First Bank & Trust in Brookings, S.D., has agreed to buy a prepaid card portfolio from Inter National Bank in McAllen, Texas.
First Bank did not disclose the price it will pay for the $21 million portfolio. The South Dakota Division of Banking has not begun its formal review of the application, said Bret Afdahl, a division director at the agency.
First Bank has provided processing and management services to Inter National Bank's prepaid card portfolio since September 2010, according to merger documents. The portfolio has about 156,000 active, reloadable cards that were marketed online and through third parties.
Dave Waligoske, First Bank's president and chief executive, declined to comment. Inter National Bank did not return calls seeking comment.
Fishback Financial, also in Brookings, S.D., owns the $864 million-asset First Bank. Grupo Financiero Banorte in Monterrey, Mexico, owns the $2.2 billion-asset Inter National Bank.
