Financial Data and Key Metrics Changes - Consolidated non-GAAP revenue increased by 18% year-over-year, reaching $329 million [4][20] - Adjusted EBITDA rose by 37%, totaling $46 million, with a margin expansion of 200 basis points [4][20] - Non-GAAP EPS increased by 72%, reaching $0.43 [4][20] - Operating cash flow generated year-to-date was $147 million, with a cash balance of $153 million at quarter-end [21] Business Segment Data and Key Metrics Changes - **Consumer Segment**: Revenue grew by $17 million (11%) and profit increased by $8 million (17%), despite a decline in gross dollar volume by 18% [23] - **B2B Segment**: Revenue increased by $41 million (53%), with gross dollar volume, purchase volume, and active accounts growing by 57%, 24%, and 14% respectively [24] - **Money Movement Segment**: Revenue declined by $11 million (19%), but profit grew by $1 million (4%) due to growth in ancillary tax processing services [26] Market Data and Key Metrics Changes - Active accounts and direct deposit active accounts in the Consumer Segment declined by 15% and 9% respectively, attributed to changes in unemployment benefits and tax refund timing [22][23] - The B2B segment saw significant growth, indicating a strong demand for banking-as-a-service (BaaS) offerings [24] Company Strategy and Development Direction - The company is focused on investing in infrastructure to create a scalable platform and enhance customer service [5][31] - Strategic partnerships with major retailers like Walmart and new product offerings are aimed at expanding market reach and customer acquisition [6][8][56] - The company plans to continue investing in its modern banking platform and customer service to drive long-term growth [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to serve underserved consumers and small businesses, emphasizing the importance of digital banking solutions [31] - The company anticipates that investments made in 2021 will yield benefits in 2022 and beyond, particularly in reducing processing costs [29][30] Other Important Information - The company will not proceed with the acquisition of TRS, but remains committed to enhancing its tax processing business [15] - The introduction of GO2bank is a key initiative aimed at improving customer engagement and service quality [6][47] Q&A Session Summary Question: Insights on B2B segment KPIs - Management noted that while active accounts may have decreased sequentially, year-over-year growth remains strong, with gross dollar volume being a critical metric [34][36] Question: Republic deal and cash deployment plans - Management expressed disappointment regarding the TRS transaction but emphasized that it was not critical to long-term growth; plans for excess cash deployment are still under consideration [37][38] Question: Benefits of self-processing and cost savings - Management indicated that transitioning to self-processing will lead to fixed cost reductions and improved margins, particularly in 2023 [40][42] Question: Active accounts and customer quality - Management highlighted that while active accounts have declined, the quality and profitability of remaining accounts have improved, with a focus on enhancing customer offerings [45][47] Question: Collaboration with Walmart - Management confirmed a renewed commitment to grow the Walmart MoneyCard customer base and enhance embedded payment solutions [52][56] Question: Growth mix in BaaS platform - Management expects near-term growth to come from existing partners, with a strong pipeline for new partnerships in the future [60][64]

[PART I – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This section provides an overview of Green Dot Corporation's financial performance, condition, and related disclosures for the period [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Green Dot Corporation's unaudited consolidated financial statements, highlighting asset growth and increased net income [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $4.39 billion, driven by cash and investments, while liabilities and equity also rose Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$4,391,349** | **$4,115,267** | | Unrestricted cash and cash equivalents | $1,804,826 | $1,491,842 | | Investment securities available-for-sale | $1,188,216 | $970,969 | | **Total Liabilities** | **$3,309,410** | **$3,105,435** | | Deposits | $2,959,386 | $2,735,116 | | **Total Stockholders' Equity** | **$1,081,939** | **$1,009,832** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Operating revenues and net income significantly increased for both the quarter and nine-month periods ending September 30, 2021 Operating Results (in thousands, except per share data) | Metric | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Total operating revenues | $339,499 | $291,070 | $1,102,358 | $969,479 | | Operating income (loss) | $8,830 | $(2,650) | $74,618 | $61,589 | | Net income (loss) | $7,335 | $(2,992) | $58,003 | $47,147 | | Diluted EPS | $0.13 | $(0.06) | $1.04 | $0.87 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow was $147.2 million, with significant cash provided by financing activities offsetting investing outflows Cash Flow Summary - Nine Months Ended Sep 30 (in thousands) | Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $147,234 | $198,851 | | Net cash used in investing activities | $(399,655) | $(105,938) | | Net cash provided by financing activities | $564,696 | $983,001 | | **Net increase in cash** | **$312,275** | **$1,075,914** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies, segment realignment, significant revenue concentrations, and subsequent legal events - The company realigned its operations into **three reportable segments** in Q1 2021: Consumer Services, B2B Services, and Money Movement Services[118](index=118&type=chunk) - Revenues from Walmart constituted **23% of total operating revenues** for both the three and nine months ended September 30, 2021[117](index=117&type=chunk) - The agreement to acquire Tax Refund Solutions (TRS) was terminated due to lack of Federal Reserve approval, resulting in a **$5 million termination fee** and a subsequent lawsuit from Republic Bank[127](index=127&type=chunk)[128](index=128&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results, highlighting revenue growth from digital payments and stimulus, alongside rising expenses and a strong capital position [Consolidated Financial Results and Trends](index=29&type=section&id=Consolidated%20Financial%20Results%20and%20Trends) Total operating revenues increased significantly in Q3 2021 and for the nine months, driven by Consumer and B2B Services Consolidated Financial Results (in thousands) | Metric | Q3 2021 | Q3 2020 | % Change | | :--- | :--- | :--- | :--- | | Total operating revenues | $339,499 | $291,070 | 16.6% | | Total operating expenses | $330,669 | $293,720 | 12.6% | | Net income (loss) | $7,335 | $(2,992) | N/A | - Revenue growth was supported by a fundamental shift to electronic payments and economic stimulus funds[136](index=136&type=chunk) - Money Movement Services revenue decreased by **19% in Q3 2021**, primarily due to a **22% decrease in cash transfers**[139](index=139&type=chunk) [Consolidated Key Metrics](index=32&type=section&id=Consolidated%20Key%20Metrics) Gross Dollar Volume increased by 13.5%, while active accounts, purchase volume, and cash transfers experienced declines Consolidated Key Metrics - Q3 2021 vs Q3 2020 | Metric | Q3 2021 | Q3 2020 | % Change | | :--- | :--- | :--- | :--- | | Gross Dollar Volume (in millions) | $16,404 | $14,453 | 13.5% | | Number of Active Accounts (in millions) | 5.37 | 5.72 | (6.1)% | | Purchase Volume (in millions) | $7,356 | $7,600 | (3.2)% | | Cash Transfers (in millions) | 10.05 | 12.81 | (21.5)% | [Segment Results](index=39&type=section&id=Segment%20Results) B2B Services revenue grew significantly, Consumer Services revenue increased, and Money Movement Services revenue decreased Segment Profit - Q3 2021 vs Q3 2020 (in thousands) | Segment | Q3 2021 | Q3 2020 | % Change | | :--- | :--- | :--- | :--- | | Consumer Services | $60,084 | $51,494 | 16.7% | | B2B Services | $18,501 | $16,372 | 13.0% | | Money Movement Services | $18,718 | $17,974 | 4.1% | - B2B Services segment revenue grew **53.3% in Q3 2021**, driven by organic growth in BaaS programs[190](index=190&type=chunk)[191](index=191&type=chunk)[192](index=192&type=chunk) - Consumer Services segment revenue increased **11.2% in Q3 2021**, despite declining active accounts, due to new feature adoption and lower reward accruals[185](index=185&type=chunk)[186](index=186&type=chunk)[187](index=187&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $1.8 billion in cash and $1.2 billion in investments, supported by an undrawn credit facility - Primary liquidity sources include **$1.8 billion in unrestricted cash** and **$1.2 billion in available-for-sale investment securities**[202](index=202&type=chunk) - The company has a **$100 million revolving credit facility** with no outstanding borrowings as of September 30, 2021[207](index=207&type=chunk) - Management believes current liquidity is sufficient to meet capital needs for at least the next 12 months[203](index=203&type=chunk) [Capital Requirements for Bank Holding Companies](index=44&type=section&id=Capital%20Requirements%20for%20Bank%20Holding%20Companies) Both Green Dot Corporation and Green Dot Bank are categorized as 'well capitalized', exceeding all regulatory capital requirements Capital Ratios as of September 30, 2021 | Entity / Ratio | Actual Ratio | Regulatory Minimum | "Well-capitalized" Minimum | | :--- | :--- | :--- | :--- | | **Green Dot Corporation** | | | | | Common equity Tier 1 capital | 64.8% | 4.5% | n/a | | Total risk-based capital | 65.9% | 8.0% | 10.0% | | **Green Dot Bank** | | | | | Common equity Tier 1 capital | 50.4% | 4.5% | 6.5% | | Total risk-based capital | 51.6% | 8.0% | 10.0% | - Both Green Dot Corporation and Green Dot Bank were categorized as **'well capitalized'** as of September 30, 2021[216](index=216&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate fluctuations, with credit and liquidity risks managed through restrictive investment policies - The company's primary market risk is **interest rate risk**, with near-zero short-term rates potentially impacting net interest income[219](index=219&type=chunk) - Credit and liquidity risks are managed through restrictive investment policies and monitoring of partner creditworthiness[223](index=223&type=chunk)[224](index=224&type=chunk) - The company does not engage in derivative financial instruments for trading or speculative purposes[218](index=218&type=chunk)[221](index=221&type=chunk) [Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal controls over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were **effective** as of September 30, 2021[225](index=225&type=chunk) - There were **no material changes** in internal control over financial reporting during Q3 2021[226](index=226&type=chunk) [PART II – OTHER INFORMATION](index=48&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, unregistered equity sales, and exhibits [Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) This section details ongoing legal proceedings, including a class action lawsuit and litigation over a terminated acquisition - The company is a defendant in a class action lawsuit alleging misleading statements regarding business strategy and financial performance[109](index=109&type=chunk) - Republic Bank filed a lawsuit against Green Dot claiming breach of contract over the terminated Tax Refund Solutions (TRS) acquisition agreement[128](index=128&type=chunk)[283](index=283&type=chunk) [Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including pandemic impacts, revenue concentration, competition, fraud, and regulatory oversight [COVID-19 Risks](index=48&type=section&id=COVID-19%20RISKS) The COVID-19 pandemic poses ongoing risks including operational disruptions, workforce effectiveness, and increased costs - The pandemic has led to a remote workforce and office closures, potentially impacting workforce effectiveness and resulting in impairment charges[231](index=231&type=chunk) - Increased costs, including higher call center expenses and disputed transaction losses, may continue to adversely affect financial results[233](index=233&type=chunk) [Business Risks](index=48&type=section&id=RISKS%20RELATED%20TO%20OUR%20BUSINESS) Business risks include heavy reliance on Walmart, intense competition, potential for fraudulent activities, and customer overdraft losses - **23% of operating revenues** are derived from products sold at Walmart, making the relationship critical[236](index=236&type=chunk) - Intense competition from established financial institutions and 'challenger' banks could erode market share and pressure margins[245](index=245&type=chunk)[247](index=247&type=chunk) - Significant fraud incidents could lead to reputational damage, regulatory sanctions, and financial losses[249](index=249&type=chunk)[250](index=250&type=chunk) [Operational Risks](index=52&type=section&id=RISKS%20RELATED%20TO%20OUR%20OPERATIONS) Operational risks include reliance on computer systems, data security breaches, and dependency on third-party vendor performance - The business depends on uninterrupted computer systems, with failures potentially causing service interruptions and reputational harm[260](index=260&type=chunk)[263](index=263&type=chunk) - Data security breaches could lead to liability, litigation, regulatory action, and reputational damage[264](index=264&type=chunk)[265](index=265&type=chunk) - Reliance on third-party vendors for critical functions poses risks if their performance is inadequate[268](index=268&type=chunk) [Regulatory and Legal Risks](index=55&type=section&id=REGULATORY%20AND%20LEGAL%20RISKS) Extensive regulatory oversight, changes in payment network rules, and ongoing litigation pose significant regulatory and legal risks - As a bank holding company, Green Dot is subject to extensive Federal Reserve supervision, with non-compliance risking enforcement actions[272](index=272&type=chunk) - Revenue from interchange fees is dependent on payment network rates and vulnerable to future regulation[280](index=280&type=chunk)[281](index=281&type=chunk) - Litigation and regulatory proceedings, including the Republic Bank lawsuit, could result in significant fines or penalties[283](index=283&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=62&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[301](index=301&type=chunk) [Other Information](index=62&type=section&id=Item%205.%20Other%20Information) The company reported no other information required to be disclosed under this item - None[302](index=302&type=chunk) [Exhibits](index=63&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL financial data - Exhibits include certifications from the Principal Executive Officer and Principal Financial Officer under Sarbanes-Oxley Act sections[304](index=304&type=chunk) - The filing includes financial statements formatted in Inline XBRL[304](index=304&type=chunk)

Non-GAAP Financial Measures - Green Dot uses non-GAAP financial measures to supplement its GAAP consolidated financial statements, excluding primarily non-cash expenses and charges[3] - These measures are not GAAP alternatives and may not be comparable to other organizations' measures[3] - Green Dot believes these measures help investors evaluate operating performance by eliminating items not indicative of core operations[3] - Management uses non-GAAP measures for planning, resource allocation, strategy evaluation, compensation metrics, and board communications[3] - Adjusted EBITDA is used to measure operating performance without regard to non-operating items, income taxes, depreciation, stock-based compensation, and other charges[3] Reconciliation of Operating Revenues - Total operating revenues for Q1 2020 were $362.2 million, decreasing to $284.3 million in Q4 2020, and increasing to $393.5 million in Q1 2021 and $369.4 million in Q2 2021[2] - After net revenue adjustments, non-GAAP total operating revenues were $346.5 million in Q1 2020, $274.5 million in Q4 2020, $379.8 million in Q1 2021, and $357.9 million in Q2 2021[2] Reconciliation of Net Income - Net income was $46.8 million in Q1 2020, a loss of $(24.0) million in Q4 2020, $25.7 million in Q1 2021, and $24.9 million in Q2 2021[2] - Non-GAAP net income was $60.4 million in Q1 2020, $17.3 million in Q4 2020, $46.1 million in Q1 2021, and $37.8 million in Q2 2021[2] Adjusted EBITDA and Margin - Adjusted EBITDA was $92.1 million in Q1 2020, $33.7 million in Q3 2020, $34.8 million in Q4 2020, $73.4 million in Q1 2021, and $62.9 million in Q2 2021[2] - Adjusted EBITDA margin was 27% in Q1 2020, 12% in Q3 2020, 13% in Q4 2020, 19% in Q1 2021, and 18% in Q2 2021[2]

[PART I – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Green Dot Corporation's unaudited consolidated financial statements for Q2 2021, covering balance sheets, income statements, and cash flows, with detailed notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheet shows total assets increased to **$4.29 billion** as of June 30, 2021, driven by cash and investment securities, with total liabilities also growing due to higher deposits Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$4,288,564** | **$4,115,267** | | Unrestricted cash and cash equivalents | $1,891,100 | $1,491,842 | | Investment securities available-for-sale | $1,090,513 | $970,969 | | **Total Liabilities** | **$3,220,864** | **$3,105,435** | | Deposits | $2,864,782 | $2,735,116 | | **Total Stockholders' Equity** | **$1,067,700** | **$1,009,832** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Green Dot reported a significant increase in Q2 2021 profitability, with total operating revenues growing **16.8%** to **$369.4 million** and net income surging to **$24.9 million** Q2 2021 vs Q2 2020 Performance (in thousands, except per share data) | Metric | Q2 2021 (Three Months) | Q2 2020 (Three Months) | Change (%) | | :--- | :--- | :--- | :--- | | Total operating revenues | $369,373 | $316,240 | 16.8% | | Operating income | $31,803 | $5,390 | 490.0% | | Net income | $24,933 | $3,294 | 656.9% | | Diluted EPS | $0.45 | $0.06 | 650.0% | YTD 2021 vs YTD 2020 Performance (in thousands, except per share data) | Metric | YTD 2021 (Six Months) | YTD 2020 (Six Months) | Change (%) | | :--- | :--- | :--- | :--- | | Total operating revenues | $762,859 | $678,409 | 12.4% | | Operating income | $65,788 | $64,239 | 2.4% | | Net income | $50,668 | $50,139 | 1.1% | | Diluted EPS | $0.91 | $0.93 | -2.2% | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities decreased to **$119.5 million** for the six months ended June 30, 2021, while investing activities used **$265.7 million** and financing activities provided **$544.8 million** Cash Flow Summary (Six Months Ended June 30, in thousands) | Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $119,456 | $161,516 | | Net cash used in investing activities | ($265,700) | ($24,732) | | Net cash provided by financing activities | $544,849 | $734,473 | | **Net increase in cash** | **$398,605** | **$871,257** | [Note 19—Segment Information](index=26&type=section&id=Note%2019%E2%80%94Segment%20Information) Effective Q1 2021, Green Dot realigned its reporting into three new segments: Consumer Services, B2B Services, and Money Movement Services, with historical data restated to conform to this structure - The company realigned its operations into three new reportable segments: Consumer Services, B2B Services, and Money Movement Services, starting in Q1 2021[121](index=121&type=chunk) Segment Revenue (Three Months Ended June 30, in thousands) | Segment | 2021 | 2020 | | :--- | :--- | :--- | | Consumer Services | $182,093 | $162,639 | | B2B Services | $112,589 | $76,619 | | Money Movement Services | $66,019 | $65,667 | Segment Profit (Three Months Ended June 30, in thousands) | Segment | 2021 | 2020 | | :--- | :--- | :--- | | Consumer Services | $55,790 | $58,412 | | B2B Services | $18,174 | $16,327 | | Money Movement Services | $38,192 | $27,842 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses consolidated financial results, key business trends, and segment performance, highlighting **17%** Q2 2021 revenue growth driven by Consumer and B2B services, and investments in GO2bank Consolidated Financial Results (Three Months Ended June 30) | Metric | 2021 | 2020 | Change (%) | | :--- | :--- | :--- | :--- | | Total operating revenues | $369,373,000 | $316,240,000 | 16.8% | | Total operating expenses | $337,570,000 | $310,850,000 | 8.6% | | Net income | $24,933,000 | $3,294,000 | 656.9% | - Revenue growth was driven by the Consumer and B2B Services segments, benefiting from a shift to digital payments during the COVID-19 pandemic and economic stimulus funds[135](index=135&type=chunk)[136](index=136&type=chunk) - The company plans to continue investing in marketing for its new GO2bank product and in building a modern, scalable core banking platform to accelerate future revenue growth and expand margins[140](index=140&type=chunk)[141](index=141&type=chunk) [Consolidated Key Metrics](index=31&type=section&id=Consolidated%20Key%20Metrics) Q2 2021 key metrics showed mixed results, with Gross Dollar Volume and Purchase Volume increasing, while Active Accounts and Cash Transfers declined, partly due to stimulus timing Key Metrics (Three Months Ended June 30) | Metric | 2021 | 2020 | Change (%) | | :--- | :--- | :--- | :--- | | Gross Dollar Volume (in millions) | $17,399 | $15,107 | 15.2% | | Number of Active Accounts (in millions) | 6.03 | 6.25 | (3.5)% | | Purchase Volume (in millions) | $8,870 | $8,477 | 4.6% | | Cash Transfers (in millions) | 10.19 | 12.48 | (18.3)% | [Segment Results](index=38&type=section&id=Segment%20Results) Q2 2021 saw B2B Services revenue grow **47%** and Consumer Services revenue increase **12%**, while Money Movement Services revenue remained flat, with varied segment profit trends - Consumer Services revenue grew **12%** in Q2, but segment profit fell **4.5%** due to increased marketing for GO2bank and higher customer support costs[187](index=187&type=chunk)[191](index=191&type=chunk) - B2B Services revenue grew **46.9%** in Q2, driven by a **43%** increase in Gross Dollar Volume from BaaS programs, with segment profit growing **11.3%** despite margin compression[192](index=192&type=chunk)[196](index=196&type=chunk) - Money Movement Services revenue was nearly flat, but segment profit grew **37.2%** in Q2, boosted by tax season timing offsetting a decline in cash transfer revenue[197](index=197&type=chunk)[198](index=198&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2021, Green Dot's primary liquidity source was **$1.9 billion** in unrestricted cash, with both the company and Green Dot Bank categorized as 'well capitalized' under regulatory standards - The company's primary source of liquidity was **$1.9 billion** in unrestricted cash and cash equivalents as of June 30, 2021[203](index=203&type=chunk) - Green Dot Corporation and Green Dot Bank were both categorized as 'well capitalized' under regulatory frameworks as of June 30, 2021[218](index=218&type=chunk)[219](index=219&type=chunk) - The company has a commitment to purchase Tax Refund Solutions from Republic Bank & Trust Company for approximately **$165 million** in cash, expected to close in Q3 2021[107](index=107&type=chunk)[212](index=212&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company discloses its market risk exposures, primarily interest rate and credit/liquidity risks, with limited exposure to foreign currency and equity price risks, managed through investment policies - The company has limited exposure to foreign currency exchange rates, interest rates, and equity prices, and does not use derivatives for speculative purposes[220](index=220&type=chunk) - Interest rate risk exists from the low-rate environment impacting investment income and from potential borrowings under its variable-rate credit facility[221](index=221&type=chunk)[222](index=222&type=chunk) - Credit and liquidity risk is managed by maintaining an investment policy that restricts investments to highly liquid, low-credit-risk assets and by monitoring settlement risk with retail partners[224](index=224&type=chunk)[225](index=225&type=chunk)[226](index=226&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2021, with no material changes to internal control over financial reporting identified during the quarter - The CEO and Interim CFO concluded that disclosure controls and procedures were effective as of the end of the period[227](index=227&type=chunk) - There were no material changes in internal control over financial reporting during the quarter ended June 30, 2021[228](index=228&type=chunk) [PART II – OTHER INFORMATION](index=47&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 17 for details on ongoing legal proceedings, including class action lawsuits alleging misleading statements about business strategy and financial performance - The company is a defendant in a class action lawsuit (Koffsmon v. Green Dot Corp., et al.) alleging misleading statements regarding its business strategy and financial performance between May 2018 and November 2019[112](index=112&type=chunk) - A related shareholder derivative suit (Hellman v. Streit, et al) was also filed, asserting breach of fiduciary duty and other claims based on the same alleged wrongdoing[112](index=112&type=chunk) [Item 1A. Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) This section outlines significant risks to the company's business, including the ongoing impact of COVID-19, reliance on major partners, intense competition, product innovation needs, and extensive regulatory scrutiny [COVID-19 Risks](index=47&type=section&id=COVID-19%20Risks) The COVID-19 pandemic continues to affect operations, partner businesses, and costs, with ongoing uncertainty regarding future impacts on consumer spending and operational expenses despite past stimulus benefits - The COVID-19 pandemic has caused operational disruptions, including a shift to a remote workforce and higher transaction losses, though government stimulus has helped mitigate some negative effects[233](index=233&type=chunk)[234](index=234&type=chunk) [Risks Related to Our Business](index=48&type=section&id=Risks%20Related%20to%20Our%20Business) The company faces significant business risks, including dependence on Walmart for **23%** of Q2 2021 revenue, intense competition, the need for successful product innovation, and potential declines in consumer spending - A significant portion of operating revenue is derived from Walmart, which accounted for **23%** of total operating revenues for the three months ended June 30, 2021[238](index=238&type=chunk) - The company faces intense competition from larger, more established financial institutions as well as new 'challenger' banks offering low-cost alternatives[246](index=246&type=chunk)[248](index=248&type=chunk) - Future success depends on the successful launch and adoption of new products like GO2bank, as significant investments in new products may not be successful[243](index=243&type=chunk) [Regulatory and Legal Risks](index=56&type=section&id=Regulatory%20and%20Legal%20Risks) As a bank holding company, Green Dot is subject to extensive and changing regulation, including requirements to support Green Dot Bank, risks related to brokered deposits, and compliance with laws like BSA, with potential impacts from payment network rule changes - As a bank holding company, Green Dot is subject to comprehensive supervision by the Federal Reserve and must comply with minimum capital and leverage requirements[272](index=272&type=chunk) - If Green Dot Bank ceases to be 'well-capitalized,' it could be prohibited from accepting brokered deposits, which constitute a vast majority of its current deposits, materially affecting operations[273](index=273&type=chunk) - Changes in payment network rules or a decline in interchange rates, which represented **27%** of total operating revenues in Q2 2021, could adversely affect financial results[279](index=279&type=chunk)[280](index=280&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=63&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[300](index=300&type=chunk) [Item 5. Other Information](index=63&type=section&id=Item%205.%20Other%20Information) The company reported no other information for this item - None[301](index=301&type=chunk) [Item 6. Exhibits](index=64&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the 10-Q report, including CEO/CFO certifications and Inline XBRL data files for the financial statements - The exhibits include certifications from the CEO and Interim CFO as required by Sections 302 and 906 of the Sarbanes-Oxley Act[304](index=304&type=chunk) - The financial statements are provided in Inline XBRL format as part of the filing[304](index=304&type=chunk)

Green Dot Corporation (NYSE:GDOT) Q2 2021 Earnings Conference Call August 3, 2021 5:00 PM ET Company Participants Alison Lubert – Vice President of Communications Dan Henry – Chief Executive Officer and President Jess Unruh – Interim Chief Financial Officer and Chief Accounting Officer Conference Call Participants Bob Napoli – William Blair Andrew Jeffrey – Truist Securities Ramsey El-Assal – Barclays Andrew Schmidt – Citi Steven Kwok – KBW Operator Good day, and welcome to the Green Dot Corporation Second ...

SUPPLEMENTAL FINANCIAL INFORMATION | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|-------|-------|---------------|-------|-------|--------------------------------------------------|-------|---------------------------------------------|-------|-------| ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________________________________ FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-34819 (Exact name of Registrant as specified in its charter) Delaware ...

Green Dot Corporation (NYSE:GDOT) Q1 2021 Earnings Conference Call May 5, 2021 5:00 PM ET Company Participants Ali Lubert – Vice President-Communications Dan Henry – Chief Executive Officer Jess Unruh – Interim Chief Financial Officer and Chief Accounting Officer Conference Call Participants Bob Napoli – William Blair Damian Wille – Barclays Andrew Jeffrey – Truist Andrew Schmidt – Citi Steven Kwok – KBW Mike Grondahl – Northland Securities Operator Good day, and welcome to the Green Dot Corporation First Q ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________________________________ FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-34819 (Exact name of Registrant as specified in its charter) Delaware 95-47 ...

SUPPLEMENTAL FINANCIAL INFORMATION | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|--------------------|-------|-------|-------|----------------------------------------------------------------------------------------------------------------------------|-------|--------------------------------------|-------|---------------|--------------|-------|------------------------|-------|-------|----------------------------------------------------------------- ...