The overall health of the credit union is playing an increasingly important role in any potential card portfolio sales, according to brokers.
"A significant number of credit unions are evaluating their card portfolios with an eye toward potentially selling them," reported Tim Kolk, managing partner at Brookwood Capital headquartered in Peterborough, N.H. "But in many cases they find the seller evaluating whether they might be a candidate for merger or worse."
Frank Selker, president of Asset Exchange, another card brokerage and consultancy headquartered in Portland, Ore., agreed.
"Potential buyers are paying a lot more attention to the health of any possible credit union partners because, from their perspective, they aren't just buying the card account but also hoping to build on cardholder relationships with their credit unions. Those relationships will shift dramatically or even disappear if the credit unions have to merge with others.
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