Company: GDOT
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001386278-25-000076
Chunk: 148

Company: GREEN DOT CORP
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 8
Chunk 148
---
)Residential$7,609 $21 $6,841 $34 Commercial2,645 — 2,585 — Installment5,956 — 5,439 — Consumer31,843 — 25,536 — Secured credit card9,028 2,025 6,532 2,536 Total loans$57,081 $2,046 $46,933 $2,570 Allowance for Credit LossesActivity in the allowance for credit losses on our loan portfolio consisted of the following:Three Months Ended September 30,Nine Months Ended September 30,2025202420252024(In thousands)Balance, beginning of period$22,404 $17,360 $17,542 $11,383 Provision for loans4,054 5,724 19,138 22,471 Loans charged off(4,485)(5,340)(14,772)(16,240)Recoveries of loans previously charged off15 34 80 164 Balance, end of period$21,988 $17,778 $21,988 $17,778 

Note 7—Equity Method Investments

On January 2, 2020, we effectuated our agreement with Walmart to jointly establish a new fintech accelerator under the name TailFin Labs, LLC (“TailFin”), 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 was formed with a focus 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 that were made from January 2020 through January 2024. Our final payment under this commitment was made in January 2024.We account for our investment in TailFin 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 arrangement, we apply the Hypothetical Liquidation Book Value ("HLBV") method to determine the allocation of profits and losses since our liquidation rights and priorities