Green Dot Corp. announced yesterday that is has completed its acquisition of Bonneville Bancorp, of Provo, Utah, for $15.7 million in cash. The deal was almost two years in the making, largely due to waiting for regulatory approval.
Green Dot will contribute approximately $14 million in cash to the bank to provide an initial capital base for its expanded operations. Lewis Goodwin will serve as CEO of Green Dot Bank. Mr. Goodwin joined Green Dot in 2009 with more than 25 years experience in the banking industry. Previously he led the banking operations for Daimler Chrysler Financial Services.
Acquiring a bank gives Green Dot a high level of integration now that it owns its issuer. It will be interesting to see how Green Dot makes use of its banking powers and whether this will affect its relationship with its other issuers or just be considered part of doing business for all of them.