For six years, Town North Bank in Dallas has been buying up credit card portfolios from credit unions, but now it is shedding this lucrative business to raise capital.

Unlike some other banks, the $1.3 billion-asset Town North is not having loan trouble. Instead, hefty impairment charges on its mortgage-backed securities portfolio during the past four quarters have thinned its capital cushion, and the prospect of more charges has left it with few options.

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