8-K 1 thirdqtr018k.txt WTNY THIRD QUARTER 20001 EARNINGS RELEASE SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of report (Date of earliest event reported): October 18, 2001 ------------------------------- WHITNEY HOLDING CORPORATION -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Louisiana 0-1026 72-6017893 -------------------------------------------------------------------------------- (State of (Commission File Number) (IRS Employer incorporation) Identification No.) 228 St. Charles Avenue, New Orleans, Louisiana 70130 -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (504) 586-7272 -------------------------------------------------------------------------------- (Registrant's telephone number,including area code) Item 5. Other Events On October 18, 2001, Whitney Holding Corporation issued a news release announcing its financial results for the quarter ended September 30, 2001 (the "News Release"). The News Release is attached as exhibit 99.1 to this report and incorporated herein by reference. Item 7. Financial Statement and Exhibits. (c) Exhibits 99.1 News Release SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. WHITNEY HOLDING CORPORATION By: /s/Thomas L. Callicutt, Jr. -------------------------------- Thomas L. Callicutt, Jr. Executive Vice President and Chief Financial Officer Date: October 18, 2001 --------------------------- EXHIBIT INDEX Exhibit Number Description ------- ----------- 99.1 News Release dated October 18, 2001. Exhibit 99.1 [GRAPHIC OMITTED] WHITNEY HOLDING CORPORATION 228 ST. CHARLES AVENUE NEW ORLEANS, LA 70130 NEWS RELEASE CONTACT: Thomas L. Callicutt, Jr. FOR IMMEDIATE RELEASE 504/552-4591 OCTOBER 18, 2001 WHITNEY REPORTS THIRD QUARTER 2001 EARNINGS New Orleans, Louisiana. Whitney Holding Corporation (NASDAQ-WTNY) earned $19.4 million in the third quarter of 2001, up from $18.9 million in the same period in 2000. Per share earnings were $.73 in the third quarter of 2001 and $2.21 through the first nine months of 2001. Including the impact of tax-effected merger-related items of $.08 per share in the year-to-date period, Whitney had net income of $2.13 per share. In 2000, Whitney earned $.74 per share in the third quarter and $2.17 per share through the first nine months. There were no merger-related items in either of these periods in 2000 or in the third quarter of 2001. Selected highlights from the third quarter's results follow: o Net interest income(TE) increased 5%, or $3.7 million, from the third quarter of 2000, and has improved 4%, or $2.6 million, from 2001's second quarter. In discussing its second quarter 2001 results, Whitney noted that it was moderately asset sensitive and that its net interest margin compressed in the second quarter with lower market interest rates. Although short- term rates continued to decline during the third quarter, Whitney's net interest margin of 4.56% was only 8 basis points below the year-earlier quarter and was up 13 basis points from 2001's second quarter. The margin received significant support in the most recent quarter from the maturity of certain interest-bearing term liabilities that had not yet been subject to repricing in the falling rate environment. Additionally, the mix of funding sources has been favorably impacted by an increase in overall liquidity during 2001. In the absence of strong loan demand, however, these funds have flowed into investment vehicles with a smaller spread to the cost of funds. - MORE - 2 o At the end of 2001's third quarter, Whitney entered into an alliance with a firm that specializes in processing credit card sale transactions for merchants. In forming this alliance, Whitney sold its existing merchant processing agreements to the specialist firm and recognized a gain of $3.6 million, while maintaining an interest in the ongoing net revenues generated through the alliance. This move will initially reduce annual noninterest income by an estimated $9.5 million and noninterest expense by $9.0 million. Over time, results are expected to fully benefit from the specialist's significant operating efficiencies, enhanced customer service and the potential for additional growth in the merchant customer base through focused sales management. o Excluding the gain noted above, noninterest income in the third quarter of 2001 was 15%, or $2.7 million, higher than in 2000's third quarter. Secondary mortgage market operations generated a $1.7 million increase in fee income to a level over four times that in the third quarter of 2000. Income from service charges on deposit accounts increased 14%, or $1.1 million. Noninterest income for the third quarter of 2000 included approximately $.5 million of net gains on dispositions of banking facilities and pre-1933 assets. Similar net gains were less than $.2 million in the current year's third quarter. o Noninterest expense in 2001's third quarter was up 5%, or $2.9 million, compared to the third quarter of 2000. Total personnel expense increased 8%, or $2.4 million, with the cost of retirement and medical benefit programs rising $1.1 million, and stock-based incentive compensation up $.5 million. Base salaries and regular incentive pay, including mortgage origination incentives, grew less than 4%, or approximately $.8 million, over the level in 2000's third quarter, including the impact of bank operations purchased in late 2000. o Whitney increased its provision for possible loan losses to $8.0 million in the third quarter of 2001, compared to $2.6 million in 2000's third quarter and $2.5 million in each of the first two quarters of the current year. During the most recent quarter, there was a $38 million increase in the total of loans internally classified as having above-normal credit risk. Total net charge- offs were $4.9 million in the third quarter of 2001, including a $3.7 million charge-off related to a loan that has been reported as nonperforming since early 2000, compared to a small net recovery in the year-earlier - MORE - 3 quarter. Nonperforming assets were $31.7 million at September 30, 2001, or .70% of loans plus foreclosed assets and surplus bank property, compared to $33.1 million, or .73%, at June 30, 2001 and $22.6 million, or .51%, at September 30, 2000. The reserve for possible loan losses was 1.45% of total loans at September 30, 2001, compared to 1.27% a year earlier. With the rate of portfolio lending activity slowing in 2001, there was a moderate increase of 4%, or $168 million, in average loans in the third quarter of 2001 compared to the same period in 2000. The loan portfolio has been relatively stable throughout 2001. Average deposits were up 13%, or $634 million, in the third quarter of 2001 compared to the year-earlier quarter. Deposit growth accelerated in 2001 with the competitive positioning of new money market deposit products and greater demand for the safety and liquidity of deposit products during a difficult period for the capital markets. As deposits have grown, the level of short-term borrowings has decreased. Third quarter 2001 borrowings were 37%, or $293 million, below the level in 2000's third quarter. At September 30, 2001, Whitney continued to show capital strength with a regulatory Tier 1 capital ratio of 12.15%, a total capital ratio of 13.40%, and a leverage ratio of 9.11%. During the fourth quarter of 2001, Whitney's presence in the Houston, Texas market will increase to nine locations with approximately $635 million in assets and $565 million of deposits. The anticipated all-cash purchase of Redstone Financial, Inc. and one of its subsidiary banks, Northwest Bank, N.A., will add approximately $165 million in total assets and $137 million in deposits in two banking locations in Houston's northwest quadrant. Northwest Bank will be merged into Whitney National Bank at acquisition. The expense of integrating Northwest's operations into the Whitney system are estimated to be $.7 million and will be recognized in the fourth quarter of 2001. Whitney Holding Corporation, through its banking subsidiary Whitney National Bank, serves the five-state Gulf Coast region stretching from Houston, Texas; across southern Louisiana and the coastal region of Mississippi; to central and south Alabama; and into the panhandle of Florida. - MORE - 4 ----- This news release contains statements that are not historical facts and are forward-looking statements within the meaning of and pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements include, but may not be limited to, projections of initial future reductions in operating income associated with Whitney's newly-formed alliance to provide credit card sale processing services to its merchant customers, and comments about possible future benefits to be derived from this alliance. It is important to note that Whitney's actual results may differ materially from those projected and that future benefits may not be realized as anticipated. Factors that could affect actual results and potential benefits include, among others, trends in credit card sale activity in Whitney's market area and the success of ongoing customer development and retention efforts by the alliance. Other important factors that could affect actual future results are also described in Whitney's filings with the Securities and Exchange Commission. Whitney undertakes no obligation to update or revise any of the information in this news release, whether as result of new information, future events or developments, or for any other reason. -----
5 WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ------------------------------------------------------------------------------------------------------------------------------------ FINANCIAL HIGHLIGHTS ------------------------------------------------------------------------------------------------------------------------------------ Third Third Nine Months Ended Quarter Quarter September 30 (dollars in thousands, except per share data) 2001 2000 2001 2000 ------------------------------------------------------------------------------------------------- -------------------------------- INCOME DATA Net interest income $ 70,939 $ 67,114 $ 207,144 $ 198,693 Net interest income (tax-equivalent) 72,258 68,563 211,217 203,349 Provision for possible loan losses 8,000 2,598 13,000 7,792 Noninterest income (excluding securities transactions and merger-related items) 25,002 18,703 69,675 54,607 Securities transactions - ( 13 ) 69 - Noninterest expense (excluding merger-related items) 58,866 55,929 176,922 165,072 Merger-related items (net expense) - - 4,451 - Net income 19,356 18,898 56,024 55,417 Earnings before tax-effected merger-related items 19,356 18,898 58,133 55,417 ------------------------------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------------------------------- -------------------------------- AVERAGE BALANCE SHEET DATA Loans $ 4,488,933 $ 4,320,926 $ 4,507,767 $ 4,143,013 Investment in securities 1,548,679 1,501,931 1,482,414 1,477,956 Earning assets 6,306,997 5,888,185 6,235,876 5,684,875 Total assets 6,825,004 6,397,590 6,763,101 6,192,608 Deposits 5,548,850 4,914,591 5,488,533 4,871,390 Shareholders' equity 702,134 623,932 688,755 613,144 ------------------------------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------------------------------- -------------------------------- PER SHARE DATA Basic $ .73 $ .74 $ 2.13 $ 2.17 Basic, before tax-effected merger-related items .73 .74 2.21 2.17 Diluted .72 .74 2.11 2.17 Diluted, before tax-effected merger-related items .72 .74 2.19 2.17 Cash dividends per share .38 .36 1.14 1.08 Book value per share, end of period $ 27.18 $ 24.64 $ 27.18 $ 24.64 Trading data High closing price $ 48.84 $ 37.19 $ 48.84 $ 39.13 Low closing price 40.26 33.38 36.00 31.50 End-of-period closing price 43.00 36.31 43.00 36.31 Trading volume 2,153,501 1,306,004 7,184,988 5,153,010 ------------------------------------------------------------------------------------------------- -------------------------------- ------------------------------------------------------------------------------------------------- -------------------------------- RATIOS Return on average assets 1.13 % 1.18 % 1.11 % 1.20 % Return on average assets before tax-effected merger-related items 1.13 1.18 1.15 1.20 Return on average shareholders' equity 10.94 12.05 10.88 12.07 Return on average shareholders' equity before tax-effected merger-related items 10.94 12.05 11.28 12.07 Net interest margin 4.56 4.64 4.52 4.77 Dividend payout ratio 51.83 48.15 53.95 48.82 Average loans as a percentage of average deposits 80.90 87.92 82.13 85.05 Efficiency ratio, before merger-related items 60.52 64.09 62.99 63.99 Noninterest income as a percentage of total revenue (excluding securities transactions and merger-related items) 25.71 21.43 24.80 21.17 Reserve for possible loan losses as a percentage of loans, at end of period 1.45 1.27 1.45 1.27 Nonperforming assets as a percentage of loans plus foreclosed assets and surplus property, at end of period .70 .51 .70 .51 Average shareholders' equity as a percentage of average total assets 10.29 9.75 10.18 9.90 Leverage ratio, at end of period 9.11 8.82 9.11 8.82 ------------------------------------------------------------------------------------------------- -------------------------------- Note: Prior period information has been restated to give effect to mergers accounted for as poolings of interests. - MORE -
6 WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ------------------------------------------------------------------------------------------------------------------------------------ FINANCIAL HIGHLIGHTS (continued) ------------------------------------------------------------------------------------------------------------------------------------ Third Third Nine Months Ended Quarter Quarter September 30 (dollars in thousands, except per share data) 2001 2000 2001 2000 ------------------------------------------------------- ------------------------------------ ------------------------------------ OTHER PERFORMANCE MEASURES Earnings before tax-effected merger-related items $ 19,356 $ 18,898 $ 58,133 $ 55,417 Purchased intangibles amortization, net of tax 1,402 1,192 4,209 3,216 ------------------------------------ ------------------------------------ Earnings before tax-effected merger-related items and purchased intangibles amortization $ 20,758 $ 20,090 $ 62,342 $ 58,633 ------------------------------------ ------------------------------------ Earnings per share before tax-effected merger-related items and purchased intangible amortization: Basic $ .79 $ .79 $ 2.37 $ 2.30 Diluted .78 .78 2.35 2.29 Ratios before tax-effected merger-related items and purchased intangibles amortization and balances: Return on average assets 1.22 % 1.26 % 1.25 % 1.28 % Return on average shareholders' equity 11.73 12.81 12.10 12.77 Efficiency ratio 58.66 62.29 61.04 62.33 ------------------------------------------------------- ------------------------------------ ------------------------------------ Note: Prior period information has been restated to give effect to mergers accounted for as poolings of interests. - MORE -
7 WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ------------------------------------------------------------------------------------------------------------------------------ DAILY AVERAGE CONSOLIDATED BALANCE SHEETS ------------------------------------------------------------------------------------------------------------------------------ Third Third Nine Months Ended Quarter Quarter September 30 (dollars in thousands) 2001 2000 2001 2000 ------------------------------------------------------------------------------------------- ------------------------------- ASSETS ------------------------------------------------------------- EARNING ASSETS Loans $ 4,488,933 $ 4,320,926 $ 4,507,767 $ 4,143,013 Investment in securities Securities available for sale 1,283,068 506,805 1,160,978 441,162 Securities held to maturity 265,611 995,126 321,436 1,036,794 ------------------------------ ------------------------------- Total investment in securities 1,548,679 1,501,931 1,482,414 1,477,956 Federal funds sold and short-term investments 269,385 65,328 245,695 63,906 ------------------------------ ------------------------------- Total earning assets 6,306,997 5,888,185 6,235,876 5,684,875 ------------------------------------------------------------------------------------------- ------------------------------- NONEARNING ASSETS Accrued interest receivable 38,382 42,807 40,416 40,839 Intangible assets 82,470 74,239 84,258 67,360 Other assets 461,390 447,755 465,384 452,502 Reserve for possible loan losses (64,235) (55,396) (62,833) (52,968) ------------------------------------------------------------------------------------------- ------------------------------- Total assets $ 6,825,004 $ 6,397,590 $ 6,763,101 $ 6,192,608 ------------------------------------------------------------------------------------------- ------------------------------- LIABILITIES ------------------------------------------------------------- INTEREST-BEARING LIABILITIES Interest-bearing deposits NOW account deposits $ 563,182 $ 529,810 $ 580,769 $ 549,979 Money market investment deposits 1,111,291 821,607 1,016,814 815,763 Savings deposits 466,298 450,262 457,968 462,464 Other time deposits 1,108,811 1,011,575 1,131,956 962,873 Time deposits $100,000 and over 850,833 772,879 876,327 744,135 ------------------------------ ------------------------------- Total interest-bearing deposits 4,100,415 3,586,133 4,063,834 3,535,214 ------------------------------ ------------------------------- Short-term borrowings 503,607 796,798 514,664 651,627 ------------------------------ ------------------------------- Total interest-bearing liabilities 4,604,022 4,382,931 4,578,498 4,186,841 ------------------------------------------------------------------------------------------- ------------------------------- NONINTEREST-BEARING LIABILITIES Noninterest-bearing deposits 1,448,435 1,328,458 1,424,699 1,336,176 Accrued interest payable 25,030 21,012 27,403 18,984 Other liabilities 45,383 41,257 43,746 37,463 ------------------------------ ------------------------------- Total liabilities 6,122,870 5,773,658 6,074,346 5,579,464 ------------------------------------------------------------------------------------------- ------------------------------- SHAREHOLDERS' EQUITY 702,134 623,932 688,755 613,144 ------------------------------------------------------------------------------------------- ------------------------------- Total liabilities and shareholders' equity $ 6,825,004 $ 6,397,590 $ 6,763,101 $ 6,192,608 ------------------------------------------------------------------------------------------- ------------------------------- ------------------------------------------------------------------------------------------- ------------------------------- EARNING ASSETS LESS INTEREST-BEARING LIABILITIES $ 1,702,975 $ 1,505,254 $ 1,657,378 $ 1,498,034 ------------------------------------------------------------------------------------------- ------------------------------- Note: Prior period information has been restated to give effect to mergers accounted for as poolings of interests.
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8 ---------------------------------------------------------------------------------------------------------------------------- WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ---------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEETS ---------------------------------------------------------------------------------------------------------------------------- September 30 December 31 September 30 (dollars in thousands) 2001 2000 2000 ---------------------------------------------------------------------------------------------------------------------------- ASSETS ----------------------------------------------------------------------------- Cash and due from financial institutions $ 246,804 $ 273,121 $ 199,513 Investment in securities Securities available for sale 1,384,213 537,262 521,798 Securities held to maturity 260,165 924,927 981,066 ----------------------------------------------- Total investment in securities 1,644,378 1,462,189 1,502,864 Federal funds sold and short-term investments 207,518 15,270 89,720 Loans 4,509,222 4,601,492 4,402,860 Reserve for possible loan losses (65,351) (61,017) (56,082) ----------------------------------------------- Net loans 4,443,871 4,540,475 4,346,778 ----------------------------------------------- Bank premises and equipment 165,325 174,450 173,742 Accrued interest receivable 36,854 44,203 44,610 Intangible assets 81,561 87,017 73,546 Other assets 51,837 53,540 58,696 ---------------------------------------------------------------------------------------------------------------------------- Total assets $ 6,878,148 $ 6,650,265 $ 6,489,469 ---------------------------------------------------------------------------------------------------------------------------- LIABILITIES ----------------------------------------------------------------------------- Noninterest-bearing demand deposits $ 1,453,844 $ 1,473,432 $ 1,345,696 Interest-bearing deposits 4,112,348 3,859,042 3,624,180 ----------------------------------------------- Total deposits 5,566,192 5,332,474 4,969,876 ----------------------------------------------- Short-term borrowings 517,863 586,477 823,145 Accrued interest payable 19,871 23,492 20,495 Accounts payable and other accrued liabilities 56,654 42,058 46,154 ----------------------------------------------- Total liabilities 6,160,580 5,984,501 5,859,670 ---------------------------------------------------------------------------------------------------------------------------- SHAREHOLDERS' EQUITY ----------------------------------------------------------------------------- Common stock, no par value 2,800 2,800 2,800 Capital surplus 153,432 158,083 158,430 Retained earnings 547,017 521,220 513,193 Accumulated other comprehensive income 21,520 1,657 (2,628) Treasury stock at cost (833) (13,680) (36,896) Unearned restricted stock compensation (6,368) (4,316) (5,100) ----------------------------------------------- Total shareholders' equity 717,568 665,764 629,799 ---------------------------------------------------------------------------------------------------------------------------- Total liabilities and shareholders' equity $ 6,878,148 $ 6,650,265 $ 6,489,469 ---------------------------------------------------------------------------------------------------------------------------- Note: Prior period information has been restated to give effect to mergers accounted for as poolings of interests.
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9 ----------------------------------------------------------------------------------------------------------------------------- WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ----------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF INCOME ----------------------------------------------------------------------------------------------------------------------------- Third Third Nine Months Ended Quarter Quarter September 30 (dollars in thousands, except per share data) 2001 2000 2001 2000 --------------------------------------------------------------------------------------- ----------------------------------- INTEREST INCOME Interest and fees on loans $ 84,835 $ 93,732 $ 266,009 $ 262,039 Interest and dividends on investments 22,551 22,539 65,463 65,975 Interest on federal funds sold and short-term investments 2,406 1,140 7,769 2,948 --------------------------------------------------------------------------------------- ----------------------------------- Total interest income 109,792 117,411 339,241 330,962 --------------------------------------------------------------------------------------- ----------------------------------- INTEREST EXPENSE Interest on deposits 35,566 38,707 118,666 106,448 Interest on short-term borrowings 3,287 11,590 13,431 25,821 --------------------------------------------------------------------------------------- ----------------------------------- Total interest expense 38,853 50,297 132,097 132,269 --------------------------------------------------------------------------------------- ----------------------------------- NET INTEREST INCOME 70,939 67,114 207,144 198,693 PROVISION FOR POSSIBLE LOAN LOSSES 8,000 2,598 13,000 7,792 --------------------------------------------------------------------------------------- ----------------------------------- NET INTEREST INCOME AFTER PROVISION FOR POSSIBLE LOAN LOSSES 62,939 64,516 194,144 190,901 --------------------------------------------------------------------------------------- ----------------------------------- NONINTEREST INCOME Service charges on deposit accounts 8,763 7,705 25,556 22,525 Credit card income 3,981 3,781 12,021 11,455 Trust service fees 2,403 2,342 7,172 6,783 Other noninterest income 9,855 4,875 26,013 13,844 Securities transactions - (13) 69 - --------------------------------------------------------------------------------------- ----------------------------------- Total noninterest income 25,002 18,690 70,831 54,607 --------------------------------------------------------------------------------------- ----------------------------------- NONINTEREST EXPENSE Employee compensation 25,805 24,599 78,570 70,998 Employee benefits 4,687 3,514 14,220 12,159 ----------------------------------- ----------------------------------- Total personnel expense 30,492 28,113 92,790 83,157 Equipment and data processing expense 5,331 5,688 17,737 17,328 Net occupancy expense 5,075 4,826 15,312 14,187 Credit card processing services 2,447 2,467 7,579 7,824 Telecommunication and postage 2,181 2,177 6,476 6,398 Legal and professional fees 1,674 1,880 6,441 4,337 Amortization of intangibles 1,818 1,568 5,456 4,296 Ad valorem taxes 1,739 1,683 5,312 5,064 Other noninterest expense 8,109 7,527 25,357 22,481 --------------------------------------------------------------------------------------- ----------------------------------- Total noninterest expense 58,866 55,929 182,460 165,072 --------------------------------------------------------------------------------------- ----------------------------------- INCOME BEFORE INCOME TAXES 29,075 27,277 82,515 80,436 INCOME TAX EXPENSE 9,719 8,379 26,491 25,019 --------------------------------------------------------------------------------------- ----------------------------------- NET INCOME $ 19,356 $ 18,898 $ 56,024 $ 55,417 --------------------------------------------------------------------------------------- ----------------------------------- --------------------------------------------------------------------------------------- ----------------------------------- EARNINGS PER SHARE Basic $ .73 $ .74 $ 2.13 $ 2.17 Diluted .72 .74 2.11 2.17 --------------------------------------------------------------------------------------- ----------------------------------- --------------------------------------------------------------------------------------- ----------------------------------- WEIGHTED-AVERAGE SHARES OUTSTANDING Basic 26,417,525 25,585,403 26,338,982 25,524,656 Diluted 26,714,549 25,648,022 26,494,854 25,586,035 ----------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- ----------------------------------- CASH DIVIDENDS PER SHARE $ .38 $ .36 $ 1.14 $ 1.08 --------------------------------------------------------------------------------------- ----------------------------------- Note: Prior period information has been restated to give effect to mergers accounted for as poolings of interests.
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10 ---------------------------------------------------------------------------------------------------------------------------- WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ---------------------------------------------------------------------------------------------------------------------------- SUMMARY OF INTEREST RATES (TAX-EQUIVALENT)* ---------------------------------------------------------------------------------------------------------------------------- Third Second Third Nine Months Ended Quarter Quarter Quarter September 30 2001 2001 2000 2001 2000 ------------------------------------------------------------------------------------------------ ------------------------- EARNING ASSETS ---------------------------------------------------------- Loans** 7.53 % 7.84 % 8.65 % 7.92 % 8.47 % Investment in securities 6.08 6.17 6.33 6.17 6.31 Federal funds sold and short-term investments 3.54 4.39 6.94 4.23 6.16 -------------------------------------- ------------------------- Total interest-earning assets 7.00 % 7.26 % 8.04 % 7.36 % 7.88 % -------------------------------------- ------------------------- ------------------------------------------------------------------------------------------------ ------------------------- INTEREST-BEARING LIABILITIES ---------------------------------------------------------- Interest-bearing deposits NOW account deposits 1.30 % 1.32 % 1.50 % 1.39 % 1.48 % Money market investment deposits 2.71 3.23 4.24 3.24 4.01 Savings deposits 1.45 1.76 2.03 1.73 2.02 Other time deposits 5.18 5.68 5.52 5.58 5.18 Time deposits $100,000 and over 4.64 5.31 5.99 5.31 5.65 -------------------------------------- ------------------------- Total interest-bearing deposits 3.44 3.93 4.29 3.90 4.02 -------------------------------------- ------------------------- Short-term borrowings 2.59 3.25 5.79 3.49 5.29 -------------------------------------- ------------------------- Total interest-bearing liabilities 3.35 % 3.86 % 4.57 % 3.86 % 4.22 % -------------------------------------- ------------------------- ------------------------------------------------------------------------------------------------ ------------------------- NET INTEREST SPREAD (tax-equivalent) ---------------------------------------------------------- Yield on earning assets less cost of interest- bearing liabilities 3.65 % 3.40 % 3.47 % 3.50 % 3.66 % -------------------------------------- ------------------------- ------------------------------------------------------------------------------------------------ ------------------------- NET INTEREST MARGIN (tax-equivalent) ---------------------------------------------------------- Net interest income (tax-equivalent) as a percentage of average earning assets 4.56 % 4.43 % 4.64 % 4.52 % 4.77 % -------------------------------------- ------------------------- ------------------------------------------------------------------------------------------------ ------------------------- COST OF FUNDS -------------------------------------------------------------------- Interest expense as a percentage of average interest- bearing liabilities plus interest-free funds 2.44 % 2.83 % 3.40 % 2.84 % 3.11 % ---------------------------------------------------------------------------------------------------------------------------- Note: Prior period information has been restated to give effect to mergers accounted for as poolings of interests. * Based on a 35% tax rate. ** Net of unearned income, before deducting the reserve for possible loan losses and including loans accounted for on a nonaccrual basis.
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11 ----------------------------------------------------------------------------------------------------------------------------- WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ----------------------------------------------------------------------------------------------------------------------------- LOAN QUALITY ----------------------------------------------------------------------------------------------------------------------------- Third Third Nine Months Ended Quarter Quarter September 30 (dollars in thousands) 2001 2000 2001 2000 ----------------------------------------------------------------------------------------------------------------------------- RESERVE FOR POSSIBLE LOAN LOSSES ---------------------------------------------------------------- Reserve for possible loan losses at beginning of period $ 62,265 $ 53,170 $ 61,017 $ 47,543 Reserves acquired in bank purchase - - - 1,461 Reserves on loans transferred to held for sale - - (651) - Provision for possible loan losses 8,000 2,598 13,000 7,792 Loans charged off during period (6,571) (1,772) (12,856) (6,670) Recoveries on loans previously charged off 1,657 2,086 4,841 5,956 ------------------------------------------------------------- Net loans (charged off) recovered during period (4,914) 314 (8,015) (714) ------------------------------------------------------------- Reserve for possible loan losses at end of period $ 65,351 $ 56,082 $ 65,351 $ 56,082 ------------------------------------------------------------- Net annualized charge-offs (recoveries) as a percentage of average loans .44 % (.03)% .24 % .02 % Gross annualized charge-offs as a percentage of average loans .59 % .16 % .38 % .21 % Recoveries as a percentage of gross charge-offs 25.22 % 117.72 % 37.66 % 89.30 % Reserve for possible loan losses as a percentage of loans, at end of period 1.45 % 1.27 % 1.45 % 1.27 % ------------------------------------------------------------- ------------------------------------------------------------- September 30 June 30 December 31 September 30 2001 2001 2000 2000 ----------------------------------------------------------------------------------------------------------------------------- NONPERFORMING ASSETS ---------------------------------------------------------------- Loans accounted for on a nonaccrual basis $ 30,032 $ 31,655 $ 23,579 $ 20,879 Restructured loans 396 408 465 477 ------------------------------------------------------------- Total nonperforming loans 30,428 32,063 24,044 21,356 Foreclosed assets and surplus property 1,287 1,022 995 1,288 ------------------------------------------------------------- Total nonperforming assets $ 31,715 $ 33,085 $ 25,039 $ 22,644 ------------------------------------------------------------- Nonperforming assets as a percentage of loans plus foreclosed assets and surplus property, at end of period .70 % .73 % .54 % .51 % Reserve for possible loan losses as a percentage of nonaccruing loans, at end of period 217.60 % 196.70 % 258.78 % 268.60 % Reserve for possible loan losses as a percentage of nonperforming loans, at end of period 214.77 % 194.20 % 253.77 % 262.61 % Loans 90 days past due still accruing $ 8,512 $ 6,581 $ 4,343 $ 10,173 Loans 90 days past due still accruing as a percentage of loans, at end of period .19 % .15 % .09 % .23 % ----------------------------------------------------------------------------------------------------------------------------- Note: Prior period information has been restated to give effect to mergers accounted for as poolings of interests.
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