Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 31, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
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, $0.001 par value | |
Trading Symbol | GDOT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 54,644,063 | |
Entity Registrant Name | GREEN DOT CORP | |
Entity Central Index Key | 0001386278 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Unrestricted cash and cash equivalents | $ 1,891,100 | $ 1,491,842 |
Restricted cash | 4,206 | 4,859 |
Settlement assets | 384,200 | 782,262 |
Accounts receivable, net | 58,299 | 67,755 |
Prepaid expenses and other assets | 61,795 | 66,705 |
Income tax receivable | 611 | 0 |
Total current assets | 2,400,211 | 2,413,423 |
Investment securities available-for-sale, at fair value | 1,090,513 | 970,969 |
Loans to bank customers, net of allowance for loan losses of $6,693 and $757 as of June 30, 2021 and December 31, 2020, respectively | 27,355 | 21,011 |
Prepaid expenses and other assets | 124,563 | 40,481 |
Property, equipment, and internal-use software, net | 130,821 | 133,400 |
Operating lease right-of-use assets | 12,024 | 13,134 |
Deferred expenses | 8,688 | 18,332 |
Net deferred tax assets | 17,499 | 12,739 |
Goodwill and intangible assets | 476,890 | 491,778 |
Total assets | 4,288,564 | 4,115,267 |
Current liabilities: | ||
Accounts payable | 39,032 | 34,823 |
Deposits | 2,864,782 | 2,735,116 |
Obligations to customers | 129,641 | 95,375 |
Settlement obligations | 11,252 | 17,759 |
Amounts due to card issuing banks for overdrawn accounts | 498 | 235 |
Other accrued liabilities | 120,427 | 145,359 |
Operating lease liabilities | 7,329 | 8,175 |
Deferred revenue | 16,254 | 28,584 |
Income tax payable | 10,795 | 12,146 |
Total current liabilities | 3,200,010 | 3,077,572 |
Other accrued liabilities | 2,333 | 4,275 |
Operating lease liabilities | 11,329 | 16,396 |
Net deferred tax liabilities | 7,192 | 7,192 |
Total liabilities | 3,220,864 | 3,105,435 |
Commitments and contingencies (Note 17) | ||
Stockholders’ equity: | ||
Class A common stock, $0.001 par value; 100,000 shares authorized as of June 30, 2021 and December 31, 2020; 54,640 and 54,034 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively | 55 | 54 |
Additional paid-in capital | 375,551 | 354,460 |
Retained earnings | 702,558 | 651,890 |
Accumulated other comprehensive (loss) income | (10,464) | 3,428 |
Total stockholders’ equity | 1,067,700 | 1,009,832 |
Total liabilities and stockholders’ equity | $ 4,288,564 | $ 4,115,267 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses | $ 6,693 | $ 757 |
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) | 54,640,000 | 54,034,000 |
Common stock, shares outstanding (in shares) | 54,640,000 | 54,034,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating revenues: | ||||
Operating revenues | $ 365,877 | $ 314,101 | $ 754,030 | $ 669,427 |
Interest income, net | 3,496 | 2,139 | 8,829 | 8,982 |
Total operating revenues | 369,373 | 316,240 | 762,859 | 678,409 |
Operating expenses: | ||||
Sales and marketing expenses | 96,507 | 106,811 | 215,410 | 223,549 |
Compensation and benefits expenses | 59,984 | 58,867 | 134,951 | 111,932 |
Processing expenses | 94,316 | 71,371 | 191,985 | 142,466 |
Other general and administrative expenses | 86,763 | 73,801 | 154,725 | 136,223 |
Total operating expenses | 337,570 | 310,850 | 697,071 | 614,170 |
Operating income | 31,803 | 5,390 | 65,788 | 64,239 |
Interest expense, net | 38 | 443 | 75 | 684 |
Other income, net | 1,633 | 2,154 | 547 | 2,346 |
Income before income taxes | 33,398 | 7,101 | 66,260 | 65,901 |
Income tax expense | 8,465 | 3,807 | 15,592 | 15,762 |
Net income | $ 24,933 | $ 3,294 | $ 50,668 | $ 50,139 |
Basic earnings per common share (in usd per share) | $ 0.46 | $ 0.06 | $ 0.93 | $ 0.95 |
Diluted earnings per common share (in usd per share) | $ 0.45 | $ 0.06 | $ 0.91 | $ 0.93 |
Basic weighted-average common shares issued and outstanding (in shares) | 54,005 | 52,275 | 53,829 | 52,084 |
Diluted weighted-average common shares issued and outstanding (in shares) | 55,061 | 53,164 | 55,059 | 52,913 |
Card revenues and other fees | ||||
Operating revenues: | ||||
Operating revenues | $ 197,937 | $ 152,681 | $ 383,949 | $ 294,075 |
Cash processing revenues | ||||
Operating revenues: | ||||
Operating revenues | 66,825 | 65,450 | 157,740 | 188,516 |
Interchange revenues | ||||
Operating revenues: | ||||
Operating revenues | $ 101,115 | $ 95,970 | $ 212,341 | $ 186,836 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 24,933 | $ 3,294 | $ 50,668 | $ 50,139 |
Other comprehensive income (loss) | ||||
Unrealized holding gain (loss), net of tax | 8,652 | (4,006) | (13,892) | 151 |
Comprehensive income (loss) | $ 33,585 | $ (712) | $ 36,776 | $ 50,290 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Class A Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Dec. 31, 2019 | 51,807 | ||||||
Beginning balance at Dec. 31, 2019 | $ 927,356 | $ (281) | $ 52 | $ 296,224 | $ 629,040 | $ (281) | $ 2,040 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common stock issued under stock plans, net of withholdings and related tax effects (in shares) | 515 | ||||||
Common stock issued under stock plans, net of withholdings and related tax effects | 1,873 | 1,873 | |||||
Stock-based compensation | 24,987 | 24,987 | |||||
Walmart restricted shares (in shares) | 975 | ||||||
Walmart restricted shares | 0 | $ 1 | (1) | ||||
Net income | 50,139 | 50,139 | |||||
Other comprehensive income (loss) | 151 | 151 | |||||
Ending balance (in shares) at Jun. 30, 2020 | 53,297 | ||||||
Ending balance at Jun. 30, 2020 | 1,004,225 | $ 53 | 323,083 | 678,898 | 2,191 | ||
Beginning balance (in shares) at Mar. 31, 2020 | 52,854 | ||||||
Beginning balance at Mar. 31, 2020 | 988,005 | $ 53 | 306,151 | 675,604 | 6,197 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common stock issued under stock plans, net of withholdings and related tax effects (in shares) | 443 | ||||||
Common stock issued under stock plans, net of withholdings and related tax effects | 3,330 | 3,330 | |||||
Stock-based compensation | 13,602 | 13,602 | |||||
Net income | 3,294 | 3,294 | |||||
Other comprehensive income (loss) | (4,006) | (4,006) | |||||
Ending balance (in shares) at Jun. 30, 2020 | 53,297 | ||||||
Ending balance at Jun. 30, 2020 | 1,004,225 | $ 53 | 323,083 | 678,898 | 2,191 | ||
Beginning balance (in shares) at Dec. 31, 2020 | 54,034 | ||||||
Beginning balance at Dec. 31, 2020 | $ 1,009,832 | $ 54 | 354,460 | 651,890 | 3,428 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common stock issued under stock plans, net of withholdings and related tax effects (in shares) | 64 | 606 | |||||
Common stock issued under stock plans, net of withholdings and related tax effects | $ (4,511) | $ 1 | (4,512) | ||||
Stock-based compensation | 25,603 | 25,603 | |||||
Net income | 50,668 | 50,668 | |||||
Other comprehensive income (loss) | (13,892) | (13,892) | |||||
Ending balance (in shares) at Jun. 30, 2021 | 54,640 | ||||||
Ending balance at Jun. 30, 2021 | 1,067,700 | $ 55 | 375,551 | 702,558 | (10,464) | ||
Beginning balance (in shares) at Mar. 31, 2021 | 54,389 | ||||||
Beginning balance at Mar. 31, 2021 | 1,023,489 | $ 54 | 364,926 | 677,625 | (19,116) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common stock issued under stock plans, net of withholdings and related tax effects (in shares) | 251 | ||||||
Common stock issued under stock plans, net of withholdings and related tax effects | 2,260 | $ 1 | 2,259 | ||||
Stock-based compensation | 8,366 | 8,366 | |||||
Net income | 24,933 | 24,933 | |||||
Other comprehensive income (loss) | 8,652 | 8,652 | |||||
Ending balance (in shares) at Jun. 30, 2021 | 54,640 | ||||||
Ending balance at Jun. 30, 2021 | $ 1,067,700 | $ 55 | $ 375,551 | $ 702,558 | $ (10,464) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating activities | ||
Net income | $ 50,668 | $ 50,139 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property, equipment and internal-use software | 27,181 | 28,175 |
Amortization of intangible assets | 13,887 | 14,231 |
Provision for uncollectible overdrawn accounts from purchase transactions | 10,213 | 4,398 |
Provision for loan losses | 10,143 | 254 |
Stock-based compensation | 25,603 | 24,987 |
(Earnings) losses in equity method investments | (578) | 2,716 |
Realized gain on sale of available-for-sale investment securities | 0 | (5,062) |
Amortization of premium on available-for-sale investment securities | 1,588 | 432 |
Amortization of deferred financing costs | 84 | 84 |
Impairment of long-lived assets | 0 | 1,088 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (757) | 8,583 |
Prepaid expenses and other assets | 6,330 | 9,285 |
Deferred expenses | 9,644 | 9,981 |
Accounts payable and other accrued liabilities | (15,505) | 13,665 |
Deferred revenue | (12,542) | (15,096) |
Income tax receivable/payable | (1,958) | 15,407 |
Other, net | (4,545) | (1,751) |
Net cash provided by operating activities | 119,456 | 161,516 |
Investing activities | ||
Purchases of available-for-sale investment securities | (217,652) | (208,502) |
Proceeds from maturities of available-for-sale securities | 72,666 | 61,717 |
Proceeds from sales and calls of available-for-sale securities | 5,198 | 187,668 |
Payments for acquisition of property and equipment | (23,826) | (31,395) |
Net changes in loans | (16,487) | 1,612 |
Investment in TailFin Labs, LLC | (35,000) | (35,000) |
Purchase of bank-owned life insurance policies | (50,000) | 0 |
Other | (599) | (832) |
Net cash used in investing activities | (265,700) | (24,732) |
Financing activities | ||
Borrowings on revolving line of credit | 0 | 100,000 |
Repayments on revolving line of credit | 0 | (135,000) |
Proceeds from exercise of options and ESPP purchases | 5,230 | 4,858 |
Taxes paid related to net share settlement of equity awards | (9,741) | (2,985) |
Net changes in deposits | 125,539 | 826,203 |
Net changes in settlement assets and obligations to customers | 425,821 | (56,603) |
Contingent consideration payments | (2,000) | (2,000) |
Net cash provided by financing activities | 544,849 | 734,473 |
Net increase in unrestricted cash, cash equivalents and restricted cash | 398,605 | 871,257 |
Unrestricted cash, cash equivalents and restricted cash, beginning of period | 1,496,701 | 1,066,154 |
Unrestricted cash, cash equivalents and restricted cash, end of period | 1,895,306 | 1,937,411 |
Cash paid for interest | 274 | 759 |
Cash paid for income taxes | 17,289 | 34 |
Unrestricted cash and cash equivalents | 1,891,100 | 1,931,467 |
Restricted cash | 4,206 | 5,944 |
Total unrestricted cash, cash equivalents and restricted cash, end of period | $ 1,895,306 | $ 1,937,411 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2021 | |
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 and registered bank holding company focused on making modern banking and money movement accessible for all. Our goal is to deliver trusted, best-in-class money management and payment solutions to our customers and partners, seamlessly connecting people to their money. Our proprietary technology enables faster, more efficient electronic payments and money management, powering intuitive and seamless ways for people to spend, send, control and save their money. Through our bank, we offer a suite of financial products to consumers and businesses including debit, prepaid, checking, credit and payroll cards, as well as robust money processing services, such as cash deposits and disbursements, and tax refund processing. 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
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, 2020 for additional disclosures, including a summary of our significant accounting policies. There have been no material changes to our significant accounting policies during the six months ended June 30, 2021, 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, 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 June 30, 2021 and through the date of this report. The accounting estimates used in the preparation of our consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained, and as our 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 December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplifies various aspects related to the accounting for income taxes. The standard removes certain exceptions to the general principles in Topic 740 and also clarifies and modifies existing guidance to improve consistent application of Topic 740. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We adopted the provisions of ASU 2019-12 on January 1, 2021, the results of which did not have a material impact on our consolidated financial statements. Recently issued accounting pronouncements not yet adopted In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”), which simplifies an issuer’s accounting for convertible instruments and its application of the derivatives scope exception for contracts in its own equity. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. We are currently evaluating the provisions of ASU 2020-06, but do not expect any material impact on our consolidated financial statements. Note 2—Summary of Significant Accounting Policies (continued) In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) ("ASU 2020-04"), which provides optional expedients and exceptions to GAAP requirements for modifications of debt instruments, leases, derivatives and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. The guidance permits entities to treat such modifications as the continuation of the original contract, without any required accounting reassessments or remeasurements. The amendments in ASU 2020-04 were effective upon issuance and may be elected over time through December 31, 2022, as reference rate reform activities occur. Upon adoption, the guidance must be applied prospectively for all eligible contract modifications. We do not expect any material impact on our consolidated financial statements as our existing revolving line of credit is based on variable rates available that we elect at the time of borrowing. See Note 9 — Debt, to these consolidated financial statements for additional information. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues As discussed in Note 19 — Segment Informatio n, 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. Our products and services are offered only to customers within the United States. The following table disaggregates our revenues earned from external customers by each of our reportable segments: Three Months Ended June 30, 2021 Consumer Services B2B Services Money Movement Services Total Timing of recognition (In thousands) Transferred point in time $ 113,924 $ 43,016 $ 64,715 $ 221,655 Transferred over time 62,506 80,412 1,304 144,222 Operating revenues (1) $ 176,430 $ 123,428 $ 66,019 $ 365,877 Three Months Ended June 30, 2020 Consumer Services B2B Services Money Movement Services Total Timing of recognition (In thousands) Transferred point in time $ 99,429 $ 43,517 $ 63,834 $ 206,780 Transferred over time 56,763 48,725 1,833 107,321 Operating revenues (1) $ 156,192 $ 92,242 $ 65,667 $ 314,101 Six Months Ended June 30, 2021 Consumer Services B2B Services Money Movement Services Total Timing of recognition (In thousands) Transferred point in time $ 226,576 $ 91,875 $ 153,835 $ 472,286 Transferred over time 128,532 150,661 2,551 281,744 Operating revenues (1) $ 355,108 $ 242,536 $ 156,386 $ 754,030 Six Months Ended June 30, 2020 Consumer Services B2B Services Money Movement Services Total Timing of recognition (In thousands) Transferred point in time $ 188,730 $ 90,574 $ 182,934 $ 462,238 Transferred over time 113,707 90,697 2,785 207,189 Operating revenues (1) $ 302,437 $ 181,271 $ 185,719 $ 669,427 (1) Excludes net interest income, a component of total operating revenues, as it is outside the scope of ASC 606, Revenues. Also excludes the effects of intersegment revenues. Note 3—Revenues (continued) Revenues recognized at a point in time are comprised of ATM fees, interchange, and other similar transaction-based fees. Revenues recognized over time consists of new card fees, monthly maintenance fees, revenue earned from gift cards and substantially all BaaS partner program management fees. Substantially all of our money movement services are recognized at a point in time. 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 $9.1 million and $8.9 million in revenue for the three months ended June 30, 2021 and 2020, respectively, and $26.6 million and $25.9 million for the six months ended June 30, 2021 and 2020, 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 | 6 Months Ended |
Jun. 30, 2021 | |
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) June 30, 2021 Corporate bonds $ 10,000 $ 7 $ — $ 10,007 Agency bond securities 230,840 — (6,260) 224,580 Agency mortgage-backed securities 826,446 1,339 (10,014) 817,771 Municipal bonds 29,770 310 (42) 30,038 Asset-backed securities 7,985 135 (3) 8,117 Total investment securities $ 1,105,041 $ 1,791 $ (16,319) $ 1,090,513 December 31, 2020 Corporate bonds $ 10,000 $ 110 $ — $ 10,110 Agency bond securities 235,839 31 (1,713) 234,157 Agency mortgage-backed securities 686,108 5,258 (337) 691,029 Municipal bonds 29,977 524 — 30,501 Asset-backed securities 4,917 255 — 5,172 Total investment securities $ 966,841 $ 6,178 $ (2,050) $ 970,969 Note 4—Investment Securities (continued) As of June 30, 2021 and December 31, 2020, 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) June 30, 2021 Agency bond securities $ 224,579 $ (6,260) $ — $ — $ 224,579 $ (6,260) Agency mortgage-backed securities 720,761 (10,014) — — 720,761 (10,014) Municipal bonds 13,638 (42) — — 13,638 (42) Asset-backed securities 3,043 (3) — — 3,043 (3) Total investment securities $ 962,021 $ (16,319) $ — $ — $ 962,021 $ (16,319) December 31, 2020 Agency bond securities $ 189,127 $ (1,713) $ — $ — $ 189,127 $ (1,713) Agency mortgage-backed securities 162,579 (337) — — 162,579 (337) Total investment securities $ 351,706 $ (2,050) $ — $ — $ 351,706 $ (2,050) Our investments generally consist of highly rated securities, substantially all of which are directly or indirectly backed by the U.S. federal government. Our investment policy restricts our investments to highly liquid, low credit risk assets. As such, we have not recorded any significant credit-related impairment losses during the three and six months ended June 30, 2021 or 2020 on our available-for-sale investment securities. Unrealized losses as of June 30, 2021 are the result of recent fluctuations in interest rates as our investment portfolio is comprised predominantly of fixed rate securities. 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. As of June 30, 2021, the contractual maturities of our available-for-sale investment securities were as follows: Amortized cost Fair value (In thousands) Due after one year through five years $ 10,000 $ 10,007 Due after five years through ten years 190,840 185,766 Due after ten years 69,770 68,852 Mortgage and asset-backed securities 834,431 825,888 Total investment securities $ 1,105,041 $ 1,090,513 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 | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable, net consisted of the following: June 30, 2021 December 31, 2020 (In thousands) Trade receivables $ 23,966 $ 25,279 Reserve for uncollectible trade receivables (315) (315) Net trade receivables 23,651 24,964 Overdrawn cardholder balances from purchase transactions 8,216 3,229 Reserve for uncollectible overdrawn accounts from purchase transactions (5,512) (1,653) Net overdrawn cardholder balances from purchase transactions 2,704 1,576 Overdrawn cardholder balances from maintenance fees 3,637 3,165 Total net overdrawn account balances due from cardholders 6,341 4,741 Receivables due from card issuing banks 5,278 4,377 Fee advances, net 2,098 21,424 Other receivables 20,931 12,249 Accounts receivable, net $ 58,299 $ 67,755 Our net overdrawn account balances due from cardholders are a result of purchase transactions that we may honor or maintenance fee assessments, in each case, in excess of the funds in the cardholder’s account. While we decline authorization attempts for amounts that exceed the available balance in a cardholder’s account, the application of card association rules, and the timing of the settlement of transactions, among other things, can result in overdrawn accounts. Overdrawn cardholder balances from maintenance fee assessments are presented net of the consideration we expect to receive and are recorded as contra-revenue within card revenues and other fees. Activity in the reserve for uncollectible overdrawn accounts from purchase transactions consisted of the following: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Balance, beginning of period $ 2,280 $ 3,680 $ 1,653 $ 3,398 Provision for uncollectible overdrawn accounts from purchase transactions 7,219 3,082 10,213 4,398 Charge-offs (3,987) (1,692) (6,354) (2,726) Balance, end of period $ 5,512 $ 5,070 $ 5,512 $ 5,070 |
Loans to Bank Customers
Loans to Bank Customers | 6 Months Ended |
Jun. 30, 2021 | |
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 credit 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) June 30, 2021 Residential $ — $ — $ — $ — $ 3,108 $ 3,108 Commercial — — — — 4,114 4,114 Installment — — — — 377 377 Consumer 3,902 88 — 3,990 8,540 12,530 Secured credit card 480 240 383 1,103 12,816 13,919 Total loans $ 4,382 $ 328 $ 383 $ 5,093 $ 28,955 $ 34,048 Percentage of outstanding 12.9 % 1.0 % 1.1 % 15.0 % 85.0 % 100.0 % December 31, 2020 Residential $ — $ — $ — $ — $ 3,008 $ 3,008 Commercial — — — — 3,435 3,435 Installment — — — — 497 497 Secured credit card 864 699 1,363 2,926 11,902 14,828 Total loans $ 864 $ 699 $ 1,363 $ 2,926 $ 18,842 $ 21,768 Percentage of outstanding 4.0 % 3.2 % 6.3 % 13.4 % 86.6 % 100.0 % Beginning in 2021, we introduced an optional overdraft protection program service on certain demand deposit account programs that allows cardholders who opt-in to spend a pre-determined amount in excess of their available card balance. When overdrawn, these deposit accounts are reclassified as consumer loans. Overdrawn balances are unsecured and considered immediately due from the cardholder. Nonperforming Loans The following table presents the carrying value, gross of the related allowance for credit 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, 2020 for further information on the criteria for classification as nonperforming. June 30, 2021 December 31, 2020 (In thousands) Residential $ 219 $ 240 Installment 129 137 Secured credit card 383 1,363 Total loans $ 731 $ 1,740 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. 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 the risk of any significant credit losses we expect to incur. The table below presents the carrying value, gross of the related allowance for credit losses, of our loans within the primary credit quality indicators related to our loan portfolio: Note 6—Loans to Bank Customers (continued) June 30, 2021 December 31, 2020 Non-Classified Classified Non-Classified Classified (In thousands) Residential $ 2,889 $ 219 $ 2,768 $ 240 Commercial 4,114 — 3,435 — Installment 248 129 360 137 Consumer 12,530 — — — Secured credit card 13,536 383 13,465 1,363 Total loans $ 33,317 $ 731 $ 20,028 $ 1,740 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 June 30, 2021, 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 June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 Unpaid Principal Balance Carrying Value Unpaid Principal Balance Carrying Value (In thousands) Residential $ 219 $ 164 $ 240 $ 180 Installment 129 96 137 103 Allowance for Credit Losses Activity in the allowance for credit losses on our loan portfolio consisted of the following: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Balance, beginning of period $ 1,531 $ 1,057 $ 757 $ 1,166 Provision for loans 8,733 62 10,143 254 Loans charged off (3,645) (634) (4,352) (1,121) Recoveries of loans previously charged off 74 85 145 271 Balance, end of period $ 6,693 $ 570 $ 6,693 $ 570 |
Equity Method Investment
Equity Method Investment | 6 Months Ended |
Jun. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment | Equity Method Investment 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 focuses on developing tech-enabled solutions to integrate omni-channel retail shopping and financial services. We hold a 20% ownership interest in the entity, in exchange for annual capital contributions of $35.0 million per year from January 2020 through January 2024. We account for our investment in TailFin Labs under the equity method of accounting in accordance with ASC 323 , Investments – Equity Method and Joint Ventures . Under the equity method of accounting, the initial investment is recorded at cost and the investment is subsequently adjusted for, among other things, its proportionate share of earnings or losses. However, given the capital structure of the TailFin Labs arrangement, we apply the Hypothetical Liquidation Book Value ("HLBV") method to determine the allocation of profits and losses since our liquidation rights Note 7—Equity Method Investment (continued) and priorities, as defined by the agreement, differ from our underlying ownership interest. The HLBV method calculates the proceeds that would be attributable to each partner in an investment based on the liquidation provisions of the agreement if the partnership was to be liquidated at book value as of the balance sheet date. Each partner’s allocation of income or loss in the period is equal to the change in the amount of net equity they are legally able to claim based on a hypothetical liquidation of the entity at the end of a reporting period compared to the beginning of that period, adjusted for any capital transactions. Any future economic benefits derived from products or services developed by TailFin Labs will be negotiated on a case-by-case basis between the parties. As of June 30, 2021, our net investment in TailFin Labs amounted to approximately $61.5 million and is included in the long term portion of prepaid expenses and other assets on our consolidated balance sheet. We recorded equity in losses from TailFin Labs of approximately $0.7 million and $2.8 million for the three months ended June 30, 2021 and 2020, respectively, and $2.3 million and $2.9 million for the six months ended June 30, 2021 and 2020, respectively, which are recorded as a component of other income and expense on our consolidated statement of operations. Total equity in losses also includes income and losses from other investments that are not material to these consolidated financial statements. |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2021 | |
Deposits [Abstract] | |
Deposits | Deposits Deposits are categorized as non-interest or interest-bearing deposits as follows: June 30, 2021 December 31, 2020 (In thousands) Non-interest bearing deposit accounts $ 2,835,881 $ 2,704,050 Interest-bearing deposit accounts Checking accounts 5,282 5,060 Savings 7,348 8,505 GPR deposits 11,235 12,955 Time deposits, denominations greater than or equal to $100 4,211 3,767 Time deposits, denominations less than $100 825 779 Total interest-bearing deposit accounts 28,901 31,066 Total deposits $ 2,864,782 $ 2,735,116 The scheduled contractual maturities for total time deposits are presented in the table below: June 30, 2021 (In thousands) Due in 2021 $ 623 Due in 2022 1,750 Due in 2023 1,166 Due in 2024 562 Due in 2025 504 Thereafter 431 Total time deposits $ 5,036 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
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-year revolving line of credit (the "2019 Revolving Facility"), maturing in October 2024. We use the proceeds of any borrowings under the 2019 Revolving Facility for working capital and other general corporate purposes, subject to the terms and conditions set forth in the credit agreement. We classify amounts outstanding as long-term on our consolidated balance sheets; however, we may make voluntary repayments at any time prior to maturity. As of June 30, 2021, we had no borrowings outstanding on the 2019 Revolving Facility and had the full amount available for use. Note 9—Debt (continued) At our election, loans made under the credit agreement bear interest at 1) a LIBOR rate (the “LIBOR Rate") or 2) a base rate determined by reference to the highest of (a) the United States federal funds rate plus .50%, (b) 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. 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 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 June 30, 2021, 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. We did not incur any cash interest expense related to our debt during the three and six months ended June 30, 2021. Cash interest expense was $0.4 million for the three months ended June 30, 2020 and $0.6 million for the six months ended June 30, 2020. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense for the six months ended June 30, 2021 and 2020 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: Six Months Ended June 30, 2021 2020 U.S. federal statutory tax rate 21.0 % 21.0 % State income taxes, net of federal tax benefit 1.1 (0.6) General business credits (1.9) (6.6) Employee stock-based compensation (2.9) 1.8 IRC 162(m) limitation 6.4 8.1 Nondeductible expenses 0.1 0.7 Other (0.3) (0.5) Effective tax rate 23.5 % 23.9 % The effective tax rate for the six months ended June 30, 2021 and 2020 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 executive compensation. The overall decrease in the effective tax rate for the six months ended June 30, 2021 as compared to the six months ended June 30, 2020 is primarily due to a decrease of $1.1 million on the IRC 162(m) limitation on the deductibility of executive compensation and an increase of $3.1 million in excess tax benefits from stock-based compensation. We recognized an excess tax benefit on stock-based compensation of $1.9 million for the six months ended June 30, 2021, compared to a $1.2 million discrete tax expense on shortfalls from stock based compensation for the prior year comparable period. 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 six months ended June 30, 2021, the provision for GILTI tax expense was not material to our financial statements. Note 10—Income Taxes (continued) 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 June 30, 2021 and 2020, we did not have a valuation allowance on any of our deferred tax assets as we believe it is more-likely-than-not that we will realize the benefits of our deferred tax assets. During the six months ended June 30, 2020, we released our valuation allowance against our capital loss carryforwards, as we recognized capital gains on the sale of certain investment securities during that period sufficient to offset our capital loss carryforward amount. 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, 2017 through 2020. We generally remain subject to examination of our various state income tax returns for a period of four As of June 30, 2021, we have federal net operating loss carryforwards of approximately $19.2 million and state net operating loss carryforwards of approximately $68.8 million, which will be available to offset future income. If not used, the federal net operating losses will expire between 2026 and 2034. Of our total state net operating loss carryforwards, approximately $46.6 million will expire between 2023 and 2040, while the remaining balance of approximately $22.2 million does not expire and carries forward indefinitely. 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 $19.4 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. As of June 30, 2021 and December 31, 2020, we had a liability of $11.0 million and $9.5 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: Six Months Ended June 30, 2021 2020 (In thousands) Beginning balance $ 9,518 $ 8,398 Increases related to positions taken during prior years — 235 Increases related to positions taken during the current year 1,470 1,200 Ending balance $ 10,988 $ 9,833 The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate $ 10,801 $ 9,660 As of June 30, 2021 and 2020, we recognized accrued interest and penalties related to unrecognized tax benefits of approximately $0.6 million and $0.7 million, respectively. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2021 | |
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. As of June 30, 2021, we have an authorized $50 million remaining under our current stock repurchase program for any additional repurchases. Walmart Restricted Shares On January 2, 2020, we issued Walmart, in a private placement, 975,000 restricted shares of our Class A Common Stock. The shares vest in equal monthly increments through December 1, 2022. Walmart is entitled to voting rights and participate in any dividends paid from the issuance date on the unvested balance, and therefore, the total amount of restricted shares issued are included in our total Class A shares outstanding. As of June 30, 2021, there were 487,502 unvested shares outstanding. The estimated grant-date fair value of the restricted shares is recorded as a component of stock-based compensation expense over the related period we expect to benefit under the term of our relationship with Walmart. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation We currently grant restricted stock unit awards to employees, directors and non-employee consultants under our 2010 Equity Incentive Plan and from time to time may also grant stock option awards. Through our 2010 Employee Stock Purchase Plan, employees are also able to purchase shares of our Class A common stock at a discount through payroll deductions. We have reserved shares of our Class A common stock for issuance under these plans. The total stock-based compensation expense recognized was $8.4 million and $13.6 million for the three months ended June 30, 2021 and 2020, respectively, and $25.6 million and $25.0 million for the six months ended June 30, 2021 and 2020, respectively. Restricted Stock Units Restricted stock units subject to service only conditions for the six months ended June 30, 2021 was as follows: Shares Weighted-Average Grant-Date Fair Value (In thousands, except per share data) Outstanding at December 31, 2020 1,222 $ 36.24 Restricted stock units granted 697 48.24 Restricted stock units vested (376) 35.19 Restricted stock units canceled (157) 39.30 Outstanding at June 30, 2021 1,386 $ 42.21 Performance-Based Restricted Stock Units Performance-based restricted stock unit activity for the six months ended June 30, 2021 was as follows: Shares Weighted-Average Grant-Date Fair Value (In thousands, except per share data) Outstanding at December 31, 2020 946 $ 35.62 Performance restricted stock units granted (at target) 401 46.93 Performance restricted stock units vested (241) 37.48 Performance restricted stock units canceled (62) 48.42 Adjustment for completed performance periods 110 33.41 Outstanding at June 30, 2021 1,154 $ 37.76 We grant performance-based restricted stock units to certain employees that are subject to the attainment of pre-established internal performance conditions, market conditions, or a combination thereof (collectively referred to herein as performance-based restricted stock units). The actual number of shares subject to the award is determined at the end of the performance period and may range from 0% to 200% of the target shares granted depending upon the terms of the award. These awards generally contain an additional service component after each performance period is concluded and the unvested balance of the shares after the performance metrics are achieved 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 at least four years) based on the grant date fair value of the award. Stock Options Total stock option activity for the six months ended June 30, 2021 was as follows: Options Weighted-Average Exercise Price (In thousands, except per share data) Outstanding at December 31, 2020 1,634 $ 32.04 Options exercised (64) 28.23 Options canceled (362) 50.80 Outstanding at June 30, 2021 1,208 $ 26.60 Exercisable at June 30, 2021 624 $ 29.19 |
Earnings per Common Share
Earnings per Common Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share The calculation of basic and diluted earnings per share (EPS) was as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands, except per share data) Basic earnings per Class A common share Numerator: Net income $ 24,933 $ 3,294 $ 50,668 $ 50,139 Amount attributable to unvested Walmart restricted shares (235) (52) (517) (828) Net income allocated to Class A common stockholders $ 24,698 $ 3,242 $ 50,151 $ 49,311 Denominator: Weighted-average Class A shares issued and outstanding 54,005 52,275 53,829 52,084 Basic earnings per Class A common share $ 0.46 $ 0.06 $ 0.93 $ 0.95 Diluted earnings per Class A common share Numerator: Net income allocated to Class A common stockholders $ 24,698 $ 3,242 $ 50,151 $ 49,311 Re-allocated earnings 4 1 11 13 Diluted net income allocated to Class A common stockholders $ 24,702 $ 3,243 $ 50,162 $ 49,324 Denominator: Weighted-average Class A shares issued and outstanding 54,005 52,275 53,829 52,084 Dilutive potential common shares: Stock options 446 58 477 57 Service-based restricted stock units 362 567 453 469 Performance-based restricted stock units 242 258 293 299 Employee stock purchase plan 6 6 7 4 Diluted weighted-average Class A shares issued and outstanding 55,061 53,164 55,059 52,913 Diluted earnings per Class A common share $ 0.45 $ 0.06 $ 0.91 $ 0.93 The restricted shares issued to Walmart contain non-forfeitable rights to dividends and are considered participating securities for purposes of computing EPS 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 where 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Class A common stock Options to purchase Class A common stock 139 795 139 772 Service-based restricted stock units 562 268 320 295 Performance-based restricted stock units 829 453 742 286 Unvested Walmart restricted shares 515 840 555 875 Total 2,045 2,356 1,756 2,228 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
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, 2020. As of June 30, 2021 and December 31, 2020, our assets and liabilities carried at fair value on a recurring basis were as follows: Level 1 Level 2 Level 3 Total Fair Value June 30, 2021 (In thousands) Assets Corporate bonds $ — $ 10,007 $ — $ 10,007 Agency bond securities — 224,580 — 224,580 Agency mortgage-backed securities — 817,771 — 817,771 Municipal bonds — 30,038 — 30,038 Asset-backed securities — 8,117 — 8,117 Total assets $ — $ 1,090,513 $ — $ 1,090,513 Liabilities Contingent consideration $ — $ — $ 3,300 $ 3,300 December 31, 2020 Assets Corporate bonds $ — $ 10,110 $ — $ 10,110 Agency bond securities — 234,157 — 234,157 Agency mortgage-backed securities — 691,029 — 691,029 Municipal bonds — 30,501 — 30,501 Asset-backed securities — 5,172 — 5,172 Total assets $ — $ 970,969 $ — $ 970,969 Liabilities Contingent consideration $ — $ — $ 5,300 $ 5,300 We based the fair value of our fixed income securities held as of June 30, 2021 and December 31, 2020 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 and six months ended June 30, 2021 or 2020. The following table presents changes in our contingent consideration payable for the three and six months ended June 30, 2021 and 2020, which is categorized in Level 3 of the fair value hierarchy: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Balance, beginning of period $ 4,300 $ 8,300 $ 5,300 $ 9,300 Payments of contingent consideration (1,000) (1,000) (2,000) (2,000) Balance, end of period $ 3,300 $ 7,300 $ 3,300 $ 7,300 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
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, 2020 . 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 June 30, 2021 and December 31, 2020 are presented in the table below. June 30, 2021 December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Financial Assets Loans to bank customers, net of allowance $ 27,355 $ 27,132 $ 21,011 $ 20,421 Financial Liabilities Deposits $ 2,864,782 $ 2,864,221 $ 2,735,116 $ 2,735,072 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases Our leases consist of operating lease agreements principally related to our corporate and subsidiary 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 5 years, many of which include renewal options of varying terms. As of December 31, 2020, we committed to a remote workforce strategy for most U.S. based employees and recorded a substantial impairment charge to our lease right-of-use assets as we no longer intend to utilize our leased office spaces in the U.S. for the duration of our remaining lease terms. Our lease agreements have or will be terminated in due course in accordance with our lease provisions; however, we may be contractually obligated to continue making lease payments where no termination option is available. Our total lease expense amounted to approximately $0.6 million and $2.2 million for the three months ended June 30, 2021 and 2020, respectively, and $1.8 million and $4.6 million for the six months ended June 30, 2021 and 2020, 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: June 30, 2021 Cash paid for operating lease liabilities (in thousands) $ 5,893 Weighted average remaining lease term (years) 3.1 Weighted average discount rate 4.8 % Maturities of our operating lease liabilities as of June 30, 2021 is as follows: Operating Leases (In thousands) Remainder of 2021 $ 4,212 2022 7,833 2023 3,740 2024 3,658 2025 1,012 20,455 Less: imputed interest (1,797) Total lease liabilities $ 18,658 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Financial Commitments In May 2021, we announced that we entered into a definitive agreement to purchase the assets and operations of Tax Refund Solutions (“TRS”), a business segment of Republic Bank & Trust Company ("Republic Bank"), subject to customary closing conditions. Pursuant to the terms of the definitive agreement, we have agreed to pay Republic Bank approximately $165 million in cash for the TRS assets. We are seeking the Federal Reserve’s approval of or non-objection, as applicable, to the proposed transaction. The parties are working to complete the proposed transaction in the third quarter of 2021. As discussed in Note 7 — Equity Method Investment , we are committed to make annual capital contributions in TailFin Labs, LLC of $35.0 million per year through January 2024. Our definitive agreement to acquire all of the equity interests of UniRush provides for a minimum $4 million annual earn-out payment for five years following the closing, ending in February 2022. As of June 30, 2021, the estimated fair value of our remaining earn-out payments amounted to $3.3 million, and is recorded in the current portion of other accrued liabilities on our consolidated balance sheets. Note 17—Commitments and Contingencies (continued) 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 former 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. We 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, 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. |
Significant Retailer and Partne
Significant Retailer and Partner Concentration | 6 Months Ended |
Jun. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
Significant Retailer and Partner Concentration | Significant Retailer and Partner 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Walmart 23% 29% 24% 27% In addition, approximately 20% and 18% of our total operating revenues for the three and six months ended June 30, 2021, respectively, were generated from a single BaaS partner, without a corresponding concentration to our gross profit for the period. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Effective beginning with the first quarter of 2021, we have realigned our segment financial reporting based on how our current Chief Operating Decision Maker (“CODM”) manages our businesses, including resource allocation and performance assessment. Our CODM organizes and manages the business primarily on the basis of the channels in which our product and services are offered and uses net revenues and segment profit to assess profitability. Segment profit reflects each segment's net revenue less direct costs, such as sales and marketing expenses, processing expenses, third-party call center support and transaction losses. As a result of this realignment, our operations are now aggregated amongst three reportable segments: 1) Consumer Services, 2) Business to Business ("B2B") Services, and 3) Money Movement Services. Our Consumer Services segment consists of revenues and expenses derived from deposit account programs, such as consumer checking accounts, prepaid cards, secured credit cards, and gift cards that we offer to consumers (i) through distribution arrangements with more than 90,000 retail locations and thousands of neighborhood Financial Service Center locations (the "Retail" channel), and (ii) directly through various marketing channels, such as online search engine optimization, online displays, direct mail campaigns, mobile advertising, and affiliate referral programs (the "Direct" channel). Our B2B Services segment consists of revenues and expenses derived from (i) our partnerships with some of America's most prominent consumer and technology companies that make our banking products and services available to their consumers, partners and workforce through integration with our banking platform (the "Banking-as-a-Service", or "BaaS" channel), and (ii) a comprehensive payroll platform that we offer to corporate enterprises (the "Employer" channel) to facilitate payments for today’s workforce. Our products and services in this segment include deposit account programs, such as consumer and small business checking accounts and prepaid cards, as well as our Simply Paid Disbursements services utilized by our partners. Our Money Movement Services segment consists of revenues and expenses generated on a per transaction basis from our services that specialize in facilitating the movement of cash on behalf of consumers and businesses, such as money processing services and tax refund processing services. Our money processing services are marketed to third-party banks, program managers, and other companies seeking cash deposit and disbursement capabilities for their customers. Those customers, including our own cardholders, can access our cash deposit and disbursement services at any of the locations within our network of retail distributors and neighborhood Financial Service Centers. We market our tax-related financial services through a network of tax preparation franchises, independent tax professionals and online tax preparation providers. The Corporate and Other segment primarily consists of net interest income earned by our bank, eliminations of intersegment revenues and expenses, unallocated corporate expenses, and other fixed costs that are not considered when our CODM evaluates segment performance, such as salaries, wages and related benefits for our employees, professional service fees, software licenses, telephone and communication costs, rent and utilities, and insurance. We do not evaluate performance or allocate resources based on segment asset data, and therefore such information is not presented. Note 19—Segment Information (continued) We have restated segment information for the historical periods presented herein to conform to our current presentation. The change in segment presentation does not affect the financial results of our consolidated statements of operations, balance sheets or statements of cash flows as previously presented. The following tables present financial information for each of our reportable segments for the periods then ended: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Segment Revenue (In thousands) Consumer Services $ 182,093 $ 162,639 $ 366,434 $ 315,561 B2B Services 112,589 76,619 218,564 150,459 Money Movement Services 66,019 65,667 156,386 185,719 Corporate and Other (2,763) (4,906) (3,641) (5,179) Total segment revenues 357,938 300,019 737,743 646,560 Net revenue adjustment 11,435 16,221 25,116 31,849 Total operating revenues $ 369,373 $ 316,240 $ 762,859 $ 678,409 Net revenue adjustments represent commissions and certain processing-related costs associated with our BaaS products and services, which are netted against our B2B Services revenues when evaluating segment performance. Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Segment Profit (In thousands) Consumer Services $ 55,790 $ 58,412 $ 109,317 $ 108,797 B2B Services 18,174 16,327 35,707 36,154 Money Movement Services 38,192 27,842 87,006 94,561 Corporate and Other (49,232) (57,331) (95,746) (102,144) Total segment profit 62,924 45,250 136,284 137,368 Reconciliation to income before income taxes Depreciation and amortization of property, equipment and internal-use software 13,981 14,479 27,181 28,176 Stock based compensation and related employer taxes 8,444 13,758 25,626 25,336 Amortization of acquired intangible assets 6,943 6,952 13,887 14,231 Impairment charges — 1,088 — 1,088 Other expense 1,753 3,583 3,802 4,298 Operating income 31,803 5,390 65,788 64,239 Interest expense, net 38 443 75 684 Other income, net 1,633 2,154 547 2,346 Income before income taxes $ 33,398 $ 7,101 $ 66,260 $ 65,901 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 and through the date of this report. The accounting estimates used in the preparation of our consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained, and as our 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. |
Recently adopted accounting pronouncements; Recently issued accounting pronouncements not yet adopted | Recent Accounting Pronouncements Recently adopted accounting pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplifies various aspects related to the accounting for income taxes. The standard removes certain exceptions to the general principles in Topic 740 and also clarifies and modifies existing guidance to improve consistent application of Topic 740. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We adopted the provisions of ASU 2019-12 on January 1, 2021, the results of which did not have a material impact on our consolidated financial statements. Recently issued accounting pronouncements not yet adopted In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”), which simplifies an issuer’s accounting for convertible instruments and its application of the derivatives scope exception for contracts in its own equity. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. We are currently evaluating the provisions of ASU 2020-06, but do not expect any material impact on our consolidated financial statements. Note 2—Summary of Significant Accounting Policies (continued) In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) ("ASU 2020-04"), which provides optional expedients and exceptions to GAAP requirements for modifications of debt instruments, leases, derivatives and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. The guidance permits entities to treat such modifications as the continuation of the original contract, without any required accounting reassessments or remeasurements. The amendments in ASU 2020-04 were effective upon issuance and may be elected over time through December 31, 2022, as reference rate reform activities occur. Upon adoption, the guidance must be applied prospectively for all eligible contract modifications. We do not expect any material impact on our consolidated financial statements as our existing revolving line of credit is based on variable rates available that we elect at the time of borrowing. See Note 9 — Debt, to these consolidated financial statements for additional information. |
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, 2020 . 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) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table disaggregates our revenues earned from external customers by each of our reportable segments: Three Months Ended June 30, 2021 Consumer Services B2B Services Money Movement Services Total Timing of recognition (In thousands) Transferred point in time $ 113,924 $ 43,016 $ 64,715 $ 221,655 Transferred over time 62,506 80,412 1,304 144,222 Operating revenues (1) $ 176,430 $ 123,428 $ 66,019 $ 365,877 Three Months Ended June 30, 2020 Consumer Services B2B Services Money Movement Services Total Timing of recognition (In thousands) Transferred point in time $ 99,429 $ 43,517 $ 63,834 $ 206,780 Transferred over time 56,763 48,725 1,833 107,321 Operating revenues (1) $ 156,192 $ 92,242 $ 65,667 $ 314,101 Six Months Ended June 30, 2021 Consumer Services B2B Services Money Movement Services Total Timing of recognition (In thousands) Transferred point in time $ 226,576 $ 91,875 $ 153,835 $ 472,286 Transferred over time 128,532 150,661 2,551 281,744 Operating revenues (1) $ 355,108 $ 242,536 $ 156,386 $ 754,030 Six Months Ended June 30, 2020 Consumer Services B2B Services Money Movement Services Total Timing of recognition (In thousands) Transferred point in time $ 188,730 $ 90,574 $ 182,934 $ 462,238 Transferred over time 113,707 90,697 2,785 207,189 Operating revenues (1) $ 302,437 $ 181,271 $ 185,719 $ 669,427 (1) Excludes net interest income, a component of total operating revenues, as it is outside the scope of ASC 606, Revenues. Also excludes the effects of intersegment revenues. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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) June 30, 2021 Corporate bonds $ 10,000 $ 7 $ — $ 10,007 Agency bond securities 230,840 — (6,260) 224,580 Agency mortgage-backed securities 826,446 1,339 (10,014) 817,771 Municipal bonds 29,770 310 (42) 30,038 Asset-backed securities 7,985 135 (3) 8,117 Total investment securities $ 1,105,041 $ 1,791 $ (16,319) $ 1,090,513 December 31, 2020 Corporate bonds $ 10,000 $ 110 $ — $ 10,110 Agency bond securities 235,839 31 (1,713) 234,157 Agency mortgage-backed securities 686,108 5,258 (337) 691,029 Municipal bonds 29,977 524 — 30,501 Asset-backed securities 4,917 255 — 5,172 Total investment securities $ 966,841 $ 6,178 $ (2,050) $ 970,969 |
Schedule of Available-for-sale Securities, Unrealized Loss Position | As of June 30, 2021 and December 31, 2020, 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) June 30, 2021 Agency bond securities $ 224,579 $ (6,260) $ — $ — $ 224,579 $ (6,260) Agency mortgage-backed securities 720,761 (10,014) — — 720,761 (10,014) Municipal bonds 13,638 (42) — — 13,638 (42) Asset-backed securities 3,043 (3) — — 3,043 (3) Total investment securities $ 962,021 $ (16,319) $ — $ — $ 962,021 $ (16,319) December 31, 2020 Agency bond securities $ 189,127 $ (1,713) $ — $ — $ 189,127 $ (1,713) Agency mortgage-backed securities 162,579 (337) — — 162,579 (337) Total investment securities $ 351,706 $ (2,050) $ — $ — $ 351,706 $ (2,050) |
Schedule of Maturity Dates for Available-for-Sale Investment Securities | As of June 30, 2021, the contractual maturities of our available-for-sale investment securities were as follows: Amortized cost Fair value (In thousands) Due after one year through five years $ 10,000 $ 10,007 Due after five years through ten years 190,840 185,766 Due after ten years 69,770 68,852 Mortgage and asset-backed securities 834,431 825,888 Total investment securities $ 1,105,041 $ 1,090,513 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable, net consisted of the following: June 30, 2021 December 31, 2020 (In thousands) Trade receivables $ 23,966 $ 25,279 Reserve for uncollectible trade receivables (315) (315) Net trade receivables 23,651 24,964 Overdrawn cardholder balances from purchase transactions 8,216 3,229 Reserve for uncollectible overdrawn accounts from purchase transactions (5,512) (1,653) Net overdrawn cardholder balances from purchase transactions 2,704 1,576 Overdrawn cardholder balances from maintenance fees 3,637 3,165 Total net overdrawn account balances due from cardholders 6,341 4,741 Receivables due from card issuing banks 5,278 4,377 Fee advances, net 2,098 21,424 Other receivables 20,931 12,249 Accounts receivable, net $ 58,299 $ 67,755 Activity in the reserve for uncollectible overdrawn accounts from purchase transactions consisted of the following: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Balance, beginning of period $ 2,280 $ 3,680 $ 1,653 $ 3,398 Provision for uncollectible overdrawn accounts from purchase transactions 7,219 3,082 10,213 4,398 Charge-offs (3,987) (1,692) (6,354) (2,726) Balance, end of period $ 5,512 $ 5,070 $ 5,512 $ 5,070 |
Loans to Bank Customers (Tables
Loans to Bank Customers (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 credit 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) June 30, 2021 Residential $ — $ — $ — $ — $ 3,108 $ 3,108 Commercial — — — — 4,114 4,114 Installment — — — — 377 377 Consumer 3,902 88 — 3,990 8,540 12,530 Secured credit card 480 240 383 1,103 12,816 13,919 Total loans $ 4,382 $ 328 $ 383 $ 5,093 $ 28,955 $ 34,048 Percentage of outstanding 12.9 % 1.0 % 1.1 % 15.0 % 85.0 % 100.0 % December 31, 2020 Residential $ — $ — $ — $ — $ 3,008 $ 3,008 Commercial — — — — 3,435 3,435 Installment — — — — 497 497 Secured credit card 864 699 1,363 2,926 11,902 14,828 Total loans $ 864 $ 699 $ 1,363 $ 2,926 $ 18,842 $ 21,768 Percentage of outstanding 4.0 % 3.2 % 6.3 % 13.4 % 86.6 % 100.0 % |
Schedule of Nonperforming Loans | The following table presents the carrying value, gross of the related allowance for credit 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, 2020 for further information on the criteria for classification as nonperforming. June 30, 2021 December 31, 2020 (In thousands) Residential $ 219 $ 240 Installment 129 137 Secured credit card 383 1,363 Total loans $ 731 $ 1,740 |
Schedule of Credit Quality Indicators Related to Loan Portfolio | The table below presents the carrying value, gross of the related allowance for credit losses, of our loans within the primary credit quality indicators related to our loan portfolio: Note 6—Loans to Bank Customers (continued) June 30, 2021 December 31, 2020 Non-Classified Classified Non-Classified Classified (In thousands) Residential $ 2,889 $ 219 $ 2,768 $ 240 Commercial 4,114 — 3,435 — Installment 248 129 360 137 Consumer 12,530 — — — Secured credit card 13,536 383 13,465 1,363 Total loans $ 33,317 $ 731 $ 20,028 $ 1,740 |
Schedule of Troubled Debt Restructurings | The following table presents our impaired loans and loans that we modified as TDRs as of June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 Unpaid Principal Balance Carrying Value Unpaid Principal Balance Carrying Value (In thousands) Residential $ 219 $ 164 $ 240 $ 180 Installment 129 96 137 103 |
Schedule of Allowance for Loan Losses | Activity in the allowance for credit losses on our loan portfolio consisted of the following: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Balance, beginning of period $ 1,531 $ 1,057 $ 757 $ 1,166 Provision for loans 8,733 62 10,143 254 Loans charged off (3,645) (634) (4,352) (1,121) Recoveries of loans previously charged off 74 85 145 271 Balance, end of period $ 6,693 $ 570 $ 6,693 $ 570 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Deposits [Abstract] | |
Schedule of Deposits | Deposits are categorized as non-interest or interest-bearing deposits as follows: June 30, 2021 December 31, 2020 (In thousands) Non-interest bearing deposit accounts $ 2,835,881 $ 2,704,050 Interest-bearing deposit accounts Checking accounts 5,282 5,060 Savings 7,348 8,505 GPR deposits 11,235 12,955 Time deposits, denominations greater than or equal to $100 4,211 3,767 Time deposits, denominations less than $100 825 779 Total interest-bearing deposit accounts 28,901 31,066 Total deposits $ 2,864,782 $ 2,735,116 |
Schedule of Contractual Maturities For Total Time Deposits | The scheduled contractual maturities for total time deposits are presented in the table below: June 30, 2021 (In thousands) Due in 2021 $ 623 Due in 2022 1,750 Due in 2023 1,166 Due in 2024 562 Due in 2025 504 Thereafter 431 Total time deposits $ 5,036 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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: Six Months Ended June 30, 2021 2020 U.S. federal statutory tax rate 21.0 % 21.0 % State income taxes, net of federal tax benefit 1.1 (0.6) General business credits (1.9) (6.6) Employee stock-based compensation (2.9) 1.8 IRC 162(m) limitation 6.4 8.1 Nondeductible expenses 0.1 0.7 Other (0.3) (0.5) Effective tax rate 23.5 % 23.9 % |
Schedule of Income Tax Contingencies | The reconciliation of the beginning unrecognized tax benefits balance to the ending balance is as follows: Six Months Ended June 30, 2021 2020 (In thousands) Beginning balance $ 9,518 $ 8,398 Increases related to positions taken during prior years — 235 Increases related to positions taken during the current year 1,470 1,200 Ending balance $ 10,988 $ 9,833 The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate $ 10,801 $ 9,660 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | Restricted stock units subject to service only conditions for the six months ended June 30, 2021 was as follows: Shares Weighted-Average Grant-Date Fair Value (In thousands, except per share data) Outstanding at December 31, 2020 1,222 $ 36.24 Restricted stock units granted 697 48.24 Restricted stock units vested (376) 35.19 Restricted stock units canceled (157) 39.30 Outstanding at June 30, 2021 1,386 $ 42.21 Performance-Based Restricted Stock Units Performance-based restricted stock unit activity for the six months ended June 30, 2021 was as follows: Shares Weighted-Average Grant-Date Fair Value (In thousands, except per share data) Outstanding at December 31, 2020 946 $ 35.62 Performance restricted stock units granted (at target) 401 46.93 Performance restricted stock units vested (241) 37.48 Performance restricted stock units canceled (62) 48.42 Adjustment for completed performance periods 110 33.41 Outstanding at June 30, 2021 1,154 $ 37.76 |
Schedule of Stock Option Activity | Total stock option activity for the six months ended June 30, 2021 was as follows: Options Weighted-Average Exercise Price (In thousands, except per share data) Outstanding at December 31, 2020 1,634 $ 32.04 Options exercised (64) 28.23 Options canceled (362) 50.80 Outstanding at June 30, 2021 1,208 $ 26.60 Exercisable at June 30, 2021 624 $ 29.19 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings (Loss) Per Share | The calculation of basic and diluted earnings per share (EPS) was as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands, except per share data) Basic earnings per Class A common share Numerator: Net income $ 24,933 $ 3,294 $ 50,668 $ 50,139 Amount attributable to unvested Walmart restricted shares (235) (52) (517) (828) Net income allocated to Class A common stockholders $ 24,698 $ 3,242 $ 50,151 $ 49,311 Denominator: Weighted-average Class A shares issued and outstanding 54,005 52,275 53,829 52,084 Basic earnings per Class A common share $ 0.46 $ 0.06 $ 0.93 $ 0.95 Diluted earnings per Class A common share Numerator: Net income allocated to Class A common stockholders $ 24,698 $ 3,242 $ 50,151 $ 49,311 Re-allocated earnings 4 1 11 13 Diluted net income allocated to Class A common stockholders $ 24,702 $ 3,243 $ 50,162 $ 49,324 Denominator: Weighted-average Class A shares issued and outstanding 54,005 52,275 53,829 52,084 Dilutive potential common shares: Stock options 446 58 477 57 Service-based restricted stock units 362 567 453 469 Performance-based restricted stock units 242 258 293 299 Employee stock purchase plan 6 6 7 4 Diluted weighted-average Class A shares issued and outstanding 55,061 53,164 55,059 52,913 Diluted earnings per Class A common share $ 0.45 $ 0.06 $ 0.91 $ 0.93 |
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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Class A common stock Options to purchase Class A common stock 139 795 139 772 Service-based restricted stock units 562 268 320 295 Performance-based restricted stock units 829 453 742 286 Unvested Walmart restricted shares 515 840 555 875 Total 2,045 2,356 1,756 2,228 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Carried at Fair Value | As of June 30, 2021 and December 31, 2020, our assets and liabilities carried at fair value on a recurring basis were as follows: Level 1 Level 2 Level 3 Total Fair Value June 30, 2021 (In thousands) Assets Corporate bonds $ — $ 10,007 $ — $ 10,007 Agency bond securities — 224,580 — 224,580 Agency mortgage-backed securities — 817,771 — 817,771 Municipal bonds — 30,038 — 30,038 Asset-backed securities — 8,117 — 8,117 Total assets $ — $ 1,090,513 $ — $ 1,090,513 Liabilities Contingent consideration $ — $ — $ 3,300 $ 3,300 December 31, 2020 Assets Corporate bonds $ — $ 10,110 $ — $ 10,110 Agency bond securities — 234,157 — 234,157 Agency mortgage-backed securities — 691,029 — 691,029 Municipal bonds — 30,501 — 30,501 Asset-backed securities — 5,172 — 5,172 Total assets $ — $ 970,969 $ — $ 970,969 Liabilities Contingent consideration $ — $ — $ 5,300 $ 5,300 |
Schedule of Changes in Contingent Consideration Payable | The following table presents changes in our contingent consideration payable for the three and six months ended June 30, 2021 and 2020, which is categorized in Level 3 of the fair value hierarchy: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Balance, beginning of period $ 4,300 $ 8,300 $ 5,300 $ 9,300 Payments of contingent consideration (1,000) (1,000) (2,000) (2,000) Balance, end of period $ 3,300 $ 7,300 $ 3,300 $ 7,300 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 and December 31, 2020 are presented in the table below. June 30, 2021 December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Financial Assets Loans to bank customers, net of allowance $ 27,355 $ 27,132 $ 21,011 $ 20,421 Financial Liabilities Deposits $ 2,864,782 $ 2,864,221 $ 2,735,116 $ 2,735,072 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of Supplemental Lease Information | Supplemental information related to our ROU assets and related lease liabilities is as follows: June 30, 2021 Cash paid for operating lease liabilities (in thousands) $ 5,893 Weighted average remaining lease term (years) 3.1 Weighted average discount rate 4.8 % |
Schedule of Maturities of Operating Lease Liabilities | Maturities of our operating lease liabilities as of June 30, 2021 is as follows: Operating Leases (In thousands) Remainder of 2021 $ 4,212 2022 7,833 2023 3,740 2024 3,658 2025 1,012 20,455 Less: imputed interest (1,797) Total lease liabilities $ 18,658 |
Significant Retailer and Part_2
Significant Retailer and Partner Concentration (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Walmart 23% 29% 24% 27% In addition, approximately 20% and 18% of our total operating revenues for the three and six months ended June 30, 2021, respectively, were generated from a single BaaS partner, without a corresponding concentration to our gross profit for the period. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting | The following tables present financial information for each of our reportable segments for the periods then ended: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Segment Revenue (In thousands) Consumer Services $ 182,093 $ 162,639 $ 366,434 $ 315,561 B2B Services 112,589 76,619 218,564 150,459 Money Movement Services 66,019 65,667 156,386 185,719 Corporate and Other (2,763) (4,906) (3,641) (5,179) Total segment revenues 357,938 300,019 737,743 646,560 Net revenue adjustment 11,435 16,221 25,116 31,849 Total operating revenues $ 369,373 $ 316,240 $ 762,859 $ 678,409 Net revenue adjustments represent commissions and certain processing-related costs associated with our BaaS products and services, which are netted against our B2B Services revenues when evaluating segment performance. Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Segment Profit (In thousands) Consumer Services $ 55,790 $ 58,412 $ 109,317 $ 108,797 B2B Services 18,174 16,327 35,707 36,154 Money Movement Services 38,192 27,842 87,006 94,561 Corporate and Other (49,232) (57,331) (95,746) (102,144) Total segment profit 62,924 45,250 136,284 137,368 Reconciliation to income before income taxes Depreciation and amortization of property, equipment and internal-use software 13,981 14,479 27,181 28,176 Stock based compensation and related employer taxes 8,444 13,758 25,626 25,336 Amortization of acquired intangible assets 6,943 6,952 13,887 14,231 Impairment charges — 1,088 — 1,088 Other expense 1,753 3,583 3,802 4,298 Operating income 31,803 5,390 65,788 64,239 Interest expense, net 38 443 75 684 Other income, net 1,633 2,154 547 2,346 Income before income taxes $ 33,398 $ 7,101 $ 66,260 $ 65,901 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | $ 365,877 | $ 314,101 | $ 754,030 | $ 669,427 |
Deferred revenue, revenue recognized | 9,100 | 8,900 | 26,600 | 25,900 |
Transferred point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 221,655 | 206,780 | 472,286 | 462,238 |
Transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 144,222 | 107,321 | 281,744 | 207,189 |
Consumer Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 176,430 | 156,192 | 355,108 | 302,437 |
Consumer Services | Transferred point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 113,924 | 99,429 | 226,576 | 188,730 |
Consumer Services | Transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 62,506 | 56,763 | 128,532 | 113,707 |
B2B Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 123,428 | 92,242 | 242,536 | 181,271 |
B2B Services | Transferred point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 43,016 | 43,517 | 91,875 | 90,574 |
B2B Services | Transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 80,412 | 48,725 | 150,661 | 90,697 |
Cash processing revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 66,019 | 65,667 | 156,386 | 185,719 |
Cash processing revenues | Transferred point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 64,715 | 63,834 | 153,835 | 182,934 |
Cash processing revenues | Transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | $ 1,304 | $ 1,833 | $ 2,551 | $ 2,785 |
Investment Securities - Gross G
Investment Securities - Gross Gains and Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 1,105,041 | $ 966,841 |
Gross unrealized gains | 1,791 | 6,178 |
Gross unrealized losses | (16,319) | (2,050) |
Fair value | 1,090,513 | 970,969 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 10,000 | 10,000 |
Gross unrealized gains | 7 | 110 |
Gross unrealized losses | 0 | 0 |
Fair value | 10,007 | 10,110 |
Agency bond securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 230,840 | 235,839 |
Gross unrealized gains | 0 | 31 |
Gross unrealized losses | (6,260) | (1,713) |
Fair value | 224,580 | 234,157 |
Agency mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 826,446 | 686,108 |
Gross unrealized gains | 1,339 | 5,258 |
Gross unrealized losses | (10,014) | (337) |
Fair value | 817,771 | 691,029 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 29,770 | 29,977 |
Gross unrealized gains | 310 | 524 |
Gross unrealized losses | (42) | 0 |
Fair value | 30,038 | 30,501 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 7,985 | 4,917 |
Gross unrealized gains | 135 | 255 |
Gross unrealized losses | (3) | 0 |
Fair value | $ 8,117 | $ 5,172 |
Investment Securities - Continu
Investment Securities - Continuous Unrealized Loss (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Fair value, less than 12 months | $ 962,021,000 | $ 962,021,000 | $ 351,706,000 | ||
Unrealized loss, less than 12 months | (16,319,000) | (16,319,000) | (2,050,000) | ||
Fair value, 12 months or more | 0 | 0 | 0 | ||
Unrealized loss, 12 months or more | 0 | 0 | 0 | ||
Total fair value | 962,021,000 | 962,021,000 | 351,706,000 | ||
Total unrealized loss | (16,319,000) | (16,319,000) | (2,050,000) | ||
OTTI Loss, AFS | 0 | $ 0 | 0 | $ 0 | |
Agency bond securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fair value, less than 12 months | 224,579,000 | 224,579,000 | 189,127,000 | ||
Unrealized loss, less than 12 months | (6,260,000) | (6,260,000) | (1,713,000) | ||
Fair value, 12 months or more | 0 | 0 | 0 | ||
Unrealized loss, 12 months or more | 0 | 0 | 0 | ||
Total fair value | 224,579,000 | 224,579,000 | 189,127,000 | ||
Total unrealized loss | (6,260,000) | (6,260,000) | (1,713,000) | ||
Agency mortgage-backed securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fair value, less than 12 months | 720,761,000 | 720,761,000 | 162,579,000 | ||
Unrealized loss, less than 12 months | (10,014,000) | (10,014,000) | (337,000) | ||
Fair value, 12 months or more | 0 | 0 | 0 | ||
Unrealized loss, 12 months or more | 0 | 0 | 0 | ||
Total fair value | 720,761,000 | 720,761,000 | 162,579,000 | ||
Total unrealized loss | (10,014,000) | (10,014,000) | $ (337,000) | ||
Municipal bonds | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fair value, less than 12 months | 13,638,000 | 13,638,000 | |||
Unrealized loss, less than 12 months | (42,000) | (42,000) | |||
Fair value, 12 months or more | 0 | 0 | |||
Unrealized loss, 12 months or more | 0 | 0 | |||
Total fair value | 13,638,000 | 13,638,000 | |||
Total unrealized loss | (42,000) | (42,000) | |||
Asset-backed securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fair value, less than 12 months | 3,043,000 | 3,043,000 | |||
Unrealized loss, less than 12 months | (3,000) | (3,000) | |||
Fair value, 12 months or more | 0 | 0 | |||
Unrealized loss, 12 months or more | 0 | 0 | |||
Total fair value | 3,043,000 | 3,043,000 | |||
Total unrealized loss | $ (3,000) | $ (3,000) |
Investment Securities - Maturit
Investment Securities - Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Amortized cost | ||
Due after one year through five years | $ 10,000 | |
Due after five years through ten years | 190,840 | |
Due after ten years | 69,770 | |
Mortgage and asset-backed securities | 834,431 | |
Amortized cost | 1,105,041 | $ 966,841 |
Fair value | ||
Due after one year through five years | 10,007 | |
Due after five years through ten years | 185,766 | |
Due after ten years | 68,852 | |
Mortgage and asset-backed securities | 825,888 | |
Fair value | $ 1,090,513 | $ 970,969 |
Accounts Receivable - Accounts
Accounts Receivable - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable current and noncurrent, net | $ 58,299 | $ 67,755 | ||||
Trade receivables | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable, gross | 23,966 | 25,279 | ||||
Reserve for uncollectible overdrawn accounts | (315) | (315) | ||||
Accounts receivable current and noncurrent, net | 23,651 | 24,964 | ||||
Overdrawn cardholder balances from purchase transactions | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable, gross | 8,216 | 3,229 | ||||
Reserve for uncollectible overdrawn accounts | (5,512) | $ (2,280) | (1,653) | $ (5,070) | $ (3,680) | $ (3,398) |
Accounts receivable current and noncurrent, net | 2,704 | 1,576 | ||||
Overdrawn cardholder balances from maintenance fees | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable current and noncurrent, net | 3,637 | 3,165 | ||||
Total net overdrawn account balances due from cardholders | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable current and noncurrent, net | 6,341 | 4,741 | ||||
Receivables due from card issuing banks | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable current and noncurrent, net | 5,278 | 4,377 | ||||
Fee advances, net | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable current and noncurrent, net | 2,098 | 21,424 | ||||
Other receivables | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable current and noncurrent, net | $ 20,931 | $ 12,249 |
Accounts Receivable - Reserve F
Accounts Receivable - Reserve For Uncollectible Overdrawn Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Uncollectible Overdrawn Accounts [Roll Forward] | ||||
Provision for uncollectible overdrawn accounts from purchase transactions | $ 10,213 | $ 4,398 | ||
Overdrawn cardholder balances from purchase transactions | ||||
Uncollectible Overdrawn Accounts [Roll Forward] | ||||
Balance, beginning of period | $ 2,280 | $ 3,680 | 1,653 | 3,398 |
Provision for uncollectible overdrawn accounts from purchase transactions | 7,219 | 3,082 | 10,213 | 4,398 |
Charge-offs | (3,987) | (1,692) | (6,354) | (2,726) |
Balance, end of period | $ 5,512 | $ 5,070 | $ 5,512 | $ 5,070 |
Loans to Bank Customers - Loan
Loans to Bank Customers - Loan Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | $ 34,048 | $ 21,768 |
Total Outstanding (as a percent) | 100.00% | 100.00% |
30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | $ 4,382 | $ 864 |
Past Due (as a percent) | 12.90% | 4.00% |
60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | $ 328 | $ 699 |
Past Due (as a percent) | 1.00% | 3.20% |
90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | $ 383 | $ 1,363 |
Past Due (as a percent) | 1.10% | 6.30% |
Financial Asset, Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | $ 5,093 | $ 2,926 |
Past Due (as a percent) | 15.00% | 13.40% |
Financial Asset, Not Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | $ 28,955 | $ 18,842 |
Total Current or Less Than 30 Days Past Due (as a percent) | 85.00% | 86.60% |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | $ 3,108 | $ 3,008 |
Residential | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | 0 | 0 |
Residential | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | 0 | 0 |
Residential | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | 0 | 0 |
Residential | Financial Asset, Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | 0 | 0 |
Residential | Financial Asset, Not Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | 3,108 | 3,008 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | 4,114 | 3,435 |
Commercial | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | 0 | 0 |
Commercial | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | 0 | 0 |
Commercial | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | 0 | 0 |
Commercial | Financial Asset, Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | 0 | 0 |
Commercial | Financial Asset, Not Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | 4,114 | 3,435 |
Installment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | 377 | 497 |
Installment | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | 0 | 0 |
Installment | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | 0 | 0 |
Installment | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | 0 | 0 |
Installment | Financial Asset, Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | 0 | 0 |
Installment | Financial Asset, Not Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | 377 | 497 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | 12,530 | |
Consumer | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | 3,902 | |
Consumer | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | 88 | |
Consumer | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | 0 | |
Consumer | Financial Asset, Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | 3,990 | |
Consumer | Financial Asset, Not Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | 8,540 | |
Secured credit card | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | 13,919 | 14,828 |
Secured credit card | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | 480 | 864 |
Secured credit card | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | 240 | 699 |
Secured credit card | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | 383 | 1,363 |
Secured credit card | Financial Asset, Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | 1,103 | 2,926 |
Secured credit card | Financial Asset, Not Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Outstanding | $ 12,816 | $ 11,902 |
Loans to Bank Customers - Nonpe
Loans to Bank Customers - Nonperforming Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Nonperforming Loans [Line Items] | ||
Nonperforming loans | $ 731 | $ 1,740 |
Residential | ||
Nonperforming Loans [Line Items] | ||
Nonperforming loans | 219 | 240 |
Installment | ||
Nonperforming Loans [Line Items] | ||
Nonperforming loans | 129 | 137 |
Secured credit card | ||
Nonperforming Loans [Line Items] | ||
Nonperforming loans | $ 383 | $ 1,363 |
Loans to Bank Customers - Credi
Loans to Bank Customers - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Outstanding Loans [Line Items] | ||
Total loans | $ 27,355 | $ 21,011 |
Non-Classified | ||
Outstanding Loans [Line Items] | ||
Total loans | 33,317 | 20,028 |
Classified | ||
Outstanding Loans [Line Items] | ||
Total loans | 731 | 1,740 |
Residential | Non-Classified | ||
Outstanding Loans [Line Items] | ||
Total loans | 2,889 | 2,768 |
Residential | Classified | ||
Outstanding Loans [Line Items] | ||
Total loans | 219 | 240 |
Commercial | Non-Classified | ||
Outstanding Loans [Line Items] | ||
Total loans | 4,114 | 3,435 |
Commercial | Classified | ||
Outstanding Loans [Line Items] | ||
Total loans | 0 | 0 |
Installment | Non-Classified | ||
Outstanding Loans [Line Items] | ||
Total loans | 248 | 360 |
Installment | Classified | ||
Outstanding Loans [Line Items] | ||
Total loans | 129 | 137 |
Consumer | Non-Classified | ||
Outstanding Loans [Line Items] | ||
Total loans | 12,530 | 0 |
Consumer | Classified | ||
Outstanding Loans [Line Items] | ||
Total loans | 0 | 0 |
Secured credit card | Non-Classified | ||
Outstanding Loans [Line Items] | ||
Total loans | 13,536 | 13,465 |
Secured credit card | Classified | ||
Outstanding Loans [Line Items] | ||
Total loans | $ 383 | $ 1,363 |
Loans to Bank Customers - Troub
Loans to Bank Customers - Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Residential | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | $ 219 | $ 240 |
Carrying Value | 164 | 180 |
Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 129 | 137 |
Carrying Value | $ 96 | $ 103 |
Loans to Bank Customers - Allow
Loans to Bank Customers - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Allowance for Loan Losses [Roll Forward] | ||||
Balance, beginning of period | $ 1,531 | $ 1,057 | $ 757 | $ 1,166 |
Provision for loans | 8,733 | 62 | 10,143 | 254 |
Loans charged off | (3,645) | (634) | (4,352) | (1,121) |
Recoveries of loans previously charged off | 74 | 85 | 145 | 271 |
Balance, end of period | $ 6,693 | $ 570 | $ 6,693 | $ 570 |
Equity Method Investment (Detai
Equity Method Investment (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jan. 02, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||||
(Earnings) losses in equity method investments | $ (578,000) | $ 2,716,000 | |||
Walmart Program Agreement | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Capital contributions, authorized amount | $ 35,000,000 | ||||
TailFin Labs | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments | $ 61,500,000 | 61,500,000 | |||
(Earnings) losses in equity method investments | $ 700,000 | $ 2,800,000 | $ 2,300,000 | $ 2,900,000 | |
TailFin Labs | Walmart Program Agreement | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity interest | 20.00% |
Deposits - Summary of Deposits
Deposits - Summary of Deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Noninterest-bearing Deposit Liabilities, by Component [Abstract] | ||
Non-interest bearing deposit accounts | $ 2,835,881 | $ 2,704,050 |
Interest-bearing deposit accounts | ||
Checking accounts | 5,282 | 5,060 |
Savings | 7,348 | 8,505 |
GPR deposits | 11,235 | 12,955 |
Time deposits, denominations greater than or equal to $100 | 4,211 | 3,767 |
Time deposits, denominations less than $100 | 825 | 779 |
Total interest-bearing deposit accounts | 28,901 | 31,066 |
Total deposits | $ 2,864,782 | $ 2,735,116 |
Deposits - Contractual Maturiti
Deposits - Contractual Maturities (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Deposits [Abstract] | |
Due in 2021 | $ 623 |
Due in 2022 | 1,750 |
Due in 2023 | 1,166 |
Due in 2024 | 562 |
Due in 2025 | 504 |
Thereafter | 431 |
Total time deposits | $ 5,036 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revolving Credit Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Commitment fee | 0.20% | ||||
Revolving Credit Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Commitment fee | 0.35% | ||||
Line of credit | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 100,000,000 | ||||
Facility term | 5 years | ||||
Line of credit | $ 0 | $ 0 | |||
Bank Of America, N.A., Wells Fargo Bank, National Association, And Other Lenders | Line of credit | |||||
Debt Instrument [Line Items] | |||||
Interest expense | $ 0 | $ 400,000 | $ 0 | $ 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] | |||||
Margin included in variable base 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] | |||||
Margin included in variable base rate | 1.00% | ||||
Wells Fargo Bank | Line of credit | LIBOR | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable base rate | 1.25% | ||||
Wells Fargo Bank | Line of credit | LIBOR | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable base rate | 2.00% | ||||
Wells Fargo Bank | Line of credit | Base rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable base rate | 0.25% | ||||
Wells Fargo Bank | Line of credit | Base rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable base rate | 1.00% |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
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% | (0.60%) |
General business credits | (1.90%) | (6.60%) |
Employee stock-based compensation | (2.90%) | 1.80% |
IRC 162(m) limitation | 6.40% | 8.10% |
Nondeductible expenses | 0.10% | 0.70% |
Other | (0.30%) | (0.50%) |
Effective tax rate (percent) | 23.50% | 23.90% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | ||||
Decrease in IRC 162(m) limitation | $ 1,100,000 | |||
Increase in excess tax benefit, shared-based compensation and additional expenses | 3,100,000 | |||
Discrete tax benefits related to excess tax benefits from stock-based compensation | 1,900,000 | $ (1,200,000) | ||
Deferred tax assets, valuation allowance | 0 | |||
Unrecognized tax benefits | 10,988,000 | 9,833,000 | $ 9,518,000 | $ 8,398,000 |
Unrecognized tax benefits, income tax penalties and interest accrued | 600,000 | $ 700,000 | ||
State | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 68,800,000 | |||
State | Tax Year 2021-2039 | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 46,600,000 | |||
State | Indefinitely | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 22,200,000 | |||
State | Latest tax year | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforwards | 19,400,000 | |||
State | Tax year 2023-2027 | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforwards | 1,100,000 | |||
Federal | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | $ 19,200,000 | |||
Internal Revenue Service (IRS) | Minimum | State | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income tax examination, period | 4 years | |||
Internal Revenue Service (IRS) | Maximum | State | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income tax examination, period | 5 years |
Income Taxes - Rollforward of U
Income Taxes - Rollforward of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Beginning balance | $ 9,518 | $ 8,398 |
Increases related to positions taken during prior years | 0 | 235 |
Increases related to positions taken during the current year | 1,470 | 1,200 |
Ending balance | 10,988 | 9,833 |
The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate | $ 10,801 | $ 9,660 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Jan. 02, 2020 | May 31, 2017 |
Class of Stock [Line Items] | ||||
Share repurchase program authorized amount | $ 150,000,000 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 50,000,000 | |||
Common stock, shares issued (in shares) | 54,640,000 | 54,034,000 | ||
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) | 487,502 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee stock-based compensation | $ 8.4 | $ 13.6 | $ 25.6 | $ 25 |
Performance-based restricted stock units | 2010 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (in years) | 4 years | |||
Minimum | Performance-based restricted stock units | 2010 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target share percentage for shares issued | 0.00% | |||
Maximum | Performance-based restricted stock units | 2010 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target share percentage for shares issued | 200.00% |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock and Performance Stock Units (Details) shares in Thousands | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Non-Option equity instruments outstanding, beginning balance (in shares) | shares | 1,222 |
Non-Option equity instruments, granted (in shares) | shares | 697 |
Non-Option equity instruments, exercised (in shares) | shares | (376) |
Non-Option equity instruments, canceled (in shares) | shares | (157) |
Non-Option equity instruments outstanding, ending balance (in shares) | shares | 1,386 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Equity instruments other than options, nonvested, weighted average grant date fair value, beginning balance (in usd per share) | $ / shares | $ 36.24 |
Equity instruments other than options, grants in period, weighted average grant date fair value (in usd per share) | $ / shares | 48.24 |
Equity instruments other than options, vested in period, weighted average grant date fair value (in usd per share) | $ / shares | 35.19 |
Equity instruments other than options, canceled, weighted average grant date fair value (in usd per share) | $ / shares | 39.30 |
Equity instruments other than options, nonvested, weighted average grant date fair value , ending balance (in usd per share) | $ / shares | $ 42.21 |
Performance-based restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Non-Option equity instruments outstanding, beginning balance (in shares) | shares | 946 |
Non-Option equity instruments, granted (in shares) | shares | 401 |
Non-Option equity instruments, exercised (in shares) | shares | (241) |
Non-Option equity instruments, canceled (in shares) | shares | (62) |
Non-Option equity instruments outstanding, adjustments for completed performance periods (in shares) | shares | 110 |
Non-Option equity instruments outstanding, ending balance (in shares) | shares | 1,154 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Equity instruments other than options, nonvested, weighted average grant date fair value, beginning balance (in usd per share) | $ / shares | $ 35.62 |
Equity instruments other than options, grants in period, weighted average grant date fair value (in usd per share) | $ / shares | 46.93 |
Equity instruments other than options, vested in period, weighted average grant date fair value (in usd per share) | $ / shares | 37.48 |
Equity instruments other than options, canceled, weighted average grant date fair value (in usd per share) | $ / shares | $ 48.42 |
Equity instruments other than options, adjustments, weighted average grant date fair value (in usd per share) | $ / shares | 33.41 |
Equity instruments other than options, nonvested, weighted average grant date fair value , ending balance (in usd per share) | $ / shares | $ 37.76 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - $ / shares shares in Thousands | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding, beginning balance (in shares) | 1,634 |
Options, exercised in period (in shares) | (64) |
Options, canceled in period (in shares) | (362) |
Options outstanding, ending balance (in shares) | 1,208 |
Options, exercisable (in shares) | 624 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Options outstanding, beginning balance, weighted average exercise price (in usd per share) | $ 32.04 |
Options, exercises in period, weighted average exercise price (in usd per share) | 28.23 |
Options, canceled in period, weighted average canceled price (in usd per share) | 50.80 |
Options outstanding, ending balance, weighted average exercise price (in usd per share) | 26.60 |
Options, exercisable, weighted average exercise price (in usd per share) | $ 29.19 |
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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Basic earnings per Class A common share | ||||
Net income | $ 24,933 | $ 3,294 | $ 50,668 | $ 50,139 |
Net income allocated to Class A common stockholders | $ 24,698 | $ 3,242 | $ 50,151 | $ 49,311 |
Basic weighted-average common shares issued and outstanding (in shares) | 54,005 | 52,275 | 53,829 | 52,084 |
Basic earnings per common share (in usd per share) | $ 0.46 | $ 0.06 | $ 0.93 | $ 0.95 |
Diluted earnings per Class A common share | ||||
Net income allocated to Class A common stockholders | $ 24,698 | $ 3,242 | $ 50,151 | $ 49,311 |
Re-allocated earnings | 4 | 1 | 11 | 13 |
Diluted net income allocated to Class A common stockholders | $ 24,702 | $ 3,243 | $ 50,162 | $ 49,324 |
Basic weighted-average common shares issued and outstanding (in shares) | 54,005 | 52,275 | 53,829 | 52,084 |
Diluted weighted-average Class A shares issued and outstanding (in shares) | 55,061 | 53,164 | 55,059 | 52,913 |
Diluted earnings per common share (in usd per share) | $ 0.45 | $ 0.06 | $ 0.91 | $ 0.93 |
Stock options | ||||
Diluted earnings per Class A common share | ||||
Dilutive potential common shares (in shares) | 446 | 58 | 477 | 57 |
Restricted stock units | ||||
Diluted earnings per Class A common share | ||||
Dilutive potential common shares (in shares) | 362 | 567 | 453 | 469 |
Performance-based restricted stock units | ||||
Diluted earnings per Class A common share | ||||
Dilutive potential common shares (in shares) | 242 | 258 | 293 | 299 |
Employee stock purchase plan | ||||
Diluted earnings per Class A common share | ||||
Dilutive potential common shares (in shares) | 6 | 6 | 7 | 4 |
Other Classes of Common Stock | ||||
Basic earnings per Class A common share | ||||
Net income allocated to Class A common stockholders | $ (235) | $ (52) | $ (517) | $ (828) |
Diluted earnings per Class A common share | ||||
Net income allocated to Class A common stockholders | (235) | (52) | (517) | (828) |
Common Class A | ||||
Basic earnings per Class A common share | ||||
Net income allocated to Class A common stockholders | 24,698 | 3,242 | 50,151 | 49,311 |
Diluted earnings per Class A common share | ||||
Net income allocated to Class A common stockholders | $ 24,698 | $ 3,242 | $ 50,151 | $ 49,311 |
Earnings per Common Share - Ant
Earnings per Common Share - Antidilutive Shares (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Antidilutive Shares [Line Items] | ||||
Antidilutive shares (in shares) | 2,045 | 2,356 | 1,756 | 2,228 |
Stock options | ||||
Antidilutive Shares [Line Items] | ||||
Antidilutive shares (in shares) | 139 | 795 | 139 | 772 |
Restricted stock units | ||||
Antidilutive Shares [Line Items] | ||||
Antidilutive shares (in shares) | 562 | 268 | 320 | 295 |
Performance-based restricted stock units | ||||
Antidilutive Shares [Line Items] | ||||
Antidilutive shares (in shares) | 829 | 453 | 742 | 286 |
Unvested Walmart restricted shares | ||||
Antidilutive Shares [Line Items] | ||||
Antidilutive shares (in shares) | 515 | 840 | 555 | 875 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 1,090,513 | $ 970,969 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 10,007 | 10,110 |
Agency bond securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 224,580 | 234,157 |
Agency mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 817,771 | 691,029 |
Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 30,038 | 30,501 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 8,117 | 5,172 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 1,090,513 | 970,969 |
Contingent consideration | 3,300 | 5,300 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Contingent consideration | 0 | 0 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 1,090,513 | 970,969 |
Contingent consideration | 0 | 0 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Contingent consideration | 3,300 | 5,300 |
Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 10,007 | 10,110 |
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 | 10,007 | 10,110 |
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 | 224,580 | 234,157 |
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 | 224,580 | 234,157 |
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 | 817,771 | 691,029 |
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 | 817,771 | 691,029 |
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 | 30,038 | 30,501 |
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 | 30,038 | 30,501 |
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 | 8,117 | 5,172 |
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 | 8,117 | 5,172 |
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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | $ 4,300 | $ 8,300 | $ 5,300 | $ 9,300 |
Payments of contingent consideration | (1,000) | (1,000) | (2,000) | (2,000) |
Balance, end of period | $ 3,300 | $ 7,300 | $ 3,300 | $ 7,300 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans to bank customers, net of allowance | $ 27,355 | $ 21,011 |
Deposits | 2,864,782 | 2,735,116 |
Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans to bank customers, net of allowance | 27,132 | 20,421 |
Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposits | $ 2,864,221 | $ 2,735,072 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease expense | $ 0.6 | $ 2.2 | $ 1.8 | $ 4.6 |
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease term | 1 year | 1 year | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease term | 5 years | 5 years |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Leases [Abstract] | |
Cash paid for operating lease liabilities (in thousands) | $ 5,893 |
Weighted average remaining lease term (years) | 3 years 1 month 6 days |
Weighted average discount rate | 4.80% |
Leases - Maturities of Operatin
Leases - Maturities of Operating Leases (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Operating Leases | |
Remainder of 2021 | $ 4,212 |
2022 | 7,833 |
2023 | 3,740 |
2024 | 3,658 |
2025 | 1,012 |
Payments due | 20,455 |
Less: imputed interest | (1,797) |
Total lease liabilities | $ 18,658 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | May 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Jan. 02, 2020 |
Business Acquisition [Line Items] | ||||
Loss contingency accrual | $ 0 | $ 0 | ||
Recurring | ||||
Business Acquisition [Line Items] | ||||
Contingent consideration | 3,300,000 | 5,300,000 | ||
Recurring | Level 3 | ||||
Business Acquisition [Line Items] | ||||
Contingent consideration | 3,300,000 | $ 5,300,000 | ||
Tax Refund Solutions | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire businesses | $ 165,000,000 | |||
UniRush, LLC | ||||
Business Acquisition [Line Items] | ||||
Contingent consideration, earn-out payable | $ 4,000,000 | |||
Contingent consideration, earn-out period | 5 years | |||
Walmart Program Agreement | ||||
Business Acquisition [Line Items] | ||||
Capital contributions, authorized amount | $ 35,000,000 |
Significant Retailer and Part_3
Significant Retailer and Partner Concentration (Details) - Percent of total operating revenues | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Customer concentration risk | Walmart | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 23.00% | 29.00% | 24.00% | 27.00% |
Partner concentration risk | Single BaaS Partner | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 20.00% | 18.00% |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($)retail_location | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)segmentretail_location | Jun. 30, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments (in segments) | segment | 3 | |||
Number of retail locations (more than) | retail_location | 90,000 | 90,000 | ||
Total segment revenues | $ 357,938 | $ 300,019 | $ 737,743 | $ 646,560 |
Revenues | 369,373 | 316,240 | 762,859 | 678,409 |
Total segment profit | 62,924 | 45,250 | 136,284 | 137,368 |
Reconciliation to income before income taxes | ||||
Depreciation and amortization of property, equipment and internal-use software | 27,181 | 28,175 | ||
Stock based compensation and related employer taxes | 8,400 | 13,600 | 25,600 | 25,000 |
Amortization of acquired intangible assets | 13,887 | 14,231 | ||
Operating income | 31,803 | 5,390 | 65,788 | 64,239 |
Interest expense, net | 38 | 443 | 75 | 684 |
Other income, net | 1,633 | 2,154 | 547 | 2,346 |
Income before income taxes | 33,398 | 7,101 | 66,260 | 65,901 |
Operating segments | Consumer Services | ||||
Segment Reporting Information [Line Items] | ||||
Total segment revenues | 182,093 | 162,639 | 366,434 | 315,561 |
Total segment profit | 55,790 | 58,412 | 109,317 | 108,797 |
Operating segments | B2B Services | ||||
Segment Reporting Information [Line Items] | ||||
Total segment revenues | 112,589 | 76,619 | 218,564 | 150,459 |
Total segment profit | 18,174 | 16,327 | 35,707 | 36,154 |
Operating segments | Cash processing revenues | ||||
Segment Reporting Information [Line Items] | ||||
Total segment revenues | 66,019 | 65,667 | 156,386 | 185,719 |
Total segment profit | 38,192 | 27,842 | 87,006 | 94,561 |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Total segment revenues | (2,763) | (4,906) | (3,641) | (5,179) |
Total segment profit | (49,232) | (57,331) | (95,746) | (102,144) |
Segment reconciling items | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 11,435 | 16,221 | 25,116 | 31,849 |
Reconciliation to income before income taxes | ||||
Depreciation and amortization of property, equipment and internal-use software | 13,981 | 14,479 | 27,181 | 28,176 |
Stock based compensation and related employer taxes | 8,444 | 13,758 | 25,626 | 25,336 |
Amortization of acquired intangible assets | 6,943 | 6,952 | 13,887 | 14,231 |
Impairment charges | 0 | 1,088 | 0 | 1,088 |
Other expense | $ 1,753 | $ 3,583 | $ 3,802 | $ 4,298 |
Uncategorized Items - gdot-2021
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |