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Dreher Tomkies LLP
Attorneys at Law
2750 Huntington Center
41 South High Street
Columbus, Ohio 43215
Telephone: 614-628-8000
Fax: 614-628-1600

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The Federal Reserve Board (FRB) has announced the execution of a Written Agreement with United National Corporation, First PREMIER Bank and PREMIER Bankcard, Inc., all of Sioux Falls, South Dakota. Under the agreement, the Bank and United may not, without prior written approval, take any action that would result in an increase in the asset size of the managed subprime credit card portfolio above the balance as of the close of business on January 9, 2003. For purposes of the agreement, “subprime” is defined as any loan to a borrower having a Fair, Isaac & Company score (FICO score) of less than 660 that is not fully secured by that borrower’s deposits at the Bank. To lift the restrictions, the Bank must submit a written plan to manage the growth of the subprime credit card portfolio. The agreement imposes requirements relating to growth, capital, reserves, funding, affiliate transactions, management information systems and strategic business planning, among other things. If the Bank and United fail to fully comply with the requirements, then they must submit an acceptable joint written plan to sell or liquidate the portfolio.

Mike Tomkies