Green Dot Corp. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Green Dot Corp. reported increased revenues in Card, Processing, and Interchange segments for Q1 2024 compared to Q1 2023.</b>

AI Summary

GREEN DOT CORP (GDOT) filed a Quarterly Report (10-Q) with the SEC on May 10, 2024. Card Revenues and Other Fees increased for the three months ended March 31, 2024, compared to the same period in 2023. Processing and Settlement Service revenues also saw an increase for the three months ended March 31, 2024, versus the prior year. Interchange Revenues experienced growth in the first quarter of 2024 compared to the first quarter of 2023. The company reported financial data for the periods ending March 31, 2024, December 31, 2023, and March 31, 2023. Financial statements include details on Common Stock, Additional Paid-In Capital, Retained Earnings, and Accumulated Other Comprehensive Income for various periods.

Why It Matters

For investors and stakeholders tracking GREEN DOT CORP, this filing contains several important signals. The filing provides a quarterly update on Green Dot's financial performance, highlighting revenue trends across key business segments. Investors can assess the company's growth trajectory and operational health by examining the revenue figures and their year-over-year changes.

Risk Assessment

Risk Level: — GREEN DOT CORP shows moderate risk based on this filing. The filing is a standard 10-Q, indicating routine financial reporting. However, specific growth rates and net income figures are not detailed in the provided text, requiring further analysis of the full document to assess financial health and potential risks.

Analyst Insight

Review the full 10-Q filing to analyze specific revenue growth percentages, net income, and any disclosed risk factors to form a comprehensive investment thesis.

Revenue Breakdown

Key Numbers

• 2024-03-31 — Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-05-10 — Filing Date (FILED AS OF DATE)

Key Players & Entities

• GREEN DOT CORP (company) — FILER
• 0001386278 (company) — CENTRAL INDEX KEY
• 2024-03-31 (date) — CONFORMED PERIOD OF REPORT
• 2024-05-10 (date) — FILED AS OF DATE
• 6267652000 (dollar_amount) — BUSINESS PHONE

FAQ

Industry Context

Green Dot Corporation operates in the financial services sector, focusing on prepaid debit cards and related financial technology services.

Regulatory Implications

The filing is a Form 10-Q, a quarterly report required by the U.S. Securities and Exchange Commission (SEC) for publicly traded companies.

What Investors Should Do

1. Analyze the full 10-Q for detailed revenue figures and growth rates for each segment.
2. Examine the balance sheet and cash flow statements for the company's financial health.
3. Review any management discussion and analysis (MD&A) for insights into performance drivers and future outlook.

Year-Over-Year Comparison

This filing is a 10-Q for the quarter ended March 31, 2024, providing updated financial information compared to previous filings.

Key Financial Figures

• $0.001 — hich registered: Class A Common Stock, $0.001 par value GDOT New York Stock Exchange

Filing Documents

• gdot-20240331.htm (10-Q) — 1518KB
• exb311-gdot03312024.htm (EX-31.1) — 11KB
• exb312-gdot03312024.htm (EX-31.2) — 11KB
• exb321-gdot03312024.htm (EX-32.1) — 6KB
• exb322-gdot03312024.htm (EX-32.2) — 6KB
• gdot-20240331_g1.jpg (GRAPHIC) — 102KB
• 0001386278-24-000031.txt (&nbsp;) — 8457KB
• gdot-20240331.xsd (EX-101.SCH) — 46KB
• gdot-20240331_cal.xml (EX-101.CAL) — 96KB
• gdot-20240331_def.xml (EX-101.DEF) — 241KB
• gdot-20240331_lab.xml (EX-101.LAB) — 700KB
• gdot-20240331_pre.xml (EX-101.PRE) — 481KB
• gdot-20240331_htm.xml (XML) — 1328KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 1 Consolidated Balance Sheets – March 31, 2024 and December 31, 2023 1 Consolidated Statements of Operations – Three Months Ended March 31, 2024 and 2023 2 Consolidated Statements of Comprehensive Income – Three Months Ended March 31, 2024 and 2023 3 Consolidated Statements of Changes in Stockholders' Equity – Three Months Ended March 31, 2024 and 2023 4 Consolidated Statements of Cash Flows – Three Months Ended March 31, 2024 and 2023 5

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 6

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 24

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 40

Controls and Procedures

Item 4. Controls and Procedures 41

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 42

Risk Factors

Item 1A. Risk Factors 42

Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 56

Other Information

Item 5. Other Information 56

Exhibits

Item 6. Exhibits 57 Signature 58 Table of Contents PART I

Financial Statements

ITEM 1. Financial Statements GREEN DOT CORPORATION CONSOLIDATED BALANCE SHEETS March 31, 2024 December 31, 2023 (unaudited) Assets (In thousands, except par value) Current assets: Unrestricted cash and cash equivalents $ 1,118,804 $ 682,263 Restricted cash 226 4,239 Investment securities available-for-sale, at fair value 60,117 33,859 Settlement assets 876,101 737,989 Accounts receivable, net 89,325 110,141 Prepaid expenses and other assets 79,853 69,419 Total current assets 2,224,426 1,637,910 Investment securities available-for-sale, at fair value 2,118,855 2,203,142 Loans to bank customers, net of allowance for credit losses of $ 10,376 and $ 11,383 as of March 31, 2024 and December 31, 2023, respectively 39,629 30,534 Prepaid expenses and other assets 213,590 221,656 Property, equipment, and internal-use software, net 175,125 179,376 Operating lease right-of-use assets 4,614 5,342 Deferred expenses 1,404 1,546 Net deferred tax assets 129,314 117,139 Goodwill and intangible assets 414,067 420,477 Total assets $ 5,321,024 $ 4,817,122 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 107,826 $ 119,870 Deposits 3,743,301 3,293,603 Obligations to customers 356,529 314,278 Settlement obligations 66,178 57,001 Amounts due to card issuing banks for overdrawn accounts 111 225 Other accrued liabilities 110,405 91,239 Operating lease liabilities 3,388 3,369 Deferred revenue 5,628 6,343 Line of credit 45,000 61,000 Income tax payable 8,509 6,262 Total current liabilities 4,446,875 3,953,190 Other accrued liabilities 1,682 1,895 Operating lease liabilities 1,821 2,687 Total liabilities 4,450,378 3,957,772 Commitments and contingencies (Note 17) Stockholders' equity: Class A common stock, $ 0.001 par value; 100,000 shares authorized as of March 31, 2024 and December 31, 2023; 53,158 and 52,816 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively 53 53 Additional paid-in

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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, 2023 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, 2024. In our opinion, the accompanying unaudited consolidated financial sta

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED) Note 3— Revenues As discussed in Note 19 — Segment Informatio n, 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 March 31, 2024 Consumer Services B2B Services Money Movement Services Total Timing of recognition (In thousands) Transferred point in time $ 70,864 $ 33,800 $ 106,043 $ 210,707 Transferred over time 27,143 200,641 786 228,570 Operating revenues (1) $ 98,007 $ 234,441 $ 106,829 $ 439,277 Three Months Ended March 31, 2023 Consumer Services B2B Services Money Movement Services Total Timing of recognition (In thousands) Transferred point in time $ 90,807 $ 34,288 $ 97,523 $ 222,618 Transferred over time 45,820 136,548 718 183,086 Operating revenues (1) $ 136,627 $ 170,836 $ 98,241 $ 405,704 (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 manag

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED) Note 4— Investment Securities Our available-for-sale investment securities were as follows: Amortized cost Gross unrealized gains Gross unrealized losses Fair value (In thousands) March 31, 2024 Corporate bonds $ 10,000 $ — $ ( 333 ) $ 9,667 Agency bond securities 240,492 — ( 41,965 ) 198,527 Agency mortgage-backed securities 2,292,157 — ( 344,683 ) 1,947,474 Municipal bonds 29,309 — ( 6,005 ) 23,304 Total investment securities $ 2,571,958 $ — $ ( 392,986 ) $ 2,178,972 December 31, 2023 Corporate bonds $ 10,000 $ — $ ( 374 ) $ 9,626 Agency bond securities 240,447 — ( 40,217 ) 200,230 Agency mortgage-backed securities 2,337,411 — ( 333,901 ) 2,003,510 Municipal bonds 29,408 — ( 5,773 ) 23,635 Total investment securities $ 2,617,266 $ — $ ( 380,265 ) $ 2,237,001 As of March 31, 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 months 12 months or more Total fair value Total unrealized loss Fair value Unrealized loss Fair value Unrealized loss (In thousands) March 31, 2024 Corporate bonds $ — $ — $ 9,667 $ ( 333 ) $ 9,667 $ ( 333 ) Agency bond securities — — 198,527 ( 41,965 ) 198,527 ( 41,965 ) Agency mortgage-backed securities 2,219 ( 1 ) 1,945,250 ( 344,682 ) 1,947,469 ( 344,683 ) Municipal bonds — — 23,304 ( 6,005 ) 23,304 ( 6,005 ) Total investment securities $ 2,219 $ ( 1 ) $ 2,176,748 $ ( 392,985 ) $ 2,178,967 $ ( 392,986 ) 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 ) Our investments generally consist of highly

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED) Note 4—Investment Securities (continued) As of March 31, 2024, the contractual maturities of our available-for-sale investment securities were as follows: Amortized cost Fair value (In thousands) Due in one year or less $ 60,691 $ 60,117 Due after one year through five years 81,268 72,799 Due after five years through ten years 144,224 117,497 Due after ten years 54,309 41,202 Mortgage and asset-backed securities 2,231,466 1,887,357 Total investment securities $ 2,571,958 $ 2,178,972 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, 2024 December 31, 2023 (In thousands) Trade receivables $ 36,211 $ 29,786 Reserve for uncollectible trade receivables ( 79 ) ( 109 ) Net trade receivables 36,132 29,677 Overdrawn accountholder balances from purchase transactions 7,670 9,565 Reserve for uncollectible overdrawn accounts from purchase transactions ( 4,143 ) ( 5,281 ) Net overdrawn accountholder balances from purchase transactions 3,527 4,284 Accountholder fees 2,236 2,564 Receivables due from card issuing banks 1,885 1,768 Fee advances, net 3,169 41,974 Other receivables 42,376 29,874 Accounts receivable, net $ 89,325 $ 110,141 Activity in the reserve for uncollectible overdrawn accounts from purchase transactions consisted of the following: Three Months Ended March 31, 2024 2023 (In thousands) Balance, beginning of period $ 5,281 $ 2,230 Provision for uncollectible overdrawn accounts from purchase transactions 7,623 1,188 Charge-offs ( 8,761 ) ( 1,126 ) Balance, end of period $ 4,143 $ 2,292 9 Table of Contents GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

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 Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Total Current or Less Than 30 Days Past Due Total Outstanding (In thousands) March 31, 2024 Residential $ — $ — $ — $ — $ 5,763 $ 5,763 Commercial — — — — 12,811 12,811 Installment — — — — 4,270 4,270 Consumer 1,543 — — 1,543 16,252 17,795 Secured credit card 731 712 2,448 3,891 5,475 9,366 Total loans $ 2,274 $ 712 $ 2,448 $ 5,434 $ 44,571 $ 50,005 Percentage of outstanding 4.6 % 1.4 % 4.9 % 10.9 % 89.1 % 100.0 % December 31, 2023 Residential $ — $ — $ — $ — $ 5,095 $ 5,095 Commercial — — — — 2,716 2,716 Installment — — — — 4,357 4,357 Consumer 2,066 — — 2,066 17,953 20,019 Secured credit card 796 774 2,575 4,145 5,585 9,730 Total loans $ 2,862 $ 774 $ 2,575 $ 6,211 $ 35,706 $ 41,917 Percentage of outstanding 6.8 % 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 card 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. 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 March 3

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

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 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: March 31, 2024 December 31, 2023 Non-Classified Classified Non-Classified Classified (In thousands) Residential $ 5,717 $ 46 $ 5,046 $ 49 Commercial 12,811 — 2,716 — Installment 4,194 76 4,278 79 Consumer 17,795 — 20,019 — Secured credit card 6,918 2,448 7,155 2,575 Total loans $ 47,435 $ 2,570 $ 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 March 31, 2024 2023 (In thousands) Balance, beginning of period $ 11,383 $ 9,078 Provision for loans 4,788 10,252 Loans charged off ( 5,859 ) ( 6,101 ) Recoveries of loans previously charged off 64 25 Balance, end of period $ 10,376 $ 13,254 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, servi

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