v3.26.1
Debt
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Debt Debt
Senior Unsecured Notes
In 2024 and 2025, we issued and sold senior unsecured notes (the "Notes") in an aggregate principal amount of $65 million. The Notes have a five-year term, maturing September 15, 2029. The principal amounts bear interest at a fixed rate of 8.75% per annum, payable semi-annually in arrears.
Prior to March 15, 2029, we may redeem at our option, the Notes in whole or in part at any time at a redemption price equal to 100% of the outstanding principal amount to be redeemed, together with accrued but unpaid interest thereon, plus a make-whole amount. On and after March 15, 2029, we may redeem the Notes at 100% of the principal amount, plus accrued and unpaid interest thereon.
The Notes are unsecured, senior obligations and are not guaranteed by any of our subsidiaries. The Notes are junior in right of payment to existing and future secured indebtedness. As of March 31, 2026, we were in compliance with all affirmative and negative covenants thereunder. The net proceeds of the offering were used to repay outstanding indebtedness under a previous revolving credit facility, and for general corporate purposes.
The following table provides the outstanding long-term debt balance, at amortized cost:
March 31, 2026December 31, 2025
(In thousands)
Senior unsecured notes$65,000 $65,000 
Less: Unamortized discount and issuance costs(1,360)(1,459)
Notes payable, net of unamortized discount and issuance costs$63,640 $63,541 
We incurred total cash interest expense on our debt of approximately $1.4 million and $1.2 million during the three months ended March 31, 2026 and 2025, respectively.
Note 9—Debt (continued)
FHLB Advances
Green Dot Bank has the ability to access various sources of funding, including advances from the Federal Home Loan Bank ("FHLB") and the Federal Reserve's discount window. Availability of these borrowings is subject to various factors, including maintaining eligibility requirements and the amount of pledged collateral. These sources may be used from time to time to support our short-term liquidity needs and lines of business. The $500 million in net borrowings outstanding with the FHLB as of March 31, 2026 was in support of our tax refund processing business. The entirety of the outstanding balance was repaid on April 1, 2026. Interest expense on FHLB borrowings during the three months ended March 31, 2026 and 2025 amounted to approximately $1.3 million and $1.0 million, respectively.
2025 Revolving Facility
In February 2025, we entered into a new revolving line of credit agreement with a financial institution up to a maximum principal amount of $20 million, subject to borrowing base limitations defined under the terms of the agreement. The line of credit matures in August 2026 and will bear interest at variable market rates, but subject to a minimum rate of 6.0% per annum. Interest payments are due monthly, and accrue based on the then-outstanding principal balance. We had no outstanding balances as of March 31, 2026 and December 31, 2025.