X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

DALLAS – Four CUs from Texas, Iowa and Idaho have sold their credit card portfolios to TNB Card Services, the card processing arm of credit union-owned Town North Bank. The credit unions have entered into an agent relationship with the bank as well. The four are the $33 million Best of Iowa Credit Union, headquartered in Hiawatha, Iowa (1,000 accounts, $2.1 million); the $55 million Advantage Plus FCU, headquartered in Pocatello, Idaho (835 accounts, $1.2 million); the $69 million Bluebonnet FCU, headquartered in Houston (2,100 accounts, $3.1 million) and the $55 million Texas FCU, headquartered in Dallas (820 accounts, $1.3 million). Initially reluctant to give up control of the portfolio, Best of Iowa reconsidered over time as delinquencies and bankruptcies reduced the portfolio’s profitability, explained Stan Younce, president and CEO. The credit union selected TNB as its portfolio buyer because it offered a fair price, won’t attempt to cross-sell competing products to Best of Iowa members, and because TNB is owned and directed by credit unions, Younce said. “TNB has good products and has shown itself to be easy to work with,” Younce said. “With them managing the portfolio, we can concentrate on other areas of lending. TNB will be out there promoting a card that is still offered under our name, and we continue to get royalties. All these things made the sale attractive.” The purchase of the four portfolios means TNB has purchased more than 55 credit union card portfolios since it started purchasing them in late 2002, the company said.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.