Fulton Financial Corporation has entered into a definitive agreement with US Bank National Association, doing business as Elan Financial Services, to enhance the credit card services it provides to the customers of its affiliate banks.
Under the provisions of the agreement, Fulton will sell its credit card portfolio, with a current outstanding balance of approximately $85 million, to Elan.
Under the terms of its agreement with Elan, Fulton will continue to sell and support credit card products and services through its affiliate bank branches and the credit cards will continue to be issued under the name of each of the corporation’s 10 banks.
The enhanced product menu will include both a cash-back rewards program as well as a card specifically designed for the student market. The agreement includes marketing support from Elan. Fulton expects the transaction to be completed in the second quarter of 2008.
Scott Smith, chairman, CEO and president of Fulton Financial Corporation, said: This arrangement will create value for our customers and our shareholders. For investors, the transaction will be accretive to earnings not only in the first year, but also in the future, with significant additional revenue being generated by our joint marketing initiatives.