Credit unions which own the $955 million Town North Bank may face a call for additional capital to support it going forward, according to analysts asked to review the bank's financial reports.
After almost 35 years processing credit union credit card transactions, Town North Bank has sold off its last stake in card processing.
According to the FDIC, credit union owned Town North Bank had a tier one capital ratio of only 4.05% as of March 31, the last quarter before the bank sold its card processing division, TNB Card Services.
Town North Bank, a credit union-owned bank, has sold its card processing division to Fifth Third Card Processing.
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.