Green Dot Reports Third Quarter 2013 Non-GAAP Revenue Growth of 4% and Non-GAAP diluted EPS of $0.24 on Better Usage and More

  Green Dot Reports Third Quarter 2013 Non-GAAP Revenue Growth of 4% and
  Non-GAAP diluted EPS of $0.24 on Better Usage and More Customers Receiving
  Recurring Direct Deposit

  *Announces new prepaid card distribution expansion into more than 7,800
    Family Dollar locations
  *Provides more details around expanded suite of GPR prepaid products sold
    nationwide at Walmart
  *Raises outlook for 2013

Business Wire

PASADENA, Calif. -- October 31, 2013

Green Dot Corporation (NYSE:GDOT), today reported financial results for the
third quarter ended September30, 2013.

For the third quarter of 2013, Green Dot reported a 4% year-over-year increase
in non-GAAP total operating revenues^1 to $139.1 million and non-GAAP diluted
earnings per share^1 of $0.24. GAAP results for the third quarter were $136.5
million in total operating revenues and $0.13 in diluted earnings per share.

Net cash provided by operating activities for the year-to-date period was
$93.0 million, a 12% increase versus the comparable period last year.

“Our financial results continued to fare better than our internal forecast
during the third quarter. Stronger customer usage metrics across the board,
including continued year-over-year growth in accounts receiving recurring
direct deposit, provided strong tailwinds for our business model. As
previously indicated, our profitability for the quarter reflects significant
investments made into various growth initiatives, including a large scale
product expansion at Walmart stores, the addition of what is now more than
27,000 new Green Dot brand retail distribution locations and our entry into
the check cashing store distribution channel. With more than 4 million active
accounts and approximately 3 million reloading cardholders, Green Dot
continues to be both the largest company in the prepaid industry, and the
hands-down leader in attracting, sticky, reloading customers. We feel very
good about the future prospects for our company and believe we are
well-positioned to return to double digit revenue growth as we look towards
2014," said Steve Streit, Green Dot's Chairman and Chief Executive Officer.

GAAP financial results for the third quarter of 2013 compared to the third
quarter of 2012:

  *Total operating revenues on a generally accepted accounting principles
    (GAAP) basis increased 3% to $136.5 million for the third quarter of 2013
    from $132.8 million for the third quarter of 2012
  *GAAP net income was $6.1 million for the third quarter of 2013 versus $9.6
    million for the third quarter of 2012
  *GAAP basic and diluted earnings per common share were $0.14 and $0.13,
    respectively, for the third quarter of 2013 versus $0.23 and $0.22,
    respectively, for the third quarter of 2012

Non-GAAP financial results for the third quarter of 2013 compared to the third
quarter of 2012:^1

  *Non-GAAP total operating  revenues^1 increased 4% to $139.1 million for
    the third quarter of 2013 from $134.0 million for the third quarter of
    2012
  *Non-GAAP net income^1 was $10.8 million for the third quarter of 2013
    versus $11.8 million for the third quarter of 2012
  *Non-GAAP diluted earnings per share^1 was $0.24 for the third quarter of
    2013 versus $0.27 for the third quarter of 2012
  *EBITDA plus employee stock-based compensation expense and stock-based
    retailer incentive compensation expense (adjusted EBITDA^1) was $21.6
    million for the third quarter of 2013 versus $23.3 million for the third
    quarter of 2012

Key business metrics for the quarter ended September30, 2013:

  *Number of cash transfers was 11.43 million for the third quarter of 2013,
    an increase of 0.91 million, or 9%, versus the third quarter of 2012
  *Number of active cards at quarter end was 4.41 million, which was flat
    versus the third quarter of 2012
  *Gross dollar volume (GDV) was $4.4 billion for the third quarter of 2013,
    an increase of $326 million, or 8%, versus the third quarter of 2012
  *Purchase volume was $3.3 billion for the third quarter of 2013, an
    increase of $293 million, or 10%, versus the third quarter of 2012

Please refer to the Company's latest Quarterly Report on Form 10-Q for a
description of the key business metrics described above. The following table
shows the Company's quarterly key business metrics for each of the last seven
calendar quarters:

            2013                                2012
              Q3        Q2        Q1             Q4        Q3        Q2        Q1
              (In millions)
Number of
cash          11.43     11.32     11.25          11.04     10.52     10.14     10.09
transfers
Number of
active
cards at      4.41        4.39        4.49           4.37        4.42        4.44        4.69
quarter
end
Gross
dollar        $ 4,396     $ 4,425     $ 5,072        $ 4,279     $ 4,070     $ 3,980     $ 4,823
volume
Purchase      $ 3,259     $ 3,248     $ 3,582        $ 3,233     $ 2,966     $ 2,943     $ 3,487
volume
                                                                                           

Select Business Updates

  *In September, the Green Dot category of GPR prepaid products and reload
    services began rolling out at more than 7,800 Family Dollar locations
    nationwide. Family Dollar provides incremental distribution in and around
    the neighborhoods where many potential Green Dot customers live and work.
    The addition of Family Dollar, combined with the announcements last
    quarter of new distribution in Dollar General, Dollar Tree, The Home Depot
    and other retail locations, comprises more than 27,000 new incremental
    distribution locations for Green Dot products and reloading services in
    2013. This represents the largest annual distribution footprint expansion
    in the Company’s history.
  *Green Dot and Walmart Stores, Inc. recently announced a significant
    expansion of the industry leading Walmart MoneyCard® GPR debit card
    program. Now on sale at all 4,100 U.S. Walmart locations, this expanded
    category includes nine GPR prepaid cards, each designed to appeal to a
    specific segment of potential customers. All nine cards are issued by
    Green Dot Bank, Member FDIC and are reloadable at Walmart and more than
    80,000 major retailers nationwide exclusively on the Green Dot Reload
    Network. Each product has its own unique branding, its own set of special
    features and its own differentiated pricing plan ranging from $3 to $6 for
    the purchase price, $3 to $5.95 for the monthly maintenance fee and $3 for
    the reload fee on all products, except for the “Preferred MoneyCard”
    product which has a $6 purchase price, a $3 monthly fee and no reload fee
    inside Walmart. This new category of products is designed to provide a
    higher value and more tailored customer experience with the goal of
    increasing usage and retention and, thus, increased lifetime revenue per
    card. We believe that the breadth of these new offerings, together with
    the wider variety of value based pricing plans and the more substantial
    in-store placement designed to showcase these new products, presents the
    opportunity for increased revenue and expanded margins going forward on
    the overall Walmart portfolio mix.
  *Green Dot was a featured presenter at the annual FISCA conference in
    Florida in early October. FISCA is the trade group for the Financial
    Service Center (FSC) industry, and the response from FSC owners and
    operators interested in selling Green Dot products was robust. Customer
    adoption in the first 45 days post launch at the company’s first FSC
    distribution partners in the greater New York area have exceeded our
    internal plan with daily card activation rates equal to or better than
    Green Dot’s historically best-selling retail locations.
  *GoBank has made good progress since its public launch in July. As evidence
    of its early momentum, GoBank was mentioned in an article by Consumer
    Reports Magazine
    (http://www.consumerreports.org/cro/magazine/2013/11/bank-transfer-day-credit-union-regional-banks-virtual-banks-consumer-reports/index.htm).
    Additionally, Apple featured GoBank on the front page of the App store
    under “Best new apps.” Apple also highlighted GoBank in a special section
    of Apps Designed for iOS7. All of this activity plus ongoing marketing
    efforts has led to a dramatic increase in the number of downloads and
    enrollments for GoBank, with positive trends in direct deposit enrollment,
    ongoing deposit rates and debit card spend. Many customers are opting to
    pay a voluntary monthly fee, and many are ordering a custom Visa debit
    personal photo card for $9. Although GoBank is for now a very small
    revenue contributor relative to all of Green Dot, it has the potential to
    become a meaningful contributor to results over time.

Updated Outlook for 2013

Again this quarter, Green Dot has raised its outlook for 2013. Green Dot’s
updated outlook is based on a number of assumptions that Green Dot believes
are reasonable at the time of this earnings release. Information regarding
potential risks that could cause the actual results to differ from these
forward-looking statements is set forth below and in Green Dot's filings with
the Securities and Exchange Commission.

For 2013, Green Dot now expects full year non-GAAP total operating revenues^2
to be in the range of $575 million to $580 million, adjusted EBITDA^2 to be
between $100 million and $105 million for the full year, and full-year
non-GAAP diluted EPS^2 to be between $1.10 and $1.20.

Green Dot’s previous guidance called for full year non-GAAP total operating
revenues^2 to be in the range of $565 million to $575 million, adjusted
EBITDA^2 to be between $95 million and $105 million, and full-year non-GAAP
diluted EPS^2 to be between $1.05 and $1.20.

Conference Call

The Company will host a conference call to discuss third quarter 2013
financial results today at 4:30 p.m. ET. In addition to the conference call,
there will be a webcast presentation of accompanying slides accessible on the
Company's investor relations website. Hosting the call will be Steve Streit,
Chairman and Chief Executive Officer. The conference call can be accessed live
over the phone by dialing (877) 300-8521, or (412) 317-6026 for international
callers. A replay will be available approximately two hours after the call
concludes and can be accessed by dialing (877) 870-5176 or (858) 384-5517 for
international callers; the conference ID is 10034624. The replay of the
webcast will be available until Thursday, November 7, 2013. The live call and
the replay, along with supporting materials, can also be accessed through the
Company's investor relations website at http://ir.greendot.com/.

     Reconciliations of total operating revenues to non-GAAP total operating
     revenues, net income to non-GAAP net income, diluted earnings per share
     to non-GAAP diluted earnings per share and net income to adjusted EBITDA,
^1  respectively, are provided in the tables immediately following the
     consolidated financial statements of cash flows. Additional information
     about the Company's non-GAAP financial measures can be found under the
     caption “About Non-GAAP Financial Measures” below.

     Reconciliations of forward-looking guidance for these non-GAAP financial
^2  measures to their respective, most directly comparable projected GAAP
     financial measures are provided in the tables immediately following the
     reconciliation of Net Income to Adjusted EBITDA.
     

Forward-Looking Statements

This earnings release contains forward-looking statements, which are subject
to the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. These statements include, among other things, statements regarding
the Company's full-year 2013 guidance, including all the statements under
"Updated Outlook for 2013," and other future events that involve risks and
uncertainties. Actual results may differ materially from those contained in
the forward-looking statements contained in this earnings release, and
reported results should not be considered as an indication of future
performance. The potential risks and uncertainties that could cause actual
results to differ from those projected include, among other things, the
Company's dependence on revenues derived from Walmart and three other retail
distributors, impact of competition, the Company's reliance on retail
distributors for the promotion of its products and services, demand for the
Company's new and existing products and services, continued and improving
returns from the Company's investments in new growth initiatives, the
possibility that the migration of accounts from GE Consumer Retail Bank to
Green Dot Bank does not achieve regulatory approval, potential difficulties in
integrating operations of acquired entities and acquired technologies, the
Company's ability to operate in a highly regulated environment, changes to
existing laws or regulations affecting the Company's operating methods or
economics, the Company's reliance on third-party vendors and card issuing
banks, changes in credit card association or other network rules or standards,
changes in card association and debit network fees or products or interchange
rates, instances of fraud developments in the prepaid financial services
industry that impact prepaid debit card usage generally, business interruption
or systems failure, and the Company's involvement litigation or
investigations.These and other risks are discussed in greater detail in the
Company's Securities and Exchange Commission filings, including its most
recent annual report on Form 10-K and quarterly report on Form 10-Q, which are
available on the Company's investor relations website at
http://ir.greendot.com/ and on the SEC website at www.sec.gov. All information
provided in this release and in the attachments is as of October31, 2013, and
the Company assumes no obligation to update this information as a result of
future events or developments.

About Non-GAAP Financial Measures

To supplement the Company's consolidated financial statements presented in
accordance with accounting principles generally accepted in the United States
of America (GAAP), the Company uses measures of operating results that are
adjusted to exclude net interest income; income tax expense; depreciation and
amortization; employee stock-based compensation expense; and stock-based
retailer incentive compensation expense. This earnings release includes
non-GAAP total operating revenues, non-GAAP net income, non-GAAP earnings per
share, non-GAAP weighted-average shares issued and outstanding and adjusted
EBITDA. It also includes full-year 2013 guidance for non-GAAP total operating
revenues, adjusted EBITDA and Non-GAAP diluted earnings per share. These
non-GAAP financial measures are not calculated or presented in accordance
with, and are not alternatives or substitutes for, financial measures prepared
in accordance with GAAP, and should be read only in conjunction with the
Company's financial measures prepared in accordance with GAAP. The Company's
non-GAAP financial measures may be different from similarly-titled non-GAAP
financial measures used by other companies. The Company believes that the
presentation of non-GAAP financial measures provides useful information to
management and investors regarding underlying trends in its consolidated
financial condition and results of operations. The Company's management
regularly uses these supplemental non-GAAP financial measures internally to
understand, manage and evaluate the Company's business and make operating
decisions. For additional information regarding the Company's use of non-GAAP
financial measures and the items excluded by the Company from one or more of
its historic and projected non-GAAP financial measures, investors are
encouraged to review the reconciliations of the Company's historic and
projected non-GAAP financial measures to the comparable GAAP financial
measures, which are attached to this earnings release, and which can be found
by clicking on “Financial Information” in the Investor Relations section of
the Company's website at http://ir.greendot.com/.

About Green Dot

Green Dot Corporation is a technology-centric, pro-consumer Bank Holding
Company with a mission to reinvent personal banking for the masses. The
company is the largest provider of prepaid debit card products and prepaid
card reloading services in the United States, as well as a leader in mobile
banking with its GoBank mobile bank account offering. Green Dot Corporation
products are available to consumers at more than 80,000 retailers nationwide,
online and via the leading app stores. The company is headquartered in
Pasadena, California with its bank subsidiary, Green Dot Bank, located in
Provo, Utah.

GREEN DOT CORPORATION
CONSOLIDATED BALANCE SHEETS
                                                            
                                              September 30,       December 31,

                                              2013                2012
                                              (Unaudited)
                                              (In thousands, except par value)
Assets
Current assets:
Unrestricted cash and cash equivalents        $   328,879         $   293,590
Federal funds sold                            922                 3,001
Investment securities available-for-sale,     138,407             115,244
at fair value
Settlement assets                             38,400              36,127
Accounts receivable, net                      48,208              40,441
Prepaid expenses and other assets             26,310              31,952
Income tax receivable                         3,590               7,386
Net deferred tax assets                       2,338               2,478
Total current assets                          587,054             530,219
Restricted cash                               667                 634
Investment securities,                        97,779              68,543
available-for-sale, at fair value
Accounts receivable, net                      4,844               10,931
Loans to bank customers, net of allowance
for loan losses of $464 and $475 as of
September 30,
2013 and December 31, 2012, respectively      6,522               7,552
Prepaid expenses and other assets             1,496               1,530
Property and equipment, net                   62,599              58,376
Deferred expenses                             6,946               12,510
Net deferred tax assets                       4,558               4,629
Goodwill and intangible assets                30,708              30,804
Total assets                                  $   803,173         $   725,728
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable                              $   21,047          $   31,411
Deposits                                      189,261             198,451
Obligations to customers                      56,871              46,156
Settlement obligations                        10,206              3,639
Amounts due to card issuing banks for         52,260              50,724
overdrawn accounts
Other accrued liabilities                     27,172              29,469
Deferred revenue                              13,663              19,557
Total current liabilities                     370,480             379,407
Other accrued liabilities                     41,545              18,557
Deferred revenue                              325                 —
Total liabilities                             412,350             397,964
                                                                  
Stockholders’ equity:
Convertible Series A preferred stock,
$0.001 par value: 10 shares authorized
and 7 shares
issued and outstanding as of September        7                   7
30, 2013 and December 31, 2012
Class A common stock, $0.001 par value;
100,000 shares authorized as of September
30, 2013
and December 31, 2012; 37,340 and 31,798
shares issued and outstanding as of
September
30, 2013 and December 31, 2012,               37                  31
respectively
Class B convertible common stock, $0.001
par value, 0 and 100,000 shares
authorized as of
September 30, 2013 and December 31, 2012,
respectively; 0 and 4,197 shares issued
and
outstanding as of September 30, 2013 and      —                   4
December 31, 2012, respectively
Additional paid-in capital                    188,804             158,656
Retained earnings                             201,964             168,960
Accumulated other comprehensive income        11                  106
Total stockholders’ equity                    390,823             327,764
Total liabilities and stockholders’           $   803,173         $   725,728
equity
                                                                      

GREEN DOT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
                                                 
                    Three Months Ended September     Nine Months Ended
                    30,                              September 30,
                    2013            2012            2013         2012
                    (In thousands, except per share data)
Operating
revenues:
Card revenues and   $  51,066        $  52,548       $ 170,762     $ 171,632
other fees
Cash transfer       47,193           41,832          137,161       121,721
revenues
Interchange         40,872           39,581          129,541       122,615
revenues
Stock-based
retailer            (2,587     )     (1,202    )     (6,163    )   (6,985    )
incentive
compensation
Total operating     136,544          132,759         431,301       408,983
revenues
Operating
expenses:
Sales and
marketing           52,042           51,930          159,899       157,516
expenses
Compensation and    32,343           29,041          95,297        83,074
benefits expenses
Processing          22,231           18,802          64,178        58,668
expenses
Other general and
administrative      21,954          18,109         63,259       52,075    
expenses
Total operating     128,570         117,882        382,633      351,333   
expenses
Operating income    7,974            14,877          48,668        57,650
Interest income     800              983             2,474         3,127
Interest expense    (22        )     (21       )     (55       )   (62       )
Income before       8,752            15,839          51,087        60,715
income taxes
Income tax          2,638           6,227          18,083       23,866    
expense
Net income          6,114            9,612           33,004        36,849
Income
attributable to     (958       )     (1,543    )     (5,232    )   (5,938    )
preferred stock
Net income
allocated to        $  5,156        $  8,069       $ 27,772     $ 30,911  
common
stockholders
Basic earnings
per common share:
Class A common      $  0.14         $  0.23        $ 0.76       $ 0.87    
stock
Class B common      $  0.14         $  0.23        $ 0.76       $ 0.87    
stock
Basic
weighted-average
common shares
issued and
outstanding:
Class A common      33,716          30,067         32,054       29,502    
stock
Class B common      2,447           4,585          3,481        4,884     
stock
Diluted earnings
per common share:
Class A common      $  0.13         $  0.22        $ 0.74       $ 0.84    
stock
Class B common      $  0.13         $  0.22        $ 0.74       $ 0.84    
stock
Diluted
weighted-average
common shares
issued and
outstanding:
Class A common      37,771          35,826         36,844       35,901    
stock
Class B common      2,447           5,732          3,481        6,346     
stock
                                                                             

GREEN DOT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
                                            
                                               Nine Months Ended September 30,
                                               2013             2012
                                               (In thousands)
Operating activities
Net income                                     $  33,004           $ 36,849
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization                  19,906              12,564
Provision for uncollectible overdrawn          38,164              46,683
accounts
Employee stock-based compensation              10,674              9,041
Stock-based retailer incentive                 6,163               6,985
compensation
Amortization of premium on                     456                 954
available-for-sale investment securities
Realized gains on investment securities        (8          )       (8        )
Recovery for uncollectible trade               (12         )       (420      )
receivables
Impairment of capitalized software             1,856               912
Deferred income tax expense                    271                 (32       )
Excess tax benefits from exercise of           (3,749      )       (2,665    )
options
Changes in operating assets and
liabilities:
Accounts receivable, net                       (39,832     )       (51,405   )
Prepaid expenses and other assets              5,676               (11,022   )
Deferred expenses                              5,564               5,681
Accounts payable and other accrued             11,350              21,809
liabilities
Amounts due issuing bank for overdrawn         1,536               12,984
accounts
Deferred revenue                               (5,569      )       (10,523   )
Income tax receivable                          7,543              4,929     
Net cash provided by operating activities      92,993              83,316
                                                                   
Investing activities
Purchases of available-for-sale investment     (214,638    )       (200,755  )
securities
Proceeds from maturities of                    114,975             29,708
available-for-sale securities
Proceeds from sales of available-for-sale      46,663              55,855
securities
(Increase) decrease in restricted cash         (33         )       142
Payments for acquisition of property and       (26,912     )       (23,312   )
equipment
Net principal collections on loans             1,030               2,348
Acquisitions, net of cash acquired             —                  (33,401   )
Net cash used in investing activities          (78,915     )       (169,415  )
                                                                   
Financing activities
Proceeds from exercise of options              9,564               2,710
Excess tax benefits from exercise of           3,749               2,665
options
Net decrease in deposits                       (9,190      )       (428      )
Net increase in obligations to customers       15,009             23,137    
Net cash provided by financing activities      19,132             28,084    
                                                                   
Net increase (decrease) in unrestricted
cash, cash equivalents, and federal funds      33,210              (58,015   )
sold
Unrestricted cash, cash equivalents, and       296,591            225,433   
federal funds sold, beginning of year
Unrestricted cash, cash equivalents, and       $  329,801         $ 167,418 
federal funds sold, end of period
                                                                   
Cash paid for interest                         $  7                $ 72
Cash paid for income taxes                     $  10,266           $ 23,012
                                                                             

GREEN DOT CORPORATION
Reconciliation of Total Operating Revenues to Non-GAAP Total Operating
Revenues (1)
(Unaudited)
                                               
                  Three Months Ended September       Nine Months Ended
                  30,                                September 30,
                  2013           2012              2013          2012
                  (In thousands)
Total
operating         $  136,544       $ 132,759         $ 431,301       $ 408,983
revenues
Stock-based
retailer
incentive         2,587           1,202            6,163          6,985
compensation
(2)(3)
Non-GAAP
total             $  139,131      $ 133,961        $ 437,464      $ 415,968
operating
revenues
                                                                       

Reconciliation of Net Income to Non-GAAP Net Income (1)
(Unaudited)
                                                  
                    Three Months Ended September       Nine Months Ended
                    30,                                September 30,
                    2013            2012             2013         2012
                    (In thousands, except per share data)
Net income          $  6,114          $ 9,612          $ 33,004       $ 36,849
Employee
stock-based
compensation        2,910             1,469            6,896          5,487
expense, net of
tax (4)
Stock-based
retailer
incentive           1,807            729             3,982         4,239
compensation, net
of tax (2)
Non-GAAP net        $  10,831        $ 11,810        $ 43,882      $ 46,575
income
Diluted earnings
per share*
GAAP                $  0.13           $ 0.22           $ 0.74         $ 0.84
Non-GAAP            $  0.24           $ 0.27           $ 0.98         $ 1.06
Diluted
weighted-average
shares issued and
outstanding**
GAAP                37,771            35,826           36,844         35,901
Non-GAAP            45,398            43,894           44,580         44,079
                                                                      

*   Reconciliations between GAAP and non-GAAP diluted weighted-average shares
     issued and outstanding are provided in the next table.
     
**   Diluted weighted-average Class A shares issued and outstanding is the
     most directly comparable GAAP measure for the periods indicated.
     

Reconciliation of GAAP to Non-GAAP Diluted Weighted-Average
Shares Issued and Outstanding (1)
(Unaudited)
                                                  
                     Three Months Ended                Nine Months Ended
                     September 30,                     September 30,
                     2013           2012             2013           2012
                     (In thousands)
Diluted
weighted-average     37,771           35,826           36,844           35,901
shares issued and
outstanding*
Assumed conversion
of
weighted-average     6,859            6,859            6,859            6,859
shares of
preferred stock
Weighted-average
shares subject to    768             1,209           877             1,319
repurchase
Non-GAAP diluted
weighted-average     45,398          43,894          44,580          44,079
shares issued and
outstanding
                                                                        

*  Represents the diluted weighted-average shares of Class A common stock for
    the periods indicated.
    

GREEN DOT CORPORATION
Supplemental Detail on Non-GAAP Diluted Weighted-Average Shares Issued and
Outstanding
(Unaudited)
                                                 
                    Three Months Ended                Nine Months Ended
                    September 30,                     September 30,
                    2013           2012             2013          2012
                    (In thousands)
Stock outstanding
as of June 30:
Class A common      37,340           31,314           37,340          31,314
stock
Class B common      —                4,560            —               4,560
stock
Preferred stock
(on an              6,859           6,859           6,859          6,859  
as-converted
basis)
Total stock
outstanding as of   44,199           42,733           44,199          42,733
June 30:
Weighting           (409    )        (13     )        (928    )       (169   )
adjustment
Dilutive
potential shares:
Stock options       1,333            1,147            1,104           1,462
Restricted stock    254              —                195             4
units
Employee stock      21              27              10             49     
purchase plan
Non-GAAP diluted
weighted-average    45,398          43,894          44,580         44,079 
shares issued and
outstanding
                                                                             

Reconciliation of Net Income to Adjusted EBITDA (1)
(Unaudited)
                                               
                  Three Months Ended                Nine Months Ended September
                  September 30,                     30,
                  2013          2012              2013          2012
                  (In thousands)
Net income        $ 6,114         $ 9,612           $ 33,004        $ 36,849
Net interest      (778      )     (962      )       (2,419    )     (3,065    )
income
Income tax        2,638           6,227             18,083          23,866
expense
Depreciation
and               6,903           4,824             19,906          12,565
amortization
Employee
stock-based       4,165           2,420             10,674          9,041
compensation
expense (3)(4)
Stock-based
retailer
incentive         2,587          1,202            6,163          6,985     
compensation
(2)(3)
Adjusted EBITDA   $ 21,629       $ 23,323         $ 85,411       $ 86,241  
Non-GAAP total
operating         $ 139,131      $ 133,961        $ 437,464      $ 415,968 
revenues
Adjusted
EBITDA/non-GAAP
total operating   15.5      %     17.4      %       19.5      %     20.7      %
revenues
(adjusted
EBITDA margin)
                                                                              

Reconciliation of Forward Looking Guidance for Non-GAAP Financial Measures to
Projected GAAP Total Operating Revenue (1)
(Unaudited)
                                         
                                              Range
                                              Low      High
                                              (In millions)
Total operating revenues                      $    566            $   571
Stock-based retailer incentive                9                  9         
compensation (2)*
Non-GAAP total operating revenues             $    575           $   580   
                                                                            

    Assumes the Company's right to repurchase lapses on 36,810 shares per
    month during 2013 of the Company's Class A common stock at $26.29 per
*  share, our market price on the last trading day of the third quarter 2013.
    A $1.00 change in the Company's Class A common stock price represents an
    annual change of $441,720 in stock-based retailer incentive compensation.
    

GREEN DOT CORPORATION
Reconciliation of Forward Looking Guidance for Non-GAAP Financial Measures to
Projected GAAP Net Income (1)
(Unaudited)
                                             
                                                Range
                                                Low    High
                                                (In millions)
Net income                                      $   34            $   39
Adjustments (5)                                 66               66        
Adjusted EBITDA                                 $   100           $   105
                                                                  
Non-GAAP total operating revenues               $   580          $   575   
Adjusted EBITDA / Non-GAAP total operating      17       %        18        %
revenues (Adjusted EBITDA margin)
                                                                            

Reconciliation of Forward Looking Guidance for Non-GAAP Financial Measures to
Projected GAAP Net Income (1)
(Unaudited)
                                    
                                        Range
                                        Low            High
                                        (In millions, except per share data)
Net income                              $    34                   $   39
Adjustments (5)                         15                       15        
Non-GAAP net income                     $    49                   $   54
Diluted earnings per share*
GAAP                                    $    0.77                 $   0.87
Non-GAAP                                $    1.10                 $   1.20
Diluted weighted-average shares
issued and outstanding**
GAAP                                    37                        37
Non-GAAP                                45                        45
                                                                            

*   Reconciliations between GAAP and non-GAAP diluted weighted-average shares
     issued and outstanding are provided in the next table.
     
**   Diluted weighted-average Class A shares issued and outstanding is the
     most directly comparable GAAP measure for the periods indicated.
     

Reconciliation of Forward Looking Guidance for Non-GAAP Financial Measures to
Projected GAAP Diluted Weighted-Average Shares Issued and Outstanding (1)
(Unaudited)
                                             
                                                Range
                                                Low    High
                                                (In millions)
Diluted weighted-average shares issued and      37                37
outstanding*
Assumed conversion of weighted-average          7                 7
shares of preferred stock
Weighted-average shares subject to              1                1      
repurchase
Non-GAAP diluted weighted-average shares        45               45     
issued and outstanding
                                                                         

* Represents the diluted weighted-average shares of Class A common stock for
  the periods indicated.

(1) To supplement the Company’s consolidated financial statements presented in
accordance with GAAP, the Company uses measures of operating results that are
adjusted to exclude various, primarily non-cash, expenses and charges. These
financial measures are not calculated or presented in accordance with GAAP and
should not be considered as alternatives to or substitutes for operating
revenues, operating income, net income or any other measure of financial
performance calculated and presented in accordance with GAAP. These financial
measures may not be comparable to similarly-titled measures of other
organizations because other organizations may not calculate their measures in
the same manner as we do. These financial measures are adjusted to eliminate
the impact of items that the Company does not consider indicative of its core
operating performance. You are encouraged to evaluate these adjustments and
the reasons we consider them appropriate.

The Company believes that the non-GAAP financial measures it presents are
useful to investors in evaluating the Company’s operating performance for the
following reasons:

  *stock-based retailer incentive compensation is a non-cash GAAP accounting
    charge that is an offset to the Company’s actual revenues from operations
    as the Company has historically calculated them. This charge results from
    the monthly lapsing of the Company’s right to repurchase a portion of the
    2,208,552 shares it issued to its largest distributor, Walmart, in May
    2010. By adding back this charge to the Company’s GAAP 2010 and future
    total operating revenues, investors can make direct comparisons of the
    Company’s revenues from operations prior to and after May 2010 and thus
    more easily perceive trends in the Company’s core operations. Further,
    because the monthly charge is based on the then-current fair market value
    of the shares as to which the Company’s repurchase right lapses, adding
    back this charge eliminates fluctuations in the Company’s operating
    revenues caused by variations in its stock price and thus provides insight
    on the operating revenues directly associated with those core operations;
  *the Company records employee stock-based compensation from period to
    period, and recorded employee stock-based compensation expenses of
    approximately $4.17 million and $2.42 million for the three months ended
    September30, 2013 and 2012, respectively. By comparing the Company’s
    adjusted EBITDA, non-GAAP net income and non-GAAP diluted earnings per
    share in different historical periods, investors can evaluate the
    Company’s operating results without the additional variations caused by
    employee stock-based compensation expense, which may not be comparable
    from period to period due to changes in the fair market value of the
    Company’s Class A common stock (which is influenced by external factors
    like the volatility of public markets and the financial performance of the
    Company’s peers) and is not a key measure of the Company’s operations;
  *adjusted EBITDA is widely used by investors to measure a company’s
    operating performance without regard to items, such as interest expense,
    income tax expense, depreciation and amortization, employee stock-based
    compensation expense, and stock-based retailer incentive compensation
    expense, that can vary substantially from company to company depending
    upon their respective financing structures and accounting policies, the
    book values of their assets, their capital structures and the methods by
    which their assets were acquired; and
  *securities analysts use adjusted EBITDA as a supplemental measure to
    evaluate the overall operating performance of companies.

The Company’s management uses the non-GAAP financial measures:

  *as measures of operating performance, because they exclude the impact of
    items not directly resulting from the Company’s core operations;
  *for planning purposes, including the preparation of the Company’s annual
    operating budget;
  *to allocate resources to enhance the financial performance of the
    Company’s business;
  *to evaluate the effectiveness of the Company’s business strategies; and
  *in communications with the Company’s board of directors concerning the
    Company’s financial performance.

The Company understands that, although adjusted EBITDA and other non-GAAP
financial measures are frequently used by investors and securities analysts in
their evaluations of companies, these measures have limitations as an
analytical tool, and you should not consider them in isolation or as
substitutes for analysis of the Company’s results of operations as reported
under GAAP. Some of these limitations are:

  *that these measures do not reflect the Company’s capital expenditures or
    future requirements for capital expenditures or other contractual
    commitments;
  *that these measures do not reflect changes in, or cash requirements for,
    the Company’s working capital needs;
  *that these measures do not reflect interest expense or interest income;
  *that these measures do not reflect cash requirements for income taxes;
  *that, although depreciation and amortization are non-cash charges, the
    assets being depreciated or amortized will often have to be replaced in
    the future, and these measures do not reflect any cash requirements for
    these replacements; and
  *that other companies in the Company’s industry may calculate these
    measures differently than the Company does, limiting their usefulness as
    comparative measures.

(2) This expense consists of the recorded fair value of the shares of Class A
common stock for which the Company’s right to repurchase has lapsed pursuant
to the terms of the May 2010 agreement under which they were issued to
Wal-Mart Stores, Inc., a contra-revenue component of the Company’s total
operating revenues. Prior to the three months ended June 30, 2010, the Company
did not record stock-based retailer incentive compensation expense. The
Company will, however, continue to incur this expense through May 2015. In
future periods, the Company does not expect this expense will be comparable
from period to period due to changes in the fair value of its Class A common
stock. The Company will also have to record additional stock-based retailer
incentive compensation expense to the extent that a warrant to purchase its
Class B common stock vests and becomes exercisable upon the achievement of
certain performance goals by PayPal. The Company does not believe these
non-cash expenses are reflective of ongoing operating results.

(3) The Company does not include any income tax impact of the associated
non-GAAP adjustment to non-GAAP total operating revenues or adjusted EBITDA,
as the case may be, because each of these non-GAAP financial measures is
provided before income tax expense.

(4) This expense consists primarily of expenses for employee stock options.
Employee stock-based compensation expense is not comparable from period to
period due to changes in the fair market value of the Company’s Class A common
stock (which is influenced by external factors like the volatility of public
markets and the financial performance of the Company’s peers) and is not a key
measure of the Company’s operations. The Company excludes employee stock-based
compensation expense from its non-GAAP financial measures primarily because it
consists of non-cash expenses that the Company does not believe are reflective
of ongoing operating results. Further, the Company believes that it is useful
to investors to understand the impact of employee stock-based compensation to
its results of operations.

(5) These amounts represent estimated adjustments for net interest income,
income taxes, depreciation and amortization, employee stock-based compensation
expense, and stock-based retailer incentive compensation expense. Employee
stock-based compensation expense and stock-based retailer incentive
compensation expense include assumptions about the future fair market value of
the Company’s Class A common stock (which is influenced by external factors
like the volatility of public markets and the financial performance of the
Company’s peers).

Contact:

Investor Relations
Christopher Mammone, 626-765-2427
IR@greendot.com
or
Media Relations
Brian Ruby, 203-682-8286
Brian.Ruby@icrinc.com