Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-34819 | |
Entity Registrant Name | GREEN DOT CORP | |
Entity Central Index Key | 0001386278 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-4766827 | |
Entity Address, Address Line One | 3465 E. Foothill Blvd. | |
Entity Address, City or Town | Pasadena, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91107 | |
City Area Code | (626) | |
Local Phone Number | 765-2000 | |
Title of 12(b) Security | Class A Common Stock, $0.001 par value | |
Trading Symbol | GDOT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 51,819,818 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Unrestricted cash and cash equivalents | $ 1,096,498 | $ 1,094,728 |
Restricted cash | 4,117 | 490 |
Investment securities available-for-sale, at fair value | 20,017 | 19,960 |
Settlement assets | 334,788 | 153,992 |
Accounts receivable, net | 28,199 | 40,942 |
Prepaid expenses and other assets | 49,548 | 57,070 |
Income tax receivable | 0 | 8,772 |
Total current assets | 1,533,167 | 1,375,954 |
Investment securities available-for-sale, at fair value | 223,968 | 181,223 |
Loans to bank customers, net of allowance for loan losses of $970 and $1,144 as of June 30, 2019 and December 31, 2018, respectively | 21,403 | 21,363 |
Prepaid expenses and other assets | 7,034 | 8,125 |
Property and equipment, net | 131,710 | 120,269 |
Operating lease right-of-use assets | 31,251 | |
Deferred expenses | 7,567 | 21,201 |
Net deferred tax assets | 10,984 | 7,867 |
Goodwill and intangible assets | 534,964 | 551,116 |
Total assets | 2,502,048 | 2,287,118 |
Current liabilities: | ||
Accounts payable | 35,015 | 38,631 |
Deposits | 1,171,676 | 1,005,485 |
Obligations to customers | 169,139 | 58,370 |
Settlement obligations | 27,509 | 5,788 |
Amounts due to card issuing banks for overdrawn accounts | 542 | 1,681 |
Other accrued liabilities | 82,293 | 134,000 |
Operating lease liabilities | 7,990 | |
Deferred revenue | 16,072 | 34,607 |
Note payable | 0 | 58,705 |
Income tax payable | 12,247 | 67 |
Total current liabilities | 1,522,483 | 1,337,334 |
Other accrued liabilities | 15,411 | 30,927 |
Operating lease liabilities | 29,445 | |
Net deferred tax liabilities | 12,796 | 9,045 |
Total liabilities | 1,580,135 | 1,377,306 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Class A common stock, $0.001 par value; 100,000 shares authorized as of June 30, 2019 and December 31, 2018; 51,809 and 52,917 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively | 52 | 53 |
Additional paid-in capital | 291,958 | 380,753 |
Retained earnings | 627,878 | 529,143 |
Accumulated other comprehensive income (loss) | 2,025 | (137) |
Total stockholders’ equity | 921,913 | 909,812 |
Total liabilities and stockholders’ equity | $ 2,502,048 | $ 2,287,118 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses | $ 970 | $ 1,144 |
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000 | 100,000 |
Common stock, shares issued (in shares) | 51,809 | 52,917 |
Common stock, shares outstanding (in shares) | 51,809 | 52,917 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Operating revenues: | ||||
Total operating revenues | $ 278,326 | $ 263,792 | $ 618,840 | $ 584,134 |
Operating expenses: | ||||
Sales and marketing expenses | 87,432 | 82,478 | 186,133 | 174,446 |
Compensation and benefits expenses | 48,298 | 54,478 | 109,773 | 108,985 |
Processing expenses | 49,222 | 46,363 | 100,854 | 94,788 |
Other general and administrative expenses | 49,411 | 47,849 | 96,732 | 91,567 |
Total operating expenses | 234,363 | 231,168 | 493,492 | 469,786 |
Operating income | 43,963 | 32,624 | 125,348 | 114,348 |
Interest expense, net | 165 | 1,280 | 1,636 | 2,540 |
Income before income taxes | 43,798 | 31,344 | 123,712 | 111,808 |
Income tax expense | 9,106 | 1,517 | 24,977 | 11,950 |
Net income | $ 34,692 | $ 29,827 | $ 98,735 | $ 99,858 |
Basic earnings per common share (in usd per share) | $ 0.66 | $ 0.57 | $ 1.87 | $ 1.93 |
Diluted earnings per common share (in usd per share) | $ 0.64 | $ 0.55 | $ 1.82 | $ 1.84 |
Basic weighted-average common shares issued and outstanding (in shares) | 52,588 | 52,105 | 52,818 | 51,774 |
Diluted weighted-average common shares issued and outstanding (in shares) | 53,811 | 54,390 | 54,154 | 54,301 |
Card revenues and other fees | ||||
Operating revenues: | ||||
Total operating revenues | $ 121,613 | $ 120,783 | $ 251,190 | $ 250,843 |
Processing and settlement service revenues | ||||
Operating revenues: | ||||
Total operating revenues | 67,073 | 60,618 | 174,652 | 160,858 |
Interchange revenues | ||||
Operating revenues: | ||||
Total operating revenues | 81,334 | 76,948 | 173,875 | 161,646 |
Interest income, net | ||||
Operating revenues: | ||||
Total operating revenues | $ 8,306 | $ 5,443 | $ 19,123 | $ 10,787 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 34,692 | $ 29,827 | $ 98,735 | $ 99,858 |
Other comprehensive income (loss) | ||||
Unrealized holding gain (loss), net of tax | 996 | 193 | 2,162 | (361) |
Comprehensive income | $ 35,688 | $ 30,020 | $ 100,897 | $ 99,497 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Class A Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income |
Beginning balance (in shares) at Dec. 31, 2017 | 51,136 | ||||
Beginning balance at Dec. 31, 2017 | $ 764,550 | $ 51 | $ 354,789 | $ 410,440 | $ (730) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issued under stock plans, net of withholdings and related tax effects (in shares) | 1,254 | ||||
Common stock issued under stock plans, net of withholdings and related tax effects | (7,936) | $ 1 | (7,937) | ||
Stock-based compensation | 20,602 | 20,602 | |||
Net income | 99,858 | 99,858 | |||
Other comprehensive income | (361) | (361) | |||
Ending balance (in shares) at Jun. 30, 2018 | 52,390 | ||||
Ending balance at Jun. 30, 2018 | 876,713 | $ 52 | 367,454 | 510,298 | (1,091) |
Beginning balance (in shares) at Mar. 31, 2018 | 51,841 | ||||
Beginning balance at Mar. 31, 2018 | 835,291 | $ 52 | 356,052 | 480,471 | (1,284) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issued under stock plans, net of withholdings and related tax effects (in shares) | 549 | ||||
Common stock issued under stock plans, net of withholdings and related tax effects | 160 | $ 0 | 160 | ||
Stock-based compensation | 11,242 | 11,242 | |||
Net income | 29,827 | 29,827 | |||
Other comprehensive income | 193 | 193 | |||
Ending balance (in shares) at Jun. 30, 2018 | 52,390 | ||||
Ending balance at Jun. 30, 2018 | 876,713 | $ 52 | 367,454 | 510,298 | (1,091) |
Beginning balance (in shares) at Dec. 31, 2018 | 52,917 | ||||
Beginning balance at Dec. 31, 2018 | 909,812 | $ 53 | 380,753 | 529,143 | (137) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issued under stock plans, net of withholdings and related tax effects (in shares) | 558 | ||||
Common stock issued under stock plans, net of withholdings and related tax effects | (12,038) | $ 1 | (12,039) | ||
Stock-based compensation | 23,242 | 23,242 | |||
Repurchases of Class A common stock (in shares) | (1,666) | ||||
Repurchases of Class A common stock | (100,000) | $ (2) | (99,998) | ||
Net income | 98,735 | 98,735 | |||
Other comprehensive income | 2,162 | 2,162 | |||
Ending balance (in shares) at Jun. 30, 2019 | 51,809 | ||||
Ending balance at Jun. 30, 2019 | 921,913 | $ 52 | 291,958 | 627,878 | 2,025 |
Beginning balance (in shares) at Mar. 31, 2019 | 53,148 | ||||
Beginning balance at Mar. 31, 2019 | 978,715 | $ 53 | 384,447 | 593,186 | 1,029 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issued under stock plans, net of withholdings and related tax effects (in shares) | 327 | ||||
Common stock issued under stock plans, net of withholdings and related tax effects | (917) | $ 1 | (918) | ||
Stock-based compensation | 8,427 | 8,427 | |||
Repurchases of Class A common stock (in shares) | (1,666) | ||||
Repurchases of Class A common stock | (100,000) | $ (2) | (99,998) | ||
Net income | 34,692 | 34,692 | |||
Other comprehensive income | 996 | 996 | |||
Ending balance (in shares) at Jun. 30, 2019 | 51,809 | ||||
Ending balance at Jun. 30, 2019 | $ 921,913 | $ 52 | $ 291,958 | $ 627,878 | $ 2,025 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating activities | ||
Net income | $ 98,735 | $ 99,858 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property, equipment and internal-use software | 23,003 | 18,216 |
Amortization of intangible assets | 16,349 | 16,411 |
Provision for uncollectible overdrawn accounts | 45,445 | 41,817 |
Employee stock-based compensation | 23,242 | 20,602 |
Amortization of (discount) premium on available-for-sale investment securities | (224) | 704 |
Amortization of deferred financing costs | 1,124 | 797 |
Impairment of capitalized software | 104 | 175 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (32,702) | (31,380) |
Prepaid expenses and other assets | 8,051 | 5,278 |
Deferred expenses | 13,634 | 12,443 |
Accounts payable and other accrued liabilities | (31,207) | (16,383) |
Deferred revenue | (18,799) | (9,992) |
Income tax receivable/payable | 20,929 | 7,460 |
Other, net | (616) | 1,684 |
Net cash provided by operating activities | 167,068 | 167,690 |
Investing activities | ||
Purchases of available-for-sale investment securities | (90,216) | (79,026) |
Proceeds from maturities of available-for-sale securities | 50,354 | 29,283 |
Proceeds from sales of available-for-sale securities | 101 | 11,028 |
Payments for acquisition of property and equipment | (37,746) | (27,376) |
Net increase in loans | (1,296) | (4,292) |
Net cash used in investing activities | (78,803) | (70,383) |
Financing activities | ||
Repayments of borrowings from notes payable | (60,000) | (11,250) |
Proceeds from exercise of options | 4,836 | 16,440 |
Taxes paid related to net share settlement of equity awards | (16,874) | (24,376) |
Net increase in deposits | 140,110 | 45,887 |
Net decrease in obligations to customers | (48,306) | (12,715) |
Contingent consideration payments | (2,634) | (2,694) |
Repurchase of Class A common stock | (100,000) | 0 |
Net cash (used in) provided by financing activities | (82,868) | 11,292 |
Net increase in unrestricted cash, cash equivalents and restricted cash | 5,397 | 108,599 |
Unrestricted cash, cash equivalents and restricted cash, beginning of period | 1,095,218 | 1,010,095 |
Unrestricted cash, cash equivalents and restricted cash, end of period | 1,100,615 | 1,118,694 |
Cash paid for interest | 1,604 | 2,345 |
Cash paid for income taxes | 3,702 | 4,285 |
Total unrestricted cash, cash equivalents and restricted cash, end of period | $ 1,095,218 | $ 1,010,095 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Green Dot Corporation (“we,” “our,” or “us” refer to Green Dot Corporation and its consolidated subsidiaries), is a financial technology leader and bank holding company with a mission to power the banking industry’s branchless future. Enabled by proprietary technology and our wholly-owned commercial bank charter, our “Banking as a Service,” or "BaaS" platform is used by a growing list of America’s most prominent consumer and technology companies to design and deploy their own bespoke banking solutions to their customers and partners, while we use that same integrated technology and banking platform to design and deploy our own leading collection of banking and financial services products directly to consumers through one of the largest retail banking distribution platforms in America. Our products are marketed under brand names such as Green Dot, GoBank, MoneyPak, AccountNow, RushCard and RapidPay, and can be acquired through more than 100,000 retailers nationwide, thousands of corporate paycard partners, several “direct-2-consumer” branded websites, thousands of tax return preparation offices and accounting firms, thousands of neighborhood check cashing locations and both of the leading app stores. We are headquartered in Pasadena, California, with additional facilities throughout the United States and in Shanghai, China. As the regulated entity and issuing bank for substantially all products and services we provide, whether our own or on behalf of a BaaS platform partner, we are directly accountable for all aspects of each program’s integrity, inclusive of ensuring the program’s compliance with all applicable banking regulations, applicable state and federal law and our various internal governance policies and procedures related to all areas of risk and compliance, in addition to deploying enterprise-class risk management practices and procedures to ensure each program’s initial and ongoing safety and soundness. Our products and services: We offer consumers a broad collection of financial products and services managed through several diverse business lines which are then made available to consumers through a widely-available “branchless" distribution network in the United States. Many of the products and services we internally create and distribute are marketed under the Green Dot brand name, which we believe is both a well-known and highly trusted brand name for millions of consumers. Our branchless network consists of: • distribution arrangements with more than 100,000 mostly major chain retail locations, which we refer to as “retail distributors” and thousands of neighborhood Financial Service Center locations; • several differently branded, Green Dot-owned and operated direct-to-consumer online and direct mail customer acquisition platforms; • corporate distribution partnerships with businesses that provide payroll cards to their employees to receive wage disbursements; • more than 25,000 small and large tax preparation companies and individual tax preparers, which are sometimes referred to as electronic return originators, or “EROs”, who are able to offer our products and services to their customers through the use of various tax preparation industry software packages with which our products are integrated; • apps compatible with the iOS and Android operating systems downloaded through the corresponding app store; and • platform partners’ distribution channels that those partners use to acquire customers for their bespoke products and services that are powered by our BaaS Platform. Our products and services include several deposit account programs, such as network-branded reloadable prepaid debit cards marketed under several leading consumer brand names, which we collectively refer to as "GPR cards," consumer checking accounts, small business checking accounts, network-branded gift cards (known as open-loop), secured credit cards and other financial services. We also offer several products and services that specialize in facilitating the movement of cash on behalf of consumers and businesses. These products and services include: our proprietary swipe reload system for crediting cash onto an enabled payment card by swiping the payment card at the point of sale at any Green Dot Network participating retailer; MoneyPak, a product that allows a consumer to add funds to accounts we issue or accounts issued by affiliated United States chartered and regulated third party banks; and e-cash remittance services, a service that allows a consumer to transfer money to a smartphone for fulfillment at a Green Dot participating retailer. We refer to these services collectively as our "cash transfer products." We also provide disbursement services through our Simply Paid platform that enables a payment solution for companies to pay their workforce and customers in the time Note 1—Organization (continued) and manner they desire and provide tax refund transfers that provide the processing technology to facilitate receipt of a taxpayers' refund proceeds. Our BaaS Platform: Our BaaS Platform, which is used by several of America’s largest retail, consumer, technology and financial services companies, includes the following products, services and bespoke capabilities: • Mobile banking; • Loan disbursement accounts; • Spend-based Mobile P2P services, such as Apple Pay Cash; • Money transfer services; • GPR cards; • Network branded "open loop" gift cards; • Instant payment and wage disbursements; • Small business checking accounts and debit cards; and • Consumer checking accounts. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America, or GAAP. We consolidated our wholly-owned subsidiaries and eliminated all significant intercompany balances and transactions. We have also prepared the accompanying unaudited consolidated financial statements in conformity with the instructions to Form 10-Q and Article 10 of Regulation S-X and, consequently, they do not include all of the annual disclosures required by GAAP. Reference is made to our Annual Report on Form 10-K for the year ended December 31, 2018 for additional disclosures, including a summary of our significant accounting policies. There have been no material changes to our significant accounting policies during the six months ended June 30, 2019 , other than the adoption of the accounting pronouncements discussed herein. In our opinion, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of normal and recurring items, except as otherwise noted, necessary for the fair presentation of our financial position, results of operations and cash flows for the interim periods presented. Reclassifications Beginning with the first quarter of 2019, we present net interest income generated from operations at Green Dot Bank, our subsidiary bank, as a component of our total operating revenues. Prior year amounts, formerly reported below operating income on our consolidated statements of operations, have been reclassified to conform to our current year presentation on our consolidated statements of operations. This reclassification changed our previously reported total operating revenues, but had no impact on our previously reported consolidated net income or cash flows for any comparative periods presented. Net interest income at Green Dot Bank has become an increasingly important revenue component as Green Dot Bank's ability to invest its growing customer balances and generate interest income is one of several unique advantages we have as both a leading financial technology company and a federally regulated bank. Net interest income or expense generated outside of Green Dot Bank continues to be reported below operating income on our consolidated statements of operations. Recent Accounting Pronouncements Recently adopted accounting pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02") in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous GAAP. The guidance has been modified through additional technical corrections since its original issuance, including optional transition relief as provided for under Note 2—Summary of Significant Accounting Policies (continued) ASU No. 2018-11, Leases (Topic 842): Targeted Improvements . ASU 2016-02 requires that a lessee should recognize a liability to make lease payments and a right-of-use ("ROU") asset representing its right to use the underlying asset for leases with a term greater than 12 months. We adopted the new lease standard effective January 1, 2019, electing the optional transition method that permits the new standard to be applied prospectively, as of the effective date, without restating comparative periods presented. As a result, prior periods continue to be reported in accordance with our historical lease accounting policies. We elected the package of practical expedients under the new standard, which allows us to not reassess 1) whether any expired or existing contracts as of the adoption date are or contain a lease, 2) lease classification for any expired or existing leases as of the adoption date and 3) initial direct costs for any existing leases as of the adoption date. We did not elect to use the hindsight practical expedient under the new standard when determining the lease term and assessing any impairment of ROU assets. The adoption of ASU 2016-02 resulted in the recognition of operating ROU assets of approximately $17.9 million on our consolidated balance sheet and a corresponding lease liability of approximately $25.1 million . The difference between the lease assets and liabilities recognized on our consolidated balance sheets primarily relates to accrued rent on existing leases that were offset against the ROU asset upon adoption. The adoption of the standard did not have any impact on our consolidated statements of operations, comprehensive income, changes in stockholders’ equity and cash flows. See Note 15 — Leases , for discussion on updates to our lease accounting policies and additional disclosures. In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ("ASU 2018-15") , which amends ASC 350-40 to address implementation costs incurred in a cloud computing arrangement (CCA) that is a service contract. ASU 2018-15 aligns the accounting for costs incurred to implement a CCA that is a service arrangement with the guidance on capitalizing costs associated with developing or obtaining internal-use software. As a result, certain implementation costs incurred by companies under hosting arrangements will be deferred and amortized. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. We adopted the standard effective January 1, 2019 on a prospective basis, the effect of which did not have a material impact on our consolidated financial statements. Recently issued accounting pronouncements not yet adopted In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other ("ASU 2017-04") : Simplifying the Test for Goodwill Impairment , which simplifies the existing two-step guidance for goodwill impairment testing by eliminating the second step resulting in a write-down to goodwill equal to the initial amount of impairment determined in step one. The ASU is to be applied prospectively for reporting periods beginning after December 15, 2019. We do not anticipate the new ASU will have any impact upon adoption and intend to adopt the new accounting pronouncement upon its effective date on January 1, 2020. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Disaggregation of Revenues Our products and services are offered only to customers within the United States. We determine our operating segments based on how our chief operating decision maker manages our operations, makes operating decisions and evaluates operating performance. Within our segments, we believe that the nature, amount, timing and uncertainty of our revenue and cash flows and how they are affected by economic factors can be further illustrated based on the timing in which revenue for each of our products and services is recognized. The following table disaggregates our revenues by the timing in which the revenue is recognized: Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 Account Services Processing and Settlement Services Account Services Processing and Settlement Services Timing of revenue recognition (In thousands) Transferred at a point in time $ 123,152 $ 67,071 $ 124,785 $ 60,613 Transferred over time 77,564 2,233 72,070 881 Operating revenues (1) $ 200,716 $ 69,304 $ 196,855 $ 61,494 Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 Account Services Processing and Settlement Services Account Services Processing and Settlement Services Timing of revenue recognition (In thousands) Transferred at a point in time $ 264,074 $ 174,647 $ 261,311 $ 160,848 Transferred over time 157,331 3,665 149,416 1,772 Operating revenues (1) $ 421,405 $ 178,312 $ 410,727 $ 162,620 (1) Excludes net interest income, a component of total operating revenues, as it remains outside the scope of ASC 606, Revenues Within our Account Services segment, revenues recognized at a point in time are comprised of ATM fees, interchange, and other similar transaction-based fees. Revenues recognized over time consists of new card fees, monthly maintenance fees and revenue earned from gift cards. Substantially all of our processing and settlement services are recognized at a point in time. Refer to Note 18 — Segment Informatio n for our revenues disaggregated by our products and services and the components to our total operating revenues on our Consolidated Statements of Operations for additional information. Contract Balances As disclosed on our Consolidated Balance Sheets, we record deferred revenue for any upfront payments received in advance of our performance obligations being satisfied. These contract liabilities consist principally of unearned new card fees and monthly maintenance fees. We recognized approximately $10.2 million and $9.4 million in revenue during the three months ended June 30, 2019 and 2018 , respectively, and $31.4 million and $28.3 million in revenue for the six months ended June 30, 2019 and 2018 |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Our available-for-sale investment securities were as follows: Amortized cost Gross unrealized gains Gross unrealized losses Fair value (In thousands) June 30, 2019 Corporate bonds $ 10,000 $ 21 $ — $ 10,021 Negotiable certificate of deposit 5,000 — — 5,000 Agency bond securities 19,745 24 — 19,769 Agency mortgage-backed securities 143,338 2,095 (126 ) 145,307 Municipal bonds 406 2 (3 ) 405 Asset-backed securities 63,155 329 (1 ) 63,483 Total investment securities $ 241,644 $ 2,471 $ (130 ) $ 243,985 December 31, 2018 Negotiable certificate of deposit $ 15,000 $ — $ — $ 15,000 Agency bond securities 19,723 6 (36 ) 19,693 Agency mortgage-backed securities 87,156 53 (396 ) 86,813 Municipal bonds 507 — (24 ) 483 Asset-backed securities 79,274 14 (94 ) 79,194 Total investment securities $ 201,660 $ 73 $ (550 ) $ 201,183 As of June 30, 2019 and December 31, 2018 , the gross unrealized losses and fair values of available-for-sale investment securities that were in unrealized loss positions were as follows: Less than 12 months 12 months or more Total fair value Total unrealized loss Fair value Unrealized loss Fair value Unrealized loss (In thousands) June 30, 2019 Agency mortgage-backed securities $ 4,558 $ (30 ) $ 9,402 $ (96 ) $ 13,960 $ (126 ) Municipal bonds — — 122 (3 ) 122 (3 ) Asset-backed securities 5,023 (1 ) — — 5,023 (1 ) Total investment securities $ 9,581 $ (31 ) $ 9,524 $ (99 ) $ 19,105 $ (130 ) December 31, 2018 Agency bond securities $ 14,937 $ (36 ) $ — $ — $ 14,937 $ (36 ) Agency mortgage-backed securities 28,939 (103 ) 8,743 (293 ) 37,682 (396 ) Municipal bonds 353 (14 ) 130 (10 ) 483 (24 ) Asset-backed securities 50,980 (70 ) 7,333 (24 ) 58,313 (94 ) Total investment securities $ 95,209 $ (223 ) $ 16,206 $ (327 ) $ 111,415 $ (550 ) We did not record any other-than-temporary impairment losses during the three and six months ended June 30, 2019 or 2018 on our available-for-sale investment securities. We do not intend to sell these investments and we have determined that it is more likely than not that we will not be required to sell these investments before recovery of their amortized cost bases, which may be at maturity. Note 4—Investment Securities (continued) As of June 30, 2019 , the contractual maturities of our available-for-sale investment securities were as follows: Amortized cost Fair value (In thousands) Due in one year or less $ 19,995 $ 20,017 Due after one year through five years 14,750 14,773 Due after five years through ten years — — Due after ten years 406 405 Mortgage and asset-backed securities 206,493 208,790 Total investment securities $ 241,644 $ 243,985 The expected payments on mortgage-backed and asset-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable, net consisted of the following: June 30, 2019 December 31, 2018 (In thousands) Overdrawn account balances due from cardholders $ 19,197 $ 17,848 Reserve for uncollectible overdrawn accounts (15,854 ) (13,888 ) Net overdrawn account balances due from cardholders 3,343 3,960 Trade receivables 9,337 6,505 Reserve for uncollectible trade receivables (83 ) (59 ) Net trade receivables 9,254 6,446 Receivables due from card issuing banks 6,899 6,688 Fee advances 216 19,576 Other receivables 8,487 4,272 Accounts receivable, net $ 28,199 $ 40,942 Activity in the reserve for uncollectible overdrawn accounts consisted of the following: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands) Balance, beginning of period $ 17,125 $ 15,796 $ 13,888 $ 14,471 Provision for uncollectible overdrawn accounts: Fees 20,321 20,353 41,398 36,132 Purchase transactions 1,551 3,079 4,047 5,685 Charge-offs (23,143 ) (22,141 ) (43,479 ) (39,201 ) Balance, end of period $ 15,854 $ 17,087 $ 15,854 $ 17,087 |
Loans to Bank Customers
Loans to Bank Customers | 6 Months Ended |
Jun. 30, 2019 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans to Bank Customers | Loans to Bank Customers The following table presents total outstanding loans, gross of the related allowance for loan losses, and a summary of the related payment status: 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Total Current or Less Than 30 Days Past Due Total Outstanding (In thousands) June 30, 2019 Residential $ — $ 4 $ — $ 4 $ 2,987 $ 2,991 Commercial — — — — 124 124 Installment 1 — — 1 728 729 Secured credit card 1,265 1,172 554 2,991 15,538 18,529 Total loans $ 1,266 $ 1,176 $ 554 $ 2,996 $ 19,377 $ 22,373 Percentage of outstanding 5.7 % 5.3 % 2.5 % 13.4 % 86.6 % 100.0 % December 31, 2018 Residential $ 2 $ — $ 7 $ 9 $ 3,329 $ 3,338 Commercial — — — — 193 193 Installment — 2 — 2 905 907 Secured credit card 1,383 1,315 1,114 3,812 14,257 18,069 Total loans $ 1,385 $ 1,317 $ 1,121 $ 3,823 $ 18,684 $ 22,507 Percentage of outstanding 6.2 % 5.9 % 5.0 % 17.0 % 83.0 % 100.0 % Nonperforming Loans The following table presents the carrying value, gross of the related allowance for loan losses, of our nonperforming loans. See Note 2 — Summary of Significant Accounting Policies to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2018 for further information on the criteria for classification as nonperforming. June 30, 2019 December 31, 2018 (In thousands) Residential $ 321 $ 403 Installment 158 169 Secured credit card 554 1,114 Total loans $ 1,033 $ 1,686 Credit Quality Indicators We 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 are those loans that have demonstrated credit weakness where we believe there is a heightened risk of principal loss, including all impaired loans. Classified loans are generally internally categorized as substandard, doubtful or loss, consistent with regulatory guidelines. Note 6—Loans to Bank Customers (continued) The table below presents the carrying value, gross of the related allowance for loan losses, of our loans within the primary credit quality indicators related to our loan portfolio: June 30, 2019 December 31, 2018 Non-Classified Classified Non-Classified Classified (In thousands) Residential $ 2,670 $ 321 $ 2,935 $ 403 Commercial 124 — 193 — Installment 490 239 632 275 Secured credit card 17,975 554 16,955 1,114 Total loans $ 21,259 $ 1,114 $ 20,715 $ 1,792 Impaired Loans and Troubled Debt Restructurings When, for economic or legal reasons related to a borrower’s financial difficulties, we grant a concession for other than an insignificant period of time to a borrower that we would not otherwise consider, the related loan is classified as a Troubled Debt Restructuring, or TDR. Our TDR modifications involve an extension of the maturity date at a stated interest rate lower than the current market rate for new debt with similar risk. The following table presents our impaired loans and loans that we modified as TDRs as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 Unpaid Principal Balance Carrying Value Unpaid Principal Balance Carrying Value (In thousands) Residential $ 321 $ 261 $ 403 $ 329 Installment 175 47 190 53 Allowance for Loan Losses Activity in the allowance for loan losses consisted of the following: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands) Balance, beginning of period $ 948 $ 451 $ 1,144 $ 291 Provision for loans 590 966 1,256 1,234 Loans charged off (637 ) (328 ) (1,549 ) (634 ) Recoveries of loans previously charged off 69 84 119 282 Balance, end of period $ 970 $ 1,173 $ 970 $ 1,173 |
Employee Stock-Based Compensati
Employee Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Employee Stock-Based Compensation | Employee Stock-Based Compensation We currently grant restricted equity awards to employees and directors under our 2010 Equity Incentive Plan. Additionally, through our 2010 Employee Stock Purchase Plan, employees are able to purchase shares of our Class A common stock at a discount through payroll deductions. We have reserved shares of our Class A common stock for issuance under these plans. Restricted Stock Units The following table summarizes restricted stock units subject to only service conditions granted under our 2010 Equity Incentive Plan: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands, except per share data) Restricted stock units granted 53 120 89 183 Weighted-average grant-date fair value $ 48.63 $ 71.20 $ 55.92 $ 67.17 Note 7—Employee Stock-Based Compensation (continued) Performance Based Restricted Stock Units We grant performance-based restricted stock units to certain employees which are subject to the attainment of pre-established annual performance targets for, among other things, non-GAAP earnings per share for the grant year. The actual number of shares subject to the award is determined at the end of the annual performance period and may range from 0% to 150% of the target shares granted. These awards contain an additional service component after each annual performance period is concluded and the unvested balance of the shares determined at the end of the annual performance period will vest over the remaining requisite service period. Compensation expense related to these awards is recognized using the accelerated attribution method over the vesting period (generally, a period of four years) based on the fair value of the closing market price of our Class A common stock on the date of the grant and the estimated performance that is expected to be achieved. In the case of our Chief Executive Officer, vesting of his awards is based on our achievement of total shareholder return ("TSR") relative to the S&P 600 index over a three-year performance period, with awards eligible for a maximum payout up to 150% of the target shares for awards granted prior to 2019 or 200% of the target shares for awards granted in 2019, respectively. Compensation expense related to these awards is recognized over the performance period based on the grant date fair value through the use of a Monte Carlo simulation and are not subsequently re-measured. Under our retirement policy adopted in April 2018, following a qualified retirement, any substantial risk of forfeiture of the award by the eligible employee is eliminated. Accordingly, the related compensation expense is recognized immediately for qualifying awards granted to eligible employees, or in the case of ineligible employees, over the period from the grant date to the date a qualifying retirement is achieved, if earlier than the standard vesting dates. The following table summarizes the performance-based restricted stock units granted under our 2010 Equity Incentive Plan: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands, except per share data) Performance based restricted stock units granted (1) 627 168 883 612 Weighted-average grant-date fair value $ 49.17 $ 71.47 $ 50.15 $ 49.04 (1 ) Performance awards granted also reflects the issuance of any shares awarded in excess of their original target amount based on the Compensation Committee's certification of completed performance years. The grant date fair value for these awards are based on the grant price at the time of the original award. The total stock-based compensation expense recognized was $8.4 million and $11.2 million for the three months ended June 30, 2019 and 2018 , respectively, and $23.2 million and $20.6 million for the six months ended June 30, 2019 and 2018 , respectively. Total stock-based compensation expense includes amounts related to awards of restricted stock units (including performance-based restricted stock units) and purchases under our 2010 Employee Stock Purchase Plan, and reflects, as applicable, accelerated expense recognition associated with our retirement policy. In June 2019, we modified the performance targets for certain performance-based restricted stock units issued at the beginning of the three months ended June 30, 2019 . The modification for these awards was classified as improbable to probable, and resulted in a lower grant date fair value at the time of modification and an overall decrease in stock-based compensation expense recognized for the three months ended June 30, 2019 . The performance targets for these modified awards and the related stock-based compensation expense will be reassessed each reporting period based on the estimated performance that is expected to be achieved under the revised targets. |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2019 | |
Deposits [Abstract] | |
Deposits | Deposits Deposits are categorized as non-interest or interest-bearing deposits as follows: June 30, 2019 December 31, 2018 (In thousands) Non-interest bearing deposit accounts GPR deposits $ 885,122 $ 817,124 Other demand deposits 127,968 97,442 Total non-interest bearing deposit accounts 1,013,090 914,566 Interest-bearing deposit accounts Checking accounts 134,182 67,758 Savings 8,613 8,894 GPR deposits 11,136 9,224 Time deposits, denominations greater than or equal to $100 3,485 3,796 Time deposits, denominations less than $100 1,170 1,247 Total interest-bearing deposit accounts 158,586 90,919 Total deposits $ 1,171,676 $ 1,005,485 The scheduled contractual maturities for total time deposits are presented in the table below: June 30, 2019 (In thousands) Due in 2019 $ 626 Due in 2020 1,764 Due in 2021 1,238 Due in 2022 589 Due in 2023 334 Thereafter 104 Total time deposits $ 4,655 |
Note Payable
Note Payable | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Note Payable | Note Payable In October 2014, we entered into a $225.0 million secured credit agreement with Bank of America, N.A., as an administrative agent, Wells Fargo Bank, National Association, and other lenders party thereto. The credit agreement provided for: 1) a $75.0 million five-year revolving facility (the "Revolving Facility") and 2) a five-year $150.0 million term loan facility ("Term Facility" and, together with the Revolving Facility, the “Senior Credit Facility"). The credit agreement also included an accordion feature that, subject to securing additional commitments from existing lenders or new lending institutions, would allow us to increase the aggregate amount of these facilities by up to an additional $50.0 million . Quarterly principal payments of $5.6 million were payable under the Term Facility, with any remaining balance outstanding due upon maturity on October 23, 2019. In March 2019, we elected to make a voluntary prepayment of $60.0 million to retire the Term Facility without penalty or additional premium. The Revolving Facility remains available for use until the Senior Credit Facility matures in October 2019. Our outstanding debt, net of deferred financing costs, consisted of the following as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 (In thousands) Term facility $ — $ 58,705 Revolving facility — — Total notes payable $ — $ 58,705 Note 9—Note Payable (Continued) Interest At our election, loans made under the credit agreement bear interest at 1) a LIBOR rate (the “LIBOR Rate") or 2) a base rate determined by reference to the highest of (a) the Bank of America prime rate, (b) the United States federal funds rate plus 0.50% and (c) a daily rate equal to one-month LIBOR rate plus 1.0% (the “Base Rate"), plus in either case an applicable margin. The applicable margin for borrowings depends on our total leverage ratio and varies from 2.50% to 3.00% for LIBOR Rate loans and 1.50% to 2.00% for Base Rate loans. Excluding the amortization of debt issuance costs, interest expense related to our Senior Credit Facility was $0 and $0.9 million for the three months ended June 30, 2019 and 2018 , respectively, and $0.6 million and $1.7 million for the six months ended June 30, 2019 and 2018 , respectively. Covenants and restrictions The Senior Credit Facility contains customary representations and warranties relating to us and our subsidiaries. Obligations under the Senior Credit Facility are secured by first priority liens on, and security interests in, substantially all of our company assets and each Guarantor, as defined in the agreement. The Senior Credit Facility also contains certain affirmative and negative covenants, including negative covenants that limit or restrict, among other things, liens, indebtedness, investments and acquisitions, mergers and fundamental changes, asset sales, restricted payments, changes in the nature of the business, transactions with affiliates and other matters customarily restricted in such agreements. We must maintain a minimum fixed charge coverage ratio and a maximum consolidated leverage ratio at the end of each fiscal quarter, as set forth in the credit agreement. At June 30, 2019 , we were in compliance with all such covenants. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense for the six months ended June 30, 2019 and 2018 differs from the amount computed by applying the statutory federal income tax rate to income before income taxes. The sources and tax effects of the differences are as follows: Six Months Ended June 30, 2019 2018 U.S. federal statutory tax rate 21.0 % 21.0 % State income taxes, net of federal tax benefit 1.7 0.6 General business credits (1.5 ) (0.7 ) Employee stock-based compensation (3.7 ) (12.2 ) IRC 162(m) limitation 2.4 1.8 Other 0.3 0.1 Effective tax rate 20.2 % 10.6 % The effective tax rate for the six months ended June 30, 2019 and 2018 differs from the statutory federal income tax rate of 21% , primarily due to state income taxes, net of federal tax benefits, general business credits, employee stock-based compensation, and the IRC 162(m) limitation on executive compensation. The increase in the effective tax rate for the six months ended June 30, 2019 as compared to the six months ended June 30, 2018 is primarily due to a $9.1 million decline in benefit on the recognition of excess tax benefits from stock-based compensation and additional expenses related to state taxes, net of federal tax benefits. For the six months ended June 30, 2019 and 2018 , we recognized discrete tax benefits related to the excess tax benefits from stock-based compensation of $4.5 million and $13.6 million , respectively. We establish a valuation allowance when we consider it more-likely-than-not that some portion or all of the deferred tax assets will not be realized. As of June 30, 2019 and 2018 , we did not have a valuation allowance on any of our deferred tax assets as we believed it was more-likely-than-not that we would realize the benefits of our deferred tax assets. We are subject to examination by the Internal Revenue Service, or IRS, and various state tax authorities. We remain subject to examination of our federal income tax return for the years ended December 31, 2015 through 2018. We generally remain subject to examination of our various state income tax returns for a period of four to five years from the respective dates the returns were filed. Note 10—Income Taxes (Continued) As of June 30, 2019 , we have net operating loss carryforwards of approximately $34.7 million and $33.7 million for federal and state tax purposes, respectively, which will be available to offset future income. If not used, these carryforwards will expire between 2020 and 2035. These net operating losses are subject to an annual IRC Section 382 limitation which restricts their utilization against taxable income in future periods. In addition, we have state business tax credits of approximately $14.2 million that can be carried forward indefinitely and other state business tax credits of approximately $1.1 million that will expire between 2023 and 2027. As of June 30, 2019 and December 31, 2018 , we had a liability of $8.5 million and $6.9 million , respectively, for unrecognized tax benefits related to various federal and state income tax matters excluding interest, penalties and related tax benefits. The reconciliation of the beginning unrecognized tax benefits balance to the ending balance is as follows: Six Months Ended June 30, 2019 2018 (In thousands) Beginning balance $ 6,965 $ 5,560 Increases related to positions taken during prior years — — Increases related to positions taken during the current year 1,569 1,099 Decreases related to positions settled with tax authorities — — Decreases as a result of a lapse of applicable statute of limitations — — Ending balance $ 8,534 $ 6,659 The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate $ 8,481 $ 6,659 As of June 30, 2019 and 2018 , we recognized accrued interest and penalties related to unrecognized tax benefits of approximately $0.5 million and $0.6 million , respectively. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Stock Repurchase Program In May 2017, our Board of Directors authorized, subject to regulatory approval, expansion of our stock repurchase program by an additional $150 million . We sought and received regulatory approval during the second quarter of 2019, at which point we entered into an accelerated share repurchase agreement, as discussed below. Accelerated Share Repurchases We have entered into accelerated share repurchase arrangements (“ASRs”) with a financial institution from time to time under our stock repurchase program. The following table summarizes our ASR activity under our current repurchase program: Purchase Period End Date Number of Shares (In thousands) Average repurchase price per share ASR Amount (In thousands) May 2019 ASR September 2019 1,666 (1) (1) $ 100,000 (1 ) "Number of Shares" represents shares delivered in the beginning of the purchase period and does not represent the final number of shares to be delivered under the ASR. The total number of shares ultimately delivered, and therefore the average repurchase price paid per share, will be determined at the end of the applicable purchase period based on the volume-weighted average price of our Class A common stock during that period. We expect the May 2019 ASR purchase to settle by September 2019. In exchange for an up-front payment in May 2019, the financial institution delivered approximately 1.7 million shares of our Class A common stock. Upon settlement, we will either receive additional shares from the financial institution or we may be required to deliver additional shares or cash to the financial institution, at our election. The final number of shares received upon settlement for the ASR is determined based on the volume-weighted average price of our common stock over the term of the agreement less an agreed upon discount and subject to adjustments pursuant to the terms and conditions of the ASR. The shares received are retired in the periods they are delivered, but remain authorized for registration and issuance in the future. Note 11—Stockholders' Equity (Continued) |
Earnings per Common Share
Earnings per Common Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share The calculation of basic and diluted EPS was as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands, except per share data) Basic earnings per Class A common share Numerator: Net income $ 34,692 $ 29,827 $ 98,735 $ 99,858 Denominator: Weighted-average Class A shares issued and outstanding 52,588 52,105 52,818 51,774 Basic earnings per Class A common share $ 0.66 $ 0.57 $ 1.87 $ 1.93 Diluted earnings per Class A common share Numerator: Net income $ 34,692 $ 29,827 $ 98,735 $ 99,858 Denominator: Weighted-average Class A shares issued and outstanding 52,588 52,105 52,818 51,774 Dilutive potential common shares: Stock options 131 343 150 441 Restricted stock units 456 1,236 586 1,296 Performance based restricted stock units 630 705 592 789 Employee stock purchase plan 6 1 8 1 Diluted weighted-average Class A shares issued and outstanding 53,811 54,390 54,154 54,301 Diluted earnings per Class A common share $ 0.64 $ 0.55 $ 1.82 $ 1.84 For the periods presented, we excluded certain restricted stock units and stock options outstanding (as applicable) which could potentially dilute basic EPS in the future, from the computation of diluted EPS as their effect was anti-dilutive. Additionally, we have excluded any performance based restricted stock units for which the performance contingency has not been met as of the end of the period. The following table shows the weighted-average number of shares excluded from the diluted EPS calculation: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands) Class A common stock Restricted stock units 329 — 226 — Performance based restricted stock units 431 134 217 101 Total restricted and performance based stock units 760 134 443 101 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Under applicable accounting guidance, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We determine the fair values of our financial instruments based on the fair value hierarchy established under applicable accounting guidance which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs used to measure fair value. For more information regarding the fair value hierarchy and how we measure fair value, see Note 2–Summary of Significant Accounting Policies to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2018 . As of June 30, 2019 and December 31, 2018 , our assets and liabilities carried at fair value on a recurring basis were as follows: Level 1 Level 2 Level 3 Total Fair Value June 30, 2019 (In thousands) Assets Corporate bonds $ — $ 10,021 $ — $ 10,021 Negotiable certificate of deposit — 5,000 — 5,000 Agency bond securities — 19,769 — 19,769 Agency mortgage-backed securities — 145,307 — 145,307 Municipal bonds — 405 — 405 Asset-backed securities — 63,483 — 63,483 Total assets $ — $ 243,985 $ — $ 243,985 Liabilities Contingent consideration $ — $ — $ 13,166 $ 13,166 December 31, 2018 Assets Negotiable certificate of deposit $ — $ 15,000 $ — $ 15,000 Agency bond securities — 19,693 — 19,693 Agency mortgage-backed securities — 86,813 — 86,813 Municipal bonds — 483 — 483 Asset-backed securities — 79,194 — 79,194 Total assets $ — $ 201,183 $ — $ 201,183 Liabilities Contingent consideration $ — $ — $ 15,800 $ 15,800 We based the fair value of our fixed income securities held as of June 30, 2019 and December 31, 2018 on quoted prices in active markets for similar assets. We had no transfers between Level 1, Level 2 or Level 3 assets or liabilities during the three and six months ended June 30, 2019 or 2018 . The following table presents changes in our contingent consideration payable for the three and six months ended June 30, 2019 and 2018 , which is categorized in Level 3 of the fair value hierarchy: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands) Balance, beginning of period $ 15,800 $ 17,156 $ 15,800 $ 17,358 Payments of contingent consideration (2,634 ) (2,492 ) (2,634 ) (2,694 ) Balance, end of period $ 13,166 $ 14,664 $ 13,166 $ 14,664 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The following describes the valuation technique for determining the fair value of financial instruments, whether or not such instruments are carried at fair value on our consolidated balance sheets. Short-term Financial Instruments Our short-term financial instruments consist principally of unrestricted and restricted cash and cash equivalents, settlement assets and obligations, and obligations to customers . These financial instruments are short-term in nature, and, accordingly, we believe their carrying amounts approximate their fair values. Under the fair value hierarchy, these instruments are classified as Level 1. Investment Securities The fair values of investment securities have been derived using methodologies referenced in Note 2–Summary of Significant Accounting Policies to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2018 . Under the fair value hierarchy, our investment securities are classified as Level 2. Loans We determined the fair values of loans by discounting both principal and interest cash flows expected to be collected using a discount rate commensurate with the risk that we believe a market participant would consider in determining fair value. Under the fair value hierarchy, our loans are classified as Level 3. Deposits The fair value of demand and interest checking deposits and savings deposits is the amount payable on demand at the reporting date. We determined the fair value of time deposits by discounting expected future cash flows using market-derived rates based on our market yields on certificates of deposit, by maturity, at the measurement date. Under the fair value hierarchy, our deposits are classified as Level 2. Contingent Consideration The fair value of contingent consideration obligations, such as the earn-out associated with our acquisition of UniRush, is estimated through valuation models designed to estimate the probability of such contingent payments based on various assumptions. Estimated payments are discounted using present value techniques to arrive at an estimated fair value. Our contingent consideration payable is classified as Level 3 because we use unobservable inputs to estimate fair value, including the probability of achieving certain earnings thresholds and appropriate discount rates. Changes in fair value of contingent consideration are recorded through operating expenses. Note Payable The fair value of our note payable is based on borrowing rates currently available to a market participant for loans with similar terms or maturity. The carrying amount of our note payable approximates fair value because the base interest rate charged varies with market conditions and the credit spread is commensurate with current market spreads for issuers of similar risk. The fair value of the note payable is classified as a Level 2 liability in the fair value hierarchy. Fair Value of Financial Instruments The carrying values and fair values of certain financial instruments that were not carried at fair value, excluding short-term financial instruments for which the carrying value approximates fair value, at June 30, 2019 and December 31, 2018 are presented in the table below. June 30, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Financial Assets Loans to bank customers, net of allowance $ 21,403 $ 21,224 $ 21,363 $ 21,088 Financial Liabilities Deposits $ 1,171,676 $ 1,171,638 $ 1,005,485 $ 1,005,435 Note payable $ — $ — $ 58,705 $ 58,705 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases We enter into operating lease agreements principally related to our corporate office locations. Currently, we do not enter into any financing lease agreements. Our leases have remaining lease terms of less than 1 year to approximately 6 years , most of which include renewal options of varying terms. We made a policy election to adopt the short term lease exemption for all leases with an initial term of 12 months or less. Significant Assumptions, Judgments and Policies Under Topic 842, we determine if an arrangement is or contains a lease at inception. ROU assets and liabilities are recognized at the lease commencement date based on the present value of remaining lease payments over the lease term. For this purpose, we consider only fixed payments stated in the leases at the time of commencement. Variable lease payments that are not based on a specified rate or index are expensed when incurred. Since an implicit interest rate for our leases cannot be determined under our contracts, we use an incremental borrowing rate based on the information available to us at the commencement date in determining the present value of our lease payments. Our incremental borrowing rate is based on a variety of considerations, including borrowing rates currently available to us for loans with similar terms and market participant information based on credit spreads for issuers of similar risk and credit rating. The ROU asset also reflects any lease payments made prior to commencement and is recorded net of any lease incentives received. Our ROU asset and liability reflects, as applicable, options to extend or terminate a lease when it is reasonably certain that we will exercise such options. We also made a policy election to combine our lease and non-lease components for each of our existing classes of leased assets. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Lease expense is recognized on a straight-line basis over the lease term. Our total lease expense amounted to approximately $2.7 million and $1.9 million for the three months ended June 30, 2019 and 2018 , respectively and $4.6 million and $3.8 million for the six months ended June 30, 2019 and 2018 , respectively. Our lease expense is generally based on fixed payments stated within the agreements. Any variable payments for non-lease components and other short term lease expenses are not considered material. Supplemental Information Supplemental information related to our ROU assets and related lease liabilities is as follows: June 30, 2019 Cash paid for operating lease liabilities (in thousands) $ 3,512 Weighted average remaining lease term 4.5 years Weighted average discount rate 4.7 % Maturities of our operating lease liabilities as of June 30, 2019 is as follows: Operating Leases (In thousands) Remainder of 2019 $ 5,061 2020 10,124 2021 9,737 2022 8,734 2023 3,464 Thereafter 5,196 42,316 Less: imputed interest (4,881 ) Total lease liabilities $ 37,435 Note 15—Leases (continued) Future minimum rental payments under our non-cancelable operating leases as of December 31, 2018 were as follows: Operating Leases (1) Year ending December 31, (In thousands) 2019 $ 7,927 2020 7,929 2021 6,689 2022 5,372 Total minimum lease payments $ 27,917 (1) Amounts are based on ASC 840, Leases , that was superseded upon our adoption of ASC 842, Leases on January 1, 2019 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation and Claims In the ordinary course of business, we are a party to various legal proceedings, including, from time to time, actions which are asserted to be maintainable as class action suits. We review these actions on an ongoing basis to determine whether it is probable and estimable that a loss has occurred and use that information when making accrual and disclosure decisions. We have provided reserves where necessary for all claims and, based on current knowledge and in part upon the advice of legal counsel, all matters are believed to be adequately covered by insurance, or, if not covered, we do not expect the outcome in any legal proceedings, individually or collectively, to have a material adverse impact on our financial condition or results of operations. Other Matters We monitor the laws of all 50 states to identify state laws or regulations that apply (or may apply) to our products and services. We have obtained money transmitter licenses (or similar such licenses) where applicable, based on advice of counsel or when we have been requested to do so. If we were found to be in violation of any laws and regulations governing banking, money transmitters, electronic fund transfers, or money laundering in the United States or abroad, we could be subject to penalties or could be forced to change our business practices. From time to time we enter into contracts containing provisions that contingently require us to indemnify various parties against claims from third parties. These contracts primarily relate to: (i) contracts with our card issuing banks, under which we are responsible to them for any unrecovered overdrafts on cardholders’ accounts; (ii) certain real estate leases, under which we may be required to indemnify property owners for environmental and other liabilities, and other claims arising from our use of the premises; (iii) certain agreements with our officers, directors, and employees, under which we may be required to indemnify these persons for liabilities arising out of their relationship with us; and (iv) contracts under which we may be required to indemnify our retail distributors, suppliers, vendors and other parties with whom we have contracts against claims arising from certain of our actions, omissions, violations of law and/or infringement of patents, trademarks, copyrights and/or other intellectual property rights. Generally, a maximum obligation under these contracts is not explicitly stated. Because the obligated amounts associated with these types of agreements are not explicitly stated, the overall maximum amount of the obligation cannot be reasonably estimated. With the exception of overdrafts on cardholders’ accounts, historically, we have not been required to make payments under these and similar contingent obligations, and no liabilities have been recorded for these obligations in our consolidated balance sheets. For additional information regarding overdrafts on cardholders’ accounts, refer to Note 5 — Accounts Receivable . On February 28, 2017, we completed our acquisition of all the membership interests of UniRush, LLC ("UniRush"), an online direct-to-consumer GPR card and corporate payroll card provider. The transaction terms include an earn-out equal to the greater of (i) a specified percentage of the revenue generated by the online direct-to-consumer GPR card portfolio for the five-year period following the closing or (ii) $20 million , payable quarterly over five years . |
Significant Retailer Concentrat
Significant Retailer Concentrations | 6 Months Ended |
Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Significant Retailer Concentrations | Significant Retailer Concentration A credit concentration may exist if customers are involved in similar industries, economic sectors, and geographic regions. Our retail distributors operate in similar economic sectors but diverse domestic geographic regions. The loss of a significant retail distributor could have a material adverse effect upon our card sales, profitability, and revenue growth. Revenues derived from our products sold at retail distributors constituting greater than 10% of our total operating revenues were as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Walmart 35% 36% 32% 34% Settlement assets derived from our products sold at retail distributors constituting greater than 10% of the settlement assets outstanding on our consolidated balance sheets were as follows: June 30, 2019 December 31, 2018 Walmart 19% 18% |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our operations are comprised of two reportable segments: 1) Account Services and 2) Processing and Settlement Services. We identified our reportable segments based on factors such as how we manage our operations and how our chief operating decision maker views results. Our chief operating decision maker organizes and manages our business primarily on the basis of product and service offerings and uses operating income to assess profitability. The Account Services segment consists of revenues and expenses derived from our deposit account programs, such as prepaid cards, debit cards, consumer and small business checking accounts, secured credit cards, payroll debit cards and gift cards. These deposit account programs are marketed under several of our leading consumer brand names and under the brand names of our BaaS partners. The Processing and Settlement Services segment consists of revenues and expenses derived from our products and services that specialize in facilitating the movement of cash on behalf of consumers and businesses, such as consumer cash processing services, wage disbursements and tax refund processing services. The Corporate and Other segment primarily consists of eliminations of intersegment revenues and expenses, unallocated corporate expenses, depreciation and amortization, and other costs that are not considered when management evaluates segment performance. We do not evaluate performance or allocate resources based on segment asset data, and therefore such information is not presented. The following tables present certain financial information for each of our reportable segments for the periods then ended: Three Months Ended June 30, 2019 Account Services Processing and Settlement Services Corporate and Other Total (In thousands) Operating revenues $ 216,032 $ 70,040 $ (7,746 ) $ 278,326 Operating expenses 165,574 45,867 22,922 234,363 Operating income $ 50,458 $ 24,173 $ (30,668 ) $ 43,963 Three Months Ended June 30, 2018 Account Services Processing and Settlement Services Corporate and Other Total (In thousands) Operating revenues $ 209,686 $ 61,928 $ (7,822 ) $ 263,792 Operating expenses 166,025 42,572 22,571 231,168 Operating income $ 43,661 $ 19,356 $ (30,393 ) $ 32,624 Note 18—Segment Information (continued) Six Months Ended June 30, 2019 Account Services Processing and Settlement Services Corporate and Other Total (In thousands) Operating revenues $ 455,665 $ 180,689 $ (17,514 ) $ 618,840 Operating expenses 342,361 100,382 50,749 493,492 Operating income $ 113,304 $ 80,307 $ (68,263 ) $ 125,348 Six Months Ended June 30, 2018 Account Services Processing and Settlement Services Corporate and Other Total (In thousands) Operating revenues $ 437,310 $ 163,940 $ (17,116 ) $ 584,134 Operating expenses 335,735 93,023 41,028 469,786 Operating income $ 101,575 $ 70,917 $ (58,144 ) $ 114,348 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of Presentation The accompanying unaudited consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America, or GAAP. We consolidated our wholly-owned subsidiaries and eliminated all significant intercompany balances and transactions. We have also prepared the accompanying unaudited consolidated financial statements in conformity with the instructions to Form 10-Q and Article 10 of Regulation S-X and, consequently, they do not include all of the annual disclosures required by GAAP. Reference is made to our Annual Report on Form 10-K for the year ended December 31, 2018 for additional disclosures, including a summary of our significant accounting policies. There have been no material changes to our significant accounting policies during the six months ended June 30, 2019 |
Reclassifications | Reclassifications Beginning with the first quarter of 2019, we present net interest income generated from operations at Green Dot Bank, our subsidiary bank, as a component of our total operating revenues. Prior year amounts, formerly reported below operating income on our consolidated statements of operations, have been reclassified to conform to our current year presentation on our consolidated statements of operations. This reclassification changed our previously reported total operating revenues, but had no impact on our previously reported consolidated net income or cash flows for any comparative periods presented. Net interest income at Green Dot Bank has become an increasingly important revenue component as Green Dot Bank's ability to invest its growing customer balances and generate interest income is one of several unique advantages we have as both a leading financial technology company and a federally regulated bank. Net interest income or expense generated outside of Green Dot Bank continues to be reported below operating income on our consolidated statements of operations. |
Recent accounting pronouncements | Recent Accounting Pronouncements Recently adopted accounting pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02") in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous GAAP. The guidance has been modified through additional technical corrections since its original issuance, including optional transition relief as provided for under Note 2—Summary of Significant Accounting Policies (continued) ASU No. 2018-11, Leases (Topic 842): Targeted Improvements . ASU 2016-02 requires that a lessee should recognize a liability to make lease payments and a right-of-use ("ROU") asset representing its right to use the underlying asset for leases with a term greater than 12 months. We adopted the new lease standard effective January 1, 2019, electing the optional transition method that permits the new standard to be applied prospectively, as of the effective date, without restating comparative periods presented. As a result, prior periods continue to be reported in accordance with our historical lease accounting policies. We elected the package of practical expedients under the new standard, which allows us to not reassess 1) whether any expired or existing contracts as of the adoption date are or contain a lease, 2) lease classification for any expired or existing leases as of the adoption date and 3) initial direct costs for any existing leases as of the adoption date. We did not elect to use the hindsight practical expedient under the new standard when determining the lease term and assessing any impairment of ROU assets. The adoption of ASU 2016-02 resulted in the recognition of operating ROU assets of approximately $17.9 million on our consolidated balance sheet and a corresponding lease liability of approximately $25.1 million . The difference between the lease assets and liabilities recognized on our consolidated balance sheets primarily relates to accrued rent on existing leases that were offset against the ROU asset upon adoption. The adoption of the standard did not have any impact on our consolidated statements of operations, comprehensive income, changes in stockholders’ equity and cash flows. See Note 15 — Leases , for discussion on updates to our lease accounting policies and additional disclosures. In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ("ASU 2018-15") , which amends ASC 350-40 to address implementation costs incurred in a cloud computing arrangement (CCA) that is a service contract. ASU 2018-15 aligns the accounting for costs incurred to implement a CCA that is a service arrangement with the guidance on capitalizing costs associated with developing or obtaining internal-use software. As a result, certain implementation costs incurred by companies under hosting arrangements will be deferred and amortized. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. We adopted the standard effective January 1, 2019 on a prospective basis, the effect of which did not have a material impact on our consolidated financial statements. Recently issued accounting pronouncements not yet adopted In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other ("ASU 2017-04") : Simplifying the Test for Goodwill Impairment , which simplifies the existing two-step guidance for goodwill impairment testing by eliminating the second step resulting in a write-down to goodwill equal to the initial amount of impairment determined in step one. The ASU is to be applied prospectively for reporting periods beginning after December 15, 2019. We do not anticipate the new ASU will have any impact upon adoption and intend to adopt the new accounting pronouncement upon its effective date on January 1, 2020. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Fair value of financial instruments | Short-term Financial Instruments Our short-term financial instruments consist principally of unrestricted and restricted cash and cash equivalents, settlement assets and obligations, and obligations to customers . These financial instruments are short-term in nature, and, accordingly, we believe their carrying amounts approximate their fair values. Under the fair value hierarchy, these instruments are classified as Level 1. Investment Securities The fair values of investment securities have been derived using methodologies referenced in Note 2–Summary of Significant Accounting Policies to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2018 . Under the fair value hierarchy, our investment securities are classified as Level 2. Loans We determined the fair values of loans by discounting both principal and interest cash flows expected to be collected using a discount rate commensurate with the risk that we believe a market participant would consider in determining fair value. Under the fair value hierarchy, our loans are classified as Level 3. Deposits The fair value of demand and interest checking deposits and savings deposits is the amount payable on demand at the reporting date. We determined the fair value of time deposits by discounting expected future cash flows using market-derived rates based on our market yields on certificates of deposit, by maturity, at the measurement date. Under the fair value hierarchy, our deposits are classified as Level 2. Contingent Consideration The fair value of contingent consideration obligations, such as the earn-out associated with our acquisition of UniRush, is estimated through valuation models designed to estimate the probability of such contingent payments based on various assumptions. Estimated payments are discounted using present value techniques to arrive at an estimated fair value. Our contingent consideration payable is classified as Level 3 because we use unobservable inputs to estimate fair value, including the probability of achieving certain earnings thresholds and appropriate discount rates. Changes in fair value of contingent consideration are recorded through operating expenses. Note Payable The fair value of our note payable is based on borrowing rates currently available to a market participant for loans with similar terms or maturity. The carrying amount of our note payable approximates fair value because the base interest rate charged varies with market conditions and the credit spread is commensurate with current market spreads for issuers of similar risk. The fair value of the note payable is classified as a Level 2 liability in the fair value hierarchy. Fair Value of Financial Instruments |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | The following table disaggregates our revenues by the timing in which the revenue is recognized: Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 Account Services Processing and Settlement Services Account Services Processing and Settlement Services Timing of revenue recognition (In thousands) Transferred at a point in time $ 123,152 $ 67,071 $ 124,785 $ 60,613 Transferred over time 77,564 2,233 72,070 881 Operating revenues (1) $ 200,716 $ 69,304 $ 196,855 $ 61,494 Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 Account Services Processing and Settlement Services Account Services Processing and Settlement Services Timing of revenue recognition (In thousands) Transferred at a point in time $ 264,074 $ 174,647 $ 261,311 $ 160,848 Transferred over time 157,331 3,665 149,416 1,772 Operating revenues (1) $ 421,405 $ 178,312 $ 410,727 $ 162,620 (1) Excludes net interest income, a component of total operating revenues, as it remains outside the scope of ASC 606, Revenues |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of available-for-sale investment securities | Our available-for-sale investment securities were as follows: Amortized cost Gross unrealized gains Gross unrealized losses Fair value (In thousands) June 30, 2019 Corporate bonds $ 10,000 $ 21 $ — $ 10,021 Negotiable certificate of deposit 5,000 — — 5,000 Agency bond securities 19,745 24 — 19,769 Agency mortgage-backed securities 143,338 2,095 (126 ) 145,307 Municipal bonds 406 2 (3 ) 405 Asset-backed securities 63,155 329 (1 ) 63,483 Total investment securities $ 241,644 $ 2,471 $ (130 ) $ 243,985 December 31, 2018 Negotiable certificate of deposit $ 15,000 $ — $ — $ 15,000 Agency bond securities 19,723 6 (36 ) 19,693 Agency mortgage-backed securities 87,156 53 (396 ) 86,813 Municipal bonds 507 — (24 ) 483 Asset-backed securities 79,274 14 (94 ) 79,194 Total investment securities $ 201,660 $ 73 $ (550 ) $ 201,183 As of June 30, 2019 and December 31, 2018 , the gross unrealized losses and fair values of available-for-sale investment securities that were in unrealized loss positions were as follows: Less than 12 months 12 months or more Total fair value Total unrealized loss Fair value Unrealized loss Fair value Unrealized loss (In thousands) June 30, 2019 Agency mortgage-backed securities $ 4,558 $ (30 ) $ 9,402 $ (96 ) $ 13,960 $ (126 ) Municipal bonds — — 122 (3 ) 122 (3 ) Asset-backed securities 5,023 (1 ) — — 5,023 (1 ) Total investment securities $ 9,581 $ (31 ) $ 9,524 $ (99 ) $ 19,105 $ (130 ) December 31, 2018 Agency bond securities $ 14,937 $ (36 ) $ — $ — $ 14,937 $ (36 ) Agency mortgage-backed securities 28,939 (103 ) 8,743 (293 ) 37,682 (396 ) Municipal bonds 353 (14 ) 130 (10 ) 483 (24 ) Asset-backed securities 50,980 (70 ) 7,333 (24 ) 58,313 (94 ) Total investment securities $ 95,209 $ (223 ) $ 16,206 $ (327 ) $ 111,415 $ (550 ) |
Schedule of maturity dates for available-for-sale investment securities | As of June 30, 2019 , the contractual maturities of our available-for-sale investment securities were as follows: Amortized cost Fair value (In thousands) Due in one year or less $ 19,995 $ 20,017 Due after one year through five years 14,750 14,773 Due after five years through ten years — — Due after ten years 406 405 Mortgage and asset-backed securities 206,493 208,790 Total investment securities $ 241,644 $ 243,985 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule of accounts receivable | Accounts receivable, net consisted of the following: June 30, 2019 December 31, 2018 (In thousands) Overdrawn account balances due from cardholders $ 19,197 $ 17,848 Reserve for uncollectible overdrawn accounts (15,854 ) (13,888 ) Net overdrawn account balances due from cardholders 3,343 3,960 Trade receivables 9,337 6,505 Reserve for uncollectible trade receivables (83 ) (59 ) Net trade receivables 9,254 6,446 Receivables due from card issuing banks 6,899 6,688 Fee advances 216 19,576 Other receivables 8,487 4,272 Accounts receivable, net $ 28,199 $ 40,942 Activity in the reserve for uncollectible overdrawn accounts consisted of the following: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands) Balance, beginning of period $ 17,125 $ 15,796 $ 13,888 $ 14,471 Provision for uncollectible overdrawn accounts: Fees 20,321 20,353 41,398 36,132 Purchase transactions 1,551 3,079 4,047 5,685 Charge-offs (23,143 ) (22,141 ) (43,479 ) (39,201 ) Balance, end of period $ 15,854 $ 17,087 $ 15,854 $ 17,087 |
Loans to Bank Customers (Tables
Loans to Bank Customers (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of past due financing receivables | The following table presents the carrying value, gross of the related allowance for loan losses, of our nonperforming loans. See Note 2 — Summary of Significant Accounting Policies to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2018 for further information on the criteria for classification as nonperforming. June 30, 2019 December 31, 2018 (In thousands) Residential $ 321 $ 403 Installment 158 169 Secured credit card 554 1,114 Total loans $ 1,033 $ 1,686 The following table presents total outstanding loans, gross of the related allowance for loan losses, and a summary of the related payment status: 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Total Current or Less Than 30 Days Past Due Total Outstanding (In thousands) June 30, 2019 Residential $ — $ 4 $ — $ 4 $ 2,987 $ 2,991 Commercial — — — — 124 124 Installment 1 — — 1 728 729 Secured credit card 1,265 1,172 554 2,991 15,538 18,529 Total loans $ 1,266 $ 1,176 $ 554 $ 2,996 $ 19,377 $ 22,373 Percentage of outstanding 5.7 % 5.3 % 2.5 % 13.4 % 86.6 % 100.0 % December 31, 2018 Residential $ 2 $ — $ 7 $ 9 $ 3,329 $ 3,338 Commercial — — — — 193 193 Installment — 2 — 2 905 907 Secured credit card 1,383 1,315 1,114 3,812 14,257 18,069 Total loans $ 1,385 $ 1,317 $ 1,121 $ 3,823 $ 18,684 $ 22,507 Percentage of outstanding 6.2 % 5.9 % 5.0 % 17.0 % 83.0 % 100.0 % |
Schedule of credit quality indicators related to loan portfolio | The table below presents the carrying value, gross of the related allowance for loan losses, of our loans within the primary credit quality indicators related to our loan portfolio: June 30, 2019 December 31, 2018 Non-Classified Classified Non-Classified Classified (In thousands) Residential $ 2,670 $ 321 $ 2,935 $ 403 Commercial 124 — 193 — Installment 490 239 632 275 Secured credit card 17,975 554 16,955 1,114 Total loans $ 21,259 $ 1,114 $ 20,715 $ 1,792 |
Schedule of troubled debt restructurings | The following table presents our impaired loans and loans that we modified as TDRs as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 Unpaid Principal Balance Carrying Value Unpaid Principal Balance Carrying Value (In thousands) Residential $ 321 $ 261 $ 403 $ 329 Installment 175 47 190 53 |
Schedule of allowance for loan losses | Activity in the allowance for loan losses consisted of the following: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands) Balance, beginning of period $ 948 $ 451 $ 1,144 $ 291 Provision for loans 590 966 1,256 1,234 Loans charged off (637 ) (328 ) (1,549 ) (634 ) Recoveries of loans previously charged off 69 84 119 282 Balance, end of period $ 970 $ 1,173 $ 970 $ 1,173 |
Employee Stock-Based Compensa_2
Employee Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of awards | The following table summarizes restricted stock units subject to only service conditions granted under our 2010 Equity Incentive Plan: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands, except per share data) Restricted stock units granted 53 120 89 183 Weighted-average grant-date fair value $ 48.63 $ 71.20 $ 55.92 $ 67.17 The following table summarizes the performance-based restricted stock units granted under our 2010 Equity Incentive Plan: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands, except per share data) Performance based restricted stock units granted (1) 627 168 883 612 Weighted-average grant-date fair value $ 49.17 $ 71.47 $ 50.15 $ 49.04 (1 ) Performance awards granted also reflects the issuance of any shares awarded in excess of their original target amount based on the Compensation Committee's certification of completed performance years. The grant date fair value for these awards are based on the grant price at the time of the original award. |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Deposits [Abstract] | |
Schedule of deposits | Deposits are categorized as non-interest or interest-bearing deposits as follows: June 30, 2019 December 31, 2018 (In thousands) Non-interest bearing deposit accounts GPR deposits $ 885,122 $ 817,124 Other demand deposits 127,968 97,442 Total non-interest bearing deposit accounts 1,013,090 914,566 Interest-bearing deposit accounts Checking accounts 134,182 67,758 Savings 8,613 8,894 GPR deposits 11,136 9,224 Time deposits, denominations greater than or equal to $100 3,485 3,796 Time deposits, denominations less than $100 1,170 1,247 Total interest-bearing deposit accounts 158,586 90,919 Total deposits $ 1,171,676 $ 1,005,485 |
Schedule of maturities for total time deposits | The scheduled contractual maturities for total time deposits are presented in the table below: June 30, 2019 (In thousands) Due in 2019 $ 626 Due in 2020 1,764 Due in 2021 1,238 Due in 2022 589 Due in 2023 334 Thereafter 104 Total time deposits $ 4,655 |
Note Payable (Tables)
Note Payable (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of outstanding debt | Our outstanding debt, net of deferred financing costs, consisted of the following as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 (In thousands) Term facility $ — $ 58,705 Revolving facility — — Total notes payable $ — $ 58,705 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of federal tax rate and actual income tax expense reconciliation | The sources and tax effects of the differences are as follows: Six Months Ended June 30, 2019 2018 U.S. federal statutory tax rate 21.0 % 21.0 % State income taxes, net of federal tax benefit 1.7 0.6 General business credits (1.5 ) (0.7 ) Employee stock-based compensation (3.7 ) (12.2 ) IRC 162(m) limitation 2.4 1.8 Other 0.3 0.1 Effective tax rate 20.2 % 10.6 % |
Schedule of income tax contingencies | The reconciliation of the beginning unrecognized tax benefits balance to the ending balance is as follows: Six Months Ended June 30, 2019 2018 (In thousands) Beginning balance $ 6,965 $ 5,560 Increases related to positions taken during prior years — — Increases related to positions taken during the current year 1,569 1,099 Decreases related to positions settled with tax authorities — — Decreases as a result of a lapse of applicable statute of limitations — — Ending balance $ 8,534 $ 6,659 The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate $ 8,481 $ 6,659 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of accelerated share repurchases | The following table summarizes our ASR activity under our current repurchase program: Purchase Period End Date Number of Shares (In thousands) Average repurchase price per share ASR Amount (In thousands) May 2019 ASR September 2019 1,666 (1) (1) $ 100,000 (1 ) "Number of Shares" represents shares delivered in the beginning of the purchase period and does not represent the final number of shares to be delivered under the ASR. The total number of shares ultimately delivered, and therefore the average repurchase price paid per share, will be determined at the end of the applicable purchase period based on the volume-weighted average price of our Class A common stock during that period. We expect the May 2019 ASR purchase to settle by September 2019. |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted EPS | The calculation of basic and diluted EPS was as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands, except per share data) Basic earnings per Class A common share Numerator: Net income $ 34,692 $ 29,827 $ 98,735 $ 99,858 Denominator: Weighted-average Class A shares issued and outstanding 52,588 52,105 52,818 51,774 Basic earnings per Class A common share $ 0.66 $ 0.57 $ 1.87 $ 1.93 Diluted earnings per Class A common share Numerator: Net income $ 34,692 $ 29,827 $ 98,735 $ 99,858 Denominator: Weighted-average Class A shares issued and outstanding 52,588 52,105 52,818 51,774 Dilutive potential common shares: Stock options 131 343 150 441 Restricted stock units 456 1,236 586 1,296 Performance based restricted stock units 630 705 592 789 Employee stock purchase plan 6 1 8 1 Diluted weighted-average Class A shares issued and outstanding 53,811 54,390 54,154 54,301 Diluted earnings per Class A common share $ 0.64 $ 0.55 $ 1.82 $ 1.84 |
Schedule of antidilutive shares | The following table shows the weighted-average number of shares excluded from the diluted EPS calculation: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands) Class A common stock Restricted stock units 329 — 226 — Performance based restricted stock units 431 134 217 101 Total restricted and performance based stock units 760 134 443 101 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities carried at fair value | As of June 30, 2019 and December 31, 2018 , our assets and liabilities carried at fair value on a recurring basis were as follows: Level 1 Level 2 Level 3 Total Fair Value June 30, 2019 (In thousands) Assets Corporate bonds $ — $ 10,021 $ — $ 10,021 Negotiable certificate of deposit — 5,000 — 5,000 Agency bond securities — 19,769 — 19,769 Agency mortgage-backed securities — 145,307 — 145,307 Municipal bonds — 405 — 405 Asset-backed securities — 63,483 — 63,483 Total assets $ — $ 243,985 $ — $ 243,985 Liabilities Contingent consideration $ — $ — $ 13,166 $ 13,166 December 31, 2018 Assets Negotiable certificate of deposit $ — $ 15,000 $ — $ 15,000 Agency bond securities — 19,693 — 19,693 Agency mortgage-backed securities — 86,813 — 86,813 Municipal bonds — 483 — 483 Asset-backed securities — 79,194 — 79,194 Total assets $ — $ 201,183 $ — $ 201,183 Liabilities Contingent consideration $ — $ — $ 15,800 $ 15,800 |
Schedule of changes in contingent consideration payable | The following table presents changes in our contingent consideration payable for the three and six months ended June 30, 2019 and 2018 , which is categorized in Level 3 of the fair value hierarchy: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands) Balance, beginning of period $ 15,800 $ 17,156 $ 15,800 $ 17,358 Payments of contingent consideration (2,634 ) (2,492 ) (2,634 ) (2,694 ) Balance, end of period $ 13,166 $ 14,664 $ 13,166 $ 14,664 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets not carried at fair value | The carrying values and fair values of certain financial instruments that were not carried at fair value, excluding short-term financial instruments for which the carrying value approximates fair value, at June 30, 2019 and December 31, 2018 are presented in the table below. June 30, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Financial Assets Loans to bank customers, net of allowance $ 21,403 $ 21,224 $ 21,363 $ 21,088 Financial Liabilities Deposits $ 1,171,676 $ 1,171,638 $ 1,005,485 $ 1,005,435 Note payable $ — $ — $ 58,705 $ 58,705 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of supplemental lease information | Supplemental information related to our ROU assets and related lease liabilities is as follows: June 30, 2019 Cash paid for operating lease liabilities (in thousands) $ 3,512 Weighted average remaining lease term 4.5 years Weighted average discount rate 4.7 % |
Schedule of lease liabilities | Maturities of our operating lease liabilities as of June 30, 2019 is as follows: Operating Leases (In thousands) Remainder of 2019 $ 5,061 2020 10,124 2021 9,737 2022 8,734 2023 3,464 Thereafter 5,196 42,316 Less: imputed interest (4,881 ) Total lease liabilities $ 37,435 Note 15—Leases (continued) Future minimum rental payments under our non-cancelable operating leases as of December 31, 2018 were as follows: Operating Leases (1) Year ending December 31, (In thousands) 2019 $ 7,927 2020 7,929 2021 6,689 2022 5,372 Total minimum lease payments $ 27,917 (1) Amounts are based on ASC 840, Leases , that was superseded upon our adoption of ASC 842, Leases on January 1, 2019 |
Significant Retailer Concentr_2
Significant Retailer Concentrations (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Schedule of customer concentrations | Revenues derived from our products sold at retail distributors constituting greater than 10% of our total operating revenues were as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Walmart 35% 36% 32% 34% Settlement assets derived from our products sold at retail distributors constituting greater than 10% of the settlement assets outstanding on our consolidated balance sheets were as follows: June 30, 2019 December 31, 2018 Walmart 19% 18% |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting | The following tables present certain financial information for each of our reportable segments for the periods then ended: Three Months Ended June 30, 2019 Account Services Processing and Settlement Services Corporate and Other Total (In thousands) Operating revenues $ 216,032 $ 70,040 $ (7,746 ) $ 278,326 Operating expenses 165,574 45,867 22,922 234,363 Operating income $ 50,458 $ 24,173 $ (30,668 ) $ 43,963 Three Months Ended June 30, 2018 Account Services Processing and Settlement Services Corporate and Other Total (In thousands) Operating revenues $ 209,686 $ 61,928 $ (7,822 ) $ 263,792 Operating expenses 166,025 42,572 22,571 231,168 Operating income $ 43,661 $ 19,356 $ (30,393 ) $ 32,624 Note 18—Segment Information (continued) Six Months Ended June 30, 2019 Account Services Processing and Settlement Services Corporate and Other Total (In thousands) Operating revenues $ 455,665 $ 180,689 $ (17,514 ) $ 618,840 Operating expenses 342,361 100,382 50,749 493,492 Operating income $ 113,304 $ 80,307 $ (68,263 ) $ 125,348 Six Months Ended June 30, 2018 Account Services Processing and Settlement Services Corporate and Other Total (In thousands) Operating revenues $ 437,310 $ 163,940 $ (17,116 ) $ 584,134 Operating expenses 335,735 93,023 41,028 469,786 Operating income $ 101,575 $ 70,917 $ (58,144 ) $ 114,348 |
Organization (Details)
Organization (Details) store in Thousands, customer in Thousands | 6 Months Ended |
Jun. 30, 2019customerstore | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of stores (in stores) | store | 100 |
Number of customers served (more than) (in customers) | customer | 25 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 |
Lessee, Lease, Description [Line Items] | ||
Operating lease right-of-use assets | $ 31,251 | |
Lease liabilities | $ 37,435 | |
Accounting Standards Update 2016-02 | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease right-of-use assets | $ 17,900 | |
Lease liabilities | $ 25,100 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | $ 278,326 | $ 263,792 | $ 618,840 | $ 584,134 |
Deferred revenue, revenue recognized | 10,200 | 9,400 | 31,400 | 28,300 |
Account Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 200,716 | 196,855 | 421,405 | 410,727 |
Account Services | Transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 123,152 | 124,785 | 264,074 | 261,311 |
Account Services | Transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 77,564 | 72,070 | 157,331 | 149,416 |
Processing and Settlement Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 69,304 | 61,494 | 178,312 | 162,620 |
Processing and Settlement Services | Transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 67,071 | 60,613 | 174,647 | 160,848 |
Processing and Settlement Services | Transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | $ 2,233 | $ 881 | $ 3,665 | $ 1,772 |
Investment Securities - Gross G
Investment Securities - Gross Gains and Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 241,644 | $ 201,660 |
Gross unrealized gains | 2,471 | 73 |
Gross unrealized losses | (130) | (550) |
Fair value | 243,985 | 201,183 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 10,000 | |
Gross unrealized gains | 21 | |
Gross unrealized losses | 0 | |
Fair value | 10,021 | |
Negotiable certificate of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 5,000 | 15,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair value | 5,000 | 15,000 |
Agency bond securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 19,745 | 19,723 |
Gross unrealized gains | 24 | 6 |
Gross unrealized losses | 0 | (36) |
Fair value | 19,769 | 19,693 |
Agency mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 143,338 | 87,156 |
Gross unrealized gains | 2,095 | 53 |
Gross unrealized losses | (126) | (396) |
Fair value | 145,307 | 86,813 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 406 | 507 |
Gross unrealized gains | 2 | 0 |
Gross unrealized losses | (3) | (24) |
Fair value | 405 | 483 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 63,155 | 79,274 |
Gross unrealized gains | 329 | 14 |
Gross unrealized losses | (1) | (94) |
Fair value | $ 63,483 | $ 79,194 |
Investment Securities - Continu
Investment Securities - Continuous Unrealized Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Fair value, less than 12 months | $ 9,581 | $ 9,581 | $ 95,209 | ||
Unrealized loss, less than 12 months | (31) | (31) | (223) | ||
Fair value, 12 months or more | 9,524 | 9,524 | 16,206 | ||
Unrealized loss, 12 months or more | (99) | (99) | (327) | ||
Total fair value | 19,105 | 19,105 | 111,415 | ||
Total unrealized loss | (130) | (130) | (550) | ||
OTTI Loss, AFS | 0 | $ 0 | 0 | $ 0 | |
Agency bond securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fair value, less than 12 months | 14,937 | ||||
Unrealized loss, less than 12 months | (36) | ||||
Fair value, 12 months or more | 0 | ||||
Unrealized loss, 12 months or more | 0 | ||||
Total fair value | 14,937 | ||||
Total unrealized loss | (36) | ||||
Agency mortgage-backed securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fair value, less than 12 months | 4,558 | 4,558 | 28,939 | ||
Unrealized loss, less than 12 months | (30) | (30) | (103) | ||
Fair value, 12 months or more | 9,402 | 9,402 | 8,743 | ||
Unrealized loss, 12 months or more | (96) | (96) | (293) | ||
Total fair value | 13,960 | 13,960 | 37,682 | ||
Total unrealized loss | (126) | (126) | (396) | ||
Municipal bonds | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fair value, less than 12 months | 0 | 0 | 353 | ||
Unrealized loss, less than 12 months | 0 | 0 | (14) | ||
Fair value, 12 months or more | 122 | 122 | 130 | ||
Unrealized loss, 12 months or more | (3) | (3) | (10) | ||
Total fair value | 122 | 122 | 483 | ||
Total unrealized loss | (3) | (3) | (24) | ||
Asset-backed securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fair value, less than 12 months | 5,023 | 5,023 | 50,980 | ||
Unrealized loss, less than 12 months | (1) | (1) | (70) | ||
Fair value, 12 months or more | 0 | 0 | 7,333 | ||
Unrealized loss, 12 months or more | 0 | 0 | (24) | ||
Total fair value | 5,023 | 5,023 | 58,313 | ||
Total unrealized loss | $ (1) | $ (1) | $ (94) |
Investment Securities - Maturit
Investment Securities - Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Amortized cost | ||
Due in one year or less | $ 19,995 | |
Due after one year through five years | 14,750 | |
Due after five years through ten years | 0 | |
Due after ten years | 406 | |
Mortgage and asset-backed securities | 206,493 | |
Amortized cost | 241,644 | $ 201,660 |
Fair value | ||
Due in one year or less | 20,017 | |
Due after one year through five years | 14,773 | |
Due after five years through ten years | 0 | |
Due after ten years | 405 | |
Mortgage and asset-backed securities | 208,790 | |
Fair value | $ 243,985 | $ 201,183 |
Accounts Receivable - Accounts
Accounts Receivable - Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable current and noncurrent, net | $ 28,199 | $ 40,942 | ||||
Overdrawn account balances due from cardholders | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable, gross | 19,197 | 17,848 | ||||
Reserve for uncollectible overdrawn accounts | (15,854) | $ (17,125) | (13,888) | $ (17,087) | $ (15,796) | $ (14,471) |
Accounts receivable current and noncurrent, net | 3,343 | 3,960 | ||||
Trade receivables | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable, gross | 9,337 | 6,505 | ||||
Reserve for uncollectible overdrawn accounts | (83) | (59) | ||||
Accounts receivable current and noncurrent, net | 9,254 | 6,446 | ||||
Receivables due from card issuing banks | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable, gross | 6,899 | 6,688 | ||||
Fee advances | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable, gross | 216 | 19,576 | ||||
Other receivables | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable, gross | $ 8,487 | $ 4,272 |
Accounts Receivable - Reserve F
Accounts Receivable - Reserve For Uncollectible Overdrawn Accounts (Details) - Overdrawn account balances due from cardholders - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Uncollectible Overdrawn Accounts [Roll Forward] | ||||
Balance, beginning of period | $ 17,125 | $ 15,796 | $ 13,888 | $ 14,471 |
Provision for uncollectible overdrawn accounts: | ||||
Fees | 20,321 | 20,353 | 41,398 | 36,132 |
Purchase transactions | 1,551 | 3,079 | 4,047 | 5,685 |
Charge-offs | (23,143) | (22,141) | (43,479) | (39,201) |
Balance, end of period | $ 15,854 | $ 17,087 | $ 15,854 | $ 17,087 |
Loans to Bank Customers - Loan
Loans to Bank Customers - Loan Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | $ 2,996 | $ 3,823 |
Total Current or Less Than 30 Days Past Due | 19,377 | 18,684 |
Total Outstanding | $ 22,373 | $ 22,507 |
Past Due (as a percent) | 13.40% | 17.00% |
Total Current or Less Than 30 Days Past Due (as a percent) | 86.60% | 83.00% |
Total Outstanding (as a percent) | 100.00% | 100.00% |
30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | $ 1,266 | $ 1,385 |
Past Due (as a percent) | 5.70% | 6.20% |
60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | $ 1,176 | $ 1,317 |
Past Due (as a percent) | 5.30% | 5.90% |
90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | $ 554 | $ 1,121 |
Past Due (as a percent) | 2.50% | 5.00% |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | $ 4 | $ 9 |
Total Current or Less Than 30 Days Past Due | 2,987 | 3,329 |
Total Outstanding | 2,991 | 3,338 |
Residential | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 0 | 2 |
Residential | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 4 | 0 |
Residential | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 0 | 7 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 0 | 0 |
Total Current or Less Than 30 Days Past Due | 124 | 193 |
Total Outstanding | 124 | 193 |
Commercial | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 0 | 0 |
Commercial | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 0 | 0 |
Commercial | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 0 | 0 |
Installment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 1 | 2 |
Total Current or Less Than 30 Days Past Due | 728 | 905 |
Total Outstanding | 729 | 907 |
Installment | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 1 | 0 |
Installment | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 0 | 2 |
Installment | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 0 | 0 |
Secured credit card | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 2,991 | 3,812 |
Total Current or Less Than 30 Days Past Due | 15,538 | 14,257 |
Total Outstanding | 18,529 | 18,069 |
Secured credit card | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 1,265 | 1,383 |
Secured credit card | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | 1,172 | 1,315 |
Secured credit card | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past Due | $ 554 | $ 1,114 |
Loans to Bank Customers - Nonpe
Loans to Bank Customers - Nonperforming Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Nonperforming Loans [Line Items] | ||
Nonperforming loans | $ 1,033 | $ 1,686 |
Residential | ||
Nonperforming Loans [Line Items] | ||
Nonperforming loans | 321 | 403 |
Installment | ||
Nonperforming Loans [Line Items] | ||
Nonperforming loans | 158 | 169 |
Secured credit card | ||
Nonperforming Loans [Line Items] | ||
Nonperforming loans | $ 554 | $ 1,114 |
Loans to Bank Customers - Credi
Loans to Bank Customers - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Outstanding Loans [Line Items] | ||
Loans to bank customers, carrying amount | $ 21,403 | $ 21,363 |
Non-Classified | ||
Outstanding Loans [Line Items] | ||
Loans to bank customers, carrying amount | 21,259 | 20,715 |
Classified | ||
Outstanding Loans [Line Items] | ||
Loans to bank customers, carrying amount | 1,114 | 1,792 |
Residential | Non-Classified | ||
Outstanding Loans [Line Items] | ||
Loans to bank customers, carrying amount | 2,670 | 2,935 |
Residential | Classified | ||
Outstanding Loans [Line Items] | ||
Loans to bank customers, carrying amount | 321 | 403 |
Commercial | Non-Classified | ||
Outstanding Loans [Line Items] | ||
Loans to bank customers, carrying amount | 124 | 193 |
Commercial | Classified | ||
Outstanding Loans [Line Items] | ||
Loans to bank customers, carrying amount | 0 | 0 |
Installment | Non-Classified | ||
Outstanding Loans [Line Items] | ||
Loans to bank customers, carrying amount | 490 | 632 |
Installment | Classified | ||
Outstanding Loans [Line Items] | ||
Loans to bank customers, carrying amount | 239 | 275 |
Secured credit card | Non-Classified | ||
Outstanding Loans [Line Items] | ||
Loans to bank customers, carrying amount | 17,975 | 16,955 |
Secured credit card | Classified | ||
Outstanding Loans [Line Items] | ||
Loans to bank customers, carrying amount | $ 554 | $ 1,114 |
Loans to Bank Customers - Troub
Loans to Bank Customers - Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Residential | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable, unpaid principal balance | $ 321 | $ 403 |
Financing receivable, modifications, recorded investment | 261 | 329 |
Installment | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable, unpaid principal balance | 175 | 190 |
Financing receivable, modifications, recorded investment | $ 47 | $ 53 |
Loans to Bank Customers - Allow
Loans to Bank Customers - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Allowance for Loan Losses [Roll Forward] | ||||
Balance, beginning of period | $ 948 | $ 451 | $ 1,144 | $ 291 |
Provision for loans | 590 | 966 | 1,256 | 1,234 |
Loans charged off | (637) | (328) | (1,549) | (634) |
Recoveries of loans previously charged off | 69 | 84 | 119 | 282 |
Balance, end of period | $ 970 | $ 1,173 | $ 970 | $ 1,173 |
Employee Stock-Based Compensa_3
Employee Stock-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee stock-based compensation | $ 8.4 | $ 11.2 | $ 23.2 | $ 20.6 |
2010 Equity Incentive Plan | Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units granted (in shares) | 53 | 120 | 89 | 183 |
Weighted-average grant-date fair value (in usd per share) | $ 48.63 | $ 71.20 | $ 55.92 | $ 67.17 |
2010 Equity Incentive Plan | Performance based restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average grant-date fair value (in usd per share) | $ 49.17 | $ 71.47 | $ 50.15 | $ 49.04 |
Award vesting period (in years) | 4 years | |||
Performance based restricted stock units granted (in shares) | 627 | 168 | 883 | 612 |
2010 Equity Incentive Plan | Performance based restricted stock units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target share percentage for shares issued | 0.00% | |||
2010 Equity Incentive Plan | Performance based restricted stock units | Minimum | Chief Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target share percentage for shares issued | 150.00% | |||
2010 Equity Incentive Plan | Performance based restricted stock units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target share percentage for shares issued | 150.00% | |||
2010 Equity Incentive Plan | Performance based restricted stock units | Maximum | Chief Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target share percentage for shares issued | 200.00% | |||
2010 Equity Incentive Plan- Executive Employees | Performance based restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period for recognition (in years) | 3 years |
Deposits - Summary of Deposits
Deposits - Summary of Deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
GPR deposits | $ 885,122 | $ 817,124 |
Other demand deposits | 127,968 | 97,442 |
Total non-interest bearing deposit accounts | 1,013,090 | 914,566 |
Checking accounts | 134,182 | 67,758 |
Savings | 8,613 | 8,894 |
GPR deposits | 11,136 | 9,224 |
Time deposits, denominations greater than or equal to $100 | 3,485 | 3,796 |
Time deposits, denominations less than $100 | 1,170 | 1,247 |
Total interest-bearing deposit accounts | 158,586 | 90,919 |
Total deposits | $ 1,171,676 | $ 1,005,485 |
Deposits - Contractual Maturiti
Deposits - Contractual Maturities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Deposits [Abstract] | |
Due in 2019 | $ 626 |
Due in 2020 | 1,764 |
Due in 2021 | 1,238 |
Due in 2022 | 589 |
Due in 2023 | 334 |
Thereafter | 104 |
Total time deposits | $ 4,655 |
Note Payable - Narrative (Detai
Note Payable - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2019 | Oct. 31, 2014 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Debt Instrument [Line Items] | ||||||
Repayments of notes payable | $ 60,000,000 | $ 11,250,000 | ||||
Bank Of America, N.A., Wells Fargo Bank, National Association, And Other Lenders | Line of credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 225,000,000 | |||||
Potential maximum borrowing capacity increase | 50,000,000 | |||||
Interest expense | $ 0 | $ 900,000 | $ 600,000 | $ 1,700,000 | ||
Bank Of America, N.A., Wells Fargo Bank, National Association, And Other Lenders | Line of credit | Federal funds rate | ||||||
Debt Instrument [Line Items] | ||||||
Spread on interest rate | 0.50% | |||||
Bank Of America, N.A., Wells Fargo Bank, National Association, And Other Lenders | Line of credit | Base rate | ||||||
Debt Instrument [Line Items] | ||||||
Spread on interest rate | 1.00% | |||||
Bank Of America, N.A., Wells Fargo Bank, National Association, And Other Lenders | Line of credit | Minimum | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.50% | |||||
Bank Of America, N.A., Wells Fargo Bank, National Association, And Other Lenders | Line of credit | Minimum | Base rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.50% | |||||
Bank Of America, N.A., Wells Fargo Bank, National Association, And Other Lenders | Line of credit | Maximum | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 3.00% | |||||
Bank Of America, N.A., Wells Fargo Bank, National Association, And Other Lenders | Line of credit | Maximum | Base rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.00% | |||||
Bank Of America, N.A., Wells Fargo Bank, National Association, And Other Lenders | Term facility | Line of credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 150,000,000 | |||||
Debt term | 5 years | |||||
Quarterly principal payment | $ 5,600,000 | |||||
Repayments of notes payable | $ 60,000,000 | |||||
Bank Of America, N.A., Wells Fargo Bank, National Association, And Other Lenders | Revolving facility | Line of credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 75,000,000 | |||||
Debt term | 5 years |
Note Payable - Schedule of Debt
Note Payable - Schedule of Debt (Details) - Bank Of America, N.A., Wells Fargo Bank, National Association, And Other Lenders - Line of credit - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total notes payable | $ 0 | $ 58,705 |
Term facility | ||
Debt Instrument [Line Items] | ||
Total notes payable | 0 | 58,705 |
Revolving facility | ||
Debt Instrument [Line Items] | ||
Total notes payable | $ 0 | $ 0 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
U.S. federal statutory tax rate (percent) | 21.00% | 21.00% |
State income taxes, net of federal tax benefit | 1.70% | 0.60% |
General business credits | (1.50%) | (0.70%) |
Employee stock-based compensation | (3.70%) | (12.20%) |
IRC 162(m) limitation | 0.024 | 0.018 |
Other | 0.30% | 0.10% |
Effective tax rate (percent) | 20.20% | 10.60% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | |||
U.S. federal statutory tax rate (percent) | 21.00% | 21.00% | |
Unrecognized tax benefits | $ 8,481 | $ 6,659 | $ 6,900 |
Unrecognized tax benefits, income tax penalties and interest accrued | 500 | $ 600 | |
Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 34,700 | ||
State | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 33,700 | ||
State | Latest tax year | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforwards | 14,200 | ||
State | Tax year 2023-2027 | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforwards | $ 1,100 |
Income Taxes - Rollforward of U
Income Taxes - Rollforward of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning balance | $ 6,965 | $ 5,560 | |
Increases related to positions taken during prior years | 0 | 0 | |
Increases related to positions taken during the current year | 1,569 | 1,099 | |
Decreases related to positions settled with tax authorities | 0 | 0 | |
Decreases as a result of a lapse of applicable statute of limitations | 0 | 0 | |
Ending balance | 8,534 | 6,659 | |
The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate | $ 8,481 | $ 6,659 | $ 6,900 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) shares in Thousands | 1 Months Ended | |
May 31, 2019 | May 31, 2017 | |
Equity [Abstract] | ||
Share repurchase program authorized amount | $ 150,000,000 | |
Shares authorized to be repurchased (in shares) | 1,666 | |
ASR Amount (In thousands) | $ 100,000,000 |
Earnings per Common Share - Bas
Earnings per Common Share - Basic Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income | $ 34,692 | $ 29,827 | $ 98,735 | $ 99,858 |
Basic weighted-average common shares issued and outstanding (in shares) | 52,588 | 52,105 | 52,818 | 51,774 |
Basic earnings per common share (in usd per share) | $ 0.66 | $ 0.57 | $ 1.87 | $ 1.93 |
Diluted weighted-average Class A shares issued and outstanding (in shares) | 53,811 | 54,390 | 54,154 | 54,301 |
Diluted earnings per common share (in usd per share) | $ 0.64 | $ 0.55 | $ 1.82 | $ 1.84 |
Stock options | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Dilutive potential common shares (in shares) | 131 | 343 | 150 | 441 |
Restricted stock units | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Dilutive potential common shares (in shares) | 456 | 1,236 | 586 | 1,296 |
Performance based restricted stock units | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Dilutive potential common shares (in shares) | 630 | 705 | 592 | 789 |
Employee stock purchase plan | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Dilutive potential common shares (in shares) | 6 | 1 | 8 | 1 |
Earnings per Common Share - Ant
Earnings per Common Share - Antidilutive Shares (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Antidilutive Shares [Line Items] | ||||
Antidilutive shares (in shares) | 760 | 134 | 443 | 101 |
Restricted stock units | ||||
Antidilutive Shares [Line Items] | ||||
Antidilutive shares (in shares) | 329 | 0 | 226 | 0 |
Performance based restricted stock units | ||||
Antidilutive Shares [Line Items] | ||||
Antidilutive shares (in shares) | 431 | 134 | 217 | 101 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 243,985 | $ 201,183 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 10,021 | |
Negotiable certificate of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 5,000 | 15,000 |
Agency bond securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 19,769 | 19,693 |
Agency mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 145,307 | 86,813 |
Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 405 | 483 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 63,483 | 79,194 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 243,985 | 201,183 |
Contingent consideration | 13,166 | 15,800 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Contingent consideration | 0 | 0 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 243,985 | 201,183 |
Contingent consideration | 0 | 0 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Contingent consideration | 13,166 | 15,800 |
Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 10,021 | |
Recurring | Corporate bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | |
Recurring | Corporate bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 10,021 | |
Recurring | Corporate bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | |
Recurring | Negotiable certificate of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 5,000 | 15,000 |
Recurring | Negotiable certificate of deposit | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Negotiable certificate of deposit | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 5,000 | 15,000 |
Recurring | Negotiable certificate of deposit | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Agency bond securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 19,769 | 19,693 |
Recurring | Agency bond securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Agency bond securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 19,769 | 19,693 |
Recurring | Agency bond securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Agency mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 145,307 | 86,813 |
Recurring | Agency mortgage-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Agency mortgage-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 145,307 | 86,813 |
Recurring | Agency mortgage-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 405 | 483 |
Recurring | Municipal bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Municipal bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 405 | 483 |
Recurring | Municipal bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 63,483 | 79,194 |
Recurring | Asset-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Asset-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 63,483 | 79,194 |
Recurring | Asset-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 0 | $ 0 |
Fair Value Measurements - Conti
Fair Value Measurements - Contingent Consideration Payable (Details) - Contingent consideration payable - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | $ 15,800 | $ 17,156 | $ 15,800 | $ 17,358 |
Payments of contingent consideration | (2,634) | (2,492) | (2,634) | (2,694) |
Balance, end of period | $ 13,166 | $ 14,664 | $ 13,166 | $ 14,664 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans to bank customers, net of allowance | $ 21,403 | $ 21,363 |
Deposits | 1,171,676 | 1,005,485 |
Note payable | 0 | 58,705 |
Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans to bank customers, net of allowance | 21,224 | 21,088 |
Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposits | 1,171,638 | 1,005,435 |
Note payable | $ 0 | $ 58,705 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease expense | $ 2.7 | $ 1.9 | $ 4.6 | $ 3.8 |
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease term | 1 year | 1 year | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease term | 6 years | 6 years |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 3,512 |
Weighted Average Remaining Lease Term | 4 years 6 months |
Weighted Average Discount Rate | 4.70% |
Leases - Maturities of Operatin
Leases - Maturities of Operating Leases (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Operating Leases | |
Remainder of 2019 | $ 5,061 |
2020 | 10,124 |
2021 | 9,737 |
2022 | 8,734 |
2023 | 3,464 |
Thereafter | 5,196 |
Payments due | 42,316 |
Less: imputed interest | (4,881) |
Total lease liabilities | 37,435 |
Operating Leases | |
2019 | 7,927 |
2020 | 7,929 |
2021 | 6,689 |
2022 | 5,372 |
Total minimum lease payments | $ 27,917 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - UniRush, LLC $ in Millions | Feb. 28, 2017USD ($) |
Business Acquisition [Line Items] | |
Contingent consideration, earn-out period | 5 years |
Contingent consideration, earn-out payable | $ 20 |
Significant Retailer Concentr_3
Significant Retailer Concentrations (Details) - Customer concentration risk - Walmart | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Percent of total operating revenues | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 35.00% | 36.00% | 32.00% | 34.00% |
Settlement assets | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 19.00% | 18.00% |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments (in segments) | segment | 2 | |||
Operating revenues | $ 278,326 | $ 263,792 | $ 618,840 | $ 584,134 |
Operating expenses | 234,363 | 231,168 | 493,492 | 469,786 |
Operating income | 43,963 | 32,624 | 125,348 | 114,348 |
Account Services | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 200,716 | 196,855 | 421,405 | 410,727 |
Processing and Settlement Services | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 69,304 | 61,494 | 178,312 | 162,620 |
Operating segments | Account Services | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 216,032 | 209,686 | 455,665 | 437,310 |
Operating expenses | 165,574 | 166,025 | 342,361 | 335,735 |
Operating income | 50,458 | 43,661 | 113,304 | 101,575 |
Operating segments | Processing and Settlement Services | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 70,040 | 61,928 | 180,689 | 163,940 |
Operating expenses | 45,867 | 42,572 | 100,382 | 93,023 |
Operating income | 24,173 | 19,356 | 80,307 | 70,917 |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | (7,746) | (7,822) | (17,514) | (17,116) |
Operating expenses | 22,922 | 22,571 | 50,749 | 41,028 |
Operating income | $ (30,668) | $ (30,393) | $ (68,263) | $ (58,144) |