Green Dot 2014 Annual Report Download - page 49

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Income Tax Expense
The following table presents a breakdown of our effective tax rate among federal, state and other:
Year Ended December 31,
2013 2012
U.S. federal statutory tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.0%35.0%
State income taxes, net of federal benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.2)1.9
General business credits (2.3)(0.4)
Employee stock-based compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.4 1.4
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 0.3
Effective tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.1%38.2%
Our income tax expense decreased by $10.5 million to $18.5 million in the year ended December„31, 2013 from
the comparable period in 2012 due to a decrease in income before income taxes over those same periods and a
decrease in our effective tax rate by 3.1 percentage points from 38.2% to 35.1%, primarily driven by $1.2 million of
general business credits related to 2012 and 2013.
41
Capital Requirements for Bank Holding Companies
As of December„31, 2014 and 2013, we were categorized as well capitalized under the regulatory framework.
There were no conditions or events since December„31, 2014 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, 2014
Tier 1 leverage $200,917 21.3% $ 47,113 5.0%
Tier 1 risk-based capital 200,917 45.4 26,561 6.0
Total risk-based capital 201,368 45.5 44,269 10.0
December 31, 2013
Tier 1 leverage $370,476 45.8% $ 40,418 5.0%
Tier 1 risk-based capital 370,476 100.8 22,057 6.0
Total risk-based capital 370,476 100.8 36,762 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,
2014 2013 2012
(In thousands)
Total cash provided by (used in)
Operating activities $68,975 $122,508 $102,028
Investing activities (187,346)(53,396)(210,320)
Financing activities 419,388 57,918 179,450
Increase in unrestricted cash and cash equivalents $301,017 $127,030 $71,158
During the years ended December„31, 2014, 2013 and 2012 we financed our operations primarily through our
cash flows from operations. Additionally, during the year ended December„31, 2014, we financed certain investing
activities through our borrowings under our senior credit facility. At December„31, 2014, our primary source of liquidity
was unrestricted cash and cash equivalents totaling $724.2 million. We also consider our $120.4 million of investment
securities available-for-sale to be highly-liquid instruments.
We use trend and variance analysis as well as our detailed budgets and forecasts to project future cash needs,
making adjustments to the projections when needed. We believe that our current unrestricted cash and cash equivalents
and cash flows from operations, and borrowing capacity under our senior credit facility will be sufficient to meet our