TNB Adds Two New Credit Unions to its Agent Card Portfolio

TNB Card Services continues to purchase credit union card portfolios, even in the face of declines in the reduced number of credit unions selling this year. TNB’s purchase of Oregon Pioneer Federal Credit Union and N.H. Community Federal Credit Union adds more than $2 million in receivables to the overall balances of TNB’s agent issuing portfolio.

Oregon Pioneer FCU of Portland, Oregon, and N. H. Community FCU of Claremont, New Hampshire, both took the opportunity to expand their card programs by selling their portfolios to TNB. Through TNB, the portfolios will be optimized, which offers members better rates and higher credit limits; many cardholders will be eligible for TNB’s Rewards2U® loyalty program; and the credit unions will have additional products, such as the MasterCard® Family AccountTM, to offer members.

“By selling our card portfolio to TNB, we have the best of both worlds,” said Mark Davis, CEO of Oregon Pioneer Federal Credit Union. “We get to retain our brand presence on the card, offer higher credit lines and an attractive rewards program, expand the product line, and share the profits, without having to take on risk or adding staff to manage the portfolio.”

While Oregon Pioneer FCU has strong card penetration among members, “we don’t have the bells and whistles to entice them to use the card,” added Davis. “Our current card product is not competitive, but with TNB we will offer a card that will give members a reason to use our card over others in their wallets.”

Davis said the 57-year-old credit union, which serves residents of Clackamas County, Oregon, will use proceeds from the sale of the card program to offer other loan products.

The ability to offset declining revenue from investments drove N.H. Community Federal Credit Union to sell its portfolio.

“Our card portfolio was very healthy, but selling it became a necessity to cover costs of other products and services that weren’t performing as well as they had in the past,” said James C. Neilsen IV, CEO of N.H. Community FCU. “Not only did we receive a generous premium, we now have variable rates, rewards, and an array of new product features we never expected to be able to offer our members.”

TNB’s service philosophy and product offerings made it easy for N. H. Community FCU to sell its portfolio to TNB. “From the very first meeting with TNB, we felt connected because of their approach to member service,” said Neilsen. “We pride ourselves on member service, so it was important for us to sell to an organization that would offer the same level of service our members expect to receive every time they conduct a transaction with us.”

In addition to 24/7 member service for the credit union’s cardholders, Oregon Pioneer and N.H. Community members will be part of regular marketing campaigns designed to attract new cardholders, as well as programs that will encourage card usage and retention.

Oregon Pioneer and N.H. Community will also have the opportunity to participate in regular in-branch promotions and contests offered through TNB.

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 550 financial institutions of all sizes and managing more than 2 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 or call Mark Fenner at 1-800-422-0733 ext. 6655. TNB’s credit cards are issued by Town North Bank Nevada, N.A.