Wisconsin-based Fiserv EFT has renewed a joint marketing agreement with the Virginia Credit Union League for an additional three-year term to market Fiserv EFT’s ATM and network gateway services to its membership and will be joined by The District of Columbia Credit Union League. Both leagues will promote Fiserv EFT debit card services to their members. The Virginia Credit Union League represents 5 million members and combined assets in excess of $43 billion. The District of Columbia Credit Union League represents approximately 60 credit unions and 470,000 members with a combined $5 billion in assets. Fiserv Fiserv EFT operates more than 16,500 ATMs, owns the ACCEL/Exchange Network and reported $3.4 billion in processing for 2004.
A new report projects that personal bankruptcy rates in the U.S. will rise by 11.3% between 2004 and 2007. The study, by Global Insight, says annual bankruptcy filings in the U.S. will increase to more than 1.74 million in 2007. The economic research firm cites rising interest rates and inflation combined with slower income growth and housing appreciation as the primary culprits behind this alarming rise in bankruptcies. Global Insight predicts Nevada, Maryland, New Jersey, Virginia and Utah will experience the most significant increases in bankruptcy filings, driven by differences in regional economic growth and fluctuations in single-family home market values.
Columbus-based Huntington Bancshares will add 99 ATMs to Walgreens stores across Ohio, Michigan and Indiana, bringing Huntington’s total ATM coverage to over 800 machines. Huntington Bancshares Inc. is a $33 billion regional bank holding company with 300 regional offices in Indiana, Kentucky, Michigan, Ohio and West Virginia. Walgreen Co. is the nation’s largest drugstore chain with fiscal 2004 sales of $37.5 billion and 4,738 stores.
The cumulative total stockholder return value of First Data’s stock increased by 74% since December 1999, compared to a slight loss for companies in its peer group and by the “S&P 500 Index.” FDC’s Chairman and CEO, earned $5.37 million last year, compared to $4.81 million in 2003. Charles Fote also received $3.3 million in stock options for 2004. Scott Betts, President/Enterprise Payments, earned $1.12 million last year, a 47% gain over 2003. Betts also received $1.3 million in stock options. Michael D’Ambrose, EVP/HR, received $1.23 million for 2004, a 19% increase over the prior year. D’Ambrose also received $1.3 million on stock options. Christina Gold, President/Western Union Financial Services, earned $1.12 million in 2004, compared to $1.02 million for 2003. Gold also received $1.3 million in stock options. Pamela Patsley, President/First Data International, earned $2.3 million last year compared to $2.15 million in 2003. Patsley also received $1.3 million in stock options. First Data reported net income for full-year 2004 of $1.88 billion, compared to $1.41 billion for 2003. For complete details on First Data’s latest results, visit CardData ([www.carddata.com]). (CF Library 1/27/05)
The cumulative total stockholder return value of MasterCard’s stock has soared by 63% since March 2003, compared to a 47% gain for the “S&P Financial Index” and a 43% gain by the “S&P 500 Index.” In light of the performance, MasterCard paid its top executive nearly $9.3 million in total compensation last year. CEO Robert Selander receives a base pay of $800,000 annually but earned a $2.5 million bonus for 2004 compared to $1.9 million for 2003. Noah Hanft, General Counsel and Corporate Secretary, earned $1.9 million in 2004, compared to $1.45 million in 2003. Christopher Thom, Chief Risk Officer, received about $5 million compared to $4.3 million in 2003. However, two top executives received lower total pay last year. Alan Heuer, COO, received total compensation of about $5.3 million in 2004, down 31% from 2003. Jerry McElhatton, President of Global Technology and Operations, earned $4.0 million last year, a 37% drop from the prior year. McElhatton is in the process of retiring from MasterCard. MasterCard reported a profit for full-year 2004 of $238 million, compared to a net loss of $386 million for 2003. For complete details on MasterCard’s latest results, visit CardData ([www.carddata.com]). (CF Library 9/23/04; 2/7/05)
Charming Shoppes’ Spirit of America National Bank has closed a deal to acquire 1.8 million Catherines private label card accounts from Citigroup for $57 million. In 1998, Hurley State Bank, now Citibank USA, signed an agreement to run the Catherines store card program. Charming Shoppes purchased Catherines in 2000. On January 28, 2004, Catherines, Inc. exercised its rights to terminate the agreement and negotiate a definitive purchase agreement. On March 17th of this year, Spirit of America National Bank signed the purchase agreement. As of March 21st, the credit card accounts have been transferred and converted to Spirit of America National Bank’s processing system.
Cubic Transportation Systems has been awarded an $11.3 million contract from Philadephia’s Port Authority Transit Corporation (PATCO) for the design and integration of a contactless smart card-based automated fare collection system to link rail and parking services. The automated customer service features will include credit-debit payment, internet-based ticketing and the ability to automatically load value onto the card. Cubic Transportation Systems, Inc. is the world’s leading full-service solution provider of automated fare collection systems for public transportation in 40 markets worldwide.
American Express’ new contactless payments program received a big boost this week by signing the nation’s largest photographic chain and one of the fastest growing convenience store chains. The addition of Ritz Camera and Sheetz will add 1,500 locations for “ExpressPay.” In December, the CVS retail pharmacy chain inked a deal to make a full roll-out of “ExpressPay” to its entire fleet of more than 5,300 stores by mid-2005. Sheetz has already rolled out “ExpressPay” acceptance in all of its 305 c-stores nationwide. In addition, “ExpressPay” will be enabled at Sheetz gas pumps by June 1st. Ritz Camera Centers will install “ExpressPay” in each of its over 1,100 retail camera and photo stores and 114 Boater’s World Marine Centers locations nationwide, beginning with stores in New York and Phoenix. AmEx has been testing “ExpressPay” in Phoenix since 2002 and in New York since 2003. (CF Library 12/16/04)
Capital One’s charge-off and delinquency ratios headed down in February. Charge-offs dropped 13 basis points from the prior month and delinquency decreased 19 basis points from January. Compared to one year ago, charge-offs are down 79 bps and delinquency is down 49 bps. The downtick was helped by a $2.6 billion increase in total loans. For February, Cap One reported that managed charge-offs decreased to 3.96% in February, compared to 4.19% in January, and 4.75% one-year ago. In June 2003, Cap One’s managed charge-off ratio stood at 6.20%. Delinquency decreased to 3.65% for February, compared to 3.84% in January, 3.92% for December, 3.87% for November, 3.94% in October, and 3.90% for September. Delinquency one year ago stood at 4.14%. At the end of February, Capital One had $81.9 billion in global outstandings. At the end of the fourth quarter, U.S. card outstandings of $48.6 billion were up 5%, compared to one year ago, and to the previous quarter. For complete details on Capital One’s monthly metrics and 4Q/04 performance, visit CardData ([www.carddata.com]).
Capital One 2004-2005
Month Charge-offs Delinquency
Feb 04 4.75% 4.14%
Mar 04 4.74% 3.80%
Apr 04 4.70% 3.69%
May 04 4.40% 3.73%
Jun 04 4.17% 3.76%
Jul 04 4.10% 3.77%
Aug 04 3.87% 3.80%
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%
Source: CardData (www.carddata.com)
Capital One’s search for a bank is over as the nation’s fifth largest bank credit card issuer is acquiring New Orleans-based Hibernia, in a stock and cash deal valued at $5.3 billion. The transaction will give Cap One lower funding costs and access to the robust Texas banking market. The combined company will be one of the top 10 largest consumer lenders and one of the top 20 in terms of total deposits. Hibernia National Bank will become a subsidiary of Cap One and will change its name to Capital One National Bank. Herbert Boydstun will remain President and Chairman E.R. Campbell, will join Capital One’s Board of Directors. Capital One’s subsidiaries collectively had 48.6 million accounts and $79.9 billion in managed loans outstanding at the end of last year. Cap One’s market value is currently about $19 billion.
The Heart of America Foundation, through its “Books From The Heart” program, and Capital One have formed a three-year partnership to provide access to reading material for about 200,000 children through its Literacy Celebration. Thirty-seven percent of American fourth-graders read at or below basic levels and are functionally illiterate, according to the National Assessment of Educational Progress. Literacy Celebration will take place from March 1st through March 16th in several communities throughout the country. Books From The Heart(TM) is a national program of The Heart of America Foundation(R), a nonprofit humanitarian network located in Washington, D.C. This is the fifth year Capital One has been involved with Literacy Celebration and the third year it has joined with Heart of America. Over the past four years, Capital One has been responsible for placing nearly 350,000 books in the hands of almost 150,000 children. In addition, Capital One employees have spent more than 8,000 hours reading and distributing books to children. Headquartered in McLean, Virginia, Capital One, a Fortune 500 company, is one of the largest providers of MasterCard and Visa credit cards in the world.
New Hampshire-based RewardsNOW has named Gary Heatherington, former CEO at Cyota and seven-year veteran of MasterCard, as Chairman. Duane Kimball, president of RewardsNOW, said he looks for strong leadership from Heatherington as the company moves aggressively into loyalty program innovations. RewardsNOW is a premier provider of marketing services for the financial industry.