8-K 1 thirdqtrerngs.txt WHITNEY BANK THIRD QUARTER EARNINGS 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 20, 2004 ------------------------------ WHITNEY HOLDING CORPORATION -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Louisiana 0-1026 72-6017893 -------------------------------------------------------------------------------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 228 St. Charles Avenue, New Orleans, Louisiana 70130 -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (504) 586-7272 ---------------------------- Check the appropriate box below if the form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230-.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operations and Financial Condition. On October 20, 2004, Whitney Holding Corporation issued a news release announcing its financial results for the quarter ended September 30, 2004 (the "News Release"). The News Release is attached as exhibit 99.1 to this report and incorporated herein by reference. Item 9.01 Financial Statement and Exhibits. (c) Exhibits 99.1 News Release dated October 20, 2004 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 20, 2004 ---------------------- EXHIBIT INDEX Exhibit Number Description ------ ----------- 99.1 News Release dated October 20, 2004 Exhibit 99.1 [WHITNEY LOGO] 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 20, 2004 WHITNEY REPORTS THIRD QUARTER 2004 EARNINGS New Orleans, Louisiana. Whitney Holding Corporation (NASDAQ-WTNY) earned $22.1 million for the quarter ended September 30, 2004, or $.54 per basic share and $.53 per diluted share. Several significant expense items, totaling approximately $2.7 million pretax ($1.8 million after tax or $.04 per share), impacted the results for the period. These items, which are discussed in more detail below, included a loss on the abandonment of certain noncancelable facility leases, a casualty loss for hurricane damage, and costs to convert the systems of a recent bank acquisition. For the third quarter of 2003, Whitney reported net income of $27.5 million, or $.69 per basic share and $.68 per diluted share, including the positive impact of a $4 million pretax negative provision for loan losses ($2.6 million after tax or $.07 per share). Year-to-date earnings of $70.1 million in 2004 were 6% below the comparable period in 2003. Year-to-date per share earnings were $1.73 per basic share and $1.71 per diluted share in 2004, each approximately 8% lower than in 2003. Selected third quarter highlights follow: o Average earning assets for the quarter were up 8%, or $537 million, compared to the third quarter of 2003. Average total loans, excluding loans originated for sale, were up 13%, or $611 million, in the third quarter of 2004. The loan portfolio has grown consistently throughout 2003 and 2004, although the rate of internal growth slowed somewhat in the most recent quarterly period. New customer development and demand from Whitney's established customer base for commercial, commercial real estate and real estate construction loans has accounted for most of the increase. The acquisition of Madison Bank in August 2004 added approximately $88 million to average loans for the quarter. Average investment securities increased 4%, or $79 million, from the third -MORE- 2 quarter of 2003 to 2004's third quarter, but were down from earlier in 2004 as management unwound the temporary strategy it executed in late 2003 to invest in advance of expected paydowns on the securities portfolio. o Growth in earning assets compared to the third quarter of 2003 was largely matched by deposit growth. Total lower-cost deposits were on average 9%, or $381 million, higher in the third quarter of 2004, with noninterest-bearing demand deposits up 12% compared to 2003's third quarter and deposits in lower-cost interest-bearing products up 6%. Higher-cost time deposits increased 7%, or $110 million, despite some rate-driven customer migration away from time deposit products, mainly through the addition of competitively bid short-term public funds and the deposits from recent acquisitions. In total, average deposits were up 8%, or $491 million, in the third quarter of 2004, including approximately $102 million related to the Madison Bank acquisition and a branch acquisition in 2004's second quarter. o Whitney's net interest income (TE) increased $6.0 million, or 8%, compared to the third quarter of 2003, consistent with the growth in average earning assets. The net interest margin (TE) was a healthy 4.46% for the third quarter of 2004, slightly higher than the year-earlier period, and up 15 basis points from 2004's second quarter. The overall yield on earning assets was unchanged from the third quarter of 2003, but has improved 18 basis points from the second quarter of 2004, reflecting both rising benchmark rates for the significant variable-rate segment of Whitney's loan portfolio and an increase in the percentage of loans in the earning asset mix. Funding costs for the current year's third quarter were little changed from both the third quarter of 2003 and 2004's second quarter. Sustained demand for deposit products and appropriate deposit pricing strategies helped Whitney maintain a favorable mix of funding sources over this period and limited the impact of the upward pressure on funding rates that has been building in 2004. o Whitney made no provision for loan losses in the third quarter of 2004. There was a $4 million negative provision in the third quarter of 2003. Net charge-offs totaled $4.3 million in the third quarter of 2004, of which $3.2 million was from one credit that had been first identified as impaired in the second quarter of 2004 after unexpected developments. Net charge-offs totaled $.8 million in 2003's third quarter. There were -MORE- 3 no significant additions to nonperforming loans during the most recent quarter, and charge-offs and collections led to a $6.9 million reduction in the total of nonperforming loans from the end of 2004's second quarter. The allowance required for impaired loans at September 30, 2004, was $4.1 million below the level determined at June 30, 2004. The total of loans criticized through the internal credit risk classification process would have decreased approximately $7 million during the third quarter of 2004 absent the impact of the Madison Bank acquisition. Including Madison Bank's loans, total criticized loans increased $11 million, all in the less severe classifications. The $188 million in total loans acquired with Madison Bank carried a $2.5 million allowance for loan losses. o Noninterest income decreased 15%, or $3.5 million, from the third quarter of 2003, mainly reflecting a $2.2 million decline in fee income from Whitney's secondary mortgage market operations and a $.8 million decrease in gains realized on securities transactions. The rate environment for home loans during 2004, though still low from a historical perspective, was unable to stimulate refinancing activity at the levels seen in recent years, and Whitney's production of loans held for sale during the third quarter of 2004 was less than one-third of that produced in the year-earlier period. The earnings credit allowed against service charges on certain business deposit accounts has increased with rising short-term market rates, contributing to a 3%, or $.3 million, decrease in deposit service charge income compared to the third quarter of 2003. Bank card fees, both credit and debit cards, increased a combined 12%, or $.3 million, compared to 2003's third quarter, reflecting both higher transaction volumes and improvement in the effective fee rates realized. Trust service fees increased 10%, or $.2 million, compared to the third quarter of 2003 from new business and improved equity market valuations relative to the year-earlier period. Other noninterest income categories decreased a net $.6 million, with investment service fees down $.3 million mainly on reduced demand for fixed-income securities in the third quarter of 2004 among Whitney's customer base. During the third quarter of 2003, Whitney sold $276 million in mortgage-backed securities experiencing accelerated prepayments and repositioned the proceeds in issues with characteristics more consistent with overall investment strategies. The sale generated a gain of approximately $.9 million. -MORE- 4 o Noninterest expense in the third quarter of 2004 increased 11%, or $6.9 million, from 2003's third quarter. Incremental costs associated with Madison Bank operations totaled approximately $1.1 million in the third quarter of 2004, including $.5 million for system conversion services and other merger-related expenses that are reported with legal and professional fees. Personnel expense was up 5%, or $1.7 million, in total, including $.4 million associated with the Madison Bank acquisition. Base pay and compensation earned under sales-based and other employee incentive programs increased a combined 3%, or $.8 million. Compensation expense under management incentive programs was up 11%, or $.3 million, with stock-based compensation driving this increase. Stock-based compensation will vary with changes in Whitney's stock price, which was up 24% at the end of 2004's third quarter from a year earlier. The rising cost of providing current health benefits was the main factor behind the 9%, or $.6 million, increase in employee benefits. A number of factors contributed to the $4.0 million increase in other noninterest expense. As anticipated, during the third quarter of 2004, Whitney relocated certain of its Houston operations from office space that is subject to noncancelable leases and recognized a loss of $1.6 million related to its remaining lease obligations. This move is expected to reduce costs in the long term and enhance productivity. Whitney also recognized a $.6 million casualty loss for property damage from Hurricane Ivan that struck at the Florida-Alabama coastal border during the most recent quarter. Storm-related disruptions to banking operations were minimal. There were also factors of a recurring nature behind the increase in other noninterest expense. The larger of these factors included an increase in marketing activities and the amortization of expanded affordable housing investments. Tax credits associated with the affordable housing investments helped lower the effective tax rate compared to the year-earlier period. 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; the panhandle of Florida; and the Tampa Bay metropolitan area of Florida. ----- -MORE- 5 This news release may contain statements that are not historical facts and are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. 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) 2004 2003 2004 2003 --------------------------------------------------------- -------------------------------- -------------------------------- INCOME DATA Net interest income $ 80,186 $ 74,283 $ 233,735 $ 219,599 Net interest income (tax-equivalent) 81,725 75,696 238,265 223,769 Provision for loan losses - (4,000) - (3,500) Noninterest income 20,053 23,538 62,351 68,159 Net securities gains (losses) in noninterest income 68 863 68 863 Noninterest expense 68,261 61,332 194,559 181,271 Net income 22,078 27,502 70,139 74,722 --------------------------------------------------------- -------------------------------- -------------------------------- --------------------------------------------------------- -------------------------------- -------------------------------- AVERAGE BALANCE SHEET DATA Loans $ 5,231,828 $ 4,620,970 $ 5,069,875 $ 4,549,576 Investment securities 2,052,769 1,974,230 2,148,849 1,982,290 Earning assets 7,309,316 6,772,338 7,246,325 6,670,593 Total assets 7,882,497 7,293,393 7,795,897 7,187,081 Deposits 6,440,765 5,949,378 6,270,394 5,870,668 Shareholders' equity 882,744 822,678 866,804 819,578 --------------------------------------------------------- -------------------------------- -------------------------------- --------------------------------------------------------- -------------------------------- -------------------------------- PER SHARE DATA Earnings per share Basic $ .54 $ .69 $ 1.73 $ 1.87 Diluted .53 .68 1.71 1.85 Cash dividends per share $ .33 $ .30 $ .99 $ .90 Book value per share, end of period $ 21.92 $ 20.59 $ 21.92 $ 20.59 Trading data High price $ 45.18 $ 36.00 $ 45.18 $ 36.00 Low price 39.90 31.55 39.52 30.75 End-of-period closing price 42.00 34.00 42.00 34.00 Trading volume 4,828,742 5,300,892 11,645,889 19,847,169 --------------------------------------------------------- -------------------------------- -------------------------------- --------------------------------------------------------- -------------------------------- -------------------------------- RATIOS Return on average assets 1.11% 1.50% 1.20% 1.39% Return on average shareholders' equity 9.95 13.26 10.81 12.19 Net interest margin 4.46 4.45 4.39 4.48 Dividend payout ratio 62.74 44.01 58.04 48.50 Average loans as a percentage of average deposits 81.23 77.67 80.85 77.50 Efficiency ratio 67.11 62.35 64.73 62.28 Allowance for loan losses as a percentage of loans, at end of period 1.02 1.31 1.02 1.31 Nonperforming assets as a percentage of loans plus foreclosed assets and surplus property, at end of period .53 .73 .53 .73 Average shareholders' equity as a percentage of average total assets 11.20 11.28 11.12 11.40 Leverage ratio, at end of period 10.05 10.04 10.05 10.04 --------------------------------------------------------- -------------------------------- -------------------------------- 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) 2004 2003 2004 2003 ------------------------------------------------------------------------------------------ --------------------------------- ASSETS --------------------------------------------------------- EARNING ASSETS Loans $ 5,231,828 $ 4,620,970 $ 5,069,875 $ 4,549,576 Investment securities Securities available for sale 1,827,896 1,766,011 1,934,928 1,780,212 Securities held to maturity 224,873 208,219 213,921 202,078 --------------------------------- --------------------------------- Total investment securities 2,052,769 1,974,230 2,148,849 1,982,290 --------------------------------- --------------------------------- Federal funds sold and short-term investments 11,714 100,764 14,168 76,293 Loans held for sale 13,005 76,374 13,433 62,434 --------------------------------- --------------------------------- Total earning assets 7,309,316 6,772,338 7,246,325 6,670,593 ------------------------------------------------------------------------------------------ --------------------------------- NONEARNING ASSETS Accrued interest receivable 29,475 29,043 29,602 29,876 Goodwill 90,393 69,164 76,292 69,164 Other intangible assets 24,261 25,396 22,970 26,707 Other assets 486,319 464,043 478,696 457,604 Allowance for loan losses (57,267) (66,591) (57,988) (66,863) ------------------------------------------------------------------------------------------ --------------------------------- Total assets $ 7,882,497 $ 7,293,393 $ 7,795,897 $ 7,187,081 ------------------------------------------------------------------------------------------ --------------------------------- ------------------------------------------------------------------------------------------ --------------------------------- LIABILITIES --------------------------------------------------------- INTEREST-BEARING LIABILITIES Interest-bearing deposits NOW account deposits $ 811,827 $ 706,851 $ 799,175 $ 697,697 Money market investment deposits 1,369,703 1,416,716 1,381,083 1,400,583 Savings deposits 669,996 560,469 635,910 550,867 Other time deposits 732,506 790,238 730,597 812,606 Time deposits $100,000 and over 862,454 694,675 784,451 682,221 --------------------------------- --------------------------------- Total interest-bearing deposits 4,446,486 4,168,949 4,331,216 4,143,974 --------------------------------- --------------------------------- Short-term and other borrowings 498,613 457,508 602,065 435,354 --------------------------------- --------------------------------- Total interest-bearing liabilities 4,945,099 4,626,457 4,933,281 4,579,328 ------------------------------------------------------------------------------------------ --------------------------------- NONINTEREST-BEARING LIABILITIES Noninterest-bearing deposits 1,994,279 1,780,429 1,939,178 1,726,694 Accrued interest payable 5,573 6,431 5,125 7,324 Other liabilities 54,802 57,398 51,509 54,157 --------------------------------- --------------------------------- Total liabilities 6,999,753 6,470,715 6,929,093 6,367,503 ------------------------------------------------------------------------------------------ --------------------------------- SHAREHOLDERS' EQUITY 882,744 822,678 866,804 819,578 ------------------------------------------------------------------------------------------ --------------------------------- Total liabilities and shareholders' equity $ 7,882,497 $ 7,293,393 $ 7,795,897 $ 7,187,081 ------------------------------------------------------------------------------------------ --------------------------------- ------------------------------------------------------------------------------------------ --------------------------------- EARNING ASSETS LESS INTEREST-BEARING LIABILITIES $ 2,364,217 $ 2,145,881 $ 2,313,044 $ 2,091,265 ------------------------------------------------------------------------------------------ --------------------------------- -MORE-
8 ---------------------------------------------------------------------------------------------------------------------------- WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ----------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEETS ----------------------------------------------------------------------------------------------------------------------------- September 30 December 31 September 30 (dollars in thousands) 2004 2003 2003 ----------------------------------------------------------------------------------------------------------------------------- ASSETS ------------------------------------------------------------------- Cash and due from financial institutions $ 249,327 $ 270,387 $ 282,619 Federal funds sold and short-term investments 26,904 14,385 72,913 Loans held for sale 13,838 15,309 32,916 Investment securities Securities available for sale 1,816,276 2,090,870 1,766,695 Securities held to maturity 226,339 190,535 205,480 ---------------------------------------------------------- Total investment securities 2,042,615 2,281,405 1,972,175 Loans 5,380,023 4,882,610 4,669,536 Allowance for loan losses (54,611) (59,475) (61,401) ---------------------------------------------------------- Net loans 5,325,412 4,823,135 4,608,135 ---------------------------------------------------------- Bank premises and equipment 156,122 148,259 147,328 Accrued interest receivable 28,978 27,305 27,863 Goodwill 115,742 69,164 69,164 Other intangible assets 25,871 23,475 24,765 Other assets 87,231 82,158 72,463 ----------------------------------------------------------------------------------------------------------------------------- Total assets $8,072,040 $7,754,982 $7,310,341 ----------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------- LIABILITIES ------------------------------------------------------------------- Noninterest-bearing demand deposits $2,008,634 $1,943,248 $1,815,163 Interest-bearing deposits 4,482,174 4,215,334 4,149,094 ---------------------------------------------------------- Total deposits 6,490,808 6,158,582 5,964,257 ---------------------------------------------------------- Short-term and other borrowings 588,731 600,053 449,374 Accrued interest payable 4,833 4,493 5,051 Other liabilities 67,669 151,541 60,614 ---------------------------------------------------------- Total liabilities 7,152,041 6,914,669 6,479,296 ----------------------------------------------------------------------------------------------------------------------------- SHAREHOLDERS' EQUITY ------------------------------------------------------------------- Common stock, no par value 2,800 2,800 2,800 Capital surplus 244,609 183,624 177,433 Retained earnings 685,624 656,195 645,720 Accumulated other comprehensive income 231 8,438 14,456 Treasury stock at cost (159) (30) - Unearned restricted stock compensation (13,106) (10,714) (9,364) ---------------------------------------------------------- Total shareholders' equity 919,999 840,313 831,045 ----------------------------------------------------------------------------------------------------------------------------- Total liabilities and shareholders' equity $8,072,040 $7,754,982 $7,310,341 ----------------------------------------------------------------------------------------------------------------------------- -MORE-
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) 2004 2003 2004 2003 ------------------------------------------------------------------------------------------ ----------------------------------- INTEREST INCOME Interest and fees on loans $ 69,025 $ 63,147 $195,600 $190,526 Interest and dividends on investments 21,406 20,450 66,960 63,100 Interest on federal funds sold and short-term investments 41 259 117 652 ------------------------------------------------------------------------------------------ ----------------------------------- Total interest income 90,472 83,856 262,677 254,278 ------------------------------------------------------------------------------------------ ----------------------------------- INTEREST EXPENSE Interest on deposits 9,029 8,875 25,059 32,569 Interest on short-term and other borrowings 1,257 698 3,883 2,110 ------------------------------------------------------------------------------------------ ----------------------------------- Total interest expense 10,286 9,573 28,942 34,679 ------------------------------------------------------------------------------------------ ----------------------------------- NET INTEREST INCOME 80,186 74,283 233,735 219,599 PROVISION FOR LOAN LOSSES - (4,000) - (3,500) ------------------------------------------------------------------------------------------ ----------------------------------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 80,186 78,283 233,735 223,099 ------------------------------------------------------------------------------------------ ----------------------------------- NONINTEREST INCOME Service charges on deposit accounts 9,392 9,698 28,160 28,325 Secondary mortgage market operations 1,136 3,373 3,785 9,097 Bank card fees 2,555 2,272 7,559 6,921 Trust service fees 2,204 1,997 6,696 6,104 Other noninterest income 4,698 5,335 16,083 16,849 Securities transactions 68 863 68 863 ------------------------------------------------------------------------------------------ ----------------------------------- Total noninterest income 20,053 23,538 62,351 68,159 ------------------------------------------------------------------------------------------ ----------------------------------- NONINTEREST EXPENSE Employee compensation 30,174 29,096 88,586 85,226 Employee benefits 7,167 6,587 22,360 20,734 ----------------------------------- ----------------------------------- Total personnel expense 37,341 35,683 110,946 105,960 Net occupancy expense 5,331 5,052 15,079 14,550 Equipment and data processing expense 4,468 4,444 13,086 12,967 Telecommunication and postage 2,216 2,221 6,722 6,366 Corporate value and franchise taxes 1,919 1,727 5,764 5,253 Legal and professional fees 2,106 1,463 4,362 4,504 Amortization of intangibles 1,448 1,290 4,026 4,042 Other noninterest expense 13,432 9,452 34,574 27,629 ------------------------------------------------------------------------------------------ ----------------------------------- Total noninterest expense 68,261 61,332 194,559 181,271 ------------------------------------------------------------------------------------------ ----------------------------------- INCOME BEFORE INCOME TAXES 31,978 40,489 101,527 109,987 INCOME TAX EXPENSE 9,900 12,987 31,388 35,265 ------------------------------------------------------------------------------------------ ----------------------------------- NET INCOME $ 22,078 $ 27,502 $ 70,139 $ 74,722 ------------------------------------------------------------------------------------------ ----------------------------------- ------------------------------------------------------------------------------------------ ----------------------------------- EARNINGS PER SHARE Basic $ .54 $ .69 $ 1.73 $ 1.87 Diluted .53 .68 1.71 1.85 ------------------------------------------------------------------------------------------ ----------------------------------- ------------------------------------------------------------------------------------------ ----------------------------------- WEIGHTED-AVERAGE SHARES OUTSTANDING Basic 40,969,394 39,993,350 40,490,366 39,882,839 Diluted 41,551,024 40,383,047 41,131,828 40,320,434 ------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------ ----------------------------------- CASH DIVIDENDS PER SHARE $ .33 $ .30 $ .99 $ .90 ------------------------------------------------------------------------------------------ ----------------------------------- - 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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 2004 2004 2003 2004 2003 -------------------------------------------------------------------------------------------------- -------------------------- EARNING ASSETS ------------------------------------------------------------ Loans** 5.25 % 5.04 % 5.35 % 5.15 % 5.54 % Investment securities 4.44 4.36 4.38 4.40 4.48 Federal funds sold and short-term investments 1.39 .99 1.02 1.10 1.14 -------------------------------------- -------------------------- Total interest-earning assets 5.01 % 4.83 % 5.01 % 4.92 % 5.18 % -------------------------------------- -------------------------- -------------------------------------------------------------------------------------------------- -------------------------- INTEREST-BEARING LIABILITIES ------------------------------------------------------------ Interest-bearing deposits NOW account deposits .38 % .35 % .31 % .36 % .43 % Money market investment deposits .66 .65 .64 .66 .86 Savings deposits .37 .31 .27 .32 .43 Other time deposits 1.32 1.28 1.62 1.31 1.88 Time deposits $100,000 and over 1.35 1.21 1.38 1.26 1.58 -------------------------------------- -------------------------- Total interest-bearing deposits .81 .75 .84 .77 1.05 -------------------------------------- -------------------------- Short-term and other borrowings 1.00 .81 .61 .86 .65 -------------------------------------- -------------------------- Total interest-bearing liabilities .83 % .76 % .82 % .78 % 1.01 % -------------------------------------- -------------------------- -------------------------------------------------------------------------------------------------- -------------------------- NET INTEREST SPREAD (tax-equivalent) ------------------------------------------------------------ Yield on earning assets less cost of interest- bearing liabilities 4.18 % 4.07 % 4.19 % 4.14 % 4.17 % -------------------------------------- -------------------------- -------------------------------------------------------------------------------------------------- -------------------------- NET INTEREST MARGIN (tax-equivalent) ------------------------------------------------------------ Net interest income (tax-equivalent) as a percentage of average earning assets 4.46 % 4.31 % 4.45 % 4.39 % 4.48 % -------------------------------------- -------------------------- -------------------------------------------------------------------------------------------------- -------------------------- COST OF FUNDS ------------------------------------------------------------ Interest expense as a percentage of average interest- bearing liabilities plus interest-free funds .55 % .52 % .56 % .53 % .70 % -------------------------------------------------------------------------------------------------- -------------------------- * 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. - MORE -
11 ------------------------------------------------------------------------------------------------------------------------------- WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ------------------------------------------------------------------------------------------------------------------------------- LOAN QUALITY ------------------------------------------------------------------------------------------------------------------------------- Third Third Nine Months Ended Quarter Quarter September 30 (dollars in thousands) 2004 2003 2004 2003 ------------------------------------------------------------------------------------------------------------------------------- ALLOWANCE FOR LOAN LOSSES ------------------------------------------------------------- Allowance for loan losses at beginning of period $56,447 $66,243 $59,475 $66,115 Allowance of acquired banks 2,461 - 2,461 - Provision for loan losses - (4,000) - (3,500) Loans charged off (5,316) (2,428) (10,809) (9,284) Recoveries on loans previously charged off 1,019 1,586 3,484 8,070 ------------------------------------------------------------------ Net loans charged off (4,297) (842) (7,325) (1,214) ------------------------------------------------------------------ Allowance for loan losses at end of period $54,611 $61,401 $54,611 $61,401 ------------------------------------------------------------------ Net annualized charge-offs as a percentage of average loans .33 % .07 % .19 % .04 % Gross annualized charge-offs as a percentage of average loans .41 % .21 % .28 % .27 % Recoveries as a percentage of gross charge-offs 19.17 % 65.32 % 32.23 % 86.92 % Allowance for loan losses as a percentage of loans, at end of period 1.02 % 1.31 % 1.02 % 1.31 % ------------------------------------------------------------------ ------------------------------------------------------------------ September 30 June 30 December 31 September 30 2004 2004 2003 2003 ------------------------------------------------------------------------------------------------------------------------------- NONPERFORMING ASSETS ------------------------------------------------------------- Loans accounted for on a nonaccrual basis $25,659 $32,560 $26,776 $30,533 Restructured loans 61 74 114 215 ------------------------------------------------------------------ Total nonperforming loans 25,720 32,634 26,890 30,748 Foreclosed assets and surplus property 2,950 2,450 3,490 3,255 ------------------------------------------------------------------ Total nonperforming assets $28,670 $35,084 $30,380 $34,003 ------------------------------------------------------------------ Nonperforming assets as a percentage of loans plus foreclosed assets and surplus property, at end of period .53 % .68 % .62 % .73 % Allowance for loan losses as a percentage of nonaccruing loans, at end of period 212.83 % 173.36 % 222.12 % 201.10 % Allowance for loan losses as a percentage of nonperforming loans, at end of period 212.33 % 172.97 % 221.18 % 199.69 % Loans 90 days past due still accruing $4,814 $2,986 $3,385 $2,725 Loans 90 days past due still accruing as a percentage of loans, at end of period .09 % .06 % .07 % .06 % -------------------------------------------------------------------------------------------------------------------------------