Company: GDOT
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001386278-25-000009
Chunk: 84

Company: GREEN DOT CORP
Filing Date: 2025-03-04
Form: 10-K
Item: Item 7
Chunk 84
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 system.

Other General and Administrative Expenses — Other general and administrative expenses totaled $370.0 million for the year ended December 31, 2024, an increase of $14.4 million, or 4%, from the comparable prior year period. The increase in other general and administrative expenses during the year ended December 31, 2024 was  due to a civil money penalty paid under the Consent Order, higher professional services fees related to our AML program, including improvements to our compliance controls, policies and procedures and the settlement payment and impairment charges related to internal-use software and other related assets associated with the termination of our partnership agreement to develop a new core banking system. These increases in other general and administrative expenses were partially offset by a decrease in overall transaction losses attributable to a decrease in the amount of customer dispute volume across our portfolios and reductions in our dispute loss rates, as well as lower losses from purchase overdraft transactions.

Other Expense, net

Other expense, net totaled $15.4 million for the year ended December 31, 2024, an increase of $10.4 million, or 207%, from the prior year comparable period. The net increase in other expenses was driven primarily from an increase in equity method losses in TailFin Labs, LLC ("TailFin") of $8.1 million, which was comprised of a $10.1 million increase in compensation and related professional services to support project initiatives undertaken during the current year period, partially offset by interest income earned.

41

Income Tax Expense

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

 Year Ended December 31, 20242023U.S. federal statutory tax rate21.0 %21.0 %State income taxes, net of federal tax benefit2.1 2.0 Foreign tax rate differential1.0 (1.5)General business credits10.2 (25.0)Stock-based compensation(31.4)28.8 Bank owned life insurance income2.6 (4.2)Bank owned life insurance surrender(10.0)— Nondeductible penalties(22.4)29.1 Global intangible low-tax income tax(1.4)2.0 IRC 162(m) limitation12.7 0.4 Change in valuation allowance(1.9)— Other(1.0)1.5 Effective tax rate(18.5)%54.1 %

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