Company: GDOT
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001386278-25-000076
Chunk: 153

Company: GREEN DOT CORP
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 8
Chunk 153
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 differences are as follows: Nine Months Ended September 30, 20252024U.S. federal statutory tax rate21.0 %21.0 %State income taxes, net of federal tax benefit4.2 6.1 Foreign tax rate differential(1.5)1.4 General business credits0.9 11.6 IRC 162(m) limitation0.6 3.8 Stock-based compensation(2.4)(10.0)Bank-owned life insurance income1.5 2.8 Bank-owned life insurance surrender— (7.4)Nondeductible expenses and penalties(0.2)(32.3)Global intangible low-tax income tax— (1.5)Change in valuation allowance(4.1)— Other(0.1)(0.1)Effective tax rate19.9 %(4.6)%The effective tax rate for the nine months ended September 30, 2025 and 2024 differs from the statutory federal income tax rate of 21%, primarily due to state income taxes, net of federal tax benefits, general business credits, stock-based compensation, and the Internal Revenue Code (the "IRC") 162(m) limitation on the deductibility of executive compensation. The net increase in the effective tax rate for the nine months ended September 30, 2025 from the prior year comparable period was due to several factors, including an increase of $0.8 million in the amount of compensation expense that was subject to the IRC 162(m) limitation on the deductibility of certain executive compensation, an increase of $2.6 million in the valuation allowance on the deferred tax assets of our China subsidiary, a lower tax rate benefit due to a decrease of $1.0 million in general business credits, and a lower tax rate benefit from the cash surrender value in bank-owned life insurance policies. These increases were partially offset by a decrease of $1.2 million decrease in tax expense associated with shortfalls from stock-based compensation, a decrease of $0.9 million in state income taxes expense, net of federal benefits, a decrease of $9.7 million in tax expense from nondeductible expenses and penalties primarily related to the tax effect associated with the civil money penalty we incurred in 2024 for our Consent Order received from the Federal Reserve Board, and a decrease of $2.3 million related to bank-owned life insurance surrender penalties we incurred in connection with the surrender and restructuring of our