Note 13 - Capital Stock (Note)

6 Months Ended

Jun. 30, 2020

Equity [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

Capital Stock

Share Repurchase Program

On August 14, 2019, Radian Group’s board of directors approved a share repurchase program that authorizes the Company to spend up to $200 million, excluding commissions, to repurchase Radian Group common stock in the open market or in privately negotiated transactions, based on market and business conditions, stock price and other factors. Radian operates this program pursuant to a trading plan under Rule 10b5-1 of the Exchange Act, which permits the Company to purchase shares, at pre-determined price targets, when it may otherwise be precluded from doing so. On February 13, 2020, Radian Group’s board of directors authorized a $275 million increase in this program, bringing the total authorization to repurchase shares up to $475 million, excluding commissions, and extended the expiration of this program extension from July 31, 2020 to August 31, 2021. During the six months ended June 30, 2020, the Company purchased 11,036,248 shares at an average price of $20.51, including commissions. As of June 30, 2020, purchase authority of up to $198.9 million remained available under this program.

Effective March 19, 2020, the Company suspended its share repurchase program and canceled its current 10b5-1 plan. Radian may initiate a new 10b5-1 plan at its discretion in the future. The expiration date of the current share repurchase authorization remains August 31, 2021.

Other Purchases

We may purchase shares on the open market to settle stock options exercised by employees and purchases under the Amended and Restated Radian Group Inc. Employee Stock Purchase Plan. In addition, upon the vesting of certain restricted stock awards under our equity compensation plans, we may withhold from such vested awards shares of our common stock to satisfy the tax liability of the award recipients.

Dividends and Dividend Equivalents

In each of the quarters during 2019 we declared quarterly cash dividends on our common stock equal to $0.0025 per share. On February 13, 2020, Radian Group’s board of directors authorized an increase to the Company’s quarterly cash dividend from $0.0025 to $0.125 per share, beginning with the dividend declared in the first quarter of 2020.

In February 2020, the Compensation and Human Capital Management Committee of Radian Group’s board of directors approved the amendment of outstanding performance-based restricted stock unit (“RSU”) awards and time-based RSU awards held by eligible employees (including former employees) and directors of the Company to add certain dividend equivalent rights to such equity awards. Therefore, beginning in the first quarter of 2020, dividend equivalents are accrued on these awards when dividends are declared on the Company’s common stock.

Share-Based and Other Compensation Programs

We have granted performance-based or time-based awards in the form of non-qualified stock options, restricted stock, RSUs, phantom stock, or stock appreciation rights. See Note 15 of Notes to Consolidated Financial Statements in our 2019 Form 10-K for additional information regarding the Company’s share-based and other compensation programs.

During the second quarter of 2020, executive and non-executive officers were granted time-vested and performance-based RSUs to be settled in common stock. The maximum payout of performance-based RSUs at the end of the three-year performance period is 200% of a grantee’s target number. The vesting of the performance-based RSUs granted to each executive officer and non-executive will be based upon the cumulative growth in Radian’s book value per share, adjusted for certain defined items, over a three-year performance period. The time-vested RSU awards granted to executive and non-executive officers in 2020 generally vest in pro rata installments on each of the first three anniversaries of the grant date. In addition, time-vested RSU awards were also granted to non-employee directors and generally are subject to one-year cliff vesting.

Information with regard to RSUs to be settled in stock for periods indicated is as follows:

	Performance-Based			Time-Vested
	Number of Shares	Weighted-Average Grant Date Fair Value		Number of Shares	Weighted-Average Grant Date Fair Value
Unvested, December 31, 2019 (1)	2,448,347	$	17.03	697,576	$	19.72
Granted (2)	1,175,062	$	12.02	659,914	$	13.69
Performance adjustment (3)	(792,420)	$	—	—	$	—
Vested (4)	(591,118)	$	17.59	(395,093)	$	17.45
Forfeited	(15,463)	$	20.00	(4,484)	$	22.87
Unvested, June 30, 2020 (1)	2,224,408	$	14.44	957,913	$	16.48

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(1)The final number of RSUs distributed depends on the level of performance achieved along with each employee’s continued service through the vest date, which could result in changes in vested RSUs.

(2)For performance-based RSUs, amount represents the probable outcome at grant date.

(3)Represents an adjustment to the number of unvested performance-based RSUs due to changes during the period in our estimated payouts, which can range from 0 to 200% of target depending on results over the applicable performance periods.

(4)Represents amounts vested during the year, which can include both original shares granted and the impact of performance adjustments.