CU-Owned Town North Bank Raises New Capital
DALLAS – CU Bank Shares Inc., the credit union-owned parent of Town North Bank, announced yesterday it raised $60 million in new capital from a stock offering among its credit union stock holders. The new funds will go towards expanding the two main lines of business for the only credit union-owned bank, credit card issuing agreements with credit unions and commercial real estate development, according to Scott Wagner, executive vice president for TNB Card Services, the bank’s card issuing arm. TNB is one of two credit union-owned entities vying to acquire and manage credit union card portfolios, the other is the Wescom CU, which only recently entered the market. But Wagner insisted the boost in capital is not a response to the entry of the California credit union giant into the market, asserting that TNB had and has enough resources to compete. TNB manages 109 credit union portfolios it purchased since entering the market in 2002. TNB was acquired by credit unions in 1975 to ensure credit union access to the Federal Reserve payment system and is now owned by 36 Texas state chartered credit unions.