Green Dot 2013 Annual Report Download - page 48

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41
rent expense thereafter. The increase in professional services fees was primarily associated with due diligence work
related to our acquisition of Loopt.
Income Tax Expense
The following table presents a breakdown of our effective tax rate among federal, state and other:
Year Ended December 31,
2012 2011
U.S. federal statutory tax rate 35.0%35.0%
State income taxes, net of federal benefit 1.9 1.6
Employee stock-based compensation 1.4 1.2
Other (0.1) 0.2
Effective tax rate 38.2%38.0%
Our income tax expense decreased by $3.0 million to $28.9 million in the year ended December 31, 2012 from
the comparable period in 2011 due to a decrease in income before income taxes over those same periods, and our
effective tax rate increased 0.2% from 38.0% to 38.2%. The increases in our effective state tax rate and non-deductible
employee stock-based compensation were offset by increases in general business tax credits taken during 2012.
Capital Requirements for Bank Holding Companies
As of December 31, 2013 and December 31, 2012, we were categorized as well capitalized under the regulatory
framework. There were no conditions or events since December 31, 2013 which management believes would have
changed our category as well capitalized. Our actual and the "well capitalized" minimum amounts and ratios were as
follows:
Actual Regulatory "well capitalized"
minimum
Amount Ratio Amount Ratio
(In thousands, except ratios)
December 31, 2013
Tier 1 leverage $370,476 45.8% $ 40,418 5.0%
Tier 1 capital 370,476 100.8 22,057 6.0
Total risk-based capital 370,476 100.8 36,762 10.0
December 31, 2012
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
Liquidity and Capital Resources
The following table summarizes our major sources and uses of cash for the periods presented:
Year Ended December 31,
2013 2012 2011
(In thousands)
Total cash provided by (used in)
Operating activities $ 122,508 $ 102,028 $ 94,051
Investing activities (53,396) (210,320) (50,441)
Financing activities 57,918 179,450 14,320
Increase in unrestricted cash and cash equivalents $ 127,030 $71,158 $57,930
In the years ended December 31, 2013, 2012, 2011 we financed our operations primarily through our cash flows
from operations. At December 31, 2013, our primary source of liquidity was unrestricted cash and cash equivalents
totaling $423.5 million. We also consider our $198.7 million of investment securities available-for-sale to be highly-
liquid instruments.