New Jersey-based FAA Eastern Region Federal Credit Union has sold its $16 million credit card portfolio to TNB Card Services in a transaction that adds more than 6,000 card accounts to TNB’s portfolio.
The acquisition of the portfolio is TNB’s third major purchase of 2007. The company owns more than 100 credit union card portfolios, the largest ownership of credit union card accounts by a credit union owned entity.
FAA Eastern Region Federal Credit Union, based in Clark, New Jersey, evaluated TNB along with a number of other national issuers before making its decision to sell the credit card program.
“We were impressed with TNB’s approach and understanding of the credit union system, as well as their experience and knowledge of the credit card market,” said Paul Perez, vice president of lending for FAA Eastern Region Federal Credit Union. “We sold our portfolio in order to grow it. With TNB we are confident that we will now be able to offer a stronger card product to our members.”
FAA Eastern Region Federal Credit Union, with $177 million in assets, serves more than 22,000 members through seven branches in four states Ã¢Â New Jersey, New York, Virginia, and New Hampshire Ã¢Â as well as online. As Perez explained, “We were originally looking to keep the portfolio, but we realized it made more sense to sell. Even if we added staff and invested, we wouldn’t have the knowledge that TNB has about growing the portfolio effectively.”
He added, “The fact that TNB is 100 percent owned by credit unions made the decision to partner with them all the more comfortable”
TNB’s issuing program and partnership approach will use the credit card product as a method to fuel growth of FAA’s membership. The partnership will increase member retention and provide revenue sharing opportunities for FAA.
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.