ICBA Bancard, the payments services subsidiary of Independent Community Bankers of America (ICBA), announced that its credit card bank, TCM Bank, N.A., has acquired the agent bank portfolio of Fifth Third Bank. The purchase marks the largest credit card acquisition in TCM’s history, bringing its total assets to $292 million.
“Adding the Fifth Third business to our portfolio aligns perfectly with our growth strategy and further establishes TCM’s role as an ideal partner for financial institutions in the credit card industry,” TCM Bank President and CEO Damon Moorer said in a press release.
The newly acquired portfolio adds approximately $97.9 million in credit card receivables and 90,000 small business and consumer credit card accounts from 115 financial institutions. TCM will own the credit card assets of the new portfolio, but continue branding and marketing the cards under the names of the 115 other financial institutions.
“Financial institutions that have sold their portfolio to TCM Bank can rest easy knowing that unlike many other credit card issuers, TCM Bank does not offer competing financial services,” adds Joe Pierce, chairman of TCM Bank’s board of directors and CEO of Farmers State Bank in Lagrange, Ind. “It’s a win-win for everyone.”
Each agent bank has control of the payment channel and the customer relationship. Agent bank clients increase their profitability, achieve a competitive advantage in the marketplace, and receive additional fraud loss prevention tools and other services for their customers.
TCM Bank expects to complete the integration by the end of the year.