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 because they are eligible to receive dividends. 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 Subsidiary warrants held by TFP as part of the Contribution Transactions as summarized in Note 1. 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, 2013 and 2012:



	Three Months Ended				Nine Months Ended
	September 30, 2013		September 30, 2012		September 30, 2013		September 30, 2012
	(in thousands, except shares and per share data)
Basic:
Net income	$	1,830	$	3,089	$	6,563	$	6,508

Weighted average number of Class A common shares outstanding (basic)	10,246,176		10,217,648		10,243,893		10,206,020
Basic earnings per share	$	0.18	$	0.30	$	0.64	$	0.63
Diluted:
Net income	$	1,806	$	3,089	$	6,543	$	6,508

Weighted average number of common Class A shares outstanding	10,246,176		10,217,648		10,243,893		10,206,020
Effect of common stock equivalents:
Restricted stock units	25,361		19,864		22,271		19,734
Weighted average Class A common shares outstanding (diluted)	10,271,537		10,237,512		10,266,164		10,225,754
Diluted earnings per share	$	0.18	$	0.30	$	0.64	$	0.63

As of the three and nine month periods ending September 30, 2013 and 2012 there were no weighted average shares that were anti-dilutive.