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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________________________________________________
FORM 10-Q
☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2024
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from            to
Commission file number 001-34819
GreenDot_CorporateLogo v4.jpg
(Exact name of Registrant as specified in its charter)

Delaware95-4766827
(State or other jurisdiction of incorporation or organization)(IRS Employer Identification No.)

114 W 7th Street, Suite 240
Austin,Texas78701(626)765-2000
(Address of principal executive offices, including zip code)(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each class:Trading Symbol(s):Name of each exchange on which registered:
Class A Common Stock, $0.001 par valueGDOTNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer☑Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ
There were 53,786,844 shares of Class A common stock outstanding, par value $0.001 per share as of October 31, 2024.


GREEN DOT CORPORATION
TABLE OF CONTENTS
 Page
Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 5.
Item 6.


PART I
ITEM 1. Financial Statements
GREEN DOT CORPORATION
CONSOLIDATED BALANCE SHEETS
September 30, 2024December 31, 2023
(unaudited)
Assets(In thousands, except par value)
Current assets:  
Unrestricted cash and cash equivalents$1,453,549 $682,263 
Restricted cash44 4,239 
Investment securities available-for-sale, at fair value43,257 33,859 
Settlement assets587,106 737,989 
Accounts receivable, net84,635 110,141 
Prepaid expenses and other assets49,459 69,419 
Income tax receivable1,322 — 
Total current assets2,219,372 1,637,910 
Investment securities available-for-sale, at fair value2,120,803 2,203,142 
Loans to bank customers, net of allowance for credit losses of $17,778 and $11,383 as of September 30, 2024 and December 31, 2023, respectively
33,380 30,534 
Prepaid expenses and other assets193,791 221,656 
Property, equipment, and internal-use software, net181,386 179,376 
Operating lease right-of-use assets3,801 5,342 
Deferred expenses1,226 1,546 
Net deferred tax assets128,263 117,139 
Goodwill and intangible assets403,265 420,477 
Total assets$5,285,287 $4,817,122 
Liabilities and Stockholders’ Equity  
Current liabilities:  
Accounts payable$95,043 $119,870 
Deposits3,837,906 3,293,603 
Obligations to customers215,588 314,278 
Settlement obligations50,821 57,001 
Amounts due to card issuing banks for overdrawn accounts84 225 
Other accrued liabilities94,844 91,239 
Operating lease liabilities2,118 3,369 
Deferred revenue7,181 6,343 
Line of credit— 61,000 
Income tax payable2,497 6,262 
Total current liabilities4,306,082 3,953,190 
Other accrued liabilities1,217 1,895 
Operating lease liabilities2,068 2,687 
Notes payable43,675 — 
Total liabilities4,353,042 3,957,772 
Commitments and contingencies (Note 17)
Stockholders’ equity:  
Class A common stock, $0.001 par value; 100,000 shares authorized as of September 30, 2024 and December 31, 2023; 53,751 and 52,816 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively
54 53 
Additional paid-in capital400,769 375,980 
Retained earnings738,499 770,304 
Accumulated other comprehensive loss(207,077)(286,987)
Total stockholders’ equity932,245 859,350 
Total liabilities and stockholders’ equity$5,285,287 $4,817,122 
See notes to unaudited consolidated financial statements
1
GREEN DOT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
 (In thousands, except per share data)
Operating revenues:
Card revenues and other fees$310,372 $253,407 $878,002 $735,380 
Cash processing revenues34,897 36,256 198,447 191,925 
Interchange revenues48,397 54,968 148,950 178,950 
Interest income, net16,077 8,398 43,453 29,030 
Total operating revenues409,743 353,029 1,268,852 1,135,285 
Operating expenses:
Sales and marketing expenses52,626 56,495 167,948 194,530 
Compensation and benefits expenses61,795 59,168 189,967 192,934 
Processing expenses228,227 162,375 631,789 460,555 
Other general and administrative expenses70,027 81,830 295,193 238,324 
Total operating expenses412,675 359,868 1,284,897 1,086,343 
Operating (loss) income(2,932)(6,839)(16,045)48,942 
Interest expense, net1,577 239 4,306 2,121 
Other expense, net(3,705)(802)(10,045)(6,050)
(Loss) income before income taxes(8,214)(7,880)(30,396)40,771 
Income tax (benefit) expense(374)(1,615)1,409 10,446 
Net (loss) income$(7,840)$(6,265)$(31,805)$30,325 
Basic (loss) earnings per common share:$(0.15)$(0.12)$(0.60)$0.58 
Diluted (loss) earnings per common share$(0.15)$(0.12)$(0.60)$0.58 
Basic weighted-average common shares issued and outstanding:53,722 52,367 53,373 52,127 
Diluted weighted-average common shares issued and outstanding:53,722 52,367 53,373 52,436 
See notes to unaudited consolidated financial statements
2
GREEN DOT CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(In thousands)
Net (loss) income$(7,840)$(6,265)$(31,805)$30,325 
Other comprehensive income and loss
Unrealized holding income (loss), net of tax62,175 (47,263)79,910 (44,332)
Comprehensive income (loss)$54,335 $(53,528)$48,105 $(14,007)
See notes to unaudited consolidated financial statements
3
GREEN DOT CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(UNAUDITED)

Three Months Ended September 30, 2024
Class A Common StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive LossTotal Stockholders' Equity
SharesAmount
(In thousands)
Balance at June 30, 202453,707 $54 $392,810 $746,339 $(269,252)$869,951 
Common stock issued under stock plans, net of withholdings and related tax effects44 — (228)— — (228)
Stock-based compensation— — 8,187 — — 8,187 
Net loss— — — (7,840)— (7,840)
Other comprehensive income— — — — 62,175 62,175 
Balance at September 30, 202453,751 $54 $400,769 $738,499 $(207,077)$932,245 

Three Months Ended September 30, 2023
Class A Common StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive LossTotal Stockholders' Equity
SharesAmount
(In thousands)
Balance at June 30, 202352,341 $52 $360,812 $800,172 $(319,797)$841,239 
Common stock issued under stock plans, net of withholdings and related tax effects74 — (524)— — (524)
Stock-based compensation— — 7,934 — — 7,934 
Net loss— — — (6,265)— (6,265)
Other comprehensive loss— — — — (47,263)(47,263)
Balance at September 30, 202352,415 $52 $368,222 $793,907 $(367,060)$795,121 
See notes to unaudited consolidated financial statements










4
GREEN DOT CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (CONTINUED)
(UNAUDITED)

Nine Months Ended September 30, 2024
Class A Common StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive LossTotal Stockholders' Equity
SharesAmount
(In thousands)
Balance at December 31, 202352,816 $53 $375,980 $770,304 $(286,987)$859,350 
Common stock issued under stock plans, net of withholdings and related tax effects935 1 730 — — 731 
Stock-based compensation— — 24,059 — — 24,059 
Net loss— — — (31,805)— (31,805)
Other comprehensive income— — — — 79,910 79,910 
Balance at September 30, 202453,751 $54 $400,769 $738,499 $(207,077)$932,245 

Nine Months Ended September 30, 2023
Class A Common StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive LossTotal Stockholders' Equity
SharesAmount
(In thousands)
Balance at December 31, 202251,674 $52 $340,575 $763,582 $(322,728)$781,481 
Common stock issued under stock plans, net of withholdings and related tax effects741 — (85)— — (85)
Stock-based compensation— — 27,732 — — 27,732 
Net income— — — 30,325 — 30,325 
Other comprehensive loss— — — — (44,332)(44,332)
Balance at September 30, 202352,415 $52 $368,222 $793,907 $(367,060)$795,121 
See notes to unaudited consolidated financial statements
5
GREEN DOT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
 Nine Months Ended September 30,
 20242023
 (In thousands)
Operating activities  
Net (loss) income$(31,805)$30,325 
Adjustments to reconcile net (loss) income to net cash provided by operating activities:  
Depreciation and amortization of property, equipment and internal-use software47,732 42,306 
Amortization of intangible assets16,295 18,593 
Provision for uncollectible overdrawn accounts from purchase transactions15,509 7,356 
Provision for loan losses22,471 21,404 
Stock-based compensation24,059 27,732 
Losses in equity method investments11,931 9,286 
Amortization of discount on available-for-sale investment securities(1,614)(1,724)
Impairment of long-lived assets4,944 — 
Other(1,810)(3,128)
Changes in operating assets and liabilities:
Accounts receivable, net9,997 1,081 
Prepaid expenses and other assets16,024 8,385 
Deferred expenses320 12,946 
Accounts payable and other accrued liabilities(24,534)(15,505)
Deferred revenue157 (19,363)
Income tax receivable/payable(4,803)(7,859)
Other, net(478)613 
Net cash provided by operating activities104,395 132,448 
Investing activities  
Purchases of available-for-sale investment securities(11,845)— 
Proceeds from maturities of available-for-sale securities154,682 131,559 
Proceeds from sales and calls of available-for-sale securities273 197 
Payments for property, equipment and internal-use software(52,168)(55,501)
Net changes in loans(24,366)(21,562)
Investment in TailFin Labs, LLC(35,000)(35,000)
Proceeds from other investments55,088 — 
Other investing activities(846)(1,273)
Net cash provided by investing activities85,818 18,420 
Financing activities
Borrowings on notes payable44,551 — 
Borrowings on revolving line of credit238,000 153,000 
Repayments on revolving line of credit(299,000)(161,000)
Proceeds from exercise of options and ESPP purchases2,719 3,415 
Taxes paid related to net share settlement of equity awards(1,988)(3,500)
Net changes in deposits547,477 (238,417)
Net changes in settlement assets and obligations to customers46,013 (8,776)
Deferred financing costs(894)— 
Net cash provided by (used in) financing activities576,878 (255,278)
Net increase (decrease) in unrestricted cash, cash equivalents and restricted cash767,091 (104,410)
Unrestricted cash, cash equivalents and restricted cash, beginning of period686,502 819,845 
Unrestricted cash, cash equivalents and restricted cash, end of period$1,453,593 $715,435 
Cash paid for interest$9,896 $3,615 
Cash paid for income taxes$6,003 $17,100 
Reconciliation of unrestricted cash, cash equivalents and restricted cash at end of period:
Unrestricted cash and cash equivalents$1,453,549 $711,399 
Restricted cash44 4,036 
Total unrestricted cash, cash equivalents and restricted cash, end of period$1,453,593 $715,435 
See notes to unaudited consolidated financial statements
6
GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note 1—Organization
Green Dot Corporation (“we,” “our,” or “us” refer to Green Dot Corporation and its consolidated subsidiaries) is a financial technology and registered bank holding company committed to giving all people the power to bank seamlessly, affordably, and with confidence. Our technology platform enables us to build products and features that address the most pressing financial challenges of consumers and businesses, transforming the way they manage and move money, and making financial empowerment more accessible for all. Through Green Dot Bank, our wholly-owned subsidiary, we offer a suite of financial products to consumers and businesses including debit, prepaid, checking, credit, prepaid, and payroll cards, as well as robust money processing services, such as tax refund processing, cash deposits and disbursements.
We were incorporated in Delaware in 1999 and became a bank holding company under the Bank Holding Company Act and a member bank of the Federal Reserve System in December 2011.
Note 2—Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America, or GAAP. We consolidated our wholly-owned subsidiaries and eliminated all significant intercompany balances and transactions.
We have also prepared the accompanying unaudited consolidated financial statements in conformity with the instructions to Form 10-Q and Article 10 of Regulation S-X and, consequently, they do not include all of the annual disclosures required by GAAP. Reference is made to our Annual Report on Form 10-K for the year ended December 31, 2023 for additional disclosures, including a summary of our significant accounting policies. There have been no material changes to our previously disclosed significant accounting policies during the nine months ended September 30, 2024. In our opinion, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of normal and recurring items, necessary for the fair presentation of our financial position, results of operations and cash flows for the interim periods presented.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Future events and their effects cannot be predicted with certainty; accordingly, accounting estimates require the exercise of judgment. These financial statements were prepared using information reasonably available as of September 30, 2024 and through the date of this report. The accounting estimates used in the preparation of our consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained, and as our operating environment changes. Actual results may differ from these estimates due to a variety of factors, including those identified under Part II, Item 1A. "Risk Factors" in this report.
Recent Accounting Pronouncements
In November 2023, the Financial Standards Accounting Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07 "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for our annual periods beginning January 1, 2024, and for interim periods beginning January 1, 2025, with early adoption permitted. We are currently evaluating the potential effect that the updated standard will have on our financial statement disclosures.
In December 2023, the FASB issued ASU 2023-09 "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" to expand the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid. ASU 2023-09 is effective for our annual periods beginning January 1, 2025, with early adoption permitted. We are currently evaluating the potential effect that the updated standard will have on our financial statement disclosures.
7
GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
Note 3—Revenues
As discussed in Note 19 — Segment Information, we determine our operating segments based on how our chief operating decision maker manages our operations, makes operating decisions and evaluates operating performance. Within our segments, we believe that the nature, amount, timing and uncertainty of our revenue and cash flows and how they are affected by economic factors can be further illustrated based on the timing in which revenue for each of our products and services is recognized. Our products and services are offered to customers within the United States and certain U.S. territories. The following tables disaggregate our revenues earned from external customers by each of our reportable segments:
Three Months Ended September 30, 2024
Consumer ServicesB2B ServicesMoney Movement ServicesTotal
Timing of recognition(In thousands)
Transferred point in time$70,325 $38,617 $33,965 $142,907 
Transferred over time25,251 224,647 861 250,759 
Operating revenues (1)
$95,576 $263,264 $34,826 $393,666 
Three Months Ended September 30, 2023
Consumer ServicesB2B ServicesMoney Movement ServicesTotal
Timing of recognition(In thousands)
Transferred point in time$76,722 $35,383 $31,196 $143,301 
Transferred over time38,363 162,074 893 201,330 
Operating revenues (1)
$115,085 $197,457 $32,089 $344,631 
Nine Months Ended September 30, 2024
Consumer ServicesB2B ServicesMoney Movement ServicesTotal
Timing of recognition(In thousands)
Transferred point in time$210,797 $108,369 $195,914 $515,080 
Transferred over time76,837 631,067 2,415 710,319 
Operating revenues (1)
$287,634 $739,436 $198,329 $1,225,399 
Nine Months Ended September 30, 2023
Consumer ServicesB2B ServicesMoney Movement ServicesTotal
Timing of recognition(In thousands)
Transferred point in time$253,500 $103,745 $177,898 $535,143 
Transferred over time124,154 444,552 2,406 571,112 
Operating revenues (1)
$377,654 $548,297 $180,304 $1,106,255 
(1)
Excludes net interest income, a component of total operating revenues, as it is outside the scope of ASC 606, Revenues. Also excludes the effects of inter-segment revenues.
Revenues recognized at a point in time are comprised of interchange fees, ATM fees, overdraft protection fees, other similar accountholder transaction-based fees, and substantially all of our cash processing revenues. Revenues recognized over time consists of new card fees, monthly maintenance fees, revenue earned from gift cards and substantially all BaaS (as defined herein) partner program management service fees.
8
GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
Note 3—Revenues (continued)
As presented on our consolidated balance sheets, we record deferred revenue for any upfront payments received in advance of our performance obligations being satisfied. These contract liabilities consist principally of unearned new card fees and monthly maintenance fees. We recognized approximately $0.2 million and $0.7 million in revenue for the three months ended September 30, 2024 and 2023, respectively, and $3.7 million and $22.6 million for the nine months ended September 30, 2024 and 2023, respectively, that were included in deferred revenue at the beginning of the periods and did not recognize any revenue during these periods from performance obligations satisfied in previous periods. Substantially all of the deferred revenue balances at the beginning of the respective periods are recognized in the first half of each year. Changes in the deferred revenue balance are driven primarily by the amount of new card fees recognized during the period, and the degree to which these reductions to the deferred revenue balance are offset by the deferral of new card fees associated with cards sold during the period.
Note 4—Investment Securities
Our available-for-sale investment securities were as follows:
Amortized costGross unrealized gainsGross unrealized lossesFair value
(In thousands)
September 30, 2024
Corporate bonds$10,000 $— $(157)$9,843 
Agency bond securities240,582 — (32,480)208,102 
Agency mortgage-backed securities2,196,117 45 (274,047)1,922,115 
Municipal bonds29,121 — (5,121)24,000 
Total investment securities$2,475,820 $45 $(311,805)$2,164,060 
December 31, 2023
Corporate bonds$10,000 $— $(374)$9,626 
Agency bond securities240,447 — (40,217)200,230 
Agency mortgage-backed securities2,337,411 — (333,901)2,003,510 
Municipal bonds29,408 — (5,773)23,635 
Total investment securities$2,617,266 $— $(380,265)$2,237,001 
As of September 30, 2024 and December 31, 2023, the gross unrealized losses and fair values of available-for-sale investment securities that were in unrealized loss positions were as follows:
Less than 12 months12 months or moreTotal fair valueTotal unrealized loss
Fair valueUnrealized lossFair valueUnrealized loss
(In thousands)
September 30, 2024
Corporate bonds$— $— $9,843 $(157)$9,843 $(157)
Agency bond securities— — 208,102 (32,480)208,102 (32,480)
Agency mortgage-backed securities8,120 (87)1,905,138 (273,960)1,913,258 (274,047)
Municipal bonds— — 24,000 (5,121)24,000 (5,121)
Total investment securities$8,120 $(87)$2,147,083 $(311,718)$2,155,203 $(311,805)
December 31, 2023
Corporate bonds$— $— $9,626 $(374)$9,626 $(374)
Agency bond securities— — 200,230 (40,217)200,230 (40,217)
Agency mortgage-backed securities— — 2,001,270 (333,901)2,001,270 (333,901)
Municipal bonds— — 23,636 (5,773)23,636 (5,773)
Total investment securities$— $— $2,234,762 $(380,265)$2,234,762 $(380,265)

9
GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
Note 4—Investment Securities (continued)
Our investments generally consist of highly rated securities, substantially all of which are directly or indirectly backed by the U.S. federal government, as our investment policy restricts our investments to highly liquid, low credit risk assets. As such, we have not recorded any meaningful credit-related impairment losses during the three and nine months ended September 30, 2024 or 2023 on our available-for-sale investment securities. Unrealized losses as of September 30, 2024 and December 31, 2023 are the result of increases in interest rates as our investment portfolio is comprised predominantly of fixed rate securities. Almost all of the underlying securities within our investment portfolio were in an unrealized loss position as of September 30, 2024 and December 31, 2023 due to the timing of our investment purchases, as a significant portion of our investments were purchased prior to increases in interest rates by the Federal Reserve, and general volatility in market conditions.
We do not currently intend to sell our investments, and we have determined that it is more likely than not that we will not be required to sell our investments before recovery of their amortized cost bases, which may be at maturity.
As of September 30, 2024, the contractual maturities of our available-for-sale investment securities were as follows:
Amortized costFair value
(In thousands)
Due in one year or less$43,525 $43,257 
Due after one year through five years81,357 74,326 
Due after five years through ten years134,225 114,721 
Due after ten years54,121 43,055 
Mortgage and asset-backed securities2,162,592 1,888,701 
Total investment securities$2,475,820 $2,164,060 
The expected payments on mortgage-backed and asset-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations.
Note 5—Accounts Receivable
Accounts receivable, net consisted of the following:
September 30, 2024December 31, 2023
 (In thousands)
Trade receivables$34,535 $29,786 
Reserve for uncollectible trade receivables(74)(109)
Net trade receivables34,461 29,677 
Overdrawn accountholder balances from purchase transactions
7,942 9,565 
Reserve for uncollectible overdrawn accounts from purchase transactions(2,489)(5,281)
Net overdrawn accountholder balances from purchase transactions
5,453 4,284 
Accountholder fees
2,521 2,564 
Receivables due from card issuing banks1,951 1,768 
Fee advances, net8,874 41,974 
Other receivables31,375 29,874 
Accounts receivable, net$84,635 $110,141 

10
GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
Note 5—Accounts Receivable (continued)
Activity in the reserve for uncollectible overdrawn accounts from purchase transactions consisted of the following:
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
 (In thousands)
Balance, beginning of period$2,737 $2,692 $5,281 $2,230 
Provision for uncollectible overdrawn accounts from purchase transactions4,248 1,827 15,509 7,356 
Charge-offs(4,496)(2,361)(18,301)(7,428)
Balance, end of period$2,489 $2,158 $2,489 $2,158 
Note 6—Loans to Bank Customers
The following table presents total outstanding loans, gross of the related allowance for credit losses, and a summary of the related payment status:
30-59 Days Past Due60-89 Days Past Due90 Days or More Past DueTotal Past DueTotal Current or Less Than 30 Days Past DueTotal Outstanding
(In thousands)
September 30, 2024
Residential$— $— $— $— $6,419 $6,419 
Commercial— — — — 2,574 2,574 
Installment— — — — 4,737 4,737 
Consumer1,832 — — 1,832 26,123 27,955 
Secured credit card776 791 2,555 4,122 5,351 9,473 
Total loans$2,608 $791 $2,555 $5,954 $45,204 $51,158 
Percentage of outstanding5.1 %1.6 %5.0 %11.6 %88.4 %100.0 %
December 31, 2023
Residential$— $— $— $— $5,095 $5,095 
Commercial— — — — 2,716 2,716 
Installment— — — — 4,357 4,357 
Consumer2,066 — — 2,066 17,953 20,019 
Secured credit card796 774 2,575 4,145 5,585 9,730 
Total loans$2,862 $774 $2,575 $6,211 $35,706 $41,917 
Percentage of outstanding6.8 %1.9 %6.1 %14.8 %85.2 %100.0 %
We offer an optional overdraft protection program service on certain demand deposit account programs that allows customers who opt-in and meet certain criteria to spend up to a pre-authorized amount in excess of their available account balance. When overdrawn, the purchase related balances due on these deposit accounts are reclassified as consumer loans. Fees due from our accountholders for our overdraft service are included as a component of accounts receivable. Overdrawn balances are unsecured and considered immediately due from the customer. Also included in consumer loans are advances made to taxpayers under our tax advance program. These loan balances generally fluctuate over the first half of each year due to the seasonal nature of these advances.
A portion of our secured credit card portfolio is classified as loans held for sale. These loans are included in the long-term portion of prepaid and other assets on our consolidated balance sheets. Changes in valuation allowances are recorded as a component of other income and expenses on our consolidated statement of operations. As of September 30, 2024 and December 31, 2023, the fair value of the loans held for sale amounted to approximately $4.0 million and $4.7 million, respectively.
11
GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
Note 6—Loans to Bank Customers (continued)
Nonperforming Loans
The following table presents the carrying value, gross of the related allowance for credit losses, of our nonperforming loans. See Note 2 — Summary of Significant Accounting Policies to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2023 for further information on the criteria for classification as nonperforming.
September 30, 2024December 31, 2023
(In thousands)
Residential$37 $49 
Installment— 79 
Secured credit card2,555 2,575 
Total loans$2,592 $2,703 
Credit Quality Indicators
We closely monitor and assess the credit quality and credit risk of our loan portfolio on an ongoing basis. We continuously review and update loan risk classifications. We evaluate our loans using non-classified or classified as the primary credit quality indicator. Classified loans include those designated as substandard, doubtful, or loss, consistent with regulatory guidelines. Secured credit card loans are considered classified if they are greater than 90 days past due. However, our secured credit card portfolio is collateralized by cash deposits made by each accountholder in an amount equal to the user's available credit limit, which mitigates the risk of any significant credit losses we expect to incur.
The table below presents the carrying value, gross of the related allowance for credit losses, of our loans within the primary credit quality indicators related to our loan portfolio:
September 30, 2024December 31, 2023
Non-ClassifiedClassifiedNon-ClassifiedClassified
(In thousands)
Residential$6,382 $37 $5,046 $49 
Commercial2,574 — 2,716 — 
Installment4,737 — 4,278 79 
Consumer27,955 — 20,019 — 
Secured credit card6,918 2,555 7,155 2,575 
Total loans$48,566 $2,592 $39,214 $2,703 
Allowance for Credit Losses
Activity in the allowance for credit losses on our loan portfolio consisted of the following:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(In thousands)
Balance, beginning of period$17,360 $12,641 $11,383 $9,078 
Provision for loans5,724 5,664 22,471 21,397 
Loans charged off(5,340)(2,825)(16,240)(15,074)
Recoveries of loans previously charged off34 72 164 151 
Balance, end of period$17,778 $15,552 $17,778 $15,552 
12
GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
Note 7—Equity Method Investments
On January 2, 2020, we effectuated our agreement with Walmart to jointly establish a new fintech accelerator under the name TailFin Labs, LLC (“TailFin Labs”), with a mission to develop innovative products, services and technologies that sit at the intersection of retail shopping and consumer financial services. The entity is majority-owned by Walmart and focuses on developing tech-enabled solutions to integrate omni-channel retail shopping and financial services. We hold a 20% ownership interest in the entity, in exchange for annual capital contributions of $35.0 million per year from January 2020 through January 2024. Our final payment under this commitment was made in January 2024.
We account for our investment in TailFin Labs under the equity method of accounting in accordance with ASC 323, Investments – Equity Method and Joint Ventures. Under the equity method of accounting, the initial investment is recorded at cost and the investment is subsequently adjusted for, among other things, its proportionate share of earnings or losses. However, given the capital structure of the TailFin Labs arrangement, we apply the Hypothetical Liquidation Book Value ("HLBV") method to determine the allocation of profits and losses since our liquidation rights and priorities, as defined by the agreement, differ from our underlying ownership interest. The HLBV method calculates the proceeds that would be attributable to each partner in an investment based on the liquidation provisions of the agreement if the partnership was to be liquidated at book value as of the balance sheet date. Each partner’s allocation of income or loss in the period is equal to the change in the amount of net equity they are legally able to claim based on a hypothetical liquidation of the entity at the end of a reporting period compared to the beginning of that period, adjusted for any capital transactions. Any future economic benefits derived from products or services developed by TailFin Labs will be negotiated on a case-by-case basis between the parties.
As of September 30, 2024 and December 31, 2023, our net investment in TailFin Labs amounted to approximately $132.1 million and $109.5 million, respectively, and is included in the long-term portion of prepaid expenses and other assets on our consolidated balance sheets. We recorded equity in losses from TailFin Labs of $4.4 million and $0.8 million for the three months ended September 30, 2024 and 2023, respectively, and $12.3 million and $8.0 million for the nine months ended September 30, 2024 and 2023, respectively. These amounts are recorded as a component of other income and expense on our consolidated statements of operations.
Our equity method investments also include an investment held by our bank, which amounted to $3.3 million and $3.5 million at September 30, 2024 and December 31, 2023, respectively. Equity in earnings from this investment for the three and nine months ended September 30, 2024 and 2023 were not significant.
Note 8—Deposits
Deposits are categorized as non-interest bearing or interest-bearing deposit accounts as follows:
September 30, 2024December 31, 2023
(In thousands)
Non-interest bearing deposit accounts$3,734,889 $3,214,881 
Interest-bearing deposit accounts
Checking accounts86,939 61,679 
Savings6,200 6,077 
Secured card deposits3,877 4,967 
Time deposits, denominations greater than or equal to $2502,185 1,998 
Time deposits, denominations less than $2503,816 4,001 
Total interest-bearing deposit accounts103,017 78,722 
Total deposits$3,837,906 $3,293,603 

13
GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
Note 8—Deposits (continued)
The scheduled contractual maturities for total time deposits are presented in the table below:
September 30, 2024
(In thousands)
Due in 2024$1,679 
Due in 20251,442 
Due in 2026830 
Due in 20271,048 
Due in 2028929 
Thereafter73 
Total time deposits$6,001 
Note 9—Debt
Senior Unsecured Notes
In September 2024, we issued and sold senior unsecured notes (the "Notes") in an aggregate principal amount of $45 million. The Notes have a five-year term, maturing September 15, 2029. The principal amounts bear interest at a fixed rate of 8.75% per annum, payable semi-annually in arrears.
Prior to March 15, 2029, we may redeem at our option, the Notes in whole or in part at any time at a redemption price equal to 100% of the outstanding principal amount to be redeemed, together with accrued but unpaid interest thereon, plus a make-whole amount. On and after March 15, 2029, we may redeem the Notes at 100% of the principal amount, plus accrued and unpaid interest thereon.
The Notes are unsecured, senior obligations and are not guaranteed by any of our subsidiaries. The Notes are junior in right of payment to existing and future secured indebtedness. As of September 30, 2024, we were in compliance with all affirmative and negative non-financial covenants thereunder. The net proceeds of the offering were used to repay outstanding indebtedness under our revolving credit facility discussed below, and for general corporate purposes.
The following table provides the outstanding long-term debt balance, at amortized cost:
September 30, 2024
(In thousands)
Senior unsecured notes$45,000 
Less: Unamortized discount and issuance costs(1,325)
Notes payable, net of unamortized discount and issuance costs$43,675 
In October 2024, we issued and sold additional Notes in an aggregate principal amount of $5 million.
2019 Revolving Facility
In October 2019, we entered into a secured credit agreement with Wells Fargo Bank, National Association, and other lenders party thereto. The credit agreement provided for a $100.0 million five-year revolving line of credit (the "2019 Revolving Facility"), which matured in October 2024. As of September 30, 2024, the then-outstanding balance on the 2019 Revolving Facility was repaid in full, and the 2019 Revolving Facility terminated at its maturity date.
We incurred total cash interest expense on our debt during the three months ended September 30, 2024 and 2023 of approximately $1.5 million and $0.2 million, respectively and during the nine months ended September 30, 2024 and 2023 of $4.2 million and $2.0 million, respectively.
14
GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
Note 10—Income Taxes
Income tax expense for the nine months ended September 30, 2024 and 2023 differs from the amount computed by applying the statutory federal income tax rate to income before income taxes. The sources and tax effects of the differences are as follows:
 Nine Months Ended September 30,
 20242023
U.S. federal statutory tax rate21.0 %21.0 %
State income taxes, net of federal tax benefit6.1 1.7 
Foreign tax rate differential1.4 (0.6)
General business credits11.6 (4.5)
IRC 162(m) limitation3.8 1.1 
Stock-based compensation(10.0)7.1 
Bank owned life insurance income2.8 (1.5)
Bank owned life insurance surrender(7.4)— 
Nondeductible expenses and penalties(32.3)0.3 
Global intangible low-tax income tax(1.5)0.8 
Other(0.1)0.2 
Effective tax rate(4.6)%25.6 %
The effective tax rate for the nine months ended September 30, 2024 and 2023 differs from the statutory federal income tax rate of 21%, primarily due to state income taxes, net of federal tax benefits, general business credits, stock-based compensation, nondeductible expenses and penalties, cash surrender value growth in bank owned life insurance policies, and the Internal Revenue Code (the "IRC") 162(m) limitation on the deductibility of executive compensation. The net decrease in the effective tax rate for the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023 is primarily due to the impact of a decrease of $1.6 million in the amount of compensation expense that was subject to the IRC 162(m) limitation on the deductibility of certain executive compensation, a decrease of $2.5 million in state income taxes, net of federal benefits, and the impact of general business credits. These decreases were partially offset by a $0.2 million increase in tax expense associated with shortfalls from stock-based compensation, an increase in tax expense due to nondeductible expenses and penalties, and the surrender of our existing bank owned life insurance policies which resulted in a tax charge of $1.5 million and surrender penalties of $0.7 million during the nine months ended September 30, 2024. We recognized a discrete tax expense related to tax shortfalls from stock-based compensation of $3.0 million for the nine months ended September 30, 2024, compared to a $2.8 million discrete tax expense for the prior year comparable period. The increase in nondeductible expenses and penalties for the nine months ended September 30, 2024 is primarily related to the tax effect associated with the civil money penalty for the Consent Order (defined below) discussed in Note 17 - Commitments and Contingencies.
We have made a policy election to account for Global Intangible Low-Taxed Income ("GILTI") in the year the GILTI tax is incurred. For the nine months ended September 30, 2024 and 2023, the provision for GILTI tax expense was not material to our financial statements.
We establish a valuation allowance when we consider it more-likely-than-not that some portion or all of the deferred tax assets will not be realized. As of September 30, 2024 and 2023, we did not have a valuation allowance on any of our deferred tax assets as we believe it is more-likely-than-not that we will realize the benefits of our deferred tax assets.
We are subject to examination by the Internal Revenue Service (the "IRS"), and various state tax authorities. We remain subject to examination of our federal income tax returns for the years ended December 31, 2017 through 2023. We generally remain subject to examination of our various state income tax returns for a period of four to five years from the respective dates that the returns were filed. The IRS initiated an examination of our 2017 U.S. federal tax return during the second quarter ended June 30, 2020, and the examination remains ongoing as of September 30, 2024. We do not expect that this examination will have a material impact on our consolidated financial statements.
15
GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
Note 10—Income Taxes (continued)
As of September 30, 2024, we had federal net operating loss carryforwards of approximately $13.1 million and state net operating loss carryforwards of approximately $108.1 million, which will be available to offset future income. If not used, the federal net operating losses will expire between 2029 and 2035. Of our total state net operating loss carryforwards, approximately $59.0 million will expire between 2026 and 2042, while the remaining balance of approximately $49.1 million does not expire and carries forward indefinitely. The net operating losses are subject to an annual IRC Section 382 limitation, which restricts their utilization against taxable income in future periods. In addition, we have state business tax credits of approximately $21.2 million that can be carried forward indefinitely and other state business tax credits of approximately $0.6 million that will start to expire on December 31, 2024 and continue to expire through December 31, 2027.
As of September 30, 2024 and December 31, 2023, we had a liability of $13.4 million and $12.1 million, respectively, for unrecognized tax benefits related to various federal and state income tax matters excluding interest, penalties and related tax benefits. The reconciliation of the beginning unrecognized tax benefits balance to the ending balance is as follows:
Nine Months Ended September 30,
20242023
(In thousands)
Beginning balance$12,109 $11,178 
Increases related to positions taken during prior years1,380 1,500 
Decreases related to positions settled with tax authorities(86)(90)
Ending balance$13,403 $12,588 
The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate $12,884 $12,129 
As of September 30, 2024 and 2023, we recognized accrued interest and penalties related to unrecognized tax benefits of approximately $1.8 million and $1.3 million, respectively.
Note 11—Stockholders' Equity
Stock Repurchase Program
In February 2022, our Board of Directors authorized a $100 million increase to our stock repurchase program. As of September 30, 2024, we had an authorized $4.5 million remaining under our stock repurchase program for additional repurchases. There were no repurchases during the nine months ended September 30, 2024.
Note 12—Stock-Based Compensation
We currently grant restricted stock unit awards to employees, directors and non-employee consultants under our 2010 Equity Incentive Plan and from time to time may also grant stock option awards. Through our 2010 Employee Stock Purchase Plan, employees are also able to purchase shares of our Class A common stock at a discount through payroll deductions. We have reserved shares of our Class A common stock for issuance under these plans. The total stock-based compensation expense recognized was $8.2 million and $7.9 million for the three months ended September 30, 2024 and 2023, respectively, and $24.1 million and $27.7 million for the nine months ended September 30, 2024 and 2023, respectively.
Restricted Stock Units
Restricted stock unit activity for awards subject to only service conditions was as follows for the nine months ended September 30, 2024:
 SharesWeighted-Average Grant-Date Fair Value
(In thousands, except per share data)
Outstanding at December 31, 2023
2,048 $21.66 
Restricted stock units granted2,233 9.16 
Restricted stock units vested(768)26.15 
Restricted stock units canceled(182)20.93 
Outstanding at September 30, 2024
3,331 $12.28 
16
GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
Note 12—Stock-Based Compensation (continued)
Performance-Based Restricted Stock Units
Performance-based restricted stock unit activity for the nine months ended September 30, 2024 was as follows:
 SharesWeighted-Average Grant-Date Fair Value
(In thousands, except per share data)
Outstanding at December 31, 2023
988 $22.88 
Performance restricted stock units granted996 8.98 
Performance restricted stock units vested(2)50.23 
Performance restricted stock units canceled(88)24.59 
Outstanding at September 30, 2024
1,894 $15.47 
We grant performance-based restricted stock units to certain employees that are subject to the attainment of pre-established internal performance conditions, market conditions, or a combination thereof (collectively referred to herein as "performance-based restricted stock units"). The actual number of shares subject to the award is determined at the end of the performance period and may range from 0% to 200% of the target shares granted depending upon the terms of the award. Compensation expense related to these awards is recognized using the accelerated attribution method over the vesting period based on the grant date fair value of the award.
Stock Options
Total stock option activity for the nine months ended September 30, 2024 was as follows:
 OptionsWeighted-Average Exercise Price
(In thousands, except per share data)
Outstanding at December 31, 2023
1,010 $