Company: GDOT
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001386278-25-000009
Chunk: 137

Company: GREEN DOT CORP
Filing Date: 2025-03-04
Form: 10-K
Item: Item 8
Chunk 137
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 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:December 31, 2024December 31, 2023Non-ClassifiedClassifiedNon-ClassifiedClassified(In thousands)Residential$6,841 $34 $5,046 $49 Commercial2,585 — 2,716 — Installment5,439 — 4,278 79 Consumer25,536 — 20,019 — Secured credit card6,532 2,536 7,155 2,575 Total loans$46,933 $2,570 $39,214 $2,703 Allowance for Credit LossesActivity in the allowance for credit losses on our loan portfolio consisted of the following:Year Ended December 31,202420232022(In thousands)Balance, beginning of period$11,383 $9,078 $5,555 Provision for loans27,562 26,311 32,352 Loans charged off(21,613)(24,224)(28,829)Recoveries of loans previously charged off210 218 — Balance, end of period$17,542 $11,383 $9,078 

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Table of ContentsGREEN DOT CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

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 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,