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ANNUAL REPORT
2015
GREEN DOT CORPORATION 2015 ANNUAL REPORT

Table of contents

  • Page 1
    2015 ANNUAL REPORT

  • Page 2

  • Page 3
    ...the registrant) as of June 30, 2015, the last business day of the registrant's most recently completed second fiscal quarter, was approximately $895.6 million (based on the closing sale price of the registrant's common stock on that date as reported on the New York Stock Exchange). There were 50,113...

  • Page 4
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  • Page 5
    ...Selected Financial Data ...Management's Discussion and Analysis of Financial Condition and Results of Operations . . Quantitative and Qualitative Disclosures About Market Risk ...Financial Statements and Supplementary Data ...Changes in and Disagreements with Accountants on Accounting and Financial...

  • Page 6
    ...the term "GPR cards" refers to general purpose reloadable prepaid debit cards, the term "prepaid cards" refers to prepaid debit cards and the term "our cards" refers to our Green Dot-branded and co-branded GPR cards. In addition, "prepaid financial services" refers to GPR cards and associated reload...

  • Page 7
    ... mobile checking account and a top 20 debit card issuer among all banks and credit unions in the country. Through our wholly-owned subsidiary, SBBT Holdings, LLC ("TPG"), we are also the largest processor of tax refund disbursements in the U.S. Our products and services are available to consumers...

  • Page 8
    ...card accounts are prepaid debit accounts issued by Green Dot Bank (or other partner banks) with deposits on those cards insured by the FDIC. GPR cards are designed for general spending purposes and are reloadable for ongoing long-term use. To purchase a GPR card in a retail store location, consumers...

  • Page 9
    ... receive an unfunded card in the mail and then can reload the card either through a cash reload or an ACH deposit transaction. Network Acceptance Members. A large number of program managers that offer their own prepaid cards accept funds through the Green Dot Network. We provide reload services...

  • Page 10
    ...core businesses include the offering of prepaid cards, checking accounts and financial transaction processing services to a wide range of consumers through broad, national distribution channels. Consequently, we compete against companies across the retail banking, financial services, and transaction...

  • Page 11
    ... to time, new entrants introduce prepaid card products or other products that seek to target that similar customer that could increase competition in this market. Reload Networks We offer our POS swipe reload proprietary products, which enable cash loading and transfer services through our Green Dot...

  • Page 12
    ... day-to-day operations. Our products and services are generally subject to federal, state and local laws and regulations, including anti-money laundering laws; money transfer and payment instrument licensing regulations; escheatment laws; privacy and information safeguard laws; banking regulations...

  • Page 13
    ...of our acquisition of Bonneville Bancorp, the holding company of Bonneville Bank, a state-chartered Utah bank, which was renamed Green Dot Bank after the acquisition. We and our subsidiary bank are extensively regulated under federal and state laws, which, in general, results in increased compliance...

  • Page 14
    ...ability to pay dividends. Federal and state banking regulations applicable to bank holding companies and banks generally require that dividends be paid from earnings and, as described under "- Capital Adequacy" below, require minimum levels of capital, which limits the funds available for payment of...

  • Page 15
    ... by our business strategies. Issuing Banks. All of the GPR cards that we provide and the Walmart gift cards we service are issued by Green Dot Bank or either a federally- or state-chartered third-party bank. Thus, we are subject to the oversight of the regulators for, and certain laws applicable to...

  • Page 16
    ...terms of our electronic fund transfer services to consumers prior to their use of the service, 21 days' advance notice of material changes, specific error resolution procedures and timetables, and limits on customer liability for transactions that are not authorized by the consumer. In December 2014...

  • Page 17
    ...of operations might result from a number of factors, including, but not limited to the timing and volume of purchases, use and reloads of our prepaid cards and other products and services; the timing and volume of tax refunds processed by us, including the impact of any general delays in tax refund...

  • Page 18
    ... reduce or stop offering our services to their customers, our business, operating results and financial condition would be harmed. Substantially all the revenues we generate from our tax refund processing services have come from sales through a relatively small number of tax preparation firms. We...

  • Page 19
    ... managers, such as American Express, First Data, Total Systems Services, and traditional banks, such as J.P. Morgan Chase; reload network providers, such as Visa, Western Union and MoneyGram; prepaid card distributors, such as InComm and Blackhawk Network; and providers of tax refund processing...

  • Page 20
    .... If customers do not perceive our new offerings as providing significant value, they may fail to accept our new products and services, which would negatively impact our operating revenues. We may not achieve significant operating revenues from new product and service investments for a number of...

  • Page 21
    ... provide a prepaid card or reload product in order to obtain a loan or purchase goods or services. Illegal activities may also include fraudulent payment or refund schemes and identity theft. We rely upon third parties for some transaction processing services, which subjects us and our customers to...

  • Page 22
    ... sell our card products. Changes in laws and regulations to which we are subject, or to which we may become subject, may increase our costs of operation, decrease our operating revenues and disrupt our business. The provision of banking services, prepaid financial services and tax refund processing...

  • Page 23
    ... consumers and other network participants, banks that issue our cards and regulators, and could materially and adversely affect our business, operating results and financial condition. Changes in rules or standards set by the payment networks, such as Visa and MasterCard, or changes in debit network...

  • Page 24
    ... to our business, including fraud management and other customer verification services, transaction processing and settlement, card production, and customer service, are outsourced to third-party vendors. We also depend on third-party banks to assist with our tax refund processing services. It would...

  • Page 25
    ... retail distributors, tax preparation partners, network acceptance members, third-party processors and the merchants that accept our cards receive, transmit and store confidential customer and other information in connection with the sale and use of our products and services. Our encryption software...

  • Page 26
    ... of the funds available in their accounts, and we may become liable for these overdrafts. While we decline authorization attempts for amounts that exceed the available balance in a cardholder's account, the application of card association rules, the timing of the settlement of transactions and the...

  • Page 27
    ... collect funds from the consumers who purchase our products and services and then must remit these funds directly to accounts established for the benefit of these consumers at the banks that issue our cards. The remittance of these funds by the retail distributor takes on average two business days...

  • Page 28
    ... as our processing and settlement services, depends upon the efficient and error-free handling of the money that is a) collected by our retail distributors and remitted to network acceptance members or the banks that issue our cards and b) remitted from the IRS and states to taxpayers, tax refund...

  • Page 29
    ... SEC. Changes in accounting standards or inaccurate estimates or assumptions in the application of accounting policies could adversely affect our financial condition and results of operations. Our accounting policies and methods are fundamental to how we record and report our financial condition and...

  • Page 30
    ... laws or regulations or new interpretations of existing laws or regulations applicable to our business; changes in accounting standards, policies, guidelines, interpretations or principles; general economic conditions; changes to the indices in which our Class A common stock is included; and sales...

  • Page 31
    ... to the foregoing, under the BHC Act and the Change in Bank Control Act, and their respective implementing regulations, Federal Reserve Board approval is necessary prior to any person or company acquiring control of a bank or bank holding company, subject to certain exceptions. Control, among other...

  • Page 32
    ITEM 1B. Unresolved Staff Comments None ITEM 2. Properties Our headquarters is located in Pasadena, California where we lease approximately 140,000 square feet. We own the real property where our subsidiary bank's only office is located in Provo, Utah. Through our wholly owned subsidiaries, we lease...

  • Page 33
    ..., as well as other federal laws applicable to banks and bank holding companies, could limit our ability to pay dividends. We expect to retain future earnings, if any, to fund the development and future growth of our business. Additionally, our ability to pay dividends on our Class A common...

  • Page 34
    ..., or 0.1 million shares, in December 2015, and the remainder was completed in January 2016. Under this agreement, we repurchased a total of approximately 0.6 million shares at an average price of $16.15. (3) The approximate dollar value of shares that may yet be purchased under the plans or programs...

  • Page 35
    ... of dividends) Base Period 12/31/10 $ $ $ $ 100 100 100 100 $ $ $ $ Company/ Index Green Dot Corporation Russell 2000 S&P Smallcap 600 S&P Financials 2011 55 96 101 83 $ $ $ $ 2012 22 111 118 107 $ $ $ $ 2013 44 155 166 145 $ $ $ $ 2014 36 162 176 167 $ $ $ $ 2015 29 155 172 164 29

  • Page 36
    ... December 31, 2015 Consolidated Statements of Operations Data: Operating revenues: Card revenues and other fees Processing and settlement service revenues Interchange revenues Stock-based retailer incentive compensation(1) Total operating revenues Operating expenses: Sales and marketing expenses...

  • Page 37
    ... 31, 2015, 2014, 2013, 2012 and 2011, respectively. (4) Our retail distributors collect customer funds for purchases of new cards and reloads at the point of sale and then remit these funds directly to bank accounts established for the benefit of these customers by the banks that issue our cards...

  • Page 38
    ...of companies focused on online and direct-to-consumer marketing channels. Within our Processing and Settlement Services segment, revenues increased as a result of tax refund processing revenues generated during the first six months of 2015, despite a significant decline in our cash transfer revenues...

  • Page 39
    ...and scale of our tax refund processing platform and as an indicator of customer engagement and usage of our products and services. Number of Active Cards - represents the total number of GPR cards and checking accounts in our portfolio that had a purchase, reload or ATM withdrawal transaction during...

  • Page 40
    ... a Green Dot Network retail location. Our aggregate cash transfer revenues vary based upon the mix of locations where reload transactions occur, since reload fees vary by location. We earn tax refund processing service revenues when a customer of a third party tax preparation company chooses to pay...

  • Page 41
    ... banks that issue our accounts. These costs generally vary based on the total number of active accounts in our portfolio and gross dollar volume transacted by those accounts. Also included in processing expenses are bank fees associated with our tax refund processing services. Bank fees generally...

  • Page 42
    ...to our tax refund processing services, we act as an agent in these transactions and record revenues on a net basis. Generally, customers have limited rights to a refund of the new card fee or a cash transfer fee. We have elected to recognize revenues prior to the expiration of the refund period, but...

  • Page 43
    ... funds in the cardholder's account. While we decline authorization attempts for amounts that exceed the available balance in a cardholder's account, the application of card association rules, the timing of the settlement of transactions and the assessment of the card's monthly maintenance fee, among...

  • Page 44
    ...revenues for the comparable period in 2014. The revenues generated from our tax refund processing services were offset by a period-over-period decline of 22% in the number of cash transfers sold or $66.6 million, due to the discontinuation of our MoneyPak PIN product during the first quarter of 2015...

  • Page 45
    ...the comparable period in 2014. Despite the increased sales commission rate we pay to Walmart under the new agreement, sales commissions decreased as a result of a period-over-period decline in the number of active cards in our portfolio and a decrease in our cash transfer revenues. This decrease was...

  • Page 46
    ... - Processing and settlement service revenues totaled $179.3 million for the year ended December 31, 2014, a decrease of $4.1 million, or 2%, from the comparable period in 2013. Although we had period-over-period growth of 1% in the number of cash transfers sold, we had a greater number of fee-free...

  • Page 47
    ... by period-over-period growth in new cards activated and a 1% increase in the number of cash transfers sold. The cost of manufacturing and distributing card packages also increased as we rolled out new products, including the GoBank product at Walmart. Sales and marketing expenses were partially...

  • Page 48
    ... of our effective tax rate among federal, state and other: Year Ended December 31, 2014 U.S. federal statutory tax rate State income taxes, net of federal benefit General business credits Employee stock-based compensation Transaction costs Other Effective tax rate 35.0% 1.1 (1.3) 0.7 1.8 0.7 38...

  • Page 49
    ....7 million in amounts due to card issuing banks for overdrawn accounts, primarily related to payments to GE Capital Retail Bank to settle our liability associated with overdrawn cardholder account balances. Our $122.5 million of net cash provided by operating activities in the year ended December 31...

  • Page 50
    .... For example, in connection with the transition of our card issuing program with GE Capital Retail Bank to Green Dot Bank in February 2014, we contributed approximately $50 million in capital to Green Dot Bank and we settled our liability associated with overdrawn cardholder account balances, which...

  • Page 51
    ... sheet transactions that represent material expected or contractually committed future obligations, at December 31, 2015. We believe that we will be able to fund these obligations through cash generated from operations and from our existing cash balances. Payments Due by Period Total Long-term debt...

  • Page 52
    ... Disclosure by Bank Holding Companies." The tables in this section include Green Dot Bank information only. Distribution of Assets, Liabilities and Stockholders' Equity The following table presents average balance data and interest income and expense data for our banking operations, as well...

  • Page 53
    ... ended December 31, 2015: December 31, 2015 Total Change in Interest Income/ Expense Loans Taxable investment securities Non-taxable investment securities Federal reserve stock Federal funds sold Cash $ Negotiable order of withdrawal (NOW) Savings deposits Time deposits, denominations greater than...

  • Page 54
    ...a 4% decrease compared to December 31, 2014. The following table shows the composition of Green Dot Bank's loan portfolio as of December 31, 2015, 2014 and 2013: As of December 31, 2015 Residential Commercial Installment Total loans Loans on nonaccrual status Loans past due 90 days or more Total TDR...

  • Page 55
    ... Concentrations Green Dot Bank, our subsidiary bank, operates at a single office in Provo, Utah located in the Utah County area. As of December 31, 2015, approximately 93.4% of our borrowers resided in the state of Utah and approximately 40.2% in the city of Provo. Consequently, this loan portfolio...

  • Page 56
    ...shows Green Dot Bank's average deposits and the annualized average rate paid on those deposits for the years ended December 31, 2015, 2014, and 2013: December 31, 2015 Average Balance Interest-bearing deposit accounts Negotiable order of withdrawal (NOW) Savings deposits Time deposits, denominations...

  • Page 57
    ...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...

  • Page 58
    ... Data Index to Consolidated Financial Statements Page Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting Report of Independent Registered Public Accounting Firm ...Consolidated Balance Sheets as of December 31, 2015 and 2014 ...Consolidated...

  • Page 59
    ...operations, comprehensive income, changes in stockholders' equity, and cash flows for each of the three years in the period ended December 31, 2015 of Green Dot Corporation and our report dated February 29, 2016 expressed an unqualified opinion thereon. /s/ Ernst & Young LLP Los Angeles, California...

  • Page 60
    ... 31, 2015, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Green Dot Corporation's internal control over financial reporting as of December 31, 2015, based...

  • Page 61
    ... Accounts receivable, net Prepaid expenses and other assets Income tax receivable Total current assets Restricted cash Investment securities available-for-sale, at fair value Loans to bank customers, net of allowance for loan losses of $426 and $444 as of December 31, 2015 and 2014, respectively...

  • Page 62
    GREEN DOT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS Year Ended December 31, 2015 Operating revenues: Card revenues and other fees Processing and settlement service revenues Interchange revenues Stock-based retailer incentive compensation Total operating revenues Operating expenses: Sales and...

  • Page 63
    GREEN DOT CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Year Ended December 31, 2015 Net income Other comprehensive loss Unrealized holding losses, net of tax Comprehensive income $ (163) 38,252 $ (5) 42,688 $ (153) 33,887 $ 38,415 $ 2014 (In thousands) 42,693 $ 34,040 2013 See notes ...

  • Page 64
    ... 31, 2014 Common stock issued under stock plans, net of withholdings and related tax effects Stock-based compensation Stock-based retailer incentive compensation Shares issued in business combination Repurchases of Class A common stock Net income Other comprehensive loss Balance at December 31, 2015...

  • Page 65
    ... card issuing banks for overdrawn accounts Deferred revenue Income tax receivable Other, net Net cash provided by operating activities Investing activities Purchases of available-for-sale investment securities Proceeds from maturities of available-for-sale securities Proceeds from sales of available...

  • Page 66
    ... checking account developed for use via mobile phones that is available at Walmart and online; our proprietary swipe reload products referred to as our cash transfer products, which enable cash loading and transfer services through our Green Dot Network; and tax refund processing services designed...

  • Page 67
    ... At the point of sale, our retail distributors collect customer funds for purchases of new cards and balance reloads and then remit these funds directly to the banks that issue our cards. During the first quarter of 2014, we transitioned our card issuing program with GE Capital Bank to our...

  • Page 68
    Note 2-Summary of Significant Accounting Policies (continued) Loans to Bank Customers We report loans measured at historical cost at their outstanding principal balances, net of any charge-offs, and for purchased loans, net of any unaccreted discounts. We recognize interest income as it is earned. ...

  • Page 69
    ... fair value of net assets acquired. Goodwill is not amortized but is reviewed for potential impairment on an annual basis, or when events or circumstances indicate a potential impairment, at the reporting unit level. A reporting unit, as defined under applicable accounting guidance, is an operating...

  • Page 70
    ... on terms specified in the agreements with the card issuing banks. Generally, we expect to settle these obligations within two months. In February 2014, we completed the transition of all outstanding customer deposits associated with our GPR card program with GE Capital Retail Bank to Green Dot Bank...

  • Page 71
    ...consumers purchase our cash transfer products (reload services) in a retail store. We recognize these revenues when the cash transfer transactions are completed, generally within two business days from the time of sale of these products. We earn tax refund processing service revenues when a customer...

  • Page 72
    ... its applicable capital and leverage requirements, the Federal Reserve Board may limit our or Green Dot Bank's ability to pay dividends. In addition, as a bank holding company and a financial holding company, we are generally prohibited from engaging, directly or indirectly, in any activities other...

  • Page 73
    ... does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for service contracts. ASU 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015. The adoption of the...

  • Page 74
    ... tax software companies, which enables TPG to serve approximately 25,000 independent tax preparers and accountants nationwide. This transaction was accounted for as a business combination, and allowed us to expand into TPG's core customer segment by adding tax refund processing services for tax...

  • Page 75
    ... from Term Loan Fair value of shares of Class A common stock issued Fair value of contingent consideration Total consideration $ $ 204,471 134,074 20,000 358,545 The allocation of the initial purchase price was as follows: October 23, 2014 (In thousands) Assets: Cash and cash equivalents Accounts...

  • Page 76
    ...used to fund the purchase, amortization of certain identifiable intangible assets, income and expense items not attributable to ongoing operations and related tax... to net assets acquired, including $1.6 million of cash acquired. The intangible assets consist primarily of customer relationships ...

  • Page 77
    ... thousands) As of December 31, 2015 and 2014, the gross unrealized losses and fair values of available-for-sale investment securities that were in unrealized loss positions were as follows: Less than 12 months Fair value December 31, 2015 Corporate bonds Commercial paper U.S. Treasury notes Agency...

  • Page 78
    ... 31, 2015 Overdrawn account balances due from cardholders Reserve for uncollectible overdrawn accounts Net overdrawn account balances due from cardholders Trade receivables Reserve for uncollectible trade receivables Net trade receivables Receivables due from card issuing banks Fee advances Other...

  • Page 79
    ... the carrying value, gross of the related allowance for loan losses, of our nonperforming loans. See Note 2-Summary of Significant Accounting Policies for further information on the criteria for classification as nonperforming. December 31, 2015 Residential Commercial Installment Total loans $ $ 366...

  • Page 80
    ...2015 and 2014: December 31, 2015 Unpaid Principal Balance Residential Commercial Installment $ 24 257 241 $ Carrying Value 19 19 128 December 31, 2014 Unpaid Principal Balance $ 97 270 367 $ Carrying Value 54 31 104 (In thousands) Allowance for Loan Losses Activity in the allowance for loan losses...

  • Page 81
    ... Acquisitions Adjustments related to final purchase accounting Balance, end of period $ $ 144,662 64,713 (1,296) 208,079 $ $ 27,250 117,412 - 144,662 2014 During the three months ended December 31, 2015, we completed our annual goodwill impairment test as of September 30, 2015. Based on the results...

  • Page 82
    ... Holdings, LLC, as discussed in Note 3 - Business Acquisitions. We use the proceeds of any borrowings under the Revolving Facility for working capital and other general corporate purposes, subject to the terms and conditions set forth in the credit agreement. As of December 31, 2015 and 2014, our...

  • Page 83
    ... fees At our election, loans made under the credit agreement bear interest at 1) a LIBOR rate (the "LIBOR Rate") or 2) a base rate determined by reference to the highest of (a) the Bank of America prime rate, (b) the United States federal funds rate plus 0.50% and (c) a daily rate equal to one-month...

  • Page 84
    ...defined below)), of the assets of our company or the proceeds thereof legally available for distribution to our stockholders are distributable ratably among the holders of our Class A Common Stock and any Series A Preferred Stock outstanding at that time after payment to the holders of shares of our...

  • Page 85
    .... Non-Employee Stock-Based Payments Shares Subject to Repurchase In May 2010, we amended our commercial agreement with Walmart, our largest retail distributor, and GE Money Bank. The agreement commenced on May 1, 2010 with a five-year term. As an incentive to amend our prepaid card program agreement...

  • Page 86
    ... Rights Agreement expired pursuant to its terms in July 2015. Registration Rights Agreement dated as of October 23, 2014 We are party to a Registration Rights Agreement, dated as of October 23, 2014, with certain persons listed on Exhibit A thereto (the "New Registration Rights Agreement"), which...

  • Page 87
    .... The timing, nature and amount of purchases depend on a variety of factors, including market conditions and the volume limit defined by Rule 10b-18. As of December 31, 2015, we had repurchased a total of 0.1 million shares at an average price of $16.49 per share for a total cost of $1.7 million...

  • Page 88
    ... We estimated the fair value of each stock option grant on the date of grant using the following weighted-average assumptions: Year Ended December 31, 2015 Risk-free interest rate Expected term (life) of options (in years) Expected dividends Expected volatility -% - - -% 2014 1.8% 5.79 - 54.0% 2013...

  • Page 89
    .... Stock-Based Retailer Incentive Compensation As discussed in Note 11 - Stockholders' Equity, we issued Walmart 2,208,552 shares of our Class A common stock. We recognize the fair value of 36,810 shares each month over the five-year term of the commercial agreement. An early expiration of our right...

  • Page 90
    ...as follows: Year Ended December 31, 2015 U.S. federal statutory tax rate State income taxes, net of federal benefit General business credits Employee stock-based compensation Transaction costs Other Effective tax rate 35.0% 0.4 (0.9) 0.8 (2.1) 0.7 33.9% 2014 35.0% 1.1 (1.3) 0.7 1.8 0.7 38.0% 2013 35...

  • Page 91
    ... indefinitely and other state business tax credits of approximately $0.9 million that will expire 2025. As of December 31, 2015 and 2014, we had a liability of $7.4 million and $6.2 million, respectively, for unrecognized tax benefits related to various federal and state income tax matters excluding...

  • Page 92
    ... and how we measure fair value, see Note 2-Summary of Significant Accounting Policies. As of December 31, 2015 and 2014, our assets and liabilities carried at fair value on a recurring basis were as follows: Level 1 December 31, 2015 Assets Corporate bonds Commercial paper U.S. Treasury notes Agency...

  • Page 93
    ...fair value hierarchy, our loans are classified as Level 3. Deposits The fair value of demand and interest checking deposits and savings deposits is the amount payable on demand at the reporting date. We determined the fair value of time deposits by discounting expected future cash flows using market...

  • Page 94
    ...fair value, excluding short-term financial instruments for which the carrying value approximates fair value, at December 31, 2015 and 2014 are presented in the table below. December 31, 2015 Carrying Value Financial Assets Loans to bank customers, net of allowance Financial Liabilities Deposits Note...

  • Page 95
    ... in violation of any laws and regulations governing banking, money transmitters, electronic fund transfers, or money laundering in the United States or abroad, we could be subject to penalties or could be forced to change our business practices. In the ordinary course of business, we are a party to...

  • Page 96
    ... 31, 2015 Walmart 46% 2014 55% 2013 65% No other retail distributor made up greater than 10% of our total operating revenues for the years ended December 31, 2015, 2014, and 2013. Unit Concentrations The concentration of GPR cards activated (in units) and the concentration of sales of cash transfer...

  • Page 97
    ...framework. There were no conditions or events since December 31, 2015 which management believes would have changed our category as "well capitalized." Our capital ratios and related regulatory requirements were as follows: December 31, 2015 Amount Green Dot Corporation: Tier 1 leverage Common equity...

  • Page 98
    ... GPR card accounts, private label GPR card accounts, checking accounts and open-loop gift cards. The Processing and Settlement Services segment consists of revenues and expenses derived from reload services through the Green Dot Network and our tax refund processing services. The Corporate and...

  • Page 99
    ... and new basis of reporting for certain items. Therefore, no such disclosures are presented. Year Ended December 31, 2015 Account Services Processing and Settlement Services $ 195,000 133,539 $ 61,461 $ Corporate and Other Total (In thousands) Operating revenues Operating expenses Operating income...

  • Page 100
    ... Exchange Act Rules 13a-15(f) and 15d-15(f)) for Green Dot Corporation. Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2015, based...

  • Page 101
    ... incorporated by reference to our proxy statement for our 2016 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the year ended December 31, 2015. ITEM 14. Principal Accounting Fees and Services The information required by this Item is incorporated by reference...

  • Page 102
    ... submission of the schedule, or because the information required is included in the consolidated financial statements and notes thereto. 3. Exhibits: The following exhibits are filed as part of or furnished with this annual report on Form 10-K as applicable: The exhibit list in the Exhibit Index...

  • Page 103
    ... registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Green Dot Corporation Date: February 29, 2016 By: Name: Title: /s/ Steven W. Streit Steven W. Streit Chairman, President, Chief Executive Officer KNOW ALL PERSONS BY THESE PRESENTS that...

  • Page 104
    ... agreement. 2010 Employee Stock Purchase Plan. Lease Agreement between the Registrant and Wells REIT II - Pasadena Corporate Park L.P., dated December 5, 2011 Amended and Restated Walmart MoneyCard Program Agreement dated as of May 1, 2015 by and among the Registrant, Green Dot Bank, Wal-Mart Stores...

  • Page 105
    ... between the Registrant and Konstantinos Sgoutas. Green Dot Corporation Corporate Transaction Policy 2015 Executive Officer Incentive Bonus Plan Letter agreement regarding terms of transition, separation and consultancy, dated November 9, 2015, between the Registrant and Grace T. Wang. Consent...

  • Page 106
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  • Page 107
    ... Sgoutas Chief Revenue Officer Kuan Archer Chief Operating Officer Lewis B. Goodwin CEO, Green Dot Bank John C. Ricci General Counsel INVESTOR RELATIONS [email protected] INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Ernst & Young LLP, Los Angeles STOCK LISTING & SYMBOL New York Stock Exchange...

  • Page 108
    GREEN DOT CORPORATION 2015 ANNUAL REPORT CORPORATE HEADQUARTERS 3465 E. Foothill Blvd., Pasadena, CA 91107 Telephone: (626) 765-2000 www.greendot.com ©2016 Green Dot Corporation.