Patriot National Bancorp in Stamford, Conn., has bought a portfolio of prepaid debit card deposits.
The $1 billion-asset company said in a press release Tuesday that it acquired the deposits from a “prominent national provider and processor of prepaid debit cards.” Patriot did not disclose the seller or the price it paid.
Patriot said it will be the depository and issuing bank payment partner for the debit cards. The company expects the amount of deposits to increase over time, which should decrease its funding costs.
“We’re pleased to have successfully completed the bank’s first, value-enhancing prepaid card transaction, which is a pivotal move towards the bank’s longer-term deposit gathering strategy and will increase the ... net interest margin,” Michael Carrazza, Patriot’s chairman, said in the release.
