Green Dot 2014 Annual Report Download - page 95

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Note 20—Significant Customer Concentration (continued)
Unit Concentrations
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,
2014 2013 2012
Concentration of GPR cards activated (in units) 70% 82% 87%
Concentration of sales of cash transfer products (in units) 83% 87% 88%
Settlement Asset Concentrations
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, 2014 December 31, 2013
Walmart 22% 34%
Three other largest retail distributors, as a group 6% 39%
Other Concentrations
At December„31, 2013, the customer funds underlying the Walmart co-branded GPR cards were held by GE Capital
Retail Bank. These funds were held in trust for the benefit of the customers, and we had no legal rights to the customer
funds. Additionally, we had receivables due from GE Capital Retail Bank that are included in accounts receivable, net,
on our consolidated balance sheets.
GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
87
Note 21—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, 2014, 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 1 risk-based,
and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since December„31, 2014
which management believes would have changed our category as well capitalized.
The actual amounts and ratios, and required minimum capital amounts and ratios by which we exceed these
minimum ratios at December„31, 2014 and 2013 were as follows:
Actual Regulatory "well capitalized" minimum
Amount Ratio Amount Ratio
December 31, 2014 (In thousands, except ratios)
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