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AssetExchange Brokers Sale of Texans Credit Union’s $52 Million Credit Card Portfolio
PORTLAND , Ore., June 10, 2004 – AssetExchange, the leading independent credit card portfolio brokerage firm, brokered the sale of a $52 million credit card portfolio on behalf of the $1.3 billion Texans Credit Union, based in Richardson, TX.
AssetExchange brought competitive partnership offers from every leading credit card issuer that purchases credit union credit card assets. After reviewing five competitive offers, Texans CU chose to sell their portfolio to MBNA. MBNA will market credit cards to Texans CU’s field of membership and will issue cards under the Texans Credit Union brand. Texans received an undisclosed premium on the sale of their card assets, and will receive ongoing revenue sharing based on future portfolio performance.
“Our credit card portfolio made up just 6% of our total assets, yet accounted for more than a third of our losses,” said Kevin Stewart, Executive Vice President. “AssetExchange conducted a thorough assessment of our card program and helped us to evaluate our options. We considered keeping the program, but balances had been declining in recent years and the analysis revealed that it would be costly to reverse. AssetExchange presented side-by-side offers from every active buyer in the market and helped us weigh the strategic and financial implications of selling. As a result of the assistance we received from AssetExchange, I am confident we made the best decision, had access to the most competitive offers, and found the best partnership to suit our members’ needs”
“We are very pleased to have assisted Texans Credit Union throughout their credit card assessment and partnership search,” said AssetExchange CEO, William C. Koo. “Credit card issuers of all sizes are coming to realize that it can be very costly to compete in the credit card market, and that there are significant financial and strategic benefits of outsourcing. This is a win-win situation for Texans CU; they’ll still offer a Texans-branded card to their members, without the card-related risk, and will receive ongoing income based on the portfolio’s profitability.”
About AssetExchange
AssetExchange is a leading credit card consulting and brokerage firm for financial institutions. Services include credit card portfolio brokerage, performance assessments, market valuations, and best practices consulting. The AssetExchange brokerage process includes bids from all interested portfolio buyers, which increases competition for portfolios and ensures optimal pricing and partnership opportunities for portfolio sellers. For additional information, please visit www.AssetExchange.com or call (503) 220-0007.
About Texans Credit Union
Texans Credit Union was founded in 1953 originally to serve the employees of Texas Instruments. Formerly known as Texins Credit Union, the credit union has expanded its field of membership in recent years. To better reflect the diversity of its fields of membership, the credit union name was changed to Texans Credit Union in 1998.
Today, with over $1.3 billion in assets, Texans Credit Union serves nearly 158,000 members in various companies, professional groups, and communities.
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