Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
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, $0.001 par value | |
Trading Symbol | GDOT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 52,979,149 | |
Entity Registrant Name | GREEN DOT CORP | |
Entity Central Index Key | 0001386278 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Unrestricted cash and cash equivalents | $ 1,563,740 | $ 1,063,426 |
Restricted cash | 2,567 | 2,728 |
Investment securities available-for-sale, at fair value | 10,003 | 10,020 |
Settlement assets | 281,197 | 239,222 |
Accounts receivable, net | 61,590 | 59,543 |
Prepaid expenses and other assets | 57,071 | 66,183 |
Income tax receivable | 1,584 | 870 |
Total current assets | 1,977,752 | 1,441,992 |
Investment securities available-for-sale, at fair value | 297,522 | 267,419 |
Loans to bank customers, net of allowance for loan losses of $1,057 and $1,166 as of March 31, 2020 and December 31, 2019, respectively | 19,641 | 21,417 |
Prepaid expenses and other assets | 46,038 | 10,991 |
Property and equipment, net | 147,530 | 145,476 |
Operating lease right-of-use assets | 25,043 | 26,373 |
Deferred expenses | 10,502 | 16,891 |
Net deferred tax assets | 9,097 | 9,037 |
Goodwill and intangible assets | 513,324 | 520,994 |
Total assets | 3,046,449 | 2,460,590 |
Current liabilities: | ||
Accounts payable | 37,366 | 37,876 |
Deposits | 1,616,355 | 1,175,341 |
Obligations to customers | 84,044 | 69,377 |
Settlement obligations | 5,892 | 13,251 |
Amounts due to card issuing banks for overdrawn accounts | 291 | 380 |
Other accrued liabilities | 118,602 | 107,842 |
Operating lease liabilities | 8,052 | 8,764 |
Deferred revenue | 19,094 | 28,355 |
Income tax payable | 16,607 | 3,948 |
Total current liabilities | 1,906,303 | 1,445,134 |
Other accrued liabilities | 9,997 | 10,883 |
Operating lease liabilities | 23,096 | 24,445 |
Line of credit | 100,000 | 35,000 |
Net deferred tax liabilities | 19,048 | 17,772 |
Total liabilities | 2,058,444 | 1,533,234 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Class A common stock, $0.001 par value; 100,000 shares authorized as of March 31, 2020 and December 31, 2019; 52,854 and 51,807 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively | 53 | 52 |
Additional paid-in capital | 306,151 | 296,224 |
Retained earnings | 675,604 | 629,040 |
Accumulated other comprehensive income | 6,197 | 2,040 |
Total stockholders’ equity | 988,005 | 927,356 |
Total liabilities and stockholders’ equity | $ 3,046,449 | $ 2,460,590 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses | $ 1,057 | $ 1,166 |
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) | 52,854,000 | 51,807,000 |
Common stock, shares outstanding (in shares) | 52,854,000 | 51,807,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating revenues: | ||
Total operating revenues | $ 362,169 | $ 340,514 |
Operating expenses: | ||
Sales and marketing expenses | 116,738 | 98,701 |
Compensation and benefits expenses | 53,065 | 61,475 |
Processing expenses | 71,095 | 51,632 |
Other general and administrative expenses | 62,422 | 47,321 |
Total operating expenses | 303,320 | 259,129 |
Operating income | 58,849 | 81,385 |
Interest expense, net | 49 | 1,471 |
Income before income taxes | 58,800 | 79,914 |
Income tax expense | 11,955 | 15,871 |
Net income | $ 46,845 | $ 64,043 |
Basic earnings per common share (in usd per share) | $ 0.89 | $ 1.21 |
Diluted earnings per common share (in usd per share) | $ 0.87 | $ 1.17 |
Basic weighted-average common shares issued and outstanding (in shares) | 51,894 | 53,050 |
Diluted weighted-average common shares issued and outstanding (in shares) | 52,673 | 54,551 |
Card revenues and other fees | ||
Operating revenues | $ 141,394 | $ 129,577 |
Processing and settlement service revenues | ||
Operating revenues | 123,066 | 107,579 |
Interchange revenues | ||
Operating revenues | 90,866 | 92,541 |
Interest income, net | ||
Operating revenues | $ 6,843 | $ 10,817 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 46,845 | $ 64,043 |
Other comprehensive income | ||
Unrealized holding gain, net of tax | 4,157 | 1,166 |
Comprehensive income | $ 51,002 | $ 65,209 |
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 |
Beginning balance (in shares) at Dec. 31, 2018 | 52,917 | ||||
Beginning balance 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) | 231 | ||||
Common stock issued under stock plans, net of withholdings and related tax effects | (11,121) | (11,121) | |||
Stock-based compensation | 14,815 | 14,815 | |||
Net income (loss) | 64,043 | 64,043 | |||
Other comprehensive income (loss) | 1,166 | 1,166 | |||
Ending balance (in shares) at Mar. 31, 2019 | 53,148 | ||||
Ending balance at Mar. 31, 2019 | 978,715 | $ 53 | 384,447 | 593,186 | 1,029 |
Beginning balance (in shares) at Dec. 31, 2019 | 51,807 | ||||
Beginning balance at Dec. 31, 2019 | 927,356 | $ 52 | 296,224 | 629,040 | 2,040 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issued under stock plans, net of withholdings and related tax effects (in shares) | 72 | ||||
Common stock issued under stock plans, net of withholdings and related tax effects | (1,457) | (1,457) | |||
Stock-based compensation | 11,385 | 11,385 | |||
Walmart shares issuance (in shares) | 975 | ||||
Walmart restricted shares | 0 | $ 1 | (1) | ||
Net income (loss) | 46,845 | 46,845 | |||
Other comprehensive income (loss) | 4,157 | 4,157 | |||
Ending balance (in shares) at Mar. 31, 2020 | 52,854 | ||||
Ending balance at Mar. 31, 2020 | $ 988,005 | $ 53 | $ 306,151 | $ 675,604 | $ 6,197 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities | ||
Net income | $ 46,845 | $ 64,043 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property, equipment and internal-use software | 13,697 | 10,882 |
Amortization of intangible assets | 7,279 | 8,174 |
Provision for uncollectible overdrawn accounts from purchase transactions | 1,316 | 2,496 |
Employee stock-based compensation | 11,385 | 14,815 |
Amortization of premium (discount) on available-for-sale investment securities | 138 | (140) |
Amortization of deferred financing costs | 42 | 996 |
Impairment of capitalized software | 0 | 100 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (3,363) | 4,338 |
Prepaid expenses and other assets | 9,023 | 6,974 |
Deferred expenses | 6,389 | 8,168 |
Accounts payable and other accrued liabilities | 9,859 | (10,217) |
Deferred revenue | (9,355) | (10,718) |
Income tax receivable/payable | 11,805 | 15,729 |
Other, net | (930) | (255) |
Net cash provided by operating activities | 104,130 | 115,385 |
Investing activities | ||
Purchases of available-for-sale investment securities | (60,267) | (35,782) |
Proceeds from maturities of available-for-sale securities | 25,509 | 12,948 |
Proceeds from sales of available-for-sale securities | 10,047 | 101 |
Payments for acquisition of property and equipment | (15,743) | (19,312) |
Net decrease in loans | 1,584 | 1,754 |
Investment in TailFin Labs, LLC | (35,000) | 0 |
Net cash used in investing activities | (73,870) | (40,291) |
Financing activities | ||
Repayments of borrowings from notes payable | 0 | (60,000) |
Borrowings on revolving line of credit | 100,000 | 0 |
Repayments on revolving line of credit | (35,000) | 0 |
Proceeds from exercise of options | 23 | 705 |
Taxes paid related to net share settlement of equity awards | (1,480) | (11,826) |
Net increase in deposits | 442,017 | 620,998 |
Net decrease in obligations to customers | (34,667) | (39,364) |
Contingent consideration payments | (1,000) | 0 |
Net cash provided by financing activities | 469,893 | 510,513 |
Net increase in unrestricted cash, cash equivalents and restricted cash | 500,153 | 585,607 |
Unrestricted cash, cash equivalents and restricted cash, beginning of period | 1,066,154 | 1,095,218 |
Unrestricted cash, cash equivalents and restricted cash, end of period | 1,566,307 | 1,680,825 |
Cash paid for interest | 283 | 1,094 |
Cash (refund from)/paid for income taxes | (95) | 38 |
Total unrestricted cash, cash equivalents and restricted cash, end of period | $ 1,566,307 | $ 1,680,825 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2020 | |
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 | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America, or GAAP. We consolidated our wholly-owned subsidiaries and eliminated all significant intercompany balances and transactions. We have also prepared the accompanying unaudited consolidated financial statements in conformity with the instructions to Form 10-Q and Article 10 of Regulation S-X and, consequently, they do not include all of the annual disclosures required by GAAP. Reference is made to our Annual Report on Form 10-K for the year ended December 31, 2019 for additional disclosures, including a summary of our significant accounting policies. There have been no material changes to our significant accounting policies during the three months ended March 31, 2020, other than the adoption of the accounting pronouncements discussed herein. In our opinion, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of normal and recurring items, except as otherwise noted, necessary for the fair presentation of our financial position, results of operations and cash flows for the interim periods presented. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Future events and their effects cannot be predicted with certainty; accordingly, accounting estimates require the exercise of judgment. These financial statements were prepared using information reasonably available as of March 31, 2020 and through the date of this Report. The accounting estimates used in the preparation of the Company’s consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes. Actual results may differ from these estimates due to the uncertainty around the magnitude duration and effects of the COVID-19 pandemic, as well as other factors. Recent Accounting Pronouncements Recently adopted accounting pronouncements 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 Note 2—Summary of Significant Accounting Policies (continued) 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 ASU 2016-13 using the modified retrospective method for all financial assets measured at amortized cost. Results for periods after January 1, 2020 are presented under ASU 2016-13 while prior period amounts continue to be reported under previously applicable accounting standards. The adoption of ASU 2016-13 resulted in an adjustment of approximately $0.3 million, net of tax, to beginning retained earnings, the effect of which we do not consider material to our consolidated financial statements. Most of our financial assets within the scope of ASU 2016-13 are considered highly short-term in nature and therefore, we are less susceptible to risks and uncertainty of credit losses over extended periods of time. The adoption of ASU 2016-13 did not result in any material changes to our methods for developing our allowance for credit losses or the information we assess in developing our current estimate of expected credit losses. See Notes 4, 5 and 6 to these consolidated financial statements for additional information on our financial assets within scope of the new accounting standard. 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 provisions of ASU 2017-04 on January 1, 2020, the effect of which did not have a material impact on our consolidated financial statements. Recently issued accounting pronouncements not yet adopted |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues 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: Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Account Services Processing and Settlement Services Account Services Processing and Settlement Services Timing of revenue recognition (In thousands) Transferred at a point in time $ 124,120 $ 123,066 $ 140,922 $ 107,576 Transferred over time 107,189 951 79,767 1,432 Operating revenues (1) $ 231,309 $ 124,017 $ 220,689 $ 109,008 (1) Excludes net interest income, a component of total operating revenues, as it is outside the scope of ASC 606, Revenues Within our Account Services segment, revenues recognized at a point in time are comprised principally 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. Note 3—Revenues (continued) Refer to Note 18 — 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. 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 $17.0 million and $21.2 million in revenue for the three months ended March 31, 2020 and 2019, respectively, that were included in deferred revenue at the beginning of the 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. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Our available-for-sale investment securities were as follows: Amortized cost Gross unrealized gains Gross unrealized losses Fair value (In thousands) March 31, 2020 Corporate bonds $ 10,000 $ 21 $ — $ 10,021 Agency bond securities 15,000 50 — 15,050 Agency mortgage-backed securities 250,387 8,319 (153) 258,553 Municipal bonds 4,275 — (76) 4,199 Asset-backed securities 19,868 89 (255) 19,702 Total investment securities $ 299,530 $ 8,479 $ (484) $ 307,525 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 As of March 31, 2020 and December 31, 2019, 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) March 31, 2020 Agency mortgage-backed securities $ 3,812 $ (86) $ 5,921 $ (67) $ 9,733 $ (153) Municipal bonds 4,109 (75) 89 (1) 4,198 (76) Asset-backed securities 9,739 (255) — — 9,739 (255) Total investment securities $ 17,660 $ (416) $ 6,010 $ (68) $ 23,670 $ (484) 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) Note 4—Investment Securities (continued) Our investments generally consist of highly rated securities, as our investment policy restricts our investments to highly liquid, low credit risk assets. For the three months ended March 31, 2020, we recorded a de minimis credit-related impairment loss on an individual security within our available-for-sale investment portfolio. Upon adoption of ASU 2016-13, we establish an allowance for credit losses limited by the amount that the fair value of the investment is less than its amortized cost, rather than a direct write down under previous GAAP. Any subsequent improvements in credit will be recognized in income through a reversal of the allowance established. We continue to record non-credit-related losses as a component of accumulated other comprehensive income or loss. We do not intend to sell our investments and we have determined that it is more likely than not that we will not be required to sell our investments before recovery of their amortized cost bases, which may be at maturity. We did not record any credit-related impairment losses during the three months ended March 31, 2019 on our available-for-sale investment securities. As of March 31, 2020, 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 $ 10,003 Due after one year through five years 10,000 10,021 Due after five years through ten years — — Due after ten years 9,275 9,246 Mortgage and asset-backed securities 270,255 278,255 Total investment securities $ 299,530 $ 307,525 The expected payments on mortgage-backed and asset-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations. |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable, net consisted of the following: March 31, 2020 December 31, 2019 (In thousands) Trade receivables $ 31,063 $ 14,512 Reserve for uncollectible trade receivables (168) (202) Net trade receivables 30,895 14,310 Overdrawn cardholder balances from purchase transactions 4,407 4,327 Reserve for uncollectible overdrawn accounts from purchase transactions (3,680) (3,398) Net overdrawn cardholder balances from purchase transactions 727 929 Overdrawn cardholder balances from maintenance fees 2,634 2,235 Total net overdrawn account balances due from cardholders 3,361 3,164 Receivables due from card issuing banks 5,637 5,758 Fee advances, net 5,354 26,268 Other receivables 16,343 10,043 Accounts receivable, net $ 61,590 $ 59,543 Our net overdrawn account balances due from cardholders are a result of purchase transactions that we honor or maintenance fee assessments, in each case, in excess of the funds in the cardholder’s account. Reserves for overdrawn account balances from purchase transactions are subject to our recent adoption of ASU 2016-13 and are included as a component of other general and administrative expenses on our consolidated statements of operations. Overdrawn cardholder balances from maintenance fee assessments are presented net of the consideration we expect to receive under ASC 606 and are recorded as contra-revenue within card revenues and other fees. The adoption of ASU 2016-13 did not result in any material changes to our methods for developing allowances for any component within our accounts receivable. Note 5—Accounts Receivable (continued) Activity in the reserve for uncollectible overdrawn accounts from purchase transactions consisted of the following: Three Months Ended March 31, 2020 2019 (In thousands) Balance, beginning of period $ 3,398 $ 2,710 Provision for uncollectible overdrawn accounts from purchase transactions 1,316 2,496 Charge-offs (1,034) (1,877) Balance, end of period $ 3,680 $ 3,329 |
Loans to Bank Customers
Loans to Bank Customers | 3 Months Ended |
Mar. 31, 2020 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans to Bank Customers | Loans to Bank Customers The following table presents total outstanding loans, gross of the related allowance for loan losses, and a summary of the related payment status: 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Total Current or Less Than 30 Days Past Due Total Outstanding (In thousands) March 31, 2020 Residential $ 3 $ — $ — $ 3 $ 4,476 $ 4,479 Commercial 15 6 — 21 471 492 Installment — 25 — 25 1,230 1,255 Secured credit card 679 754 1,586 3,019 11,453 14,472 Total loans $ 697 $ 785 $ 1,586 $ 3,068 $ 17,630 $ 20,698 Percentage of outstanding 3.4 % 3.8 % 7.7 % 14.8 % 85.2 % 100.0 % 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 % Nonperforming Loans The following table presents the carrying value, gross of the related allowance for loan losses, of our nonperforming loans. See Note 2 — Summary of Significant Accounting Policies to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2019 for further information on the criteria for classification as nonperforming. March 31, 2020 December 31, 2019 (In thousands) Residential $ 268 $ 290 Installment 139 147 Secured credit card 1,586 2,183 Total loans $ 1,993 $ 2,620 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. Note 6—Loans to Bank Customers (continued) Our secured credit card portfolio is collateralized by cash deposits made by each cardholder in an amount equal to the user's available credit limit, which mitigates risk of any significant credit losses we expect to incur. The table below presents the carrying value, gross of the related allowance for loan losses, of our loans within the primary credit quality indicators related to our loan portfolio: March 31, 2020 December 31, 2019 Non-Classified Classified Non-Classified Classified (In thousands) Residential $ 4,211 $ 268 $ 4,241 $ 290 Commercial 492 — 158 — Installment 1,081 174 1,058 189 Secured credit card 12,886 1,586 14,464 2,183 Total loans $ 18,670 $ 2,028 $ 19,921 $ 2,662 Impaired Loans and Troubled Debt Restructurings When, for economic or legal reasons related to a borrower’s financial difficulties, we grant a concession for other than an insignificant period of time to a borrower that we would not otherwise consider, the related loan is classified as a Troubled Debt Restructuring, or TDR. Our TDR modifications involve an extension of the maturity date at a stated interest rate lower than the current market rate for new debt with similar risk. As of March 31, 2020, none of our TDR modifications have been made in response to the COVID-19 pandemic. The following table presents our impaired loans and loans that we modified as TDRs as of March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Unpaid Principal Balance Carrying Value Unpaid Principal Balance Carrying Value (In thousands) Residential $ 268 $ 218 $ 290 $ 221 Installment 150 34 160 48 Allowance for Loan Losses Activity in the allowance for loan losses consisted of the following: Three Months Ended March 31, 2020 2019 (In thousands) Balance, beginning of period $ 1,166 $ 1,144 Provision for loans 192 666 Loans charged off (487) (912) Recoveries of loans previously charged off 186 50 Balance, end of period $ 1,057 $ 948 |
Employee Stock-Based Compensati
Employee Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Employee Stock-Based Compensation | Employee Stock-Based CompensationWe currently grant restricted equity awards to employees and directors under our 2010 Equity Incentive Plan. Additionally, through our 2010 Employee Stock Purchase Plan, employees are able to purchase shares of our Class A common stock at a discount through payroll deductions. We have reserved shares of our Class A common stock for issuance under these plans. Note 7—Employee Stock-Based Compensation (continued) Restricted Stock Units The following table summarizes restricted stock units subject to only service conditions granted under our 2010 Equity Incentive Plan: Three Months Ended March 31, 2020 2019 (In thousands, except per share data) Restricted stock units granted 1,234 35 Weighted-average grant-date fair value $ 26.50 $ 66.96 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. The actual number of shares subject to the award is determined at the end of the annual performance period and may range from 0% to 200% of the target shares granted. These awards generally 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 and the estimated performance that is expected to be achieved. The following table summarizes the performance-based restricted stock units granted under our 2010 Equity Incentive Plan: Three Months Ended March 31, 2020 2019 (In thousands, except per share data) Performance-based restricted stock units granted (1) 445 256 Weighted-average grant-date fair value $ 29.40 $ 57.51 (1) Performance awards granted also reflects, as applicable, the issuance of any shares awarded in excess of their original target amount based on the Compensation Committee's certification of completed performance years. The grant date fair value for these awards are based on the grant price at the time of the original award. Performance-Based Stock Options In connection with the hiring of our new Chief Executive Officer, we granted performance-based stock options with a seven five The following table summarizes the performance-based stock options granted: Three Months Ended March 31, 2020 (In thousands, except per share data) Performance-based stock options granted 1,000 Exercise price $ 23.83 Estimated weighted-average grant-date fair value $ 11.17 Note 7—Employee Stock-Based Compensation (continued) For purposes of these consolidated financial statements, the estimated weighted-average grant-date fair value was based on a provisional estimate using the following assumptions: Three Months Ended March 31, 2020 Risk-free interest rate 0.77 % Expected term (in years) (1) 7 Expected dividends — Expected volatility 53 % (1) Provisional estimate assumes no early exercise of options. The total stock-based compensation expense recognized was $11.4 million and $14.8 million for the three months ended March 31, 2020 and 2019, respectively. Total stock-based compensation expense includes amounts related to each of the awards discussed above and purchases made under our 2010 Employee Stock Purchase Plan, and reflects, as applicable, accelerated expense recognition associated with our retirement policy. |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2020 | |
Deposits [Abstract] | |
Deposits | Deposits Deposits are categorized as non-interest or interest-bearing deposits as follows: March 31, 2020 December 31, 2019 (In thousands) Non-interest bearing deposit accounts $ 1,583,865 $ 1,055,818 Interest-bearing deposit accounts Checking accounts 9,118 95,995 Savings 6,320 6,619 GPR deposits 12,207 11,892 Time deposits, denominations greater than or equal to $100 3,767 3,854 Time deposits, denominations less than $100 1,078 1,163 Total interest-bearing deposit accounts 32,490 119,523 Total deposits $ 1,616,355 $ 1,175,341 The scheduled contractual maturities for total time deposits are presented in the table below: March 31, 2020 (In thousands) Due in 2020 $ 1,582 Due in 2021 791 Due in 2022 1,211 Due in 2023 626 Due in 2024 452 Thereafter 183 Total time deposits $ 4,845 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt 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 credit facility provides for a $100.0 million five 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 March 31, 2020 was 2.00%. 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 March 31, 2020, 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 five Cash interest expense related to our debt was $0.2 million and $0.6 million for the three months ended March 31, 2020 and 2019, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense for the three months ended March 31, 2020 and 2019 differs from the amount computed by applying the statutory federal income tax rate to income before income taxes. The sources and tax effects of the differences are as follows: Three Months Ended March 31, 2020 2019 U.S. federal statutory tax rate 21.0 % 21.0 % State income taxes, net of federal tax benefit (1.1) 1.6 General business credits (6.6) (1.4) Employee stock-based compensation 2.1 (3.9) IRC 162(m) limitation 4.2 2.4 Nondeductible expenses 0.6 0.1 Other 0.1 0.1 Effective tax rate 20.3 % 19.9 % The effective tax rate for the three months ended March 31, 2020 and 2019 differs from the statutory federal income tax rate of 21%, primarily due to state income taxes, net of federal tax benefits, general business credits, employee stock-based compensation, and the Internal Revenue Code (IRC) 162(m) limitation on the deductibility of certain executive compensation. The increase in the effective tax rate for the three months ended March 31, 2020 as compared to the three months ended March 31, 2019 is primarily due to a $4.4 million decline in benefit on the recognition of excess tax benefits from stock-based compensation as we recognized a discrete tax expense related to tax shortfalls from stock based-compensation of $1.2 million for the three months ended March 31, 2020, compared to a $3.1 million excess tax benefit for the prior year comparable period. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act, among other things, includes certain income tax provisions for individuals and corporations; however, these benefits do not impact our current tax provision. We have made a policy election to account for Global Intangible Low-Taxed Income ("GILTI") in the year the GILTI tax is incurred. For the three months ended March 31, 2020, the provision for GILTI tax expense was not material to our financial statements. We establish a valuation allowance when we consider it more-likely-than-not that some portion or all of the deferred tax assets will not be realized. As of March 31, 2020, we maintained 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. As of March 31, 2019, we did not have a valuation allowance on any of our deferred tax assets as we believed it was more-likely-than-not that we would realize the benefits of our deferred tax assets. We are subject to examination by the Internal Revenue Service, or IRS, and various state tax authorities. We remain subject to examination of our federal income tax return for the years ended December 31, 2016 through 2019. We generally remain subject to examination of our various state income tax returns for a period of four to five years from the respective dates the returns were filed. As of March 31, 2020, 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. Of our total 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 the fourth quarter of 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 $16.3 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 10—Income Taxes (continued) As of March 31, 2020 and December 31, 2019, we had a liability of $9.7 million and $8.3 million, respectively, for unrecognized tax benefits related to various federal and state income tax matters excluding interest, penalties and related tax benefits. The reconciliation of the beginning unrecognized tax benefits balance to the ending balance is as follows: Three Months Ended March 31, 2020 2019 (In thousands) Beginning balance $ 8,398 $ 6,965 Increases related to positions taken during prior years 235 — Increases related to positions taken during the current year 1,200 1,569 Ending balance $ 9,833 $ 8,534 The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate $ 9,662 $ 8,485 As of March 31, 2020 and 2019, we recognized accrued interest and penalties related to unrecognized tax benefits of approximately $0.6 million and $0.4 million, respectively. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Stock Repurchase Program 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 and entered into an accelerated share repurchase agreement for $100 million in May 2019. In August 2019, we completed final settlement of shares purchased under this agreement, receiving in total approximately 2.1 million shares at an average repurchase price of $48.26. As of March 31, 2020, we have an authorized $50 million remaining under our current stock repurchase program for any additional repurchases. Walmart Restricted Shares |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share The calculation of basic and diluted EPS was as follows: Three Months Ended March 31, 2020 2019 (In thousands, except per share data) Basic earnings per Class A common share Numerator: Net income $ 46,845 $ 64,043 Income attributable to unvested Walmart restricted shares (808) — Net income allocated to Class A common stockholders $ 46,037 $ 64,043 Denominator: Weighted-average Class A shares issued and outstanding 51,894 53,050 Basic earnings per Class A common share $ 0.89 $ 1.21 Diluted earnings per Class A common share Numerator: Net income allocated to Class A common stockholders $ 46,037 $ 64,043 Re-allocated earnings 12 — Diluted net income allocated to Class A common stockholders $ 46,049 $ 64,043 Denominator: Weighted-average Class A shares issued and outstanding 51,894 53,050 Dilutive potential common shares: Stock options 57 168 Restricted stock units 338 679 Performance-based restricted stock units 351 641 Employee stock purchase plan 33 13 Diluted weighted-average Class A shares issued and outstanding 52,673 54,551 Diluted earnings per Class A common share $ 0.87 $ 1.17 The restricted shares issued to Walmart contain non-forfeitable rights to dividends and are considered participating securities for purposes of computing earnings per share pursuant to the two-class method. The computation above excludes income attributable to the unvested restricted shares from the numerator and excludes the dilutive impact of those underlying shares from the denominator. For the periods presented, we excluded certain restricted stock units and stock options outstanding (as applicable), 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. The following table shows the weighted-average number of shares excluded from the diluted EPS calculation as their effects were anti-dilutive: Three Months Ended March 31, 2020 2019 (In thousands) Class A common stock Options to purchase Class A common stock 98 — Restricted stock units 491 204 Performance-based restricted stock units 174 — Unvested Walmart restricted shares 910 — Total 1,673 204 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Under applicable accounting guidance, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We determine the fair values of our financial instruments based on the fair value hierarchy established under applicable accounting guidance, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs used to measure fair value. For more information regarding the fair value hierarchy and how we measure fair value, see Note 2–Summary of Significant Accounting Policies to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2019. As of March 31, 2020 and December 31, 2019, our assets and liabilities carried at fair value on a recurring basis were as follows: Level 1 Level 2 Level 3 Total Fair Value March 31, 2020 (In thousands) Assets Corporate bonds $ — $ 10,021 $ — $ 10,021 Agency bond securities — 15,050 — 15,050 Agency mortgage-backed securities — 258,553 — 258,553 Municipal bonds — 4,199 — 4,199 Asset-backed securities — 19,702 — 19,702 Total assets $ — $ 307,525 $ — $ 307,525 Liabilities Contingent consideration $ — $ — $ 8,300 $ 8,300 December 31, 2019 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 We based the fair value of our fixed income securities held as of March 31, 2020 and December 31, 2019 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 three months ended March 31, 2020 or 2019. The following table presents changes in our contingent consideration payable for the three months ended March 31, 2020 and 2019, which is categorized in Level 3 of the fair value hierarchy: Three Months Ended March 31, 2020 2019 (In thousands) Balance, beginning of period $ 9,300 $ 15,800 Payments of contingent consideration (1,000) — Balance, end of period $ 8,300 $ 15,800 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
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 to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2019 . 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, such as the earn-out associated with our acquisition of UniRush LLC ("UniRush") in 2017, is estimated through valuation models designed to estimate the probability of such contingent payments based on various assumptions. Estimated payments are discounted using present value techniques to arrive at an estimated fair value. Our contingent consideration payable is classified as Level 3 because we use unobservable inputs to estimate fair value, including the probability of achieving certain earnings thresholds and appropriate discount rates. Changes in fair value of contingent consideration are recorded through operating expenses. Debt The fair value of our revolving line of credit is based on borrowing rates currently available to a market participant for loans with similar terms or maturity. The carrying amount of our outstanding revolving line of credit 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 the revolving line of credit is classified as a Level 2 liability in the fair value hierarchy. Fair Value of Financial Instruments The carrying values and fair values of certain financial instruments that were not carried at fair value, excluding short-term financial instruments for which the carrying value approximates fair value, at March 31, 2020 and December 31, 2019 are presented in the table below. Note 14—Fair Value of Financial Instruments (continued) March 31, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Financial Assets Loans to bank customers, net of allowance $ 19,641 $ 18,115 $ 21,417 $ 19,563 Financial Liabilities Deposits $ 1,616,355 $ 1,616,300 $ 1,175,341 $ 1,175,298 Line of credit $ 100,000 $ 100,000 $ 35,000 $ 35,000 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
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. 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 $2.3 million and $1.9 million for the three months ended March 31, 2020 and 2019, 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: March 31, 2020 Cash paid for operating lease liabilities (in thousands) $ 2,475 Weighted average remaining lease term (years) 3.9 Weighted average discount rate 4.7 % Note 15—Leases (continued) Maturities of our operating lease liabilities as of March 31, 2020 is as follows: Operating Leases (In thousands) Remainder of 2020 $ 7,437 2021 9,839 2022 8,840 2023 3,500 2024 3,464 Thereafter 1,732 34,812 Less: imputed interest (3,664) Total lease liabilities $ 31,148 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 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. Other Legal 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, Note 16—Commitments and Contingencies (continued) and employees, under which we may be required to indemnify these persons for liabilities arising out of their relationship with us; and (iv) contracts under which we may be required to indemnify our retail distributors, suppliers, vendors and other parties with whom we have contracts against claims arising from certain of our actions, omissions, violations of law and/or infringement of patents, trademarks, copyrights and/or other intellectual property rights. Generally, a maximum obligation under these contracts is not explicitly stated. Because the obligated amounts associated with these types of agreements are not explicitly stated, the overall maximum amount of the obligation cannot be reasonably estimated. With the exception of overdrafts on cardholders’ accounts, historically, we have not been required to make payments under these and similar contingent obligations, and no liabilities have been recorded for these obligations in our consolidated balance sheets. For additional information regarding overdrafts on cardholders’ accounts, refer to Note 5 — Accounts Receivable. Financial Commitments 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 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. During the three months ended March 31, 2020, we made our first annual capital contribution to TailFin Labs of $35.0 million. As of March 31, 2020, this amount has been classified as a component of our long-term prepaid expenses and other assets on our consolidated balance sheet. On February 28, 2017, we completed our acquisition of all the membership interests of UniRush, an online direct-to-consumer GPR card and corporate payroll card provider. The transaction terms include an earn-out equal to the greater of (i) a specified percentage of the revenue generated by the online direct-to-consumer GPR card portfolio for the five-year period following the closing or (ii) $20 million, payable quarterly over five years. |
Significant Retailer Concentrat
Significant Retailer Concentrations | 3 Months Ended |
Mar. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Significant Retailer Concentrations | 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. Revenues derived from our products sold at retail distributors constituting greater than 10% of our total operating revenues were as follows: Three Months Ended March 31, 2020 2019 Walmart 25% 30% 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: March 31, 2020 December 31, 2019 Walmart * 13% * Constitutes less than 10% for the period presented. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
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, who is our Chief Executive Officer, 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 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. The following tables present certain financial information for each of our reportable segments for the periods then ended: Three Months Ended March 31, 2020 Account Services Processing and Settlement Services Corporate and Other Total (In thousands) Operating revenues $ 245,350 $ 125,630 $ (8,811) $ 362,169 Operating expenses 211,543 67,319 24,458 303,320 Operating income $ 33,807 $ 58,311 $ (33,269) $ 58,849 Three Months Ended March 31, 2019 Account Services Processing and Settlement Services Corporate and Other Total (In thousands) Operating revenues $ 239,633 $ 110,649 $ (9,768) $ 340,514 Operating expenses 176,787 54,515 27,827 259,129 Operating income $ 62,846 $ 56,134 $ (37,595) $ 81,385 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America, or GAAP. We consolidated our wholly-owned subsidiaries and eliminated all significant intercompany balances and transactions. |
Use of estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Future events and their effects cannot be predicted with certainty; accordingly, accounting estimates require the exercise of judgment. These financial statements were prepared using information reasonably available as of March 31, 2020 and through the date of this Report. The accounting estimates used in the preparation of the Company’s consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes. Actual results may differ from these estimates due to the uncertainty around the magnitude duration and effects of the COVID-19 pandemic, as well as other factors. |
Recent accounting pronouncements | Recent Accounting Pronouncements Recently adopted accounting pronouncements 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 Note 2—Summary of Significant Accounting Policies (continued) 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 ASU 2016-13 using the modified retrospective method for all financial assets measured at amortized cost. Results for periods after January 1, 2020 are presented under ASU 2016-13 while prior period amounts continue to be reported under previously applicable accounting standards. The adoption of ASU 2016-13 resulted in an adjustment of approximately $0.3 million, net of tax, to beginning retained earnings, the effect of which we do not consider material to our consolidated financial statements. Most of our financial assets within the scope of ASU 2016-13 are considered highly short-term in nature and therefore, we are less susceptible to risks and uncertainty of credit losses over extended periods of time. The adoption of ASU 2016-13 did not result in any material changes to our methods for developing our allowance for credit losses or the information we assess in developing our current estimate of expected credit losses. See Notes 4, 5 and 6 to these consolidated financial statements for additional information on our financial assets within scope of the new accounting standard. 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 provisions of ASU 2017-04 on January 1, 2020, the effect of which did not have a material impact on our consolidated financial statements. Recently issued accounting pronouncements not yet adopted |
Revenue from Contract with Customer | Within our Account Services segment, revenues recognized at a point in time are comprised principally 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. |
Fair value of financial instruments | 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 to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2019 . 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, such as the earn-out associated with our acquisition of UniRush LLC ("UniRush") in 2017, is estimated through valuation models designed to estimate the probability of such contingent payments based on various assumptions. Estimated payments are discounted using present value techniques to arrive at an estimated fair value. Our contingent consideration payable is classified as Level 3 because we use unobservable inputs to estimate fair value, including the probability of achieving certain earnings thresholds and appropriate discount rates. Changes in fair value of contingent consideration are recorded through operating expenses. Debt The fair value of our revolving line of credit is based on borrowing rates currently available to a market participant for loans with similar terms or maturity. The carrying amount of our outstanding revolving line of credit 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 the revolving line of credit is classified as a Level 2 liability in the fair value hierarchy. Fair Value of Financial Instruments |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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: Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Account Services Processing and Settlement Services Account Services Processing and Settlement Services Timing of revenue recognition (In thousands) Transferred at a point in time $ 124,120 $ 123,066 $ 140,922 $ 107,576 Transferred over time 107,189 951 79,767 1,432 Operating revenues (1) $ 231,309 $ 124,017 $ 220,689 $ 109,008 (1) Excludes net interest income, a component of total operating revenues, as it is outside the scope of ASC 606, Revenues |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of available-for-sale investment securities | Our available-for-sale investment securities were as follows: Amortized cost Gross unrealized gains Gross unrealized losses Fair value (In thousands) March 31, 2020 Corporate bonds $ 10,000 $ 21 $ — $ 10,021 Agency bond securities 15,000 50 — 15,050 Agency mortgage-backed securities 250,387 8,319 (153) 258,553 Municipal bonds 4,275 — (76) 4,199 Asset-backed securities 19,868 89 (255) 19,702 Total investment securities $ 299,530 $ 8,479 $ (484) $ 307,525 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 |
Schedule of available-for-sale securities, unrealized loss position | As of March 31, 2020 and December 31, 2019, 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) March 31, 2020 Agency mortgage-backed securities $ 3,812 $ (86) $ 5,921 $ (67) $ 9,733 $ (153) Municipal bonds 4,109 (75) 89 (1) 4,198 (76) Asset-backed securities 9,739 (255) — — 9,739 (255) Total investment securities $ 17,660 $ (416) $ 6,010 $ (68) $ 23,670 $ (484) 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) |
Schedule of maturity dates for available-for-sale investment securities | As of March 31, 2020, 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 $ 10,003 Due after one year through five years 10,000 10,021 Due after five years through ten years — — Due after ten years 9,275 9,246 Mortgage and asset-backed securities 270,255 278,255 Total investment securities $ 299,530 $ 307,525 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of accounts receivable | Accounts receivable, net consisted of the following: March 31, 2020 December 31, 2019 (In thousands) Trade receivables $ 31,063 $ 14,512 Reserve for uncollectible trade receivables (168) (202) Net trade receivables 30,895 14,310 Overdrawn cardholder balances from purchase transactions 4,407 4,327 Reserve for uncollectible overdrawn accounts from purchase transactions (3,680) (3,398) Net overdrawn cardholder balances from purchase transactions 727 929 Overdrawn cardholder balances from maintenance fees 2,634 2,235 Total net overdrawn account balances due from cardholders 3,361 3,164 Receivables due from card issuing banks 5,637 5,758 Fee advances, net 5,354 26,268 Other receivables 16,343 10,043 Accounts receivable, net $ 61,590 $ 59,543 Our net overdrawn account balances due from cardholders are a result of purchase transactions that we honor or maintenance fee assessments, in each case, in excess of the funds in the cardholder’s account. Reserves for overdrawn account balances from purchase transactions are subject to our recent adoption of ASU 2016-13 and are included as a component of other general and administrative expenses on our consolidated statements of operations. Overdrawn cardholder balances from maintenance fee assessments are presented net of the consideration we expect to receive under ASC 606 and are recorded as contra-revenue within card revenues and other fees. The adoption of ASU 2016-13 did not result in any material changes to our methods for developing allowances for any component within our accounts receivable. Note 5—Accounts Receivable (continued) Activity in the reserve for uncollectible overdrawn accounts from purchase transactions consisted of the following: Three Months Ended March 31, 2020 2019 (In thousands) Balance, beginning of period $ 3,398 $ 2,710 Provision for uncollectible overdrawn accounts from purchase transactions 1,316 2,496 Charge-offs (1,034) (1,877) Balance, end of period $ 3,680 $ 3,329 |
Loans to Bank Customers (Tables
Loans to Bank Customers (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of past due financing receivables | The following table presents total outstanding loans, gross of the related allowance for loan losses, and a summary of the related payment status: 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Total Current or Less Than 30 Days Past Due Total Outstanding (In thousands) March 31, 2020 Residential $ 3 $ — $ — $ 3 $ 4,476 $ 4,479 Commercial 15 6 — 21 471 492 Installment — 25 — 25 1,230 1,255 Secured credit card 679 754 1,586 3,019 11,453 14,472 Total loans $ 697 $ 785 $ 1,586 $ 3,068 $ 17,630 $ 20,698 Percentage of outstanding 3.4 % 3.8 % 7.7 % 14.8 % 85.2 % 100.0 % 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 % The following table presents the carrying value, gross of the related allowance for loan losses, of our nonperforming loans. See Note 2 — Summary of Significant Accounting Policies to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2019 for further information on the criteria for classification as nonperforming. March 31, 2020 December 31, 2019 (In thousands) Residential $ 268 $ 290 Installment 139 147 Secured credit card 1,586 2,183 Total loans $ 1,993 $ 2,620 |
Schedule of credit quality indicators related to loan portfolio | The table below presents the carrying value, gross of the related allowance for loan losses, of our loans within the primary credit quality indicators related to our loan portfolio: March 31, 2020 December 31, 2019 Non-Classified Classified Non-Classified Classified (In thousands) Residential $ 4,211 $ 268 $ 4,241 $ 290 Commercial 492 — 158 — Installment 1,081 174 1,058 189 Secured credit card 12,886 1,586 14,464 2,183 Total loans $ 18,670 $ 2,028 $ 19,921 $ 2,662 |
Schedule of troubled debt restructurings | The following table presents our impaired loans and loans that we modified as TDRs as of March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Unpaid Principal Balance Carrying Value Unpaid Principal Balance Carrying Value (In thousands) Residential $ 268 $ 218 $ 290 $ 221 Installment 150 34 160 48 |
Schedule of allowance for loan losses | Activity in the allowance for loan losses consisted of the following: Three Months Ended March 31, 2020 2019 (In thousands) Balance, beginning of period $ 1,166 $ 1,144 Provision for loans 192 666 Loans charged off (487) (912) Recoveries of loans previously charged off 186 50 Balance, end of period $ 1,057 $ 948 |
Employee Stock-Based Compensa_2
Employee Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of awards | The following table summarizes restricted stock units subject to only service conditions granted under our 2010 Equity Incentive Plan: Three Months Ended March 31, 2020 2019 (In thousands, except per share data) Restricted stock units granted 1,234 35 Weighted-average grant-date fair value $ 26.50 $ 66.96 The following table summarizes the performance-based restricted stock units granted under our 2010 Equity Incentive Plan: Three Months Ended March 31, 2020 2019 (In thousands, except per share data) Performance-based restricted stock units granted (1) 445 256 Weighted-average grant-date fair value $ 29.40 $ 57.51 (1) Performance awards granted also reflects, as applicable, the issuance of any shares awarded in excess of their original target amount based on the Compensation Committee's certification of completed performance years. The grant date fair value for these awards are based on the grant price at the time of the original award. The following table summarizes the performance-based stock options granted: Three Months Ended March 31, 2020 (In thousands, except per share data) Performance-based stock options granted 1,000 Exercise price $ 23.83 Estimated weighted-average grant-date fair value $ 11.17 Note 7—Employee Stock-Based Compensation (continued) |
Weighted-average assumptions used to estimate stock option fair value | provisional estimate using the following assumptions: Three Months Ended March 31, 2020 Risk-free interest rate 0.77 % Expected term (in years) (1) 7 Expected dividends — Expected volatility 53 % (1) Provisional estimate assumes no early exercise of options. |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Deposits [Abstract] | |
Schedule of deposits | Deposits are categorized as non-interest or interest-bearing deposits as follows: March 31, 2020 December 31, 2019 (In thousands) Non-interest bearing deposit accounts $ 1,583,865 $ 1,055,818 Interest-bearing deposit accounts Checking accounts 9,118 95,995 Savings 6,320 6,619 GPR deposits 12,207 11,892 Time deposits, denominations greater than or equal to $100 3,767 3,854 Time deposits, denominations less than $100 1,078 1,163 Total interest-bearing deposit accounts 32,490 119,523 Total deposits $ 1,616,355 $ 1,175,341 |
Schedule of maturities for total time deposits | The scheduled contractual maturities for total time deposits are presented in the table below: March 31, 2020 (In thousands) Due in 2020 $ 1,582 Due in 2021 791 Due in 2022 1,211 Due in 2023 626 Due in 2024 452 Thereafter 183 Total time deposits $ 4,845 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of federal tax rate and actual income tax expense reconciliation | The sources and tax effects of the differences are as follows: Three Months Ended March 31, 2020 2019 U.S. federal statutory tax rate 21.0 % 21.0 % State income taxes, net of federal tax benefit (1.1) 1.6 General business credits (6.6) (1.4) Employee stock-based compensation 2.1 (3.9) IRC 162(m) limitation 4.2 2.4 Nondeductible expenses 0.6 0.1 Other 0.1 0.1 Effective tax rate 20.3 % 19.9 % |
Schedule of income tax contingencies | The reconciliation of the beginning unrecognized tax benefits balance to the ending balance is as follows: Three Months Ended March 31, 2020 2019 (In thousands) Beginning balance $ 8,398 $ 6,965 Increases related to positions taken during prior years 235 — Increases related to positions taken during the current year 1,200 1,569 Ending balance $ 9,833 $ 8,534 The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate $ 9,662 $ 8,485 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted EPS | The calculation of basic and diluted EPS was as follows: Three Months Ended March 31, 2020 2019 (In thousands, except per share data) Basic earnings per Class A common share Numerator: Net income $ 46,845 $ 64,043 Income attributable to unvested Walmart restricted shares (808) — Net income allocated to Class A common stockholders $ 46,037 $ 64,043 Denominator: Weighted-average Class A shares issued and outstanding 51,894 53,050 Basic earnings per Class A common share $ 0.89 $ 1.21 Diluted earnings per Class A common share Numerator: Net income allocated to Class A common stockholders $ 46,037 $ 64,043 Re-allocated earnings 12 — Diluted net income allocated to Class A common stockholders $ 46,049 $ 64,043 Denominator: Weighted-average Class A shares issued and outstanding 51,894 53,050 Dilutive potential common shares: Stock options 57 168 Restricted stock units 338 679 Performance-based restricted stock units 351 641 Employee stock purchase plan 33 13 Diluted weighted-average Class A shares issued and outstanding 52,673 54,551 Diluted earnings per Class A common share $ 0.87 $ 1.17 |
Schedule of antidilutive shares | The following table shows the weighted-average number of shares excluded from the diluted EPS calculation as their effects were anti-dilutive: Three Months Ended March 31, 2020 2019 (In thousands) Class A common stock Options to purchase Class A common stock 98 — Restricted stock units 491 204 Performance-based restricted stock units 174 — Unvested Walmart restricted shares 910 — Total 1,673 204 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities carried at fair value | As of March 31, 2020 and December 31, 2019, our assets and liabilities carried at fair value on a recurring basis were as follows: Level 1 Level 2 Level 3 Total Fair Value March 31, 2020 (In thousands) Assets Corporate bonds $ — $ 10,021 $ — $ 10,021 Agency bond securities — 15,050 — 15,050 Agency mortgage-backed securities — 258,553 — 258,553 Municipal bonds — 4,199 — 4,199 Asset-backed securities — 19,702 — 19,702 Total assets $ — $ 307,525 $ — $ 307,525 Liabilities Contingent consideration $ — $ — $ 8,300 $ 8,300 December 31, 2019 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 |
Schedule of changes in contingent consideration payable | The following table presents changes in our contingent consideration payable for the three months ended March 31, 2020 and 2019, which is categorized in Level 3 of the fair value hierarchy: Three Months Ended March 31, 2020 2019 (In thousands) Balance, beginning of period $ 9,300 $ 15,800 Payments of contingent consideration (1,000) — Balance, end of period $ 8,300 $ 15,800 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets not carried at fair value | The carrying values and fair values of certain financial instruments that were not carried at fair value, excluding short-term financial instruments for which the carrying value approximates fair value, at March 31, 2020 and December 31, 2019 are presented in the table below. Note 14—Fair Value of Financial Instruments (continued) March 31, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Financial Assets Loans to bank customers, net of allowance $ 19,641 $ 18,115 $ 21,417 $ 19,563 Financial Liabilities Deposits $ 1,616,355 $ 1,616,300 $ 1,175,341 $ 1,175,298 Line of credit $ 100,000 $ 100,000 $ 35,000 $ 35,000 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of supplemental lease information | Supplemental information related to our ROU assets and related lease liabilities is as follows: March 31, 2020 Cash paid for operating lease liabilities (in thousands) $ 2,475 Weighted average remaining lease term (years) 3.9 Weighted average discount rate 4.7 % |
Schedule of lease liabilities | Maturities of our operating lease liabilities as of March 31, 2020 is as follows: Operating Leases (In thousands) Remainder of 2020 $ 7,437 2021 9,839 2022 8,840 2023 3,500 2024 3,464 Thereafter 1,732 34,812 Less: imputed interest (3,664) Total lease liabilities $ 31,148 |
Significant Retailer Concentr_2
Significant Retailer Concentrations (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Risks and Uncertainties [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: Three Months Ended March 31, 2020 2019 Walmart 25% 30% 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: March 31, 2020 December 31, 2019 Walmart * 13% * Constitutes less than 10% for the period presented. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting | The following tables present certain financial information for each of our reportable segments for the periods then ended: Three Months Ended March 31, 2020 Account Services Processing and Settlement Services Corporate and Other Total (In thousands) Operating revenues $ 245,350 $ 125,630 $ (8,811) $ 362,169 Operating expenses 211,543 67,319 24,458 303,320 Operating income $ 33,807 $ 58,311 $ (33,269) $ 58,849 Three Months Ended March 31, 2019 Account Services Processing and Settlement Services Corporate and Other Total (In thousands) Operating revenues $ 239,633 $ 110,649 $ (9,768) $ 340,514 Operating expenses 176,787 54,515 27,827 259,129 Operating income $ 62,846 $ 56,134 $ (37,595) $ 81,385 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Thousands | Jan. 01, 2020USD ($) |
Lessee, Lease, Description [Line Items] | |
Cumulative effect of new accounting principle | $ (281) |
Retained Earnings | |
Lessee, Lease, Description [Line Items] | |
Cumulative effect of new accounting principle | (281) |
Accounting Standards Update 2016-13 | Retained Earnings | |
Lessee, Lease, Description [Line Items] | |
Cumulative effect of new accounting principle | $ (300) |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Deferred revenue, revenue recognized | $ 17,000 | $ 21,200 |
Account Services | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenues | 231,309 | 220,689 |
Account Services | Transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenues | 124,120 | 140,922 |
Account Services | Transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenues | 107,189 | 79,767 |
Processing and Settlement Services | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenues | 124,017 | 109,008 |
Processing and Settlement Services | Transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenues | 123,066 | 107,576 |
Processing and Settlement Services | Transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Operating revenues | $ 951 | $ 1,432 |
Investment Securities - Gross G
Investment Securities - Gross Gains and Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 299,530 | $ 274,957 |
Gross unrealized gains | 8,479 | 2,725 |
Gross unrealized losses | (484) | (243) |
Fair value | 307,525 | 277,439 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 10,000 | 10,000 |
Gross unrealized gains | 21 | 12 |
Gross unrealized losses | 0 | 0 |
Fair value | 10,021 | 10,012 |
Agency bond securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 15,000 | 19,980 |
Gross unrealized gains | 50 | 20 |
Gross unrealized losses | 0 | 0 |
Fair value | 15,050 | 20,000 |
Agency mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 250,387 | 208,821 |
Gross unrealized gains | 8,319 | 2,453 |
Gross unrealized losses | (153) | (241) |
Fair value | 258,553 | 211,033 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 4,275 | 4,342 |
Gross unrealized gains | 0 | 2 |
Gross unrealized losses | (76) | (2) |
Fair value | 4,199 | 4,342 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 19,868 | 31,814 |
Gross unrealized gains | 89 | 238 |
Gross unrealized losses | (255) | 0 |
Fair value | $ 19,702 | $ 32,052 |
Investment Securities - Continu
Investment Securities - Continuous Unrealized Loss (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | |||
Fair value, less than 12 months | $ 17,660,000 | $ 43,337,000 | |
Unrealized loss, less than 12 months | (416,000) | (153,000) | |
Fair value, 12 months or more | 6,010,000 | 8,848,000 | |
Unrealized loss, 12 months or more | (68,000) | (90,000) | |
Total fair value | 23,670,000 | 52,185,000 | |
Total unrealized loss | (484,000) | (243,000) | |
OTTI Loss, AFS | 0 | $ 0 | |
Agency mortgage-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fair value, less than 12 months | 3,812,000 | 43,337,000 | |
Unrealized loss, less than 12 months | (86,000) | (153,000) | |
Fair value, 12 months or more | 5,921,000 | 8,735,000 | |
Unrealized loss, 12 months or more | (67,000) | (88,000) | |
Total fair value | 9,733,000 | 52,072,000 | |
Total unrealized loss | (153,000) | (241,000) | |
Municipal bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fair value, less than 12 months | 4,109,000 | 0 | |
Unrealized loss, less than 12 months | (75,000) | 0 | |
Fair value, 12 months or more | 89,000 | 113,000 | |
Unrealized loss, 12 months or more | (1,000) | (2,000) | |
Total fair value | 4,198,000 | 113,000 | |
Total unrealized loss | (76,000) | $ (2,000) | |
Asset-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fair value, less than 12 months | 9,739,000 | ||
Unrealized loss, less than 12 months | (255,000) | ||
Fair value, 12 months or more | 0 | ||
Unrealized loss, 12 months or more | 0 | ||
Total fair value | 9,739,000 | ||
Total unrealized loss | $ (255,000) |
Investment Securities - Maturit
Investment Securities - Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Amortized cost | ||
Due in one year or less | $ 10,000 | |
Due after one year through five years | 10,000 | |
Due after five years through ten years | 0 | |
Due after ten years | 9,275 | |
Mortgage and asset-backed securities | 270,255 | |
Amortized cost | 299,530 | $ 274,957 |
Fair value | ||
Due in one year or less | 10,003 | |
Due after one year through five years | 10,021 | |
Due after five years through ten years | 0 | |
Due after ten years | 9,246 | |
Mortgage and asset-backed securities | 278,255 | |
Fair value | $ 307,525 | $ 277,439 |
Accounts Receivable - Accounts
Accounts Receivable - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable current and noncurrent, net | $ 61,590 | $ 59,543 | ||
Trade receivables | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable, gross | 31,063 | 14,512 | ||
Reserve for uncollectible overdrawn accounts | (168) | (202) | ||
Accounts receivable current and noncurrent, net | 30,895 | 14,310 | ||
Overdrawn cardholder balances from purchase transactions | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable, gross | 4,407 | 4,327 | ||
Reserve for uncollectible overdrawn accounts | (3,680) | (3,398) | $ (3,329) | $ (2,710) |
Accounts receivable current and noncurrent, net | 727 | 929 | ||
Overdrawn cardholder balances from maintenance fees | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable current and noncurrent, net | 2,634 | 2,235 | ||
Total net overdrawn account balances due from cardholders | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable current and noncurrent, net | 3,361 | 3,164 | ||
Receivables due from card issuing banks | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable current and noncurrent, net | 5,637 | 5,758 | ||
Fee advances, net | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable current and noncurrent, net | 5,354 | 26,268 | ||
Other receivables | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable current and noncurrent, net | $ 16,343 | $ 10,043 |
Accounts Receivable - Reserve F
Accounts Receivable - Reserve For Uncollectible Overdrawn Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Uncollectible Overdrawn Accounts [Roll Forward] | ||
Provision for uncollectible overdrawn accounts from purchase transactions | $ 1,316 | $ 2,496 |
Overdrawn cardholder balances from purchase transactions | ||
Uncollectible Overdrawn Accounts [Roll Forward] | ||
Balance, beginning of period | 3,398 | 2,710 |
Provision for uncollectible overdrawn accounts from purchase transactions | 1,316 | 2,496 |
Charge-offs | (1,034) | (1,877) |
Balance, end of period | $ 3,680 | $ 3,329 |
Loans to Bank Customers - Loan
Loans to Bank Customers - Loan Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | $ 3,068 | $ 4,204 |
Total Current or Less Than 30 Days Past Due | 17,630 | 18,379 |
Total Outstanding | $ 20,698 | $ 22,583 |
Past Due (as a percent) | 14.80% | 18.60% |
Total Current or Less Than 30 Days Past Due (as a percent) | 85.20% | 81.40% |
Total Outstanding (as a percent) | 100.00% | 100.00% |
30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | $ 697 | $ 1,082 |
Past Due (as a percent) | 3.40% | 4.80% |
60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | $ 785 | $ 939 |
Past Due (as a percent) | 3.80% | 4.20% |
90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | $ 1,586 | $ 2,183 |
Past Due (as a percent) | 7.70% | 9.70% |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | $ 3 | $ 1 |
Total Current or Less Than 30 Days Past Due | 4,476 | 4,530 |
Total Outstanding | 4,479 | 4,531 |
Residential | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 3 | 1 |
Residential | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 0 | 0 |
Residential | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 0 | 0 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 21 | 0 |
Total Current or Less Than 30 Days Past Due | 471 | 158 |
Total Outstanding | 492 | 158 |
Commercial | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 15 | 0 |
Commercial | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 6 | 0 |
Commercial | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 0 | 0 |
Installment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 25 | 1 |
Total Current or Less Than 30 Days Past Due | 1,230 | 1,246 |
Total Outstanding | 1,255 | 1,247 |
Installment | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 0 | 1 |
Installment | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 25 | 0 |
Installment | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 0 | 0 |
Secured credit card | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 3,019 | 4,202 |
Total Current or Less Than 30 Days Past Due | 11,453 | 12,445 |
Total Outstanding | 14,472 | 16,647 |
Secured credit card | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 679 | 1,080 |
Secured credit card | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 754 | 939 |
Secured credit card | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | $ 1,586 | $ 2,183 |
Loans to Bank Customers - Nonpe
Loans to Bank Customers - Nonperforming Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Nonperforming Loans [Line Items] | ||
Nonperforming loans | $ 1,993 | $ 2,620 |
Residential | ||
Nonperforming Loans [Line Items] | ||
Nonperforming loans | 268 | 290 |
Installment | ||
Nonperforming Loans [Line Items] | ||
Nonperforming loans | 139 | 147 |
Secured credit card | ||
Nonperforming Loans [Line Items] | ||
Nonperforming loans | $ 1,586 | $ 2,183 |
Loans to Bank Customers - Credi
Loans to Bank Customers - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Outstanding Loans [Line Items] | ||
Loans to bank customers, carrying amount | $ 19,641 | $ 21,417 |
Non-Classified | ||
Outstanding Loans [Line Items] | ||
Loans to bank customers, carrying amount | 18,670 | 19,921 |
Classified | ||
Outstanding Loans [Line Items] | ||
Loans to bank customers, carrying amount | 2,028 | 2,662 |
Residential | Non-Classified | ||
Outstanding Loans [Line Items] | ||
Loans to bank customers, carrying amount | 4,211 | 4,241 |
Residential | Classified | ||
Outstanding Loans [Line Items] | ||
Loans to bank customers, carrying amount | 268 | 290 |
Commercial | Non-Classified | ||
Outstanding Loans [Line Items] | ||
Loans to bank customers, carrying amount | 492 | 158 |
Commercial | Classified | ||
Outstanding Loans [Line Items] | ||
Loans to bank customers, carrying amount | 0 | 0 |
Installment | Non-Classified | ||
Outstanding Loans [Line Items] | ||
Loans to bank customers, carrying amount | 1,081 | 1,058 |
Installment | Classified | ||
Outstanding Loans [Line Items] | ||
Loans to bank customers, carrying amount | 174 | 189 |
Secured credit card | Non-Classified | ||
Outstanding Loans [Line Items] | ||
Loans to bank customers, carrying amount | 12,886 | 14,464 |
Secured credit card | Classified | ||
Outstanding Loans [Line Items] | ||
Loans to bank customers, carrying amount | $ 1,586 | $ 2,183 |
Loans to Bank Customers - Troub
Loans to Bank Customers - Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Residential | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | $ 268 | $ 290 |
Carrying Value | 218 | 221 |
Installment | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 150 | 160 |
Carrying Value | $ 34 | $ 48 |
Loans to Bank Customers - Allow
Loans to Bank Customers - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Allowance for Loan Losses [Roll Forward] | ||
Balance, beginning of period | $ 1,166 | $ 1,144 |
Provision for loans | 192 | 666 |
Loans charged off | (487) | (912) |
Recoveries of loans previously charged off | 186 | 50 |
Balance, end of period | $ 1,057 | $ 948 |
Employee Stock-Based Compensa_3
Employee Stock-Based Compensation - Narrative and Grant Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee stock-based compensation | $ 11.4 | $ 14.8 |
2010 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance-based stock options granted (in shares) | 1,000 | |
Weighted-average grant-date fair value (in dollars per share) | $ 11.17 | |
Weighted-average exercise price (in dollars per share) | $ 23.83 | |
2010 Equity Incentive Plan | Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock units granted (in shares) | 1,234 | 35 |
Weighted-average grant-date fair value (in usd per share) | $ 26.50 | $ 66.96 |
2010 Equity Incentive Plan | Performance-based restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock units granted (in shares) | 445 | 256 |
Weighted-average grant-date fair value (in usd per share) | $ 29.40 | $ 57.51 |
Award vesting period (in years) | 4 years | |
2010 Equity Incentive Plan | Performance-based restricted stock units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Target share percentage for shares issued | 0.00% | |
2010 Equity Incentive Plan | Performance-based restricted stock units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Target share percentage for shares issued | 200.00% | |
2010 Equity Incentive Plan- Executive Employees | Stock options | Chief Executive Officer | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period (in years) | 3 years | |
Term of award (in years) | 7 years | |
Performance period | 5 years |
Employee Stock-Based Compensa_4
Employee Stock-Based Compensation - Fair Value Assumptions (Details) - Stock options - 2010 Equity Incentive Plan | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 0.77% |
Expected term (in years)(1) | 7 years |
Expected dividends | 0.00% |
Expected volatility | 53.00% |
Deposits - Summary of Deposits
Deposits - Summary of Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Noninterest-bearing Deposit Liabilities, by Component [Abstract] | ||
Non-interest bearing deposit accounts | $ 1,583,865 | $ 1,055,818 |
Interest-bearing Deposit Liabilities, by Component [Abstract] | ||
Checking accounts | 9,118 | 95,995 |
Savings | 6,320 | 6,619 |
GPR deposits | 12,207 | 11,892 |
Time deposits, denominations greater than or equal to $100 | 3,767 | 3,854 |
Time deposits, denominations less than $100 | 1,078 | 1,163 |
Total interest-bearing deposit accounts | 32,490 | 119,523 |
Total deposits | $ 1,616,355 | $ 1,175,341 |
Deposits - Contractual Maturiti
Deposits - Contractual Maturities (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Deposits [Abstract] | |
Due in 2020 | $ 1,582 |
Due in 2021 | 791 |
Due in 2022 | 1,211 |
Due in 2023 | 626 |
Due in 2024 | 452 |
Thereafter | 183 |
Total time deposits | $ 4,845 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||||
Oct. 31, 2019 | Mar. 31, 2019 | Oct. 31, 2014 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||||||
Amount outstanding | $ 100,000,000 | $ 35,000,000 | ||||
Repayments of notes payable | $ 0 | $ 60,000,000 | ||||
Revolving Credit Facility | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee percentage | 0.20% | |||||
Revolving Credit Facility | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee percentage | 0.35% | |||||
Revolving Credit Facility | Line of credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 100,000,000 | |||||
Debt term | 5 years | |||||
Bank Of America, N.A., Wells Fargo Bank, National Association, And Other Lenders | Line of credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 225,000,000 | |||||
Interest rate at end of period | 2.00% | |||||
Interest expense | $ 200,000 | $ 600,000 | ||||
Bank Of America, N.A., Wells Fargo Bank, National Association, And Other Lenders | Line of credit | Federal funds rate | ||||||
Debt Instrument [Line Items] | ||||||
Spread on interest rate | 0.50% | |||||
Bank Of America, N.A., Wells Fargo Bank, National Association, And Other Lenders | Line of credit | Base rate | ||||||
Debt Instrument [Line Items] | ||||||
Spread on interest rate | 1.00% | |||||
Bank Of America, N.A., Wells Fargo Bank, National Association, And Other Lenders | Secured Debt | Line of credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 150,000,000 | |||||
Debt term | 5 years | |||||
Repayments of notes payable | $ 60,000,000 | |||||
Bank Of America, N.A., Wells Fargo Bank, National Association, And Other Lenders | Revolving Credit Facility | Line of credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 75,000,000 | |||||
Debt term | 5 years | |||||
Amount outstanding | $ 100,000,000 | $ 35,000,000 | ||||
Wells Fargo Bank | Line of credit | Minimum | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.25% | |||||
Wells Fargo Bank | Line of credit | Minimum | Base rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.25% | |||||
Wells Fargo Bank | Line of credit | Maximum | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.00% | |||||
Wells Fargo Bank | Line of credit | Maximum | Base rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.00% |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
U.S. federal statutory tax rate (percent) | 21.00% | 21.00% |
State income taxes, net of federal tax benefit | (1.10%) | 1.60% |
General business credits | (6.60%) | (1.40%) |
Employee stock-based compensation | 2.10% | (3.90%) |
IRC 162(m) limitation | 4.20% | 2.40% |
Nondeductible expenses | 0.60% | 0.10% |
Other | 0.10% | 0.10% |
Effective tax rate (percent) | 20.30% | 19.90% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||
U.S. federal statutory tax rate (percent) | 21.00% | 21.00% | |
Decrease in excess tax benefit, shared-based compensation and additional expenses | $ 4,400,000 | ||
Discrete tax benefits related to excess tax benefits from stock-based compensation | 1,200,000 | $ (3,100,000) | |
Deferred tax assets, valuation allowance | 0 | 0 | |
Capital loss carryforward | 1,500,000 | ||
Unrecognized tax benefits | 9,662,000 | $ 8,485,000 | $ 8,300,000 |
Unrecognized tax benefits, income tax penalties and interest accrued | 600,000 | $ 400,000 | |
Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 31,900,000 | ||
State | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 57,900,000 | ||
Operating loss carryforward, subject to expiration | 31,700,000 | ||
Operating loss carryforward, not subject to expiration | 26,200,000 | ||
State | Latest tax year | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforwards | 16,300,000 | ||
State | Tax year 2023-2027 | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforwards | $ 1,100,000 |
Income Taxes - Rollforward of U
Income Taxes - Rollforward of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning balance | $ 8,398 | $ 6,965 | |
Increases related to positions taken during prior years | 235 | 0 | |
Increases related to positions taken during the current year | 1,200 | 1,569 | |
Ending balance | 9,833 | 8,534 | |
The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate | $ 9,662 | $ 8,485 | $ 8,300 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 1 Months Ended | |||||
Aug. 31, 2019 | May 31, 2019 | Mar. 31, 2020 | Jan. 02, 2020 | Dec. 31, 2019 | May 31, 2017 | |
Class of Stock [Line Items] | ||||||
Share repurchase program authorized amount | $ 150,000,000 | |||||
Stock repurchased during period, value | $ 100,000,000 | |||||
Number of shares repurchased (in shares) | 2,100,000 | |||||
Shares repurchased, average cost per share (in dollars per share) | $ 48.26 | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 50,000,000 | |||||
Common stock, shares issued (in shares) | 52,854,000 | 51,807,000 | ||||
Private Placement | Common Class A | Walmart Program Agreement | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares issued (in shares) | 975,000 | |||||
Common stock, shares issued and unvested (in shares) | 893,751 |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income | $ 46,845 | $ 64,043 |
Net income allocated to Class A common stockholders | $ 46,037 | $ 64,043 |
Basic weighted-average common shares issued and outstanding (in shares) | 51,894 | 53,050 |
Basic earnings per common share (in usd per share) | $ 0.89 | $ 1.21 |
Earnings Per Share, Diluted [Abstract] | ||
Net income allocated to Class A common stockholders | $ 46,037 | $ 64,043 |
Re-allocated earnings | 12 | 0 |
Diluted net income allocated to Class A common stockholders | $ 46,049 | $ 64,043 |
Basic weighted-average common shares issued and outstanding (in shares) | 51,894 | 53,050 |
Diluted weighted-average Class A shares issued and outstanding (in shares) | 52,673 | 54,551 |
Diluted earnings per common share (in usd per share) | $ 0.87 | $ 1.17 |
Other Classes Of Common Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income allocated to Class A common stockholders | $ (808) | $ 0 |
Earnings Per Share, Diluted [Abstract] | ||
Net income allocated to Class A common stockholders | (808) | 0 |
Common Class A | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income allocated to Class A common stockholders | 46,037 | 64,043 |
Earnings Per Share, Diluted [Abstract] | ||
Net income allocated to Class A common stockholders | $ 46,037 | $ 64,043 |
Stock options | ||
Earnings Per Share, Diluted [Abstract] | ||
Dilutive potential common shares (in shares) | 57 | 168 |
Restricted stock units | ||
Earnings Per Share, Diluted [Abstract] | ||
Dilutive potential common shares (in shares) | 338 | 679 |
Performance-based restricted stock units | ||
Earnings Per Share, Diluted [Abstract] | ||
Dilutive potential common shares (in shares) | 351 | 641 |
Employee stock purchase plan | ||
Earnings Per Share, Diluted [Abstract] | ||
Dilutive potential common shares (in shares) | 33 | 13 |
Earnings per Common Share - Ant
Earnings per Common Share - Antidilutive Shares (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Antidilutive Shares [Line Items] | ||
Antidilutive shares (in shares) | 1,673 | 204 |
Stock options | ||
Antidilutive Shares [Line Items] | ||
Antidilutive shares (in shares) | 98 | 0 |
Restricted stock units | ||
Antidilutive Shares [Line Items] | ||
Antidilutive shares (in shares) | 491 | 204 |
Performance-based restricted stock units | ||
Antidilutive Shares [Line Items] | ||
Antidilutive shares (in shares) | 174 | 0 |
Unvested Walmart restricted shares | ||
Antidilutive Shares [Line Items] | ||
Antidilutive shares (in shares) | 910 | 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 307,525 | $ 277,439 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 10,021 | 10,012 |
Agency bond securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 15,050 | 20,000 |
Agency mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 258,553 | 211,033 |
Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 4,199 | 4,342 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 19,702 | 32,052 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 307,525 | 277,439 |
Contingent consideration | 8,300 | 9,300 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Contingent consideration | 0 | 0 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 307,525 | 277,439 |
Contingent consideration | 0 | 0 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Contingent consideration | 8,300 | 9,300 |
Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 10,021 | 10,012 |
Recurring | Corporate bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Corporate bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 10,021 | 10,012 |
Recurring | Corporate bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Agency bond securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 15,050 | 20,000 |
Recurring | Agency bond securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Agency bond securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 15,050 | 20,000 |
Recurring | Agency bond securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Agency mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 258,553 | 211,033 |
Recurring | Agency mortgage-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Agency mortgage-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 258,553 | 211,033 |
Recurring | Agency mortgage-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 4,199 | 4,342 |
Recurring | Municipal bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Municipal bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 4,199 | 4,342 |
Recurring | Municipal bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 19,702 | 32,052 |
Recurring | Asset-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Asset-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 19,702 | 32,052 |
Recurring | Asset-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 0 | $ 0 |
Fair Value Measurements - Conti
Fair Value Measurements - Contingent Consideration Payable (Details) - Contingent consideration payable - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | $ 9,300 | $ 15,800 |
Payments of contingent consideration | (1,000) | 0 |
Balance, end of period | $ 8,300 | $ 15,800 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans to bank customers, net of allowance | $ 19,641 | $ 21,417 |
Deposits | 1,616,355 | 1,175,341 |
Line of credit | 100,000 | 35,000 |
Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans to bank customers, net of allowance | 18,115 | 19,563 |
Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposits | 1,616,300 | 1,175,298 |
Line of credit | $ 100,000 | $ 35,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease expense | $ 2.3 | $ 1.9 |
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 (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Leases [Abstract] | |
Cash paid for operating lease liabilities (in thousands) | $ 2,475 |
Weighted average remaining lease term (years) | 3 years 10 months 24 days |
Weighted average discount rate | 4.70% |
Leases - Maturities of Operatin
Leases - Maturities of Operating Leases (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Operating Leases | |
Remainder of 2020 | $ 7,437 |
2021 | 9,839 |
2022 | 8,840 |
2023 | 3,500 |
2024 | 3,464 |
Thereafter | 1,732 |
Payments due | 34,812 |
Less: imputed interest | (3,664) |
Total lease liabilities | $ 31,148 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Jan. 02, 2020 | Feb. 28, 2017 | Mar. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Loss contingency accrual | $ 0 | $ 0 | ||
Walmart Program Agreement | ||||
Business Acquisition [Line Items] | ||||
Equity interest | 20.00% | |||
Capital contributions, authorized amount | $ 35,000,000 | |||
Limited partners' contributed capital, period | 5 years | |||
Payments of annual contributed capital | $ 35,000,000 | |||
UniRush, LLC | ||||
Business Acquisition [Line Items] | ||||
Contingent consideration, earn-out payable | $ 20,000,000 | |||
Contingent consideration, earn-out period | 5 years |
Significant Retailer Concentr_3
Significant Retailer Concentrations (Details) - Customer concentration risk - Walmart | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Percent of total operating revenues | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 25.00% | 30.00% |
Settlement assets | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 13.00% |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)segment | Mar. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments (in segments) | segment | 2 | |
Operating revenues | $ 362,169 | $ 340,514 |
Operating expenses | 303,320 | 259,129 |
Operating income | 58,849 | 81,385 |
Operating segments | Account Services | ||
Segment Reporting Information [Line Items] | ||
Operating revenues | 245,350 | 239,633 |
Operating expenses | 211,543 | 176,787 |
Operating income | 33,807 | 62,846 |
Operating segments | Processing and Settlement Services | ||
Segment Reporting Information [Line Items] | ||
Operating revenues | 125,630 | 110,649 |
Operating expenses | 67,319 | 54,515 |
Operating income | 58,311 | 56,134 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Operating revenues | (8,811) | (9,768) |
Operating expenses | 24,458 | 27,827 |
Operating income | $ (33,269) | $ (37,595) |