8-K 1 wtny72005.txt SECOND QUARTER 2005 ER 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): July 20, 2005 ------------------------------- 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) 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 July 20, 2005, Whitney Holding Corporation issued a news release announcing its financial results for the quarter ended June 30, 2005 (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 July 20, 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: July 20, 2005 ---------------------- EXHIBIT INDEX Exhibit Number Description ---------- ------------------------------------ 99.1 News Release dated July 20, 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 July 20, 2005 WHITNEY REPORTS SECOND QUARTER 2005 EARNINGS New Orleans, Louisiana. Whitney Holding Corporation (NASDAQ-WTNY) earned $29.3 million for the quarter ended June 30, 2005, a 34% increase compared to net income of $21.9 million reported for the second quarter of 2004. Per share earnings were $.47 per basic share and $.46 per diluted share in 2005's second quarter, up 31% and 28%, respectively, from per share earnings of $.36, both basic and diluted, in the year-earlier period. Year-to-date earnings of $58.1 million in 2005 were 21% higher than the comparable period in 2004. Year-to-date per share earnings were $.95 per basic share and $.93 per diluted share in 2005, each approximately 19% above 2004's per share results. All share and per share data in this release reflect the three-for-two split of Whitney's common stock that was effective May 25, 2005. On April 22, 2005, Whitney completed its acquisition of Destin Bancshares, Inc. Destin's major subsidiary was Destin Bank, which operated ten banking centers with approximately $400 million in loans and $440 million in deposits at acquisition. The transaction was valued at approximately $115 million, with $58 million paid to Destin shareholders in cash and the remainder in Whitney stock totaling 1.3 million shares. Whitney's financial information for the second quarter of 2005 includes the results from these acquired operations since the acquisition date. Selected second quarter highlights follow: o Whitney's net interest income (TE) increased $18.2 million, or 23%, compared to the second quarter of 2004, driven by both the 12% growth in average earning assets and a wider net interest margin. The net interest margin (TE) was 4.75% for the second quarter of 2005, up 44 basis points from the year-earlier period. The current quarter's margin was 3 basis points lower than in the -MORE- 2 first quarter of 2005. The recognition of approximately $1 million of interest on the full resolution of a long-standing troubled credit in 2005's first quarter had added 5 basis points to the margin in that period. The overall yield on earning assets increased 88 basis points from the second quarter of 2004 and has improved 19 basis points from the first quarter of 2005. These changes reflect both the rise in rates that serve as benchmarks for the large 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 second quarter of 2005 were up 44 basis points from the second quarter of 2004 and 22 basis points from 2005's first quarter. There was a small shift in the funding mix toward higher-cost sources in the second quarter of 2005, reflecting in part the mix of deposits acquired with Destin Bank. Whitney has continued to manage the rate structures for its different deposit products in an effort to control the impact of the upward pressure on funding rates that has been building since 2004. o Average total loans for the quarter were up 20%, or $1.0 billion, compared to the second quarter of 2004, with approximately half coming from the recent Destin Bank acquisition and a bank acquisition in August 2004. Commercial real estate and real estate construction lending generated almost two-thirds of the overall growth, partly reflecting the composition of the acquired portfolios. Average investment securities decreased 9%, or $202 million, from the second quarter of 2004 to 2005's second quarter, with proceeds supporting loan growth. Average earning assets for the quarter were up a net 12%, or $851 million, compared to the second quarter of 2004. o Most of the net growth in earning assets compared to the second quarter of 2004 was funded by deposit growth. Noninterest-bearing demand deposits were on average 18%, or $342 million, higher in the second quarter of 2005 compared to 2004's second quarter, and total lower-cost deposits were up 10%, or $468 million. Higher-cost deposits increased 24%, or $369 million. This increase reflected both the attraction of temporary excess funds of certain larger commercial customers to treasury-management deposit products and an additional $176 million of average time deposits from acquired operations. In total, average deposits were up 13%, or $837 million, in the second quarter of 2005, with $447 million related to acquisitions. -MORE- 3 o Whitney provided $1.5 million for loan losses in the second quarter of 2005, compared with a $2.0 million provision in the second quarter of 2004. Net charge-offs totaled $.4 million in 2005's second quarter, or .03% of average loans on an annualized basis. This compared to net charge-offs of $3.2 million in the second quarter of 2004, or .25% of average loans. Whitney's credit quality had both favorable and unfavorable movement during the second quarter of 2005. There was a $3.4 million net reduction in total nonperforming loans from the end of 2005's first quarter, as collections totaling approximately $6 million exceeded the total of loans newly identified as nonperforming during the quarter. Collections on nonperformers included the full recovery of one loan in excess of $2 million. The total of loans criticized through the internal credit risk classification process, however, increased by $44 million during the second quarter of 2005. Approximately $24 million of this increase related to loans acquired with Destin Bank that have been identified for special attention, with the net impact of other rating changes mainly evident in the substandard classification. Most all of the Destin loans are performing and the total may be reduced as updated documentation is obtained for a number of these credits. Other classification changes during the period were prompted by issues with the business fundamentals of individual credits, none of which caused broader concern about the credit quality of any significant segment of the overall loan portfolio. o Noninterest income increased 4%, or $.8 million, from the second quarter of 2004. Deposit service charge income decreased 10%, or $.9 million, compared to the second quarter of 2004, although acquired operations added $.4 million to the results for 2005's second quarter. The major factor was the earnings credit allowed against service charges on certain business deposit accounts that has grown with the rise in short-term market rates. Bank card fees, both credit and debit cards, increased a combined 12%, or $.3 million, compared to 2004's second quarter, mainly reflecting higher transaction volumes. New business development was the main driver of the 6% increase in trust service fees compared to the second quarter of 2004. The Destin acquisition added $.3 million in fees from investment and insurance brokerage services to 2005's second quarter. These fees, an increase in fees earned on unused credit lines and letters of credit, and an additional $.3 million in gains on sales of surplus banking property all contributed to -MORE- 4 the overall $1.2 million increase in other noninterest income compared to the second quarter of 2004. o Noninterest expense in the second quarter of 2005 increased 13%, or $8.1 million, from 2004's second quarter. Incremental operating costs associated with Destin Bank and other banking operations acquired in August 2004 totaled approximately $3.2 million in the second quarter of 2005, and the amortization of intangibles acquired in these transactions totaled $.7 million for the period. The current quarter also included $.5 million for merger-related system conversion services related to Destin that are reported with legal and other professional fees. Personnel expense was up 12%, or $4.6 million, in total. Base pay and compensation earned under sales-based and other employee incentive programs increased a combined 10%, or $2.6 million, including approximately $1.5 million for the staff of the acquired bank operations. Compensation expense under management incentive programs increased by $1.2 million. The estimate for the annual cash incentive bonus was revised upward in the second quarter of 2005 to reflect both Whitney's financial performance to date in relation to its designated peer group and an increased emphasis on performance-based pay in the overall 2005 compensation packages for top management. Management incentive programs also include stock-based compensation that varies with changes in Whitney's stock price and the level of employee participation, among other factors. Higher costs of providing pension benefits accounted for $.2 million out of the total $.7 million, or 10%, increase in employee benefits in the second quarter of 2005, while acquired operations contributed $.3 million to the quarterly increase. The cost of acquired operations was the main factor behind the increases in net occupancy expense and equipment and data processing expense in 2005's second quarter and accounted for almost half the increase in the total for other noninterest expense categories. 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 ----------------------------------------------------------------------------------------------------------------------------- WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ----------------------------------------------------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS ----------------------------------------------------------------------------------------------------------------------------- Second Second Six Months Ended Quarter Quarter June 30 (dollars in thousands, except per share data) 2005 2004 2005 2004 --------------------------------------------------------- -------------------------------- -------------------------------- INCOME DATA Net interest income $ 94,569 $ 76,359 $ 182,988 $ 153,549 Net interest income (tax-equivalent) 96,023 77,869 185,956 156,540 Provision for loan losses 1,500 2,000 3,000 - Noninterest income 22,211 21,391 43,602 42,298 Net securities gains in noninterest income 68 - 68 - Noninterest expense 72,382 64,272 138,643 126,298 Net income 29,321 21,903 58,077 48,061 --------------------------------------------------------- -------------------------------- -------------------------------- --------------------------------------------------------- -------------------------------- -------------------------------- AVERAGE BALANCE SHEET DATA Loans $ 6,102,380 $ 5,069,304 $ 5,848,276 $ 4,988,007 Investment securities 1,947,260 2,149,211 1,963,438 2,197,417 Earning assets 8,104,745 7,253,932 7,852,525 7,214,481 Total assets 8,833,445 7,782,108 8,531,090 7,752,122 Deposits 7,086,179 6,248,685 6,840,951 6,184,271 Shareholders' equity 933,976 862,016 910,647 858,746 --------------------------------------------------------- -------------------------------- -------------------------------- --------------------------------------------------------- -------------------------------- -------------------------------- PER SHARE DATA Earnings per share Basic $ .47 $ .36 $ .95 $ .80 Diluted .46 .36 .93 .78 Cash dividends per share $ .25 $ .22 $ .48 $ .44 Book value per share, end of period $ 15.11 $ 13.76 $ 15.11 $ 13.76 Trading data High sales price $ 33.00 $ 29.86 $ 33.00 $ 29.86 Low sales price 28.65 26.35 28.44 26.35 End-of-period closing price 32.63 29.78 32.63 29.78 Trading volume 6,531,000 4,992,822 15,943,595 10,225,721 --------------------------------------------------------- -------------------------------- -------------------------------- --------------------------------------------------------- -------------------------------- -------------------------------- RATIOS Return on average assets 1.33% 1.13% 1.37% 1.25% Return on average shareholders' equity 12.59 10.22 12.86 11.25 Net interest margin 4.75 4.31 4.77 4.36 Dividend payout ratio 53.89 61.48 51.68 55.88 Average loans as a percentage of average deposits 86.12 81.13 85.49 80.66 Efficiency ratio 61.25 64.75 60.41 63.52 Allowance for loan losses as a percentage of loans, at end of period .93 1.10 .93 1.10 Nonperforming assets as a percentage of loans plus foreclosed assets and surplus property, at end of period .31 .68 .31 .68 Average shareholders' equity as a percentage of average total assets 10.57 11.08 10.67 11.08 Leverage ratio, at end of period 8.63 10.03 8.63 10.03 --------------------------------------------------------- -------------------------------- -------------------------------- 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). -MORE-
6 ------------------------------------------------------------------------------------------------------------------------------ WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ------------------------------------------------------------------------------------------------------------------------------ DAILY AVERAGE CONSOLIDATED BALANCE SHEETS ------------------------------------------------------------------------------------------------------------------------------ Second Second Six Months Ended Quarter Quarter June 30 (dollars in thousands) 2005 2004 2005 2004 -------------------------------------------------------------------------------------------- ------------------------------- ASSETS ------------------------------------------------------------- EARNING ASSETS Loans $6,102,380 $5,069,304 $5,848,276 $4,988,007 Investment securities Securities available for sale 1,721,027 1,933,898 1,736,491 1,989,032 Securities held to maturity 226,233 215,313 226,947 208,385 ------------------------------- ------------------------------- Total investment securities 1,947,260 2,149,211 1,963,438 2,197,417 ------------------------------- ------------------------------- Federal funds sold and short-term investments 26,225 18,621 21,403 15,408 Loans held for sale 28,880 16,796 19,408 13,649 ------------------------------- ------------------------------- Total earning assets 8,104,745 7,253,932 7,852,525 7,214,481 -------------------------------------------------------------------------------------------- ------------------------------- NONEARNING ASSETS Goodwill and other intangible assets 213,143 90,994 176,362 91,481 Accrued interest receivable 35,276 29,467 33,671 29,667 Other assets 538,186 464,813 524,970 474,845 Allowance for loan losses (57,905) (57,098) (56,438) (58,352) -------------------------------------------------------------------------------------------- ------------------------------- Total assets $8,833,445 $7,782,108 $8,531,090 $7,752,122 -------------------------------------------------------------------------------------------- ------------------------------- -------------------------------------------------------------------------------------------- ------------------------------- LIABILITIES ------------------------------------------------------------- INTEREST-BEARING LIABILITIES Interest-bearing deposits NOW account deposits $ 910,163 $ 793,746 $ 900,498 $ 792,778 Money market investment deposits 1,216,194 1,363,687 1,226,807 1,386,835 Savings deposits 792,377 634,595 763,784 618,679 Other time deposits 741,248 720,801 714,283 729,632 Time deposits $100,000 and over 1,139,924 791,246 1,036,986 745,022 ------------------------------- ------------------------------- Total interest-bearing deposits 4,799,906 4,304,075 4,642,358 4,272,946 ------------------------------- ------------------------------- Short-term and other borrowings 740,338 616,644 708,305 654,360 ------------------------------- ------------------------------- Total interest-bearing liabilities 5,540,244 4,920,719 5,350,663 4,927,306 -------------------------------------------------------------------------------------------- ------------------------------- NONINTEREST-BEARING LIABILITIES Noninterest-bearing deposits 2,286,273 1,944,610 2,198,593 1,911,325 Accrued interest payable 7,429 4,895 6,777 4,899 Other liabilities 65,523 49,868 64,410 49,846 ------------------------------- ------------------------------- Total liabilities 7,899,469 6,920,092 7,620,443 6,893,376 -------------------------------------------------------------------------------------------- ------------------------------- SHAREHOLDERS' EQUITY 933,976 862,016 910,647 858,746 -------------------------------------------------------------------------------------------- ------------------------------- Total liabilities and shareholders' equity $8,833,445 $7,782,108 $8,531,090 $7,752,122 -------------------------------------------------------------------------------------------- ------------------------------- -------------------------------------------------------------------------------------------- ------------------------------- EARNING ASSETS LESS INTEREST-BEARING LIABILITIES $2,564,501 $2,333,213 $2,501,862 $2,287,175 -------------------------------------------------------------------------------------------- ------------------------------- -MORE-
7 ---------------------------------------------------------------------------------------------------------------------------- WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ---------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEETS ---------------------------------------------------------------------------------------------------------------------------- June 30 December 31 June 30 (dollars in thousands) 2005 2004 2004 ---------------------------------------------------------------------------------------------------------------------------- ASSETS ---------------------------------------------------------------------- Cash and due from financial institutions $ 313,870 $ 213,751 $ 259,116 Federal funds sold and short-term investments 52,615 22,424 2,763 Loans held for sale 46,229 8,796 15,708 Investment securities Securities available for sale 1,533,334 1,763,774 1,839,838 Securities held to maturity 228,541 227,470 223,988 ------------------------------------------------------ Total investment securities 1,761,875 1,991,244 2,063,826 Loans 6,284,625 5,626,276 5,139,549 Allowance for loan losses (58,647) (54,345) (56,447) ------------------------------------------------------ Net loans 6,225,978 5,571,931 5,083,102 ------------------------------------------------------ Bank premises and equipment 157,825 156,602 147,579 Goodwill 204,089 115,771 69,164 Other intangible assets 30,849 24,240 22,963 Accrued interest receivable 31,788 28,985 25,536 Other assets 95,171 88,880 99,369 ---------------------------------------------------------------------------------------------------------------------------- Total assets $8,920,289 $8,222,624 $7,789,126 ---------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------- LIABILITIES ---------------------------------------------------------------------- Noninterest-bearing demand deposits $2,301,989 $2,111,703 $1,952,420 Interest-bearing deposits 4,867,247 4,500,904 4,388,362 ------------------------------------------------------ Total deposits 7,169,236 6,612,607 6,340,782 ------------------------------------------------------ Short-term and other borrowings 712,327 634,259 545,300 Accrued interest payable 7,130 5,032 4,762 Other liabilities 76,013 65,961 55,558 ------------------------------------------------------ Total liabilities 7,964,706 7,317,859 6,946,402 ---------------------------------------------------------------------------------------------------------------------------- SHAREHOLDERS' EQUITY ---------------------------------------------------------------------- Common stock, no par value 2,800 2,800 2,800 Capital surplus 261,569 250,793 200,413 Retained earnings 726,038 697,977 677,398 Accumulated other comprehensive income (7,063) (2,963) (20,606) Treasury stock at cost (7,207) (31,475) (465) Unearned restricted stock compensation (20,554) (12,367) (16,816) ------------------------------------------------------ Total shareholders' equity 955,583 904,765 842,724 ---------------------------------------------------------------------------------------------------------------------------- Total liabilities and shareholders' equity $8,920,289 $8,222,624 $7,789,126 ---------------------------------------------------------------------------------------------------------------------------- -MORE-
8 ------------------------------------------------------------------------------------------------------------------------------ WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ------------------------------------------------------------------------------------------------------------------------------ CONSOLIDATED STATEMENTS OF INCOME ------------------------------------------------------------------------------------------------------------------------------ Second Second Six Months Ended Quarter Quarter June 30 (dollars in thousands, except per share data) 2005 2004 2005 2004 ---------------------------------------------------------------------------------------- ------------------------------------ INTEREST INCOME Interest and fees on loans $ 94,170 $ 63,564 $ 175,911 $ 126,575 Interest and dividends on investments 19,639 22,055 39,988 45,554 Interest on federal funds sold and short-term investments 194 46 293 76 ---------------------------------------------------------------------------------------- ------------------------------------ Total interest income 114,003 85,665 216,192 172,205 ---------------------------------------------------------------------------------------- ------------------------------------ INTEREST EXPENSE Interest on deposits 15,095 8,060 25,803 16,030 Interest on short-term and other borrowings 4,339 1,246 7,401 2,626 ---------------------------------------------------------------------------------------- ------------------------------------ Total interest expense 19,434 9,306 33,204 18,656 ---------------------------------------------------------------------------------------- ------------------------------------ NET INTEREST INCOME 94,569 76,359 182,988 153,549 PROVISION FOR LOAN LOSSES 1,500 2,000 3,000 - ---------------------------------------------------------------------------------------- ------------------------------------ NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 93,069 74,359 179,988 153,549 ---------------------------------------------------------------------------------------- ------------------------------------ NONINTEREST INCOME Service charges on deposit accounts 8,551 9,452 16,591 18,768 Bank card fees 2,981 2,668 5,641 5,004 Trust service fees 2,452 2,303 4,808 4,492 Secondary mortgage market operations 1,379 1,363 2,335 2,649 Other noninterest income 6,780 5,605 14,159 11,385 Securities transactions 68 - 68 - ---------------------------------------------------------------------------------------- ------------------------------------ Total noninterest income 22,211 21,391 43,602 42,298 ---------------------------------------------------------------------------------------- ------------------------------------ NONINTEREST EXPENSE Employee compensation 33,724 29,860 64,645 58,412 Employee benefits 8,417 7,680 16,707 15,193 ---------------------------------- ------------------------------------ Total personnel 42,141 37,540 81,352 73,605 Net occupancy 5,607 4,964 10,794 9,748 Equipment and data processing 4,606 4,240 8,880 8,618 Telecommunication and postage 2,264 2,277 4,326 4,506 Corporate value and franchise taxes 1,951 1,982 3,905 3,845 Legal and other professional services 1,830 1,245 3,381 2,256 Amortization of intangibles 2,087 1,289 3,716 2,578 Other noninterest expense 11,896 10,735 22,289 21,142 ---------------------------------------------------------------------------------------- ------------------------------------ Total noninterest expense 72,382 64,272 138,643 126,298 ---------------------------------------------------------------------------------------- ------------------------------------ INCOME BEFORE INCOME TAXES 42,898 31,478 84,947 69,549 INCOME TAX EXPENSE 13,577 9,575 26,870 21,488 ---------------------------------------------------------------------------------------- ------------------------------------ NET INCOME $ 29,321 $ 21,903 $ 58,077 $ 48,061 ---------------------------------------------------------------------------------------- ------------------------------------ ---------------------------------------------------------------------------------------- ------------------------------------ EARNINGS PER SHARE Basic $ .47 $ .36 $ .95 $ .80 Diluted .46 .36 .93 .78 ---------------------------------------------------------------------------------------- ------------------------------------ ---------------------------------------------------------------------------------------- ------------------------------------ WEIGHTED-AVERAGE SHARES OUTSTANDING Basic 62,004,132 60,457,496 61,289,967 60,372,332 Diluted 63,076,155 61,467,870 62,340,266 61,379,891 ------------------------------------------------------------------------------------------------------------------------------ ---------------------------------------------------------------------------------------- ------------------------------------ CASH DIVIDENDS PER SHARE $ .25 $ .22 $ .48 $ .44 ---------------------------------------------------------------------------------------- ------------------------------------ -MORE-
9 ------------------------------------------------------------------------------------------------------------------------------- WHITNEY HOLDING CORPORATION AND SUBSIDIARIES ------------------------------------------------------------------------------------------------------------------------------- SUMMARY OF INTEREST RATES (TAX-EQUIVALENT)* ------------------------------------------------------------------------------------------------------------------------------- Second First Second Six Months Ended Quarter Quarter Quarter June 30 2005 2005 2004 2005 2004 -------------------------------------------------------------------------------------------------- -------------------------- EARNING ASSETS ------------------------------------------------------------ Loans** 6.17 % 5.93 % 5.04 % 6.05 % 5.10 % Investment securities 4.30 4.39 4.36 4.35 4.39 Federal funds sold and short-term investments 2.97 2.43 .99 2.76 .99 -------------------------------------- -------------------------- Total interest-earning assets 5.71 % 5.52 % 4.83 % 5.62 % 4.88 % -------------------------------------- -------------------------- -------------------------------------------------------------------------------------------------- -------------------------- INTEREST-BEARING LIABILITIES ------------------------------------------------------------ Interest-bearing deposits NOW account deposits .52 % .44 % .35 % .48 % .35 % Money market investment deposits .98 .73 .65 .85 .65 Savings deposits .61 .46 .31 .54 .30 Other time deposits 1.64 1.39 1.28 1.52 1.31 Time deposits $100,000 and over 2.35 1.89 1.21 2.15 1.21 -------------------------------------- -------------------------- Total interest-bearing deposits 1.26 .97 .75 1.12 .75 -------------------------------------- -------------------------- Short-term and other borrowings 2.35 1.84 .81 2.11 .81 -------------------------------------- -------------------------- Total interest-bearing liabilities 1.41 % 1.08 % .76 % 1.25 % .76 % -------------------------------------- -------------------------- -------------------------------------------------------------------------------------------------- -------------------------- NET INTEREST SPREAD (tax-equivalent) ------------------------------------------------------------ Yield on earning assets less cost of interest- bearing liabilities 4.30 % 4.44 % 4.07 % 4.37 % 4.12 % -------------------------------------- -------------------------- -------------------------------------------------------------------------------------------------- -------------------------- NET INTEREST MARGIN (tax-equivalent) ------------------------------------------------------------ Net interest income (tax-equivalent) as a percentage of average earning assets 4.75 % 4.78 % 4.31 % 4.77 % 4.36 % -------------------------------------- -------------------------- -------------------------------------------------------------------------------------------------- -------------------------- COST OF FUNDS ------------------------------------------------------------ Interest expense as a percentage of average interest- bearing liabilities plus interest-free funds .96 % .74 % .52 % .85 % .52 % -------------------------------------------------------------------------------------------------- -------------------------- * 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-
10 -------------------------------------------------------------------------------------------------------------------------------- WHITNEY HOLDING CORPORATION AND SUBSIDIARIES -------------------------------------------------------------------------------------------------------------------------------- LOAN QUALITY -------------------------------------------------------------------------------------------------------------------------------- Second Second Six Months Ended Quarter Quarter June 30 (dollars in thousands) 2005 2004 2005 2004 -------------------------------------------------------------------------------------------------------------------------------- ALLOWANCE FOR LOAN LOSSES ---------------------------------------------------------------- Allowance for loan losses at beginning of period $53,920 $57,603 $54,345 $59,475 Allowance of acquired banks 3,648 - 3,648 - Provision for loan losses 1,500 2,000 3,000 - Loans charged off (2,313) (4,097) (5,989) (5,493) Recoveries on loans previously charged off 1,892 941 3,643 2,465 ---------------------------------------------------------------- Net loans charged off (421) (3,156) (2,346) (3,028) ---------------------------------------------------------------- Allowance for loan losses at end of period $58,647 $56,447 $58,647 $56,447 ---------------------------------------------------------------- Annualized net charge-offs as a percentage of average loans .03 % .25 % .08 % .12 % Annualized gross charge-offs as a percentage of average loans .15 % .32 % .20 % .22 % Recoveries as a percentage of gross charge-offs 81.80 % 22.97 % 60.83 % 44.88 % Allowance for loan losses as a percentage of loans, at end of period .93 % 1.10 % .93 % 1.10 % ----------------------------------------------------------------
---------------------------------------------------------------- June 30 March 31 December 31 June 30 2005 2005 2004 2004 -------------------------------------------------------------------------------------------------------------------------------- NONPERFORMING ASSETS ---------------------------------------------------------------- Loans accounted for on a nonaccrual basis $18,521 $21,912 $23,597 $32,560 Restructured loans 32 36 49 74 ---------------------------------------------------------------- Total nonperforming loans 18,553 21,948 23,646 32,634 Foreclosed assets and surplus property 1,014 2,547 2,454 2,450 ---------------------------------------------------------------- Total nonperforming assets $19,567 $24,495 $26,100 $35,084 ---------------------------------------------------------------- Nonperforming assets as a percentage of loans plus foreclosed assets and surplus property, at end of period .31 % .43 % .46 % .68 % Allowance for loan losses as a percentage of nonaccruing loans, at end of period 316.65 % 246.08 % 230.30 % 173.36 % Allowance for loan losses as a percentage of nonperforming loans, at end of period 316.11 % 245.67 % 229.83 % 172.97 % Loans 90 days past due still accruing $3,185 $1,599 $3,533 $2,986 Loans 90 days past due still accruing as a percentage of loans, at end of period .05 % .03 % .06 % .06 % -------------------------------------------------------------------------------------------------------------------------------- -END-