Search:

Town North Bank Nevada Selling Agent Issuing Portfolio
to Elan Financial Services

 

DALLAS and MINNEAPOLIS, May 12, 2009 – Elan Financial Services (Elan) and Town North Bank N.A. (TNB), parent company of Town North Bank Nevada N.A., announced that Elan Financial Services is acquiring the Town North Bank Nevada agent credit card issuing assets, subject to regulatory approval. The terms of the transaction were not disclosed.

While TNB is selling the agent financial institution assets, they remain committed to focusing on their core business of helping credit unions manage and grow their card programs through their card processing operation, TNB Card Services.  Elan will become the new issuing partner to the 168 credit unions representing TNB’s former agent issuing partnerships.

Elan is the nation’s leading provider of complete outsourced solutions, focused on payments and ATM and debit card processing for financial institutions. Elan has partnered with credit unions for nearly 40 years and has agent issuing relationships with more than 350 credit unions. The agreement with TNB further solidifies Elan’s position as the leader in providing agent issuing solutions to credit unions. 

TNB has aggregated and successfully grown the agent issuing portfolio since 2002 by purchasing the portfolios of credit unions and managing those portfolios on the credit unions’ behalf.

The reason for the sale, explained John C. Reap, president and CEO of Town North Bank, is to reduce assets and generate capital in a move to offset losses from the bank’s investment portfolio in 2008.

"As everyone in the financial industry is painfully aware, 2008 was a challenging year. The damage done to our own investment portfolio has compelled us to make this strategic decision," Reap said.

As a card issuing partner, Elan offers credit unions the behind-the-scenes support and structure for credit unions to offer a robust credit card program to their members. Elan also focuses on offering a robust rewards program, including cash rebates, travel, and merchandise, allowing credit unions to better compete with the largest financial institutions.

"Our success with credit unions is a direct result of our commitment to providing products and services that are tailored to the needs of our credit union clients and their members," said Deanna Corona, senior vice president and general manager of Elan. "We provide card programs that are competitive in the marketplace and easy for credit unions to brand and market as their own."

"While other organizations are retreating from the agent issuing market during this challenged economy, Elan continues to pursue partnerships with credit unions," said Jeff Chernivec, senior vice president of business development for Elan. "Elan provides credit unions with an established partner that is committed to continued investment in support of our current and future credit union partners".

"We have full confidence that the credit unions with whom we have worked as agent issuer will have a strong partner in Elan Financial Services," Reap added. "We are working closely with Elan and with our credit union agent clients to make this transition as smooth as possible, to assure a beneficial outcome for everyone concerned."

Full transition of the agent accounts from Town North Bank Nevada to Elan is expected to be complete in November.

TNB will continue to support its TNB Card Services division, a historical core part of its business, dating to 1976 when TNB Card Services was formed. Today the TNB Card Services group supports the debit and credit card processing needs of hundreds of credit unions throughout the United States. TNB Card Services is known for helping credit unions simplify card issuing through its robust processing platform, and its expertise and capabilities in portfolio consulting, risk management, card marketing and collections.

"TNB Card Services had its most successful year ever in adding new processing clients for both debit and credit card programs," Reap noted. "We have successfully grown this business by
leveraging our portfolio management expertise and we will continue to emphasize it, offering credit unions a competitive advantage when it comes to managing their credit and debit card programs. That includes a full range of associated services, such as innovative rewards programs, customized marketing assistance, and pricing and risk analysis services." 

TNB Card Services will provide interim servicing as the agent accounts are transitioned to Elan. Town North Bank Nevada will also continue to be the issuer for a multi-million-dollar credit card portfolio on behalf of Town North Bank’s customers. This will enable TNB Card Services to continue to share portfolio management expertise with its processing clients to help them successfully compete in today’s marketplace.

About Elan Financial Services
Elan Financial Services is one of the nation’s leading providers of complete outsourced solutions. Services include end-to-end credit card, debit, merchant and ATM programs, regional and surcharge-free networks, technology leasing, lending programs and correspondent services. Elan provides card management, fraud monitoring, reporting and marketing tools to more than 3,000 financial institutions with round-the-clock client support and a unique Service Guarantee. Elan provides complete technology solutions with a unique industry perspective. For more information, call 1-800-343-7064 or visit www.elanfinancialservices.com.

About Town North Bank
Town North Bank, founded in 1972, is one of the largest and most respected community banks in Dallas, with assets of $1.3 billion. It is known for its innovative products and personal service, offering a range of banking services, from commercial lending to financial planning. Town North Bank Nevada is a wholly owned operating unit of the bank, providing agent issuing credit card services for the credit union industry and the bank’s customers. For more information about Town North Bank and Town North Bank Nevada, visit www.townnorthbank.com, or call 877-866-2265. TNB Card Services provides electronic payments processing for credit unions nationwide. Serving more than 550 financial institutions of all sizes and managing more than 2 million cards, TNB Card Services enables credit unions to enhance member loyalty through credit union-branded card products. For more information about TNB Card Services, go to www.tnbcard.com.