An analysis of call report data indicates that only two morecredit unions recently sold their credit card portfolios and entered into an agentissuing program with the purchasing banks, according to Tim Kolk, president of TRK Advisors, a CU card portfoliobrokerage and consultancy.
|Kolk reported that according to NCUA data, seven credit unionshad sold their credit card portfolios so far this year as of theend of the third quarter. The two sold in the third quarterrepresented balances of roughly $23 million, taking the year todate total balances sold to $85 million.
|This puts the likely total balances sold for this year at likelyover $100 million for the first time since 2009, but the marketremains a mere shadow of its heyday between 2004 and 2007, Kolksaid.
|“Sales volumes are expected to remain below the high water marksof 2004-2007 when over 60 portfolios per year were sold. It isuncertain if sales will rebound further from current levels,” Kolkwrote in his analysis.
|“Potential sellers continue to evaluate the strategy andbenefits of such sales, but the desire to generate loan volume andput to use excess liquidity lead many to determine that sale is notprudent at this time,” he wrote.
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