Ohio-based Lorain National Bank has signed an agreement with Huntington National Bank that will enable LNB customers to have additional, surcharge-free access to 800 ATMs operated by Huntington throughout the Ohio, Indiana, Michigan, Kentucky and West Virginia region. Lorain National Bank operates its own ATM network at 24 locations in Lorain, Erie and Cuyahoga counties. Lorain National Bank is a wholly-owned subsidiary of LNB Bancorp, an $812.4 million financial holding company.
Maryland-based Provident Bank, with 265,000 debit cards and 180 ATMs, has renewed its relationship with First Data’s “STAR Network” for PIN-secured debit services. Provident Bank has been a member of the STAR Network since 1984 and also works with First Data Merchant Services for its merchant processing portfolio. First Data’s STAR Network offers PIN-secured debit acceptance at 1.7 million ATM and retail locations. Provident serves individuals and businesses in the Mid Atlantic area through a network of 149 offices with $6.6 billion in assets.
The Chase contactless push in the Mid-Atlantic region will be bolstered next month with the launch of the “Wawa Rewards VISA” card. The convenience store chain is one of the first companies in the nation to “blink”-enable its entire credit card program. Wawa will accept “blink” at all of its 540 stores in Delaware, Maryland, New Jersey, Pennsylvania and Virginia. The new card, to be launched in mid-November, will award four percent in rebates for every dollar spent on card purchases at Wawa and one percent in rebates for all other purchases. Also, during the first 90 days cardholders will earn 10% in rebates for every dollar spent at Wawa and two percent in rebates on all card purchases made elsewhere. Customers will also receive a coupon for a free “Shorti Hoagie” after the first purchase with their new card. In May, PA-based convenience store chain Sheetz, with 305 c-stores, became the first retailer to launch a cobranded contactless credit card with Chase. The “Sheetz MasterCard with blink” features the “Sheetz Rewards” program, and offers free Sheetz food, a 10% rebate on Sheetz purchases for the first 60 days and three percent thereafter. (CF Library 5/27/05)
Capital One’s managed delinquency ratio increased for the fifth consecutive month as charge-offs turned sharply north. For September, Cap One reported that managed charge-offs shot up by 85 basis points driven by the late surge in bankruptcy filings. Delinquency increased to 3.73% in September compared to 3.69% for August, and compared to 3.66% for July. Delinquency one-year ago stood at 3.90%. Charge-offs came in at 4.62% for September, compared to 3.77% in August and 4.02% in July. One-year ago charge-offs stood at 4.18%. In June 2003, Cap One’s managed charge-off ratio stood at 6.20%. At the end of September, Capital One had $84.8 billion in global outstandings. U.S. card outstandings of $46.3 billion were flat compared to one-year ago. For complete details on Capital One’s monthly metrics and 3Q/05 performance, visit CardData (www.carddata.com).
Month Charge-offs Delinquency
Sep 04 4.18% 3.90%
Oct 04 4.10% 3.94%
Nov 04 4.35% 3.87%
Dec 04 4.63% 3.92%
Jan 05 4.19% 3.84%
Feb 05 3.96% 3.65%
Mar 05 4.35% 3.45%
Apr 05 4.22% 3.37%
May 05 4.10% 3.43%
Jun 05 3.96% 3.49%
Jul 05 4.02% 3.66%
Aug 05 3.77% 3.69%
Sep 05 4.62% 3.73%
Source: CardData (www.carddata.com)
Capital One’s third quarter U.S. credit card profits increased 16% year-over-year and rose 11% sequentially. U.S. managed card outstandings declined about $100 million from the second quarter and were essentially flat with the year-ago quarter. Cap One says a $44 million charge related to the Gulf Coast hurricanes and a $75 million loss related to the recent surge in bankruptcy filings dampened the quarter. Overall, Cap One’s earnings of $491.1 million were flat compared to 3Q/04. U.S. card net income was $481.8 million, compared to $432.4 million in the prior quarter and $414.4 million for 3Q/04. U.S. managed card outstandings were $46.3 billion for 3Q/05 compared to $46.1 billion one-year ago and $46.4 billion in the previous quarter. The managed delinquency rate (30+ days) for U.S. credit cards was 3.86% for the third quarter, compared to 3.60% for 2Q/05, and 4.14% for the third quarter of 2004. The net charge-off rate for U.S. credit cards was 4.69% for the third quarter, compared to 4.90% for the second quarter, and 4.86% one-year ago. Total managed loans for 3Q/05 grew 12% year-on-year to $84.8 billion. Capital One and its subsidiaries collectively had 49.2 million accounts as of September 30th. The Company is currently in the process of a merger with Hibernia Corporation which is scheduled to close on November 16. For complete details on Capital One’s third quarter performance, visit CardData ([www.carddata.com]).
COF U.S. CARD NET INCOME
3Q/04: $414.4 million
4Q/04: $201.9 million
1Q/05: $458.2 million
2Q/05: $432.4 million
3Q/05: $481.8 million
Source: CardData (www.carddata.com)
The Small Business division of Capital One and Braun Research released a report that shows women entrepreneurs are not taking advantage of loans, credit lines and other common small business financing options and 65% don’t leverage online banking. More than 10 million companies in the United States are owned by women and those firms generate an estimated $2.5 trillion in sales each year. 41% of the women small business owners surveyed cited financial issues as the biggest hassle they face in building a successful company, noting the challenge of keeping up with day-to-day finances and getting the capital they need to grow their businesses. Despite these hurdles, nearly the same percentage of women (39.7%) reported that they are not taking advantage of available sources for small business financing.
Capital One will close its operations site in Boise, Idaho in mid-2006 eliminating most of its 290 positions by February. Impacted Capital One associates will receive extensive career transition services All full-time associates will be eligible for severance packages and will receive comprehensive outplacement and retraining assistance. Impacted associates may apply for positions at other Capital One locations. Capital One’s subsidiaries collectively had 48.9 million accounts and $83.0 billion in managed loans outstanding as of June 30, 2005.
Ohio-based Check$mart has agreed to install Q Comm’s “Q Xpress 200” POS terminal at 172 locations nationwide. Under the terms of the contact, Check$mart will be able to provide Q Comm’s suite of leading prepaid products to check cashing and payday loan customers, enhancing recurring customer traffic and adding value at the point of sale. Check$mart can also benefit from Q Comm’s online sales reporting tools, which provide employee-level sales reporting. Q Comm International is a prepaid transaction processor that electronically distributes prepaid products from service providers to the point of sale.
New Jersey-based ATM specialist NexTranGroup has opened regional offices in the Philadelphia and Washington, DC metropolitan areas and plans to open three more offices in Los Angeles, Honolulu and the Pacific Northwest. The new offices, in Blue Bell, Pa. and Annandale, Virginia will allow the company to work more closely and effectively with its existing product distributors. NexTran Industries is a full-service manufacturer and distributor of ATMs and cash dispensing machines.
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Fair Isaac has added two major providers of identity-validating data to its “Identity Clearinghouse.” TARGUSinfo and Qsent have agreed to provide information for use by Fair Isaac’s “Falcon ID” solution. “Falcon ID” includes “ID Clearinghouse” which accesses external data and validation services as required, and facilitates real-time sharing of critical information between companies in the same industry – and across different industries – to detect when an identity is compromised. In addition, “Falcon ID” is the only solution in the market that combines identity fraud detection with a configurable and Web-based case management system. “Falcon ID” is part of Fair Isaac’s “Falcon One” system.
RBS Lynk has signed Elite POS as the newest member of OneLynk Alliance. Elite POS is a leading provider of Aloha restaurant systems across the Eastern Kentucky, West Virginia, and Northwest Virginia that provides point-of-sale (POS) solutions to regional restaurant clients. RBS Lynk is the ninth-largest merchant acquirer in the U.S., the second-largest processor of ATMs in the U.S. and is a member of The Royal Bank of Scotland Group (RBS Group.