NI Holdings, Inc. Earnings Per Share Disclosure
21.Earnings Per Share
Earnings per share is computed by dividing net income available to common shareholders for the period by the weighted average number of common shares outstanding for the same period. The weighted average number of common shares outstanding was 21,772,475, 22,179,747, and 22,358,858 for the years ended December 31, 2020, 2019, and 2018, respectively.
Unearned ESOP shares are not considered outstanding until they are released and allocated to plan participants. Unearned RSU and PSU shares are not considered outstanding until they are earned by award participants.
The following table presents a reconciliation of the numerators and denominators we used in the basic and diluted per share computations for our common stock:
|
Year Ended December 31, | ||||||||||||
|
2020 |
2019 |
2018 | ||||||||||
|
Basic earnings per common share: | ||||||||||||
|
Numerator: | ||||||||||||
|
Net income attributable to NI Holdings |
$ |
40,389 |
$ |
26,401 |
$ |
31,081 | ||||||
|
Denominator: | ||||||||||||
|
Weighted average shares outstanding |
21,772,475 |
22,179,747 |
22,358,858 | |||||||||
|
Basic earnings per common share |
$ |
1.86 |
$ |
1.19 |
$ |
1.39 | ||||||
|
| ||||||||||||
|
Diluted earnings per common share: | ||||||||||||
|
Numerator: | ||||||||||||
|
Net income attributable to NI Holdings |
$ |
40,389 |
$ |
26,401 |
$ |
31,081 | ||||||
|
Denominator: | ||||||||||||
|
Number of shares used in basic computation |
21,772,475 |
22,179,747 |
22,358,858 | |||||||||
|
Weighted average effect of dilutive securities | ||||||||||||
|
Add: RSUs and PSUs |
169,995 |
85,601 |
26,896 | |||||||||
|
Number of shares used in diluted computation |
21,942,470 |
22,265,348 |
22,385,754 | |||||||||
|
Diluted earnings per common share |
$ |
1.84 |
$ |
1.19 |
$ |
1.39 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2020 | Mar 10, 2021 | Showing above |
| 2019 | Mar 11, 2020 | |
| 2018 | Mar 13, 2019 | |
| 2017 | Mar 7, 2018 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.