Regulatory Requirements

12 Months Ended

Dec. 31, 2019

Regulatory Requirements [Abstract]

Regulatory Requirements

Regulatory Requirements

Our subsidiary bank, Green Dot Bank, is a member bank of the Federal Reserve System and our primary regulator is the Federal Reserve Board. We and Green Dot Bank are subject to commitments that we have made to the Federal Reserve Board and the Utah Department of Financial Institutions. These commitments require Green Dot Bank to maintain cash and/or cash equivalents in an amount equal to no less than 100% of insured deposits generated by Green Dot Bank related to GPR cards, a subset of its total deposits. In addition, we and Green Dot Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory actions by regulators that, if undertaken, could have a direct material effect on our financial statements. Under capital adequacy guidelines, we and Green Dot Bank must meet specific capital guidelines that involve quantitative measures of the assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Note 22—Regulatory Requirements (continued)

As of December 31, 2019 and 2018, we and Green Dot Bank were categorized as "well capitalized" under applicable regulatory standards. There were no conditions or events since December 31, 2019 which management believes would have caused us or Green Dot Bank not to be considered "well capitalized." Our capital ratios and related regulatory requirements were as follows:

	December 31, 2019
	Amount		Ratio		Regulatory Minimum		"Well-capitalized" Minimum
	(In thousands, except ratios)
Green Dot Corporation:
Tier 1 leverage	$	400,445	22.2	%	4.0	%	n/a
Common equity Tier 1 capital	$	400,445	70.5	%	4.5	%	n/a
Tier 1 capital	$	400,445	70.5	%	6.0	%	6.0	%
Total risk-based capital	$	404,469	71.2	%	8.0	%	10.0	%
Green Dot Bank:
Tier 1 leverage	$	204,141	13.9	%	4.0	%	5.0	%
Common equity Tier 1 capital	$	204,141	82.8	%	4.5	%	6.5	%
Tier 1 capital	$	204,141	82.8	%	6.0	%	8.0	%
Total risk-based capital	$	205,548	83.4	%	8.0	%	10.0	%
	December 31, 2018
	Amount		Ratio		Regulatory Minimum		"Well-capitalized" Minimum
	(In thousands, except ratios)
Green Dot Corporation:
Tier 1 leverage	$	353,047	20.1	%	4.0	%	n/a
Common equity Tier 1 capital	$	353,047	88.8	%	4.5	%	n/a
Tier 1 capital	$	353,047	88.8	%	6.0	%	6.0	%
Total risk-based capital	$	357,092	89.8	%	8.0	%	10.0	%
Green Dot Bank:
Tier 1 leverage	$	172,518	11.7	%	4.0	%	5.0	%
Common equity Tier 1 capital	$	172,518	100.8	%	4.5	%	6.5	%
Tier 1 capital	$	172,518	100.8	%	6.0	%	8.0	%
Total risk-based capital	$	173,838	101.5	%	8.0	%	10.0	%