compensation plans	120		85		101		100
Weighted average number of common shares outstanding - diluted	12,846		13,256		12,889		13,405

Net income (loss) per common share - diluted	$	0.69	$	0.30	$	1.26	$	0.48

Dividends per share	$	0.08	$	0.08	$	0.16	$	0.16

Dividends Declared

In February 2018, our Board of Directors declared a $0.08 per common share dividend, paid in June 2018, to shareholders of record on May 1, 2018, amounting to $1.0 million.

In June 2018, our Board of Directors declared a $0.08 per common share dividend, payable in September 2018, to shareholders of record on August 1, 2018, amounting to $1.0 million.