Eight more CUs sell portfolios to InfiCorp

ATLANTA – Another eight credit unions have sold their credit card portfolios to InfiCorp. The following CUs sold to InfiCorp: the $440 million Silver State Schools Credit Union, Las Vegas; the $88 million First American Credit Union, Beloit, Wisconsin; the $42 million North County Credit Union, San Diego; the $255 million People’s Credit Union, Middletown, Rhode Island; the $87 million Rainbow Federal Credit Union, Lewiston, Maine; the $36 million Superior Iron Range Community Federal Credit Union, Negaunee, Michigan; the $361 million Webster First Federal Credit Union; and the $192 million Sharon CU, Massachusetts. All the portfolios are between $3-4 million, according to Keith Floen, managing director with InfiCorp, except for Silver State Schools which sold a $13.5 million card portfolio. “We sold because we offered a very basic credit card product and wanted to be able to offer more, a gold card product, a platinum product. Selling the portfolio was a way of expanding our members’ options,” said Bernard King, Silver State CU’s CFO. Scott Elliott, CFO for First American said that while the credit union had been happy with its processor, Certegy, they had felt that they didn’t have a credit card operation of sufficient size to compete with the changing credit card market. Floen said that InfiCorp’s average card portfolio purchase from credit unions is in the $10-15 million range, significantly bigger than most of these eight, but that all the credit unions were “growth oriented” and two in particular, Sharon and Webster, had substantial memberships with a good deal of growth opportunity for the card portfolio. Sharon has over 27,000 members and Webster First has over 37,000. Floen said the large number of credit unions signing was the result of a lot of “deals closing” at roughly the same time and attributed it as well to an increase in InfiCorp’s business over time.