Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-34819 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 95-4766827 | ||
Entity Address, Address Line One | 3465 E. Foothill Blvd. | ||
Entity Address, City or Town | Pasadena, | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 91107 | ||
City Area Code | (626) | ||
Local Phone Number | 765-2000 | ||
Title of 12(b) Security | Class A Common Stock, $0.001 par value | ||
Trading Symbol | GDOT | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2.1 | ||
Entity Common Stock, Shares Outstanding | 52,784,584 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s proxy statement relating to the registrant’s 2020 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. | ||
Entity Registrant Name | GREEN DOT CORP | ||
Entity Central Index Key | 0001386278 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Unrestricted cash and cash equivalents | $ 1,063,426 | $ 1,094,728 |
Restricted cash | 2,728 | 490 |
Investment securities available-for-sale, at fair value | 10,020 | 19,960 |
Settlement assets | 239,222 | 153,992 |
Accounts receivable, net | 59,543 | 40,942 |
Prepaid expenses and other assets | 66,183 | 57,070 |
Income tax receivable | 870 | 8,772 |
Total current assets | 1,441,992 | 1,375,954 |
Investment securities available-for-sale, at fair value | 267,419 | 181,223 |
Loans to bank customers, net of allowance | 21,417 | 21,363 |
Prepaid expenses and other assets | 10,991 | 8,125 |
Property and equipment, net | 145,476 | 120,269 |
Operating lease right-of-use assets | 26,373 | |
Deferred expenses | 16,891 | 21,201 |
Net deferred tax assets | 9,037 | 7,867 |
Goodwill and intangible assets | 520,994 | 551,116 |
Total assets | 2,460,590 | 2,287,118 |
Current liabilities: | ||
Accounts payable | 37,876 | 38,631 |
Deposits | 1,175,341 | 1,005,485 |
Obligations to customers | 69,377 | 58,370 |
Settlement obligations | 13,251 | 5,788 |
Amounts due to card issuing banks for overdrawn accounts | 380 | 1,681 |
Other accrued liabilities | 107,842 | 134,000 |
Operating lease liabilities | 8,764 | |
Deferred revenue | 28,355 | 34,607 |
Debt | 35,000 | 58,705 |
Income tax payable | 3,948 | 67 |
Total current liabilities | 1,480,134 | 1,337,334 |
Other accrued liabilities | 10,883 | 30,927 |
Operating lease liabilities | 24,445 | |
Net deferred tax liabilities | 17,772 | 9,045 |
Total liabilities | 1,533,234 | 1,377,306 |
Commitments and contingencies (Note 20) | ||
Stockholders’ equity: | ||
Class A common stock, $0.001 par value; 100,000 shares authorized as of December 31, 2019 and 2018; 51,807 and 52,917 shares issued and outstanding as of December 31, 2019 and 2018, respectively | 52 | 53 |
Additional paid-in capital | 296,224 | 380,753 |
Retained earnings | 629,040 | 529,143 |
Accumulated other comprehensive income (loss) | 2,040 | (137) |
Total stockholders’ equity | 927,356 | 909,812 |
Total liabilities and stockholders’ equity | $ 2,460,590 | $ 2,287,118 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses | $ 1,166 | $ 1,144 |
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares, issued (in shares) | 51,807,000 | 52,917,000 |
Common stock, shares outstanding (in shares) | 51,807,000 | 52,917,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating revenues | |||
Total operating revenues | $ 1,108,595 | $ 1,065,575 | $ 901,123 |
Operating expenses | |||
Sales and marketing expenses | 386,840 | 326,333 | 280,561 |
Compensation and benefits expenses | 198,412 | 221,627 | 194,654 |
Processing expenses | 200,674 | 181,160 | 161,011 |
Other general and administrative expenses | 199,751 | 206,040 | 155,601 |
Total operating expenses | 985,677 | 935,160 | 791,827 |
Operating income | 122,918 | 130,415 | 109,296 |
Interest expense, net | 1,837 | 6,598 | 5,838 |
Income before income taxes | 121,081 | 123,817 | 103,458 |
Income tax expense | 21,184 | 5,114 | 17,571 |
Net income | $ 99,897 | $ 118,703 | $ 85,887 |
Earnings per common share | |||
Basic earnings per common share (in USD per share) | $ 1.91 | $ 2.27 | $ 1.70 |
Diluted earnings per common share (in USD per share) | $ 1.88 | $ 2.18 | $ 1.61 |
Weighted-average common shares issued and outstanding | |||
Basic (in shares) | 52,195 | 52,222 | 50,482 |
Diluted (in shares) | 53,138 | 54,481 | 53,198 |
Card revenues and other fees | |||
Operating revenues | |||
Operating revenues | $ 459,357 | $ 482,881 | $ 414,775 |
Processing and settlement service revenues | |||
Operating revenues | |||
Operating revenues | 287,064 | 247,958 | 217,454 |
Interchange revenues | |||
Operating revenues | |||
Operating revenues | 330,233 | 310,919 | 257,922 |
Interest income, net | |||
Operating revenues | |||
Operating revenues | $ 31,941 | $ 23,817 | $ 10,972 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 99,897 | $ 118,703 | $ 85,887 |
Other comprehensive income (loss) | |||
Unrealized holding gain (loss), net of tax | 2,177 | 593 | (549) |
Comprehensive income | $ 102,074 | $ 119,296 | $ 85,338 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Class A Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance at the beginning of the period (in shares) at Dec. 31, 2016 | 50,513 | ||||
Balance at the beginning of the period at Dec. 31, 2016 | $ 683,733 | $ 51 | $ 358,155 | $ 325,708 | $ (181) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issued under stock plans, net of withholdings and related tax effects (in shares) | 1,949 | ||||
Common stock issued under stock plans, net of withholdings and related tax effects | 6,084 | $ 1 | 6,083 | ||
Stock-based compensation | 40,734 | 40,734 | |||
Treasury stock acquired (in shares) | (1,326) | ||||
Repurchases of Class A common stock | (51,969) | $ (1) | (51,968) | ||
Net income | 85,887 | 85,887 | |||
Other comprehensive income (loss) | (549) | (549) | |||
Balance at the end of the period (in shares) at Dec. 31, 2017 | 51,136 | ||||
Balance at the end of the period at Dec. 31, 2017 | 764,550 | $ 51 | 354,789 | 410,440 | (730) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect of accounting change and tax reform | 630 | 1,785 | (1,155) | ||
Common stock issued under stock plans, net of withholdings and related tax effects (in shares) | 1,781 | ||||
Common stock issued under stock plans, net of withholdings and related tax effects | (24,127) | $ 2 | (24,129) | ||
Stock-based compensation | 50,093 | 50,093 | |||
Net income | 118,703 | 118,703 | |||
Other comprehensive income (loss) | 593 | 593 | |||
Balance at the end of the period (in shares) at Dec. 31, 2018 | 52,917 | ||||
Balance at the end of the period at Dec. 31, 2018 | $ 909,812 | $ 53 | 380,753 | 529,143 | (137) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issued under stock plans, net of withholdings and related tax effects (in shares) | 70 | 962 | |||
Common stock issued under stock plans, net of withholdings and related tax effects | $ (14,113) | $ 1 | (14,114) | ||
Stock-based compensation | 29,583 | 29,583 | |||
Treasury stock acquired (in shares) | (2,072) | ||||
Repurchases of Class A common stock | (100,000) | $ (2) | (99,998) | ||
Net income | 99,897 | 99,897 | |||
Other comprehensive income (loss) | 2,177 | 2,177 | |||
Balance at the end of the period (in shares) at Dec. 31, 2019 | 51,807 | ||||
Balance at the end of the period at Dec. 31, 2019 | $ 927,356 | $ 52 | $ 296,224 | $ 629,040 | $ 2,040 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities [Abstract] | |||
Net income | $ 99,897 | $ 118,703 | $ 85,887 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of property, equipment and internal-use software | 49,489 | 38,581 | 33,470 |
Amortization of intangible assets | 32,616 | 32,761 | 31,110 |
Provision for uncollectible overdrawn accounts | 86,451 | 79,790 | 77,145 |
Employee stock-based compensation | 29,583 | 50,093 | 40,734 |
Amortization of (discount) premium on available-for-sale investment securities | (117) | 1,042 | 1,510 |
Change in fair value of contingent consideration | (1,866) | 3,298 | (9,672) |
Amortization of deferred financing costs | 1,334 | 1,594 | 1,589 |
Impairment of capitalized software | 578 | 922 | 1,326 |
Deferred income tax expense (benefit) | 6,876 | (234) | 2,780 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (105,052) | (85,455) | (68,368) |
Prepaid expenses and other assets | (12,032) | (9,930) | (16,841) |
Deferred expenses | 4,310 | 590 | (2,098) |
Accounts payable and other accrued liabilities | (8,145) | 12,471 | 27,982 |
Deferred revenue | (6,711) | 4,675 | 4,689 |
Income tax receivable/payable | 11,682 | (1,253) | 5,067 |
Other, net | 1,021 | 3,403 | 2,000 |
Net cash provided by operating activities | 189,914 | 251,051 | 218,310 |
Investing activities [Abstract] | |||
Purchases of available-for-sale investment securities | (189,066) | (186,884) | (58,665) |
Proceeds from maturities of available-for-sale securities | 110,971 | 60,449 | 71,338 |
Proceeds from sales of available-for-sale securities | 4,915 | 78,385 | 40,310 |
Payments for acquisition of property and equipment | (78,214) | (61,030) | (44,142) |
Net increase in loans | (2,459) | (5,887) | (12,511) |
Business acquisition, net of cash acquired | 0 | 0 | (141,493) |
Net cash used in investing activities | (153,853) | (114,967) | (145,163) |
Financing activities [Abstract] | |||
Borrowings from notes payable | 0 | 0 | 20,000 |
Repayments of borrowings from notes payable | (60,000) | (22,500) | (42,500) |
Borrowings on revolving line of credit | 35,000 | 0 | 335,000 |
Repayments on revolving line of credit | 0 | 0 | (335,000) |
Proceeds from exercise of options | 7,226 | 21,880 | 24,161 |
Taxes paid related to net share settlement of equity awards | (21,338) | (46,007) | (18,077) |
Net increase (decrease) in deposits | 146,100 | (16,733) | 284,766 |
Net (decrease) increase in obligations to customers | (66,760) | 17,255 | (20,926) |
Contingent consideration payments | (4,634) | (4,856) | (3,104) |
Repurchase of Class A common stock | (100,000) | 0 | (51,969) |
Deferred financing costs | (719) | 0 | (164) |
Net cash used in financing activities | (65,125) | (50,961) | 192,187 |
Net (decrease) increase in unrestricted cash, cash equivalents and restricted cash | (29,064) | 85,123 | 265,334 |
Unrestricted cash, cash equivalents and restricted cash, beginning of period | 1,095,218 | 1,010,095 | 744,761 |
Unrestricted cash, cash equivalents and restricted cash, end of period | 1,066,154 | 1,095,218 | 1,010,095 |
Supplemental Cash Flow Information [Abstract] | |||
Cash paid for interest | 2,452 | 4,888 | 4,520 |
Cash paid for income taxes | 1,921 | 6,233 | 9,603 |
Total unrestricted cash, cash equivalents and restricted cash, end of period | $ 1,066,154 | $ 1,010,095 | $ 1,010,095 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Green Dot Corporation (“we,” “our,” or “us” refer to Green Dot Corporation and its consolidated subsidiaries) is a financial technology leader and bank holding company with a mission to reinvent banking for the masses. Our company’s long-term strategy is to create a unique, sustainable and highly valuable fintech ecosystem, in part through the continued evolution of our innovative Banking as a Service (“BaaS”) platform, that’s intended to fuel the engine of innovation and growth for us and our business partners. Enabled by proprietary technology, our commercial bank charter and our high-scale program management operating capability, our vertically integrated technology and banking platform is used by a growing list of America’s most prominent consumer and technology companies to design and deploy their own bespoke financial services solutions to their customers and partners, while we use that same integrated platform for our own leading collection of banking and financial services products marketed directly to consumers through what we believe to be the most broadly distributed, omni-channel branchless banking platforms in the United States. We were incorporated in Delaware in 1999 and became a bank holding company under the Bank Holding Company Act and a member bank of the Federal Reserve System in December 2011. We are headquartered in Pasadena, California, with additional facilities throughout the United States and in Shanghai, China. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation Our consolidated financial statements include the results of Green Dot Corporation and our wholly-owned subsidiaries. We prepared the accompanying consolidated financial statements in accordance with generally accepted accounting principles in the United States of America, or GAAP. We eliminate all significant intercompany balances and transactions on consolidation. We include the results of operations of acquired companies from the date of acquisition. Reclassifications Beginning with the first quarter of 2019, we present net interest income generated from operations at Green Dot Bank, our subsidiary bank, as a component of our total operating revenues. Prior year amounts, formerly reported below operating income on our consolidated statements of operations, have been reclassified to conform to our current year presentation on our consolidated statements of operations. This reclassification changed our previously reported total operating revenues, but had no impact on our previously reported consolidated net income or cash flows for any comparative periods presented. Net interest income at Green Dot Bank has become an increasingly important revenue component as Green Dot Bank's ability to invest its growing customer balances and generate interest income is one of several unique advantages we have as both a leading financial technology company and a federally regulated bank. Net interest income or expense generated outside of Green Dot Bank continues to be reported below operating income on our consolidated statements of operations. Use of Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements, including the accompanying notes. We base our estimates and assumptions on historical factors, current circumstances, and the experience and judgment of management. We evaluate our estimates and assumptions on an ongoing basis. Actual results could differ from those estimates. Unrestricted Cash and Cash Equivalents We consider all unrestricted highly liquid investments with an original maturity of three months or less to be unrestricted cash and cash equivalents. Investment Securities Our investment portfolio is primarily comprised of fixed income securities. We classify these securities as available-for-sale and report them at fair value with the related unrealized gains and losses, net of tax, included in accumulated other comprehensive income, a component of stockholders’ equity. We classify investment securities with maturities less than or equal to 365 days as current assets. Note 2—Summary of Significant Accounting Policies (continued) We regularly evaluate each fixed income security where the value has declined below amortized cost to assess whether the decline in fair value is other-than-temporary. In determining whether an impairment is other-than-temporary, we consider the severity and duration of the decline in fair value, the length of time expected for recovery, the financial condition of the issuer, and other qualitative factors, as well as whether we either plan to sell the security or it is more likely-than-not that we will be required to sell the security before recovery of its amortized cost. If the impairment of the investment security is credit-related, an other-than-temporary impairment is recorded in earnings. We recognize non-credit-related impairment in accumulated other comprehensive income. If we intend to sell an investment security or believe we will more-likely-than-not be required to sell a security, we record the full amount of the impairment as an other-than-temporary impairment. Interest on fixed income securities, including amortization of premiums and accretion of discounts, is included in interest income. Obligations to Customers and Settlement Assets and Obligations At the point of sale, our retail distributors collect customer funds for purchases of new cards and balance reloads and then remit these funds directly to the banks that issue our cards. Our retail distributors’ remittance of these funds takes an average of two business days. Settlement assets represent the amounts due from our retail distributors and other partners for customer funds collected at the point of sale that have not yet been received by our subsidiary bank. Also included in this balance are payroll amounts funded in advance (up to two days early) to certain cardholders who are eligible to participate in our early direct deposit programs. Obligations to customers represent customer funds collected from (or to be remitted by) our retail distributors for which the underlying products have not been activated. Once the underlying products have been activated, the customer funds are reclassified as deposits in a bank account established for the benefit of the customer. Settlement obligations represent the customer funds received by our subsidiary bank that are due to third-party card issuing banks upon activation. Accounts Receivable, net Accounts receivable is comprised principally of receivables due from card issuing banks, overdrawn account balances due from cardholders, trade accounts receivable, fee advances and other receivables. We record accounts receivable net of reserves for estimated uncollectible accounts. Receivables due from card issuing banks primarily represent revenue-related funds held at the third-party card issuing banks related to our network branded programs that have yet to be remitted to us. These receivables are generally collected within a short period of time based on the remittance terms in our agreements with the third-party card issuing banks. Fee advances represent short-term advances to in-person tax return preparation companies made prior to and during tax season. These advances are collateralized by their clients' tax preparation fees and are generally collected within a short period of time as the in-person tax preparation companies begin preparing and processing their clients' tax refunds. Overdrawn Account Balances Due from Cardholders and Reserve for Uncollectible Overdrawn Accounts Our cardholder accounts may become overdrawn as a result of maintenance fee assessments or from purchase transactions that we honor, in excess of the funds in a cardholder’s account. We are exposed to losses from any unrecovered overdrawn account balances. We establish a reserve for uncollectible overdrawn accounts. We classify overdrawn accounts into age groups based on the number of days that have elapsed since an account last had activity, such as a purchase, ATM transaction or maintenance fee assessment. We calculate a reserve factor for each age group based on the average recovery rate for the most recent six months . These factors are applied to these age groups to estimate our overall reserve. When more than 90 days have passed without activity in an account, we write off the full amount of the overdrawn account balance. We include our provision for uncollectible overdrawn accounts related to maintenance fees and purchase transactions as an offset to card revenues and other fees and in other general and administrative expenses, respectively, in the accompanying consolidated statements of operations. Restricted Cash As of December 31, 2019 and 2018 , restricted cash amounted to $2.7 million and $0.5 million , respectively. Restricted cash principally relates to pre-funding obligations for cardholder accounts at third-party issuing banks. Note 2—Summary of Significant Accounting Policies (continued) Loans to Bank Customers We report loans measured at historical cost at their outstanding principal balances, net of any charge-offs, and for purchased loans, net of any unaccreted discounts. We recognize interest income as it is earned. Nonperforming Loans Nonperforming loans generally include loans that have been placed on nonaccrual status. We generally place loans on nonaccrual status when they are past due 90 days or more. We reverse the related accrued interest receivable and apply interest collections on nonaccrual loans as principal reductions; otherwise, we credit such collections to interest income when received. These loans may be restored to accrual status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected. For our secured credit card portfolio, when an account is past due 90 days, collateral deposits are applied against outstanding credit card balances. Any balance in excess of the collateral balance is charged off at 180 days. We consider a loan to be impaired when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. Once we determine a loan to be impaired, we measure the impairment based on the present value of the expected future cash flows discounted at the loan's effective interest rate. We may also measure impairment based on observable market prices, or for loans that are solely dependent on the collateral for repayment, the estimated fair value of the collateral less estimated costs to sell. If the recorded investment in impaired loans exceeds this amount, we establish a specific allowance as a component of the allowance for loan losses or by adjusting an existing valuation allowance for the impaired loan. Allowance for Loan Losses We establish an allowance for loan losses to account for estimated credit losses inherent in our loan portfolio, including our secured credit cards. For each portfolio of loans, our estimate of inherent losses is separately calculated on an aggregate basis for groups of loans and are considered to have similar credit characteristics and risk of loss. We analyze historical loss rates for these groups to determine a loss rate for each group of loans. We then adjust the rates for qualitative factors which in our judgment affect the expected inherent losses. Qualitative considerations include, but are not limited to, prevailing economic or market conditions, changes in the loan grading and underwriting process, changes in the estimated value of the underlying collateral for collateral dependent loans, delinquency and nonaccrual status, problem loan trends, and geographic concentrations. We separately establish specific allowances for impaired loans based on the present value of changes in cash flows expected to be collected, or for impaired loans that are considered collateral dependent, the estimated fair value of the collateral. Property and Equipment We carry our property and equipment at cost less accumulated depreciation and amortization. We generally compute depreciation on property and equipment using the straight-line method over the estimated useful lives of the assets, except for land, which is not depreciated. We generally compute amortization on tenant improvements using the straight-line method over the shorter of the related lease term or estimated useful lives of the improvements. We expense expenditures for maintenance and repairs as incurred. We capitalize certain internal and external costs incurred to develop internal-use software during the application development stage. We also capitalize the cost of specified upgrades and enhancements to internal-use software that result in additional functionality. Once a development project is substantially complete and the software is ready for its intended use, we begin depreciating these costs on a straight-line basis over the internal-use software’s estimated useful life. The estimated useful lives of the respective classes of assets are as follows: Land N/A Building 30 years Computer equipment, furniture and office equipment 3-10 years Computer software purchased 3 years Capitalized internal-use software 3-7 years Tenant improvements Shorter of the useful life or the lease term Note 2—Summary of Significant Accounting Policies (continued) Impairment of Long-Lived Assets We evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of expected undiscounted future cash flows from an asset is less than the carrying amount of the asset, we estimate the fair value of the assets. We measure the loss as the amount by which the carrying amount exceeds its fair value calculated using the present value of estimated net future cash flows. We recorded impairment charges of $0.6 million , $0.9 million and $1.3 million for the years ended December 31, 2019 , 2018 and 2017 , respectively, associated with capitalized internal-use software we determined to no longer be utilized and any remaining carrying value was written off. These impairment charges are included in other general and administrative expenses in our consolidated statements of operations. Goodwill and Intangible Assets Goodwill is the purchase premium after adjusting for the fair value of net assets acquired. Goodwill is not amortized but is reviewed for potential impairment on an annual basis, or when events or circumstances indicate a potential impairment, at the reporting unit level. A reporting unit, as defined under applicable accounting guidance, is an operating segment or one level below an operating segment, referred to as a component. We may in any given period bypass the qualitative assessment and proceed directly to a two-step method to assess and measure impairment of the reporting unit's goodwill. We first assess qualitative factors to determine whether it is more likely-than-not (i.e., a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying value. This step serves as the basis for determining whether it is necessary to perform the two-step quantitative impairment test. The first step of the quantitative impairment test involves a comparison of the estimated fair value of each reporting unit to its carrying amount, including goodwill. If the estimated fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired; however, if the carrying amount of the reporting unit exceeds its estimated fair value, then the second step of the quantitative impairment test must be performed. The second step compares the implied fair value of the reporting unit’s goodwill with its carrying amount to measure the amount of impairment loss, if any. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. For intangible assets subject to amortization, we recognize an impairment loss if the carrying amount of the intangible asset is not recoverable and exceeds its estimated fair value. The carrying amount of the intangible asset is considered not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset. No impairment charges were recognized related to goodwill or intangible assets for the years ended December 31, 2019 , 2018 and 2017 . Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives, which is our best estimate of the pattern of economic benefit, based on legal, contractual, and other provisions. The estimated useful lives of the intangible assets, which consist primarily of customer relationships and trade names, range from 3 - 15 years . Amounts Due to Card Issuing Banks for Overdrawn Accounts Third-party card issuing banks fund overdrawn cardholder account balances on our behalf. Amounts funded are due from us to the card issuing banks based on terms specified in the agreements with the card issuing banks. Generally, we expect to settle these obligations within two months. Note 2—Summary of Significant Accounting Policies (continued) Fair Value Under applicable accounting guidance, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability. As such, fair value reflects an exit price 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. The following describes the three-level hierarchy: Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain U.S. Treasury securities that are highly liquid and are actively traded in over-the-counter markets. Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include fixed income securities with quoted prices that are traded less frequently than exchange-traded instruments. This category generally includes U.S. government and agency mortgage-backed fixed income securities and corporate fixed income securities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the overall fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments for which the determination of fair value requires significant management judgment or estimation. The fair value for such assets and liabilities is generally determined using pricing models, market comparables, discounted cash flow methodologies or similar techniques that incorporate the assumptions a market participant would use in pricing the asset or liability. This category generally includes certain private equity investments and certain asset-backed securities. Revenue Recognition Our operating revenues consist of card revenues and other fees, processing and settlement service revenues and interchange revenues. The core principle of the recent revenue standard is that these revenues will be recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services, as determined under a five-step process. A description of our principal revenue generating activities is as follows: Card Revenues and Other Fees Card revenues and other fees consist of monthly maintenance fees, new card fees, ATM fees, and other card revenues. We earn these fees based upon the underlying terms and conditions with each of our cardholders that obligate us to stand ready to provide account services to each of our cardholders over the contract term. Agreements with our cardholders are considered daily service contracts as they are not fixed in duration. Also included in card revenues and other fees are program management service fees earned from our BaaS partners for cardholder programs we manage on their behalf. We charge maintenance fees on a monthly basis pursuant to the terms and conditions in the applicable cardholder agreements. We recognize monthly maintenance fees ratably over each day in the monthly bill cycle in which the fee is assessed, which represents the period our cardholders receive the benefits of our services and our performance obligation is satisfied. We charge new card fees when a consumer purchases a new card in a retail store. The new card fee provides our cardholders a material right and accordingly, we defer and recognize new card fee revenues on a straight-line basis over our average card lifetime, which is currently less than one year for our GPR cards and gift cards. For GPR cards, average card lifetime is determined based on recent historical data using the period from sale (or activation) of the card through the date of last positive balance. We reassess average card lifetime quarterly. We report the unearned portion of new card fees as a component of deferred revenue in our consolidated balance sheets. See Contract Balances discussed in Note 3 — Revenues , for further information. Note 2—Summary of Significant Accounting Policies (continued) We charge ATM fees to cardholders when they withdraw money at certain ATMs in accordance with the terms and conditions in our cardholder agreements. We recognize ATM fees when the withdrawal is made by the cardholder, which is the point in time our performance obligation is satisfied and service is performed. Since our cardholder agreements are considered daily service contracts, our performance obligations for these types of transactional based fees are satisfied on a daily basis, or as each transaction occurs. Other revenues consist primarily of revenue associated with our gift card program, transaction-based fees and fees associated with optional products or services, which we offer our cardholders at their election. Since our performance obligations are settled daily, we recognize most of these fees at the point in time the transactions occur which is when the underlying performance obligation is satisfied. In the case of our gift card program, we record the related revenues using the redemption method. Substantially all our fees are collected from our cardholders at the time the fees are assessed and debited from their account balance. Program management fees from our BaaS partners are earned on a monthly basis, pursuant to the terms of each program management agreement. Our agreements are generally multi-year arrangements of varying lengths. We recognize these fees as our program management services are rendered each month. Processing and Settlement Service Revenues Our processing and settlement services consist of cash transfer revenues, Simply Paid disbursement revenues, and tax refund processing service revenues. We generate cash transfer revenues when consumers purchase our cash transfer products (reload services) in a retail store. Our reload services are subject to the same terms and conditions in each of the applicable cardholder agreements as discussed above. We recognize these revenues at the point in time the reload services are completed. Similarly, we earn Simply Paid disbursement fees from our business partners as payment disbursements are made. We earn tax refund processing service revenues when a customer of a third-party tax preparation company chooses to pay their tax preparation fee through the use of our tax refund processing services. Revenues we earn from these services are generated from our contractual relationships with the tax software transmitters. These contracts may be multi-year agreements and vary in length, however, our underlying promise obligates us to process each refund transfer on a transaction by transaction basis as elected by the taxpayer. Accordingly, we recognize tax refund processing service revenues at the point in time we satisfy our performance obligation by remitting each taxpayer’s proceeds from his or her tax return. Interchange We earn interchange revenues from fees remitted by the merchant’s bank, which are based on rates established by the payment networks, such as Visa and MasterCard, when account holders make purchase transactions using our card products and services. We recognize interchange revenues at the point in time the transactions occur, as our performance obligation is satisfied. Principal vs Agent For all our significant revenue-generating arrangements, we record revenues on a gross basis except for our tax refund processing service revenues which are recorded on a net basis. Sales and Marketing Expenses Sales and marketing expenses primarily consist of sales commissions, advertising and marketing expenses, and the costs of manufacturing and distributing card packages, placards, promotional materials to our retail distributors’ locations and personalized GPR cards to consumers who have activated their cards. We pay our retail distributors, and brokers commissions based on sales of our prepaid debit cards and cash transfer products in their stores. We defer and expense commissions related to new cards sales ratably over the average card lifetime, which is currently less than one year for our GPR and gift cards. Absent a new card fee, we recognize the cost of the related commissions immediately. We recognize the cost of commissions related to cash transfer products when the cash transfer transactions are completed. We recognize costs for the production of advertising as incurred. The cost of media advertising is recorded when the advertising first takes place. We record the costs associated with Note 2—Summary of Significant Accounting Policies (continued) card packages and placards as prepaid expenses, and we record the costs associated with personalized GPR cards as deferred expenses. We recognize the prepaid cost of card packages and placards over the related sales period, and we amortize the deferred cost of personalized GPR cards, when activated, over the average card lifetime. Included in sales and marketing expenses are advertising and marketing expenses of $51.1 million , $23.2 million and $25.1 million and shipping and handling costs of $1.5 million , $2.0 million and $3.0 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Also included in sales and marketing expenses are use taxes to various states related to purchases of materials since we do not charge sales tax to customers when new cards or cash transfer transactions are purchased. Employee Stock-Based Compensation We record employee stock-based compensation expense based on the grant-date fair value of the award. For stock options and stock purchases under our employee stock purchase plan, or ESPP, we base compensation expense on fair values estimated at the grant date using the Black-Scholes option-pricing model. For stock awards, including restricted stock units, we base compensation expense on the fair value of our common stock at the grant date. We recognize compensation expense for awards with only service conditions that have graded vesting schedules on a straight-line basis over the vesting period of the award. Vesting is based upon continued service to our company and we account for any forfeitures as they occur. We have issued performance based and market based restricted stock units to our executive officers and employees. For performance-based awards, we recognize compensation cost for the restricted stock units if and when we conclude it is probable that the performance metrics will be satisfied, over the requisite service period based on the grant-date fair value of the stock. We reassess the probability of vesting at each reporting period and adjust compensation expense based on the probability assessment. For market based restricted stock units, we base compensation expense on the fair value estimated at the date of grant using a Monte Carlo simulation or similar lattice model. We recognize compensation expense over the requisite service period regardless of the market condition being satisfied, provided that the requisite service has been rendered, since the estimated grant date fair value incorporates the probability of outcomes that the market condition will be achieved. Under our retirement policy adopted in April 2018, following a qualified retirement, any service-based requirement for unvested stock awards held by the eligible employee is eliminated. Accordingly, the related compensation expense is recognized immediately for qualifying awards granted to eligible employees, or in the case of ineligible employees who later become eligible under the retirement policy, over the period from the grant date to the date a qualifying retirement is achieved, if earlier than the standard vesting dates. Performance-based restricted stock units issued to retirement eligible employees remain subject to the stock awards’ annual performance targets and the expense will be adjusted accordingly based expected achievement. Income Taxes Our income tax expense is comprised of current and deferred income tax expense. Current income tax expense approximates taxes to be paid or refunded for the current period. Deferred income tax expense results from the changes in deferred tax assets and liabilities during the periods. These gross deferred tax assets and liabilities represent decreases or increases in taxes expected to be paid in the future because of future reversals of temporary differences between the basis of assets and liabilities as measured by tax laws and their basis as reported in our consolidated financial statements. We also recognize deferred tax assets for tax attributes such as net operating loss carryforwards and tax credit carryforwards. We record valuation allowances to reduce deferred tax assets to the amounts we conclude are more likely-than-not to be realized in the foreseeable future. We recognize and measure income tax benefits based upon a two-step model: 1) a tax position must be more likely-than-not to be sustained based solely on its technical merits in order to be recognized, and 2) the benefit is measured as the largest dollar amount of that position that is more likely-than-not to be sustained upon settlement. The difference between the benefit recognized for a position and the tax benefit claimed on a tax return is referred to as an unrecognized tax benefit. We accrue income tax related interest and penalties, if applicable, within income tax expense. Note 2—Summary of Significant Accounting Policies (continued) Earnings Per Common Share We currently have only one class of common stock outstanding. Basic EPS is calculated by dividing net income by the weighted-average common shares issued and outstanding. Diluted EPS is calculated dividing net income by the weighted-average number of the common shares issued and outstanding for each period plus amounts representing the dilutive effect of outstanding stock options, restricted stock units (including performance based restricted stock units), and shares to be purchased under our employee stock purchase plan. We calculate dilutive potential common shares using the treasury stock method. We exclude the effects of restricted stock units and stock options from the computation of diluted EPS in periods in which the effect would be anti-dilutive. Additionally, we exclude any performance based restricted stock units for which the performance contingency has not been met as of the end of the period. Regulatory Matters and Capital Adequacy As a bank holding company, we are subject to comprehensive supervision and examination by the Federal Reserve Board and must comply with applicable regulations, including minimum capital and leverage requirements. If we fail to comply with any of these requirements, we may become subject to formal or informal enforcement actions, proceedings, or investigations, which could result in regulatory orders, restrictions on our business operations or requirements to take corrective actions, which may, individually or in the aggregate, affect our results of operations and restrict our ability to grow. If we fail to comply with the applicable capital and leverage requirements, or if our subsidiary bank fails to comply with its applicable capital and leverage requirements, the Federal Reserve Board may limit our or Green Dot Bank's ability to pay dividends. In addition, as a bank holding company and a financial holding company, we are generally prohibited from engaging, directly or indirectly, in any activities other than those permissible for bank holding companies and financial holding companies. This restriction might limit our ability to pursue future business opportunities which we might otherwise consider but which might fall outside the scope of permissible activities. We may also be required to serve as a “source of strength” to Green Dot Bank if it becomes less than adequately capitalized. Recent Accounting Pronouncements Recently issued accounting pronouncements not yet adopted In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other ("ASU 2017-04") : Simplifying the Test for Goodwill Impairment , which sim |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Adoption of ASC 606 On January 1, 2018, we adopted ASC 606 using the modified retrospective method applied to contracts which were not completed upon adoption, the impact of which did not result in any cumulative adjustment to our retained earnings. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts have not been adjusted and continue to be reported in accordance with our historical accounting policies. The impact of our adoption of ASC 606 was limited to a change in presentation of certain incentive agreements. Prior to the adoption of ASC 606, incentive payments with our retail distributors and other partners had generally been recorded as a reduction to revenues over the related period of benefit the incentive payment related. Upon the adoption of ASC 606, such payments are classified as sales and marketing expenses since these contractual arrangements have been determined to be outside the scope of contracts with our customers under the new accounting standard. Note 3—Revenues (continued) The total amount of incentive payments recognized was $6.4 million , $7.1 million and $4.8 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Disaggregation of Revenues Our products and services are offered only to customers within the United States. We determine our operating segments based on how our chief operating decision maker manages our operations, makes operating decisions and evaluates operating performance. Within our segments, we believe that the nature, amount, timing and uncertainty of our revenue and cash flows and how they are affected by economic factors can be further illustrated based on the timing in which revenue for each of our products and services is recognized. The following table disaggregates our revenues by the timing in which the revenue is recognized: Year Ended December 31, 2019 Year Ended December 31, 2018 Account Services Processing and Settlement Services Account Services Processing and Settlement Services Timing of revenue recognition (In thousands) Transferred at a point in time $ 489,696 $ 287,052 $ 500,629 $ 247,942 Transferred over time 293,500 6,406 289,714 3,473 Operating revenues (1) $ 783,196 $ 293,458 $ 790,343 $ 251,415 (1) Excludes net interest income, a component of total operating revenues, as it remains outside the scope of ASC 606, Revenues Within our Account Services segment, revenues recognized at a point in time are comprised of ATM fees, interchange, and other similar transaction-based fees. Revenues recognized over time consists of new card fees, monthly maintenance fees, revenue earned from gift cards and substantially all BaaS partner program management fees. Substantially all of our processing and settlement services are recognized at a point in time. Refer to Note 24 — Segment Informatio n for our revenues disaggregated by our products and services and the components to our total operating revenues on our consolidated statements of operations for additional information. Significant Judgments and Estimates Transaction prices related to our account cardholder services are based on stand-alone fees stated within the terms and conditions and may also include certain elements of variable consideration depending upon the product’s features, such as cardholder incentives, cash-back rewards, monthly fee concessions and reserves on accounts that may become overdrawn. We estimate such amounts using historical data and customer behavior patterns to determine these estimates which are recorded as a reduction to the corresponding fee revenue. Additionally, while the number of transactions that a cardholder may perform is unknown, any uncertainty is resolved at the end of each daily service contract. Contract Balances As disclosed on our consolidated balance sheets, we record deferred revenue for any upfront payments received in advance of our performance obligations being satisfied. These contract liabilities consist principally of unearned new card fees and monthly maintenance fees. We recognized approximately $31.8 million and $28.7 million for the years ended December 31, 2019 and 2018 , or substantially all of the amount of contract liabilities included in deferred revenue at the beginning of the respective periods and did not recognize any revenue during these periods from performance obligations satisfied in previous periods. Changes in the deferred revenue balance are driven primarily by the amount of new card fees recognized during the period, and the degree to which these reductions to the deferred revenue balance are offset by the deferral of new card fees associated with cards sold during the period. Costs to Obtain or Fulfill a Contract Our incremental direct costs of obtaining a contract consist primarily of revenue share payments we make to our retail partners associated with new card sales. These commissions are generally capitalized upon payment and expensed over the period the corresponding revenue is recognized. These deferred commissions are not material and are included in deferred expenses on our consolidated balance sheets. Note 3—Revenues (continued) Practical Expedients and Exemptions Any unsatisfied performance obligations at the end of the period relate to contracts with customers that either have an original expected length of one year or less or are contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. Therefore, no additional disclosure is provided for these performance obligations. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investment 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) December 31, 2019 Corporate bonds $ 10,000 $ 12 $ — $ 10,012 Agency bond securities 19,980 20 — 20,000 Agency mortgage-backed securities 208,821 2,453 (241 ) 211,033 Municipal bonds 4,342 2 (2 ) 4,342 Asset-backed securities 31,814 238 — 32,052 Total investment securities $ 274,957 $ 2,725 $ (243 ) $ 277,439 December 31, 2018 Negotiable certificate of deposit $ 15,000 $ — $ — $ 15,000 Agency bond securities 19,723 6 (36 ) 19,693 Agency mortgage-backed securities 87,156 53 (396 ) 86,813 Municipal bonds 507 — (24 ) 483 Asset-backed securities 79,274 14 (94 ) 79,194 Total investment securities $ 201,660 $ 73 $ (550 ) $ 201,183 As of December 31, 2019 and 2018 , 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 fair value Total unrealized loss Fair value Unrealized loss Fair value Unrealized loss (In thousands) December 31, 2019 Agency mortgage-backed securities $ 43,337 $ (153 ) $ 8,735 $ (88 ) $ 52,072 $ (241 ) Municipal bonds — — 113 (2 ) 113 (2 ) Total investment securities $ 43,337 $ (153 ) $ 8,848 $ (90 ) $ 52,185 $ (243 ) December 31, 2018 Agency bond securities $ 14,937 $ (36 ) $ — $ — $ 14,937 $ (36 ) Agency mortgage-backed securities 28,939 (103 ) 8,743 (293 ) 37,682 (396 ) Municipal bonds 353 (14 ) 130 (10 ) 483 (24 ) Asset-backed securities 50,980 (70 ) 7,333 (24 ) 58,313 (94 ) Total investment securities $ 95,209 $ (223 ) $ 16,206 $ (327 ) $ 111,415 $ (550 ) We did not record any other-than-temporary impairment losses during the year s ended December 31, 2019 and 2018 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. Note 4—Investment Securities (continued) As of December 31, 2019 , 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 $ 10,000 $ 10,020 Due after one year through five years 10,000 10,012 Due after five years through ten years 9,980 9,980 Due after ten years 4,342 4,342 Mortgage and asset-backed securities 240,635 243,085 Total investment securities $ 274,957 $ 277,439 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 | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable, net consisted of the following: December 31, 2019 December 31, 2018 (In thousands) Overdrawn account balances due from cardholders $ 20,048 $ 17,848 Reserve for uncollectible overdrawn accounts (16,884 ) (13,888 ) Net overdrawn account balances due from cardholders 3,164 3,960 Trade receivables 14,512 6,505 Reserve for uncollectible trade receivables (202 ) (59 ) Net trade receivables 14,310 6,446 Receivables due from card issuing banks 5,758 6,688 Fee advances 26,268 19,576 Other receivables 10,043 4,272 Accounts receivable, net $ 59,543 $ 40,942 Activity in the reserve for uncollectible overdrawn accounts consisted of the following: Year Ended December 31, 2019 2018 2017 (In thousands) Balance, beginning of period $ 13,888 $ 14,471 $ 11,932 Provision for uncollectible overdrawn accounts: Fees 79,810 67,348 69,912 Purchase transactions 6,641 12,442 7,233 Charge-offs (83,455 ) (80,373 ) (74,606 ) Balance, end of period $ 16,884 $ 13,888 $ 14,471 |
Loans to Bank Customers
Loans to Bank Customers | 12 Months Ended |
Dec. 31, 2019 | |
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) December 31, 2019 Residential $ 1 $ — $ — $ 1 $ 4,530 $ 4,531 Commercial — — — — 158 158 Installment 1 — — 1 1,246 1,247 Secured credit card 1,080 939 2,183 4,202 12,445 16,647 Total loans $ 1,082 $ 939 $ 2,183 $ 4,204 $ 18,379 $ 22,583 Percentage of outstanding 4.8 % 4.2 % 9.7 % 18.6 % 81.4 % 100.0 % December 31, 2018 Residential $ 2 $ — $ 7 $ 9 $ 3,329 $ 3,338 Commercial — — — — 193 193 Installment — 2 — 2 905 907 Secured credit card 1,383 1,315 1,114 3,812 14,257 18,069 Total loans $ 1,385 $ 1,317 $ 1,121 $ 3,823 $ 18,684 $ 22,507 Percentage of outstanding 6.2 % 5.9 % 5.0 % 17.0 % 83.0 % 100.0 % 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 for further information on the criteria for classification as nonperforming. December 31, 2019 December 31, 2018 (In thousands) Residential $ 290 $ 403 Installment 147 169 Secured credit card 2,183 1,114 Total loans $ 2,620 $ 1,686 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: December 31, 2019 December 31, 2018 Non-Classified Classified Non-Classified Classified (In thousands) Residential $ 4,241 $ 290 $ 2,935 $ 403 Commercial 158 — 193 — Installment 1,058 189 632 275 Secured credit card 14,464 2,183 16,955 1,114 Total loans $ 19,921 $ 2,662 $ 20,715 $ 1,792 Note 6—Loans to Bank Customers (continued) 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 related to extensions of the maturity dates 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 December 31, 2019 and 2018 : December 31, 2019 December 31, 2018 Unpaid Principal Balance Carrying Value Unpaid Principal Balance Carrying Value (In thousands) Residential $ 290 $ 221 $ 403 $ 329 Installment 160 48 190 53 Allowance for Loan Losses Activity in the allowance for loan losses consisted of the following: Year Ended December 31, 2019 2018 2017 (In thousands) Balance, beginning of period $ 1,144 $ 291 $ 277 Provision for loans 2,405 3,094 430 Loans charged off (2,674 ) (2,657 ) (472 ) Recoveries of loans previously charged off 291 416 56 Balance, end of period $ 1,166 $ 1,144 $ 291 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following: December 31, 2019 2018 (In thousands) Land $ 205 $ 205 Building 605 1,105 Computer equipment, furniture, and office equipment 61,193 60,110 Computer software purchased 31,218 27,276 Capitalized internal-use software 227,137 187,723 Tenant improvements 14,435 12,533 334,793 288,952 Less accumulated depreciation and amortization (189,317 ) (168,683 ) Property and equipment, net $ 145,476 $ 120,269 Depreciation and amortization expense was $49.5 million , $38.6 million and $33.5 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Included in those amounts are depreciation expense related to internal-use software of $35.1 million , $25.5 million and $20.0 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. We recorded impairment charges of $0.6 million , $0.9 million and $1.3 million for the years ended December 31, 2019 , 2018 and 2017 , respectively, associated with capitalized internal-use software we determined to no longer be utilized and any remaining carrying value was written off. The net carrying value of capitalized internal-use software was $119.9 million and $93.8 million at December 31, 2019 and 2018 , respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill and intangible assets on our consolidated balance sheets consisted of the following: December 31, 2019 2018 (In thousands) Goodwill $ 301,790 $ 301,790 Intangible assets, net 219,204 249,326 Goodwill and intangible assets $ 520,994 $ 551,116 Goodwill There were no changes in the composition of goodwill from the previous year. We completed our annual goodwill impairment test as of September 30, 2019 . Based on the results of step one of the annual goodwill impairment test, we determined that step two was not required for each of our reporting units as their fair values exceeded their carrying values indicating there was no impairment. Intangible Assets The gross carrying amounts and accumulated amortization related to intangibles assets were as follows: December 31, 2019 December 31, 2018 Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value Weighted Average Useful Lives (In thousands) (In thousands) (Years) Customer relationships $ 309,773 $ (126,167 ) $ 183,606 $ 309,773 $ (98,305 ) $ 211,468 12.8 Trade names 44,086 (15,689 ) 28,397 44,086 (12,517 ) 31,569 14.6 Patents 3,000 (1,364 ) 1,636 3,000 (1,091 ) 1,909 11.0 Software licenses 4,832 (837 ) 3,995 — — — 3.0 Other 5,964 (4,394 ) 1,570 7,464 (3,084 ) 4,380 5.0 Total intangible assets $ 367,655 $ (148,451 ) $ 219,204 $ 364,323 $ (114,997 ) $ 249,326 Amortization expense on finite-lived intangibles, a component of other general and administrative expenses, was $32.6 million , $32.8 million , and $31.1 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. None of our intangible assets were considered impaired as of December 31, 2019 or 2018 . The following table shows our estimated amortization expense for intangible assets for each of the next five succeeding years and thereafter: December 31, (In thousands) 2020 $ 28,954 2021 28,608 2022 27,288 2023 26,418 2024 24,235 Thereafter 83,701 Total $ 219,204 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Deposits | Deposits Deposits are categorized as non-interest or interest-bearing deposits as follows: December 31, 2019 2018 Non-interest bearing deposit accounts (In thousands) Account programs $ 927,432 $ 817,124 Other demand deposits 128,386 97,442 Total non-interest bearing deposit accounts 1,055,818 914,566 Interest-bearing deposit accounts Checking accounts 95,995 67,758 Savings 6,619 8,894 Secured card deposits 11,892 9,224 Time deposits, denominations greater than or equal to $100 3,854 3,796 Time deposits, denominations less than $100 1,163 1,247 Total interest-bearing deposit accounts 119,523 90,919 Total deposits $ 1,175,341 $ 1,005,485 The scheduled contractual maturities for total time deposits are presented in the table below: December 31, (In thousands) Due in 2020 $ 2,608 Due in 2021 813 Due in 2022 811 Due in 2023 335 Due in 2024 450 Total time deposits $ 5,017 As of December 31, 2019 , we had aggregate time deposits of $2.3 million in denominations that met or exceeded the Federal Deposit Insurance Corporation (FDIC) insurance limit. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of December 31, 2019 and 2018 , our outstanding debt consisted of the following: December 31, 2019 December 31, 2018 (In thousands) Term facility $ — $ 58,705 Revolving facility 35,000 — Total debt outstanding $ 35,000 $ 58,705 2019 Revolving Facility In October 2019, we entered into a secured credit agreement with Wells Fargo Bank, National Association, and other lenders party thereto. The new credit facility provides for a $100.0 million five-year revolving line of credit (the "2019 Revolving Facility"), maturing in October 2024. We use the proceeds of any borrowings under the revolving facility for working capital and other general corporate purposes, subject to the terms and conditions set forth in the credit agreement. We may make voluntary repayments at any time or from time to time until maturity. Borrowings available under the 2019 Revolving Facility as of December 31, 2019 amounted to $65.0 million . Note 10—Debt (continued) 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 United States federal funds rate plus .50% , (a) the Wells Fargo prime rate and (c) a daily rate equal to one-month LIBOR rate plus 1.0% (the “Base Rate"), plus in either case an applicable margin. The margin is dependent upon on our total leverage ratio and varies from 1.25% to 2.00% for LIBOR Rate loans and .25% to 1.00% for Base Rate loans. The interest rate on our outstanding balance as of December 31, 2019 was 3.05% . We also pay a commitment fee, which varies from .20% to .35% per annum on the actual daily unused portions of the 2019 Revolving Facility. Letter of credit fees are payable in respect of outstanding letters of credit at a rate per annum equal to the applicable margin for LIBOR Rate loans. The 2019 Revolving Facility contains customary representations and warranties relating to us and our subsidiaries. The 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 also 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 December 31, 2019 , we were in compliance with all such covenants. If an event of default shall occur and be continuing under the facility, the commitments may be terminated and the principal amounts outstanding under the 2019 Revolving Facility, together with all accrued unpaid interest and other amounts owing in respect thereof, may be declared immediately due and payable. Senior Credit Facility 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 provided 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"). Quarterly principal payments of $5.6 million were payable under the Term Facility, with any remaining balance outstanding due upon maturity on October 23, 2019. In March 2019, we elected to make a voluntary prepayment of $60.0 million to retire the Term Facility without penalty or additional premium. The Revolving Facility remained available for use until the Senior Credit Facility matured in October 2019, at which point we entered into the 2019 Revolving Facility discussed above. Cash interest expense related to our debt was $0.6 million , $3.5 million , and $4.1 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock Our Certificate of Incorporation specifies the following rights, preferences, and privileges for our common stockholders. Voting Holders of our Class A common stock are entitled to one vote per share. We have not provided for cumulative voting for the election of directors in our restated Certificate of Incorporation. In addition, our Certificate of Incorporation provides that a holder, or group of affiliated holders, of more than 24.9% of our common stock may not vote shares representing more than 14.9% of the voting power represented by the outstanding shares of our Class A common stock. Dividends Subject to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of outstanding shares of our Class A common stock are entitled to receive dividends out of funds legally available at the times and in the amounts that our board of directors may determine. In the event a dividend is paid in the form of shares of common stock or rights to acquire shares of common stock, the holders of Class A common stock will receive Class A common stock, or rights to acquire Class A common stock, as the case may be. Note 11—Stockholders’ Equity (continued) Liquidation Upon our liquidation, dissolution or winding-up, the assets legally available for distribution to our stockholders would be distributable ratably among the holders of our Class A common stock and any participating preferred stock outstanding at that time after payment of liquidation preferences, if any, on any outstanding shares of our preferred stock and payment of other claims of creditors. Preemptive or Similar Rights Our Class A common stock is not entitled to preemptive rights or subject to redemption. Comprehensive Income The tax impact on unrealized losses on investment securities available-for-sale for the years ended December 31, 2019 , 2018 and 2017 was approximately $0.8 million , $0.1 million and $0.1 million , respectively. Stock Repurchase Program In June 2015, our Board of Directors authorized, subject to regulatory approval, a repurchase of shares of our Class A Common Stock in an amount up to $150 million under a stock repurchase program ("Repurchase Program") with no expiration date. We completed our repurchase of all Class A Common Stock under the initial authorization in 2017. In May 2017, our Board of Directors authorized, subject to regulatory approval, expansion of our stock Repurchase Program by an additional $150 million . We sought and received regulatory approval during the second quarter of 2019, at which point we entered into an accelerated share repurchase agreement, as further discussed below. As of December 31, 2019 , we have an authorized $50 million remaining under our current stock repurchase program for any additional repurchases. Accelerated Share Repurchases We have entered into accelerated share repurchase arrangements (“ASRs”) with a financial institution from time to time under the Repurchase Program. The following table summarizes our ASR activity for the years presented in these consolidated financial statements: Purchase Period End Date Number of Shares (In thousands) Average repurchase price per share ASR Amount (In thousands) May 2019 ASR August 2019 2,072 $ 48.26 $ 100,000 March 2017 ASR November 2017 1,326 $ 38.64 $ 50,000 (1) (1) We elected to cash settle approximately $2.0 million worth of shares owed back to the counterparty under our March 2017 accelerated share repurchase agreement. In exchange for an up-front payment, the financial institution delivers shares of our Class A Common Stock during the purchase periods of each ASR. Upon settlement, we either receive additional shares from the financial institution or we may be required to deliver additional shares or cash to the financial institution, at our election. The final number of shares received upon settlement for the ASR is determined based on the volume-weighted average price of our common stock over the term of the agreement less an agreed upon discount and subject to adjustments pursuant to the terms and conditions of the ASR. |
Employee Stock-Based Compensati
Employee Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Employee Stock-Based Compensation | Employee Stock-Based Compensation In June 2010, our board of directors adopted, and in July 2010 our stockholders approved, the 2010 Equity Incentive Plan, which replaced our 2001 Stock Plan, and the 2010 Employee Stock Purchase Plan. The 2010 Equity Incentive Plan authorizes the award of stock options, restricted stock awards, stock appreciation rights, restricted stock units, performance shares and stock bonuses. Options granted under the 2010 Equity Incentive Plan generally vest over four years and expire five years or ten years from the date of grant. The 2010 Employee Stock Purchase Plan enables eligible employees to purchase shares of our Class A common stock periodically at a discount. Our 2010 Employee Stock Purchase Plan is intended to qualify as an employee stock purchase plan under Section 423 of the Internal Revenue Code. Approximately 2.1 million shares are available for grant under the 2010 Equity Incentive Plan as of December 31, 2019 . Stock-based compensation for the years ended December 31, 2019 , 2018 , and 2017 includes expense related to awards of stock options, performance and service based restricted stock units and purchases under the 2010 Employee Stock Purchase Plan. Total stock-based compensation expense and the related income tax benefit were as follows: Year Ended December 31, 2019 2018 2017 (In thousands) Total stock-based compensation expense $ 29,583 $ 50,093 $ 40,734 Related income tax benefit 5,143 3,783 9,440 Restricted Stock Units The following table summarizes restricted stock units with only service conditions granted under our 2010 Equity Incentive Plan: Year Ended December 31, 2019 2018 2017 (In thousands, except per share data) Restricted stock units granted 238 452 656 Weighted-average grant-date fair value $ 38.93 $ 74.33 $ 48.72 Restricted stock unit activity for the year ended December 31, 2019 was as follows: Shares Weighted-Average Grant-Date Fair Value (In thousands, except per share data) Outstanding at December 31, 2018 1,554 $ 44.38 Restricted stock units granted 238 38.93 Restricted stock units vested (654 ) 34.60 Restricted stock units canceled (250 ) 53.85 Outstanding at December 31, 2019 888 $ 47.20 The total fair value of restricted stock vested for the years ended December 31, 2019 , 2018 and 2017 was $30.9 million , $67.5 million and $41.5 million , respectively, based on the price of our Class A common stock on the vesting date. Performance Based Restricted Stock Units We grant performance-based restricted stock units to certain employees which are subject to the attainment of pre-established annual performance targets for, among other things, non-GAAP earnings per share for the grant year. The actual number of shares subject to the award is determined at the end of the annual performance period and may range from zero to 150% of the target shares granted. These awards contain an additional service component after each annual performance period is concluded and the unvested balance of the shares determined at the end of the annual performance period will vest over the remaining requisite service period. Compensation expense related to these awards is recognized using the accelerated attribution method over the vesting period (generally, a period of four years) based on the fair value of the closing market price of our Class A common stock on the date of the grant Note 12—Employee Stock-Based Compensation (continued) and the estimated performance that is expected to be achieved. In the case of our former Chief Executive Officer, vesting of his awards was based on our achievement of total shareholder return ("TSR") relative to the S&P 600 index over a three-year performance period, with awards eligible for a maximum payout up to 150% of the target shares for awards granted prior to 2019 or 200% of the target shares for awards granted in 2019, respectively. Compensation expense related to these awards is recognized over the performance period based on the grant date fair value through the use of a Monte Carlo simulation and are not subsequently re-measured. Any unvested awards of our former Chief Executive Officer were forfeited as of December 31, 2019 as a result of his retirement. The following table summarizes the performance-based restricted stock units granted under our 2010 Equity Incentive Plan: Year Ended December 31, 2019 2018 2017 (In thousands, except per share data) Performance based restricted stock units granted 722 276 616 Weighted-average grant-date fair value $ 48.45 $ 71.70 $ 36.13 Performance based restricted stock unit activity for the year ended December 31, 2019 was as follows: Shares Weighted-Average Grant-Date Fair Value (In thousands, except per share data) Outstanding at December 31, 2018 837 $ 45.41 Performance restricted stock units granted (at target) 722 $ 48.45 Performance restricted stock units vested (463 ) $ 45.44 Performance restricted stock units canceled (398 ) $ 54.10 Actual adjustment for certified performance periods 156 $ 57.38 Outstanding at December 31, 2019 854 $ 54.63 In June 2019, we modified the performance targets for certain performance-based restricted stock units issued at the beginning of 2019. The modification for these awards was classified as improbable to probable, and resulted in a lower grant date fair value at the time of modification compared to the original grant date and an overall decrease in stock-based compensation expense recognized for the year ended December 31, 2019 compared to the prior year period. Stock-based compensation for these modified awards, as well as other performance-based restricted stock units issued during the year, have further been adjusted to reflect our estimated achievement under the modified targets. The total fair value of performance based restricted stock vested for the years ended December 31, 2019 , 2018 and 2017 was $22.7 million , $45.1 million and $4.4 million , respectively, based on the price of our Class A common stock on the vesting date. Stock Options Stock option activity for the year ended December 31, 2019 was as follows: Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life (in Years) Aggregate Intrinsic Value (In thousands, except per share data and years) Outstanding at December 31, 2018 251 $ 20.63 Options exercised (70 ) 22.01 Outstanding at December 31, 2019 181 $ 20.09 2.38 $ 814 Exercisable at December 31, 2019 181 20.09 2.38 $ 814 Note 12—Employee Stock-Based Compensation (continued) The total intrinsic value of options exercised was $2.4 million , $36.2 million and $24.1 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. We have not issued any new stock option awards from our equity plan for the periods presented in these consolidated financial statements. Accordingly, any additional required disclosures with respect to fair value assumptions of our stock options have been omitted. As of December 31, 2019 , there was $40.9 million of aggregate unrecognized compensation cost related to unvested restricted stock units (including performance based awards) expected to be recognized in compensation expense in future periods, with a weighted-average period of 2.26 years. As of December 31, 2019 , we had no unvested stock options and thus, no |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax expense included in our consolidated statements of operations were as follows: Year Ended December 31, 2019 2018 2017 (In thousands) Current: Federal $ 11,914 $ 4,011 $ 15,545 State 1,790 894 (1,122 ) Foreign 604 443 368 Current income tax expense 14,308 5,348 14,791 Deferred: Federal 8,102 1,136 4,596 State (1,226 ) (1,370 ) (1,816 ) Deferred income tax expense (benefit) 6,876 (234 ) 2,780 Income tax expense $ 21,184 $ 5,114 $ 17,571 Income tax expense 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: Year Ended December 31, 2019 2018 2017 U.S. federal statutory tax rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal tax benefit 0.1 (0.5 ) (2.3 ) General business credits (2.1 ) (2.2 ) (2.8 ) Employee stock-based compensation (2.2 ) (17.1 ) (12.4 ) Tax Cuts and Jobs Act remeasurement — 0.2 (5.0 ) IRC 162(m) limitation 0.1 2.2 1.5 Other 0.6 0.5 3.0 Effective tax rate 17.5 % 4.1 % 17.0 % Due to the passage of the Tax Cuts and Jobs Act in 2017, we are now subject to an additional tax on the 'Global Intangible Low-Taxed Income' (GILTI) earned by our foreign subsidiary. Under FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income , an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. We have made a policy election to account for GILTI in the year the tax is incurred. For the year ended December 31, 2019 , the provision for GILTI expense was not material to our financial statements. Note 13—Income Taxes (continued) The increase in the effective tax rate for the year ended December 31, 2019 as compared to the year ended December 31, 2018 is primarily due to the decrease in benefit on the recognition of excess tax benefits from stock-based compensation and additional expenses related to state taxes, net of federal benefits. The tax effects of temporary difference that give rise to significant portions of our deferred tax assets and liabilities were as follows: December 31, 2019 2018 (In thousands) Deferred tax assets: Net operating loss carryforwards $ 8,002 $ 7,379 Stock-based compensation 5,820 8,007 Reserve for overdrawn accounts 4,456 3,838 Accrued liabilities 7,965 11,206 Lease liabilities 8,195 — Tax credit carryforwards 8,723 7,014 Capital loss carryforwards 341 — Gross deferred tax assets 43,502 37,444 Valuation allowance (341 ) — Total deferred tax assets $ 43,161 $ 37,444 Deferred tax liabilities: Internal-use software costs $ 29,382 $ 22,351 Property and equipment, net 2,240 2,803 Deferred expenses 4,114 4,909 Intangible assets 7,826 6,246 Gift card revenue 1,422 1,413 Lease right-of-use assets 6,524 — Other 388 900 Total deferred tax liabilities 51,896 38,622 Net deferred tax liabilities $ (8,735 ) $ (1,178 ) 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 December 31, 2019 , we provided a valuation allowance against our capital loss carryforwards as we believe it is more-likely-than-not that the tax benefits related to the capital loss carryforwards will not be realized. We are subject to examination by the Internal Revenue Service, or IRS, and various state tax authorities. We remain subject to examination of our federal income tax returns for the years ended December 31, 2016 through 2018 . 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 December 31, 2019 , we have federal net operating loss carryforwards of approximately $31.9 million , state net operating loss carryforwards of approximately $57.9 million , and capital loss carryforwards of approximately $1.5 million , which will be available to offset future income. If not used, the federal net operating losses will expire between 2021 and 2035. In regards to the state net operating loss carryforwards, approximately $31.7 million will expire between 2021 and 2039, while the remaining balance of approximately $26.2 million , does not expire and carries forward indefinitely. The capital loss carryforwards will expire between 2020 and 2023. The net operating losses are subject to an annual IRC Section 382 limitation which restricts their utilization against taxable income in future periods. In addition, we have state business tax credits of approximately $14.8 million that can be carried forward indefinitely and other state business tax credits of approximately $1.1 million that will expire between 2023 and 2027. Note 13—Income Taxes (continued) As of December 31, 2019 and 2018 , we had a liability of $8.3 million and $6.9 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: Year Ended December 31, 2019 2018 2017 (In thousands) Beginning balance $ 6,965 $ 5,560 $ 7,314 Increases related to positions taken during prior years 313 462 404 Increases related to positions taken during the current year 1,576 1,607 1,099 Decreases related to positions settled with tax authorities — — (1,865 ) Decreases due to a lapse of applicable statute of limitations (456 ) (664 ) (1,392 ) Ending balance $ 8,398 $ 6,965 $ 5,560 The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate $ 8,341 $ 6,918 $ 5,560 We recognized accrued interest and penalties related to unrecognized tax benefits for the years ended December 31, 2019 , 2018 and 2017 , of approximately $0.5 million , $0.3 million and $0.2 million , respectively. |
Earnings per Common Share
Earnings per Common Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share The calculation of basic and diluted EPS was as follows: Year Ended December 31, 2019 2018 2017 (In thousands, except per share data) Basic earnings per Class A common share Numerator: Net income $ 99,897 $ 118,703 $ 85,887 Denominator: Weighted-average Class A shares issued and outstanding 52,195 52,222 50,482 Basic earnings per Class A common share $ 1.91 $ 2.27 $ 1.70 Diluted earnings per Class A common share Numerator: Net income $ 99,897 $ 118,703 $ 85,887 Denominator: Weighted-average Class A shares issued and outstanding 52,195 52,222 50,482 Dilutive potential common shares: Stock options 114 327 809 Service based restricted stock units 361 1,135 1,445 Performance-based restricted stock units 440 796 462 Employee stock purchase plan 28 1 — Diluted weighted-average Class A shares issued and outstanding 53,138 54,481 53,198 Diluted earnings per Class A common share $ 1.88 $ 2.18 $ 1.61 For the periods presented, we excluded 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. Additionally, we have excluded any performance based restricted stock units for which the performance contingency has not been met as of the end of the period, or whereby the result of including such awards was anti-dilutive. The following table shows the weighted-average number of anti-dilutive shares excluded from the diluted EPS calculation: Note 14—Earnings per Common Share (continued) Year Ended December 31, 2019 2018 2017 (In thousands) Class A common stock Options to purchase Class A common stock — — 56 Service based restricted stock units 354 20 20 Performance-based restricted stock units 459 143 199 Total options, restricted and performance-based stock units 813 163 275 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements 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 . As of December 31, 2019 and 2018 , our assets and liabilities carried at fair value on a recurring basis were as follows: Level 1 Level 2 Level 3 Total Fair Value December 31, 2019 (In thousands) Assets Corporate bonds $ — $ 10,012 $ — $ 10,012 Agency bond securities — 20,000 — 20,000 Agency mortgage-backed securities — 211,033 — 211,033 Municipal bonds — 4,342 — 4,342 Asset-backed securities — 32,052 — 32,052 Total assets $ — $ 277,439 $ — $ 277,439 Liabilities Contingent consideration $ — $ — $ 9,300 $ 9,300 December 31, 2018 Assets Negotiable certificate of deposit $ — $ 15,000 $ — $ 15,000 Agency bond securities — 19,693 — 19,693 Agency mortgage-backed securities — 86,813 — 86,813 Municipal bonds — 483 — 483 Asset-backed securities — 79,194 — 79,194 Total assets $ — $ 201,183 $ — $ 201,183 Liabilities Contingent consideration $ — $ — $ 15,800 $ 15,800 We based the fair value of our fixed income securities held as of December 31, 2019 and 2018 on quoted prices in active markets for similar assets. We had no transfers between Level 1, Level 2 or Level 3 assets or liabilities during the year s ended December 31, 2019 and 2018 . Note 15—Fair Value Measurements (continued) The following table presents changes in our contingent consideration payable for the year s ended December 31, 2019 , 2018 and 2017 , which is categorized in Level 3 of the fair value hierarchy: Year Ended December 31, 2019 2018 2017 (In thousands) Balance, beginning of period $ 15,800 $ 17,358 $ 8,634 Issuance — — 21,500 Payments of contingent consideration (4,634 ) (4,856 ) (3,104 ) Change in fair value of contingent consideration (1,866 ) 3,298 (9,672 ) Balance, end of period $ 9,300 $ 15,800 $ 17,358 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
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, 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. Under the fair value hierarchy, our investment securities are classified as Level 2. 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. Our contingent consideration payable is included as a component of other accrued liabilities on our consolidated balance sheets and changes in fair value are recorded through operating expenses. Debt The fair value of our debt is based on borrowing rates currently required of loans with similar terms, maturity and credit risk. The carrying amount of our debt approximates fair value because the base interest rate charged varies with market conditions and the credit spread is commensurate with current market spreads for issuers of similar risk. The fair value of our debt is classified as a Level 2 liability in the fair value hierarchy. Note 16—Fair Value of Financial Instruments (continued) 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 December 31, 2019 and 2018 are presented in the table below. December 31, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Financial Assets Loans to bank customers, net of allowance $ 21,417 $ 19,563 $ 21,363 $ 21,088 Financial Liabilities Deposits $ 1,175,341 $ 1,175,298 $ 1,005,485 $ 1,005,435 Debt $ 35,000 $ 35,000 $ 58,705 $ 58,705 |
Concentrations of Credit Risk
Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2019 | |
Concentrations of Credit Risk [Abstract] | |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that subject us to concentration of credit risk consist primarily of unrestricted cash and cash equivalents, restricted cash, investment securities, accounts receivable, loans and settlement assets. We deposit our unrestricted cash and cash equivalents and our restricted cash with regional and national banking institutions that we periodically monitor and evaluate for creditworthiness. Credit risk for our investment securities is mitigated by the types of investment securities in our portfolio, which must comply with strict investment guidelines that we believe appropriately ensures the preservation of invested capital. Credit risk for our accounts receivable is concentrated with card issuing banks and our customers, and this risk is mitigated by the relatively short collection period and our large customer base. We do not require or maintain collateral for accounts receivable. We maintain reserves for uncollectible overdrawn accounts and uncollectible trade receivables. With respect to our loan portfolio (excluding secured credit cards), approximately 92.3% of our borrowers reside in the state of Utah and approximately 42.3% in the city of Provo. Consequently, this loan portfolio is susceptible to any adverse market or environmental conditions that may impact this specific geographic region. Credit risk associated with our secured credit card portfolio is mitigated by collateral provided by the borrower in the amount of their credit limit. Credit risk for our settlement assets is concentrated with our retail distributors and other business partners, which we frequently monitor. |
Defined Contribution Plan
Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2019 | |
Defined Contribution Plan [Abstract] | |
Defined Contribution Plan | Defined Contribution Plan On January 1, 2004, we established a defined contribution savings plan under Section 401(k) of the Internal Revenue Code. Employees who have attained at least 21 years of age are generally eligible to participate in the plan on the first day of the calendar month following the month in which they commence service with us. Participants may make pre-tax or after-tax contributions to the plan from their eligible earnings up to the statutorily prescribed annual limit on contributions under the code. We may contribute to the plan at the discretion of our board of directors. Currently, employer contributions amount to 50% of the first 5% of a participant's eligible compensation. Our contributions are allocated in the same manner as that of the participant’s elective contributions. We made contributions to the plan of $2.2 million , $1.7 million , and $1.1 million for the years ended December 31, 2019 , 2018 and 2017 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases We enter into operating lease agreements principally related to our corporate office locations. Currently, we do not enter into any financing lease agreements. Our leases have remaining lease terms of less than 1 year to approximately 6 years , most of which include renewal options of varying terms. We made a policy election to adopt the short term lease exemption for all leases with an initial term of 12 months or less. Significant Assumptions, Judgments and Policies Under Topic 842, we determine if an arrangement is or contains a lease at inception. ROU assets and liabilities are recognized at the lease commencement date based on the present value of remaining lease payments over the lease term. For this purpose, we consider only fixed payments stated in the leases at the time of commencement. Variable lease payments that are not based on a specified rate or index are expensed when incurred. Since an implicit interest rate for our leases cannot be determined under our contracts, we use an incremental borrowing rate based on the information available to us at the commencement date in determining the present value of our lease payments. Note 19—Leases (continued) Our incremental borrowing rate is based on a variety of considerations, including borrowing rates currently available to us for loans with similar terms and market participant information based on credit spreads for issuers of similar risk and credit rating. The ROU asset also reflects any lease payments made prior to commencement and is recorded net of any lease incentives received. Our ROU asset and liability reflects, as applicable, options to extend or terminate a lease when it is reasonably certain that we will exercise such options. We also made a policy election to combine our lease and non-lease components for each of our existing classes of leased assets. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Lease expense is recognized on a straight-line basis over the lease term. Our total lease expense amounted to approximately $11.3 million , $7.6 million , and $7.2 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Our lease expense is generally based on fixed payments stated within the agreements. Any variable payments for non-lease components and other short term lease expenses are not considered material. Supplemental Information Supplemental information related to our ROU assets and related lease liabilities is as follows: December 31, 2019 Cash paid for operating lease liabilities (in thousands) $ 8,850 Weighted average remaining lease term (years) 4.1 Weighted average discount rate 4.7 % Maturities of our operating lease liabilities as of December 31, 2019 is as follows: Operating Leases (In thousands) 2020 $ 9,846 2021 9,737 2022 8,734 2023 3,464 2024 3,464 Thereafter 1,732 36,977 Less: imputed interest (3,768 ) Total lease liabilities $ 33,209 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies At December 31, 2019 , the future minimum annual payments through various agreements with vendors and retail distributors was as follows: Vendor/Retail Distributor Commitments Year ending December 31, (In thousands) 2020 $ 17,008 2021 11,308 2022 3,425 2023 825 Total of future commitments $ 32,566 Note 20—Commitments and Contingencies (continued) In the event we terminate our processing services agreement for convenience, we are required to pay a single lump sum equal to any minimum payments remaining on the date of termination. These future minimum obligations are included in our vendor and retail distributor commitments. In addition to the above contractual obligations, our definitive agreement to acquire all of the equity interests of UniRush provides for a minimum $4 million annual earn-out payment for five years following the closing, ending in February 2022. As of December 31, 2019 , the estimated fair value of our remaining earn-out payments amounted to $9.3 million . Litigation and Claims In the ordinary course of business, we are a party to various legal proceedings, including, from time to time, actions which are asserted to be maintainable as class action suits. We review these actions on an ongoing basis to determine whether it is probable and estimable that a loss has occurred and use that information when making accrual and disclosure decisions. We have provided reserves where necessary for all claims and, based on current knowledge and in part upon the advice of legal counsel, all matters are believed to be adequately covered by insurance, or, if not covered, we do not expect the outcome in any legal proceedings, individually or collectively, to have a material adverse impact on our financial condition or results of operations. On December 18, 2019, an alleged class action entitled Koffsmon v. Green Dot Corp., et al., No. 19-cv-10701-DDP-E, was filed in the United States District Court for the Central District of California, against us and two of our officers. The suit asserts purported claims under Sections 10(b) and 20(a) of the Exchange Act for allegedly misleading statements regarding our business strategy. Plaintiff alleges that defendants made statements that were misleading because they allegedly failed to disclose details regarding our customer acquisition strategy and its impact on our financial performance. The suit is purportedly brought on behalf of purchasers of our securities between May 9, 2018 and November 7, 2019, and seeks compensatory damages, fees and costs. On February 18, 2020, a shareholder derivative suit and securities class action entitled Hellman v. Streit, et al, No. 20-cv-01572-SVW-PVC was filed in United States District Court for the Central District of California, against us and certain of our officers and directors. The suit avers purported breach of fiduciary duty and unjust enrichment claims, as well as claims under Sections 10(b), 14(a) and 20(a) of the Exchange Act, on the basis of the same wrongdoing alleged in the first lawsuit described above. The suit does not define the purported class allegedly damaged. These cases have been related. The defendants have not yet responded to the complaints in these matters. Due to the inherent uncertainties of litigation, we cannot accurately predict the ultimate outcome of this matter. We are unable at this time to determine whether the outcome of the litigation would have a material impact on our results of operations, financial condition or cash flows. The third and final performance period under an earn-out provision for the acquisition of our tax refund processing business ended on June 30, 2017. We believed that our tax refund processing business did not achieve its earn-out performance target for the fiscal year performance period based on the provisions of the contract and therefore, the total potential payout of $26 million had not been accrued in any period subsequent to June 30, 2017. We were in the process of resolving the final earn-out calculation with the selling shareholders with the assistance of a neutral third party pursuant to the terms of the contract. Prior to the final outcome of that process, we and the sellers mutually agreed to a payment of $13.5 million . This payment was made in October of 2018 and is reflected as a component of other general and administrative expenses on our consolidated income statement for the year ended December 31, 2018. Other Matters 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. 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 Note 20—Commitments and Contingencies (continued) 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 5 — Accounts Receivable . |
Significant Customer Concentrat
Significant Customer Concentration | 12 Months Ended |
Dec. 31, 2019 | |
Significant Customer Concentrations [Abstract] | |
Significant Retailer Concentration | Significant Retailer 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. Revenue Concentrations Revenues derived from our products sold at retail distributors constituting greater than 10% of our total operating revenues were as follows: Year Ended December 31, 2019 2018 2017 Walmart 34% 36% 40% No other retail distributor or partner made up greater than 10% of our total operating revenues for the years ended December 31, 2019 , 2018 , and 2017 . Settlement Asset Concentrations Settlement assets derived from our products sold at retail distributors constituting greater than 10% of the settlement assets outstanding on our consolidated balance sheets were as follows: December 31, 2019 December 31, 2018 Walmart 13% 18% |
Regulatory Requirements
Regulatory Requirements | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Requirements [Abstract] | |
Regulatory Requirements | Regulatory Requirements Our subsidiary bank, Green Dot Bank, is a member bank of the Federal Reserve System and our primary regulator is the Federal Reserve Board. We and Green Dot Bank are subject to commitments that we have made to the Federal Reserve Board and the Utah Department of Financial Institutions. These commitments require Green Dot Bank to maintain cash and/or cash equivalents in an amount equal to no less than 100% of insured deposits generated by Green Dot Bank related to GPR cards, a subset of its total deposits. In addition, we and Green Dot Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory actions by regulators that, if undertaken, could have a direct material effect on our financial statements. Under capital adequacy guidelines, we and Green Dot Bank must meet specific capital guidelines that involve quantitative measures of the assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Note 22—Regulatory Requirements (continued) As of December 31, 2019 and 2018 , we and Green Dot Bank were categorized as "well capitalized" under applicable regulatory standards. There were no conditions or events since December 31, 2019 which management believes would have caused us or Green Dot Bank not to be considered "well capitalized." Our capital ratios and related regulatory requirements were as follows: December 31, 2019 Amount Ratio Regulatory Minimum "Well-capitalized" Minimum (In thousands, except ratios) Green Dot Corporation: Tier 1 leverage $ 400,445 22.2 % 4.0 % n/a Common equity Tier 1 capital $ 400,445 70.5 % 4.5 % n/a Tier 1 capital $ 400,445 70.5 % 6.0 % 6.0 % Total risk-based capital $ 404,469 71.2 % 8.0 % 10.0 % Green Dot Bank: Tier 1 leverage $ 204,141 13.9 % 4.0 % 5.0 % Common equity Tier 1 capital $ 204,141 82.8 % 4.5 % 6.5 % Tier 1 capital $ 204,141 82.8 % 6.0 % 8.0 % Total risk-based capital $ 205,548 83.4 % 8.0 % 10.0 % December 31, 2018 Amount Ratio Regulatory Minimum "Well-capitalized" Minimum (In thousands, except ratios) Green Dot Corporation: Tier 1 leverage $ 353,047 20.1 % 4.0 % n/a Common equity Tier 1 capital $ 353,047 88.8 % 4.5 % n/a Tier 1 capital $ 353,047 88.8 % 6.0 % 6.0 % Total risk-based capital $ 357,092 89.8 % 8.0 % 10.0 % Green Dot Bank: Tier 1 leverage $ 172,518 11.7 % 4.0 % 5.0 % Common equity Tier 1 capital $ 172,518 100.8 % 4.5 % 6.5 % Tier 1 capital $ 172,518 100.8 % 6.0 % 8.0 % Total risk-based capital $ 173,838 101.5 % 8.0 % 10.0 % |
Selected Unaudited Quarterly Fi
Selected Unaudited Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Unaudited Quarterly Financial Information | Selected Unaudited Quarterly Financial Information The following tables set forth a summary of our quarterly financial information for each of the four quarters in 2019 and 2018 : 2019 Q4 Q3 Q2 Q1 (In thousands, except per share data) Total operating revenues $ 249,307 $ 240,448 $ 278,326 $ 340,514 Total operating expenses 249,550 242,635 234,363 259,129 Operating (loss) income (243 ) (2,187 ) 43,963 81,385 Interest expense, net 89 112 165 1,471 (Loss) income before income taxes (332 ) (2,299 ) 43,798 79,914 Income tax (benefit) expense (2,025 ) (1,768 ) 9,106 15,871 Net income (loss) $ 1,693 $ (531 ) $ 34,692 $ 64,043 Earnings (loss) per common share Basic Class A common stock $ 0.03 $ (0.01 ) $ 0.66 $ 1.21 Diluted Class A common stock $ 0.03 $ (0.01 ) $ 0.64 $ 1.17 2018 Q4 Q3 Q2 Q1 (In thousands, except per share data) Total operating revenues $ 245,108 $ 236,333 $ 263,792 $ 320,342 Total operating expenses 229,712 235,662 231,168 238,618 Operating income 15,396 671 32,624 81,724 Interest expense, net 3,067 991 1,280 1,260 Income before income taxes 12,329 (320 ) 31,344 80,464 Income tax (benefit) expense (1,943 ) (4,893 ) 1,517 10,433 Net income $ 14,272 $ 4,573 $ 29,827 $ 70,031 Earnings per common share Basic Class A common stock $ 0.27 $ 0.09 $ 0.57 $ 1.36 Diluted Class A common stock $ 0.26 $ 0.08 $ 0.55 $ 1.29 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our operations are comprised of two reportable segments: 1) Account Services and 2) 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 deposit account programs, such as prepaid cards, debit cards, consumer and small business checking accounts, secured credit cards, payroll debit cards and gift cards. These deposit account programs are marketed under several of our leading consumer brand names and under the brand names of our Banking as a Service, or "BaaS," partners. The Processing and Settlement Services segment consists of revenues and expenses derived from our products and services that specialize in facilitating the movement of cash on behalf of consumers and businesses, such as consumer cash processing services, wage disbursements and tax refund processing services. The Corporate and Other segment primarily consists of eliminations of intersegment revenues and expenses, unallocated corporate expenses, depreciation and amortization, 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 24—Segment Information (continued) The following tables present certain financial information for each of our reportable segments for the periods then ended: Year Ended December 31, 2019 Account Services Processing and Settlement Services Corporate and Other Total (In thousands) Operating revenues $ 842,967 $ 296,721 $ (31,093 ) $ 1,108,595 Operating expenses 696,409 202,713 86,555 985,677 Operating income $ 146,558 $ 94,008 $ (117,648 ) $ 122,918 Year Ended December 31, 2018 Account Services Processing and Settlement Services Corporate and Other Total (In thousands) Operating revenues $ 843,905 $ 253,360 $ (31,690 ) $ 1,065,575 Operating expenses 643,714 179,037 112,409 935,160 Operating income $ 200,191 $ 74,323 $ (144,099 ) $ 130,415 Year Ended December 31, 2017 Account Services Processing and Settlement Services Corporate and Other Total (In thousands) Operating revenues $ 703,386 $ 229,133 $ (31,396 ) $ 901,123 Operating expenses 549,858 165,961 76,008 791,827 Operating income $ 153,528 $ 63,172 $ (107,404 ) $ 109,296 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 29, 2019, we entered into the 2020 Amended and Restated Walmart MoneyCard Program Agreement (the “Program Agreement”) with Walmart Inc. and certain of Walmart’s subsidiaries, which provides for us to continue to serve as the issuing bank and program manager for the Walmart MoneyCard suite of reloadable debit card products. The term of the Program Agreement began on January 1, 2020 and expires on January 31, 2027, with an automatic renewal clause for an additional period of one year , subject to certain terms as discussed in the Program Agreement. On January 2, 2020, we effectuated our agreement with Walmart to jointly establish a new fintech accelerator under the name TailFin Labs, LLC (“TailFin Labs”), with a mission to develop innovative products, services and technologies that sit at the intersection of retail shopping and consumer financial services. The entity is majority-owned by Walmart and is expected to focus on developing tech-enabled solutions to integrate omni-channel retail shopping and financial services. We own a 20% equity interest in the newly formed entity, in exchange for capital contributions of $35.0 million per year over the next 5 years . We will account for our investment in TailFin Labs under the equity method of accounting. Any economic benefits derived from products or services developed by TailFin Labs will be negotiated on a case-by-case basis between the parties. As an incentive for Walmart and us to work together to achieve growth across all current and future mutual lines of business that we are engaged, on January 2, 2020, we issued Walmart, in a private placement, 975,000 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation Our consolidated financial statements include the results of Green Dot Corporation and our wholly-owned subsidiaries. We prepared the accompanying consolidated financial statements in accordance with generally accepted accounting principles in the United States of America, or GAAP. We eliminate all significant intercompany balances and transactions on consolidation. We include the results of operations of acquired companies from the date of acquisition. Reclassifications Beginning with the first quarter of 2019, we present net interest income generated from operations at Green Dot Bank, our subsidiary bank, as a component of our total operating revenues. Prior year amounts, formerly reported below operating income on our consolidated statements of operations, have been reclassified to conform to our current year presentation on our consolidated statements of operations. This reclassification changed our previously reported total operating revenues, but had no impact on our previously reported consolidated net income or cash flows for any comparative periods presented. Net interest income at Green Dot Bank has become an increasingly important revenue component as Green Dot Bank's ability to invest its growing customer balances and generate interest income is one of several unique advantages we have as both a leading financial technology company and a federally regulated bank. Net interest income or expense generated outside of Green Dot Bank continues to be reported below operating income on our consolidated statements of operations. |
Reclassifications | Reclassifications Beginning with the first quarter of 2019, we present net interest income generated from operations at Green Dot Bank, our subsidiary bank, as a component of our total operating revenues. Prior year amounts, formerly reported below operating income on our consolidated statements of operations, have been reclassified to conform to our current year presentation on our consolidated statements of operations. This reclassification changed our previously reported total operating revenues, but had no impact on our previously reported consolidated net income or cash flows for any comparative periods presented. Net interest income at Green Dot Bank has become an increasingly important revenue component as Green Dot Bank's ability to invest its growing customer balances and generate interest income is one of several unique advantages we have as both a leading financial technology company and a federally regulated bank. Net interest income or expense generated outside of Green Dot Bank continues to be reported below operating income on our consolidated statements of operations. |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements, including the accompanying notes. We base our estimates and assumptions on historical factors, current circumstances, and the experience and judgment of management. We evaluate our estimates and assumptions on an ongoing basis. Actual results could differ from those estimates. |
Unrestricted Cash and Cash Equivalents | Unrestricted Cash and Cash Equivalents We consider all unrestricted highly liquid investments with an original maturity of three months or less to be unrestricted cash and cash equivalents. |
Investment Securities | Investment Securities Our investment portfolio is primarily comprised of fixed income securities. We classify these securities as available-for-sale and report them at fair value with the related unrealized gains and losses, net of tax, included in accumulated other comprehensive income, a component of stockholders’ equity. We classify investment securities with maturities less than or equal to 365 days as current assets. Note 2—Summary of Significant Accounting Policies (continued) We regularly evaluate each fixed income security where the value has declined below amortized cost to assess whether the decline in fair value is other-than-temporary. In determining whether an impairment is other-than-temporary, we consider the severity and duration of the decline in fair value, the length of time expected for recovery, the financial condition of the issuer, and other qualitative factors, as well as whether we either plan to sell the security or it is more likely-than-not that we will be required to sell the security before recovery of its amortized cost. If the impairment of the investment security is credit-related, an other-than-temporary impairment is recorded in earnings. We recognize non-credit-related impairment in accumulated other comprehensive income. If we intend to sell an investment security or believe we will more-likely-than-not be required to sell a security, we record the full amount of the impairment as an other-than-temporary impairment. Interest on fixed income securities, including amortization of premiums and accretion of discounts, is included in interest income. |
Obligations to Customers and Settlement Assets and Obligations | Obligations to Customers and Settlement Assets and Obligations At the point of sale, our retail distributors collect customer funds for purchases of new cards and balance reloads and then remit these funds directly to the banks that issue our cards. Our retail distributors’ remittance of these funds takes an average of two business days. Settlement assets represent the amounts due from our retail distributors and other partners for customer funds collected at the point of sale that have not yet been received by our subsidiary bank. Also included in this balance are payroll amounts funded in advance (up to two days early) to certain cardholders who are eligible to participate in our early direct deposit programs. Obligations to customers represent customer funds collected from (or to be remitted by) our retail distributors for which the underlying products have not been activated. Once the underlying products have been activated, the customer funds are reclassified as deposits in a bank account established for the benefit of the customer. Settlement obligations represent the customer funds received by our subsidiary bank that are due to third-party card issuing banks upon activation. |
Accounts Receivable, net | Accounts Receivable, net Accounts receivable is comprised principally of receivables due from card issuing banks, overdrawn account balances due from cardholders, trade accounts receivable, fee advances and other receivables. We record accounts receivable net of reserves for estimated uncollectible accounts. Receivables due from card issuing banks primarily represent revenue-related funds held at the third-party card issuing banks related to our network branded programs that have yet to be remitted to us. These receivables are generally collected within a short period of time based on the remittance terms in our agreements with the third-party card issuing banks. Fee advances represent short-term advances to in-person tax return preparation companies made prior to and during tax season. These advances are collateralized by their clients' tax preparation fees and are generally collected within a short period of time as the in-person tax preparation companies begin preparing and processing their clients' tax refunds. Overdrawn Account Balances Due from Cardholders and Reserve for Uncollectible Overdrawn Accounts Our cardholder accounts may become overdrawn as a result of maintenance fee assessments or from purchase transactions that we honor, in excess of the funds in a cardholder’s account. We are exposed to losses from any unrecovered overdrawn account balances. We establish a reserve for uncollectible overdrawn accounts. We classify overdrawn accounts into age groups based on the number of days that have elapsed since an account last had activity, such as a purchase, ATM transaction or maintenance fee assessment. We calculate a reserve factor for each age group based on the average recovery rate for the most recent six months . These factors are applied to these age groups to estimate our overall reserve. When more than 90 days have passed without activity in an account, we write off the full amount of the overdrawn account balance. We include our provision for uncollectible overdrawn accounts related to maintenance fees and purchase transactions as an offset to card revenues and other fees and in other general and administrative expenses, respectively, in the accompanying consolidated statements of operations. |
Restricted Cash | Restricted Cash As of December 31, 2019 and 2018 , restricted cash amounted to $2.7 million and $0.5 million , respectively. Restricted cash principally relates to pre-funding obligations for cardholder accounts at third-party issuing banks. |
Loans to Bank Customers | Loans to Bank Customers We report loans measured at historical cost at their outstanding principal balances, net of any charge-offs, and for purchased loans, net of any unaccreted discounts. We recognize interest income as it is earned. Nonperforming Loans Nonperforming loans generally include loans that have been placed on nonaccrual status. We generally place loans on nonaccrual status when they are past due 90 days or more. We reverse the related accrued interest receivable and apply interest collections on nonaccrual loans as principal reductions; otherwise, we credit such collections to interest income when received. These loans may be restored to accrual status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected. For our secured credit card portfolio, when an account is past due 90 days, collateral deposits are applied against outstanding credit card balances. Any balance in excess of the collateral balance is charged off at 180 days. We consider a loan to be impaired when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. Once we determine a loan to be impaired, we measure the impairment based on the present value of the expected future cash flows discounted at the loan's effective interest rate. We may also measure impairment based on observable market prices, or for loans that are solely dependent on the collateral for repayment, the estimated fair value of the collateral less estimated costs to sell. If the recorded investment in impaired loans exceeds this amount, we establish a specific allowance as a component of the allowance for loan losses or by adjusting an existing valuation allowance for the impaired loan. Allowance for Loan Losses We establish an allowance for loan losses to account for estimated credit losses inherent in our loan portfolio, including our secured credit cards. For each portfolio of loans, our estimate of inherent losses is separately calculated on an aggregate basis for groups of loans and are considered to have similar credit characteristics and risk of loss. We analyze historical loss rates for these groups to determine a loss rate for each group of loans. We then adjust the rates for qualitative factors which in our judgment affect the expected inherent losses. Qualitative considerations include, but are not limited to, prevailing economic or market conditions, changes in the loan grading and underwriting process, changes in the estimated value of the underlying collateral for collateral dependent loans, delinquency and nonaccrual status, problem loan trends, and geographic concentrations. We separately establish specific allowances for impaired loans based on the present value of changes in cash flows expected to be collected, or for impaired loans that are considered collateral dependent, the estimated fair value of the collateral. |
Property and Equipment | Property and Equipment We carry our property and equipment at cost less accumulated depreciation and amortization. We generally compute depreciation on property and equipment using the straight-line method over the estimated useful lives of the assets, except for land, which is not depreciated. We generally compute amortization on tenant improvements using the straight-line method over the shorter of the related lease term or estimated useful lives of the improvements. We expense expenditures for maintenance and repairs as incurred. We capitalize certain internal and external costs incurred to develop internal-use software during the application development stage. We also capitalize the cost of specified upgrades and enhancements to internal-use software that result in additional functionality. Once a development project is substantially complete and the software is ready for its intended use, we begin depreciating these costs on a straight-line basis over the internal-use software’s estimated useful life. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is the purchase premium after adjusting for the fair value of net assets acquired. Goodwill is not amortized but is reviewed for potential impairment on an annual basis, or when events or circumstances indicate a potential impairment, at the reporting unit level. A reporting unit, as defined under applicable accounting guidance, is an operating segment or one level below an operating segment, referred to as a component. We may in any given period bypass the qualitative assessment and proceed directly to a two-step method to assess and measure impairment of the reporting unit's goodwill. We first assess qualitative factors to determine whether it is more likely-than-not (i.e., a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying value. This step serves as the basis for determining whether it is necessary to perform the two-step quantitative impairment test. The first step of the quantitative impairment test involves a comparison of the estimated fair value of each reporting unit to its carrying amount, including goodwill. If the estimated fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired; however, if the carrying amount of the reporting unit exceeds its estimated fair value, then the second step of the quantitative impairment test must be performed. The second step compares the implied fair value of the reporting unit’s goodwill with its carrying amount to measure the amount of impairment loss, if any. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. For intangible assets subject to amortization, we recognize an impairment loss if the carrying amount of the intangible asset is not recoverable and exceeds its estimated fair value. The carrying amount of the intangible asset is considered not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset. No impairment charges were recognized related to goodwill or intangible assets for the years ended December 31, 2019 , 2018 and 2017 . Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives, which is our best estimate of the pattern of economic benefit, based on legal, contractual, and other provisions. The estimated useful lives of the intangible assets, which consist primarily of customer relationships and trade names, range from 3 - 15 years . |
Amounts Due to Card Issuing Banks for Overdrawn Accounts | Amounts Due to Card Issuing Banks for Overdrawn Accounts Third-party card issuing banks fund overdrawn cardholder account balances on our behalf. Amounts funded are due from us to the card issuing banks based on terms specified in the agreements with the card issuing banks. Generally, we expect to settle these obligations within two |
Fair Value | Fair Value Under applicable accounting guidance, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability. As such, fair value reflects an exit price 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. The following describes the three-level hierarchy: Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain U.S. Treasury securities that are highly liquid and are actively traded in over-the-counter markets. Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include fixed income securities with quoted prices that are traded less frequently than exchange-traded instruments. This category generally includes U.S. government and agency mortgage-backed fixed income securities and corporate fixed income securities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the overall fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments for which the determination of fair value requires significant management judgment or estimation. The fair value for such assets and liabilities is generally determined using pricing models, market comparables, discounted cash flow methodologies or similar techniques that incorporate the assumptions a market participant would use in pricing the asset or liability. This category generally includes certain private equity investments and certain asset-backed securities. |
Revenue Recognition | Revenue Recognition Our operating revenues consist of card revenues and other fees, processing and settlement service revenues and interchange revenues. The core principle of the recent revenue standard is that these revenues will be recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services, as determined under a five-step process. A description of our principal revenue generating activities is as follows: Card Revenues and Other Fees Card revenues and other fees consist of monthly maintenance fees, new card fees, ATM fees, and other card revenues. We earn these fees based upon the underlying terms and conditions with each of our cardholders that obligate us to stand ready to provide account services to each of our cardholders over the contract term. Agreements with our cardholders are considered daily service contracts as they are not fixed in duration. Also included in card revenues and other fees are program management service fees earned from our BaaS partners for cardholder programs we manage on their behalf. We charge maintenance fees on a monthly basis pursuant to the terms and conditions in the applicable cardholder agreements. We recognize monthly maintenance fees ratably over each day in the monthly bill cycle in which the fee is assessed, which represents the period our cardholders receive the benefits of our services and our performance obligation is satisfied. We charge new card fees when a consumer purchases a new card in a retail store. The new card fee provides our cardholders a material right and accordingly, we defer and recognize new card fee revenues on a straight-line basis over our average card lifetime, which is currently less than one year for our GPR cards and gift cards. For GPR cards, average card lifetime is determined based on recent historical data using the period from sale (or activation) of the card through the date of last positive balance. We reassess average card lifetime quarterly. We report the unearned portion of new card fees as a component of deferred revenue in our consolidated balance sheets. See Contract Balances discussed in Note 3 — Revenues , for further information. Note 2—Summary of Significant Accounting Policies (continued) We charge ATM fees to cardholders when they withdraw money at certain ATMs in accordance with the terms and conditions in our cardholder agreements. We recognize ATM fees when the withdrawal is made by the cardholder, which is the point in time our performance obligation is satisfied and service is performed. Since our cardholder agreements are considered daily service contracts, our performance obligations for these types of transactional based fees are satisfied on a daily basis, or as each transaction occurs. Other revenues consist primarily of revenue associated with our gift card program, transaction-based fees and fees associated with optional products or services, which we offer our cardholders at their election. Since our performance obligations are settled daily, we recognize most of these fees at the point in time the transactions occur which is when the underlying performance obligation is satisfied. In the case of our gift card program, we record the related revenues using the redemption method. Substantially all our fees are collected from our cardholders at the time the fees are assessed and debited from their account balance. Program management fees from our BaaS partners are earned on a monthly basis, pursuant to the terms of each program management agreement. Our agreements are generally multi-year arrangements of varying lengths. We recognize these fees as our program management services are rendered each month. Processing and Settlement Service Revenues Our processing and settlement services consist of cash transfer revenues, Simply Paid disbursement revenues, and tax refund processing service revenues. We generate cash transfer revenues when consumers purchase our cash transfer products (reload services) in a retail store. Our reload services are subject to the same terms and conditions in each of the applicable cardholder agreements as discussed above. We recognize these revenues at the point in time the reload services are completed. Similarly, we earn Simply Paid disbursement fees from our business partners as payment disbursements are made. We earn tax refund processing service revenues when a customer of a third-party tax preparation company chooses to pay their tax preparation fee through the use of our tax refund processing services. Revenues we earn from these services are generated from our contractual relationships with the tax software transmitters. These contracts may be multi-year agreements and vary in length, however, our underlying promise obligates us to process each refund transfer on a transaction by transaction basis as elected by the taxpayer. Accordingly, we recognize tax refund processing service revenues at the point in time we satisfy our performance obligation by remitting each taxpayer’s proceeds from his or her tax return. Interchange We earn interchange revenues from fees remitted by the merchant’s bank, which are based on rates established by the payment networks, such as Visa and MasterCard, when account holders make purchase transactions using our card products and services. We recognize interchange revenues at the point in time the transactions occur, as our performance obligation is satisfied. Principal vs Agent For all our significant revenue-generating arrangements, we record revenues on a gross basis except for our tax refund processing service revenues which are recorded on a net basis. |
Sales and Marketing Expenses | Sales and Marketing Expenses Sales and marketing expenses primarily consist of sales commissions, advertising and marketing expenses, and the costs of manufacturing and distributing card packages, placards, promotional materials to our retail distributors’ locations and personalized GPR cards to consumers who have activated their cards. We pay our retail distributors, and brokers commissions based on sales of our prepaid debit cards and cash transfer products in their stores. We defer and expense commissions related to new cards sales ratably over the average card lifetime, which is currently less than one year for our GPR and gift cards. Absent a new card fee, we recognize the cost of the related commissions immediately. We recognize the cost of commissions related to cash transfer products when the cash transfer transactions are completed. We recognize costs for the production of advertising as incurred. The cost of media advertising is recorded when the advertising first takes place. We record the costs associated with Note 2—Summary of Significant Accounting Policies (continued) card packages and placards as prepaid expenses, and we record the costs associated with personalized GPR cards as deferred expenses. We recognize the prepaid cost of card packages and placards over the related sales period, and we amortize the deferred cost of personalized GPR cards, when activated, over the average card lifetime. |
Employee Stock-Based Compensation | Employee Stock-Based Compensation We record employee stock-based compensation expense based on the grant-date fair value of the award. For stock options and stock purchases under our employee stock purchase plan, or ESPP, we base compensation expense on fair values estimated at the grant date using the Black-Scholes option-pricing model. For stock awards, including restricted stock units, we base compensation expense on the fair value of our common stock at the grant date. We recognize compensation expense for awards with only service conditions that have graded vesting schedules on a straight-line basis over the vesting period of the award. Vesting is based upon continued service to our company and we account for any forfeitures as they occur. We have issued performance based and market based restricted stock units to our executive officers and employees. For performance-based awards, we recognize compensation cost for the restricted stock units if and when we conclude it is probable that the performance metrics will be satisfied, over the requisite service period based on the grant-date fair value of the stock. We reassess the probability of vesting at each reporting period and adjust compensation expense based on the probability assessment. For market based restricted stock units, we base compensation expense on the fair value estimated at the date of grant using a Monte Carlo simulation or similar lattice model. We recognize compensation expense over the requisite service period regardless of the market condition being satisfied, provided that the requisite service has been rendered, since the estimated grant date fair value incorporates the probability of outcomes that the market condition will be achieved. Under our retirement policy adopted in April 2018, following a qualified retirement, any service-based requirement for unvested stock awards held by the eligible employee is eliminated. Accordingly, the related compensation expense is recognized immediately for qualifying awards granted to eligible employees, or in the case of ineligible employees who later become eligible under the retirement policy, over the period from the grant date to the date a qualifying retirement is achieved, if earlier than the standard vesting dates. Performance-based restricted stock units issued to retirement eligible employees remain subject to the stock awards’ annual performance targets and the expense will be adjusted accordingly based expected achievement. |
Income Taxes | Income Taxes Our income tax expense is comprised of current and deferred income tax expense. Current income tax expense approximates taxes to be paid or refunded for the current period. Deferred income tax expense results from the changes in deferred tax assets and liabilities during the periods. These gross deferred tax assets and liabilities represent decreases or increases in taxes expected to be paid in the future because of future reversals of temporary differences between the basis of assets and liabilities as measured by tax laws and their basis as reported in our consolidated financial statements. We also recognize deferred tax assets for tax attributes such as net operating loss carryforwards and tax credit carryforwards. We record valuation allowances to reduce deferred tax assets to the amounts we conclude are more likely-than-not to be realized in the foreseeable future. We recognize and measure income tax benefits based upon a two-step model: 1) a tax position must be more likely-than-not to be sustained based solely on its technical merits in order to be recognized, and 2) the benefit is measured as the largest dollar amount of that position that is more likely-than-not to be sustained upon settlement. The difference between the benefit recognized for a position and the tax benefit claimed on a tax return is referred to as an unrecognized tax benefit. We accrue income tax related interest and penalties, if applicable, within income tax expense. Note 2—Summary of Significant Accounting Policies (continued) |
Earnings Per Common Share | Earnings Per Common Share We currently have only one class of common stock outstanding. Basic EPS is calculated by dividing net income by the weighted-average common shares issued and outstanding. Diluted EPS is calculated dividing net income by the weighted-average number of the common shares issued and outstanding for each period plus amounts representing the dilutive effect of outstanding stock options, restricted stock units (including performance based restricted stock units), and shares to be purchased under our employee stock purchase plan. We calculate dilutive potential common shares using the treasury stock method. We exclude the effects of restricted stock units and stock options from the computation of diluted EPS in periods in which the effect would be anti-dilutive. Additionally, we exclude any performance based restricted stock units for which the performance contingency has not been met as of the end of the period. |
Regulatory Matters and Capital Adequacy | Regulatory Matters and Capital Adequacy As a bank holding company, we are subject to comprehensive supervision and examination by the Federal Reserve Board and must comply with applicable regulations, including minimum capital and leverage requirements. If we fail to comply with any of these requirements, we may become subject to formal or informal enforcement actions, proceedings, or investigations, which could result in regulatory orders, restrictions on our business operations or requirements to take corrective actions, which may, individually or in the aggregate, affect our results of operations and restrict our ability to grow. If we fail to comply with the applicable capital and leverage requirements, or if our subsidiary bank fails to comply with its applicable capital and leverage requirements, the Federal Reserve Board may limit our or Green Dot Bank's ability to pay dividends. In addition, as a bank holding company and a financial holding company, we are generally prohibited from engaging, directly or indirectly, in any activities other than those permissible for bank holding companies and financial holding companies. This restriction might limit our ability to pursue future business opportunities which we might otherwise consider but which might fall outside the scope of permissible activities. We may also be required to serve as a “source of strength” to Green Dot Bank if it becomes less than adequately capitalized. |
Recently Adopted Accounting Pronouncements | Recent Accounting Pronouncements Recently issued accounting pronouncements not yet adopted In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other ("ASU 2017-04") : Simplifying the Test for Goodwill Impairment , which simplifies the existing two-step guidance for goodwill impairment testing by eliminating the second step resulting in a write-down to goodwill equal to the initial amount of impairment determined in step one. The ASU is to be applied prospectively for reporting periods beginning after December 15, 2019. We adopted the new accounting pronouncement upon its effective date on January 1, 2020, the effect of which did not have any impact to our financial statements upon initial adoption. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13") that requires financial assets measured at amortized cost be presented at the net amount expected to be collected. Credit losses on available-for-sale debt securities should be recorded through an allowance for credit losses limited by the amount that the fair value is less than amortized cost. The amendments of ASU 2016-13 eliminate the probable incurred loss recognition model under current GAAP and introduces a forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information, and reasonable and supportable forecasts. The new ASU also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models, and methods for estimating expected credit losses. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We adopted the new accounting pronouncement upon its effective date on January 1, 2020 on a prospective basis and have substantially completed our assessment of the impact on our consolidated financial statements. While we do not expect a material quantitative effect, if any, to our consolidated financial statements upon adoption, we will provide expanded credit loss disclosures and any final quantitative impact as required beginning in the first quarter of 2020. Note 2—Summary of Significant Accounting Policies (continued) Recently adopted accounting pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02") in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous GAAP. The guidance has been modified through additional technical corrections since its original issuance, including optional transition relief as provided for under ASU No. 2018-11, Leases (Topic 842): Targeted Improvements . ASU 2016-02 requires that a lessee should recognize a liability to make lease payments and a right-of-use ("ROU") asset representing its right to use the underlying asset for leases with a term greater than 12 months. We adopted the new lease standard effective January 1, 2019, electing the optional transition method that permits the new standard to be applied prospectively, as of the effective date, without restating comparative periods presented. As a result, prior periods continue to be reported in accordance with our historical lease accounting policies. We elected the package of practical expedients under the new standard, which allows us to not reassess 1) whether any expired or existing contracts as of the adoption date are or contain a lease, 2) lease classification for any expired or existing leases as of the adoption date and 3) initial direct costs for any existing leases as of the adoption date. We did not elect to use the hindsight practical expedient under the new standard when determining the lease term and assessing any impairment of ROU assets. The adoption of ASU 2016-02 resulted in the recognition of operating ROU assets of approximately $17.9 million on our consolidated balance sheet and a corresponding lease liability of approximately $25.1 million . The difference between the lease assets and liabilities recognized on our consolidated balance sheets primarily relates to accrued rent on existing leases that were offset against the ROU assets upon adoption. The adoption of the standard did not have any impact on our consolidated statements of operations, comprehensive income, changes in stockholders’ equity and cash flows. See Note 19 — Leases , for discussion on updates to our lease accounting policies and additional disclosures. In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ("ASU 2018-15") , which amends ASC 350-40 to address implementation costs incurred in a cloud computing arrangement (CCA) that is a service contract. ASU 2018-15 aligns the accounting for costs incurred to implement a CCA that is a service arrangement with the guidance on capitalizing costs associated with developing or obtaining internal-use software. As a result, certain implementation costs incurred by companies under hosting arrangements will be deferred and amortized. We adopted the standard effective January 1, 2019 on a prospective basis, the effect of which did not have a material impact on our consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment | The estimated useful lives of the respective classes of assets are as follows: Land N/A Building 30 years Computer equipment, furniture and office equipment 3-10 years Computer software purchased 3 years Capitalized internal-use software 3-7 years Tenant improvements Shorter of the useful life or the lease term Property and equipment consisted of the following: December 31, 2019 2018 (In thousands) Land $ 205 $ 205 Building 605 1,105 Computer equipment, furniture, and office equipment 61,193 60,110 Computer software purchased 31,218 27,276 Capitalized internal-use software 227,137 187,723 Tenant improvements 14,435 12,533 334,793 288,952 Less accumulated depreciation and amortization (189,317 ) (168,683 ) Property and equipment, net $ 145,476 $ 120,269 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table disaggregates our revenues by the timing in which the revenue is recognized: Year Ended December 31, 2019 Year Ended December 31, 2018 Account Services Processing and Settlement Services Account Services Processing and Settlement Services Timing of revenue recognition (In thousands) Transferred at a point in time $ 489,696 $ 287,052 $ 500,629 $ 247,942 Transferred over time 293,500 6,406 289,714 3,473 Operating revenues (1) $ 783,196 $ 293,458 $ 790,343 $ 251,415 (1) Excludes net interest income, a component of total operating revenues, as it remains outside the scope of ASC 606, Revenues |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investment Securities [Abstract] | |
Schedule of Available-For-Sale Securities | As of December 31, 2019 and 2018 , 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 fair value Total unrealized loss Fair value Unrealized loss Fair value Unrealized loss (In thousands) December 31, 2019 Agency mortgage-backed securities $ 43,337 $ (153 ) $ 8,735 $ (88 ) $ 52,072 $ (241 ) Municipal bonds — — 113 (2 ) 113 (2 ) Total investment securities $ 43,337 $ (153 ) $ 8,848 $ (90 ) $ 52,185 $ (243 ) December 31, 2018 Agency bond securities $ 14,937 $ (36 ) $ — $ — $ 14,937 $ (36 ) Agency mortgage-backed securities 28,939 (103 ) 8,743 (293 ) 37,682 (396 ) Municipal bonds 353 (14 ) 130 (10 ) 483 (24 ) Asset-backed securities 50,980 (70 ) 7,333 (24 ) 58,313 (94 ) Total investment securities $ 95,209 $ (223 ) $ 16,206 $ (327 ) $ 111,415 $ (550 ) Our available-for-sale investment securities were as follows: Amortized cost Gross unrealized gains Gross unrealized losses Fair value (In thousands) December 31, 2019 Corporate bonds $ 10,000 $ 12 $ — $ 10,012 Agency bond securities 19,980 20 — 20,000 Agency mortgage-backed securities 208,821 2,453 (241 ) 211,033 Municipal bonds 4,342 2 (2 ) 4,342 Asset-backed securities 31,814 238 — 32,052 Total investment securities $ 274,957 $ 2,725 $ (243 ) $ 277,439 December 31, 2018 Negotiable certificate of deposit $ 15,000 $ — $ — $ 15,000 Agency bond securities 19,723 6 (36 ) 19,693 Agency mortgage-backed securities 87,156 53 (396 ) 86,813 Municipal bonds 507 — (24 ) 483 Asset-backed securities 79,274 14 (94 ) 79,194 Total investment securities $ 201,660 $ 73 $ (550 ) $ 201,183 |
Investments classified by contractual maturity date | As of December 31, 2019 , 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 $ 10,000 $ 10,020 Due after one year through five years 10,000 10,012 Due after five years through ten years 9,980 9,980 Due after ten years 4,342 4,342 Mortgage and asset-backed securities 240,635 243,085 Total investment securities $ 274,957 $ 277,439 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable, net consisted of the following: December 31, 2019 December 31, 2018 (In thousands) Overdrawn account balances due from cardholders $ 20,048 $ 17,848 Reserve for uncollectible overdrawn accounts (16,884 ) (13,888 ) Net overdrawn account balances due from cardholders 3,164 3,960 Trade receivables 14,512 6,505 Reserve for uncollectible trade receivables (202 ) (59 ) Net trade receivables 14,310 6,446 Receivables due from card issuing banks 5,758 6,688 Fee advances 26,268 19,576 Other receivables 10,043 4,272 Accounts receivable, net $ 59,543 $ 40,942 |
Schedule of Allowance for Loan Losses | Activity in the reserve for uncollectible overdrawn accounts consisted of the following: Year Ended December 31, 2019 2018 2017 (In thousands) Balance, beginning of period $ 13,888 $ 14,471 $ 11,932 Provision for uncollectible overdrawn accounts: Fees 79,810 67,348 69,912 Purchase transactions 6,641 12,442 7,233 Charge-offs (83,455 ) (80,373 ) (74,606 ) Balance, end of period $ 16,884 $ 13,888 $ 14,471 Activity in the allowance for loan losses consisted of the following: Year Ended December 31, 2019 2018 2017 (In thousands) Balance, beginning of period $ 1,144 $ 291 $ 277 Provision for loans 2,405 3,094 430 Loans charged off (2,674 ) (2,657 ) (472 ) Recoveries of loans previously charged off 291 416 56 Balance, end of period $ 1,166 $ 1,144 $ 291 |
Loans to Bank Customers (Tables
Loans to Bank Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule 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) December 31, 2019 Residential $ 1 $ — $ — $ 1 $ 4,530 $ 4,531 Commercial — — — — 158 158 Installment 1 — — 1 1,246 1,247 Secured credit card 1,080 939 2,183 4,202 12,445 16,647 Total loans $ 1,082 $ 939 $ 2,183 $ 4,204 $ 18,379 $ 22,583 Percentage of outstanding 4.8 % 4.2 % 9.7 % 18.6 % 81.4 % 100.0 % December 31, 2018 Residential $ 2 $ — $ 7 $ 9 $ 3,329 $ 3,338 Commercial — — — — 193 193 Installment — 2 — 2 905 907 Secured credit card 1,383 1,315 1,114 3,812 14,257 18,069 Total loans $ 1,385 $ 1,317 $ 1,121 $ 3,823 $ 18,684 $ 22,507 Percentage of outstanding 6.2 % 5.9 % 5.0 % 17.0 % 83.0 % 100.0 % |
Schedule of 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 for further information on the criteria for classification as nonperforming. December 31, 2019 December 31, 2018 (In thousands) Residential $ 290 $ 403 Installment 147 169 Secured credit card 2,183 1,114 Total loans $ 2,620 $ 1,686 |
Schedule of 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: December 31, 2019 December 31, 2018 Non-Classified Classified Non-Classified Classified (In thousands) Residential $ 4,241 $ 290 $ 2,935 $ 403 Commercial 158 — 193 — Installment 1,058 189 632 275 Secured credit card 14,464 2,183 16,955 1,114 Total loans $ 19,921 $ 2,662 $ 20,715 $ 1,792 |
Schedule of Troubled Debt Restructurings | The following table presents our impaired loans and loans that we modified as TDRs as of December 31, 2019 and 2018 : December 31, 2019 December 31, 2018 Unpaid Principal Balance Carrying Value Unpaid Principal Balance Carrying Value (In thousands) Residential $ 290 $ 221 $ 403 $ 329 Installment 160 48 190 53 |
Schedule of Allowance for Loan Losses | Activity in the reserve for uncollectible overdrawn accounts consisted of the following: Year Ended December 31, 2019 2018 2017 (In thousands) Balance, beginning of period $ 13,888 $ 14,471 $ 11,932 Provision for uncollectible overdrawn accounts: Fees 79,810 67,348 69,912 Purchase transactions 6,641 12,442 7,233 Charge-offs (83,455 ) (80,373 ) (74,606 ) Balance, end of period $ 16,884 $ 13,888 $ 14,471 Activity in the allowance for loan losses consisted of the following: Year Ended December 31, 2019 2018 2017 (In thousands) Balance, beginning of period $ 1,144 $ 291 $ 277 Provision for loans 2,405 3,094 430 Loans charged off (2,674 ) (2,657 ) (472 ) Recoveries of loans previously charged off 291 416 56 Balance, end of period $ 1,166 $ 1,144 $ 291 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property and Equipment [Abstract] | |
Schedule of Property and Equipment | The estimated useful lives of the respective classes of assets are as follows: Land N/A Building 30 years Computer equipment, furniture and office equipment 3-10 years Computer software purchased 3 years Capitalized internal-use software 3-7 years Tenant improvements Shorter of the useful life or the lease term Property and equipment consisted of the following: December 31, 2019 2018 (In thousands) Land $ 205 $ 205 Building 605 1,105 Computer equipment, furniture, and office equipment 61,193 60,110 Computer software purchased 31,218 27,276 Capitalized internal-use software 227,137 187,723 Tenant improvements 14,435 12,533 334,793 288,952 Less accumulated depreciation and amortization (189,317 ) (168,683 ) Property and equipment, net $ 145,476 $ 120,269 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets | Goodwill and intangible assets on our consolidated balance sheets consisted of the following: December 31, 2019 2018 (In thousands) Goodwill $ 301,790 $ 301,790 Intangible assets, net 219,204 249,326 Goodwill and intangible assets $ 520,994 $ 551,116 |
Schedule of Goodwill | |
Schedule of Intangible Assets | The gross carrying amounts and accumulated amortization related to intangibles assets were as follows: December 31, 2019 December 31, 2018 Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value Weighted Average Useful Lives (In thousands) (In thousands) (Years) Customer relationships $ 309,773 $ (126,167 ) $ 183,606 $ 309,773 $ (98,305 ) $ 211,468 12.8 Trade names 44,086 (15,689 ) 28,397 44,086 (12,517 ) 31,569 14.6 Patents 3,000 (1,364 ) 1,636 3,000 (1,091 ) 1,909 11.0 Software licenses 4,832 (837 ) 3,995 — — — 3.0 Other 5,964 (4,394 ) 1,570 7,464 (3,084 ) 4,380 5.0 Total intangible assets $ 367,655 $ (148,451 ) $ 219,204 $ 364,323 $ (114,997 ) $ 249,326 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table shows our estimated amortization expense for intangible assets for each of the next five succeeding years and thereafter: December 31, (In thousands) 2020 $ 28,954 2021 28,608 2022 27,288 2023 26,418 2024 24,235 Thereafter 83,701 Total $ 219,204 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Summary of Deposits | Deposits are categorized as non-interest or interest-bearing deposits as follows: December 31, 2019 2018 Non-interest bearing deposit accounts (In thousands) Account programs $ 927,432 $ 817,124 Other demand deposits 128,386 97,442 Total non-interest bearing deposit accounts 1,055,818 914,566 Interest-bearing deposit accounts Checking accounts 95,995 67,758 Savings 6,619 8,894 Secured card deposits 11,892 9,224 Time deposits, denominations greater than or equal to $100 3,854 3,796 Time deposits, denominations less than $100 1,163 1,247 Total interest-bearing deposit accounts 119,523 90,919 Total deposits $ 1,175,341 $ 1,005,485 |
Schedule of Contractual Maturities For Total Time Deposits | The scheduled contractual maturities for total time deposits are presented in the table below: December 31, (In thousands) Due in 2020 $ 2,608 Due in 2021 813 Due in 2022 811 Due in 2023 335 Due in 2024 450 Total time deposits $ 5,017 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Notes Payable | As of December 31, 2019 and 2018 , our outstanding debt consisted of the following: December 31, 2019 December 31, 2018 (In thousands) Term facility $ — $ 58,705 Revolving facility 35,000 — Total debt outstanding $ 35,000 $ 58,705 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of ASR Activity | The following table summarizes our ASR activity for the years presented in these consolidated financial statements: Purchase Period End Date Number of Shares (In thousands) Average repurchase price per share ASR Amount (In thousands) May 2019 ASR August 2019 2,072 $ 48.26 $ 100,000 March 2017 ASR November 2017 1,326 $ 38.64 $ 50,000 (1) (1) We elected to cash settle approximately $2.0 million worth of shares owed back to the counterparty under our March 2017 accelerated share repurchase agreement. |
Employee Stock-Based Compensa_2
Employee Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-based Compensation Expense | Stock-based compensation for the years ended December 31, 2019 , 2018 , and 2017 includes expense related to awards of stock options, performance and service based restricted stock units and purchases under the 2010 Employee Stock Purchase Plan. Total stock-based compensation expense and the related income tax benefit were as follows: Year Ended December 31, 2019 2018 2017 (In thousands) Total stock-based compensation expense $ 29,583 $ 50,093 $ 40,734 Related income tax benefit 5,143 3,783 9,440 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock Option Activity | Stock option activity for the year ended December 31, 2019 was as follows: Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life (in Years) Aggregate Intrinsic Value (In thousands, except per share data and years) Outstanding at December 31, 2018 251 $ 20.63 Options exercised (70 ) 22.01 Outstanding at December 31, 2019 181 $ 20.09 2.38 $ 814 Exercisable at December 31, 2019 181 20.09 2.38 $ 814 |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Stock Options and Restricted Stock Units Granted | The following table summarizes restricted stock units with only service conditions granted under our 2010 Equity Incentive Plan: Year Ended December 31, 2019 2018 2017 (In thousands, except per share data) Restricted stock units granted 238 452 656 Weighted-average grant-date fair value $ 38.93 $ 74.33 $ 48.72 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | Restricted stock unit activity for the year ended December 31, 2019 was as follows: Shares Weighted-Average Grant-Date Fair Value (In thousands, except per share data) Outstanding at December 31, 2018 1,554 $ 44.38 Restricted stock units granted 238 38.93 Restricted stock units vested (654 ) 34.60 Restricted stock units canceled (250 ) 53.85 Outstanding at December 31, 2019 888 $ 47.20 |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Stock Options and Restricted Stock Units Granted | The following table summarizes the performance-based restricted stock units granted under our 2010 Equity Incentive Plan: Year Ended December 31, 2019 2018 2017 (In thousands, except per share data) Performance based restricted stock units granted 722 276 616 Weighted-average grant-date fair value $ 48.45 $ 71.70 $ 36.13 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | Performance based restricted stock unit activity for the year ended December 31, 2019 was as follows: Shares Weighted-Average Grant-Date Fair Value (In thousands, except per share data) Outstanding at December 31, 2018 837 $ 45.41 Performance restricted stock units granted (at target) 722 $ 48.45 Performance restricted stock units vested (463 ) $ 45.44 Performance restricted stock units canceled (398 ) $ 54.10 Actual adjustment for certified performance periods 156 $ 57.38 Outstanding at December 31, 2019 854 $ 54.63 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | The components of income tax expense included in our consolidated statements of operations were as follows: Year Ended December 31, 2019 2018 2017 (In thousands) Current: Federal $ 11,914 $ 4,011 $ 15,545 State 1,790 894 (1,122 ) Foreign 604 443 368 Current income tax expense 14,308 5,348 14,791 Deferred: Federal 8,102 1,136 4,596 State (1,226 ) (1,370 ) (1,816 ) Deferred income tax expense (benefit) 6,876 (234 ) 2,780 Income tax expense $ 21,184 $ 5,114 $ 17,571 |
Schedule of Reconciliation of Effective Tax Rate | The sources and tax effects of the differences are as follows: Year Ended December 31, 2019 2018 2017 U.S. federal statutory tax rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal tax benefit 0.1 (0.5 ) (2.3 ) General business credits (2.1 ) (2.2 ) (2.8 ) Employee stock-based compensation (2.2 ) (17.1 ) (12.4 ) Tax Cuts and Jobs Act remeasurement — 0.2 (5.0 ) IRC 162(m) limitation 0.1 2.2 1.5 Other 0.6 0.5 3.0 Effective tax rate 17.5 % 4.1 % 17.0 % |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary difference that give rise to significant portions of our deferred tax assets and liabilities were as follows: December 31, 2019 2018 (In thousands) Deferred tax assets: Net operating loss carryforwards $ 8,002 $ 7,379 Stock-based compensation 5,820 8,007 Reserve for overdrawn accounts 4,456 3,838 Accrued liabilities 7,965 11,206 Lease liabilities 8,195 — Tax credit carryforwards 8,723 7,014 Capital loss carryforwards 341 — Gross deferred tax assets 43,502 37,444 Valuation allowance (341 ) — Total deferred tax assets $ 43,161 $ 37,444 Deferred tax liabilities: Internal-use software costs $ 29,382 $ 22,351 Property and equipment, net 2,240 2,803 Deferred expenses 4,114 4,909 Intangible assets 7,826 6,246 Gift card revenue 1,422 1,413 Lease right-of-use assets 6,524 — Other 388 900 Total deferred tax liabilities 51,896 38,622 Net deferred tax liabilities $ (8,735 ) $ (1,178 ) |
Schedule of Income Tax Contingencies | The reconciliation of the beginning unrecognized tax benefits balance to the ending balance is as follows: Year Ended December 31, 2019 2018 2017 (In thousands) Beginning balance $ 6,965 $ 5,560 $ 7,314 Increases related to positions taken during prior years 313 462 404 Increases related to positions taken during the current year 1,576 1,607 1,099 Decreases related to positions settled with tax authorities — — (1,865 ) Decreases due to a lapse of applicable statute of limitations (456 ) (664 ) (1,392 ) Ending balance $ 8,398 $ 6,965 $ 5,560 The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate $ 8,341 $ 6,918 $ 5,560 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Common Share | The calculation of basic and diluted EPS was as follows: Year Ended December 31, 2019 2018 2017 (In thousands, except per share data) Basic earnings per Class A common share Numerator: Net income $ 99,897 $ 118,703 $ 85,887 Denominator: Weighted-average Class A shares issued and outstanding 52,195 52,222 50,482 Basic earnings per Class A common share $ 1.91 $ 2.27 $ 1.70 Diluted earnings per Class A common share Numerator: Net income $ 99,897 $ 118,703 $ 85,887 Denominator: Weighted-average Class A shares issued and outstanding 52,195 52,222 50,482 Dilutive potential common shares: Stock options 114 327 809 Service based restricted stock units 361 1,135 1,445 Performance-based restricted stock units 440 796 462 Employee stock purchase plan 28 1 — Diluted weighted-average Class A shares issued and outstanding 53,138 54,481 53,198 Diluted earnings per Class A common share $ 1.88 $ 2.18 $ 1.61 |
Schedule of Antidilutive Shares | Additionally, we have excluded any performance based restricted stock units for which the performance contingency has not been met as of the end of the period, or whereby the result of including such awards was anti-dilutive. The following table shows the weighted-average number of anti-dilutive shares excluded from the diluted EPS calculation: Note 14—Earnings per Common Share (continued) Year Ended December 31, 2019 2018 2017 (In thousands) Class A common stock Options to purchase Class A common stock — — 56 Service based restricted stock units 354 20 20 Performance-based restricted stock units 459 143 199 Total options, restricted and performance-based stock units 813 163 275 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Carried at Fair Value on a Recurring Basis | As of December 31, 2019 and 2018 , our assets and liabilities carried at fair value on a recurring basis were as follows: Level 1 Level 2 Level 3 Total Fair Value December 31, 2019 (In thousands) Assets Corporate bonds $ — $ 10,012 $ — $ 10,012 Agency bond securities — 20,000 — 20,000 Agency mortgage-backed securities — 211,033 — 211,033 Municipal bonds — 4,342 — 4,342 Asset-backed securities — 32,052 — 32,052 Total assets $ — $ 277,439 $ — $ 277,439 Liabilities Contingent consideration $ — $ — $ 9,300 $ 9,300 December 31, 2018 Assets Negotiable certificate of deposit $ — $ 15,000 $ — $ 15,000 Agency bond securities — 19,693 — 19,693 Agency mortgage-backed securities — 86,813 — 86,813 Municipal bonds — 483 — 483 Asset-backed securities — 79,194 — 79,194 Total assets $ — $ 201,183 $ — $ 201,183 Liabilities Contingent consideration $ — $ — $ 15,800 $ 15,800 |
Schedule of Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents changes in our contingent consideration payable for the year s ended December 31, 2019 , 2018 and 2017 , which is categorized in Level 3 of the fair value hierarchy: Year Ended December 31, 2019 2018 2017 (In thousands) Balance, beginning of period $ 15,800 $ 17,358 $ 8,634 Issuance — — 21,500 Payments of contingent consideration (4,634 ) (4,856 ) (3,104 ) Change in fair value of contingent consideration (1,866 ) 3,298 (9,672 ) Balance, end of period $ 9,300 $ 15,800 $ 17,358 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of 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 December 31, 2019 and 2018 are presented in the table below. December 31, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Financial Assets Loans to bank customers, net of allowance $ 21,417 $ 19,563 $ 21,363 $ 21,088 Financial Liabilities Deposits $ 1,175,341 $ 1,175,298 $ 1,005,485 $ 1,005,435 Debt $ 35,000 $ 35,000 $ 58,705 $ 58,705 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Assets And Liabilities Lessee | Supplemental information related to our ROU assets and related lease liabilities is as follows: December 31, 2019 Cash paid for operating lease liabilities (in thousands) $ 8,850 Weighted average remaining lease term (years) 4.1 Weighted average discount rate 4.7 % |
Maturities of Operating Lease Liabilities | Maturities of our operating lease liabilities as of December 31, 2019 is as follows: Operating Leases (In thousands) 2020 $ 9,846 2021 9,737 2022 8,734 2023 3,464 2024 3,464 Thereafter 1,732 36,977 Less: imputed interest (3,768 ) Total lease liabilities $ 33,209 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | At December 31, 2019 , the future minimum annual payments through various agreements with vendors and retail distributors was as follows: Vendor/Retail Distributor Commitments Year ending December 31, (In thousands) 2020 $ 17,008 2021 11,308 2022 3,425 2023 825 Total of future commitments $ 32,566 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | At December 31, 2019 , the future minimum annual payments through various agreements with vendors and retail distributors was as follows: Vendor/Retail Distributor Commitments Year ending December 31, (In thousands) 2020 $ 17,008 2021 11,308 2022 3,425 2023 825 Total of future commitments $ 32,566 |
Significant Customer Concentr_2
Significant Customer Concentration (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Significant Customer Concentrations [Abstract] | |
Schedule of Customer Concentrations | Revenues derived from our products sold at retail distributors constituting greater than 10% of our total operating revenues were as follows: Year Ended December 31, 2019 2018 2017 Walmart 34% 36% 40% No other retail distributor or partner made up greater than 10% of our total operating revenues for the years ended December 31, 2019 , 2018 , and 2017 . Settlement Asset Concentrations Settlement assets derived from our products sold at retail distributors constituting greater than 10% of the settlement assets outstanding on our consolidated balance sheets were as follows: December 31, 2019 December 31, 2018 Walmart 13% 18% |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Requirements [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements | Our capital ratios and related regulatory requirements were as follows: December 31, 2019 Amount Ratio Regulatory Minimum "Well-capitalized" Minimum (In thousands, except ratios) Green Dot Corporation: Tier 1 leverage $ 400,445 22.2 % 4.0 % n/a Common equity Tier 1 capital $ 400,445 70.5 % 4.5 % n/a Tier 1 capital $ 400,445 70.5 % 6.0 % 6.0 % Total risk-based capital $ 404,469 71.2 % 8.0 % 10.0 % Green Dot Bank: Tier 1 leverage $ 204,141 13.9 % 4.0 % 5.0 % Common equity Tier 1 capital $ 204,141 82.8 % 4.5 % 6.5 % Tier 1 capital $ 204,141 82.8 % 6.0 % 8.0 % Total risk-based capital $ 205,548 83.4 % 8.0 % 10.0 % December 31, 2018 Amount Ratio Regulatory Minimum "Well-capitalized" Minimum (In thousands, except ratios) Green Dot Corporation: Tier 1 leverage $ 353,047 20.1 % 4.0 % n/a Common equity Tier 1 capital $ 353,047 88.8 % 4.5 % n/a Tier 1 capital $ 353,047 88.8 % 6.0 % 6.0 % Total risk-based capital $ 357,092 89.8 % 8.0 % 10.0 % Green Dot Bank: Tier 1 leverage $ 172,518 11.7 % 4.0 % 5.0 % Common equity Tier 1 capital $ 172,518 100.8 % 4.5 % 6.5 % Tier 1 capital $ 172,518 100.8 % 6.0 % 8.0 % Total risk-based capital $ 173,838 101.5 % 8.0 % 10.0 % |
Selected Unaudited Quarterly _2
Selected Unaudited Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following tables set forth a summary of our quarterly financial information for each of the four quarters in 2019 and 2018 : 2019 Q4 Q3 Q2 Q1 (In thousands, except per share data) Total operating revenues $ 249,307 $ 240,448 $ 278,326 $ 340,514 Total operating expenses 249,550 242,635 234,363 259,129 Operating (loss) income (243 ) (2,187 ) 43,963 81,385 Interest expense, net 89 112 165 1,471 (Loss) income before income taxes (332 ) (2,299 ) 43,798 79,914 Income tax (benefit) expense (2,025 ) (1,768 ) 9,106 15,871 Net income (loss) $ 1,693 $ (531 ) $ 34,692 $ 64,043 Earnings (loss) per common share Basic Class A common stock $ 0.03 $ (0.01 ) $ 0.66 $ 1.21 Diluted Class A common stock $ 0.03 $ (0.01 ) $ 0.64 $ 1.17 2018 Q4 Q3 Q2 Q1 (In thousands, except per share data) Total operating revenues $ 245,108 $ 236,333 $ 263,792 $ 320,342 Total operating expenses 229,712 235,662 231,168 238,618 Operating income 15,396 671 32,624 81,724 Interest expense, net 3,067 991 1,280 1,260 Income before income taxes 12,329 (320 ) 31,344 80,464 Income tax (benefit) expense (1,943 ) (4,893 ) 1,517 10,433 Net income $ 14,272 $ 4,573 $ 29,827 $ 70,031 Earnings per common share Basic Class A common stock $ 0.27 $ 0.09 $ 0.57 $ 1.36 Diluted Class A common stock $ 0.26 $ 0.08 $ 0.55 $ 1.29 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segments | The following tables present certain financial information for each of our reportable segments for the periods then ended: Year Ended December 31, 2019 Account Services Processing and Settlement Services Corporate and Other Total (In thousands) Operating revenues $ 842,967 $ 296,721 $ (31,093 ) $ 1,108,595 Operating expenses 696,409 202,713 86,555 985,677 Operating income $ 146,558 $ 94,008 $ (117,648 ) $ 122,918 Year Ended December 31, 2018 Account Services Processing and Settlement Services Corporate and Other Total (In thousands) Operating revenues $ 843,905 $ 253,360 $ (31,690 ) $ 1,065,575 Operating expenses 643,714 179,037 112,409 935,160 Operating income $ 200,191 $ 74,323 $ (144,099 ) $ 130,415 Year Ended December 31, 2017 Account Services Processing and Settlement Services Corporate and Other Total (In thousands) Operating revenues $ 703,386 $ 229,133 $ (31,396 ) $ 901,123 Operating expenses 549,858 165,961 76,008 791,827 Operating income $ 153,528 $ 63,172 $ (107,404 ) $ 109,296 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Accounting Policies [Abstract] | ||||
Allowance for doubtful accounts receivable, write-offs, average recovery period | 6 months | |||
Allowance for doubtful accounts receivable, write-offs activity period | 90 days | |||
Restricted cash | $ 2,728,000 | $ 490,000 | $ 90,852,000 | |
Nonaccrual status threshold | 90 days | |||
Collateral deposits applied threshold | 90 days | |||
Balance in excess of collateral balance charged off threshold | 180 days | |||
Impairment of intangible assets | $ 0 | 0 | 0 | |
Asset impairment charges | $ 600,000 | 900,000 | 1,300,000 | |
Purchase price allocation measurement period | 1 year | |||
Impairment of goodwill | $ 0 | 0 | 0 | |
GPR, average useful life | 1 year | |||
Gift card, average useful life | 1 year | |||
Months to settle overdrawn accounts | 2 months | |||
Advertising and marketing expenses | $ 51,100,000 | 23,200,000 | 25,100,000 | |
Shipping and handling costs | 1,500,000 | $ 2,000,000 | $ 3,000,000 | |
Item Effected [Line Items] | ||||
Right-of-use asset | 26,373,000 | |||
Lease liability | $ 33,209,000 | |||
ASU 2016-02 | ||||
Item Effected [Line Items] | ||||
Right-of-use asset | $ 17,900,000 | |||
Lease liability | $ 25,100,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Building | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 30 years |
Computer equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 3 years |
Computer equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 10 years |
Computer software purchased | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 3 years |
Capitalized internal-use software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 2 years |
Capitalized internal-use software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 7 years |
Customer Relationships and Trade Names | Minimum | |
Property, Plant and Equipment [Line Items] | |
Finite-lived intangible asset, estimated useful lives | 3 years |
Customer Relationships and Trade Names | Maximum | |
Property, Plant and Equipment [Line Items] | |
Finite-lived intangible asset, estimated useful lives | 15 years |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from Contract with Customer [Abstract] | |||
Incentive payments | $ 6.4 | $ 7.1 | $ 4.8 |
Contract liabilities | $ 31.8 | $ 28.7 |
Revenues - Schedule of Disaggre
Revenues - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Account Services | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenues | $ 783,196 | $ 790,343 |
Processing and Settlement Services | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenues | 293,458 | 251,415 |
Transferred at a point in time | Account Services | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenues | 489,696 | 500,629 |
Transferred at a point in time | Processing and Settlement Services | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenues | 287,052 | 247,942 |
Transferred over time | Account Services | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenues | 293,500 | 289,714 |
Transferred over time | Processing and Settlement Services | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenues | $ 6,406 | $ 3,473 |
Investment Securities - Gross G
Investment Securities - Gross Gains and Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 274,957 | $ 201,660 |
Gross unrealized gains | 2,725 | 73 |
Gross unrealized losses | (243) | (550) |
Fair value | 277,439 | 201,183 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 10,000 | |
Gross unrealized gains | 12 | |
Gross unrealized losses | 0 | |
Fair value | 10,012 | |
Negotiable certificate of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 15,000 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | 0 | |
Fair value | 15,000 | |
Agency bond securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 19,980 | 19,723 |
Gross unrealized gains | 20 | 6 |
Gross unrealized losses | 0 | (36) |
Fair value | 20,000 | 19,693 |
Agency mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 208,821 | 87,156 |
Gross unrealized gains | 2,453 | 53 |
Gross unrealized losses | (241) | (396) |
Fair value | 211,033 | 86,813 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 4,342 | 507 |
Gross unrealized gains | 2 | 0 |
Gross unrealized losses | (2) | (24) |
Fair value | 4,342 | 483 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 31,814 | 79,274 |
Gross unrealized gains | 238 | 14 |
Gross unrealized losses | 0 | (94) |
Fair value | $ 32,052 | $ 79,194 |
Investment Securities - Continu
Investment Securities - Continuous Unrealized Loss (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair value | ||
Less than 12 months | $ 43,337,000 | $ 95,209,000 |
12 months or more | 8,848,000 | 16,206,000 |
Total fair value | 52,185,000 | 111,415,000 |
Unrealized loss | ||
Less than 12 months | (153,000) | (223,000) |
12 months or more | (90,000) | (327,000) |
Total unrealized loss | (243,000) | (550,000) |
OTTI loss | 0 | 0 |
Agency bond securities | ||
Fair value | ||
Less than 12 months | 14,937,000 | |
12 months or more | 0 | |
Total fair value | 14,937,000 | |
Unrealized loss | ||
Less than 12 months | (36,000) | |
12 months or more | 0 | |
Total unrealized loss | (36,000) | |
Agency mortgage-backed securities | ||
Fair value | ||
Less than 12 months | 43,337,000 | 28,939,000 |
12 months or more | 8,735,000 | 8,743,000 |
Total fair value | 52,072,000 | 37,682,000 |
Unrealized loss | ||
Less than 12 months | (153,000) | (103,000) |
12 months or more | (88,000) | (293,000) |
Total unrealized loss | (241,000) | (396,000) |
Municipal bonds | ||
Fair value | ||
Less than 12 months | 0 | 353,000 |
12 months or more | 113,000 | 130,000 |
Total fair value | 113,000 | 483,000 |
Unrealized loss | ||
Less than 12 months | 0 | (14,000) |
12 months or more | (2,000) | (10,000) |
Total unrealized loss | $ (2,000) | (24,000) |
Asset-backed securities | ||
Fair value | ||
Less than 12 months | 50,980,000 | |
12 months or more | 7,333,000 | |
Total fair value | 58,313,000 | |
Unrealized loss | ||
Less than 12 months | (70,000) | |
12 months or more | (24,000) | |
Total unrealized loss | $ (94,000) |
Investment Securities - Maturit
Investment Securities - Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract] | ||
Due in one year or less, amortized cost basis | $ 10,000 | |
Due after one year through five, amortized cost basis | 10,000 | |
Due after five years through ten years, amortized cost basis | 9,980 | |
Due after ten years, amortized cost basis | 4,342 | |
Asset-backed securities, amortized cost basis | 240,635 | |
Amortized cost | 274,957 | $ 201,660 |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Due in one year or less, fair value | 10,020 | |
Due after one year through five, fair value | 10,012 | |
Due after one year through five, fair value | 9,980 | |
Due after ten years, fair value | 4,342 | |
Mortgage and asset-backed securities | 243,085 | |
Fair value | $ 277,439 | $ 201,183 |
Accounts Receivable - Accounts
Accounts Receivable - Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable, net | $ 59,543 | $ 40,942 | ||
Overdrawn account balances due from cardholders | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable, gross | 20,048 | 17,848 | ||
Allowance for doubtful accounts | (16,884) | (13,888) | $ (14,471) | $ (11,932) |
Accounts receivable, net | 3,164 | 3,960 | ||
Trade receivables | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable, gross | 14,512 | 6,505 | ||
Allowance for doubtful accounts | (202) | (59) | ||
Accounts receivable, net | 14,310 | 6,446 | ||
Receivables due from card issuing banks | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable, gross | 5,758 | 6,688 | ||
Fee advances | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable, gross | 26,268 | 19,576 | ||
Other receivables | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable, gross | $ 10,043 | $ 4,272 |
Accounts Receivable - Reserve F
Accounts Receivable - Reserve For Uncollectible Overdrawn Accounts Activity (Details) - Reserve for uncollectible overdrawn accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Uncollectible Overdrawn Accounts [Roll Forward] | |||
Balance, beginning of period | $ 13,888 | $ 14,471 | $ 11,932 |
Fees | 79,810 | 67,348 | 69,912 |
Purchase transactions | 6,641 | 12,442 | 7,233 |
Charge-offs | (83,455) | (80,373) | (74,606) |
Balance, end of period | $ 16,884 | $ 13,888 | $ 14,471 |
Loans to Bank Customers - Loan
Loans to Bank Customers - Loan Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | $ 22,583 | $ 22,507 |
Percentage of outstanding | 100.00% | 100.00% |
30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due 30 days or more | $ 1,082 | $ 1,385 |
Percentage of outstanding | 4.80% | 6.20% |
60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due 30 days or more | $ 939 | $ 1,317 |
Percentage of outstanding | 4.20% | 5.90% |
90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due 30 days or more | $ 2,183 | $ 1,121 |
Percentage of outstanding | 9.70% | 5.00% |
Total Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due 30 days or more | $ 4,204 | $ 3,823 |
Percentage of outstanding | 18.60% | 17.00% |
Total Current or Less Than 30 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Current or Less Than 30 Days Past Due | $ 18,379 | $ 18,684 |
Percentage of outstanding | 81.40% | 83.00% |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due 30 days or more | $ 1 | $ 9 |
Total Current or Less Than 30 Days Past Due | 4,530 | 3,329 |
Total Outstanding | 4,531 | 3,338 |
Residential | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due 30 days or more | 1 | 2 |
Residential | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due 30 days or more | 0 | 0 |
Residential | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due 30 days or more | 0 | 7 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due 30 days or more | 0 | 0 |
Total Current or Less Than 30 Days Past Due | 158 | 193 |
Total Outstanding | 158 | 193 |
Commercial | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due 30 days or more | 0 | 0 |
Commercial | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due 30 days or more | 0 | 0 |
Commercial | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due 30 days or more | 0 | 0 |
Installment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due 30 days or more | 1 | 2 |
Total Current or Less Than 30 Days Past Due | 1,246 | 905 |
Total Outstanding | 1,247 | 907 |
Installment | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due 30 days or more | 1 | 0 |
Installment | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due 30 days or more | 0 | 2 |
Installment | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due 30 days or more | 0 | 0 |
Secured credit card | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due 30 days or more | 4,202 | 3,812 |
Total Current or Less Than 30 Days Past Due | 12,445 | 14,257 |
Total Outstanding | 16,647 | 18,069 |
Secured credit card | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due 30 days or more | 1,080 | 1,383 |
Secured credit card | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due 30 days or more | 939 | 1,315 |
Secured credit card | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due 30 days or more | $ 2,183 | $ 1,114 |
Loans to Bank Customers - Nonpe
Loans to Bank Customers - Nonperforming Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Nonperforming Loans [Line Items] | ||
Nonperforming loans | $ 2,620 | $ 1,686 |
Residential | ||
Nonperforming Loans [Line Items] | ||
Nonperforming loans | 290 | 403 |
Installment | ||
Nonperforming Loans [Line Items] | ||
Nonperforming loans | 147 | 169 |
Secured credit card | ||
Nonperforming Loans [Line Items] | ||
Nonperforming loans | $ 2,183 | $ 1,114 |
Loans to Bank Customers - Credi
Loans to Bank Customers - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Non-Classified | ||
Outstanding Loans [Line Items] | ||
Total loans | $ 19,921 | $ 20,715 |
Classified | ||
Outstanding Loans [Line Items] | ||
Total loans | 2,662 | 1,792 |
Residential | Non-Classified | ||
Outstanding Loans [Line Items] | ||
Total loans | 4,241 | 2,935 |
Residential | Classified | ||
Outstanding Loans [Line Items] | ||
Total loans | 290 | 403 |
Commercial | Non-Classified | ||
Outstanding Loans [Line Items] | ||
Total loans | 158 | 193 |
Commercial | Classified | ||
Outstanding Loans [Line Items] | ||
Total loans | 0 | 0 |
Installment | Non-Classified | ||
Outstanding Loans [Line Items] | ||
Total loans | 1,058 | 632 |
Installment | Classified | ||
Outstanding Loans [Line Items] | ||
Total loans | 189 | 275 |
Secured credit card | Non-Classified | ||
Outstanding Loans [Line Items] | ||
Total loans | 14,464 | 16,955 |
Secured credit card | Classified | ||
Outstanding Loans [Line Items] | ||
Total loans | $ 2,183 | $ 1,114 |
Loans to Bank Customers - Troub
Loans to Bank Customers - Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Residential | ||
Loan Modifications [Line Items] | ||
Unpaid Principal Balance | $ 290 | $ 403 |
Carrying Value | 221 | 329 |
Installment | ||
Loan Modifications [Line Items] | ||
Unpaid Principal Balance | 160 | 190 |
Carrying Value | $ 48 | $ 53 |
Loans to Bank Customers - Allow
Loans to Bank Customers - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Loan Losses [Roll Forward] | |||
Allowance for loan losses, beginning of period | $ 1,144 | $ 291 | $ 277 |
Provision for loans | 2,405 | 3,094 | 430 |
Loans charged off | (2,674) | (2,657) | (472) |
Recoveries of loans previously charged off | 291 | 416 | 56 |
Allowance for loan losses, end of period | $ 1,166 | $ 1,144 | $ 291 |
Property and Equipment - Proper
Property and Equipment - Property and Equipment Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 334,793 | $ 288,952 |
Less accumulated depreciation and amortization | (189,317) | (168,683) |
Property and equipment, net | 145,476 | 120,269 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 205 | 205 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 605 | 1,105 |
Computer equipment, furniture, and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 61,193 | 60,110 |
Computer software purchased | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 31,218 | 27,276 |
Capitalized internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 227,137 | 187,723 |
Tenant improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 14,435 | $ 12,533 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 49,500 | $ 38,600 | $ 33,500 |
Depreciation and amortization expense | 49,489 | 38,581 | 33,470 |
Asset impairment charges | 600 | 900 | 1,300 |
Capitalized computer software, net | 119,900 | 93,800 | |
Capitalized internal-use software | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 35,100 | $ 25,500 | $ 20,000 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill and Intangible Assets Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 301,790 | $ 301,790 |
Intangible assets, net | 219,204 | 249,326 |
Goodwill and intangible assets | $ 520,994 | $ 551,116 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Goodwill Rollforward (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Impairment of goodwill | $ 0 | $ 0 | $ 0 |
Goodwill [Roll Forward] | |||
Balance, beginning of period | 301,790,000 | ||
Intangible assets, net | 219,204,000 | 249,326,000 | |
Balance, end of period | $ 301,790,000 | $ 301,790,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Intangible Assets Summary (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | $ 367,655,000 | $ 364,323,000 | |
Accumulated Amortization | (148,451,000) | (114,997,000) | |
Net Book Value | 219,204,000 | 249,326,000 | |
Amortization of intangible assets | 32,616,000 | 32,761,000 | $ 31,110,000 |
Impairment of intangible assets | 0 | 0 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | 309,773,000 | 309,773,000 | |
Accumulated Amortization | (126,167,000) | (98,305,000) | |
Net Book Value | $ 183,606,000 | 211,468,000 | |
Weighted Average Useful Lives | 12 years 9 months 18 days | ||
Trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | $ 44,086,000 | 44,086,000 | |
Accumulated Amortization | (15,689,000) | (12,517,000) | |
Net Book Value | $ 28,397,000 | 31,569,000 | |
Weighted Average Useful Lives | 14 years 7 months 6 days | ||
Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | $ 3,000,000 | 3,000,000 | |
Accumulated Amortization | (1,364,000) | (1,091,000) | |
Net Book Value | $ 1,636,000 | 1,909,000 | |
Weighted Average Useful Lives | 11 years | ||
Software licenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | $ 4,832,000 | 0 | |
Accumulated Amortization | (837,000) | 0 | |
Net Book Value | $ 3,995,000 | 0 | |
Weighted Average Useful Lives | 3 years | ||
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | $ 5,964,000 | 7,464,000 | |
Accumulated Amortization | (4,394,000) | (3,084,000) | |
Net Book Value | $ 1,570,000 | $ 4,380,000 | |
Weighted Average Useful Lives | 5 years |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Intangible Assets Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Estimated Amortization Expense, Next Five Years [Abstract] | ||
2020 | $ 28,954 | |
2021 | 28,608 | |
2022 | 27,288 | |
2023 | 26,418 | |
2024 | 24,235 | |
Thereafter | 83,701 | |
Net Book Value | $ 219,204 | $ 249,326 |
Deposits - Summary of Deposits
Deposits - Summary of Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Non-interest bearing deposit accounts | ||
Account programs | $ 927,432 | $ 817,124 |
Other demand deposits | 128,386 | 97,442 |
Total non-interest bearing deposit accounts | 1,055,818 | 914,566 |
Interest-bearing deposit accounts | ||
Checking accounts | 95,995 | 67,758 |
Savings | 6,619 | 8,894 |
Secured card deposits | 11,892 | 9,224 |
Time deposits, denominations greater than or equal to $100 | 3,854 | 3,796 |
Time deposits, denominations less than $100 | 1,163 | 1,247 |
Total interest-bearing deposit accounts | 119,523 | 90,919 |
Total deposits | $ 1,175,341 | $ 1,005,485 |
Deposits - Contractual Maturiti
Deposits - Contractual Maturities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Deposits [Abstract] | |
Due in 2020 | $ 2,608 |
Due in 2021 | 813 |
Due in 2022 | 811 |
Due in 2023 | 335 |
Due in 2024 | 450 |
Total time deposits | 5,017 |
Time deposits, at or above FDIC insurance limit | $ 2,300 |
Debt - Outstanding (Details)
Debt - Outstanding (Details) - Senior Credit Facility - Bank of America, Wells Fargo Bank, and Other Lenders - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Line of Credit Facility [Line Items] | ||
Total Debt | $ 35,000 | $ 58,705 |
Term facility | ||
Line of Credit Facility [Line Items] | ||
Total Debt | 0 | 58,705 |
Revolving facility | ||
Line of Credit Facility [Line Items] | ||
Total Debt | $ 35,000 | $ 0 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Oct. 31, 2019 | Mar. 31, 2019 | Oct. 31, 2014 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Line of Credit Facility [Line Items] | ||||||
Repayments of notes payable | $ 60,000,000 | $ 22,500,000 | $ 42,500,000 | |||
Revolving facility | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Commitment fee | 0.20% | |||||
Revolving facility | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Commitment fee | 0.35% | |||||
Senior Credit Facility | Revolving facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 100,000,000 | |||||
Facility term | 5 years | |||||
Remaining borrowing capacity | $ 65,000,000 | |||||
Senior Credit Facility | Bank of America, Wells Fargo Bank, and Other Lenders | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 225,000,000 | |||||
Effective interest rate on outstanding borrowings | 3.05% | |||||
Interest expense | $ 600,000 | $ 3,500,000 | $ 4,100,000 | |||
Senior Credit Facility | Bank of America, Wells Fargo Bank, and Other Lenders | Base Rate, Condition One | ||||||
Line of Credit Facility [Line Items] | ||||||
Margin included in variable base rate | 0.50% | |||||
Senior Credit Facility | Bank of America, Wells Fargo Bank, and Other Lenders | Base Rate, Condition Two | ||||||
Line of Credit Facility [Line Items] | ||||||
Margin included in variable base rate | 1.00% | |||||
Senior Credit Facility | Bank of America, Wells Fargo Bank, and Other Lenders | Revolving facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 75,000,000 | |||||
Facility term | 5 years | |||||
Senior Credit Facility | Bank of America, Wells Fargo Bank, and Other Lenders | Term facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 150,000,000 | |||||
Facility term | 5 years | |||||
Quarterly principal payments | $ 5,600,000 | |||||
Repayments of notes payable | $ 60,000,000 | |||||
Senior Credit Facility | Wells Fargo Bank | Base Rate | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable base rate | 0.25% | |||||
Senior Credit Facility | Wells Fargo Bank | Base Rate | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable base rate | 1.00% | |||||
Senior Credit Facility | Wells Fargo Bank | LIBOR | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable base rate | 1.25% | |||||
Senior Credit Facility | Wells Fargo Bank | LIBOR | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable base rate | 2.00% |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) | 12 Months Ended | ||||
Dec. 31, 2019USD ($)Vote / shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | May 31, 2017USD ($) | Jun. 30, 2015USD ($) | |
Class of Stock [Line Items] | |||||
Tax impact on unrealized losses and gains on investment securities available-for-sale | $ 800,000 | $ 100,000 | $ 100,000 | ||
Payments for repurchase of common stock | $ 100,000,000 | $ 0 | $ 51,969,000 | ||
Common Class A | |||||
Class of Stock [Line Items] | |||||
Votes per share (in votes) | Vote / shares | 1 | ||||
Voting threshold | 24.90% | ||||
Reduced voting power | 14.90% | ||||
Authorized amount | $ 150,000,000 | ||||
Additional authorized amount | $ 150,000,000 | ||||
Remaining authorized amount | $ 50,000,000 |
Stockholders' Equity - Treasury
Stockholders' Equity - Treasury Stock (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
May 2019 ASR | |
Equity, Class of Treasury Stock [Line Items] | |
Treasury stock acquired (in shares) | shares | 2,072 |
Average repurchase price per share (in USD per share) | $ / shares | $ 48.26 |
Treasury stock | $ 100,000 |
March 2017 ASR | |
Equity, Class of Treasury Stock [Line Items] | |
Treasury stock acquired (in shares) | shares | 1,326 |
Average repurchase price per share (in USD per share) | $ / shares | $ 38.64 |
Treasury stock | $ 50,000 |
Cash settlement | $ 2,000 |
Employee Stock-Based Compensa_3
Employee Stock-Based Compensation - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2010 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercises in period, total intrinsic value | $ 2,400,000 | $ 36,200,000 | $ 24,100,000 | |
Total compensation cost not yet recognized, stock options | $ 0 | |||
Period for recognition, restricted stock | 2 years 3 months 3 days | |||
Unvested stock options (in shares) | 0 | |||
2010 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years | |||
Number of shares available for grant | 2,100,000 | |||
2010 Equity Incentive Plan | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award expiration period | 5 years | |||
2010 Equity Incentive Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award expiration period | 10 years | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vested in period, total fair value | $ 30,900,000 | 67,500,000 | 41,500,000 | |
Total compensation cost not yet recognized, stock options | 40,900,000 | |||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vested in period, total fair value | $ 22,700,000 | $ 45,100,000 | $ 4,400,000 | |
Performance Shares | 2010 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years | |||
Performance Shares | 2010 Equity Incentive Plan | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target share percentage | 0.00% | |||
Performance Shares | 2010 Equity Incentive Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target share percentage | 150.00% | |||
Performance Shares | 2010 Equity Incentive Plan-Executive Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment arrangement period | 3 years | |||
Chief Executive Officer | Performance Shares | 2010 Equity Incentive Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target share percentage, CEO awards eligible | 200.00% | 150.00% |
Employee Stock-Based Compensa_4
Employee Stock-Based Compensation - Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Employee stock-based compensation | $ 29,583 | $ 50,093 | $ 40,734 |
Related income tax benefit | $ 5,143 | $ 3,783 | $ 9,440 |
Employee Stock-Based Compensa_5
Employee Stock-Based Compensation - Equity Granted (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance based restricted stock units granted | 722 | ||
Weighted-average grant-date fair value | $ 48.45 | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units granted | 656 | ||
Performance based restricted stock units granted | 238 | ||
Weighted-average grant-date fair value | $ 38.93 | $ 48.72 | |
2010 Equity Incentive Plan | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units granted | 722 | 276 | |
Performance based restricted stock units granted | 616 | ||
Weighted-average grant-date fair value | $ 48.45 | $ 71.70 | $ 36.13 |
2010 Equity Incentive Plan | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units granted | 238 | 452 | |
Weighted-average grant-date fair value | $ 38.93 | $ 74.33 |
Employee Stock-Based Compensa_6
Employee Stock-Based Compensation - Restricted and Performance Stock Units Granted (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Non-Option equity instruments, actual adjustment for certified performance periods (in shares) | 156 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Equity instruments other than options, actual adjustment for certified performance periods, weighted average fair value (in USD per share) | $ 57.38 | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Non-Option equity instruments outstanding, beginning balance (in shares) | 837 | |
Performance based restricted stock units granted | 722 | |
Non-Option equity instruments, exercised (in shares) | (463) | |
Non-Option equity instruments, forfeitures and expirations (in shares) | (398) | |
Non-Option equity instruments outstanding, ending balance (in shares) | 854 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Equity instruments other than options, nonvested, weighted average grant date fair value (in USD per share) | $ 45.41 | |
Equity instruments other than options, grants in period, weighted average grant date fair value (in USD per share) | 48.45 | |
Equity instruments other than options, vested in period, weighted average grant date fair value (in USD per share) | 45.44 | |
Equity instruments other than options, forfeitures, weighted average grant date fair value (in USD per share) | 54.10 | |
Equity instruments other than options, nonvested, weighted average grant date fair value (in USD per share) | $ 54.63 | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Non-Option equity instruments outstanding, beginning balance (in shares) | 1,554 | |
Performance based restricted stock units granted | 238 | |
Non-Option equity instruments, exercised (in shares) | (654) | |
Non-Option equity instruments, forfeitures and expirations (in shares) | (250) | |
Non-Option equity instruments outstanding, ending balance (in shares) | 888 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Equity instruments other than options, nonvested, weighted average grant date fair value (in USD per share) | $ 44.38 | |
Equity instruments other than options, grants in period, weighted average grant date fair value (in USD per share) | 38.93 | $ 48.72 |
Equity instruments other than options, vested in period, weighted average grant date fair value (in USD per share) | 34.60 | |
Equity instruments other than options, forfeitures, weighted average grant date fair value (in USD per share) | 53.85 | |
Equity instruments other than options, nonvested, weighted average grant date fair value (in USD per share) | $ 47.20 |
Employee Stock-Based Compensa_7
Employee Stock-Based Compensation - Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding, beginning balance (in shares) | shares | 251 |
Options, exercised in period (in shares) | shares | (70) |
Options outstanding, ending balance (in shares) | shares | 181 |
Options, exercisable (in shares) | shares | 181 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Options outstanding, beginning balance, weighted average exercise price (in USD per share) | $ / shares | $ 20.63 |
Options, exercises in period, weighted average exercise price (in USD per share) | $ / shares | 22.01 |
Options outstanding, ending balance, weighted average exercise price (in USD per share) | $ / shares | 20.09 |
Options, exercisable, weighted average exercise price (in USD per share) | $ / shares | $ 20.09 |
Options, outstanding, weighted average remaining contractual term | 2 years 4 months 17 days |
Options, exercisable, weighted average remaining contractual term | 2 years 4 months 17 days |
Options, outstanding, intrinsic value | $ | $ 814 |
Options, exercisable, intrinsic value | $ | $ 814 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||||||||||
Federal | $ 11,914 | $ 4,011 | $ 15,545 | ||||||||
State | 1,790 | 894 | (1,122) | ||||||||
Foreign | 604 | 443 | 368 | ||||||||
Current income tax expense | 14,308 | 5,348 | 14,791 | ||||||||
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||||||||||
Federal | 8,102 | 1,136 | 4,596 | ||||||||
State | (1,226) | (1,370) | (1,816) | ||||||||
Deferred income tax expense (benefit) | 6,876 | (234) | 2,780 | ||||||||
Income tax expense | $ (2,025) | $ (1,768) | $ 9,106 | $ 15,871 | $ (1,943) | $ (4,893) | $ 1,517 | $ 10,433 | $ 21,184 | $ 5,114 | $ 17,571 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Percent change in effective income tax rate for Tax Act | 0.00% | 0.20% | (5.00%) |
The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate | $ 8,341 | $ 6,918 | |
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 31,900 | ||
The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate | $ 5,560 | ||
State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 57,900 | ||
Internal Revenue Service (IRS) | Minimum | State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Income tax examination, period | 4 years | ||
Internal Revenue Service (IRS) | Maximum | State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Income tax examination, period | 5 years | ||
Tax Year 2021-2039 | State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 31,700 | ||
Indefinitely | State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 26,200 | ||
Latest Tax Year | State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward | 14,800 | ||
Tax Year 2023-2027 | State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward | 1,100 | ||
Capital Loss Carryforward | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 1,500 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory tax rate | 21.00% | 21.00% | 35.00% |
State income taxes, net of federal tax benefit | 0.10% | (0.50%) | (2.30%) |
General business credits | (2.10%) | (2.20%) | (2.80%) |
Employee stock-based compensation | (2.20%) | (17.10%) | (12.40%) |
Tax Cuts and Jobs Act remeasurement | 0.00% | 0.20% | (5.00%) |
IRC 162(m) limitation | 0.10% | 2.20% | 1.50% |
Other | 0.60% | 0.50% | 3.00% |
Effective tax rate | 17.50% | 4.10% | 17.00% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 8,002,000 | $ 7,379,000 |
Stock-based compensation | 5,820,000 | 8,007,000 |
Reserve for overdrawn accounts | 4,456,000 | 3,838,000 |
Accrued liabilities | 7,965,000 | 11,206,000 |
Lease liabilities | 8,195,000 | |
Tax credit carryforwards | 8,723,000 | 7,014,000 |
Capital loss carryforwards | 341,000 | 0 |
Gross deferred tax assets | 43,502,000 | 37,444,000 |
Valuation allowance | (341,000) | 0 |
Deferred Tax Assets, Net of Valuation Allowance | 43,161,000 | 37,444,000 |
Deferred tax liabilities: | ||
Internal-use software costs | 29,382,000 | 22,351,000 |
Property and equipment, net | 2,240,000 | 2,803,000 |
Deferred expenses | 4,114,000 | 4,909,000 |
Intangible assets | 7,826,000 | 6,246,000 |
Gift card revenue | 1,422,000 | 1,413,000 |
Lease right-of-use assets | 6,524,000 | |
Other | 388,000 | 900,000 |
Total deferred tax liabilities | 51,896,000 | 38,622,000 |
Net deferred tax liabilities | $ (8,735,000) | $ (1,178,000) |
Income Taxes - Rollforward of U
Income Taxes - Rollforward of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 6,965 | $ 5,560 | |
Increases related to positions taken during prior years | 313 | 462 | |
Increases related to positions taken during the current year | 1,576 | 1,607 | |
Decreases related to positions settled with tax authorities | 0 | 0 | |
Decreases due to a lapse of applicable statute of limitations | (456) | (664) | |
Ending balance | 8,398 | 6,965 | $ 5,560 |
The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate | 8,341 | 6,918 | |
Income tax penalties and interest accrued | $ 500 | 300 | 200 |
Domestic Tax Authority | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 5,560 | 7,314 | |
Increases related to positions taken during prior years | 404 | ||
Increases related to positions taken during the current year | 1,099 | ||
Decreases related to positions settled with tax authorities | (1,865) | ||
Decreases due to a lapse of applicable statute of limitations | (1,392) | ||
Ending balance | 5,560 | ||
The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate | $ 5,560 |
Earnings per Common Share - Bas
Earnings per Common Share - Basic Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net income | $ 1,693 | $ (531) | $ 34,692 | $ 64,043 | $ 14,272 | $ 4,573 | $ 29,827 | $ 70,031 | $ 99,897 | $ 118,703 | $ 85,887 |
Weighted-average Class A shares issued and outstanding (in shares) | 52,195 | 52,222 | 50,482 | ||||||||
Basic earnings per common share (in USD per share) | $ 0.03 | $ (0.01) | $ 0.66 | $ 1.21 | $ 0.27 | $ 0.09 | $ 0.57 | $ 1.36 | $ 1.91 | $ 2.27 | $ 1.70 |
Retained Earnings | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net income | $ 99,897 | $ 118,703 | $ 85,887 |
Earnings per Common Share - Dil
Earnings per Common Share - Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net income | $ 1,693 | $ (531) | $ 34,692 | $ 64,043 | $ 14,272 | $ 4,573 | $ 29,827 | $ 70,031 | $ 99,897 | $ 118,703 | $ 85,887 |
Weighted-average Class A shares issued and outstanding (in shares) | 52,195 | 52,222 | 50,482 | ||||||||
Diluted weighted-average Class A shares issued and outstanding (in shares) | 53,138 | 54,481 | 53,198 | ||||||||
Diluted earnings per common share (in USD per share) | $ 0.03 | $ (0.01) | $ 0.64 | $ 1.17 | $ 0.26 | $ 0.08 | $ 0.55 | $ 1.29 | $ 1.88 | $ 2.18 | $ 1.61 |
Stock options | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Dilutive potential common shares (in shares) | 114 | 327 | 809 | ||||||||
Restricted Stock Units (RSUs) | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Dilutive potential common shares (in shares) | 361 | 1,135 | 1,445 | ||||||||
Performance Shares | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Dilutive potential common shares (in shares) | 440 | 796 | 462 | ||||||||
Employee stock purchase plan | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Dilutive potential common shares (in shares) | 28 | 1 | 0 | ||||||||
Retained Earnings | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net income | $ 99,897 | $ 118,703 | $ 85,887 |
Earnings per Common Share - Ant
Earnings per Common Share - Antidilutive Shares (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Shares [Line Items] | |||
Antidilutive shares (in shares) | 813 | 163 | 275 |
Stock options | |||
Antidilutive Shares [Line Items] | |||
Antidilutive shares (in shares) | 0 | 0 | 56 |
Restricted Stock Units (RSUs) | |||
Antidilutive Shares [Line Items] | |||
Antidilutive shares (in shares) | 354 | 20 | 20 |
Performance Shares | |||
Antidilutive Shares [Line Items] | |||
Antidilutive shares (in shares) | 459 | 143 | 199 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | $ 277,439 | $ 201,183 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 10,012 | |
Negotiable certificate of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 15,000 | |
Agency bond securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 20,000 | 19,693 |
Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 4,342 | 483 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 32,052 | 79,194 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 277,439 | 201,183 |
Contingent consideration | 9,300 | 15,800 |
Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 10,012 | |
Recurring | Negotiable certificate of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 15,000 | |
Recurring | Agency bond securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 20,000 | 19,693 |
Recurring | Agency mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 211,033 | 86,813 |
Recurring | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 4,342 | 483 |
Recurring | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 32,052 | 79,194 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | 0 |
Contingent consideration | 0 | 0 |
Recurring | Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | |
Recurring | Level 1 | Negotiable certificate of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | |
Recurring | Level 1 | Agency bond securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | 0 |
Recurring | Level 1 | Agency mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | 0 |
Recurring | Level 1 | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | 0 |
Recurring | Level 1 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | 0 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 277,439 | 201,183 |
Contingent consideration | 0 | 0 |
Recurring | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 10,012 | |
Recurring | Level 2 | Negotiable certificate of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 15,000 | |
Recurring | Level 2 | Agency bond securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 20,000 | 19,693 |
Recurring | Level 2 | Agency mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 211,033 | 86,813 |
Recurring | Level 2 | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 4,342 | 483 |
Recurring | Level 2 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 32,052 | 79,194 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | 0 |
Contingent consideration | 9,300 | 15,800 |
Recurring | Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | |
Recurring | Level 3 | Negotiable certificate of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | |
Recurring | Level 3 | Agency bond securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | 0 |
Recurring | Level 3 | Agency mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | 0 |
Recurring | Level 3 | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | 0 |
Recurring | Level 3 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | $ 0 | $ 0 |
Fair Value Measurements - Conti
Fair Value Measurements - Contingent Consideration Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Payments of contingent consideration | $ (4,634) | $ (4,856) | $ (3,104) |
Change in fair value of contingent consideration | 1,866 | (3,298) | 9,672 |
Contingent Consideration | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value measurement, beginning of period | 15,800 | 17,358 | 8,634 |
Issuance | 0 | 0 | 21,500 |
Payments of contingent consideration | (3,104) | ||
Change in fair value of contingent consideration | (1,866) | 3,298 | (9,672) |
Fair value measurement, end of period | $ 9,300 | $ 15,800 | $ 17,358 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans to bank customers, net of allowance | $ 21,417 | $ 21,363 |
Deposits | 1,175,341 | 1,005,485 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans to bank customers, net of allowance | 21,417 | 21,363 |
Deposits | 1,175,341 | 1,005,485 |
Debt | 35,000 | 58,705 |
Level 3 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans to bank customers, net of allowance | 19,563 | 21,088 |
Level 2 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposits | 1,175,298 | 1,005,435 |
Debt | $ 35,000 | $ 58,705 |
Concentrations of Credit Risk (
Concentrations of Credit Risk (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Utah | |
Concentration Risk [Line Items] | |
Concentration risk | 92.30% |
Provo, Utah | |
Concentration Risk [Line Items] | |
Concentration risk | 42.30% |
Defined Contribution Plan (Deta
Defined Contribution Plan (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)yr | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Defined Contribution Plan [Abstract] | |||
Minimum age (in years) | yr | 21 | ||
Defined contribution plan, employer matching contribution, percent of match | 50.00% | ||
Defined contribution plan, maximum annual contribution per employee | 5.00% | ||
Defined contribution plan, cost | $ | $ 2.2 | $ 1.7 | $ 1.1 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease expense | $ 11.3 | ||
Operating lease expense | $ 7.6 | $ 7.2 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 6 years |
Leases - Supplemental informati
Leases - Supplemental information related to our ROU assets and related lease liabilities (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for operating lease liabilities (in thousands) | $ 8,850 |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 1 month 6 days |
Operating Lease, Weighted Average Discount Rate, Percent | 4.70% |
Leases - Maturities of Operatin
Leases - Maturities of Operating Leases (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leases | |
2020 | $ 9,846 |
2021 | 9,737 |
2022 | 8,734 |
2023 | 3,464 |
2024 | 3,464 |
Thereafter | 1,732 |
Payments due | 36,977 |
Less: imputed interest | (3,768) |
Total lease liabilities | $ 33,209 |
Commitments and Contingencies -
Commitments and Contingencies - Purchase Commitments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2020 | $ 17,008 |
2021 | 11,308 |
2022 | 3,425 |
2023 | 825 |
Total of future commitments | $ 32,566 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | ||
Oct. 31, 2018 | Jun. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | ||||
Loss contingency accrual, provision | $ 26,000 | |||
Settled Litigation | ||||
Loss Contingencies [Line Items] | ||||
Settlement, amount awarded to other party | $ 13,500 | |||
UniRush, LLC | ||||
Loss Contingencies [Line Items] | ||||
Contingent consideration, earn-out payable | $ 4,000 | |||
Recurring | ||||
Loss Contingencies [Line Items] | ||||
Contingent consideration | 9,300 | $ 15,800 | ||
Recurring | Level 3 | ||||
Loss Contingencies [Line Items] | ||||
Contingent consideration | $ 9,300 | $ 15,800 |
Significant Customer Concentr_3
Significant Customer Concentration (Details) - Walmart - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Sales Revenue, Net | |||
Concentration Risk [Line Items] | |||
Concentration risk | 34.00% | 36.00% | 40.00% |
Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk | 13.00% | 18.00% |
Regulatory Requirements (Detail
Regulatory Requirements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Percentage of cash and cash equivalents on hand to insured deposits | 100.00% | |
Green Dot Corporation | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier One Leverage Capital | $ 400,445 | $ 353,047 |
Tier One Leverage Capital to Average Assets | 22.20% | 20.10% |
Tier One Leverage Capital Required to be Well Capitalized | 4.00% | 4.00% |
Tier One Common Equity | $ 400,445 | $ 353,047 |
Tier One Common Equity to Average Assets | 70.50% | 88.80% |
Tier One Common Equity Required For Capital Adequacy to Average Assets | 4.50% | 4.50% |
Tier One Risk Based Capital | $ 400,445 | $ 353,047 |
Tier One Risk Based Capital to Risk Weighted Assets | 70.50% | 88.80% |
Tier One Risk Based Capital Required to be Well Capitalized | 6.00% | 6.00% |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 6.00% | 6.00% |
Capital | $ 404,469 | $ 357,092 |
Capital to Risk Weighted Assets | 71.20% | 89.80% |
Capital Required to be Well Capitalized | 8.00% | 8.00% |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% |
Green Dot Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier One Leverage Capital | $ 204,141 | $ 172,518 |
Tier One Leverage Capital to Average Assets | 13.90% | 11.70% |
Tier One Leverage Capital Required to be Well Capitalized | 4.00% | 4.00% |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | 5.00% |
Tier One Common Equity | $ 204,141 | $ 172,518 |
Tier One Common Equity to Average Assets | 82.80% | 100.80% |
Tier One Common Equity Required For Capital Adequacy to Average Assets | 4.50% | 4.50% |
Tier One Common Equity Capital Required to be Well Capitalized to Average Assets | 6.50% | 6.50% |
Tier One Risk Based Capital | $ 204,141 | $ 172,518 |
Tier One Risk Based Capital to Risk Weighted Assets | 82.80% | 100.80% |
Tier One Risk Based Capital Required to be Well Capitalized | 6.00% | 6.00% |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 8.00% |
Capital | $ 205,548 | $ 173,838 |
Capital to Risk Weighted Assets | 83.40% | 101.50% |
Capital Required to be Well Capitalized | 8.00% | 8.00% |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% |
Selected Unaudited Quarterly _3
Selected Unaudited Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total operating revenues | $ 249,307 | $ 240,448 | $ 278,326 | $ 340,514 | $ 245,108 | $ 236,333 | $ 263,792 | $ 320,342 | $ 1,108,595 | $ 1,065,575 | $ 901,123 |
Total operating expenses | 249,550 | 242,635 | 234,363 | 259,129 | 229,712 | 235,662 | 231,168 | 238,618 | 985,677 | 935,160 | 791,827 |
Operating income | (243) | (2,187) | 43,963 | 81,385 | 15,396 | 671 | 32,624 | 81,724 | 122,918 | 130,415 | 109,296 |
Interest expense, net | 89 | 112 | 165 | 1,471 | 3,067 | 991 | 1,280 | 1,260 | 1,837 | 6,598 | 5,838 |
Income before income taxes | (332) | (2,299) | 43,798 | 79,914 | 12,329 | (320) | 31,344 | 80,464 | 121,081 | 123,817 | 103,458 |
Income tax expense | (2,025) | (1,768) | 9,106 | 15,871 | (1,943) | (4,893) | 1,517 | 10,433 | 21,184 | 5,114 | 17,571 |
Net income | $ 1,693 | $ (531) | $ 34,692 | $ 64,043 | $ 14,272 | $ 4,573 | $ 29,827 | $ 70,031 | $ 99,897 | $ 118,703 | $ 85,887 |
Basic earnings per common share (in USD per share) | $ 0.03 | $ (0.01) | $ 0.66 | $ 1.21 | $ 0.27 | $ 0.09 | $ 0.57 | $ 1.36 | $ 1.91 | $ 2.27 | $ 1.70 |
Diluted earnings per common share (in USD per share) | $ 0.03 | $ (0.01) | $ 0.64 | $ 1.17 | $ 0.26 | $ 0.08 | $ 0.55 | $ 1.29 | $ 1.88 | $ 2.18 | $ 1.61 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of reportable segments (in segments) | segment | 2 | ||||||||||
Total operating revenues | $ 249,307 | $ 240,448 | $ 278,326 | $ 340,514 | $ 245,108 | $ 236,333 | $ 263,792 | $ 320,342 | $ 1,108,595 | $ 1,065,575 | $ 901,123 |
Total operating expenses | 249,550 | 242,635 | 234,363 | 259,129 | 229,712 | 235,662 | 231,168 | 238,618 | 985,677 | 935,160 | 791,827 |
Operating income | $ (243) | $ (2,187) | $ 43,963 | $ 81,385 | $ 15,396 | $ 671 | $ 32,624 | $ 81,724 | 122,918 | 130,415 | 109,296 |
Operating Segments | Account Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | 842,967 | 843,905 | 703,386 | ||||||||
Total operating expenses | 696,409 | 643,714 | 549,858 | ||||||||
Operating income | 146,558 | 200,191 | 153,528 | ||||||||
Operating Segments | Processing and Settlement Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | 296,721 | 253,360 | 229,133 | ||||||||
Total operating expenses | 202,713 | 179,037 | 165,961 | ||||||||
Operating income | 94,008 | 74,323 | 63,172 | ||||||||
Corporate And Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | (31,093) | (31,690) | (31,396) | ||||||||
Total operating expenses | 86,555 | 112,409 | 76,008 | ||||||||
Operating income | $ (117,648) | $ (144,099) | $ (107,404) |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Jan. 02, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Subsequent Event [Line Items] | |||
Common stock, shares, issued (in shares) | 51,807,000 | 52,917,000 | |
Walmart Program Agreement | |||
Subsequent Event [Line Items] | |||
Walmart program agreement, automatic renewal clause period | 1 year | ||
Walmart Program Agreement | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Ownership percentage | 20.00% | ||
Capital contributions, authorized amount | $ 35 | ||
Limited partners' contributed capital period (in years) | 5 years | ||
Walmart Program Agreement | Private Placement | Common Class A | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Common stock, shares, issued (in shares) | 975,000 |