TNB Purchases $15 Million Card Portfolio from Credit Union

TNB Card Services has acquired the credit card portfolio from Columbus, Ohio-based CME Federal Credit Union, in a purchase that encompasses 5,500 cards and more than $15 million in balances.

The portfolio purchase was the first for TNB in 2007, and follows a very active 2006, in which the credit union-owned electronic payments services company purchased 21 portfolios. TNB has bought more than 100 credit union card portfolios since launching its agent issuing program in 2002. Last month the company announced a $60 million infusion of capital for its parent company, Town North Bank, N.A.

CME Federal Credit Union, with $165 million in assets, selected TNB following discussions with a number of issuers interested in its card portfolio. The credit union chose TNB for three reasons: the favorable premium it offered, its credit union ownership, and its partnership approach to working with the credit unions whose portfolios it acquires. 

“CME FCU has a strong and loyal cardholder base, but the card program had seen minimal growth in the last few years,” said Jay Kurian, first senior vice president of TNB Card Services. “They realized they had to make a major change or a significant investment in order to revitalize the portfolio and avoid losing cardholders. By partnering with TNB, CME FCU is assured their card program will grow and remain part of the credit union movement.”

“Even though we no longer own the portfolio, the ownership change will be transparent to our members,” said Jim Riederer, president and CEO of CME FCU. “The card will continue to carry our brand, yet it will have a higher value to our membership because of TNB’s rates, product offering, and commitment to client service.”

CME Federal Credit Union, originally chartered in 1935, serves Franklin County, in central Ohio. The credit union has more than 25,000 members and four branches.