Bank sells 'agent bank' credit card portfolio
A bank with a major presence in the region has sold its “agent bank” credit card portfolio.
ICBA Bancard, the payments services subsidiary of the nonprofit Independent Community Bankers of America, or ICBA, said today that its credit card bank, TCM Bank, N.A., has acquired the agent bank portfolio of Cincinnati-based Fifth Third Bank.
An agent bank is a bank that acts on behalf of another bank, according to Investopedia.com.
The deal involves about $97.9 million in credit card receivables and 90,000 small business and consumer credit card accounts from 115 financial institutions.
The acquisition brings TCM Bank’s total assets to $292 million.
TCM Bank expects to integrate the portfolio by the end of the year.
The move, which TCM said is the largest credit card acquisition in its history, “further establishes” it as a financial partner for credit card companies, TCM Bank President and CEO Damon Moorer said.
TCM said it will continue to brand and market its newly purchased credit card assets under the names of the 115 issuing institutions.