8-K 1 body.txt WHC THIRD QUARTER 2003 EARNINGS RELEASE UNITED STATES 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 16, 2003 ------------------------------- 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 7. Financial Statements and Exhibits. (c) Exhibits 99.1 News Release dated October 16, 2003 Item 12. Results of Operations and Financial Condition On October 16, 2003, Whitney Holding Corporation issued a news release announcing its financial results for the quarter ended September 30, 2003 (the "News Release"). The News Release is attached as Exhibit 99.1 to this report. 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 16, 2003 --------------------------- EXHIBIT INDEX Exhibit Number Description ------- ----------- 99.1 News Release dated October 16, 2003. Exhibit 99.1 [GRAPHIC OMITTED] WHITNEY HOLDING CORPORATION 228 ST. CHARLES AVENUE NEW ORLEANS, LA 70130 www.whitneybank.com NEWS RELEASE CONTACT: Thomas L. Callicutt, Jr. FOR IMMEDIATE RELEASE 504/552-4591 October 16, 2003 WHITNEY REPORTS THIRD QUARTER EARNINGS New Orleans, Louisiana. Whitney Holding Corporation (NASDAQ-WTNY) earned $.69 per share, or $27.5 million, in the third quarter of 2003, including the impact of a $4 million pretax negative provision for loan losses ($2.6 million after tax or $.07 per share). These quarterly results represented an increase of 13% from the $.61 per share, or $24.3 million, earned in the third quarter of 2002. Year-to-date earnings in 2003 of $1.87 per share, or $74.7 million, were 6% higher than 2002 earnings on both a per-share and dollar basis. Selected highlights from the third quarter's results follow: o Positive developments on several larger problem credit relationships and a favorable direction to overall credit quality during the quarter helped reduce the allowance for loan losses needed at September 30, 2003 to a level $4.8 million below that at June 30, 2003. The reduction in the required allowance led to a $4 million negative provision for loan losses in the third quarter of 2003, compared to no provision in 2003's second quarter and a provision of $1.5 million in the third quarter of 2002. Net charge-offs were a moderate $.8 million in the third quarter of 2003 following a small net recovery in 2003's second quarter. For the first nine months of 2003, net charge-offs totaled only $1.2 million. In 2002, net charge-offs totaled $4.9 million in the third quarter and $10.4 million for the year-to-date period. The payoff of a larger credit previously categorized as impaired was a major factor in the $5 million reduction in total nonperforming loans from the end of 2003's second quarter. This payoff and improved outlooks for several other larger credits contributed to an $18 million reduction in the total of loans internally classified as having well-defined weaknesses or doubtful prospects for full repayment - MORE - 2 from the end of the second quarter of 2003. With the negative provision and continued loan growth, the allowance declined as a percentage of total loans to 1.31% at September 30, 2003, from 1.43% at June 30, 2003. The allowance represented 200% of nonperforming assets at the end of the third quarter of 2003 and 185% at the end of 2003's second quarter. o Whitney's net interest income (TE) increased 1%, or $.5 million, from the third quarter of 2002. The favorable impact of 6% growth in earning assets was largely offset by a 24 basis point compression of the net interest margin (TE) between these periods, to a still healthy 4.45% in 2003's third quarter. The current quarter's net interest margin (TE) was up slightly from the second quarter of 2003. The longstanding environment of low market rates continued to prevail in 2003's third quarter, although there was some upward movement for longer maturities. In this environment, both funding costs and asset yields have trended lower during 2003 as they did throughout 2002. Funding costs decreased 55 basis points between the third quarters of 2002 and 2003, as Whitney implemented deposit pricing strategies in response to market conditions and the mix of funds shifted in favor of noninterest-bearing and lower-cost interest-bearing sources. The overall yield on earning assets was 79 basis points lower than in 2002's third quarter, as both loan and investment yields were impacted by the gradual repricing of fixed-rate instruments during this sustained period of low rates. Low market rates have also stimulated home mortgage refinancing activities leading to significant prepayments and additional repricing opportunities on mortgage-backed securities. During the third quarter of 2003, Whitney sold $276 million in mortgage-backed securities experiencing accelerated prepayments and repositioned the proceeds in other mortgage-backed issues with a higher and more stable yield and a duration more consistent with overall investment strategies. The sale generated a gain of approximately $.9 million. o Noninterest income, excluding securities transactions, increased 2%, or $.4 million, from the third quarter of 2002. Excluding net gains on dispositions of surplus banking property and foreclosed assets, which are included in other noninterest income and totaled over $1.2 million in 2002's third quarter, noninterest income was 8%, or $1.6 million, higher than in the year-earlier quarter. Secondary mortgage market operations continued to generate strong results in 2003, with third quarter fee income up 63%, or - MORE - 3 $1.3 million, from the same period in 2002. Loan production volume has benefited as low rates stimulated homeowners to refinance their mortgages and helped sustain demand for home purchases. Service charges from deposit accounts were 2% higher in the third quarter of 2003 and credit card income was up 9% compared to 2002's third quarter. The growth in credit card income does not fully reflect the underlying growth in transaction volumes on bank-issued credit and debit cards because debit transaction rates were reduced beginning in August 2003 under the terms of the settlement between Visa USA and merchants. Trust service fees declined 6% compared to the third quarter of 2002, but they have begun to stabilize in recent periods with improved capital market valuations. o Noninterest expense increased 5%, or $3.1 million, from 2002's third quarter. Total personnel expense was up 9%, or $2.9 million, as employee compensation increased 7%, or $1.9 million, and employee benefits rose 18%, or $1.0 million. Base pay increased 3%, or close to $.7 million, but payments under targeted employee incentive programs rose more sharply, driven mainly by the impact of higher loan production volumes on retail mortgage origination incentives. Management incentive plan expense, which includes certain stock-based compensation, increased $.7 million. A combined increase of $.9 million in defined benefit pension plan expense and the cost of providing postretirement health benefits was the main factor behind the overall rise in employee benefits expense. The combined expense of providing these retirement benefits will be up a comparable amount in the fourth quarter of 2003 compared with the year-earlier period, and the annual increase will total $4.1 million. Most other major expense categories compared favorably with the third quarter of 2002. Benefits from the elimination of underutilized facilities helped reduce occupancy expense by 3%, although several new or replacement branches are scheduled to open through the first half of 2004. Equipment and data processing expense decreased 1%, but recent capacity upgrades to the data processing system and new applications will likely lead to a moderate year-over-year increase in 2003's fourth quarter. Upgrades to the capacity and functionality of communication lines were the main factor behind the 4% increase in the telecommunication and postage expense category. - MORE - 4 Average loans in the third quarter of 2003 grew 7%, or $295 million, from the third quarter of 2002. Beginning in the latter half of 2002, the commercial loan portfolio has shown some steady growth that mainly reflects new customer development. For the third quarter of 2003, commercial loans, including construction loans and other real property loans, were up 12%, or $383 million, on average compared to the third quarter of 2002. Partly offsetting this growth was a decrease of 13%, or $87 million, in the residential mortgage loan portfolio that was driven mainly by the continued high level of refinancing activity coupled with management's continuing decision to sell most current production. Average deposits were up 6%, or $315 million, in the third quarter of 2003 compared to 2002's third quarter. Deposit-pricing strategies helped improve the mix of deposits. As anticipated by these strategies, higher-cost time deposits for the third quarter of 2003 were 7%, or $105 million, below 2002's third quarter, with some funds flowing to other deposit products. Total lower-cost deposits increased 10%, or $420 million, on average, with noninterest-bearing demand deposits up 13%, or $206 million, and deposits in lower-cost interest-bearing products up 9%, or $214 million. 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 - 5 ----- 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 -
6 ------------------------------------------------------------------------------------------------------------------------------ WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ------------------------------------------------------------------------------------------------------------------------------ FINANCIAL HIGHLIGHTS ------------------------------------------------------------------------------------------------------------------------------ Third Third Nine Months Ended Quarter Quarter September 30 (dollars in thousands, except per share data) 2003 2002 2003 2002 ------------------------------------------------------------ ------------------------------- ------------------------------- INCOME DATA Net interest income $ 74,283 $ 73,964 $ 219,599 $ 221,745 Net interest income (tax-equivalent) 75,696 75,162 223,769 225,376 Provision for loan losses (4,000) 1,500 (3,500) 7,000 Noninterest income (excluding securities transactions) 22,675 22,295 67,296 62,884 Securities transactions 863 (15) 863 411 Noninterest expense 61,332 58,230 181,271 172,980 Net income 27,502 24,316 74,722 70,193 ------------------------------------------------------------ ------------------------------- ------------------------------- ------------------------------------------------------------ ------------------------------- ------------------------------- AVERAGE BALANCE SHEET DATA Loans $4,620,970 $4,326,383 $4,549,576 $4,356,944 Investment in securities 1,974,230 1,849,743 1,982,290 1,803,432 Earning assets 6,772,338 6,373,798 6,670,593 6,507,286 Total assets 7,293,393 6,883,963 7,187,081 7,036,546 Deposits 5,949,378 5,634,831 5,870,668 5,780,268 Shareholders' equity 822,678 773,326 819,578 750,087 ------------------------------------------------------------ ------------------------------- ------------------------------- ------------------------------------------------------------ ------------------------------- ------------------------------- PER SHARE DATA Earnings per share Basic $ .69 $ .61 $ 1.87 $ 1.76 Diluted .68 .60 1.85 1.75 Cash dividends per share $ .30 $ .27 $ .90 $ .81 Book value per share, end of period $ 20.59 $ 19.56 $ 20.59 $ 19.56 Trading data High closing price $ 35.74 $ 34.00 $ 35.74 $ 38.52 Low closing price 31.94 28.09 31.62 28.09 End-of-period closing price 34.00 32.08 34.00 32.08 Trading volume 5,300,892 5,078,531 19,847,169 16,152,515 ------------------------------------------------------------ ------------------------------- ------------------------------- ------------------------------------------------------------ ------------------------------- ------------------------------- RATIOS Return on average assets 1.50% 1.40% 1.39% 1.33% Return on average shareholders' equity 13.26 12.47 12.19 12.51 Net interest margin 4.45 4.69 4.48 4.63 Dividend payout ratio 44.01 44.43 48.50 46.05 Average loans as a percentage of average deposits 77.67 76.78 77.50 75.38 Efficiency ratio 62.35 59.75 62.28 60.01 Noninterest income as a percentage of total revenue (excluding securities transactions) 23.05 22.88 23.12 21.82 Allowance for loan losses as a percentage of loans, at end of period 1.31 1.56 1.31 1.56 Nonperforming assets as a percentage of loans plus foreclosed assets and surplus property, at end of period .73 .95 .73 .95 Average shareholders' equity as a percentage of average total assets 11.28 11.23 11.40 10.66 Leverage ratio, at end of period 10.04 9.65 10.04 9.65 ------------------------------------------------------------ ------------------------------- ------------------------------- Tax-equivalent (TE) amounts are calculated using a federal income tax rate of 35%. The efficiency ratio is noninterest expense to total net interest (TE) and noninterest income (excluding securities transactions). -MORE-
7 ---------------------------------------------------------------------------------------------------------------------------- WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ---------------------------------------------------------------------------------------------------------------------------- DAILY AVERAGE CONSOLIDATED BALANCE SHEETS ---------------------------------------------------------------------------------------------------------------------------- Third Third Nine Months Ended Quarter Quarter September 30 (dollars in thousands) 2003 2002 2003 2002 ------------------------------------------------------------------------------------------ ------------------------------- ASSETS ------------------------------------------------------------ EARNING ASSETS Loans $4,620,970 $4,326,383 $4,549,576 $4,356,944 Investment in securities Securities available for sale 1,766,011 1,683,076 1,780,212 1,629,520 Securities held to maturity 208,219 166,667 202,078 173,912 ------------------------------ ------------------------------- Total investment in securities 1,974,230 1,849,743 1,982,290 1,803,432 ------------------------------ ------------------------------- Federal funds sold and short-term investments 100,764 182,225 76,293 329,372 Loans held for sale 76,374 15,447 62,434 17,538 ------------------------------ ------------------------------- Total earning assets 6,772,338 6,373,798 6,670,593 6,507,286 ------------------------------------------------------------------------------------------ ------------------------------- NONEARNING ASSETS Accrued interest receivable 29,043 31,546 29,876 33,090 Goodwill 69,164 69,164 69,164 69,062 Other intangible assets 25,396 30,989 26,707 32,453 Other assets 464,043 451,090 457,604 467,325 Allowance for loan losses (66,591) (72,624) (66,863) (72,670) ------------------------------------------------------------------------------------------ ------------------------------- Total assets $7,293,393 $6,883,963 $7,187,081 $7,036,546 ------------------------------------------------------------------------------------------ ------------------------------- LIABILITIES ------------------------------------------------------------ INTEREST-BEARING LIABILITIES Interest-bearing deposits NOW account deposits $ 706,851 $ 635,576 $ 697,697 $ 701,560 Money market investment deposits 1,416,716 1,316,705 1,400,583 1,315,815 Savings deposits 560,469 518,199 550,867 512,087 Other time deposits 790,238 890,595 812,606 934,907 Time deposits $100,000 and over 694,675 699,707 682,221 720,261 ------------------------------ ------------------------------- Total interest-bearing deposits 4,168,949 4,060,782 4,143,974 4,184,630 ------------------------------ ------------------------------- Short-term and other borrowings 457,508 410,108 435,354 442,437 ------------------------------ ------------------------------- Total interest-bearing liabilities 4,626,457 4,470,890 4,579,328 4,627,067 ------------------------------------------------------------------------------------------ ------------------------------- NONINTEREST-BEARING LIABILITIES Noninterest-bearing deposits 1,780,429 1,574,049 1,726,694 1,595,638 Accrued interest payable 6,431 10,952 7,324 13,178 Other liabilities 57,398 54,746 54,157 50,576 ------------------------------ ------------------------------- Total liabilities 6,470,715 6,110,637 6,367,503 6,286,459 ------------------------------------------------------------------------------------------ ------------------------------- SHAREHOLDERS' EQUITY 822,678 773,326 819,578 750,087 ------------------------------------------------------------------------------------------ ------------------------------- Total liabilities and shareholders' equity $7,293,393 $6,883,963 $7,187,081 $7,036,546 ------------------------------------------------------------------------------------------ ------------------------------- ------------------------------------------------------------------------------------------ ------------------------------- EARNING ASSETS LESS INTEREST-BEARING LIABILITIES $2,145,881 $1,902,908 $2,091,265 $1,880,219 ------------------------------------------------------------------------------------------ -------------------------------
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8 --------------------------------------------------------------------------------------------------------------------------- WHITNEY HOLDING CORPORATION AND SUBSIDIARIES --------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEETS --------------------------------------------------------------------------------------------------------------------------- September 30 December 31 September 30 (dollars in thousands) 2003 2002 2002 --------------------------------------------------------------------------------------------------------------------------- ASSETS ----------------------------------------------------------------------- Cash and due from financial institutions $ 282,619 $ 326,124 $ 271,528 Federal funds sold and short-term investments 72,913 4,327 170,641 Loans held for sale 32,916 65,572 26,986 Investment in securities Securities available for sale 1,766,695 1,773,591 1,693,874 Securities held to maturity 205,480 202,107 159,345 ---------------------------------------------------- Total investment in securities 1,972,175 1,975,698 1,853,219 Loans 4,669,536 4,455,412 4,373,326 Allowance for loan losses (61,401) (66,115) (68,240) ---------------------------------------------------- Net loans 4,608,135 4,389,297 4,305,086 ---------------------------------------------------- Bank premises and equipment 147,328 151,620 152,916 Accrued interest receivable 27,863 28,649 29,277 Goodwill 69,164 69,164 69,164 Other intangible assets 24,765 28,807 30,269 Other assets 72,463 58,623 56,785 --------------------------------------------------------------------------------------------------------------------------- Total assets $7,310,341 $7,097,881 $6,965,871 --------------------------------------------------------------------------------------------------------------------------- LIABILITIES ----------------------------------------------------------------------- Noninterest-bearing demand deposits $1,815,163 $1,692,939 $1,615,810 Interest-bearing deposits 4,149,094 4,089,940 4,074,062 ---------------------------------------------------- Total deposits 5,964,257 5,782,879 5,689,872 ---------------------------------------------------- Short-term and other borrowings 449,374 453,415 423,442 Accrued interest payable 5,051 7,383 8,192 Accounts payable and other accrued liabilities 60,614 53,721 61,775 ---------------------------------------------------- Total liabilities 6,479,296 6,297,398 6,183,281 --------------------------------------------------------------------------------------------------------------------------- SHAREHOLDERS' EQUITY ----------------------------------------------------------------------- Common stock, no par value 2,800 2,800 2,800 Capital surplus 177,433 167,235 165,107 Retained earnings 645,720 607,235 594,113 Accumulated other comprehensive income 14,456 30,104 28,185 Treasury stock at cost - - - Unearned restricted stock compensation (9,364) (6,891) (7,615) ---------------------------------------------------- Total shareholders' equity 831,045 800,483 782,590 --------------------------------------------------------------------------------------------------------------------------- Total liabilities and shareholders' equity $7,310,341 $7,097,881 $6,965,871 ---------------------------------------------------------------------------------------------------------------------------
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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) 2003 2002 2003 2002 ---------------------------------------------------------------------------------------- --------------------------------- INTEREST INCOME Interest and fees on loans $ 63,147 $ 67,742 $ 190,526 $ 207,202 Interest and dividends on investments 20,450 23,297 63,100 70,744 Interest on federal funds sold and short-term investments 259 789 652 4,239 ---------------------------------------------------------------------------------------- --------------------------------- Total interest income 83,856 91,828 254,278 282,185 ---------------------------------------------------------------------------------------- --------------------------------- INTEREST EXPENSE Interest on deposits 8,875 16,932 32,569 57,413 Interest on short-term and other borrowings 698 932 2,110 3,027 ---------------------------------------------------------------------------------------- --------------------------------- Total interest expense 9,573 17,864 34,679 60,440 ---------------------------------------------------------------------------------------- --------------------------------- NET INTEREST INCOME 74,283 73,964 219,599 221,745 PROVISION FOR LOAN LOSSES (4,000) 1,500 (3,500) 7,000 ---------------------------------------------------------------------------------------- --------------------------------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 78,283 72,464 223,099 214,745 ---------------------------------------------------------------------------------------- --------------------------------- NONINTEREST INCOME Service charges on deposit accounts 9,698 9,539 28,325 28,682 Secondary mortgage market operations 3,373 2,069 9,097 5,969 Credit card income 2,272 2,083 6,921 6,010 Trust service fees 1,997 2,130 6,104 6,732 Other noninterest income 5,335 6,474 16,849 15,491 Securities transactions 863 (15) 863 411 ---------------------------------------------------------------------------------------- --------------------------------- Total noninterest income 23,538 22,280 68,159 63,295 ---------------------------------------------------------------------------------------- --------------------------------- NONINTEREST EXPENSE Employee compensation 29,096 27,242 85,226 79,399 Employee benefits 6,587 5,576 20,734 16,472 -------------------------------- --------------------------------- Total personnel expense 35,683 32,818 105,960 95,871 Net occupancy expense 5,052 5,208 14,550 15,131 Equipment and data processing expense 4,444 4,510 12,967 14,491 Telecommunication and postage 2,221 2,140 6,366 6,192 Legal and professional fees 1,463 1,431 4,504 4,601 Corporate value and franchise taxes 1,727 1,894 5,253 5,683 Amortization of intangibles 1,290 1,461 4,042 4,384 Other noninterest expense 9,452 8,768 27,629 26,627 ---------------------------------------------------------------------------------------- --------------------------------- Total noninterest expense 61,332 58,230 181,271 172,980 ---------------------------------------------------------------------------------------- --------------------------------- INCOME BEFORE INCOME TAXES 40,489 36,514 109,987 105,060 INCOME TAX EXPENSE 12,987 12,198 35,265 34,867 ---------------------------------------------------------------------------------------- --------------------------------- NET INCOME $ 27,502 $ 24,316 $ 74,722 $ 70,193 ---------------------------------------------------------------------------------------- --------------------------------- ---------------------------------------------------------------------------------------- --------------------------------- EARNINGS PER SHARE Basic $ .69 $ .61 $ 1.87 $ 1.76 Diluted .68 .60 1.85 1.75 ---------------------------------------------------------------------------------------- --------------------------------- ---------------------------------------------------------------------------------------- --------------------------------- WEIGHTED-AVERAGE SHARES OUTSTANDING Basic 39,993,350 40,050,014 39,882,839 39,894,294 Diluted 40,383,047 40,244,282 40,320,434 40,129,111 ----------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- --------------------------------- CASH DIVIDENDS PER SHARE $ .30 $ .27 $ .90 $ .81 ---------------------------------------------------------------------------------------- ---------------------------------
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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 2003 2003 2002 2003 2002 ------------------------------------------------------------------------------------------------ ------------------------- EARNING ASSETS ----------------------------------------------------------- Loans** 5.35 % 5.55 % 6.22 % 5.54 % 6.36 % Investment in securities 4.38 4.34 5.22 4.48 5.43 Federal funds sold and short-term investments 1.02 1.25 1.72 1.14 1.72 ------------------------------------- ------------------------- Total interest-earning assets 5.01 % 5.14 % 5.80 % 5.18 % 5.87 % ------------------------------------- ------------------------- ------------------------------------------------------------------------------------------------ ------------------------- INTEREST-BEARING LIABILITIES ----------------------------------------------------------- Interest-bearing deposits NOW account deposits .31 % .47 % .74 % .43 % .85 % Money market investment deposits .64 .90 1.46 .86 1.52 Savings deposits .27 .47 .82 .43 .81 Other time deposits 1.62 1.87 2.61 1.88 3.05 Time deposits $100,000 and over 1.38 1.60 2.24 1.58 2.51 ------------------------------------- ------------------------- Total interest-bearing deposits .84 1.08 1.65 1.05 1.83 ------------------------------------- ------------------------- Short-term and other borrowings .61 .70 .90 .65 .91 ------------------------------------- ------------------------- Total interest-bearing liabilities .82 % 1.04 % 1.59 % 1.01 % 1.75 % ------------------------------------- ------------------------- ------------------------------------------------------------------------------------------------ ------------------------- NET INTEREST SPREAD (tax-equivalent) ----------------------------------------------------------- Yield on earning assets less cost of interest- bearing liabilities 4.19 % 4.10 % 4.21 % 4.17 % 4.12 % ------------------------------------- ------------------------- ------------------------------------------------------------------------------------------------ ------------------------- NET INTEREST MARGIN (tax-equivalent) ----------------------------------------------------------- Net interest income (tax-equivalent) as a percentage of average earning assets 4.45 % 4.43 % 4.69 % 4.48 % 4.63 % ------------------------------------- ------------------------- ------------------------------------------------------------------------------------------------ ------------------------- COST OF FUNDS ----------------------------------------------------------- Interest expense as a percentage of average interest- bearing liabilities plus interest-free funds .56 % .71 % 1.11 % .70 % 1.24 % ------------------------------------------------------------------------------------------------ ------------------------- * Based on a 35% tax rate. ** Net of unearned income, before deducting the allowance for loan losses and including loans held for sale and 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) 2003 2002 2003 2002 --------------------------------------------------------------------------------------------- ------------------------------- ALLOWANCE FOR LOAN LOSSES --------------------------------------------------------------- Allowance for loan losses at beginning of period $ 66,243 $ 71,667 $ 66,115 $ 71,633 Provision for loan losses (4,000) 1,500 (3,500) 7,000 Loans charged off (2,428) (6,291) (9,284) (14,326) Recoveries on loans previously charged off 1,586 1,364 8,070 3,933 ------------------------------ ------------------------------- Net loans (charged off) recovered (842) (4,927) (1,214) (10,393) ------------------------------ ------------------------------- Allowance for loan losses at end of period $ 61,401 $ 68,240 $ 61,401 $ 68,240 ------------------------------ ------------------------------- Net annualized charge-offs (recoveries) as a percentage of average loans .07 % .46 % .04 % .32 % Gross annualized charge-offs as a percentage of average loans .21 % .58 % .27 % .44 % Recoveries as a percentage of gross charge-offs 65.32 % 21.68 % 86.92 % 27.45 % Allowance for loan losses as a percentage of loans, at end of period 1.31 % 1.56 % 1.31 % 1.56 % ------------------------------ ------------------------------- ------------------------------ ------------------------------- September 30 June 30 December 31 September 30 2003 2003 2002 2002 --------------------------------------------------------------------------------------------- ------------------------------- NONPERFORMING ASSETS --------------------------------------------------------------- Loans accounted for on a nonaccrual basis $ 30,533 $ 35,622 $ 37,959 $ 38,663 Restructured loans 215 224 336 347 ------------------------------ ------------------------------- Total nonperforming loans 30,748 35,846 38,295 39,010 Foreclosed assets and surplus property 3,255 4,556 3,854 2,543 ------------------------------ ------------------------------- Total nonperforming assets $ 34,003 $ 40,402 $ 42,149 $ 41,553 ------------------------------ ------------------------------- Nonperforming assets as a percentage of loans plus foreclosed assets and surplus property, at end of period .73 % .87 % .95 % .95 % Allowance for loan losses as a percentage of nonaccruing loans, at end of period 201.10 % 185.96 % 174.17 % 176.50 % Allowance for loan losses as a percentage of nonperforming loans, at end of period 199.69 % 184.80 % 172.65 % 174.93 % Loans 90 days past due still accruing $ 2,725 $ 3,445 $ 5,817 $ 9,532 Loans 90 days past due still accruing as a percentage of loans, at end of period .06 % .07 % .13 % .22 % --------------------------------------------------------------------------------------------- -------------------------------
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