Green Dot Revenue, Earnings Beat Analyst Estimates | PaymentsSource

Andrew Harrer/Bloomberg

A company offering prepaid cards and bank holding company Green Dot reported second-quarter earnings per share and revenue that beat expectations, regulatory pressure from the Federal Reserve.

Non-GAAP earnings per share were 25 cents for the three months ended June 30, down from 37 cents in the same reporting period last year, according to the bank’s earnings supplement. Wall Street analysts had expected adjusted earnings of 23 cents per share. Revenue was $407.1 million, up 11% year over year and 5.5% above Wall Street’s average revenue forecast of $385.9 million.

The quarterly results come on the heels of a $44 million settlement with the Federal Reserve in July for alleged unfair and deceptive practices. The Austin, Texas-based fintech said in February that put aside $20 million under the Fed’s consent order. Many regulators began to penalize severely banking-fintech alliances this year.

According to its earnings supplement, Green Dot said the company had total assets of $5.5 billion, up nearly 15% year over year.

The company revised its full-year guidance upward, now expecting adjusted earnings at the low end of its guidance range of $1.45 to $1.59 per share.

Green Dot offers consumer and business accounts, such as debit, checking, credit, prepaid and payroll cards, money processing services, tax refunds, cash deposits and withdrawals, with a special focus on serving underbanked communities. It also operates a banking-as-a-service business.