TNB Purchased 21 Credit Union Card Portfolios in 2006

TNB ended 2006 with the acquisition of 21 credit card portfolios it purchased from credit unions across the U.S.

In the latest round of acquisitions, card portfolios were acquired from Northeast Panhandle Teachers Federal Credit Union of Perryton, Texas; Southern Lakes Credit Union of Kenosha, Wisconsin; American Federal Credit Union of Mission Hills, California; and Saugus Federal Credit Union of Saugus, Massachusetts.

Northeast Panhandle Teachers FCU, which serves 18 school districts in Texas, sold its card portfolio because of the increased cost of bond insurance. “With the increase in insurance, we would have to limit other programs and marketing of our card program if we maintained ownership,” said Rick Smith, president of Northeast Panhandle Teachers FCU. “By selling our card portfolio to TNB, we get to continue to offer a branded card product to our members, plus we will be able to offer a broader program with better rates.” 

Southern Lakes Credit Union of Kenosha, Wisconsin, serves approximately 11,500 members living and working in Racine, Kenosha, Walworth, Milwaukee, Waukesha, and Rock counties in Wisconsin and Lake and McHenry counties in Illinois. With close to $1 million in outstanding balances, Southern Lakes sold its portfolio in order to broaden its card program and eliminate the growing cost of bond insurance.

 “When we were told our bond insurance would increase, we began to seriously evaluate our card program and options. We realized our program was limited in terms of rates and marketing programs,” said Troy Perlberg, chief operating officer of Southern Lakes Credit Union. “By selling the portfolio to TNB, we’ve been able to expand the product and give our members a more robust card product. The cards we offer now through TNB are better than what we had before, and we are better positioned to compete against national financial institutions.”

Fifty-one-year-old, American Federal Credit Union of Mission Hills, California, sold its card portfolio in order to give its members a stronger card program with better rates and card offerings. With only a Classic Visa to offer members, it wasn’t able to attract a large number of cardholders.

“TNB showed us how we could offer better rates and different products without sacrificing our brand,” said Ron Gobble, president and CEO of American Federal Credit Union. “Now we have a stronger card program that will enable us to strengthen our membership base. We also received an infusion of funding that we can use to grow our membership.”

Saugus Federal Credit Union, chartered in 1938, also sold its card portfolio to TNB. Saugus serves people living and working in Suffolk, Essex, and Middlesex counties in Massachusetts. It has 7,945 members and assets of $67 million.

“TNB presented us with the opportunity to expand our credit card program to our members, reduce the risk of fraud and delinquency to the credit union, reallocate our resources internally, while maintaining the ability to gather fee income for new cards which we believe will be generated from this partnership,” said John Smolinsky, president/CEO of Saugus FCU.