Regulators Clear Harland,
Clarke-American Deal
ATLANTA-Antitrust regulators with the U. S. Justice Department cleared the acquisition of John H. Harland Co., paving the way for corporate raider Ron Perelman to combine Harland's check printing operations with his Clarke American unit to create the nation's number-one check printer. The ruling comes a week after the $1.7-billion deal was approved by Harland shareholders. Under the deal, Harland shareholders will be paid $52.75 a share in cash by M&F Worldwide, the holding company controlled by Perelman's MacAndrews and Forbes. The Harland deal comes just two years after Harland acquired Liberty, one of the top four check printers, and now makes the combined entities under the Perelman umbrella bigger than the long-time leader, Deluxe Corp. The deal is expected to close in the second quarter.
Lending Slows, Saving
Up At CUs During Feb.
WASHINGTON-Credit union lending slowed during February while savings increased, in line with typically happens during the first part of the year, according to analysis released last week by CUNA. The result: the loan-to-share ratio average declined to 81.3% from 83% in January. While mortgages showed a tiny increase, other types of loans declined, including unsecured personal loans (down 1.5%), credit cards (down 1.1%), and new and used auto loans (down 0.6%). Savings were up during February, with share draft balances increasing 4.8% and MMAs (up 2%) and certificates (up 1.4%) leading the way. Regular shares, however, declined 2.2%.
Mistake Cancels Members' Cards
TUCSON, Ariz.-About 1,300 members of Pima FCU were greeted with unpleasant news over a weekend after the credit union accidentally changed the expiration dates on their credit cards. Instead of having its processing system reissue and update cards that expired at the end of March, it did so with April cards, which are supposed to be good through the end of the month. This had cards expiring a month early. The snafu was fixed by Monday afternoon.
MATCU Pays $2.5M Bonus
MEMPHIS-Memphis Area Teachers Credit Union has paid a $2.5 million special dividend to members, the first in its 50-year history. MATCU said it earned $3.95 million during 2006, pushing capital to nearly 14%. It has opted to return some funds to members. The 14,832 members with loans received a 12% rebate on interest paid, an average of $84 each. The 25,612 members with savings were aid 41% of the interest earned, for an average bonus of $49 each.
Metavante In 'Sponsored Spin'
MILWAUKEE-Marshall & Ilsley is nearing a deal with private equity firm Warburg Pincus to spin-off its Metavante back-office services provider and take the unit public in a so-called 'sponsored spin'. Under the deal, Marshall & Ilsley, the regional bank holding company, would spin off Metavante to its shareholders in a tax-free transaction, with Warburg Pincus paying cash for a minority state in the newly public firm. Metavante a offers check processing, electronic payments and ATM services through a conglomeration of services providers it accumulated over the past five years, including NYCE, Advanced Financial Services, NuEdge Systems, Response Data and Kirchman Corp. It is also owner of one of four competing electronic image/check networks, known as Endpoint Exchange.
CO-OP Extends Deal With EFD
ONTARIO, Calif.-CO-OP Financial Services announced yesterday it extended its long-term relationship with EFD, known until last month as eFunds Corp. The deal calls for EFD to processing transactions over the CO-OP network, including ATM access, ATM processing, debit/credit card services and shared branching. Terms of the deal were not disclosed.
Corrections & Clarifications
A report in the CU Journal Online and April 2 issue of CU Journal incorrectly reported that Gladstone Hall, a member of Continental FCU, had closed his CFCU membership. Mr. Hall remains a member of CFCU in good standing.
