Green Dot 2014 Annual Report Download - page 79

Download and view the complete annual report

Please find page 79 of the 2014 Green Dot annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 106

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106

Note 6—Loans to Bank Customers (continued)
Impaired Loans and Troubled Debt Restructurings
When, for economic or legal reasons related to a borrower’s financial difficulties, we grant a concession for other
than an insignificant period of time to a borrower that we would not otherwise consider, the related loan is classified
as a Troubled Debt Restructuring, or TDR. Our TDR modifications related to extensions of the maturity dates at a
stated interest rate lower than the current market rate for new debt with similar risk. The following table presents our
impaired loans and loans that we modified in TDRs as of December„31, 2014 and 2013:
December 31, 2014 December 31, 2013
Unpaid Principal
Balance Carrying Value
Unpaid Principal
Balance Carrying Value
(In thousands)
Real estate $97 $54 $194 $117
Commercial 270 31 344 106
Installment 367 104 500 250
Allowance for Loan Losses
Activity in the allowance for loan losses consisted of the following:
Year Ended December 31,
2014 2013 2012
(In thousands)
Balance, beginning of period $464 $475 $—
Provision for loans 20 — 698
Loans charged off (66)(25)(223)
Recoveries of loans previously charged off 26 14 —
Balance, end of period $444 $464 $475
GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
71
Note 7—Property and Equipment
Property and equipment consisted of the following:
December 31,
2014 2013
(In thousands)
Land $205 $205
Building 605 461
Computer equipment, furniture, and office equipment 45,525 34,508
Computer software purchased 20,363 13,123
Capitalized internal-use software 89,023 62,871
Tenant improvements 9,172 7,482
164,893 118,650
Less accumulated depreciation and amortization (87,609)(58,177)
Property and equipment, net $77,284 $60,473
Depreciation and amortization expense was $32.5 million, $27.1 million and $18.1 million for the years ended
December„31, 2014, 2013 and 2012, respectively. Included in those amounts are depreciation expense related to
internal-use software of $18.4 million, $15.0 million and $9.7 million for the years ended December„31, 2014, 2013
and 2012, respectively. The net carrying value of capitalized internal-use software was $39.8 million and $28.1 million
at December„31, 2014 and 2013, respectively.