TOTAL EQUITY

9 Months Ended

Sep. 30, 2019

TOTAL EQUITY.

Total Equity

NOTE 13—TOTAL EQUITY

A summary of changes in total equity for the three and nine months ended September 30, 2019 and 2018 is presented below:

	For the three and nine months ended September 30, 2019
		Stockholders' Equity
	Common Stock							Retained		Noncontrolling		Total
(in thousands)	Shares	Amount		APIC		AOCI		Earnings		Interests		Equity
Balance at December 31, 2018	29,497	$	295	$	235,152	$	(75)	$	666,752	$	5,068	$	907,192
Cumulative-effect adjustment for adoption of ASU 2016-02	—		—		—		—		(1,002)		—		(1,002)
Walker & Dunlop net income	—		—		—		—		44,218		—		44,218
Net income (loss) from noncontrolling interests	—		—		—		—		—		(158)		(158)
Other comprehensive income (loss), net of tax	—		—		—		301		—		—		301
Stock-based compensation - equity classified	—		—		6,812		—		—		—		6,812
Issuance of common stock in connection with equity compensation plans	935		9		4,178		—		—		—		4,187
Repurchase and retirement of common stock	(459)		(4)		(22,400)		—		(1,755)		—		(24,159)
Cash dividends paid ($0.30 per common share)	—		—		—		—		(9,319)		—		(9,319)
Balance at March 31, 2019	29,973	$	300	$	223,742	$	226	$	698,894	$	4,910	$	928,072
Walker & Dunlop net income	—		—		—		—		42,196		—		42,196
Net income (loss) from noncontrolling interests	—		—		—		—		—		(50)		(50)
Other comprehensive income (loss), net of tax	—		—		—		666		—		—		666
Stock-based compensation - equity classified	—		—		4,417		—		—		—		4,417
Issuance of common stock in connection with equity compensation plans	24		1		—		—		—		—		1
Repurchase and retirement of common stock	(33)		(1)		(538)		—		(1,217)		—		(1,756)
Cash dividends paid ($0.30 per common share)	—		—		—		—		(9,311)		—		(9,311)
Balance at June 30, 2019	29,964	$	300	$	227,621	$	892	$	730,562	$	4,860	$	964,235
Walker & Dunlop net income	—		—		—		—		44,043		—		44,043
Net income (loss) from noncontrolling interests	—		—		—		—		—		26		26
Contributions from noncontrolling interests	—		—		—		—		—		1,549		1,549
Other comprehensive income (loss), net of tax	—		—		—		123		—		—		123
Stock-based compensation - equity classified	—		—		5,242		—		—		—		5,242
Issuance of common stock in connection with equity compensation plans	68		1		265		—		—		—		266
Repurchase and retirement of common stock	(75)		(1)		(1,831)		—		(2,104)		—		(3,936)
Cash dividends paid ($0.30 per common share)	—		—		—		—		(9,306)		—		(9,306)
Balance at September 30, 2019	29,957	$	300	$	231,297	$	1,015	$	763,195	$	6,435	$	1,002,242

	For the three and nine months ended September 30, 2018
		Stockholders' Equity
	Common Stock							Retained		Noncontrolling		Total
(in thousands)	Shares	Amount		APIC		AOCI		Earnings		Interests		Equity
Balance at December 31, 2017	30,016	$	300	$	229,080	$	93	$	579,943	$	5,565	$	814,981
Walker & Dunlop net income	—		—		—		—		36,861		—		36,861
Net income (loss) from noncontrolling interests	—		—		—		—		—		(154)		(154)
Other comprehensive income (loss), net of tax	—		—		—		(127)		—		—		(127)
Stock-based compensation - equity classified	—		—		5,093		—		—		—		5,093
Issuance of common stock in connection with equity compensation plans	567		5		4,846		—		—		—		4,851
Repurchase and retirement of common stock	(435)		(4)		(12,687)		—		(8,709)		—		(21,400)
Cash dividends paid ($0.25 per common share)	—		—		—		—		(7,838)		—		(7,838)
Balance at March 31, 2018	30,148	$	301	$	226,332	$	(34)	$	600,257	$	5,411	$	832,267
Walker & Dunlop net income	—		—		—		—		41,112		—		41,112
Net income (loss) from noncontrolling interests	—		—		—		—		—		(79)		(79)
Other comprehensive income (loss), net of tax	—		—		—		(53)		—		—		(53)
Stock-based compensation - equity classified	—		—		5,076		—		—		—		5,076
Issuance of common stock in connection with equity compensation plans	242		3		3,156		—		—		—		3,159
Cash dividends paid ($0.25 per common share)	—		—		—		—		(7,861)		—		(7,861)
Balance at June 30, 2018	30,390	$	304	$	234,564	$	(87)	$	633,508	$	5,332	$	873,621
Walker & Dunlop net income	—		—		—		—		37,716		—		37,716
Net income (loss) from noncontrolling interests	—		—		—		—		—		41		41
Other comprehensive income (loss), net of tax	—		—		—		16		—		—		16
Stock-based compensation - equity classified	—		—		7,319		—		—		—		7,319
Issuance of common stock in connection with equity compensation plans	104		1		928		—		—		—		929
Repurchase and retirement of common stock	(97)		(1)		(2,090)		—		(3,221)		—		(5,312)
Cash dividends paid ($0.25 per common share)	—		—		—		—		(7,901)		—		(7,901)
Balance at September 30, 2018	30,397	$	304	$	240,721	$	(71)	$	660,102	$	5,373	$	906,429

During the first quarter of 2019, the Company repurchased under a 2018 share repurchase program 55 thousand shares of its common stock at a weighted average price of $42.79 per share and immediately retired the shares, reducing stockholders’ equity by $2.4 million. During the first quarter of 2019, the Company’s Board of Directors authorized the Company to repurchase up to $50.0 million of its common

stock over a 12-month period.  During the three and nine months ended September 30, 2019, the Company repurchased 50 thousand and 80 thousand shares of its common stock, respectively, under the 2019 share repurchase program at a weighted average price of $52.83 per share and $52.48 per share, respectively, and immediately retired the shares, reducing stockholders’ equity by $2.7 million and $4.2 million, respectively. The Company had $45.8 million of authorized share repurchase capacity remaining as of September 30, 2019.

The Company paid a cash dividend of $0.30 per share to all holders of restricted and unrestricted common stock and restricted stock units in each of the first three quarters of 2019. On November 5, 2019, the Company’s Board of Directors declared a cash dividend of $0.30 per share for the fourth quarter of 2019. The dividend will be paid December 9, 2019 to all holders of record of our restricted and unrestricted common stock and restricted stock units as of November 22, 2019. The Company expects the dividends paid during 2019 to be an insignificant portion of the Company’s net income, retained earnings, and cash and cash equivalents.

During the third quarter of 2019, the Company made an advance to one of the noncontrolling interest holders in the amount of $1.5 million to allow the noncontrolling interest holder to make a required contribution to WDIS. As this was a non-cash transaction, the amounts are not presented in the Condensed Consolidated Statements of Cash Flows.

The Company’s note payable contains direct restrictions to the amount of dividends the Company may pay, and the warehouse credit facilities and agreements with the Agencies contain minimum equity, liquidity, and other capital requirements that indirectly restrict the amount of dividends the Company may pay. The Company does not believe that these restrictions currently limit the amount of dividends the Company intends to pay for the foreseeable future.