Company: GDOT
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001386278-25-000076
Chunk: 260

Company: GREEN DOT CORP
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 2
Chunk 260
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 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)(0.1)Effective tax rate19.9 %(4.6)%

Our income tax benefit totaled $12.9 million for the nine months ended September 30, 2025, representing an increase of $14.4 million from the prior year comparable period, driven primarily by the same factors discussed above under “Comparison of Three-Month Periods Ended September 30, 2025 and 2024—Income Tax Expense and Benefit."

The increase in our effective tax rate for the nine months ended September 30, 2025 from the prior year comparable period was due to several factors, including a reduced tax rate benefit due to an increase of $0.8 million in the amount of compensation expense that was subject to the IRC 162(m) limitation on the deductibility of certain executive compensation, a decrease of $1.0 million in general business credits, an increase of $2.6 million in the valuation allowance on the deferred tax assets of our China subsidiary, and a lower tax rate benefit from the cash surrender value in bank-owned life insurance policies. These increases were partially offset by a decrease of $0.9 million in state income taxes expense, net of federal benefits, a decrease of $1.2 million in tax expense associated with shortfalls from stock-based compensation, a decrease of $2.3 million related to bank-owned life insurance surrender penalties we incurred in connection with the surrender and restructuring of our existing bank-owned life insurance policies in 2024, and a decrease of $9.7 million in tax expense from nondeductible expenses and penalties associated with the civil money penalty we incurred in 2024 for our Consent Order.

The "Other" category