Form 4: NMIH Officer Leatherberry's Equity Changes

NMI Holdings, Inc. Chief Administrative Officer William J. Leatherberry reported new equity grants, vesting of performance-based units, and shares withheld for tax obligations.

Summary

• William J. Leatherberry, Chief Administrative Officer and General Counsel of NMI Holdings, Inc. (NMIH), reported changes in his beneficial ownership of company securities.
• On February 11, 2026, Leatherberry was granted 18,233 Restricted Stock Units (RSUs) under the NMIH Amended and Restated 2014 Omnibus Incentive Plan. These RSUs vest 40% on the first and second anniversaries of the grant date, and 20% on the third anniversary.
• Also on February 11, 2026, 50,496 performance-based restricted stock units (PRSUs) granted on February 8, 2023, vested and converted into common shares, following the attainment of performance criteria certified by the Compensation Committee.
• To cover withholding taxes related to the PRSU vesting, 25,693 common shares were withheld by NMIH on February 11, 2026.
• An additional 4,005 common shares were withheld by NMIH on February 12, 2026, to satisfy withholding taxes due to the vesting of certain RSUs granted on February 12, 2025.
• Following these transactions, Leatherberry beneficially owns 129,801 common shares and 34,433 unvested restricted stock units, totaling 164,234 securities.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive filing, reflecting ongoing executive compensation through equity grants and the successful achievement of performance targets for previously issued units, which aligns management incentives with shareholder value.

Positives

• Grant of 18,233 new Restricted Stock Units (RSUs) to a key officer, aligning management's interests with shareholders.
• Successful vesting of 50,496 performance-based restricted stock units (PRSUs) indicates the company met specific performance criteria over the three-year period from February 8, 2023, to February 11, 2026.

Negatives

• Disposal of 25,693 common shares and 4,005 common shares for tax withholding purposes, which reduces the officer's direct shareholding.

Future Outlook

The newly granted restricted stock units (RSUs) will vest over three years, with 40% vesting on the first and second anniversaries of the February 11, 2026 grant date, and 20% on the third anniversary.

Industry Context

StockSavvy.ai notes that Form 4 filings provide transparency into insider equity transactions, which are a routine part of executive compensation. These filings offer insights into how management's ownership stakes evolve, reflecting ongoing compensation structures and the achievement of performance milestones within the financial services industry, particularly for mortgage insurance providers like NMIH.

Stakeholder Impact

• Shareholders: Increased transparency regarding executive equity holdings and compensation. The vesting of performance-based units suggests successful achievement of company goals, which could be positive for shareholder value.
• Employees: Reflects the company's ongoing use of equity compensation plans to incentivize key personnel.

Next Steps

• Vesting of 18,233 Restricted Stock Units (granted 02/11/2026) on the first, second, and third anniversaries of the grant date.

Key Dates

Recommendation

This Form 4 filing details routine executive equity compensation, including new grants and vesting events, along with standard tax withholdings. While the vesting of performance-based units indicates successful goal achievement, these transactions are expected and do not provide new material information that would significantly alter the investment thesis for NMIH. Therefore, a 'hold' recommendation is appropriate, maintaining current positions based on broader company fundamentals rather than these specific insider transactions.

Keywords

NMI Holdings, NMIH, Form 4, Insider Transaction, Restricted Stock Units, Performance-Based Restricted Stock Units, Equity Compensation, Executive Compensation, William J. Leatherberry, Chief Administrative Officer, General Counsel