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Press Release - March 12, 2007

 

For Immediate Release

Contact:
Jan Dailey, SVP, Marketing Manager
972-391-6191, jan.dailey@tnbcard.com

Kristine Tanzillo, Dux Public Relations
972-889-9577, kristine@duxpr.com

 

TNB Card Services Purchases Card Programs
from Credit Unions in Colorado, New Mexico, Texas

DALLAS - March 12, 2007 - TNB Card Services has announced the purchase of credit card programs from three more credit unions, and it is currently converting those card portfolios to TNB's agent issuing program. The three portfolios were the last purchases TNB made in an active program-purchasing effort in 2006.

The December purchases were card programs from 1st University Credit Union of Waco, Texas; White Crown Federal Credit Union of Denver, Colorado; and High Plains Federal Credit Union of Clovis, New Mexico.

1st University Credit Union, the official credit union for Baylor University, sold its card portfolio so it could expand the program and offer every student a card, with varying interest rates based on credit stability. "We have been limited in what we could offer because of our restricted rates," said Gary Parker, CEO and president of 1st University CU. "Now that TNB owns the portfolio, we can offer a product that will appeal both to students and to our membership at large."

The credit union serves Baylor University staff, students, alumni, and retirees, as well as their family members and the community surrounding the school. The credit union has more than 3,500 members and assets of $13.5 million.

Denver-based White Crown Federal Credit Union sold its portfolio after managing two separate card programs resulting from its 2005 merger with another credit union. "After the merger was complete and we were able to assess both card portfolios, we decided to change course with the program," said Ed Leachman, vice president of operations for White Crown
Federal Credit Union. "We evaluated several issuers. TNB's premium was very competitive, but the real selling point was its partnership approach and credit union ownership."

The $45 million credit union and its 9,200 members will now have greater choices in terms of the credit union's credit card offerings. Cardholders will also be able to participate in a reward program, which the credit union couldn't offer on its own.
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The growing cost of bond insurance drove High Plains Federal Credit Union's decision to sell its card portfolio. TNB now offers the $37 million, 8,000-plus member credit union a variety of card products and services, along with a rate structure that better suits their members' creditworthiness and will reduce the credit union's risk while improving the soundness of the portfolio.

"We asked ourselves if we should put more money into the card program to enhance it, or sell it to someone that could grow it and enable us to offer other services for our members," said Marty Tressell, CEO and president of High Plains Federal Credit Union. "Now we not only have a strong card program, but we have funds to invest in other member services, such as home equity lending products and second mortgages."

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About TNB Card Services
TNB Card Services, owned and directed by credit unions since 1976, provides electronic payments processing, as well as an agent issuing solution for credit unions nationwide. Serving more than 450 financial institutions and managing more than 1.6 million cards, Dallas-based TNB enables credit unions to enhance member loyalty through credit union-branded card products. For more information about TNB, go to www.tnbcard.com or call Dusty Bowers at 800-422-0733, ext. 6555.