Company: GDOT
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001386278-25-000034
Chunk: 130

Company: GREEN DOT CORP
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 130
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-ClassifiedClassified(In thousands)Residential$7,369 $31 $6,841 $34 Commercial2,571 — 2,585 — Installment6,247 — 5,439 — Consumer36,777 — 25,536 — Secured credit card6,049 2,022 6,532 2,536 Total loans$59,013 $2,053 $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 March 31,20252024(In thousands)Balance, beginning of period$17,542 $11,383 Provision for loans11,127 4,788 Loans charged off(6,347)(5,859)Recoveries of loans previously charged off34 64 Balance, end of period$22,356 $10,376 

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, 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, 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