Earnings Per Share

The Company calculates basic net income per Class A common share based on the weighted average number of Class A common shares outstanding (inclusive of vested restricted share units). The unvested restricted share units have the non-forfeitable right to participate in dividends declared and paid on the Company’s common stock on an as vested basis and are therefore considered a participating security. The Company calculates basic earnings per share using the “two-class” method, and for the three months and nine months ended September 30, 2015, the loss from continuing operations available to common stockholders was not allocated to the unvested restricted stock units as those holders do not have a contractual obligation to share in net losses.

Diluted net income per Class A common shares for the period includes the effect of potential equity of Siena, Reliance, and Operating Company as well as potential Class A common stock, if dilutive. For the three and nine months ended September 30, 2015, the assumed exercise of all dilutive instruments were anti-dilutive, and therefore, were not included in the diluted net income per Class A common share calculation.

The following table presents a reconciliation of basic and diluted net income per common share for the following periods:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Net income (loss) from continuing operations	$	7,838		$	(6,388	)	$	22,273		$	(11,961	)
Less:
Net income (loss) from continuing operations attributable to non-controlling interests⁽¹⁾	1,933			(1,835		)	4,680			(3,706		)
Net income from continuing operations allocated to participating securities	60			—			148			—
Net income (loss) from continuing operations available to Tiptree Financial Inc. Class A common shares	5,845			(4,553		)	17,445			(8,255		)

Discontinued operations, net	—			—			—			23,348
Less:
Net income from discontinued operations attributable to non-controlling interests⁽¹⁾	—			—			—			5,663
Net income from discontinued operations attributable to Tiptree Financial Inc. Class A common shares	—			—			—			17,685

Net income (loss) attributable to Tiptree Financial Inc. Class A common shares - basic	$	5,845		$	(4,553	)	$	17,445		$	9,430
Effect of Dilutive Securities:
Securities of subsidiaries	(50		)	—			(148		)	—
Adjustments to income relating to exchangeable interests, net of tax	1,362			—			—			—
Net income (loss) attributable to Tiptree Financial Inc. Class A common shares - diluted	$	7,157		$	(4,553	)	$	17,297		$	9,430

Weighted average number of shares of Tiptree Financial Inc. Class A common stock outstanding - basic	29,143,470			33,848,463			32,845,124			32,597,774
Weighted average number of incremental shares of Tiptree Financial Inc. Class A common stock issuable from exchangeable interests	8,087,180			—			67,392			—
Weighted average number of shares of Tiptree Financial Inc. Class A common stock outstanding - diluted	37,230,650			33,848,463			32,912,516			32,597,774

Basic:
Income (loss) from continuing operations	$	0.20		$	(0.13	)	$	0.53		$	(0.25	)
Income from discontinued operations	—			—			—			0.54
Net income (loss) available to Tiptree Financial Inc. Class A common shares	$	0.20		$	(0.13	)	$	0.53		$	0.29

Diluted:
Income (loss) from continuing operations	$	0.19		$	(0.13	)	$	0.53		$	(0.25	)
Income from discontinued operations	—			—			—			0.54
Net income (loss) attributable to Tiptree Financial Inc. Class A common shares	$	0.19		$	(0.13	)	$	0.53		$	0.29

(1)

For the three months ended September 30, 2016, the total net income (loss) attributable to non-controlling interest was $1,933, comprised of $1,933 due to continuing operations and $0 attributable to discontinued operations. For the three months ended September 30, 2015, the total net income(loss) attributable to non-controlling interest was $(1,835), comprised of $(1,835) due to continuing operations and $0 attributable to discontinued operations.

For the nine months ended September 30, 2016, the total net income (loss) attributable to non-controlling interest was $4,680, comprised of $4,680 due to continuing operations and $0 attributable to discontinued operations. For the nine months ended September 30, 2015, the total net income (loss) attributable to non-controlling interest was $1,957, comprised of $(3,706) due to continuing operations and $5,663 attributable to discontinued operations.