Credit union owned Town North Bank got out of the card processing business to streamline its operations and restore some lost capital, according to its CEO Steve McDonald.
The bank sold its card processing operation to Fifth Third Processing Solutions on July 6. Neither organization would reveal the transaction price.
"We are managing the bank for capital adequacy and liquidity," McDonald said in a prepared statement about the sale. "The sale of the TNB Card Services division represents significant progress toward our plan to restore capital."
The bank's sale follows the sale of TNB Card Services' agent issued card portfolio to Elan Financial Services in May 2009. The need to bolster capital was also the reason cited for that sale.