8-K 1 fourthquarterearnings.txt WHC 4TH QUARTER 2004 8K 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): January 19, 2005 ------------------------------ 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 January 19, 2005, Whitney Holding Corporation issued a news release announcing its financial results for the quarter ended December 31, 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 January 19, 2005 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: January 19, 2005 ---------------------- EXHIBIT INDEX Exhibit Number Description ------ ----------- 99.1 News Release dated January 19, 2005 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 January 19, 2005 WHITNEY REPORTS FOURTH QUARTER 2004 EARNINGS New Orleans, Louisiana. Whitney Holding Corporation (NASDAQ-WTNY) earned $27.0 million for the quarter ended December 31, 2004, a 13% increase compared to net income of $23.8 million reported for the fourth quarter of 2003. Per share earnings were $.65 per basic share and $.64 per diluted share in 2004's fourth quarter, up 10% and 8%, respectively, from $.59 per share, both basic and diluted, in the year-earlier period. Whitney's annual earnings were $97.1 million in 2004, or 1% below the $98.5 million earned in 2003. Annual per share earnings were $2.38 per basic share and $2.35 per diluted share, each approximately 4% lower than in 2003. During the fourth quarter of 2004, Whitney repurchased 707,878 shares of its common stock at an average cost of $44.46 per share under a program announced in October 2004. A total of 1.75 million shares can be repurchased under this program which extends through October 2005. Selected fourth quarter highlights follow: o Whitney's net interest income (TE) increased $11.6 million, or 15%, compared to the fourth quarter of 2003, driven by both the 10% growth in average earning assets and a widening net interest margin. The net interest margin (TE) was a healthy 4.63% for the fourth quarter of 2004, up 20 basis points from the year-earlier period, and up 17 basis points from 2004's third quarter. The overall yield on earning assets increased 31 basis points from the fourth quarter of 2003, and has improved 24 basis points from the third 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 fourth quarter were up 11 basis -MORE- 2 points from the fourth quarter of 2003 and 7 basis points from 2004's third quarter. Whitney maintained a favorable mix of funding sources over this period, with help from sustained demand for deposit products, which limited the impact of the upward pressure on funding rates that has been building in 2004. o Average earning assets for the quarter were up 10%, or $710 million, compared to the fourth quarter of 2003. Average total loans were up 16%, or $774 million, in the fourth quarter of 2004. The loan portfolio has grown consistently throughout 2004, reflecting both new customer development and demand from Whitney's established customer base. Commercial, commercial real estate and real estate construction lending has accounted for most of the increase. The Madison Bank acquisition in the Tampa Bay metropolitan area market in August 2004 added approximately $190 million to average loans for the fourth quarter. Average investment securities were relatively stable from the fourth quarter of 2003 to 2004's fourth quarter. o The growth in earning assets compared to the fourth quarter of 2003 was mainly funded by deposit growth. Total lower-cost deposits were on average 8%, or $367 million, higher in the fourth quarter of 2004 compared to 2003's fourth quarter, with noninterest- bearing demand deposits up 13%, or $235 million, and deposits in lower-cost interest-bearing products up 5%. Higher-cost time deposits increased 12%, or $171 million, mainly through the addition of competitively bid short-term public funds, temporary excess funds of certain larger commercial customers, and the deposits from recent acquisitions. In total, average deposits were up 9%, or $538 million, in the fourth quarter of 2004, including approximately $180 million related to the Tampa acquisition and a branch acquisition in 2004's second quarter. Whitney borrowed an additional $146 million on average in the fourth quarter of 2004 to support earning asset growth, mainly in the form of short-term advances from the Federal Home Loan Bank. Substantially all of Whitney's borrowings are overnight or short-term. o Whitney provided $2 million for loan losses in the fourth quarter of 2004. There was no provision in the fourth quarter of 2003. Net charge-offs totaled $2.3 million in 2004's fourth quarter and $1.9 million in the year-earlier period, or .16% of average loans on an annualized basis in each period. There was no significant shift in Whitney's overall credit risk posture during the fourth quarter of 2004, as is reflected in continued -MORE- 3 favorable credit quality statistics. Collections and charge-offs led to a $2.1 million net reduction in total nonperforming loans from the end of 2004's third quarter. There was little change during 2004's fourth quarter in the total of loans criticized through the internal credit risk classification process or in the classification mix. o Noninterest income decreased 5%, or $1.2 million, from the fourth quarter of 2003. Fee income generated by Whitney's secondary mortgage market operations in the fourth quarter of 2004 was down $1.0 million to a level approximately half that generated in the year-earlier period. 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. The earnings credit allowed against service charges on certain business deposit accounts has increased with rising short-term market rates, contributing to a 10%, or $1.0 million, decrease in deposit service charge income compared to the fourth quarter of 2003. Bank card fees, both credit and debit cards, increased a combined 21%, or $.5 million, compared to 2003's fourth quarter, reflecting both higher transaction volumes and improvement in the effective fee rates realized. Trust service fees increased 12%, or $.2 million, compared to the fourth quarter of 2003 from new business and some improvement in equity market valuations relative to the year-earlier period. o Noninterest expense in the fourth quarter of 2004 increased 7%, or $4.1 million, from 2003's fourth quarter. Incremental costs associated with the acquired Tampa operations totaled approximately $1.3 million in the fourth quarter of 2004. Personnel expense was up 8%, or $3.0 million, in total, including $.7 million for the Tampa operations. Base pay and compensation earned under sales- based and other employee incentive programs increased a combined 7%, or $1.8 million. Compensation expense under management incentive programs was up 20%, or $.6 million, with stock-based compensation driving this increase. Stock-based compensation will vary with changes in Whitney's stock price, which was up 15% on average in the fourth quarter of 2004 from a year earlier. The rising cost of providing current health benefits accounted for approximately half of the 10%, or $.6 million, increase in employee benefits. -MORE- 4 Whitney expects to complete its acquisition of Destin Bancshares, Inc. in the second quarter of 2005. Destin Bancshares is the parent company of Destin Bank, which has approximately $500 million in total assets and operates 10 banking centers in the Destin, Fort Walton Beach and Pensacola areas of the Florida panhandle. 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. ----- This news release may include "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 contain projections of results of operations or of financial condition or state other forward-looking information, such as expectations about future conditions and descriptions of future plans and strategies. Whitney's ability to accurately project results or predict the effects of future plans or strategies is inherently limited. Although Whitney believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, actual results and performance could differ materially from those set forth in the forward-looking statements. Factors that could cause actual results and performance to differ from those expressed in our forward-looking statements include, but are not limited to: o Changes in economic and business conditions, including those caused by natural disasters or by acts of war or terrorism, that directly or indirectly affect the financial health of Whitney's customer base. o Changes in interest rates that affect the pricing of Whitney's financial products, the demand for its financial services and the valuation of its financial assets and liabilities. o Changes in laws and regulations that significantly affect the activities of the banking industry and the industry's competitive position relative to other financial service providers. o Technological changes affecting the nature or delivery of financial products or services and the cost of providing them. o Management's ability to develop and execute plans for Whitney to effectively respond to unexpected changes. Whitney does not intend, and undertakes no obligation, to update or revise any forward-looking statements, whether as a result of differences in actual results, changes in assumptions or changes in other factors affecting such statements. -MORE-
5 ----------------------------------------------------------------------------------------------------------------------------- WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ----------------------------------------------------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS ----------------------------------------------------------------------------------------------------------------------------- Fourth Fourth Year Ended Quarter Quarter December 31 (dollars in thousands, except per share data) 2004 2003 2004 2003 --------------------------------------------------------- -------------------------------- -------------------------------- INCOME DATA Net interest income $ 86,355 $ 74,961 $ 320,090 $ 294,560 Net interest income (tax-equivalent) 87,972 76,346 326,237 300,115 Provision for loan losses 2,000 - 2,000 (3,500) Noninterest income 20,172 21,345 82,523 89,504 Net securities gains (losses) in noninterest income - - 68 863 Noninterest expense 65,719 61,652 260,278 242,923 Net income 26,998 23,820 97,137 98,542 --------------------------------------------------------- -------------------------------- -------------------------------- --------------------------------------------------------- -------------------------------- -------------------------------- AVERAGE BALANCE SHEET DATA Loans $ 5,506,923 $ 4,733,236 $ 5,179,734 $ 4,595,868 Investment securities 2,036,438 2,069,396 2,120,594 2,004,245 Earning assets 7,568,194 6,858,134 7,327,233 6,717,863 Total assets 8,170,990 7,389,183 7,890,183 7,238,022 Deposits 6,577,154 6,039,349 6,347,503 5,913,186 Shareholders' equity 925,176 835,924 881,477 823,698 --------------------------------------------------------- -------------------------------- -------------------------------- --------------------------------------------------------- -------------------------------- -------------------------------- PER SHARE DATA Earnings per share Basic $ .65 $ .59 $ 2.38 $ 2.47 Diluted .64 .59 2.35 2.44 Cash dividends per share $ .35 $ .33 $ 1.34 $ 1.23 Book value per share, end of period $ 21.85 $ 20.78 $ 21.85 $ 20.78 Trading data High price $ 46.24 $ 41.32 $ 46.24 $ 41.32 Low price 41.21 33.88 39.52 30.75 End-of-period closing price 44.99 40.99 44.99 40.99 Trading volume 6,795,612 3,077,088 18,441,501 22,924,257 --------------------------------------------------------- -------------------------------- -------------------------------- --------------------------------------------------------- -------------------------------- -------------------------------- RATIOS Return on average assets 1.31% 1.28% 1.23% 1.36% Return on average shareholders' equity 11.61 11.31 11.02 11.96 Net interest margin 4.63 4.43 4.45 4.47 Dividend payout ratio 54.24 56.02 56.99 50.32 Average loans as a percentage of average deposits 83.73 78.37 81.60 77.72 Efficiency ratio 60.77 63.11 63.69 62.49 Allowance for loan losses as a percentage of loans, at end of period .97 1.22 .97 1.22 Nonperforming assets as a percentage of loans plus foreclosed assets and surplus property, at end of period .46 .62 .46 .62 Average shareholders' equity as a percentage of average total assets 11.32 11.31 11.17 11.38 Leverage ratio, at end of period 9.56 10.13 9.56 10.13 --------------------------------------------------------- -------------------------------- -------------------------------- 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 gains and losses).
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6 ----------------------------------------------------------------------------------------------------------------------------- WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ----------------------------------------------------------------------------------------------------------------------------- DAILY AVERAGE CONSOLIDATED BALANCE SHEETS ----------------------------------------------------------------------------------------------------------------------------- Fourth Fourth Year Ended Quarter Quarter December 31 (dollars in thousands) 2004 2003 2004 2003 ------------------------------------------------------------------------------------------- ---------------------------- ASSETS --------------------------------------------------------------- EARNING ASSETS Loans $5,506,923 $4,733,236 $5,179,734 $4,595,868 Investment securities Securities available for sale 1,810,177 1,880,187 1,903,571 1,805,410 Securities held to maturity 226,261 189,209 217,023 198,835 ----------------------------- ---------------------------- Total investment securities 2,036,438 2,069,396 2,120,594 2,004,245 ----------------------------- ---------------------------- Federal funds sold and short-term investments 13,205 37,551 13,926 66,528 Loans held for sale 11,628 17,951 12,979 51,222 ----------------------------- ---------------------------- Total earning assets 7,568,194 6,858,134 7,327,233 6,717,863 ------------------------------------------------------------------------------------------- ---------------------------- NONEARNING ASSETS Accrued interest receivable 31,439 30,117 30,064 29,937 Goodwill and other intangible assets 140,838 93,275 109,713 95,217 Other assets 484,747 469,178 480,216 460,522 Allowance for loan losses (54,228) (61,521) (57,043) (65,517) ------------------------------------------------------------------------------------------- ---------------------------- Total assets $8,170,990 $7,389,183 $7,890,183 $7,238,022 ------------------------------------------------------------------------------------------- ---------------------------- ------------------------------------------------------------------------------------------- ---------------------------- LIABILITIES --------------------------------------------------------------- INTEREST-BEARING LIABILITIES Interest-bearing deposits NOW account deposits $ 842,536 $ 744,553 $ 810,074 $ 709,508 Money market investment deposits 1,342,641 1,435,926 1,371,419 1,409,491 Savings deposits 702,667 575,905 652,689 557,178 Other time deposits 714,222 757,140 726,482 798,626 Time deposits $100,000 and over 883,398 669,322 809,324 678,969 ----------------------------- ---------------------------- Total interest-bearing deposits 4,485,464 4,182,846 4,369,988 4,153,772 ----------------------------- ---------------------------- Short-term and other borrowings 599,527 453,268 601,427 439,869 ----------------------------- ---------------------------- Total interest-bearing liabilities 5,084,991 4,636,114 4,971,415 4,593,641 ------------------------------------------------------------------------------------------- ---------------------------- NONINTEREST-BEARING LIABILITIES Noninterest-bearing deposits 2,091,690 1,856,503 1,977,515 1,759,414 Accrued interest payable 5,511 4,974 5,222 6,732 Other liabilities 63,622 55,668 54,554 54,537 ----------------------------- ---------------------------- Total liabilities 7,245,814 6,553,259 7,008,706 6,414,324 ------------------------------------------------------------------------------------------- ---------------------------- SHAREHOLDERS' EQUITY 925,176 835,924 881,477 823,698 ------------------------------------------------------------------------------------------- ---------------------------- Total liabilities and shareholders' equity $8,170,990 $7,389,183 $7,890,183 $7,238,022 ------------------------------------------------------------------------------------------- ---------------------------- ------------------------------------------------------------------------------------------- ---------------------------- EARNING ASSETS LESS INTEREST-BEARING LIABILITIES $2,483,203 $2,222,020 $2,355,818 $2,124,222 ------------------------------------------------------------------------------------------- ----------------------------
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7 ----------------------------------------------------------------------------------------------------------------------------- WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ----------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEETS ----------------------------------------------------------------------------------------------------------------------------- December 31 December 31 (dollars in thousands) 2004 2003 ----------------------------------------------------------------------------------------------------------------------------- ASSETS -------------------------------------------------------------------------------- Cash and due from financial institutions $ 213,751 $ 270,387 Federal funds sold and short-term investments 22,424 14,385 Loans held for sale 8,796 15,309 Investment securities Securities available for sale 1,763,774 2,090,870 Securities held to maturity 227,470 190,535 --------------------------------------------- Total investment securities 1,991,244 2,281,405 Loans 5,626,276 4,882,610 Allowance for loan losses (54,345) (59,475) --------------------------------------------- Net loans 5,571,931 4,823,135 --------------------------------------------- Bank premises and equipment 156,602 148,259 Accrued interest receivable 28,985 27,305 Goodwill 115,771 69,164 Other intangible assets 24,240 23,475 Other assets 88,880 82,158 ----------------------------------------------------------------------------------------------------------------------------- Total assets $8,222,624 $7,754,982 ----------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------- LIABILITIES -------------------------------------------------------------------------------- Noninterest-bearing demand deposits $2,111,703 $1,943,248 Interest-bearing deposits 4,500,904 4,215,334 --------------------------------------------- Total deposits 6,612,607 6,158,582 --------------------------------------------- Short-term and other borrowings 634,259 600,053 Accrued interest payable 5,032 4,493 Other liabilities 65,961 151,541 --------------------------------------------- Total liabilities 7,317,859 6,914,669 ----------------------------------------------------------------------------------------------------------------------------- SHAREHOLDERS' EQUITY -------------------------------------------------------------------------------- Common stock, no par value 2,800 2,800 Capital surplus 250,793 183,624 Retained earnings 697,977 656,195 Accumulated other comprehensive income (2,963) 8,438 Treasury stock at cost (31,475) (30) Unearned restricted stock compensation (12,367) (10,714) --------------------------------------------- Total shareholders' equity 904,765 840,313 ----------------------------------------------------------------------------------------------------------------------------- Total liabilities and shareholders' equity $8,222,624 $7,754,982 -----------------------------------------------------------------------------------------------------------------------------
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8 ----------------------------------------------------------------------------------------------------------------------------- WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ----------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF INCOME ----------------------------------------------------------------------------------------------------------------------------- Fourth Fourth Year Ended Quarter Quarter December 31 (dollars in thousands, except per share data) 2004 2003 2004 2003 ------------------------------------------------------------------------------------------- --------------------------- INTEREST INCOME Interest and fees on loans $ 76,860 $ 62,085 $ 272,460 $ 252,611 Interest and dividends on investments 21,171 21,608 88,131 84,708 Interest on federal funds sold and short-term investments 64 98 181 750 ------------------------------------------------------------------------------------------- ---------------------------- Total interest income 98,095 83,791 360,772 338,069 ------------------------------------------------------------------------------------------- ---------------------------- INTEREST EXPENSE Interest on deposits 9,606 8,124 34,665 40,693 Interest on short-term and other borrowings 2,134 706 6,017 2,816 ------------------------------------------------------------------------------------------- ---------------------------- Total interest expense 11,740 8,830 40,682 43,509 ------------------------------------------------------------------------------------------- ---------------------------- NET INTEREST INCOME 86,355 74,961 320,090 294,560 PROVISION FOR LOAN LOSSES 2,000 - 2,000 (3,500) ------------------------------------------------------------------------------------------- ---------------------------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 84,355 74,961 318,090 298,060 ------------------------------------------------------------------------------------------- ---------------------------- NONINTEREST INCOME Service charges on deposit accounts 8,988 9,984 37,148 38,309 Bank card fees 2,760 2,272 10,319 9,193 Trust service fees 2,263 2,022 8,959 8,126 Secondary mortgage market operations 1,140 2,151 4,925 11,248 Other noninterest income 5,021 4,916 21,104 21,765 Securities transactions - - 68 863 ------------------------------------------------------------------------------------------- ---------------------------- Total noninterest income 20,172 21,345 82,523 89,504 ------------------------------------------------------------------------------------------- ---------------------------- NONINTEREST EXPENSE Employee compensation 31,127 28,768 119,713 113,994 Employee benefits 7,284 6,643 29,644 27,377 ----------------------------- ---------------------------- Total personnel expense 38,411 35,411 149,357 141,371 Net occupancy expense 5,382 4,971 20,461 19,521 Equipment and data processing expense 4,550 4,297 17,636 17,264 Telecommunication and postage 2,124 2,248 8,846 8,614 Corporate value and franchise taxes 1,732 1,826 7,496 7,079 Legal and professional fees 1,581 1,525 5,943 6,029 Amortization of intangibles 1,631 1,290 5,657 5,332 Other noninterest expense 10,308 10,084 44,882 37,713 ------------------------------------------------------------------------------------------- ---------------------------- Total noninterest expense 65,719 61,652 260,278 242,923 ------------------------------------------------------------------------------------------- ---------------------------- INCOME BEFORE INCOME TAXES 38,808 34,654 140,335 144,641 INCOME TAX EXPENSE 11,810 10,834 43,198 46,099 ------------------------------------------------------------------------------------------- ---------------------------- NET INCOME $ 26,998 $ 23,820 $ 97,137 $ 98,542 ------------------------------------------------------------------------------------------- ---------------------------- ------------------------------------------------------------------------------------------- ---------------------------- EARNINGS PER SHARE Basic $ .65 $ .59 $ 2.38 $ 2.47 Diluted .64 .59 2.35 2.44 ------------------------------------------------------------------------------------------- ---------------------------- ------------------------------------------------------------------------------------------- ---------------------------- WEIGHTED-AVERAGE SHARES OUTSTANDING Basic 41,516,835 40,067,684 40,748,387 39,929,431 Diluted 42,153,707 40,620,758 41,388,695 40,396,134 ----------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------- ---------------------------- CASH DIVIDENDS PER SHARE $ .35 $ .33 $ 1.34 $ 1.23 ------------------------------------------------------------------------------------------- ----------------------------
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9 ----------------------------------------------------------------------------------------------------------------------------- WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ----------------------------------------------------------------------------------------------------------------------------- SUMMARY OF INTEREST RATES (TAX-EQUIVALENT)* ----------------------------------------------------------------------------------------------------------------------------- Fourth Third Fourth Year Ended Quarter Quarter Quarter December 31 2004 2004 2003 2004 2003 -------------------------------------------------------------------------------------------------- ------------------------ EARNING ASSETS --------------------------------------------------------------- Loans** 5.55 % 5.25 % 5.20 % 5.26 % 5.46 % Investment securities 4.44 4.44 4.40 4.41 4.46 Federal funds sold and short-term investments 1.93 1.39 1.04 1.30 1.13 ----------------------------------- ----------------------- Total interest-earning assets 5.25 % 5.01 % 4.94 % 5.01 % 5.12 % ----------------------------------- ------------------------ -------------------------------------------------------------------------------------------------- ------------------------ INTEREST-BEARING LIABILITIES --------------------------------------------------------------- Interest-bearing deposits NOW account deposits .39 % .38 % .31 % .37 % .40 % Money market investment deposits .65 .66 .65 .65 .81 Savings deposits .39 .37 .28 .34 .39 Other time deposits 1.29 1.32 1.40 1.31 1.76 Time deposits $100,000 and over 1.62 1.35 1.25 1.36 1.50 ----------------------------------- ------------------------ Total interest-bearing deposits .85 .81 .77 .79 .98 ----------------------------------- ------------------------ Short-term and other borrowings 1.42 1.00 .62 1.00 .64 ----------------------------------- ------------------------ Total interest-bearing liabilities .92 % .83 % .76 % .82 % .95 % ----------------------------------- ------------------------ -------------------------------------------------------------------------------------------------- ------------------------ NET INTEREST SPREAD (tax-equivalent) --------------------------------------------------------------- Yield on earning assets less cost of interest- bearing liabilities 4.33 % 4.18 % 4.18 % 4.19 % 4.17 % ----------------------------------- ------------------------ -------------------------------------------------------------------------------------------------- ------------------------ NET INTEREST MARGIN (tax-equivalent) --------------------------------------------------------------- Net interest income (tax-equivalent) as a percentage of average earning assets 4.63 % 4.46 % 4.43 % 4.45 % 4.47 % ----------------------------------- ------------------------ -------------------------------------------------------------------------------------------------- ------------------------ COST OF FUNDS --------------------------------------------------------------- Interest expense as a percentage of average interest- bearing liabilities plus interest-free funds .62 % .55 % .51 % .56 % .65 % -------------------------------------------------------------------------------------------------- ------------------------ * 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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10 ------------------------------------------------------------------------------------------------------------------------------------ WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ------------------------------------------------------------------------------------------------------------------------------------ LOAN QUALITY ------------------------------------------------------------------------------------------------------------------------------------ Fourth Fourth Year Ended Quarter Quarter December 31 (dollars in thousands) 2004 2003 2004 2003 ------------------------------------------------------------------------------------------------------------------------------------ ALLOWANCE FOR LOAN LOSSES --------------------------------------------------------------- Allowance for loan losses at beginning of period $54,611 $61,401 $59,475 $66,115 Allowance of acquired banks - - 2,461 - Provision for loan losses 2,000 - 2,000 (3,500) Loans charged off (3,221) (3,650) (14,030) (12,934) Recoveries on loans previously charged off 955 1,724 4,439 9,794 --------------------------------------------------------------------- Net loans charged off (2,266) (1,926) (9,591) (3,140) --------------------------------------------------------------------- Allowance for loan losses at end of period $54,345 $59,475 $54,345 $59,475 --------------------------------------------------------------------- Annualized net charge-offs as a percentage of average loans .16 % .16 % .19 % .07 % Annualized gross charge-offs as a percentage of average loans .23 % .31 % .27 % .28 % Recoveries as a percentage of gross charge-offs 29.65 % 47.23 % 31.64 % 75.72 % Allowance for loan losses as a percentage of loans, at end of period .97 % 1.22 % .97 % 1.22 % --------------------------------------------------------------------- -------------------------------------------------- December 31 September 30 December 31 2004 2004 2003 ----------------------------------------------------------------------------------------------------------------- NONPERFORMING ASSETS --------------------------------------------------------------- Loans accounted for on a nonaccrual basis $23,597 $25,659 $26,776 Restructured loans 49 61 114 -------------------------------------------------- Total nonperforming loans 23,646 25,720 26,890 Foreclosed assets and surplus property 2,454 2,950 3,490 -------------------------------------------------- Total nonperforming assets $26,100 $28,670 $30,380 ------------------------------------------------- Nonperforming assets as a percentage of loans plus foreclosed assets and surplus property, at end of period .46 % .53 % .62 % Allowance for loan losses as a percentage of nonaccruing loans, at end of period 230.30 % 212.83 % 222.12 % Allowance for loan losses as a percentage of nonperforming loans, at end of period 229.83 % 212.33 % 221.18 % Loans 90 days past due still accruing $ 3,533 $ 4,814 $ 3,385 Loans 90 days past due still accruing as a percentage of loans, at end of period .06 % .09 % .07 % ------------------------------------------------------------------------------------------------------------------
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