Company: GDOT
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001386278-25-000034
Chunk: 68

Company: GREEN DOT CORP
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 68
---

10

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

Note 6—Loans to Bank Customers (continued)Credit Quality IndicatorsWe closely monitor and assess the credit quality and credit risk of our loan portfolio on an ongoing basis. We continuously review and update loan risk classifications. We evaluate our loans using non-classified or classified as the primary credit quality indicator. Classified loans include those designated as substandard, doubtful, or loss, consistent with regulatory guidelines. Secured credit card loans are considered classified if they are greater than 90 days past due. However, our secured credit card portfolio is collateralized by cash deposits made by each accountholder in an amount equal to the user's available credit limit, which mitigates the risk of any significant credit 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:March 31, 2025December 31, 2024Non-ClassifiedClassifiedNon-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