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GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
85
Note 19—Significant Customer Concentration (continued)
The concentration of GPR cards activated (in units) and the concentration of sales of cash transfer products (in
units) derived from our products sold at our four largest retail distributors was as follows:
Year Ended December 31,
2012 2011 2010
Concentration of GPR cards activated (in units) 87% 80% 84%
Concentration of sales of cash transfer products (in units) 88% 90% 93%
Settlement assets derived from our products sold at our four largest retail distributors comprised the following
percentages of the settlement assets recorded on our consolidated balance sheet:
December 31,
2012 2011
Walmart 35% 33%
Three other largest retail distributors, as a group 38% 39%
At December 31, 2012 the customer funds underlying the Walmart co-branded GPR cards were held by GE Capital
Retail Bank. These funds are held in trust for the benefit of the customers, and we have no legal rights to the customer
funds. Additionally, we have receivables due from GE Capital Retail Bank that are included in accounts receivable,
net, on our consolidated balance sheets. The failure of this entity could result in significant business disruption, a
potential material adverse affect on our ability to service our customers, potential contingent obligations by us to
customers and material write-offs of uncollectible receivables.
Note 20—Regulatory Requirements
Our subsidiary bank, Green Dot Bank, is a member bank of the Federal Reserve System and our primary regulator
is the Federal Reserve Board. We are subject to various regulatory capital requirements administered by the federal
banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory actions by regulators
that, if undertaken, could have a direct material effect on our financial statements. Under capital adequacy guidelines,
we must meet specific capital guidelines that involve quantitative measures of the assets, liabilities and certain off-
balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are
also subject to qualitative judgments by the regulators about components, risk weightings and other factors.
As of December 31, 2012, we were categorized as well capitalized under the regulatory framework for prompt
corrective action. To be categorized as well capitalized, we must maintain specific total risk-based, Tier I risk-based,
and Tier I leverage ratios as set forth in the table below. There are no conditions or events since December 31, 2012
which management believes would have changed our category as well capitalized. We were not subject to these
requirements as of December 31, 2010.
The actual, required minimum and amount we exceed the minimum capital amounts and ratios at December 31,
2012 and 2011 are as follows:
Actual Regulatory "well capitalized" minimum
Amount Ratio Amount Ratio
December 31, 2012 (In thousands, except ratios)
Tier 1 leverage 289,323 47.8% 30,266 5.0%
Tier 1 risk-based capital 289,323 84.3% 20,591 6.0%
Total risk-based capital 289,323 84.3% 34,318 10.0%
December 31, 2011
Tier 1 leverage 228,971 69.1% 16,578 5.0%
Tier 1 risk-based capital 228,971 80.7% 13,738 6.0%
Total risk-based capital 228,971 80.7% 28,374 10.0%