8-K 1 wtnyer2nd02.txt WHITNEY 2ND QUARTER 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): July 18, 2002 ------------------------------- 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 July 18, 2002, Whitney Holding Corporation issued a news release announcing its financial results for the quarter ended June 30, 2002 (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: July 18, 2002 --------------------------- EXHIBIT INDEX Exhibit Number Description ------- ----------- 99.1 News Release dated July 18, 2002. 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 JULY 18, 2002 WHITNEY REPORTS SECOND QUARTER 2002 EARNINGS New Orleans, Louisiana. Whitney Holding Corporation (NASDAQ-WTNY) earned $.60 per share, or $23.8 million, in the second quarter of 2002, a 28% increase over earnings, before tax-effected merger-related items, of $.47 per share, or $18.5 million, in the second quarter of 2001. Including the impact of merger-related items, second quarter 2001 net income was $.46 per share, or $18.1 million. For the six months ended June 30, 2002, earnings were $1.15 per share, or $45.9 million. This represents a 17% increase over six-month earnings of $.98 per share, or $38.8 million, in 2001, before merger-related items. 2001 earnings were $.93 per share, or $36.7 million, including tax-effected merger-related items. All share and per share information in this news release give effect to the three-for-two stock split that was effective April 9, 2002. New accounting standards issued in 2001 eliminated all goodwill amortization starting in 2002. The amortization of other intangible assets purchased in business combinations continues. Comparative performance measurements excluding the after-tax effect of the amortization of goodwill and other purchased intangibles are presented in the accompanying Financial Highlights table. Selected highlights from the second quarter's results follow: o Net interest income (TE) increased 10%, or $6.8 million, from the second quarter of 2001, on 3% growth in earning assets. Whitney's net interest margin (TE) increased to 4.74% in the second quarter of 2002, or 31 basis points above the year-earlier quarter. The interest cost of funding earning assets fell 162 basis points between these periods, reflecting both the steep decline in market rates in 2001 and favorable trends in the mix - MORE - 2 of funding sources from increased overall liquidity. Falling market rates and increased liquidity in a period of reduced loan demand also led to a lower overall earning asset yield, which was down 131 basis points in 2002's second quarter. The asset yield benefited from the maturity structure of the generally fixed rate investment portfolio and pricing discipline in the loan portfolio. o Noninterest income, excluding securities transactions and merger-related items, decreased 7% from the second quarter of 2001, reflecting the approximately $2.3 million impact of Whitney's sale of its agreements to process merchants' credit card transactions in 2001's third quarter. Adjusting for this impact and excluding net gains on dispositions of surplus banking property and grandfathered assets, noninterest income was 6%, or $1.1 million, higher than in the year-earlier quarter. Growth in business deposits helped generate a 7%, or $.6 million, increase in service charges from deposit accounts for the second quarter of 2002. Income from secondary mortgage market operations was up $.4 million, or 24% from the level in the second quarter of 2001. o Noninterest expense was down 4% from 2001's second quarter, excluding merger-related costs. Adjusting for an impact of approximately $2.1 million from the merchant business sale, noninterest expense would have been little changed. Total personnel expense was up 6%, or $1.9 million, from the second quarter of 2001, excluding $.8 million of merger-related costs in the year-earlier period. Base salaries and regular incentive pay increased a moderate 4% over the level in 2001's second quarter. Stock-based incentive compensation increased $.5 million, and the cost of retirement and medical benefit programs rose $.9 million when compared to the second quarter of 2001. Savings from systems integration activities and close control over capital expenditures helped reduce equipment and data processing expense by $.9 million in 2002's second quarter. The change in accounting for goodwill led to a $.4 million net decrease in amortization of purchased intangibles compared to the year-earlier quarter. o Whitney provided $2.5 million for loan losses in the second quarter of 2002, the same as in 2001's second quarter, but down from $3.0 million in the first quarter of 2002. Total net charge-offs were $2.5 million in the second quarter of 2002, compared to $3.0 million in 2002's first quarter and $2.1 million in the year-earlier quarter. Nonperforming assets totaled $40 million at June 30, 2002, or .93% of loans plus - MORE - 3 foreclosed assets and surplus bank property, down from $46 million, or 1.05%, at the end of 2002's first quarter, but up from $35 million, or .76%, at December 31, 2001 and $33 million, or .73%, a year earlier. The total of loans internally classified as having above-normal credit risk, decreased approximately $24 million from March 31, 2002 and are down $64 million from December 31, 2001 and $38 million from the level at the end of 2001's second quarter. The decrease from year-end 2001 reflected in part improved outlooks for two larger credits that had been downgraded during 2001 and included in the shared national credit review process by Federal banking regulators. The allowance for loan losses was 1.67% of total loans at June 30, 2002, compared to 1.64% at March 31, 2002 and 1.37% a year earlier. Whitney's ability to grow its loan portfolio has been restrained by several factors. The level of economic activity and uncertainty regarding future economic conditions have led to reduced loan demand, while the rate environment continues to present developers with favorable permanent financing opportunities and to entice home owners to refinance. Management has also maintained its decision to sell most new production of retail mortgage loans in the secondary market. Average loans in the second quarter of 2002 were 3%, or $146 million, lower than the second quarter of 2001. Average deposits were up 4%, or $209 million, in the second quarter of 2002 compared to the year-earlier quarter. Increased demand for the safety and liquidity of deposit products helped fuel accelerated growth throughout 2001, and this is still evident in the 12%, or $174 million, increase in noninterest-bearing demand deposits for 2002's second quarter. Additional growth in interest-bearing funds during 2002, however, has been limited by steadily declining renewal rates for time deposits and reduced yields on other deposit products. 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 may contain statements that are not historical facts and are "forward-looking statements" as that term is defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which Whitney makes in good faith, are based on numerous assumptions, certain of which we may refer to specifically in connection with a particular statement. Some of the more important assumptions include o expectations about overall economic strength and the performance of the economies in Whitney's market area, o expectations about the movement of interest rates, including actions that may be taken by the Federal Reserve Board in response to changing economic conditions, o reliance on existing or anticipated changes in laws and regulations affecting the activities of the banking industry and other financial service providers, and o expectations regarding the nature and level of competition, changes in customer behavior and preferences, and Whitney's ability to execute its plans to respond effectively. Because it is uncertain whether future conditions and events will confirm these assumptions, there is a risk that Whitney's future results will differ materially from what is stated in or implied by such forward-looking statements. Whitney cautions readers to consider this risk. Whitney undertakes no obligation to update or revise any of the information in this news release, whether as a result of new information, future events or developments, or for any other reason. - MORE -
5 ---------------------------------------------------------------------------------------------------------------------------------- WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ---------------------------------------------------------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS ---------------------------------------------------------------------------------------------------------------------------------- Second Second Six Months Ended Quarter Quarter June 30 (dollars in thousands, except per share data) 2002 2001 2002 2001 -------------------------------------------------------------- --------------------------- ----------------------------- INCOME DATA Net interest income $ 75,174 $ 68,266 $ 147,781 $ 136,205 Net interest income (tax-equivalent) 76,381 69,628 150,214 138,959 Provision for loan losses 2,500 2,500 5,500 5,000 Noninterest income (excluding securities transactions and merger-related items) 20,220 21,816 40,589 44,673 Securities transactions 426 32 426 69 Noninterest expense (excluding merger-related items) 57,773 60,094 114,750 118,056 Merger-related items (net expense) - 626 - 4,451 Net income 23,785 18,102 45,877 36,668 Earnings before tax-effected merger-related items 23,785 18,511 45,877 38,777 -------------------------------------------------------------- ------------------------------ -------------------------------- AVERAGE BALANCE SHEET DATA Loans $ 4,357,118 $ 4,503,302 $ 4,391,076 $ 4,517,339 Investment in securities 1,863,359 1,435,530 1,779,891 1,448,732 Earning assets 6,460,942 6,290,430 6,575,132 6,199,724 Total assets 6,986,870 6,813,065 7,114,101 6,731,636 Deposits 5,757,493 5,548,425 5,854,195 5,457,874 Shareholders' equity 745,352 689,272 738,275 681,954 -------------------------------------------------------------- ------------------------------ -------------------------------- PER SHARE DATA Basic $ .60 $ .46 $ 1.15 $ .93 Basic, before tax-effected merger-related items .60 .47 1.15 .98 Diluted .59 .46 1.14 .93 Diluted, before tax-effected merger-related items .59 .47 1.14 .98 Cash dividends per share .27 .25 .54 .51 Book value per share, end of period 18.97 17.46 18.97 17.46 Trading data High closing price 38.52 31.27 38.52 31.27 Low closing price 30.51 25.67 29.13 24.00 End-of-period closing price 30.74 31.27 30.74 31.27 Trading volume 8,115,882 4,097,419 11,073,984 7,547,232 -------------------------------------------------------------- ------------------------------ -------------------------------- RATIOS Return on average assets 1.37 % 1.07 % 1.30 % 1.10 % Return on average assets before tax-effected merger-related items 1.37 1.09 1.30 1.16 Return on average shareholders' equity 12.80 10.53 12.53 10.84 Return on average shareholders' equity before tax-effected merger-related items 12.80 10.77 12.53 11.47 Net interest margin 4.74 4.43 4.59 4.51 Dividend payout ratio 45.37 55.32 46.90 55.08 Average loans as a percentage of average deposits 75.68 81.16 75.01 82.77 Efficiency ratio, before merger-related items 59.81 65.72 60.14 64.29 Noninterest income as a percentage of total revenue (excluding securities transactions and merger-related items) 20.93 23.86 21.27 24.33 Allowance for loan losses as a percentage of loans, at end of period 1.67 1.37 1.67 1.37 Nonperforming assets as a percentage of loans plus foreclosed assets and surplus property, at end of period .93 .73 .93 .73 Average shareholders' equity as a percentage of average total assets 10.67 10.12 10.38 10.13 Leverage ratio, at end of period 9.27 8.92 9.27 8.92 -------------------------------------------------------------- ------------------------------ -------------------------------- Note: Share and per share data give effect to the 3-for-2 stock split effective April 9, 2002. -MORE-
6 ------------------------------------------------------------------------------------------------------------------------ WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ------------------------------------------------------------------------------------------------------------------------ FINANCIAL HIGHLIGHTS (continued) ------------------------------------------------------------------------------------------------------------------------ Second Second Six Months Ended Quarter Quarter June 30 (dollars in thousands, except per share data) 2002 2001 2002 2001 ---------------------------------------------------------- ----------------------------- ---------------------------- OTHER PERFORMANCE MEASURES Earnings before tax-effected merger-related items $ 23,785 $ 18,511 $ 45,877 $ 38,777 Goodwill amortization, net of tax - 806 - 1,615 ----------------------------- ---------------------------- Earnings before tax-effected merger-related items and goodwill amortization 23,785 19,317 45,877 40,392 Other purchased intangibles amortization, net of tax 953 596 1,906 1,192 ----------------------------- ---------------------------- Earnings before tax-effected merger-related items and total purchased intangibles amortization $ 24,738 $ 19,913 $ 47,783 $ 41,584 ----------------------------- ---------------------------- Earnings per share before tax-effected merger-related items and goodwill amortization: Basic $ .60 $ .49 $ 1.15 $ 1.02 Diluted .59 .49 1.14 1.02 Earnings per share before tax-effected merger-related items and total purchased intangibles amortization: Basic $ .62 $ .50 $ 1.20 $ 1.05 Diluted .62 .50 1.19 1.05 Ratios before tax-effected merger-related items and total purchased intangibles amortization and balances: Return on average assets 1.44 % 1.19 % 1.37 % 1.26 % Return on average shareholders' equity 13.31 11.59 13.05 12.30 Efficiency ratio 58.29 63.73 58.61 62.31 ---------------------------------------------------------- ----------------------------- ---------------------------- Note: Share and per share data give effect to the 3-for-2 stock split effective April 9, 2002. - MORE -
7 ----------------------------------------------------------------------------------------------------------------------------- WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ----------------------------------------------------------------------------------------------------------------------------- DAILY AVERAGE CONSOLIDATED BALANCE SHEETS ----------------------------------------------------------------------------------------------------------------------------- Second Second Six Months Ended Quarter Quarter June 30 (dollars in thousands) 2002 2001 2002 2001 ----------------------------------------------------------------------------------------- ------------------------------- ASSETS ---------------------------------------------------------- EARNING ASSETS Loans $ 4,357,118 $ 4,503,302 $ 4,391,076 $ 4,517,339 Investment in securities Securities available for sale 1,692,586 1,115,881 1,602,295 1,098,921 Securities held to maturity 170,773 319,649 177,596 349,811 ----------------------------- ------------------------------- Total investment in securities 1,863,359 1,435,530 1,779,891 1,448,732 Federal funds sold and short-term investments 240,465 351,598 404,165 233,653 ----------------------------- ------------------------------- Total earning assets 6,460,942 6,290,430 6,575,132 6,199,724 ----------------------------------------------------------------------------------------- ------------------------------- NONEARNING ASSETS Accrued interest receivable 33,566 39,773 33,875 41,451 Goodwill 69,164 54,698 69,011 55,152 Other intangible assets 32,453 29,573 33,196 30,016 Other assets 463,273 460,843 475,581 467,414 Allowance for loan losses (72,528) (62,252) (72,694) (62,121) ----------------------------------------------------------------------------------------- ------------------------------- Total assets $ 6,986,870 $ 6,813,065 $ 7,114,101 $ 6,731,636 ----------------------------------------------------------------------------------------- ------------------------------- LIABILITIES ---------------------------------------------------------- INTEREST-BEARING LIABILITIES Interest-bearing deposits NOW account deposits $ 653,014 $ 570,112 $ 735,101 $ 589,710 Money market investment deposits 1,332,376 1,043,498 1,315,363 968,793 Savings deposits 516,484 457,512 508,980 453,733 Other time deposits 933,329 1,144,672 957,430 1,143,718 Time deposits $100,000 and over 707,128 891,894 730,709 889,286 ------------------------------- ------------------------------- Total interest-bearing deposits 4,142,331 4,107,688 4,247,583 4,045,240 ------------------------------- ------------------------------- Short-term borrowings 422,461 502,884 458,870 520,284 ------------------------------- ------------------------------- Total interest-bearing liabilities 4,564,792 4,610,572 4,706,453 4,565,524 ----------------------------------------------------------------------------------------- ------------------------------- NONINTEREST-BEARING LIABILITIES Noninterest-bearing deposits 1,615,162 1,440,737 1,606,612 1,412,634 Accrued interest payable 13,562 29,576 14,309 28,609 Other liabilities 48,002 42,908 48,452 42,915 ------------------------------- ------------------------------- Total liabilities 6,241,518 6,123,793 6,375,826 6,049,682 ----------------------------------------------------------------------------------------- ------------------------------- SHAREHOLDERS' EQUITY 745,352 689,272 738,275 681,954 ----------------------------------------------------------------------------------------- ------------------------------- Total liabilities and shareholders' equity $ 6,986,870 $ 6,813,065 $ 7,114,101 $ 6,731,636 ----------------------------------------------------------------------------------------- ------------------------------- EARNING ASSETS LESS INTEREST-BEARING LIABILITIES $ 1,896,150 $ 1,679,858 $ 1,868,679 $ 1,634,200 ----------------------------------------------------------------------------------------- ------------------------------- - MORE -
8 ------------------------------------------------------------------------------------------------------------------ WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ------------------------------------------------------------------------------------------------------------------ CONSOLIDATED BALANCE SHEETS ------------------------------------------------------------------------------------------------------------------ June 30 December 31 June 30 (dollars in thousands) 2002 2001 2001 ------------------------------------------------------------------------------------------------------------------ ASSETS ----------------------------------------------------------------- Cash and due from financial institutions $ 225,461 $ 271,512 $ 235,614 Investment in securities Securities available for sale 1,705,832 1,440,527 1,199,126 Securities held to maturity 170,023 191,813 284,121 ------------------------------------------------- Total investment in securities 1,875,855 1,632,340 1,483,247 Federal funds sold and short-term investments 220,541 494,908 266,562 Loans 4,300,658 4,554,538 4,533,439 Allowance for loan losses (71,667) (71,633) (62,265) ------------------------------------------------- Net loans 4,228,991 4,482,905 4,471,174 ------------------------------------------------- Bank premises and equipment 158,814 167,419 168,400 Accrued interest receivable 32,551 32,461 38,381 Goodwill 69,164 68,952 54,245 Other intangible assets 31,730 34,653 29,133 Other assets 66,186 58,500 60,500 ------------------------------------------------------------------------------------------------------------------ Total assets $ 6,909,293 $ 7,243,650 $ 6,807,256 ------------------------------------------------------------------------------------------------------------------ LIABILITIES ----------------------------------------------------------------- Noninterest-bearing demand deposits $ 1,563,569 $ 1,634,258 $ 1,426,548 Interest-bearing deposits 4,070,188 4,315,902 4,094,817 ------------------------------------------------- Total deposits 5,633,757 5,950,160 5,521,365 ------------------------------------------------- Short-term borrowings 448,845 511,517 523,817 Accrued interest payable 10,997 14,946 26,771 Accounts payable and other accrued liabilities 57,161 49,139 44,952 ------------------------------------------------- Total liabilities 6,150,760 6,525,762 6,116,905 ------------------------------------------------------------------------------------------------------------------ SHAREHOLDERS' EQUITY ----------------------------------------------------------------- Common stock, no par value 2,800 2,800 2,800 Capital surplus 163,713 154,397 152,816 Retained earnings 580,601 556,241 537,693 Accumulated other comprehensive income 19,621 10,104 6,387 Treasury stock at cost - - (701) Unearned restricted stock compensation (8,202) (5,654) (8,644) ------------------------------------------------- Total shareholders' equity 758,533 717,888 690,351 ------------------------------------------------------------------------------------------------------------------ Total liabilities and shareholders' equity $ 6,909,293 $ 7,243,650 $ 6,807,256 ------------------------------------------------------------------------------------------------------------------ - MORE -
9 ------------------------------------------------------------------------------------------------------------------------------------ WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ------------------------------------------------------------------------------------------------------------------------------------ CONSOLIDATED STATEMENTS OF INCOME ------------------------------------------------------------------------------------------------------------------------------------ Second Second Six Months Ended Quarter Quarter June 30 (dollars in thousands, except per share data) 2002 2001 2002 2001 --------------------------------------------------------------------------------------------- ------------------------------------ INTEREST INCOME Interest and fees on loans $ 69,073 $ 87,679 $ 139,460 $ 181,174 Interest and dividends on investments 24,570 21,101 47,447 42,912 Interest on federal funds sold and short-term investments 1,031 3,848 3,450 5,363 --------------------------------------------------------------------------------------------- ------------------------------------ Total interest income 94,674 112,628 190,357 229,449 --------------------------------------------------------------------------------------------- ------------------------------------ INTEREST EXPENSE Interest on deposits 18,534 40,287 40,481 83,100 Interest on short-term borrowings 966 4,075 2,095 10,144 --------------------------------------------------------------------------------------------- ------------------------------------ Total interest expense 19,500 44,362 42,576 93,244 --------------------------------------------------------------------------------------------- ------------------------------------ NET INTEREST INCOME 75,174 68,266 147,781 136,205 PROVISION FOR LOAN LOSSES 2,500 2,500 5,500 5,000 --------------------------------------------------------------------------------------------- ------------------------------------ NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 72,674 65,766 142,281 131,205 --------------------------------------------------------------------------------------------- ------------------------------------ NONINTEREST INCOME Service charges on deposit accounts 9,598 8,972 19,143 16,793 Credit card income 2,071 4,114 3,927 8,040 Trust service fees 2,345 2,308 4,602 4,769 Secondary mortgage market operations 1,850 1,492 3,900 2,544 Other noninterest income 4,356 4,930 9,017 13,614 Securities transactions 426 32 426 69 --------------------------------------------------------------------------------------------- ------------------------------------ Total noninterest income 20,646 21,848 41,015 45,829 --------------------------------------------------------------------------------------------- ------------------------------------ NONINTEREST EXPENSE Employee compensation 26,451 26,399 52,157 52,765 Employee benefits 5,628 4,606 10,896 9,533 --------------------------------------------------------------------------------------------- ------------------------------------ Total personnel expense 32,079 31,005 63,053 62,298 Equipment and data processing expense 4,607 5,492 9,981 12,406 Net occupancy expense 4,867 5,067 9,923 10,237 Credit card processing services 557 2,588 1,056 5,132 Telecommunication and postage 1,951 2,143 4,052 4,295 Legal and professional fees 1,792 1,676 3,170 4,767 Amortization of intangibles 1,462 1,818 2,923 3,638 Ad valorem taxes 1,912 1,809 3,789 3,573 Other noninterest expense 8,546 9,122 16,803 17,248 --------------------------------------------------------------------------------------------- ------------------------------------ Total noninterest expense 57,773 60,720 114,750 123,594 --------------------------------------------------------------------------------------------- ------------------------------------ INCOME BEFORE INCOME TAXES 35,547 26,894 68,546 53,440 INCOME TAX EXPENSE 11,762 8,792 22,669 16,772 --------------------------------------------------------------------------------------------- ------------------------------------ NET INCOME $ 23,785 $ 18,102 $ 45,877 $ 36,668 --------------------------------------------------------------------------------------------- ------------------------------------ EARNINGS PER SHARE Basic $ .60 $ .46 $ 1.15 $ .93 Diluted .59 .46 1.14 .93 --------------------------------------------------------------------------------------------- ------------------------------------ WEIGHTED-AVERAGE SHARES OUTSTANDING Basic 39,888,693 39,484,184 39,815,143 39,448,590 Diluted 40,176,705 39,618,533 40,070,570 39,574,779 --------------------------------------------------------------------------------------------- ------------------------------------ CASH DIVIDENDS PER SHARE $ .27 $ .25 $ .54 $ .51 --------------------------------------------------------------------------------------------- ------------------------------------ Note: Share and per share data give effect to the 3-for-2 stock split effective April 9, 2002. - MORE -
10 ---------------------------------------------------------------------------------------------------------------------------- WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ---------------------------------------------------------------------------------------------------------------------------- SUMMARY OF INTEREST RATES (TAX-EQUIVALENT)* ---------------------------------------------------------------------------------------------------------------------------- Second First Second Six Months Ended Quarter Quarter Quarter June 30 2002 2002 2001 2002 2001 ----------------------------------------------------------------------------------------------- -------------------------- EARNING ASSETS --------------------------------------------------------- Loans** 6.39 % 6.47 % 7.84 % 6.43 % 8.11 % Investment in securities 5.47 5.63 6.17 5.54 6.23 Federal funds sold and short-term investments 1.72 1.72 4.39 1.72 4.63 -------------------------------------- -------------------------- Total interest-earning assets 5.95 % 5.85 % 7.26 % 5.90 % 7.54 % ----------------------------------------------------------------------------------------------- -------------------------- INTEREST-BEARING LIABILITIES --------------------------------------------------------- Interest-bearing deposits NOW account deposits .73 % 1.05 % 1.32 % .91 % 1.43 % Money market investment deposits 1.48 1.62 3.23 1.55 3.55 Savings deposits .81 .81 1.76 .81 1.87 Other time deposits 3.00 3.50 5.68 3.26 5.78 Time deposits $100,000 and over 2.50 2.77 5.31 2.64 5.64 -------------------------------------- -------------------------- Total interest-bearing deposits 1.79 2.04 3.93 1.92 4.14 -------------------------------------- -------------------------- Short-term borrowings .92 .92 3.25 .92 3.93 -------------------------------------- -------------------------- Total interest-bearing liabilities 1.71 % 1.93 % 3.86 % 1.82 % 4.12 % ----------------------------------------------------------------------------------------------- -------------------------- NET INTEREST SPREAD (tax-equivalent) --------------------------------------------------------- Yield on earning assets less cost of interest- bearing liabilities 4.24 % 3.92 % 3.40 % 4.08 % 3.42 % ----------------------------------------------------------------------------------------------- -------------------------- NET INTEREST MARGIN (tax-equivalent) --------------------------------------------------------- Net interest income (tax-equivalent) as a percentage of average earning assets 4.74 % 4.45 % 4.43 % 4.59 % 4.51 % ----------------------------------------------------------------------------------------------- -------------------------- COST OF FUNDS --------------------------------------------------------- Interest expense as a percentage of average interest- bearing liabilities plus interest-free funds 1.21 % 1.40 % 2.83 % 1.31 % 3.03 % ----------------------------------------------------------------------------------------------- -------------------------- * Based on a 35% tax rate. ** Net of unearned income, before deducting the allowance for loan losses and including loans accounted for on a nonaccrual basis. - MORE -
11 ----------------------------------------------------------------------------------------------------------------------------- WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ----------------------------------------------------------------------------------------------------------------------------- LOAN QUALITY ----------------------------------------------------------------------------------------------------------------------------- Second Second Six Months Ended Quarter Quarter June 30 (dollars in thousands) 2002 2001 2002 2001 ----------------------------------------------------------------------------------------------------------------------------- ALLOWANCE FOR LOAN LOSSES ---------------------------------------------------------------- Allowance for loan losses at beginning of period $ 71,669 $ 61,846 $ 71,633 $ 61,017 Allowance on loans transferred to held for sale - (21) - (651) Provision for loan losses 2,500 2,500 5,500 5,000 Loans charged off during period (3,671) (3,779) (8,035) (6,285) Recoveries on loans previously charged off 1,169 1,719 2,569 3,184 ------------------------------------------------------------- Net loans (charged off) recovered during period (2,502) (2,060) (5,466) (3,101) ------------------------------------------------------------- Allowance for loan losses at end of period $ 71,667 $ 62,265 $ 71,667 $ 62,265 ------------------------------------------------------------- Net annualized charge-offs (recoveries) as a percentage of average loans .23 % .18 % .25 % .14 % Gross annualized charge-offs as a percentage of average loans .34 % .34 % .37 % .28 % Recoveries as a percentage of gross charge-offs 31.84 % 45.49 % 31.97 % 50.66 % Allowance for loan losses as a percentage of loans, at end of period 1.67 % 1.37 % 1.67 % 1.37 % -------------------------------------------------------------
------------------------------------------------------------- June 30 March 31 December 31 June 30 2002 2002 2001 2001 ----------------------------------------------------------------------------------------------------------------------------- NONPERFORMING ASSETS ---------------------------------------------------------------- Loans accounted for on a nonaccrual basis $ 37,442 $ 42,279 $ 33,412 $ 31,655 Restructured loans 358 371 383 408 ------------------------------------------------------------- Total nonperforming loans 37,800 42,650 33,795 32,063 Foreclosed assets and surplus property 2,340 3,281 991 1,022 ------------------------------------------------------------- Total nonperforming assets $ 40,140 $ 45,931 $ 34,786 $ 33,085 ------------------------------------------------------------- Nonperforming assets as a percentage of loans plus foreclosed assets and surplus property, at end of period .93 % 1.05 % .76 % .73 % Allowance for loan losses as a percentage of nonaccruing loans, at end of period 191.41 % 169.51 % 214.39 % 196.70 % Allowance for loan losses as a percentage of nonperforming loans, at end of period 189.60 % 168.04 % 211.96 % 194.20 % Loans 90 days past due still accruing $ 9,390 $ 6,812 $ 6,916 $ 6,581 Loans 90 days past due still accruing as a percentage of loans, at end of period .22 % .16 % .15 % .15 % ----------------------------------------------------------------------------------------------------------------------------- - END -