Green Dot 2015 Annual Report Download - page 97

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91
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, 2015 and 2014, we were categorized as "well capitalized" under the regulatory 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 Ratio Regulatory
Minimum (1) "Well-capitalized"
Minimum (1)
(In thousands, except ratios)
Green Dot Corporation:
Tier 1 leverage 347,801 25.9% 4.0% n/a
Common equity Tier 1 capital 347,801 70.7% 4.5% n/a
Tier 1 capital 347,801 70.7% 6.0% 6.0%
Total risk-based capital 349,396 71.1% 8.0% 10.0%
Green Dot Bank:
Tier 1 leverage 152,737 20.4%15.0%15.0%
Common equity Tier 1 capital 152,737 132.2% 4.5% 6.5%
Tier 1 capital 152,737 132.2% 6.0% 8.0%
Total risk-based capital 153,164 132.5% 8.0% 10.0%
December 31, 2014
Amount Ratio Regulatory
Minimum (1) "Well-capitalized"
Minimum (1)
(In thousands, except ratios)
Green Dot Corporation:
Tier 1 leverage 200,917 21.3% 4.0% n/a
Tier 1 capital 200,917 45.4% 5.5% 6.0%
Total risk-based capital 201,368 45.5% 8.0% 10.0%
Green Dot Bank:
Tier 1 leverage 135,786 17.9%15.0%15.0%
Tier 1 capital 135,786 70.6% 5.5% 6.0%
Total risk-based capital 136,237 70.8% 8.0% 10.0%
(1) The tier 1 leverage regulatory minimum and well-capitalized minimum ratios for banks is 4% and 5%, respectively. Our subsidiary bank is
subject to separate tier 1 leverage requirements that we have committed to with the Federal Reserve Board and Utah Department of
Financial Institutions.