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GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
82
Note 14—Fair Value of Financial Instruments (continued)
Investment Securities
The fair values of investment securities have been derived using methodologies referenced in Note 2 – Significant
Accounting Policies. Under the fair value hierarchy, our investment securities are classified as Level 2.
Loans
We determined the fair values of loans by discounting both principal and interest cash flows expected to be collected
using a discount rate commensurate with the risk that we believe a market participant would consider in determining
fair value. Under the fair value hierarchy, our loans are classified as Level 3.
Deposits
The fair value of demand and interest checking deposits and savings deposits is the amount payable on demand
at the reporting date. We determined the fair value of time deposits by discounting expected future cash flows using
market-derived rates based on our market yields on certificates of deposit, by maturity, at the measurement date.
Under the fair value hierarchy, our deposits are classified as Level 2.
Fair Value of Financial Instruments
The carrying values and fair values of certain financial instruments that were not carried at fair value, excluding
short-term financial instruments for which the carrying value approximates fair value, at December 31,
2012 and December 31, 2011 are presented in the table below.
December 31, 2012 December 31, 2011
Carrying Value Fair Value Carrying Value Fair Value
Financial Assets (In thousands)
Loans to bank customers $7,552 $5,719 $10,036 $10,036
Financial Liabilities
Deposits $198,451 $ 198,369 $38,957 $38,957
Note 15—Borrowing Agreements
In connection with the transition of all outstanding customer deposits associated with our card issuing program
with Synovus Bank to our subsidiary bank, our line of credit with Columbus Bank and Trust Company was terminated.
Prior to the termination, we used the line of credit to fund timing differences between funds remitted by our retail
distributors to the banks that issue our cards and funds utilized by our cardholders. For the periods presented below,
our line of credit had the following terms:
Line of Credit Interest Rate Cash Collateral
Requirements
(In millions, except interest rates)
March 2012 - November 2012 $ 10.0 LIBOR + 2.00% $ 10.0
March 2011 - March 2012 $ 10.0 LIBOR + 2.00% $ 10.0
We present our cash collateral requirements on our consolidated balance sheets as restricted cash. There were
no outstanding borrowings at December 31, 2012.