PETERBOROUGH, N.H. -
Total portfolios sold surpassed the previous high of 67 set in 2004, the company said, and balances sold exceeded $465 million with an average portfolio size of $6.7 million. Brookwood said there are currently 2,151 credit unions with portfolios of more than $1 million, with approximately 3% selling every year.
The largest portfolio transaction of 2006, that of Allegacy Federal Credit Union's $64-million portfolio, was the largest sale in at least five years and "may indicate a willingness among even the largest credit unions to evaluate the place of credit card portfolios within their entire strategic plan," the company said in its analysis.
"It's a time of high risk and uncertainty for credit card issuers across the country," said Brookwood Capital's Managing Partner, Timothy Kolk. "Data breaches are becoming commonplace, interchange rates are under pressure and the ability to find and retain profitable accounts is becoming more and more difficult."
Brookwood Capital specializes in assisting credit unions in the financial analysis and strategic review related to portfolio sales.
For info: www.brookwoodcapital.net.
NO LONGER IN THE CARDS
Year Portfolios Total Avg.
Sold Outst. Sale
2002 41 $285M $7.0M
2003 59 $419M $7.1M
2004 67 $459M $6.9M
2005 65 $481M $7.4M
2006 69 $465M $6.7M
Source: Brookwood Capital
