ICBA Bancard has bought an agent bank portfolio from Fifth Third Bancorp in Cincinnati that carries about $98 million in credit card receivables.
ICBA Bancard, the payments subsidiary of the Independent Community Bankers of America, did not disclose financial terms. The acquisition was made by ICBA Bancard's TCM Bank subsidiary, which plans to complete its integration of the portfolio by the end of this year. The deal would increase TCM's total assets to $292 million.
In addition to $97.9 million in receivables, the agent bank portfolio includes 90,000 small-business and consumer accounts from 115 different financial institutions. TCM Bank, in Tampa, Fla., will retain the names of those 115 financial institutions in its branding and marketing.
"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," Joe Pierce, chairman of TCM Bank, said in a Thursday news release. Pierce is also chief executive of the $605 million-asset Farmers State Bank in Lagrange, Ind.
ICBA Bancard did not identify the financial institutions associated with the accounts.