TNB Card Services Buys Credit Card Program from Sterlent Credit Union of California

TNB Card Services has purchased the credit card portfolio of Pleasanton, California-based Sterlent Credit Union, and will operate the card programs through its agent issuer organization. This latest acquisition brings to nearly 70 the number of portfolios that TNB has bought since it began the agent card issuing program in late 2002.

“Sterlent was in the same position as so many credit unions, with a solid credit card program, but one that resisted growth despite their best efforts,” noted Jay Kurian, first senior vice president of TNB Card Services. “They realized that with TNB in charge of the program, their cardholder members would be well taken care of, and that Sterlent would be freed to focus on other loan products.”

Sterlent Credit Union serves Sacramento and nearly a dozen California communities in the San Francisco East Bay area from its base in Pleasanton, as well as from four other branches, and through the FSCC Shared Branch Network. Founded in 1936, it received its community charter in 2002, and currently has some 17,000 member households and $132 million in assets.

“Regardless of all attempts to build our credit card portfolio, with a competitive product, teaser rates, transfer bonus points and other promotions, the outstanding credit lines just wouldn’t budge,” said John Wagner, Sterlent president and CEO. “It was successful in terms of gross yields, but we decided that we could better use those portfolio dollars by reinvesting it into core loan products such as auto loans or home equity lines of credit.”

Sterlent had been a processing client of TNB Card Services for nearly four years, so when the decision was made to sell the portfolio, TNB was the leading candidate, although the credit union thoroughly checked out three other potential buyers before committing to TNB.

“We had a high level of confidence due to our processing relationship, but it was paramount that we obtain the best overall credit card package for our membership,” Wagner explained. “TNB made it clear they wanted our business from the outset. Our due diligence and analysis emphatically revealed that they were the leader in nearly every measured category. It has been a seamless transition with no surprises to the membership or Sterlent. They have been a pleasure to deal with.”