Company: GDOT
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001386278-25-000076
Chunk: 193

Company: GREEN DOT CORP
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 8
Chunk 193
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 payment and impairment charges related to the termination of our partnership agreement to develop a new core banking system in the prior year comparable period that did not recur in the current period.

Restructuring and Other Charges — Restructuring and other charges totaled $19.9 million for the nine months ended September 30, 2025 and due to our previously announced restructuring plan discussed under "Overview."  Additionally, refer to Note 19 — Restructuring and Other Charges in the Consolidated Financial Statements included herein for a more detailed discussion of our restructuring and other charges.

Other Expense, net

Other expense, net totaled $101.7 million for the nine months ended September 30, 2025, an increase of $91.7 million, from the prior year comparable period. This increase was driven by our equity method losses associated with TailFin and resulted principally from a $70 million incentive payment that TailFin made in connection with the extension of the Walmart MoneyCard agreement and related agreements in the second quarter of 2025. We recorded the incentive payment as a component of equity in losses attributable to TailFin during the second quarter of 2025 under our HLBV method of accounting. In addition, during the first quarter of 2025, we determined we would sell certain available-for-sales securities in order to reposition the proceeds into higher yielding assets, which resulted in a realized loss of $24.8 million for the nine months ended September 30, 2025. These increases were partially offset by higher income earned from bank-owned life insurance policies.

41

Income Tax Expense and Benefit

The following table presents a breakdown of our effective tax rate among federal, state, and other:

 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 Stock-based compensation(2.4)(10.0)IRC 162(m) limitation0.6 3.8 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.