SD-based First Premier Bank continues to be the fastest growing sub-prime specialist, in terms of accounts and cards. During the second quarter, First Premier added nearly 100,000 net accounts. According to CardData’s ‘2Q/99 Portfolio Survey’ , now underway, FPB’s accountbase has grown 73% over the past year, from 337,000 accounts for 2Q/98 to nearly 584,000 accounts for 2Q/99. The driving factor for First Premier’s portfolio has been its high fee/low credit limit, unsecured VISA and MasterCards. For example FPB offers a VISA card through FL-based Future Card, Inc. The card, widely marketed on the Internet, offers a minimum $250 credit limit in exchange for first year fees of $228. The first year fees include a $5 monthly fee, $98 processing fee and a $70 set-up fee. First Premier also markets sub-prime cards under the Centennial name which carry first year fees of $276 ($119 acceptance fee; $35 processing fee; $50 annual fee; and a $6 monthly fee). FPB derives little interest income in comparison to fee income as balances per active account now average $262.60, according to CardData’s 2Q/99 survey. The annual volume per active account now averages $354. Over the past twelve months FPB’s card receivables have increased about 72% while quarterly volume has surged by 63%. For current and historical data on more than 300 of the nation’s top card issuers visit CardData ([www.carddata.com]).
FIRST PREMIER BANK STATS
Receivables $118,579,998 $69,395,959
Q Volume $ 49,417,048 $29,710,340
Accounts 583,764 337,134
Actives 451,564 268,553
Cards 521,513 307,074
Source: CardData (www.carddata.com) 2Q/99