Document_And_Entity_Informatio
Document And Entity Information Document | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | GREEN DOT CORP | |
Trading Symbol | GDOT | |
Entity Central Index Key | 1386278 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 51,756,400 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Unrestricted cash and cash equivalents | $878,244 | $724,158 |
Federal funds sold | 480 | 480 |
Restricted cash | 4,841 | 2,015 |
Investment securities available-for-sale, at fair value | 30,482 | 46,650 |
Settlement assets | 45,904 | 148,694 |
Accounts receivable, net | 38,154 | 48,904 |
Prepaid expenses and other assets | 26,326 | 23,992 |
Income tax receivable | 0 | 16,290 |
Total current assets | 1,024,431 | 1,011,183 |
Restricted cash | 2,182 | 2,152 |
Investment securities, available-for-sale, at fair value | 89,801 | 73,781 |
Accounts receivable, net | 15 | 13 |
Loans to bank customers, net of allowance for loan losses of $340 and $444 as of March 31, 2015 and December 31, 2014, respectively | 6,815 | 6,550 |
Prepaid expenses and other assets | 11,865 | 11,883 |
Property and equipment, net | 79,809 | 77,284 |
Deferred expenses | 11,526 | 17,326 |
Net deferred tax assets | 2,648 | 6,268 |
Goodwill and intangible assets | 494,457 | 417,200 |
Total assets | 1,723,549 | 1,623,640 |
Current liabilities: | ||
Accounts payable | 24,793 | 36,444 |
Deposits | 644,273 | 565,401 |
Obligations to customers | 70,797 | 98,052 |
Settlement obligations | 4,288 | 4,484 |
Amounts due to card issuing banks for overdrawn accounts | 2,393 | 1,224 |
Other accrued liabilities | 74,678 | 79,137 |
Deferred revenue | 18,825 | 24,418 |
Note payable | 22,500 | 22,500 |
Income tax payable | 7,819 | 0 |
Net deferred tax liabilities | 3,357 | 3,995 |
Total current liabilities | 873,723 | 835,655 |
Other accrued liabilities | 40,369 | 31,295 |
Deferred revenue | 175 | 200 |
Note payable | 121,875 | 127,500 |
Total liabilities | 1,036,142 | 994,650 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Additional paid-in capital | 400,814 | 383,296 |
Retained earnings | 286,506 | 245,693 |
Accumulated other comprehensive income (loss) | 33 | -52 |
Total stockholders’ equity | 687,407 | 628,990 |
Total liabilities and stockholders’ equity | 1,723,549 | 1,623,640 |
Convertible Series A preferred stock [Member] | ||
Stockholders’ equity: | ||
Convertible Series A preferred stock, $0.001 par value (as converted): 10 shares authorized as of March 31, 2015 and December 31, 2014; 2 shares issued and outstanding as of March 31, 2015 and December 31, 2014, respectively | 2 | 2 |
Common Class A [Member] | ||
Stockholders’ equity: | ||
Class A common stock, $0.001 par value: 100,000 shares authorized as of March 31, 2015 and December 31, 2014; 51,699 and 51,146 shares issued and outstanding as of March 31, 2015 and December 31, 2014, respectively | $52 | $51 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance For Loan Losses | $340 | $444 |
Convertible Series A preferred stock [Member] | ||
Convertible Series A Preferred Stock, par value | $0.00 | $0.00 |
Convertible Series A Preferred Stock, shares authorized | 10,000 | 10,000 |
Convertible Series A Preferred Stock, Shares Issued | 2,000 | 2,000 |
Convertible Series A Preferred Stock, Shares Outstanding | 2,000 | 2,000 |
Common Class A [Member] | ||
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 51,699,000 | 51,146,000 |
Common stock, shares outstanding | 51,699,000 | 51,146,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating revenues: | ||
Card revenues and other fees | $87,224 | $68,167 |
Processing and settlement service revenues | 87,121 | 46,276 |
Interchange revenues | 54,726 | 47,214 |
Stock-based retailer incentive compensation | -1,906 | -2,388 |
Total operating revenues | 227,165 | 159,269 |
Total operating revenues | ||
Sales and marketing expenses | 61,279 | 60,243 |
Compensation and benefits expenses | 41,354 | 26,963 |
Processing expenses | 30,600 | 22,079 |
Other general and administrative expenses | 28,036 | 26,324 |
Total operating expenses | 161,269 | 135,609 |
Operating income | 65,896 | 23,660 |
Interest income | 1,378 | 977 |
Interest expense | -1,496 | -16 |
Income before income taxes | 65,778 | 24,621 |
Income tax expense | 24,965 | 9,316 |
Net income | 40,813 | 15,305 |
Income attributable to preferred stock | -1,165 | -2,282 |
Net income available to common stockholders | $39,648 | $13,023 |
Basic earnings per common share (in dollars per share) | $0.77 | $0.34 |
Diluted earnings per common share (in dollars per share) | $0.76 | $0.33 |
Basic weighted-average common shares issued and outstanding (shares) | 51,448 | 37,462 |
Diluted weighted-average common shares issued and outstanding (shares) | 51,938 | 38,769 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $40,813 | $15,305 |
Other comprehensive income | ||
Unrealized holding gains, net of tax | 85 | 37 |
Comprehensive income | $40,898 | $15,342 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities | ||
Net Income | $40,813 | $15,305 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization of property and equipment | 9,375 | 7,664 |
Amortization of intangible assets | 5,325 | 0 |
Provision for uncollectible overdrawn accounts | 15,192 | 8,490 |
Employee stock-based compensation | 5,213 | 3,972 |
Stock-based retailer incentive compensation | 1,906 | 2,388 |
Amortization of premium on available-for-sale investment securities | 235 | 313 |
Net realized loss (gain) on investment securities | 2 | -29 |
Recovery for uncollectible trade receivables | -5 | -9 |
Change in fair value of contingent consideration | -7,616 | 0 |
Amortization of deferred financing costs | 384 | 0 |
Deferred income tax expense | -21 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | -2,308 | 15,668 |
Prepaid expenses and other assets | -31 | -3,835 |
Deferred expenses | 5,800 | 3,548 |
Accounts payable and other accrued liabilities | -9,579 | -6,348 |
Amounts due to card issuing banks for overdrawn accounts | 1,169 | -49,760 |
Deferred revenue | -5,618 | -6,179 |
Income tax receivable | 24,091 | 8,641 |
Net cash provided by (used in) operating activities | 84,327 | -171 |
Investing activities | ||
Purchases of available-for-sale investment securities | -34,631 | -44,548 |
Proceeds from maturities of available-for-sale securities | 21,972 | 47,445 |
Proceeds from sales of available-for-sale securities | 12,733 | 35,411 |
(Increase) decrease in restricted cash | -1,429 | 683 |
Payments for acquisition of property and equipment | -14,144 | -10,512 |
Net (increase) decrease in loans | -265 | 336 |
Acquisition, net of cash acquired | -65,209 | 0 |
Net cash (used in) provided by investing activities | -80,973 | 28,815 |
Financing activities | ||
Repayments of borrowings from note payable | -5,625 | 0 |
Borrowings on revolving line of credit | 30,001 | 0 |
Repayments on revolving line of credit | -30,001 | 0 |
Proceeds from exercise of options | 117 | 1,626 |
Excess tax benefits from exercise of options | 24 | 525 |
Net increase in deposits | 78,872 | 306,769 |
Net increase (decrease) in obligations to customers | 77,344 | -13,346 |
Net cash provided by financing activities | 150,732 | 295,574 |
Net increase in unrestricted cash, cash equivalents, and federal funds sold | 154,086 | 324,218 |
Unrestricted cash, cash equivalents, and federal funds sold, beginning of year | 724,638 | 423,621 |
Unrestricted cash, cash equivalents, and federal funds sold, end of period | 878,724 | 747,839 |
Cash paid for interest | 1,112 | 16 |
Cash paid for income taxes | $779 | $219 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization |
Green Dot Corporation (“we,” “us” and “our” refer to Green Dot Corporation and its wholly-owned subsidiaries) is a pro-consumer technology innovator with a mission to reinvent personal banking for the masses. Our products and services include: Green Dot MasterCard and Visa-branded prepaid debit cards and several co-branded reloadable prepaid card programs, collectively referred to as our GPR cards; Visa-branded gift cards; checking account products, such as GoBank, an innovative checking account developed for use via mobile phones that is available at Walmart and online; our swipe reload and MoneyPak proprietary products, collectively 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 to facilitate the secure receipt of funds claimed by a taxpayer as a refund on a taxpayer's tax return. | |
Our products and services are available to consumers through a large-scale "branchless bank" distribution network of more than 100,000 U.S. locations, including retailers, neighborhood financial service center locations and tax preparation offices, as well as online, in the leading app stores and through leading online tax preparation providers. The Green Dot Network enables consumers to use cash to reload our prepaid debit cards or to transfer cash to any of our Green Dot Network acceptance members, including competing prepaid card programs and other online accounts. We are also the tax refund processing service provider for four out of the six leading consumer online and in-person tax preparation companies. | |
We market our products and services to banked, underbanked and unbanked consumers in the United States. We use distribution channels other than traditional bank branches to market our GPR cards, checking accounts and cash transfer services, such as third-party retailer locations nationwide, financial service centers, and the Internet. Our prepaid debit cards are issued by our wholly-owned subsidiary, Green Dot Bank and third-party issuing banks including The Bancorp Bank and Sunrise Banks, N.A. We also have multi-year distribution arrangements with many large and medium-sized retailers, such as Walgreens, CVS, Rite Aid, 7-Eleven, Kroger, Kmart, and Dollar Tree, and with various industry resellers, such as Blackhawk Network and Incomm. We currently have a one year contract with Walmart, pending the outcome of our proposal for renewal. We refer to participating retailers collectively as our “retail distributors.” Our tax refund processing services are integrated into the offerings of the nation’s leading tax software companies, which, together, enable us to serve approximately 25,000 independent online and in-person tax preparers and accountants nationwide. | |
In January 2015, we completed the acquisition of AccountNow, Inc. We issued approximately 514,000 shares of our Class A common stock on the date of close and the remainder of the consideration was paid in cash. AccountNow's results of operations are included in our consolidated statements of operations following the acquisition date. We have not presented pro-forma results of operations because the effect of this acquisition was not material to our financial results. Of the total consideration transferred, we made a preliminary allocation of $65.9 million and $16.1 million to goodwill and intangible assets, respectively. We may adjust this allocation after obtaining more information regarding, among other things, asset valuations, liabilities assumed, and revisions of preliminary estimates. The purchase price allocation will be finalized in 2015. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies |
Basis of Presentation | |
The accompanying unaudited consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America, or GAAP. We consolidated our wholly-owned subsidiaries and eliminated all significant intercompany balances and transactions. | |
We have also prepared the accompanying unaudited consolidated financial statements in conformity with the instructions to Form 10-Q and Article 10 of Regulation S-X and, consequently, they do not include all of the annual disclosures required by GAAP. Reference is made to our Annual Report on Form 10-K for the year ended December 31, 2014 for additional disclosures, including a summary of our significant accounting policies. There have been no changes to our significant accounting policies during the three months ended March 31, 2015. In our opinion, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of normal and recurring items, except as otherwise noted, necessary for the fair presentation of our financial position, results of operations and cash flows for the interim periods presented. | |
Recent Accounting Pronouncements | |
In April 2015, the FASB issued ASU No. 2015-05, Customer's Accounting for Fees Paid in a Cloud Computing Arrangement ("ASU 2015-05"). This ASU provides guidance to customers about whether a cloud computing | |
Note 2—Summary of Significant Accounting Policies (continued) | |
arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement 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 a customer's accounting for service contracts. ASU 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015. We are currently evaluating the provisions of the ASU to determine the potential impact the new standard will have on our consolidated financial statements. | |
In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03") which changes the presentation of debt issuance costs in financial statements. ASU 2015-03 requires an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. The ASU is effective for annual reporting periods beginning after December 15, 2015, with early adoption permitted. The new guidance will be applied retrospectively to each prior period presented. We are currently in the process of evaluating the impact of adoption of the ASU on our consolidated balance sheets. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), which supersedes nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP. | |
The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). The FASB recently issued a proposal to extend the effective date by one year. We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements. |
Investment_Securities
Investment Securities | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||
Investment Securities | Investment Securities | |||||||||||||||||||||||
Our available-for-sale investment securities were as follows: | ||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||
Corporate bonds | $ | 26,828 | $ | 5 | $ | (29 | ) | $ | 26,804 | |||||||||||||||
Commercial paper | 849 | — | — | 849 | ||||||||||||||||||||
U.S. Treasury notes | 21,363 | 8 | (1 | ) | 21,370 | |||||||||||||||||||
Mortgage-backed securities | 55,894 | 180 | (159 | ) | 55,915 | |||||||||||||||||||
Municipal bonds | 2,133 | 78 | (5 | ) | 2,206 | |||||||||||||||||||
Asset-backed securities | 13,136 | 7 | (4 | ) | 13,139 | |||||||||||||||||||
Total investment securities | $ | 120,203 | $ | 278 | $ | (198 | ) | $ | 120,283 | |||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Corporate bonds | $ | 40,433 | $ | 4 | $ | (48 | ) | $ | 40,389 | |||||||||||||||
Commercial paper | 7,648 | 1 | — | 7,649 | ||||||||||||||||||||
U.S. Treasury notes | 14,782 | 5 | (16 | ) | 14,771 | |||||||||||||||||||
Agency securities | 2,950 | — | — | 2,950 | ||||||||||||||||||||
Mortgage-backed securities | 35,420 | 119 | (177 | ) | 35,362 | |||||||||||||||||||
Municipal bonds | 5,555 | 61 | (21 | ) | 5,595 | |||||||||||||||||||
Asset-backed securities | 13,727 | — | (12 | ) | 13,715 | |||||||||||||||||||
Total investment securities | $ | 120,515 | $ | 190 | $ | (274 | ) | $ | 120,431 | |||||||||||||||
Note 3 — Investment Securities (continued) | ||||||||||||||||||||||||
As of March 31, 2015 and December 31, 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 | 12 months or more | Total | Total unrealized loss | |||||||||||||||||||||
Fair value | Unrealized loss | Fair value | Unrealized loss | fair value | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||
Corporate bonds | $ | 21,275 | $ | (29 | ) | $ | — | $ | — | $ | 21,275 | $ | (29 | ) | ||||||||||
US Treasury notes | 6,070 | (1 | ) | 6,070 | (1 | ) | ||||||||||||||||||
Mortgage-backed securities | 27,952 | (159 | ) | — | — | 27,952 | (159 | ) | ||||||||||||||||
Municipal bonds | — | — | 395 | (5 | ) | 395 | (5 | ) | ||||||||||||||||
Asset-backed securities | 6,115 | (4 | ) | — | — | 6,115 | (4 | ) | ||||||||||||||||
Total investment securities | $ | 61,412 | $ | (193 | ) | $ | 395 | $ | (5 | ) | $ | 61,807 | $ | (198 | ) | |||||||||
December 31, 2014 | ||||||||||||||||||||||||
Corporate bonds | $ | 33,348 | $ | (48 | ) | $ | — | $ | — | $ | 33,348 | $ | (48 | ) | ||||||||||
U.S. Treasury notes | 6,068 | (16 | ) | — | — | 6,068 | (16 | ) | ||||||||||||||||
Mortgage-backed securities | 21,495 | (163 | ) | 1,143 | (14 | ) | 22,638 | (177 | ) | |||||||||||||||
Municipal bonds | — | — | 419 | (21 | ) | 419 | (21 | ) | ||||||||||||||||
Asset-backed securities | 12,254 | (12 | ) | — | — | 12,254 | (12 | ) | ||||||||||||||||
Total investment securities | $ | 73,165 | $ | (239 | ) | $ | 1,562 | $ | (35 | ) | $ | 74,727 | $ | (274 | ) | |||||||||
We did not record any other-than-temporary impairment losses during the three months ended March 31, 2015 or 2014 on our available-for-sale investment securities. We do not intend to sell these investments and we have determined that it is more likely than not that we will not be required to sell these investments before recovery of their amortized cost bases, which may be at maturity. | ||||||||||||||||||||||||
As of March 31, 2015, the contractual maturities of our available-for-sale investment securities were as follows: | ||||||||||||||||||||||||
Amortized cost | Fair value | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Due in one year or less | $ | 30,476 | $ | 30,482 | ||||||||||||||||||||
Due after one year through five years | 19,116 | 19,102 | ||||||||||||||||||||||
Due after five years through ten years | 331 | 340 | ||||||||||||||||||||||
Due after ten years | 1,250 | 1,305 | ||||||||||||||||||||||
Mortgage and asset-backed securities | 69,030 | 69,054 | ||||||||||||||||||||||
Total investment securities | $ | 120,203 | $ | 120,283 | ||||||||||||||||||||
The expected payments on mortgage-backed and asset-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations. |
Accounts_Receivable
Accounts Receivable | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Receivables [Abstract] | ||||||||
Accounts Receivable | Accounts Receivable | |||||||
Accounts receivable, net consisted of the following: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
(In thousands) | ||||||||
Overdrawn account balances due from cardholders | $ | 14,591 | $ | 14,412 | ||||
Reserve for uncollectible overdrawn accounts | (12,580 | ) | (11,196 | ) | ||||
Net overdrawn account balances due from cardholders | 2,011 | 3,216 | ||||||
Trade receivables | 4,443 | 8,265 | ||||||
Reserve for uncollectible trade receivables | (7 | ) | (16 | ) | ||||
Net trade receivables | 4,436 | 8,249 | ||||||
Receivables due from card issuing banks | 20,455 | 28,349 | ||||||
Fee advances | 1,408 | 6,545 | ||||||
Other receivables | 9,859 | 2,558 | ||||||
Accounts receivable, net | $ | 38,169 | $ | 48,917 | ||||
Activity in the reserve for uncollectible overdrawn accounts consisted of the following: | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
Balance, beginning of period | $ | 11,196 | $ | 10,363 | ||||
Provision for uncollectible overdrawn accounts: | ||||||||
Fees | 13,644 | 7,740 | ||||||
Purchase transactions | 1,548 | 750 | ||||||
Charge-offs | (13,808 | ) | (9,688 | ) | ||||
Balance, end of period | $ | 12,580 | $ | 9,165 | ||||
Loans_to_Bank_Customers
Loans to Bank Customers | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | ||||||||||||||||||||||||
Loans to Bank Customers | Loans to Bank Customers | |||||||||||||||||||||||
The following table presents total outstanding loans, gross of the related allowance for loan losses, and a summary of the related payment status: | ||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Total Past Due | Total Current or Less Than 30 Days Past Due | Total Outstanding | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||
Residential | $ | — | $ | — | $ | — | $ | — | $ | 3,939 | $ | 3,939 | ||||||||||||
Commercial | — | — | 31 | 31 | 356 | 387 | ||||||||||||||||||
Installment | 3 | — | — | 3 | 2,826 | 2,829 | ||||||||||||||||||
Total loans | $ | 3 | $ | — | $ | 31 | $ | 34 | $ | 7,121 | $ | 7,155 | ||||||||||||
Percentage of outstanding | — | % | — | % | 0.4 | % | 0.5 | % | 99.5 | % | 100 | % | ||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Residential | $ | — | $ | — | $ | — | $ | — | $ | 3,861 | $ | 3,861 | ||||||||||||
Commercial | — | — | — | — | 697 | 697 | ||||||||||||||||||
Installment | 1 | 3 | 4 | 8 | 2,428 | 2,436 | ||||||||||||||||||
Total loans | $ | 1 | $ | 3 | $ | 4 | $ | 8 | $ | 6,986 | $ | 6,994 | ||||||||||||
Percentage of outstanding | — | % | — | % | 0.1 | % | 0.1 | % | 99.9 | % | 100 | % | ||||||||||||
Note 5—Loans to Bank Customers (continued) | ||||||||||||||||||||||||
Nonperforming Loans | ||||||||||||||||||||||||
The following table presents the carrying value, gross of the related allowance for loan losses, of our nonperforming loans. See Note 2–Summary of Significant Accounting Policies to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2014 for further information on the criteria for classification as nonperforming. | ||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Residential | $ | 57 | $ | 54 | ||||||||||||||||||||
Commercial | 31 | 31 | ||||||||||||||||||||||
Installment | 141 | 104 | ||||||||||||||||||||||
Total loans | $ | 229 | $ | 189 | ||||||||||||||||||||
Credit Quality Indicators | ||||||||||||||||||||||||
We closely monitor and assess the credit quality and credit risk of our loan portfolio on an ongoing basis. We continuously review and update loan risk classifications. We evaluate our loans using non-classified or classified as the primary credit quality indicator. Classified loans are those loans that have demonstrated credit weakness where we believe there is a heightened risk of principal loss, including all impaired loans. Classified loans are generally internally categorized as substandard, doubtful or loss, consistent with regulatory guidelines. | ||||||||||||||||||||||||
The table below presents the carrying value, gross of the related allowance for loan losses, of our loans within the primary credit quality indicators related to our loan portfolio: | ||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
Non-Classified | Classified | Non-Classified | Classified | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Residential | $ | 3,860 | $ | 79 | $ | 3,604 | $ | 257 | ||||||||||||||||
Commercial | 325 | 62 | 635 | 62 | ||||||||||||||||||||
Installment | 2,736 | 93 | 2,306 | 130 | ||||||||||||||||||||
Total loans | $ | 6,921 | $ | 234 | $ | 6,545 | $ | 449 | ||||||||||||||||
Impaired Loans and Troubled Debt Restructurings | ||||||||||||||||||||||||
When, for economic or legal reasons related to a borrower’s financial difficulties, we grant a concession for other than an insignificant period of time to a borrower that we would not otherwise consider, the related loan is classified as a Troubled Debt Restructuring, or TDR. Our TDR modifications involve an extension of the maturity date at a stated interest rate lower than the current market rate for new debt with similar risk. The following table presents our impaired loans and loans that we modified as TDRs as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
Unpaid Principal Balance | Carrying Value | Unpaid Principal Balance | Carrying Value | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Residential | $ | 95 | $ | 57 | $ | 97 | $ | 54 | ||||||||||||||||
Commercial | 270 | 31 | 270 | 31 | ||||||||||||||||||||
Installment | 394 | 141 | 367 | 104 | ||||||||||||||||||||
Note 5—Loans to Bank Customers (continued) | ||||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||
Activity in the allowance for loan losses consisted of the following: | ||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Balance, beginning of period | $ | 444 | $ | 464 | ||||||||||||||||||||
Provision for loans | (73 | ) | — | |||||||||||||||||||||
Loans charged off | (35 | ) | (33 | ) | ||||||||||||||||||||
Recoveries of loans previously charged off | 4 | 4 | ||||||||||||||||||||||
Balance, end of period | $ | 340 | $ | 435 | ||||||||||||||||||||
Employee_StockBased_Compensati
Employee Stock-Based Compensation | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||
Employee Stock-Based Compensation | Employee Stock-Based Compensation | |||||||
We currently grant stock options and restricted stock units to employees and directors under our 2010 Equity Incentive Plan. Additionally, through our 2010 Employee Stock Purchase Plan, employees are able to purchase shares of our Class A common stock at a discount through payroll deductions. We have reserved shares of our Class A common stock for issuance under these plans. | ||||||||
The following table summarizes restricted stock units granted under our 2010 Equity Incentive Plan: | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(In thousands, except per share data) | ||||||||
Restricted stock units granted | 337 | 100 | ||||||
Weighted-average grant-date fair value | $ | 19.48 | $ | 20.53 | ||||
We issued no stock options during the three months ended March 31, 2015, and 53,000 during the three months ended March 31, 2014. Additionally, on March 31, 2015, we granted 242,587 shares of performance-based restricted stock units to certain executive employees under our 2010 Equity Incentive Plan. | ||||||||
The total stock-based compensation expense recognized was $5.2 million and $4.0 million for the three months ended March 31, 2015 and 2014, respectively. Total stock-based compensation expense includes amounts related to awards of stock options and restricted stock units and purchases under our 2010 Employee Stock Purchase Plan. |
Deposits
Deposits | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Deposits [Abstract] | ||||||||
Deposits | Deposits | |||||||
Deposits are categorized as non-interest or interest-bearing deposits as follows: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
(In thousands) | ||||||||
Non-interest bearing deposit accounts | ||||||||
GPR deposits | $ | 600,975 | $ | 529,779 | ||||
Other demand deposits | 26,653 | 19,631 | ||||||
Total non-interest bearing deposit accounts | 627,628 | 549,410 | ||||||
Interest-bearing deposit accounts | ||||||||
Negotiable order of withdrawal (NOW) | 981 | 905 | ||||||
Savings | 8,377 | 7,985 | ||||||
Time deposits, denominations greater than or equal to $100 | 5,481 | 5,263 | ||||||
Time deposits, denominations less than $100 | 1,806 | 1,838 | ||||||
Total interest-bearing deposit accounts | 16,645 | 15,991 | ||||||
Total deposits | $ | 644,273 | $ | 565,401 | ||||
Note 7—Deposits (continued) | ||||||||
The scheduled contractual maturities for total time deposits are presented in the table below: | ||||||||
March 31, 2015 | ||||||||
(In thousands) | ||||||||
Due in 2015 | $ | 3,181 | ||||||
Due in 2016 | 1,880 | |||||||
Due in 2017 | 1,799 | |||||||
Due in 2018 | 58 | |||||||
Due in 2019 | 350 | |||||||
Thereafter | 19 | |||||||
Total time deposits | $ | 7,287 | ||||||
Note_Payable
Note Payable | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Note Payable | Note Payable | |||||||
As of March 31, 2015 and December 31, 2014, the Company's debt consisted of the following: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
(In thousands) | ||||||||
Term facility | $ | 144,375 | $ | 150,000 | ||||
Revolving facility | — | — | ||||||
Total notes payable | $ | 144,375 | $ | 150,000 | ||||
In October 2014, we entered into a $225.0 million credit agreement with Bank of America, N.A., as an administrative agent, Wells Fargo Bank, National Association, and the other lenders party thereto. The credit agreement provides for 1) a $75.0 million five-year revolving facility (the "Revolving Facility") and 2) a five-year $150.0 million term loan facility ("Term Facility" and, together with the Revolving Facility, the “Senior Credit Facility). The credit agreement also includes an accordion feature that, subject to securing additional commitments from existing lenders or new lending institutions, will allow us to increase the aggregate amount of these facilities by up to an additional $50.0 million. | ||||||||
Interest | ||||||||
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 LIBOR rate plus1.0% (the “Base Rate"), plus in either case an applicable margin. The applicable margin for borrowings depends on our total leverage ratio and varies from 2.50% to 3.00% for LIBOR Rate loans and 1.50% to 2.00% for Base Rate loans. The effective interest rate on borrowings outstanding as of March 31, 2015 was 2.93%. Interest expense, excluding the amortization of debt issuance costs, related to our Senior Credit Facility was $1.2 million for the three months ended March 31, 2015. | ||||||||
Covenants and restrictions | ||||||||
The Senior Credit Facility contains customary representations and warranties relating to us and our subsidiaries. The Senior Credit Facility also contains certain affirmative and negative covenants including negative covenants that limit or restrict, among other things, liens, indebtedness, investments and acquisitions, mergers and fundamental changes, asset sales, restricted payments, changes in the nature of the business, transactions with affiliates and other matters customarily restricted in such agreements. We must maintain a minimum fixed charge coverage ratio and a maximum consolidated leverage ratio at the end of each fiscal quarter, as set forth in the credit agreement. At March 31, 2015, we were in compliance with all such covenants. |
Income_Taxes
Income Taxes | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Income Taxes | Income Taxes | |||||||
Income tax expense for the three months ended March 31, 2015 and 2014 differs from the amount computed by applying the statutory federal income tax rate to income before income taxes. The sources and tax effects of the differences are as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
U.S. federal statutory tax rate | 35 | % | 35 | % | ||||
State income taxes, net of federal tax benefit | 2 | 1.8 | ||||||
General business credits | (0.7 | ) | (1.5 | ) | ||||
Employee stock-based compensation | 0.7 | 1.4 | ||||||
Other | 1 | 1.1 | ||||||
Effective tax rate | 38 | % | 37.8 | % | ||||
The effective tax rate for the | ||||||||
three months ended March 31, 2015 and 2014 differs from the statutory federal income tax rate of 35% primarily due to state income taxes, net of federal tax benefit, general business credits and non-deductible employee stock based compensation. The increase in the effective tax rates for the three months ended March 31, 2015 as compared to the three months ended March 31, 2014 is primarily attributable to the expiration of certain state business tax credit programs on December 31, 2013, that gradually decreases the business tax credits available to us over the next five years. | ||||||||
We establish a valuation allowance when we consider it more-likely-than-not that some portion or all of the deferred tax assets will not be realized. As of March 31, 2015 and March 31, 2014, we did not have a valuation allowance on any of our deferred tax assets as we believed it was more-likely-than-not that we would realize the benefits of our deferred tax assets. | ||||||||
We are subject to examination by the Internal Revenue Service, or IRS, and various state tax authorities. Our consolidated federal income tax returns for the five-months ended December 31, 2009 and the years ended December 31, 2010 and 2011 are currently under examination by the IRS. We remain subject to examination of our federal income tax return for the years ended December 31, 2012 and 2013. We generally remain subject to examination of our various state income tax returns for a period of four to five years from the respective dates the returns were filed. | ||||||||
As of March 31, 2015, we have net operating loss carryforwards of approximately $46.8 million and $40.3 million for federal and state tax purposes, respectively, which will be available to offset future income. If not used, these carryforwards will expire between 2025 and 2034. In addition, we have state business tax credits of approximately $4.1 million that will expire between 2028 and 2034 and other state business tax credits of approximately $1.4 million that will expire 2024. | ||||||||
As of March 31, 2015 and 2014, we had a liability of $6.9 million and $4.4 million, respectively, for unrecognized tax benefits related to various federal and state income tax matters excluding interest, penalties and related tax benefits. The reconciliation of the beginning unrecognized tax benefits balance to the ending balance is as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
Beginning balance | $ | 6,190 | $ | 3,724 | ||||
Increases related to positions taken during the current year | 676 | 676 | ||||||
Ending balance | $ | 6,866 | $ | 4,400 | ||||
The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate | $ | 6,866 | $ | 4,400 | ||||
We recognized accrued interest and penalties related to unrecognized tax benefits for the three months ended March 31, 2015 and 2014, of approximately $0.3 million and $0.3 million, respectively. |
Shareholders_Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity |
Convertible Preferred Stock | |
During the three months ended March 31, 2014, 1,491 shares of Series A Convertible Junior Participating Non-Cumulative Perpetual Preferred Stock converted into 1,491,000 shares of Class A Common Stock. There were no such conversions for the three months ended March 31, 2015. |
Earnings_per_Common_Share
Earnings per Common Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings per Common Share | Earnings per Common Share | |||||||
The calculation of basic and diluted EPS was as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(In thousands, except per share data) | ||||||||
Basic earnings per Class A common share | ||||||||
Net income | $ | 40,813 | $ | 15,305 | ||||
Income attributable to preferred stock | (1,165 | ) | (2,282 | ) | ||||
Income attributable to common stock subject to repurchase | (81 | ) | (187 | ) | ||||
Net income allocated to Class A common stockholders | $ | 39,567 | $ | 12,836 | ||||
Weighted-average Class A shares issued and outstanding | 51,448 | 37,462 | ||||||
Basic earnings per Class A common share | $ | 0.77 | $ | 0.34 | ||||
Diluted earnings per Class A common share | ||||||||
Net income allocated to Class A common stockholders | $ | 39,567 | $ | 12,836 | ||||
Re-allocated earnings | 11 | 70 | ||||||
Diluted net income allocated to Class A common stockholders | 39,578 | 12,906 | ||||||
Weighted-average Class A shares issued and outstanding | 51,448 | 37,462 | ||||||
Dilutive potential common shares: | ||||||||
Stock options | 281 | 1,059 | ||||||
Restricted stock units | 193 | 233 | ||||||
Employee stock purchase plan | 16 | 15 | ||||||
Diluted weighted-average Class A shares issued and outstanding | 51,938 | 38,769 | ||||||
Diluted earnings per Class A common share | $ | 0.76 | $ | 0.33 | ||||
As of March 31, 2015 and March 31, 2014, 36,762 and 478,482 shares, respectively, of Class A common stock issued to Walmart were subject to our repurchase right. Basic and diluted EPS for these shares were the same as basic and diluted EPS for our Class A common stock for the three months ended March 31, 2015 and March 31, 2014. | ||||||||
For the periods presented, we excluded all shares of convertible preferred stock and certain restricted stock units and stock options outstanding, which could potentially dilute basic EPS in the future, from the computation of diluted EPS as their effect was anti-dilutive. The following table shows the weighted-average number of anti-dilutive shares excluded from the diluted EPS calculation: | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
Class A common stock | ||||||||
Options to purchase Class A common stock | 795 | 486 | ||||||
Restricted stock units | 122 | 17 | ||||||
Conversion of convertible preferred stock | 1,515 | 6,660 | ||||||
Total options, restricted stock units and convertible preferred stock | 2,432 | 7,163 | ||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||||||
Under applicable accounting guidance, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. | ||||||||||||||||
We determine the fair values of our financial instruments based on the fair value hierarchy established under applicable accounting guidance which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs used to measure fair value. | ||||||||||||||||
For more information regarding the fair value hierarchy and how we measure fair value, see Note 2–Summary of Significant Accounting Policies to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2014. | ||||||||||||||||
As of March 31, 2015 and December 31, 2014, our assets and liabilities carried at fair value on a recurring basis were as follows: | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||
March 31, 2015 | (In thousands) | |||||||||||||||
Assets | ||||||||||||||||
Corporate bonds | $ | — | $ | 26,804 | $ | — | $ | 26,804 | ||||||||
Commercial paper | — | 849 | — | 849 | ||||||||||||
U.S. Treasury notes | — | 21,370 | — | 21,370 | ||||||||||||
Mortgage-backed securities | — | 55,915 | — | 55,915 | ||||||||||||
Municipal bonds | — | 2,206 | — | 2,206 | ||||||||||||
Asset-backed securities | — | 13,139 | — | 13,139 | ||||||||||||
Total assets | $ | — | $ | 120,283 | $ | — | $ | 120,283 | ||||||||
Liabilities | ||||||||||||||||
Contingent consideration | $ | — | $ | — | $ | 15,375 | $ | 15,375 | ||||||||
December 31, 2014 | ||||||||||||||||
Assets | ||||||||||||||||
Corporate bonds | $ | — | $ | 40,389 | $ | — | $ | 40,389 | ||||||||
Commercial paper | — | 7,649 | — | 7,649 | ||||||||||||
U.S. Treasury notes | — | 14,771 | — | 14,771 | ||||||||||||
Agency securities | — | 2,950 | — | 2,950 | ||||||||||||
Mortgage-backed securities | — | 35,362 | — | 35,362 | ||||||||||||
Municipal bonds | — | 5,595 | — | 5,595 | ||||||||||||
Asset-backed securities | — | 13,715 | — | 13,715 | ||||||||||||
Total assets | $ | — | $ | 120,431 | $ | — | $ | 120,431 | ||||||||
Liabilities | ||||||||||||||||
Contingent consideration | $ | — | $ | — | $ | 23,160 | $ | 23,160 | ||||||||
The following table presents changes in our contingent consideration payable for the three months ended March 31, 2015, which is categorized in Level 3 of the fair value hierarchy. | ||||||||||||||||
31-Mar-15 | ||||||||||||||||
(In thousands) | ||||||||||||||||
Balance, beginning of period | $ | 23,160 | ||||||||||||||
Payments of contingent consideration | (169 | ) | ||||||||||||||
Change in fair value of contingent consideration | (7,616 | ) | ||||||||||||||
Balance, end of period | $ | 15,375 | ||||||||||||||
Note 12—Fair Value Measurements (continued) | ||||||||||||||||
We based the fair value of our fixed income securities held as of March 31, 2015 and December 31, 2014 on quoted prices in active markets for similar assets. We had no transfers between Level 1, Level 2 or Level 3 assets during the three months ended March 31, 2015 or 2014. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | |||||||||||||||
The following describes the valuation technique for determining the fair value of financial instruments, whether or not such instruments are carried at fair value on our consolidated balance sheets. | ||||||||||||||||
Short-term Financial Instruments | ||||||||||||||||
Our short-term financial instruments consist principally of unrestricted and restricted cash and cash equivalents, federal funds sold, settlement assets and obligations, and obligations to customers. These financial instruments are short-term in nature, and, accordingly, we believe their carrying amounts approximate their fair values. Under the fair value hierarchy, these instruments are classified as Level 1. | ||||||||||||||||
Investment Securities | ||||||||||||||||
The fair values of investment securities have been derived using methodologies referenced in Note 2–Summary of Significant Accounting Policies to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2014. Under the fair value hierarchy, our investment securities are classified as Level 2. As of March 31, 2015, we had one investment classified as Level 3, which was not material to our investment portfolio. | ||||||||||||||||
Loans | ||||||||||||||||
We determined the fair values of loans by discounting both principal and interest cash flows expected to be collected using a discount rate commensurate with the risk that we believe a market participant would consider in determining fair value. Under the 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-derived rates based on our market yields on certificates of deposit, by maturity, at the measurement date. Under the fair value hierarchy, our deposits are classified as Level 2. | ||||||||||||||||
Contingent Consideration | ||||||||||||||||
The fair value of contingent consideration obligations are estimated through valuation models designed to estimate the probability of such contingent payments based on various assumptions. Estimated payments are discounted using present value techniques to arrive at an estimated fair value. Our contingent consideration payable is classified as Level 3 because we use unobservable inputs to estimate fair value, including the probability of achieving certain earnings thresholds and appropriate discount rates. Changes in fair value of contingent consideration are recorded through operating expenses. | ||||||||||||||||
Note Payable | ||||||||||||||||
The fair value of our note payable is based on borrowing rates currently available to a market participant for loans with similar terms or maturity. The carrying amount of our note payable is considered a Level 2 liability and approximates fair value since the interest rate charged is variable and commensurate with rates presently available in the market. | ||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||
The carrying values and fair values of certain financial instruments that were not carried at fair value, excluding short-term financial instruments for which the carrying value approximates fair value, at March 31, 2015 and December 31, 2014 are presented in the table below. | ||||||||||||||||
Note 13—Fair Value of Financial Instruments (continued) | ||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Financial Assets | ||||||||||||||||
Loans to bank customers, net of allowance | $ | 6,815 | $ | 5,493 | $ | 6,550 | $ | 5,399 | ||||||||
Financial Liabilities | ||||||||||||||||
Deposits | $ | 644,273 | $ | 644,214 | $ | 565,401 | $ | 565,345 | ||||||||
Note payable | $ | 144,375 | $ | 144,375 | $ | 150,000 | $ | 150,000 | ||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
We monitor the laws of all 50 states to identify state laws or regulations that apply (or may apply) to our products and services. We have obtained money transmitter licenses (or similar such licenses) where applicable, based on advice of counsel or when we have been requested to do so. If we were found to be 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 various legal proceedings. We review these actions on an ongoing basis to determine whether it is probable that a loss has occurred and use that information when making accrual and disclosure decisions. We have not established reserves or possible ranges of losses related to these proceedings because, at this time in the proceedings, the matters do not relate to a probable loss and/or the amounts are not reasonably estimable. | |
From time to time we enter into contracts containing provisions that contingently require us to indemnify various parties against claims from third parties. These contracts primarily relate to: (i) contracts with our card issuing banks, under which we are responsible to them for any unrecovered overdrafts on cardholders’ accounts; (ii) certain real estate leases, under which we may be required to indemnify property owners for environmental and other liabilities, and other claims arising from our use of the premises; (iii) certain agreements with our officers, directors, and employees, under which we may be required to indemnify these persons for liabilities arising out of their relationship with us; and (iv) contracts under which we may be required to indemnify our retail distributors, suppliers, vendors and other parties with whom we have contracts against claims arising from certain of our actions, omissions, violations of law and/or infringement of patents, trademarks, copyrights and/or other intellectual property rights. | |
Generally, a maximum obligation under these contracts is not explicitly stated. Because the obligated amounts associated with these types of agreements are not explicitly stated, the overall maximum amount of the obligation cannot be reasonably estimated. With the exception of overdrafts on cardholders’ accounts, historically, we have not been required to make payments under these and similar contingent obligations, and no liabilities have been recorded for these obligations in our consolidated balance sheets. | |
For additional information regarding overdrafts on cardholders’ accounts, refer to Note 4 — Accounts Receivable. | |
As of March 31, 2015 and December 31, 2014, we had $1.5 million outstanding in standby letters of credit related to our corporate facility lease. |
Significant_Customer_Concentra
Significant Customer Concentrations | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Risks and Uncertainties [Abstract] | ||||
Significant Customer Concentrations | Significant Customer Concentration | |||
A credit concentration may exist if customers are involved in similar industries, economic sectors, and geographic regions. Our retail distributors operate in similar economic sectors but diverse domestic geographic regions. The loss of a significant retail distributor could have a material adverse effect upon our card sales, profitability, and revenue growth. | ||||
Note 15—Significant Customer Concentration (continued) | ||||
Revenues derived from our products sold at retail distributors constituting greater than 10% of our total operating revenues were as follows: | ||||
Three Months Ended March 31, | ||||
2015 | 2014 | |||
Walmart | 40% | 61% | ||
Excluding stock-based retailer incentive compensation of $1.9 million and $2.4 million for the three months ended March 31, 2015 and 2014, respectively, revenues derived from our products sold at retail distributors constituting greater than 10% of our total operating revenues were as follows: | ||||
Three Months Ended March 31, | ||||
2015 | 2014 | |||
Walmart | 40% | 61% | ||
Included in these percentages are operating revenues derived from the Walmart MoneyCard program, which represented 29% and 44% for the three months ended March 31, 2015 and 2014, respectively. | ||||
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: | ||||
Three Months Ended March 31, | ||||
2015 | 2014 | |||
Concentration of GPR cards activated (in units) | 61% | 75% | ||
Concentration of sales of cash transfer products (in units) | 81% | 82% | ||
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: | ||||
March 31, 2015 | December 31, 2014 | |||
Walmart | 68% | 22% | ||
Three other largest retail distributors, as a group | 14% | 28% |
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment Information | Segment Information | |||||||||||||||
As of December 31, 2014, and prior, our operations were within one reportable segment. As a result of recent acquisitions occurring in late 2014 and early 2015, we have realigned our operations into two reportable segments: Account Services and Processing and Settlement Services. We identified our reportable segments based on factors such as how we manage our operations and how our chief operating decision maker views results. Our chief operating decision maker organizes and manages our business primarily on the basis of product and service offerings and uses operating income to assess profitability. | ||||||||||||||||
The Account Services segment consists of revenues and expenses derived from our branded and private label deposit account programs. These programs include our Green Dot-branded and affinity-branded 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 Other segment primarily consists of unallocated corporate expenses, depreciation and amortization, intercompany eliminations and other costs that are not considered when management evaluates segment performance. We do not evaluate performance or allocate resources based on segment asset data, and therefore such information is not presented. | ||||||||||||||||
Note 16—Segment Information (continued) | ||||||||||||||||
The following table presents certain financial information for each of our reportable segments for the three months ended March 31, 2015. We have determined that it is impracticable to restate segment information for the three months ended March 31, 2014, as well as to provide disclosures under both the old basis and new basis of reporting for certain items. Therefore, no such disclosures are presented. | ||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||
Account Services | Processing and Settlement Services | Corporate and Other | Total | |||||||||||||
(In thousands) | ||||||||||||||||
Operating revenues | $ | 147,859 | $ | 90,176 | $ | (10,870 | ) | $ | 227,165 | |||||||
Operating expenses | 118,153 | 36,858 | 6,258 | 161,269 | ||||||||||||
Operating income | $ | 29,706 | $ | 53,318 | $ | (17,128 | ) | $ | 65,896 | |||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
The accompanying unaudited consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America, or GAAP. We consolidated our wholly-owned subsidiaries and eliminated all significant intercompany balances and transactions. | |
We have also prepared the accompanying unaudited consolidated financial statements in conformity with the instructions to Form 10-Q and Article 10 of Regulation S-X and, consequently, they do not include all of the annual disclosures required by GAAP. Reference is made to our Annual Report on Form 10-K for the year ended December 31, 2014 for additional disclosures, including a summary of our significant accounting policies. There have been no changes to our significant accounting policies during the three months ended March 31, 2015. In our opinion, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of normal and recurring items, except as otherwise noted, necessary for the fair presentation of our financial position, results of operations and cash flows for the interim periods presented. | |
New Accounting Pronouncements | Recent Accounting Pronouncements |
In April 2015, the FASB issued ASU No. 2015-05, Customer's Accounting for Fees Paid in a Cloud Computing Arrangement ("ASU 2015-05"). This ASU provides guidance to customers about whether a cloud computing | |
Note 2—Summary of Significant Accounting Policies (continued) | |
arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement 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 a customer's accounting for service contracts. ASU 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015. We are currently evaluating the provisions of the ASU to determine the potential impact the new standard will have on our consolidated financial statements. | |
In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03") which changes the presentation of debt issuance costs in financial statements. ASU 2015-03 requires an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. The ASU is effective for annual reporting periods beginning after December 15, 2015, with early adoption permitted. The new guidance will be applied retrospectively to each prior period presented. We are currently in the process of evaluating the impact of adoption of the ASU on our consolidated balance sheets. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), which supersedes nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP. | |
The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). The FASB recently issued a proposal to extend the effective date by one year. We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements. |
Investment_Securities_Tables
Investment Securities (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||
Investment securities, available-for-sale | As of March 31, 2015 and December 31, 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 | 12 months or more | Total | Total unrealized loss | |||||||||||||||||||||
Fair value | Unrealized loss | Fair value | Unrealized loss | fair value | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||
Corporate bonds | $ | 21,275 | $ | (29 | ) | $ | — | $ | — | $ | 21,275 | $ | (29 | ) | ||||||||||
US Treasury notes | 6,070 | (1 | ) | 6,070 | (1 | ) | ||||||||||||||||||
Mortgage-backed securities | 27,952 | (159 | ) | — | — | 27,952 | (159 | ) | ||||||||||||||||
Municipal bonds | — | — | 395 | (5 | ) | 395 | (5 | ) | ||||||||||||||||
Asset-backed securities | 6,115 | (4 | ) | — | — | 6,115 | (4 | ) | ||||||||||||||||
Total investment securities | $ | 61,412 | $ | (193 | ) | $ | 395 | $ | (5 | ) | $ | 61,807 | $ | (198 | ) | |||||||||
December 31, 2014 | ||||||||||||||||||||||||
Corporate bonds | $ | 33,348 | $ | (48 | ) | $ | — | $ | — | $ | 33,348 | $ | (48 | ) | ||||||||||
U.S. Treasury notes | 6,068 | (16 | ) | — | — | 6,068 | (16 | ) | ||||||||||||||||
Mortgage-backed securities | 21,495 | (163 | ) | 1,143 | (14 | ) | 22,638 | (177 | ) | |||||||||||||||
Municipal bonds | — | — | 419 | (21 | ) | 419 | (21 | ) | ||||||||||||||||
Asset-backed securities | 12,254 | (12 | ) | — | — | 12,254 | (12 | ) | ||||||||||||||||
Total investment securities | $ | 73,165 | $ | (239 | ) | $ | 1,562 | $ | (35 | ) | $ | 74,727 | $ | (274 | ) | |||||||||
Our available-for-sale investment securities were as follows: | ||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||
Corporate bonds | $ | 26,828 | $ | 5 | $ | (29 | ) | $ | 26,804 | |||||||||||||||
Commercial paper | 849 | — | — | 849 | ||||||||||||||||||||
U.S. Treasury notes | 21,363 | 8 | (1 | ) | 21,370 | |||||||||||||||||||
Mortgage-backed securities | 55,894 | 180 | (159 | ) | 55,915 | |||||||||||||||||||
Municipal bonds | 2,133 | 78 | (5 | ) | 2,206 | |||||||||||||||||||
Asset-backed securities | 13,136 | 7 | (4 | ) | 13,139 | |||||||||||||||||||
Total investment securities | $ | 120,203 | $ | 278 | $ | (198 | ) | $ | 120,283 | |||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Corporate bonds | $ | 40,433 | $ | 4 | $ | (48 | ) | $ | 40,389 | |||||||||||||||
Commercial paper | 7,648 | 1 | — | 7,649 | ||||||||||||||||||||
U.S. Treasury notes | 14,782 | 5 | (16 | ) | 14,771 | |||||||||||||||||||
Agency securities | 2,950 | — | — | 2,950 | ||||||||||||||||||||
Mortgage-backed securities | 35,420 | 119 | (177 | ) | 35,362 | |||||||||||||||||||
Municipal bonds | 5,555 | 61 | (21 | ) | 5,595 | |||||||||||||||||||
Asset-backed securities | 13,727 | — | (12 | ) | 13,715 | |||||||||||||||||||
Total investment securities | $ | 120,515 | $ | 190 | $ | (274 | ) | $ | 120,431 | |||||||||||||||
Investments classified by contractual maturity date | As of March 31, 2015, the contractual maturities of our available-for-sale investment securities were as follows: | |||||||||||||||||||||||
Amortized cost | Fair value | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Due in one year or less | $ | 30,476 | $ | 30,482 | ||||||||||||||||||||
Due after one year through five years | 19,116 | 19,102 | ||||||||||||||||||||||
Due after five years through ten years | 331 | 340 | ||||||||||||||||||||||
Due after ten years | 1,250 | 1,305 | ||||||||||||||||||||||
Mortgage and asset-backed securities | 69,030 | 69,054 | ||||||||||||||||||||||
Total investment securities | $ | 120,203 | $ | 120,283 | ||||||||||||||||||||
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Receivables [Abstract] | ||||||||
Accounts Receivable | Accounts receivable, net consisted of the following: | |||||||
March 31, 2015 | December 31, 2014 | |||||||
(In thousands) | ||||||||
Overdrawn account balances due from cardholders | $ | 14,591 | $ | 14,412 | ||||
Reserve for uncollectible overdrawn accounts | (12,580 | ) | (11,196 | ) | ||||
Net overdrawn account balances due from cardholders | 2,011 | 3,216 | ||||||
Trade receivables | 4,443 | 8,265 | ||||||
Reserve for uncollectible trade receivables | (7 | ) | (16 | ) | ||||
Net trade receivables | 4,436 | 8,249 | ||||||
Receivables due from card issuing banks | 20,455 | 28,349 | ||||||
Fee advances | 1,408 | 6,545 | ||||||
Other receivables | 9,859 | 2,558 | ||||||
Accounts receivable, net | $ | 38,169 | $ | 48,917 | ||||
Activity in the reserve for uncollectible overdrawn accounts consisted of the following: | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
Balance, beginning of period | $ | 11,196 | $ | 10,363 | ||||
Provision for uncollectible overdrawn accounts: | ||||||||
Fees | 13,644 | 7,740 | ||||||
Purchase transactions | 1,548 | 750 | ||||||
Charge-offs | (13,808 | ) | (9,688 | ) | ||||
Balance, end of period | $ | 12,580 | $ | 9,165 | ||||
Loans_to_Bank_Customers_Tables
Loans to Bank Customers (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | ||||||||||||||||||||||||
Past due financing receivables | The following table presents total outstanding loans, gross of the related allowance for loan losses, and a summary of the related payment status: | |||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Total Past Due | Total Current or Less Than 30 Days Past Due | Total Outstanding | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||
Residential | $ | — | $ | — | $ | — | $ | — | $ | 3,939 | $ | 3,939 | ||||||||||||
Commercial | — | — | 31 | 31 | 356 | 387 | ||||||||||||||||||
Installment | 3 | — | — | 3 | 2,826 | 2,829 | ||||||||||||||||||
Total loans | $ | 3 | $ | — | $ | 31 | $ | 34 | $ | 7,121 | $ | 7,155 | ||||||||||||
Percentage of outstanding | — | % | — | % | 0.4 | % | 0.5 | % | 99.5 | % | 100 | % | ||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Residential | $ | — | $ | — | $ | — | $ | — | $ | 3,861 | $ | 3,861 | ||||||||||||
Commercial | — | — | — | — | 697 | 697 | ||||||||||||||||||
Installment | 1 | 3 | 4 | 8 | 2,428 | 2,436 | ||||||||||||||||||
Total loans | $ | 1 | $ | 3 | $ | 4 | $ | 8 | $ | 6,986 | $ | 6,994 | ||||||||||||
Percentage of outstanding | — | % | — | % | 0.1 | % | 0.1 | % | 99.9 | % | 100 | % | ||||||||||||
Nonperforming loans | The following table presents the carrying value, gross of the related allowance for loan losses, of our nonperforming loans. See Note 2–Summary of Significant Accounting Policies to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2014 for further information on the criteria for classification as nonperforming. | |||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Residential | $ | 57 | $ | 54 | ||||||||||||||||||||
Commercial | 31 | 31 | ||||||||||||||||||||||
Installment | 141 | 104 | ||||||||||||||||||||||
Total loans | $ | 229 | $ | 189 | ||||||||||||||||||||
Financing receivable credit quality indicators | The table below presents the carrying value, gross of the related allowance for loan losses, of our loans within the primary credit quality indicators related to our loan portfolio: | |||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
Non-Classified | Classified | Non-Classified | Classified | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Residential | $ | 3,860 | $ | 79 | $ | 3,604 | $ | 257 | ||||||||||||||||
Commercial | 325 | 62 | 635 | 62 | ||||||||||||||||||||
Installment | 2,736 | 93 | 2,306 | 130 | ||||||||||||||||||||
Total loans | $ | 6,921 | $ | 234 | $ | 6,545 | $ | 449 | ||||||||||||||||
Troubled debt restructurings | The following table presents our impaired loans and loans that we modified as TDRs as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
Unpaid Principal Balance | Carrying Value | Unpaid Principal Balance | Carrying Value | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Residential | $ | 95 | $ | 57 | $ | 97 | $ | 54 | ||||||||||||||||
Commercial | 270 | 31 | 270 | 31 | ||||||||||||||||||||
Installment | 394 | 141 | 367 | 104 | ||||||||||||||||||||
Allowance for loan losses | Activity in the allowance for loan losses consisted of the following: | |||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Balance, beginning of period | $ | 444 | $ | 464 | ||||||||||||||||||||
Provision for loans | (73 | ) | — | |||||||||||||||||||||
Loans charged off | (35 | ) | (33 | ) | ||||||||||||||||||||
Recoveries of loans previously charged off | 4 | 4 | ||||||||||||||||||||||
Balance, end of period | $ | 340 | $ | 435 | ||||||||||||||||||||
Employee_StockBased_Compensati1
Employee Stock-Based Compensation (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||
Stock Options and Restricted Stock Units activity | The following table summarizes restricted stock units granted under our 2010 Equity Incentive Plan: | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(In thousands, except per share data) | ||||||||
Restricted stock units granted | 337 | 100 | ||||||
Weighted-average grant-date fair value | $ | 19.48 | $ | 20.53 | ||||
Deposits_Tables
Deposits (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Deposits [Abstract] | ||||||||
Summary of Deposits | Deposits are categorized as non-interest or interest-bearing deposits as follows: | |||||||
March 31, 2015 | December 31, 2014 | |||||||
(In thousands) | ||||||||
Non-interest bearing deposit accounts | ||||||||
GPR deposits | $ | 600,975 | $ | 529,779 | ||||
Other demand deposits | 26,653 | 19,631 | ||||||
Total non-interest bearing deposit accounts | 627,628 | 549,410 | ||||||
Interest-bearing deposit accounts | ||||||||
Negotiable order of withdrawal (NOW) | 981 | 905 | ||||||
Savings | 8,377 | 7,985 | ||||||
Time deposits, denominations greater than or equal to $100 | 5,481 | 5,263 | ||||||
Time deposits, denominations less than $100 | 1,806 | 1,838 | ||||||
Total interest-bearing deposit accounts | 16,645 | 15,991 | ||||||
Total deposits | $ | 644,273 | $ | 565,401 | ||||
Contractual Maturities For Total Time Deposits | The scheduled contractual maturities for total time deposits are presented in the table below: | |||||||
March 31, 2015 | ||||||||
(In thousands) | ||||||||
Due in 2015 | $ | 3,181 | ||||||
Due in 2016 | 1,880 | |||||||
Due in 2017 | 1,799 | |||||||
Due in 2018 | 58 | |||||||
Due in 2019 | 350 | |||||||
Thereafter | 19 | |||||||
Total time deposits | $ | 7,287 | ||||||
Note_Payable_Tables
Note Payable (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of Debt | As of March 31, 2015 and December 31, 2014, the Company's debt consisted of the following: | |||||||
March 31, 2015 | December 31, 2014 | |||||||
(In thousands) | ||||||||
Term facility | $ | 144,375 | $ | 150,000 | ||||
Revolving facility | — | — | ||||||
Total notes payable | $ | 144,375 | $ | 150,000 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Recon of fed tax rate and actual income tax expense | The sources and tax effects of the differences are as follows: | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
U.S. federal statutory tax rate | 35 | % | 35 | % | ||||
State income taxes, net of federal tax benefit | 2 | 1.8 | ||||||
General business credits | (0.7 | ) | (1.5 | ) | ||||
Employee stock-based compensation | 0.7 | 1.4 | ||||||
Other | 1 | 1.1 | ||||||
Effective tax rate | 38 | % | 37.8 | % | ||||
The effective tax rate for the | ||||||||
Summary of income tax contingencies | The reconciliation of the beginning unrecognized tax benefits balance to the ending balance is as follows: | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
Beginning balance | $ | 6,190 | $ | 3,724 | ||||
Increases related to positions taken during the current year | 676 | 676 | ||||||
Ending balance | $ | 6,866 | $ | 4,400 | ||||
The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate | $ | 6,866 | $ | 4,400 | ||||
Earnings_per_Common_Share_Tabl
Earnings per Common Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings per common share | The calculation of basic and diluted EPS was as follows: | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(In thousands, except per share data) | ||||||||
Basic earnings per Class A common share | ||||||||
Net income | $ | 40,813 | $ | 15,305 | ||||
Income attributable to preferred stock | (1,165 | ) | (2,282 | ) | ||||
Income attributable to common stock subject to repurchase | (81 | ) | (187 | ) | ||||
Net income allocated to Class A common stockholders | $ | 39,567 | $ | 12,836 | ||||
Weighted-average Class A shares issued and outstanding | 51,448 | 37,462 | ||||||
Basic earnings per Class A common share | $ | 0.77 | $ | 0.34 | ||||
Diluted earnings per Class A common share | ||||||||
Net income allocated to Class A common stockholders | $ | 39,567 | $ | 12,836 | ||||
Re-allocated earnings | 11 | 70 | ||||||
Diluted net income allocated to Class A common stockholders | 39,578 | 12,906 | ||||||
Weighted-average Class A shares issued and outstanding | 51,448 | 37,462 | ||||||
Dilutive potential common shares: | ||||||||
Stock options | 281 | 1,059 | ||||||
Restricted stock units | 193 | 233 | ||||||
Employee stock purchase plan | 16 | 15 | ||||||
Diluted weighted-average Class A shares issued and outstanding | 51,938 | 38,769 | ||||||
Diluted earnings per Class A common share | $ | 0.76 | $ | 0.33 | ||||
Antidilutive shares | The following table shows the weighted-average number of anti-dilutive shares excluded from the diluted EPS calculation: | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
Class A common stock | ||||||||
Options to purchase Class A common stock | 795 | 486 | ||||||
Restricted stock units | 122 | 17 | ||||||
Conversion of convertible preferred stock | 1,515 | 6,660 | ||||||
Total options, restricted stock units and convertible preferred stock | 2,432 | 7,163 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Assets and Liabilities Carried at Fair Value on a Recurring Basis | As of March 31, 2015 and December 31, 2014, our assets and liabilities carried at fair value on a recurring basis were as follows: | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||
March 31, 2015 | (In thousands) | |||||||||||||||
Assets | ||||||||||||||||
Corporate bonds | $ | — | $ | 26,804 | $ | — | $ | 26,804 | ||||||||
Commercial paper | — | 849 | — | 849 | ||||||||||||
U.S. Treasury notes | — | 21,370 | — | 21,370 | ||||||||||||
Mortgage-backed securities | — | 55,915 | — | 55,915 | ||||||||||||
Municipal bonds | — | 2,206 | — | 2,206 | ||||||||||||
Asset-backed securities | — | 13,139 | — | 13,139 | ||||||||||||
Total assets | $ | — | $ | 120,283 | $ | — | $ | 120,283 | ||||||||
Liabilities | ||||||||||||||||
Contingent consideration | $ | — | $ | — | $ | 15,375 | $ | 15,375 | ||||||||
December 31, 2014 | ||||||||||||||||
Assets | ||||||||||||||||
Corporate bonds | $ | — | $ | 40,389 | $ | — | $ | 40,389 | ||||||||
Commercial paper | — | 7,649 | — | 7,649 | ||||||||||||
U.S. Treasury notes | — | 14,771 | — | 14,771 | ||||||||||||
Agency securities | — | 2,950 | — | 2,950 | ||||||||||||
Mortgage-backed securities | — | 35,362 | — | 35,362 | ||||||||||||
Municipal bonds | — | 5,595 | — | 5,595 | ||||||||||||
Asset-backed securities | — | 13,715 | — | 13,715 | ||||||||||||
Total assets | $ | — | $ | 120,431 | $ | — | $ | 120,431 | ||||||||
Liabilities | ||||||||||||||||
Contingent consideration | $ | — | $ | — | $ | 23,160 | $ | 23,160 | ||||||||
Change in Contingent Consideration Payable | The following table presents changes in our contingent consideration payable for the three months ended March 31, 2015, which is categorized in Level 3 of the fair value hierarchy. | |||||||||||||||
31-Mar-15 | ||||||||||||||||
(In thousands) | ||||||||||||||||
Balance, beginning of period | $ | 23,160 | ||||||||||||||
Payments of contingent consideration | (169 | ) | ||||||||||||||
Change in fair value of contingent consideration | (7,616 | ) | ||||||||||||||
Balance, end of period | $ | 15,375 | ||||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair value of assets not carried at fair value | The carrying values and fair values of certain financial instruments that were not carried at fair value, excluding short-term financial instruments for which the carrying value approximates fair value, at March 31, 2015 and December 31, 2014 are presented in the table below. | |||||||||||||||
Note 13—Fair Value of Financial Instruments (continued) | ||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Financial Assets | ||||||||||||||||
Loans to bank customers, net of allowance | $ | 6,815 | $ | 5,493 | $ | 6,550 | $ | 5,399 | ||||||||
Financial Liabilities | ||||||||||||||||
Deposits | $ | 644,273 | $ | 644,214 | $ | 565,401 | $ | 565,345 | ||||||||
Note payable | $ | 144,375 | $ | 144,375 | $ | 150,000 | $ | 150,000 | ||||||||
Significant_Customer_Concentra1
Significant Customer Concentrations (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Risks and Uncertainties [Abstract] | ||||
Customer concentrations | Revenues derived from our products sold at retail distributors constituting greater than 10% of our total operating revenues were as follows: | |||
Three Months Ended March 31, | ||||
2015 | 2014 | |||
Walmart | 40% | 61% | ||
Excluding stock-based retailer incentive compensation of $1.9 million and $2.4 million for the three months ended March 31, 2015 and 2014, respectively, revenues derived from our products sold at retail distributors constituting greater than 10% of our total operating revenues were as follows: | ||||
Three Months Ended March 31, | ||||
2015 | 2014 | |||
Walmart | 40% | 61% | ||
Included in these percentages are operating revenues derived from the Walmart MoneyCard program, which represented 29% and 44% for the three months ended March 31, 2015 and 2014, respectively. | ||||
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: | ||||
Three Months Ended March 31, | ||||
2015 | 2014 | |||
Concentration of GPR cards activated (in units) | 61% | 75% | ||
Concentration of sales of cash transfer products (in units) | 81% | 82% | ||
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: | ||||
March 31, 2015 | December 31, 2014 | |||
Walmart | 68% | 22% | ||
Three other largest retail distributors, as a group | 14% | 28% |
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Schedule of Segment Reporting | The following table presents certain financial information for each of our reportable segments for the three months ended March 31, 2015. We have determined that it is impracticable to restate segment information for the three months ended March 31, 2014, as well as to provide disclosures under both the old basis and new basis of reporting for certain items. Therefore, no such disclosures are presented. | |||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||
Account Services | Processing and Settlement Services | Corporate and Other | Total | |||||||||||||
(In thousands) | ||||||||||||||||
Operating revenues | $ | 147,859 | $ | 90,176 | $ | (10,870 | ) | $ | 227,165 | |||||||
Operating expenses | 118,153 | 36,858 | 6,258 | 161,269 | ||||||||||||
Operating income | $ | 29,706 | $ | 53,318 | $ | (17,128 | ) | $ | 65,896 | |||||||
Organization_Details
Organization (Details) (USD $) | 3 Months Ended | 1 Months Ended | |
In Millions, except Share data in Thousands, unless otherwise specified | Mar. 31, 2015 | Jan. 31, 2015 | Dec. 31, 2014 |
customer | store | ||
store | |||
Business Acquisition [Line Items] | |||
Number of Stores | 100,000 | ||
Number of customers served | 25,000 | ||
Walmart [Member] | |||
Business Acquisition [Line Items] | |||
Term of contract | 1 year | ||
Privately-Held GPR Prepaid Company [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | 65.9 | ||
Acquired intangible assets | 16.1 | ||
Privately-Held GPR Prepaid Company [Member] | Common Class A [Member] | |||
Business Acquisition [Line Items] | |||
Business acquisition shares issued (in shares) | 514 |
Investment_Securities_Gross_Ga
Investment Securities - Gross Gains and Losses (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | $120,203 | $120,515 |
Gross unrealized gains | 278 | 190 |
Gross unrealized losses | -198 | -274 |
Fair value | 120,283 | 120,431 |
Corporate Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 26,828 | 40,433 |
Gross unrealized gains | 5 | 4 |
Gross unrealized losses | -29 | -48 |
Fair value | 26,804 | 40,389 |
Commercial Paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 849 | 7,648 |
Gross unrealized gains | 0 | 1 |
Gross unrealized losses | 0 | 0 |
Fair value | 849 | 7,649 |
US Treasury Notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 21,363 | 14,782 |
Gross unrealized gains | 8 | 5 |
Gross unrealized losses | -1 | -16 |
Fair value | 21,370 | 14,771 |
Agencies Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 2,950 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | 0 | |
Fair value | 2,950 | |
Mortgage-backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 55,894 | 35,420 |
Gross unrealized gains | 180 | 119 |
Gross unrealized losses | -159 | -177 |
Fair value | 55,915 | 35,362 |
Municipal Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 2,133 | 5,555 |
Gross unrealized gains | 78 | 61 |
Gross unrealized losses | -5 | -21 |
Fair value | 2,206 | 5,595 |
Asset-backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 13,136 | 13,727 |
Gross unrealized gains | 7 | 0 |
Gross unrealized losses | -4 | -12 |
Fair value | $13,139 | $13,715 |
Investment_Securities_Continuo
Investment Securities - Continuous Unrealized Loss (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | |||
Fair value, less than 12 months | $61,412 | $73,165 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss Accumulated In Investments | -193 | -239 | |
Fair value, 12 months or more | 395 | 1,562 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss, Accumulated in Investments | -5 | -35 | |
Total fair value | 61,807 | 74,727 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss, Accumulated in Investments | -198 | -274 | |
Other than temporary impairment losses | 0 | 0 | |
Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair value, less than 12 months | 21,275 | 33,348 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss Accumulated In Investments | -29 | -48 | |
Fair value, 12 months or more | 0 | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss, Accumulated in Investments | 0 | 0 | |
Total fair value | 21,275 | 33,348 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss, Accumulated in Investments | -29 | -48 | |
US Treasury Notes | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair value, less than 12 months | 6,070 | 6,068 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss Accumulated In Investments | -1 | -16 | |
Fair value, 12 months or more | 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss, Accumulated in Investments | 0 | ||
Total fair value | 6,070 | 6,068 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss, Accumulated in Investments | -1 | -16 | |
Mortgage-backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair value, less than 12 months | 27,952 | 21,495 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss Accumulated In Investments | -159 | -163 | |
Fair value, 12 months or more | 0 | 1,143 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss, Accumulated in Investments | 0 | -14 | |
Total fair value | 27,952 | 22,638 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss, Accumulated in Investments | -159 | -177 | |
Municipal Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair value, less than 12 months | 0 | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss Accumulated In Investments | 0 | 0 | |
Fair value, 12 months or more | 395 | 419 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss, Accumulated in Investments | -5 | -21 | |
Total fair value | 395 | 419 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss, Accumulated in Investments | -5 | -21 | |
Asset-backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair value, less than 12 months | 6,115 | 12,254 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss Accumulated In Investments | -4 | -12 | |
Fair value, 12 months or more | 0 | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss, Accumulated in Investments | 0 | 0 | |
Total fair value | 6,115 | 12,254 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss, Accumulated in Investments | ($4) | ($12) |
Investment_Securities_Maturiti
Investment Securities - Maturities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Due in one year or less | $30,476 | |
Due after one year through five years | 19,116 | |
Due after five years through ten years | 331 | |
Due after ten years | 1,250 | |
Mortgage and asset-backed securities | 69,030 | |
Total investment securities | 120,203 | |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Due in one year or less | 30,482 | |
Due after one year through five years | 19,102 | |
Due after five years through ten years | 340 | |
Due after ten years | 1,305 | |
Mortgage and asset-backed securities | 69,054 | |
Fair value | $120,283 | $120,431 |
Accounts_Receivable_Accounts_r
Accounts Receivable - Accounts receivable (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts Receivable, Net | $38,169 | $48,917 | ||
Receivables due from card issuing banks [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts Receivable, Gross | 20,455 | 28,349 | ||
Overdrawn Account Balances due from Cardholders [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts Receivable, Gross | 14,591 | 14,412 | ||
Allowance for Doubtful Accounts Receivable | -12,580 | -11,196 | -9,165 | -10,363 |
Accounts Receivable, Net | 2,011 | 3,216 | ||
Trade receivables [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts Receivable, Gross | 4,443 | 8,265 | ||
Allowance for Doubtful Accounts Receivable | -7 | -16 | ||
Accounts Receivable, Net | 4,436 | 8,249 | ||
Fee Advances [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts Receivable, Gross | 1,408 | 6,545 | ||
Other receivables [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts Receivable, Gross | $9,859 | $2,558 |
Accounts_Receivable_Reserve_fo
Accounts Receivable - Reserve for uncollectible overdrawn accounts activity (Details) (Reserve for uncollectible overdrawn accounts [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Reserve for uncollectible overdrawn accounts [Member] | ||
Uncollectible Overdrawn Accounts [Roll Forward] | ||
Balance, beginning of period | $11,196 | $10,363 |
Fees | 13,644 | 7,740 |
Purchase transactions | 1,548 | 750 |
Charge-offs | -13,808 | -9,688 |
Balance, end of period | $12,580 | $9,165 |
Loans_to_Bank_Customers_Loan_S
Loans to Bank Customers - Loan Summary (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-59 days past due | $3 | $1 |
60-89 days past due | 0 | 3 |
90 days or more past due | 31 | 4 |
Past due 30 days or more | 34 | 8 |
Total Current or Less Than 30 Days Past Due | 7,121 | 6,986 |
Total Outstanding Loans to Bank Customers | 7,155 | 6,994 |
Percentage outstanding, 30-59 days past due | 0.00% | 0.00% |
Percentage outstanding, 60-89 days past due | 0.00% | 0.00% |
Percentage outstanding, 90 days or more past due | 0.40% | 0.10% |
Loans, Percentage Outstanding, Total Past Due 30 Days or More | 0.50% | 0.10% |
Percentage outstanding, current or less than 30 days past due | 99.50% | 99.90% |
Percentage outstanding | 100.00% | 100.00% |
Real Estate Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
90 days or more past due | 0 | 0 |
Past due 30 days or more | 0 | 0 |
Total Current or Less Than 30 Days Past Due | 3,939 | 3,861 |
Total Outstanding Loans to Bank Customers | 3,939 | 3,861 |
Commercial Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
90 days or more past due | 31 | 0 |
Past due 30 days or more | 31 | 0 |
Total Current or Less Than 30 Days Past Due | 356 | 697 |
Total Outstanding Loans to Bank Customers | 387 | 697 |
Installment Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-59 days past due | 3 | 1 |
60-89 days past due | 0 | 3 |
90 days or more past due | 0 | 4 |
Past due 30 days or more | 3 | 8 |
Total Current or Less Than 30 Days Past Due | 2,826 | 2,428 |
Total Outstanding Loans to Bank Customers | $2,829 | $2,436 |
Loans_to_Bank_Customers_Nonper
Loans to Bank Customers - Nonperforming Loans (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Nonperforming Loans [Line Items] | ||
Nonperforming loans | $229 | $189 |
Real Estate Loans | ||
Nonperforming Loans [Line Items] | ||
Nonperforming loans | 57 | 54 |
Commercial Loans | ||
Nonperforming Loans [Line Items] | ||
Nonperforming loans | 31 | 31 |
Installment Loans | ||
Nonperforming Loans [Line Items] | ||
Nonperforming loans | $141 | $104 |
Loans_to_Bank_Customers_Credit
Loans to Bank Customers - Credit Quality Indicators (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Outstanding Loans [Line Items] | ||
Loans to Bank Customers, Carrying Amount | $6,815 | $6,550 |
Non-Classified | ||
Outstanding Loans [Line Items] | ||
Loans to Bank Customers, Carrying Amount | 6,921 | 6,545 |
Classified | ||
Outstanding Loans [Line Items] | ||
Loans to Bank Customers, Carrying Amount | 234 | 449 |
Real Estate Loans | Non-Classified | ||
Outstanding Loans [Line Items] | ||
Loans to Bank Customers, Carrying Amount | 3,860 | 3,604 |
Real Estate Loans | Classified | ||
Outstanding Loans [Line Items] | ||
Loans to Bank Customers, Carrying Amount | 79 | 257 |
Commercial Loans | Non-Classified | ||
Outstanding Loans [Line Items] | ||
Loans to Bank Customers, Carrying Amount | 325 | 635 |
Commercial Loans | Classified | ||
Outstanding Loans [Line Items] | ||
Loans to Bank Customers, Carrying Amount | 62 | 62 |
Installment Loans | Non-Classified | ||
Outstanding Loans [Line Items] | ||
Loans to Bank Customers, Carrying Amount | 2,736 | 2,306 |
Installment Loans | Classified | ||
Outstanding Loans [Line Items] | ||
Loans to Bank Customers, Carrying Amount | $93 | $130 |
Loans_to_Bank_Customers_Troubl
Loans to Bank Customers - Troubled Debt Restructurings (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Real Estate Loans | ||
Loan Modifications [Line Items] | ||
Unpaid principal balance | $95 | $97 |
Carrying value | 57 | 54 |
Commercial Loans | ||
Loan Modifications [Line Items] | ||
Unpaid principal balance | 270 | 270 |
Carrying value | 31 | 31 |
Installment Loans | ||
Loan Modifications [Line Items] | ||
Unpaid principal balance | 394 | 367 |
Carrying value | $141 | $104 |
Loans_to_Bank_Customers_Allowa
Loans to Bank Customers - Allowance for Loan Losses (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Allowance for Loan Losses [Roll Forward] | ||
Allowance for loan losses, beginning of period | $444 | $464 |
Provision for loans | -73 | 0 |
Loans charged off | -35 | -33 |
Recoveries of loans previously charged off | 4 | 4 |
Allowance for loan losses, end of period | $340 | $435 |
Employee_StockBased_Compensati2
Employee Stock-Based Compensation - Share-based Compensation Equity Granted (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee stock-based compensation | $5,213 | $3,972 |
2010 Equity Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options granted in period (shares) | 0 | 53,000 |
2010 Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units granted | 337,000 | 100,000 |
Weighted-average grant-date fair value (in dollars per share) | $19.48 | $20.53 |
Certain Executives [Member] | 2010 Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units granted | 242,587 |
Deposits_Summary_of_Deposits_D
Deposits - Summary of Deposits (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Deposits [Abstract] | ||
GPR deposits | $600,975 | $529,779 |
Other demand deposits | 26,653 | 19,631 |
Total non-interest bearing deposit accounts | 627,628 | 549,410 |
Negotiable order of withdrawal (NOW) | 981 | 905 |
Savings | 8,377 | 7,985 |
Time deposits, denominations greater than or equal to $100 | 5,481 | 5,263 |
Time deposits, denominations less than $100 | 1,806 | 1,838 |
Total interest-bearing deposit accounts | 16,645 | 15,991 |
Total deposits | $644,273 | $565,401 |
Deposits_Contractual_Maturitie
Deposits - Contractual Maturities (Details) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Time Deposits, Fiscal Year Maturity [Abstract] | |
Due in 2015 | $3,181 |
Due in 2016 | 1,880 |
Due in 2017 | 1,799 |
Due in 2018 | 58 |
Due in 2019 | 350 |
Thereafter | 19 |
Total time deposits | $7,287 |
Note_Payable_Narrative_Details
Note Payable - Narrative (Details) (Bank Of America, N.A., Wells Fargo Bank, National Association, And Other Lenders [Member], Line of Credit [Member], USD $) | 3 Months Ended | 1 Months Ended |
Mar. 31, 2015 | Oct. 31, 2014 | |
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 225,000,000 | |
Potential maximum borrowing capacity increase | 50,000,000 | |
Effective interest rate (percent) | 2.93% | |
Interest expense | 1,200,000 | |
Base Rate, Condition One [Member] | ||
Debt Instrument [Line Items] | ||
Spread on interest rate (percent) | 0.50% | |
Base Rate, Condition Two [Member] | ||
Debt Instrument [Line Items] | ||
Spread on interest rate (percent) | 1.00% | |
Minimum [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (percent) | 2.50% | |
Minimum [Member] | Base Rate [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (percent) | 1.50% | |
Maximum [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (percent) | 3.00% | |
Maximum [Member] | Base Rate [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (percent) | 2.00% | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 75,000,000 | |
Debt term | 5 years | |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 150,000,000 | |
Debt term | 5 years |
Note_Payable_Schedule_of_Debt_
Note Payable - Schedule of Debt (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Total notes payable | $144,375,000 | $150,000,000 |
Bank Of America, N.A., Wells Fargo Bank, National Association, And Other Lenders [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Total notes payable | 144,375,000 | 150,000,000 |
Bank Of America, N.A., Wells Fargo Bank, National Association, And Other Lenders [Member] | Line of Credit [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total notes payable | 144,375,000 | 150,000,000 |
Bank Of America, N.A., Wells Fargo Bank, National Association, And Other Lenders [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total notes payable | $0 | $0 |
Income_Taxes_Narrative_Details
Income Taxes - Narrative (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | ||
U.S. federal statutory tax rate (percent) | 35.00% | 35.00% |
Unrecognized tax benefits, income tax penalties and interest accrued | $300,000 | |
The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate | 6,866,000 | 4,400,000 |
Federal [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 46,800,000 | |
State Tax [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 40,300,000 | |
State Tax [Member] | Between Tax Year 2028 and 2034 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 4,100,000 | |
State Tax [Member] | Tax Year 2024 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $1,400,000 |
Income_Taxes_Effective_Tax_Rat
Income Taxes - Effective Tax Rate Reconciliation (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||
U.S. federal statutory tax rate | 35.00% | 35.00% |
State income taxes, net of federal tax benefit | 2.00% | 1.80% |
General business credits | -0.70% | -1.50% |
Employee stock-based compensation | 0.70% | 1.40% |
Other | 1.00% | 1.10% |
Effective tax rate | 38.00% | 37.80% |
Income_Taxes_Rollforward_of_Un
Income Taxes - Rollforward of Unrecognized Tax Benefits (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Beginning balance | $6,190 | $3,724 |
Increases related to positions taken during the current year | 676 | 676 |
Ending balance | 6,866 | 4,400 |
The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate | $6,866 | $4,400 |
Shareholders_Equity_Details
Shareholders' Equity (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Class of Stock [Line Items] | |
Number of shares converted | 1,491 |
Common Class A [Member] | |
Class of Stock [Line Items] | |
Converted instrument shares issued | 1,491,000 |
Earnings_per_Common_Share_Basi
Earnings per Common Share - Basic Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net Income | $40,813 | $15,305 |
Income attributable to preferred stock | -1,165 | -2,282 |
Income attributable to common stock subject to repurchase | -81 | -187 |
Net income allocated to Class A common stockholders | 39,567 | 12,836 |
Weighted-average Class A shares issued and outstanding | 51,448 | 37,462 |
Basic earnings per Class A common share, in usd per share | $0.77 | $0.34 |
Re-allocated earnings | 11 | 70 |
Diluted net income allocated to Class A common stockholders | $39,578 | $12,906 |
Diluted weighted-average Class A shares issued and outstanding | 51,938 | 38,769 |
Diluted earnings per Class A common share, in usd per share | $0.76 | $0.33 |
Common Class A [Member] | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Weighted-average Class A shares issued and outstanding | 51,448 | 37,462 |
Basic earnings per Class A common share, in usd per share | $0.77 | $0.34 |
Diluted weighted-average Class A shares issued and outstanding | 51,938 | 38,769 |
Diluted earnings per Class A common share, in usd per share | $0.76 | $0.33 |
Stock Options [Member] | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Dilutive potential common shares | 281 | 1,059 |
Restricted Stock Units (RSUs) [Member] | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Dilutive potential common shares | 193 | 233 |
Employee Stock Purchase Plan [Member] | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Dilutive potential common shares | 16 | 15 |
Earnings_per_Common_Share_Anti
Earnings per Common Share - Antidilutive Shares (Details) (Common Class A [Member]) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Antidilutive Shares [Line Items] | ||
Antidilutive shares | 2,432 | 7,163 |
Stock Options [Member] | ||
Antidilutive Shares [Line Items] | ||
Antidilutive shares | 795 | 486 |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Shares [Line Items] | ||
Antidilutive shares | 122 | 17 |
Convertible preferred stock [Member] | ||
Antidilutive Shares [Line Items] | ||
Antidilutive shares | 1,515 | 6,660 |
Earnings_per_Common_Share_Narr
Earnings per Common Share - Narrative (Details) (Walmart [Member], Stock Options [Member], Common Class A [Member]) | Mar. 31, 2015 | Mar. 31, 2014 |
Walmart [Member] | Stock Options [Member] | Common Class A [Member] | ||
Diluted earnings per common share [Line Items] | ||
Unvested Walmart shares | 36,762 | 478,482 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements - Fair Value Hierarchy (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $120,283 | $120,431 |
Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 26,804 | 40,389 |
Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 849 | 7,649 |
US Treasury Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 21,370 | 14,771 |
Agencies Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 2,950 | |
Municipal Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 2,206 | 5,595 |
Asset-backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 13,139 | 13,715 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 120,283 | 120,431 |
Contingent consideration, fair value | 15,375 | 23,160 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 120,283 | 120,431 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Contingent consideration, fair value | 15,375 | 23,160 |
Recurring | Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 26,804 | 40,389 |
Recurring | Corporate Bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Recurring | Corporate Bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 26,804 | 40,389 |
Recurring | Corporate Bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Recurring | Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 849 | 7,649 |
Recurring | Commercial Paper | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Recurring | Commercial Paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 849 | 7,649 |
Recurring | Commercial Paper | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Recurring | US Treasury Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 21,370 | 14,771 |
Recurring | US Treasury Notes | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Recurring | US Treasury Notes | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 21,370 | 14,771 |
Recurring | US Treasury Notes | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Recurring | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 55,915 | 35,362 |
Recurring | Mortgage-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Recurring | Mortgage-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 55,915 | 35,362 |
Recurring | Mortgage-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Recurring | Agencies Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 2,950 | |
Recurring | Agencies Securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | |
Recurring | Agencies Securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 2,950 | |
Recurring | Agencies Securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | |
Recurring | Municipal Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 2,206 | 5,595 |
Recurring | Municipal Bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Recurring | Municipal Bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 2,206 | 5,595 |
Recurring | Municipal Bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Recurring | Asset-backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 13,139 | 13,715 |
Recurring | Asset-backed Securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Recurring | Asset-backed Securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 13,139 | 13,715 |
Recurring | Asset-backed Securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $0 | $0 |
Fair_Value_Measurements_Contin
Fair Value Measurements - Contingent Consideration Payable (Details) (Contingent Consideration [Member], USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Contingent Consideration [Member] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance, beginning of period | $23,160 |
Change in fair value of contingent consideration | -7,616 |
Balance, end of period | $15,375 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ||
Loans to Bank Customers, Carrying Amount | $6,815 | $6,550 |
Loans to Bank Customers, Fair Value | 5,493 | 5,399 |
Deposits, Carrying Value | 644,273 | 565,401 |
Deposits, Fair Value | 644,214 | 565,345 |
Note payable, Carrying Value | 144,375 | 150,000 |
Note payable, Fair Value | $144,375 | $150,000 |
Commitments_and_Contingencies_
Commitments and Contingencies - Narrative (Details) (Line of Credit [Member], Standby Letters of Credit [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Line of Credit [Member] | Standby Letters of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Letters of Credit Outstanding, Amount | $1.50 | $1.50 |
Significant_Customer_Concentra2
Significant Customer Concentrations (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Concentration Risk [Line Items] | |||
Stock-based retailer incentive compensation | $1,906 | $2,388 | |
Customer Concentration Risk [Member] | Total Operating Revenues [Member] | Walmart [Member] | Walmart MoneyCard [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 29.00% | 44.00% | |
Customer Concentration Risk [Member] | Total Operating Revenues [Member] | Walmart [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 40.00% | 61.00% | |
Customer Concentration Risk [Member] | Total Operating Revenues, Excluding Stock-Based Retailer Incentive Compensation [Member] | Walmart [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 40.00% | 61.00% | |
Customer Concentration Risk [Member] | GPR Cards Activated (in units) [Member] | Four Largest Retailers Distributors [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 61.00% | 75.00% | |
Customer Concentration Risk [Member] | Sales of Cash Transfer Products (in units) [Member] | Four Largest Retailers Distributors [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 81.00% | 82.00% | |
Customer Concentration Risk [Member] | Settlement Assets [Member] | Walmart [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage (balance sheet disclosures) | 68.00% | 22.00% | |
Customer Concentration Risk [Member] | Settlement Assets [Member] | Three Other Largest Retailer Distributors, as a Group [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage (balance sheet disclosures) | 14.00% | 28.00% |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
segment | ||
Segment Reporting [Abstract] | ||
Number of reportable segments | 2 | |
Segment Reporting Information [Line Items] | ||
Segment revenues | $227,165 | $159,269 |
Segment expenses | 161,269 | 135,609 |
Operating income | 65,896 | 23,660 |
Account Services Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment revenues | 147,859 | |
Segment expenses | 118,153 | |
Operating income | 29,706 | |
Processing and Settlement Services Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment revenues | 90,176 | |
Segment expenses | 36,858 | |
Operating income | 53,318 | |
Corporate and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment revenues | -10,870 | |
Segment expenses | 6,258 | |
Operating income | ($17,128) |