Green Dot 2013 Annual Report Download - page 55

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48
Deposits
The following table shows Green Dot Bank’s average deposits and the annualized average rate paid on those
deposits for the years ended December 31, 2013, December 31, 2012, and December 31, 2011:
December 31, 2013 December 31, 2012 December 31, 2011
Average
Balance
Weighted-
Average
Rate Average
Balance
Weighted-
Average
Rate Average
Balance
Weighted-
Average
Rate
(In thousands, except percentages)
Interest-bearing deposit accounts
Negotiable order of withdrawal (NOW) $1,607 0.1% $1,650 0.3% $ 1,634 0.3%
Savings deposits 6,230 0.1 6,724 0.3 6,812 0.4
Time deposits, denominations greater
than or equal to $100 5,414 0.9 3,020 0.7 1,383 1.1
Time deposits, denominations less than
$100 2,698 0.6 6,742 0.8 9,779 1.2
Total interest-bearing deposit accounts 15,949 0.5% 18,136 0.5% 19,608 0.8%
Non-interest bearing deposit accounts 271,422 50,151 16,738
Total deposits $ 287,371 $68,287 $36,346
The following table shows the scheduled maturities for Green Dot Bank’s time deposits portfolio greater than
$100,000 at December 31, 2013:
December 31, 2013
(In thousands)
Less than 3 months 605
3 through 6 months 736
6 through 12 months 1,211
Greater than 12 months 867
3,419
Key Financial Ratios
The following table shows certain of Green Dot Bank’s key financial ratios for the years ended December 31, 2013,
and 2012, and the period from December 8, 2011 through December 31, 2011:
December 31, 2013 December 31, 2012 December 31, 2011
Pretax return on assets 1.1% 2.4% —%
Net return on equity 6.5 7.7 0.1
Equity to assets ratio 16.7 31.4 38.4
ITEM 7A. Quantitative and Qualitative Disclosures about Market Risk
Market risk is the potential for economic losses from changes in market factors such as foreign currency exchange
rates, credit, interest rates and equity prices. We believe that we have limited exposure to risks associated with changes
in foreign currency exchange rates, interest rates and equity prices. We have no foreign operations, and we do not
transact business in foreign currencies. We do not hold or enter into derivatives or other financial instruments for trading
or speculative purposes. We do not consider our cash and cash equivalents or our investment securities to be subject
to significant interest rate risk due to their short duration.
We do have exposure to credit and liquidity risk associated with the financial institutions that hold our cash and
cash equivalents, restricted cash, available-for-sale investment securities, settlement assets due from our retail
distributors that collect funds and fees from our customers, and amounts due from our issuing banks for fees collected
on our behalf.
We manage the credit and liquidity risk associated with our cash and cash equivalents, available-for-sale investment
securities and amounts due from issuing banks by maintaining an investment policy that restricts our correspondent
banking relationships to approved, well capitalized institutions and restricts investments to highly liquid, low credit risk
related assets. Our policy has limits related to liquidity ratios, the concentration that we may have with a single institution
or issuer and effective maturity dates as well as restrictions on the type of assets that we may invest in. The management
Asset Liability Committee is responsible for monitoring compliance with our Capital Asset Liability Management policy
and related limits on an ongoing basis, and reports regularly to the audit committee of our board of directors.