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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 March 31, 2022
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
gdot-20220331_g1.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 filerAccelerated filer
Non-accelerated filerSmaller 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 54,212,482 shares of Class A common stock outstanding, par value $.001 per share as of April 30, 2022.



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



PART I
ITEM 1. Financial Statements
GREEN DOT CORPORATION
CONSOLIDATED BALANCE SHEETS
March 31, 2022December 31, 2021
(unaudited)
Assets(In thousands, except par value)
Current assets:  
Unrestricted cash and cash equivalents$1,320,743 $1,322,319 
Restricted cash5,899 3,321 
Settlement assets500,258 320,377 
Accounts receivable, net68,600 80,401 
Prepaid expenses and other assets65,916 81,380 
Income tax receivable 1,354 
Total current assets1,961,416 1,809,152 
Investment securities available-for-sale, at fair value2,168,888 2,115,501 
Loans to bank customers, net of allowance for loan losses of $9,058 and $5,555 as of March 31, 2022 and December 31, 2021, respectively
24,663 19,270 
Prepaid expenses and other assets203,674 136,400 
Property, equipment, and internal-use software, net139,308 135,341 
Operating lease right-of-use assets10,305 10,967 
Deferred expenses11,068 16,855 
Net deferred tax assets49,105 15,048 
Goodwill and intangible assets460,130 466,943 
Total assets$5,028,557 $4,725,477 
Liabilities and Stockholders’ Equity  
Current liabilities:  
Accounts payable$66,605 $51,353 
Deposits3,605,722 3,286,889 
Obligations to customers214,587 124,221 
Settlement obligations506 15,682 
Amounts due to card issuing banks for overdrawn accounts479 513 
Other accrued liabilities109,200 128,294 
Operating lease liabilities5,832 6,918 
Deferred revenue20,167 28,903 
Income tax payable10,919 291 
Total current liabilities4,034,017 3,643,064 
Other accrued liabilities3,239 3,531 
Operating lease liabilities7,357 8,209 
Total liabilities4,044,613 3,654,804 
Commitments and contingencies (Note 17)
Stockholders’ equity:  
Class A common stock, $0.001 par value; 100,000 shares authorized as of March 31, 2022 and December 31, 2021; 54,293 and 54,868 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively
54 55 
Additional paid-in capital388,299 401,055 
Retained earnings737,994 699,370 
Accumulated other comprehensive loss(142,403)(29,807)
Total stockholders’ equity983,944 1,070,673 
Total liabilities and stockholders’ equity$5,028,557 $4,725,477 
See notes to unaudited consolidated financial statements
1

GREEN DOT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended March 31,
 20222021
 (In thousands, except per share data)
Operating revenues:
Card revenues and other fees$212,828 $186,012 
Cash processing revenues100,028 90,915 
Interchange revenues78,856 111,226 
Interest income, net8,905 5,333 
Total operating revenues400,617 393,486 
Operating expenses:
Sales and marketing expenses83,526 118,903 
Compensation and benefits expenses66,264 74,967 
Processing expenses112,092 97,669 
Other general and administrative expenses87,143 67,962 
Total operating expenses349,025 359,501 
Operating income51,592 33,985 
Interest expense, net87 37 
Other expense, net770 1,086 
Income before income taxes50,735 32,862 
Income tax expense12,111 7,127 
Net income$38,624 $25,735 
Basic earnings per common share:$0.70 $0.47 
Diluted earnings per common share:$0.70 $0.46 
Basic weighted-average common shares issued and outstanding:54,556 53,651 
Diluted weighted-average common shares issued and outstanding:55,230 55,068 
See notes to unaudited consolidated financial statements
2

GREEN DOT CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
Three Months Ended March 31,
20222021
(In thousands)
Net income$38,624 $25,735 
Other comprehensive (loss) income
Unrealized holding loss, net of tax(112,596)(22,544)
Comprehensive (loss) income$(73,972)$3,191 
See notes to unaudited consolidated financial statements
3

GREEN DOT CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(UNAUDITED)
Three Months Ended March 31, 2022
Class A Common StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive LossTotal Stockholders' Equity
SharesAmount
(In thousands)
Balance at December 31, 202154,868 $55 $401,055 $699,370 $(29,807)$1,070,673 
Common stock issued under stock plans, net of withholdings and related tax effects206  (2,615)  (2,615)
Stock-based compensation  14,858   14,858 
Repurchases of Class A Common Stock(781)(1)(24,999)  (25,000)
Net income   38,624  38,624 
Other comprehensive loss    (112,596)(112,596)
Balance at March 31, 202254,293 $54 $388,299 $737,994 $(142,403)$983,944 

Three Months Ended March 31, 2021
Class A Common StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Total Stockholders' Equity
SharesAmount
(In thousands)
Balance at December 31, 202054,034 $54 $354,460 $651,890 $3,428 $1,009,832 
Common stock issued under stock plans, net of withholdings and related tax effects355 — (6,771)— — (6,771)
Stock-based compensation— — 17,237 — — 17,237 
Net income— — — 25,735 — 25,735 
Other comprehensive loss— — — — (22,544)(22,544)
Balance at March 31, 202154,389 $54 $364,926 $677,625 $(19,116)$1,023,489 
See notes to unaudited consolidated financial statements
4

GREEN DOT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
 Three Months Ended March 31,
 20222021
 (In thousands)
Operating activities  
Net income$38,624 $25,735 
Adjustments to reconcile net income to net cash provided by operating activities:  
Depreciation and amortization of property, equipment and internal-use software13,804 13,200 
Amortization of intangible assets6,517 6,944 
Provision for uncollectible overdrawn accounts from purchase transactions4,700 2,994 
Provision for loan losses10,499 1,410 
Stock-based compensation14,858 17,237 
Losses in equity method investments1,708 875 
Amortization of (discount) premium on available-for-sale investment securities(290)659 
Impairment of long-lived assets2,263  
Other(583)42 
Changes in operating assets and liabilities:
Accounts receivable, net7,101 (11,515)
Prepaid expenses and other assets13,306 (1,786)
Deferred expenses5,787 6,091 
Accounts payable and other accrued liabilities(4,430)20,201 
Deferred revenue(8,934)(7,159)
Income tax receivable/payable12,023 7,169 
Other, net(1,311)(1,425)
Net cash provided by operating activities115,642 80,672 
Investing activities  
Purchases of available-for-sale investment securities(288,958)(95,332)
Proceeds from maturities of available-for-sale securities86,106 34,364 
Proceeds from sales and calls of available-for-sale securities2,875 5,198 
Payments for acquisition of property and equipment(19,010)(10,474)
Net changes in loans(14,693)(6,488)
Investment in TailFin Labs, LLC(35,000)(35,000)
Purchases of other investments(31,934) 
Other investing activities (529)
Net cash used in investing activities(300,614)(108,261)
Financing activities
Borrowings on revolving line of credit50,000  
Repayments on revolving line of credit(50,000) 
Proceeds from exercise of options and ESPP purchases92 1,780 
Taxes paid related to net share settlement of equity awards(2,707)(8,551)
Net changes in deposits318,280 859,868 
Net changes in settlement assets and obligations to customers(104,691)395,482 
Contingent consideration payments (1,000)
Repurchase of Class A common stock(25,000) 
Net cash provided by financing activities185,974 1,247,579 
Net increase in unrestricted cash, cash equivalents and restricted cash1,002 1,219,990 
Unrestricted cash, cash equivalents and restricted cash, beginning of period1,325,640 1,496,701 
Unrestricted cash, cash equivalents and restricted cash, end of period$1,326,642 $2,716,691 
Cash paid for interest$180 $84 
Cash refund from income taxes$(11)$(20)
Reconciliation of unrestricted cash, cash equivalents and restricted cash at end of period:
Unrestricted cash and cash equivalents$1,320,743 $2,711,791 
Restricted cash5,899 4,900 
Total unrestricted cash, cash equivalents and restricted cash, end of period$1,326,642 $2,716,691 
See notes to unaudited consolidated financial statements
5

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. We offer a broad set of financial services to consumers and businesses including debit, checking, credit, prepaid, and payroll cards, as well as robust money processing services, such as tax refunds, 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, 2021 for additional disclosures, including a summary of our significant accounting policies. There have been no material changes to our significant accounting policies during the three months ended March 31, 2022, other than the adoption of the accounting pronouncements discussed herein. 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 March 31, 2022 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 the uncertainty around the magnitude, duration and effects of the COVID-19 pandemic, as well as other factors.
Recent Accounting Pronouncements    
Recently adopted accounting pronouncements
In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”), which simplifies an issuer’s accounting for convertible instruments and its application of the derivatives scope exception for contracts in its own equity. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. We adopted the provisions of ASU 2020-06 on January 1, 2022, the results of which did not have a material impact on our consolidated financial statements.
6

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 only to customers within the United States.
The following table disaggregates our revenues earned from external customers by each of our reportable segments:
Three Months Ended March 31, 2022
Consumer ServicesB2B ServicesMoney Movement ServicesTotal
Timing of recognition(In thousands)
Transferred point in time$94,890 $41,223 $96,404 $232,517 
Transferred over time59,529 98,754 912 159,195 
Operating revenues (1)
$154,419 $139,977 $97,316 $391,712 
Three Months Ended March 31, 2021
Consumer ServicesB2B ServicesMoney Movement ServicesTotal
Timing of recognition(In thousands)
Transferred point in time$112,652 $48,859 $89,120 $250,631 
Transferred over time66,026 70,249 1,247 137,522 
Operating revenues (1)
$178,678 $119,108 $90,367 $388,153 
(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 intersegment revenues.
Revenues recognized at a point in time are comprised of interchange fees, ATM fees, overdraft protection fees, other similar cardholder 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 partner program management fees.
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 $16.5 million and $17.6 million for the three months ended March 31, 2022 and 2021, 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 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.
7

GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
Note 4—Investment Securities
Our available-for-sale investment securities were as follows:
Amortized costGross unrealized gainsGross unrealized lossesFair value
(In thousands)
March 31, 2022
Corporate bonds$10,000 $ $(264)$9,736 
Agency bond securities230,841  (25,448)205,393 
Agency mortgage-backed securities2,083,757 111 (159,255)1,924,613 
Municipal bonds25,256  (2,653)22,603 
Asset-backed securities6,508 40 (5)6,543 
Total investment securities$2,356,362 $151 $(187,625)$2,168,888 
December 31, 2021
Corporate bonds$10,000 $ $(27)$9,973 
Agency bond securities230,841  (9,245)221,596 
Agency mortgage-backed securities1,879,793 806 (32,268)1,848,331 
Municipal bonds28,135 288 (243)28,180 
Asset-backed securities7,326 99 (4)7,421 
Total investment securities$2,156,095 $1,193 $(41,787)$2,115,501 
As of March 31, 2022 and December 31, 2021, 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)
March 31, 2022
Corporate bonds$9,736 $(264)$ $ $9,736 $(264)
Agency bond securities  205,393 (25,448)205,393 (25,448)
Agency mortgage-backed securities1,476,098 (115,452)441,822 (43,803)1,917,920 (159,255)
Municipal bonds22,568 (2,653)  22,568 (2,653)
Asset-backed securities1,526 (5)  1,526 (5)
Total investment securities$1,509,928 $(118,374)$647,215 $(69,251)$2,157,143 $(187,625)
December 31, 2021
Corporate bonds$9,973 $(27)$ $ $9,973 $(27)
Agency bond securities$52,865 $(2,128)$168,730 $(7,117)$221,595 $(9,245)
Agency mortgage-backed securities1,661,091 (27,899)106,510 (4,369)1,767,601 (32,268)
Municipal bonds9,678 (243)  9,678 (243)
Asset-backed securities2,358 (4)  2,358 (4)
Total investment securities$1,735,965 $(30,301)$275,240 $(11,486)$2,011,205 $(41,787)
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 significant credit-related impairment losses during the three months ended March 31, 2022 or 2021 on our available-for-sale investment securities. Unrealized losses as of March 31, 2022 and December 31, 2021 are the result of recent fluctuations in interest rates as our investment portfolio is comprised predominantly of fixed rate securities. We do not 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.
8

GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
Note 4—Investment Securities (continued)
As of March 31, 2022, the contractual maturities of our available-for-sale investment securities were as follows:
Amortized costFair value
(In thousands)
Due after one year through five years$10,000 $9,736 
Due after five years through ten years190,841 171,149 
Due after ten years65,256 56,847 
Mortgage and asset-backed securities2,090,265 1,931,156 
Total investment securities$2,356,362 $2,168,888 
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:
March 31, 2022December 31, 2021
 (In thousands)
Trade receivables$26,735 $33,921 
Reserve for uncollectible trade receivables(52)(82)
Net trade receivables26,683 33,839 
Overdrawn cardholder balances from purchase transactions5,931 5,395 
Reserve for uncollectible overdrawn accounts from purchase transactions(4,348)(3,394)
Net overdrawn cardholder balances from purchase transactions1,583 2,001 
Cardholder fees4,097 4,054 
Receivables due from card issuing banks4,408 4,645 
Fee advances, net3,113 20,643 
Other receivables28,716 15,219 
Accounts receivable, net$68,600 $80,401 
Activity in the reserve for uncollectible overdrawn accounts from purchase transactions consisted of the following:
 Three Months Ended March 31,
 20222021
 (In thousands)
Balance, beginning of period$3,394 $1,653 
Provision for uncollectible overdrawn accounts from purchase transactions4,700 2,994 
Charge-offs(3,746)(2,367)
Balance, end of period$4,348 $2,280 
9

GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
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)
March 31, 2022
Residential$ $ $ $ $4,401 $4,401 
Commercial    2,546 2,546 
Installment    1,317 1,317 
Consumer1,964   1,964 17,244 19,208 
Secured credit card505 513 2,030 3,048 3,201 6,249 
Total loans$2,469 $513 $2,030 $5,012 $28,709 $33,721 
Percentage of outstanding7.3 %1.5 %6.0 %14.9 %85.1 %100.0 %
December 31, 2021
Residential$ $ $ $ $3,722 $3,722 
Commercial    3,392 3,392 
Installment  3 3 1,340 1,343 
Consumer2,244   2,244 7,788 10,032 
Secured credit card43 98 853 994 5,342 6,336 
Total loans$2,287 $98 $856 $3,241 $21,584 $24,825 
Percentage of outstanding9.2 %0.4 %3.5 %13.1 %86.9 %100.0 %
We offer an optional overdraft protection program service on certain demand deposit account programs that allows cardholders who opt-in to spend up to a pre-authorized amount in excess of their available card balance. When overdrawn, the purchase related balances due on these deposit accounts are reclassified as consumer loans. Fees due from our cardholders for our overdraft service are included as a component of accounts receivable. Overdrawn balances are unsecured and considered immediately due from the cardholder.
In December 2021, we made the determination to sell a portion of our secured credit card portfolio. As of December 31, 2021, this portion of our secured credit card portfolio was reclassified as loans held for sale, and is included in the long-term portion of prepaid and other assets on our consolidated balance sheets. Upon re-classification, we reversed any previous allowance for credit loss on these portfolios and recorded an estimated valuation allowance to reflect the portfolio at its estimated fair value. Changes in valuation allowances are recorded as a component of other income and expenses on our consolidated statement of operations. As of March 31, 2022 and December 31, 2021, the fair value of the loans held for sale amounted to approximately $4.5 million and $5.1 million, respectively.
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, 2021 for further information on the criteria for classification as nonperforming.
March 31, 2022December 31, 2021
(In thousands)
Residential$184 $195 
Installment110 115 
Secured credit card2,030 853 
Total loans$2,324 $1,163 

10

GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
Note 6—Loans to Bank Customers (continued)
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 cardholder 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:
March 31, 2022December 31, 2021
Non-ClassifiedClassifiedNon-ClassifiedClassified
(In thousands)
Residential$4,160 $241 $3,481 $241 
Commercial2,546  3,392  
Installment1,202 115 1,228 115 
Consumer19,208  10,032  
Secured credit card4,219 2,030 5,483 853 
Total loans$31,335 $2,386 $23,616 $1,209 
Allowance for Credit Losses
Activity in the allowance for credit losses on our loan portfolio consisted of the following:
Three Months Ended March 31,
20222021
(In thousands)
Balance, beginning of period$5,555 $757 
Provision for loans10,499 1,410 
Loans charged off(6,996)(707)
Recoveries of loans previously charged off 71 
Balance, end of period$9,058 $1,531 
Activity within our allowance for credit losses increased during the comparable periods principally due to the introduction of our optional overdraft protection program services on certain demand deposit accounts and other consumer advances related to our tax processing services.
11

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.
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 wi