Green Dot 2015 Annual Report Download - page 56

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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, 2015, 2014, and 2013:
December 31, 2015 December 31, 2014 December 31, 2013
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) $1,025 0.1% $1,054 —% $ 1,607 0.1%
Savings deposits 8,181 0.1 7,034 0.1 6,230 0.1
Time deposits, denominations greater
than or equal to $100 5,576 0.9 5,321 0.9 5,414 0.9
Time deposits, denominations less than
$100 1,874 1.0 1,806 0.7 2,698 0.6
Total interest-bearing deposit accounts 16,656 0.5% 15,215 0.4% 15,949 0.5%
Non-interest bearing deposit accounts 589,601 469,661 50,151
Total deposits $ 606,257 $ 484,876 $ 66,100
The following table shows the scheduled maturities for Green Dot Bank’s time deposits portfolio greater than
$100,000 at December 31, 2015:
December 31, 2015
(In thousands)
Less than 3 months $ 316
3 through 6 months 1,151
6 through 12 months 799
Greater than 12 months 4,002
$6,268
Key Financial Ratios
The following table shows certain of Green Dot Bank’s key financial ratios for the years ended December 31, 2015,
2014, and 2013:
December 31, 2015 December 31, 2014 December 31, 2013
Net return on assets 1.2% 1.3% 1.1%
Net return on equity 6.9 7.5 6.5
Equity to assets ratio 17.5 16.9 16.7
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 significant foreign operations. We do
not hold or enter into derivatives or other financial instruments for trading or speculative purposes.
Interest rates
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.
As of December 31, 2015, we had a $121.7 million term loan outstanding under our $225.0 million credit agreement.
Refer to Note 10 — Note Payable to the Consolidated Financial Statements included herein for additional information.
Our term loan and revolving credit facility are, and are expected to be, at variable rates of interest and expose us to
interest rate risk. If interest rates increase, our debt service obligations on the variable rate indebtedness would increase
even though the amount borrowed remained the same, and our net income would decrease. Although any short-term
borrowings under our revolving credit facility would likely be insensitive to interest rate changes, interest expense on
short-term borrowings will increase and decrease with changes in the underlying short-term interest rates. Assuming
our credit agreement is drawn up to its maximum borrowing capacity of $225.0 million, based on the applicable LIBOR
and margin in effect as of December 31, 2015, each quarter point of change in interest rates would result in a $0.6