8-K 1 secqtr068k.htm SECOND QUARTER 2006 EARNINGS RELEASE Second Quarter 2006 Earnings Release
UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


Date of Report (Date of earliest event reported):        July 27, 2006         


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 July 27, 2006, Whitney Holding Corporation issued a news release announcing its financial results for the quarter ended June 30, 2006 (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 27, 2006


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 27, 2006    


EXHIBIT INDEX


Exhibit
  
Number
Description
   
99.1
News Release dated July 27, 2006




Exhibit 99.1

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 27, 2006

WHITNEY REPORTS SECOND QUARTER 2006 EARNINGS

New Orleans, Louisiana. Whitney Holding Corporation (NASDAQ—WTNY) earned $39.4 million in the quarter ended June 30, 2006, a 34% increase compared to net income of $29.3 million reported for the second quarter of 2005. Per share earnings were $.61 per basic share and $.60 per diluted share in 2006’s second quarter, each representing a 30% increase from per share earnings of $.47 and $.46, respectively, in the year-earlier period. Year-to-date earnings of $75.6 million in 2006 were 30% higher than the comparable period in 2005. Year-to-date per share earnings were $1.18 per basic share and $1.16 per diluted share in 2006, representing increases of 24% and 25%, respectively, from the comparable per share results in 2005.
On April 13, 2006, Whitney completed its acquisition of First National Bancshares, Inc. of Bradenton, Florida (“FNB”) and its subsidiary, 1st National Bank & Trust. 1st National Bank & Trust (“1st National”) operates in the Tampa Bay area and had approximately $380 million in total assets, including $286 million of loans, and $319 million in deposits at acquisition. The Company merged 1st National into Whitney National Bank (the “Bank”) effective July 21, 2006 after completion of systems-integration work. The transaction was valued at approximately $116 million, with $41 million paid to FNB shareholders in cash and the remainder in Whitney stock totaling 2.16 million shares. The Company’s financial information for the second quarter of 2006 includes the results from these acquired operations since the acquisition date.

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HIGHLIGHTS OF FINANCIAL RESULTS
·  
Whitney’s net interest income (TE) for the second quarter of 2006 increased $26.8 million, or 28%, compared to the second quarter of 2005, driven by both the 19% increase in average earning assets and a wider net interest margin. The net interest margin (TE) was 5.09% for the second quarter of 2006, up 34 basis points from the year-earlier period. The rise in benchmark rates for the large variable-rate segment of Whitney’s loan portfolio was the main factor behind the increase of 83 basis points in the overall asset yield from the second quarter of 2005. This yield improvement came despite an increase in the percentage of lower-yielding short-term investments in the earning asset mix, which was prompted by the deployment of a significant influx of deposit funds following the two hurricanes that struck parts of Whitney’s market area in the summer of 2005. The cost of funds increased 49 basis points between the second quarters of 2006 and 2005. The post-storm deposit build-up also produced a favorable shift in the funding mix and supported Whitney’s efforts to control the impact of the upward market pressure on funding rates through management of the rate structures for different deposit products. The net interest margin for the second quarter of 2006 was up 7 basis points from the 5.02% margin in 2006’s first quarter, and growth in average earning assets led to a 7% increase in net interest income between these periods. The yield on the loan portfolio continued to rise, by 30 basis points, and, with a relatively stable mix of earning assets, drove an increase of 26 basis points in the overall earning asset yield compared to 2006’s first quarter. There was some shift in the funding mix toward higher-cost sources in the second quarter of 2006 compared to this year’s first quarter, reflecting in part the mix of deposits acquired with 1st National. The cost of funds increased 19 basis points between these periods.
·   
Average total loans for the quarter, including loans held for sale, were up 11%, or $688 million, compared to the second quarter of 2005, with approximately 4%, or $252 million, associated with the 1st National acquisition in April 2006. The loan portfolio balance at June 30, 2006, excluding the 1st National portfolio, was little changed from December 31, 2005, as the impact of advances on existing credits and a steady pace of newly originated loans was largely offset by paydowns and payoffs. Average investment securities decreased 8%, or $160 million, from the second quarter of 2005 to 2006’s second quarter, in support of average loan growth between these periods. As noted earlier, Whitney invested a significant portion of the funds from a post-storm build-up of deposits into liquidity-management securities, and average short-term investments for the second quarter of 2006 increased by $1.03 billion compared to the second quarter of 2005. Total average earning assets for the quarter were up a net 19%, or $1.56 billion, compared to the second quarter of 2005.
  
 
  
 
  
 
  
 

 
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·   
Average deposits in the second quarter of 2006 were up 24%, or $1.70 billion, compared to the second quarter of 2005, with approximately 4% related to the FNBT acquisition. A number of factors that contributed to the rapid accumulation of deposits following the 2005 hurricanes, such as the settlement of insurance claims, coupled with resource constraints and other obstacles to rebuilding, and deferrals granted on income tax installments, were still present during the second quarter of 2006. Total deposits at June 30, 2006, ignoring the deposits acquired with 1st National, were lower by $267 million, or 3%, compared to the total at December 31, 2005, evidencing in part some reduction of the post-storm accumulation. The stability of the deposits accumulated by customers in the storm-affected areas is being monitored as part of Whitney’s overall asset/liability management process. Significant additional disaster-relief funds should begin to be distributed in the storm-impacted markets later in 2006, although the rules governing these distributions have not been finalized.
·   
Whitney provided $1.0 million for loan losses in the second quarter of 2006, compared to a $1.5 million provision in the second quarter of 2005. Net charge-offs totaled $12.4 million in 2006’s second quarter, compared to $.4 million in the second quarter of 2005. The current quarter’s total included the $12.3 million charge-off of one storm-impacted commercial relationship. This relationship had been identified as impaired shortly after the storms in 2005, and a substantial impairment allowance had been established.
·   
Noninterest income decreased 4%, or $1.0 million, from the second quarter of 2005. Deposit service charge income was down 19%, or $1.6 million, compared to the second quarter of 2005. The build-up of liquidity in the deposit base after the 2005 storms continued to reduce charging opportunities in the second quarter of 2006, although the impact has abated from that felt in the first quarter of 2006 and 2005’s fourth quarter. Deposit fee potential has also declined as the earnings credit allowed against service charges on certain business deposit accounts has increased with the rise in short-term market rates. Improvements were noted in a number of other income categories, reflecting both internal growth and contributions from acquired operations.
  
 
 
 
 
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Bank card fees, both credit and debit cards, increased a combined 30%, or $.9 million, compared to 2005’s second quarter, mainly reflecting higher transaction volumes. The addition of 1st National’s trust business and ongoing customer development efforts helped increase trust service fees by 13%, or $.3 million, for the second quarter of 2006. The categories comprising other noninterest income decreased a net $.5 million compared to the second quarter of 2005 when Whitney recognized $1.0 million in gains on sales of surplus banking property and received a $.2 million distribution from the sale of an electronic transaction network in which the Bank was a member. Fees from investment and insurance brokerage services increased $.7 million compared to 2005’s second quarter, with some help from 1st National’s operations.
·   
Noninterest expense in the second quarter of 2006 increased 14%, or $10.3 million, from 2005’s second quarter. Incremental operating costs associated with 1st National totaled approximately $1.7 million in the second quarter of 2006, and the amortization of intangibles acquired in this transaction added $.4 million to expense for the current year’s period. Personnel expense increased 5%, or $2.3 million, in total. Base pay and compensation earned under sales-based and other employee incentive programs increased a combined 8%, or $2.4 million, including approximately $1.0 million for the 1st National staff. Compensation expense under management incentive programs decreased by $.6 million in the second quarter of 2006 compared to the year-earlier period, mainly related to the timing of stock-based compensation awards in each period under Whitney’s long-term incentive plan. Annual stock-based employee compensation for 2006, including the value of stock option awards which is expensed under accounting standards effective for 2006, is currently projected to be $4.5 million higher than in 2005. The Company worked diligently to revise its disaster recovery plans and operating arrangements before the start of the 2006 hurricane season and is developing longer-range plans to make its operations more resilient, with less exposure to disasters of any type. These initiatives have lead to both recurring and some nonrecurring increases in operating 
 
 
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expense in 2006, including occupancy, data processing, telecommunications and professional services, but they should also significantly reduce the direct and indirect costs associated with future natural disasters. The 24%, or $1.4 million, increase in net occupancy expense in 2006’s second quarter also reflected the sharp increase in the cost of casualty insurance coverage that is impacting businesses and individuals across the Gulf Coast region. Whitney’s annual cost of property coverage increased to approximately $4.0 million from $.5 million upon renewal in the second quarter of 2006, and the coverage limits available for wind damage were reduced significantly. During 2006, Whitney has expensed $4.0 million in disaster-related costs and casualty and operating losses, including $1.5 million recorded in the second quarter. Some additional disaster-related expense will likely be recognized during the remainder of 2006, mainly related to services to help manage insurance claims. These expenses have been reported in the total of other noninterest expense. This total for the second quarter of 2006 also included an additional $.8 million of directors’ compensation associated with the annual awards of fully-vested stock and stock options, $.8 million related to the outsourcing of the Bank’s ATM operations and $.5 million for expanded marketing activities in 2006.
 
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.
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This news release contains “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 provide projections of results of operations or of financial condition or state other forward-looking information, such as expectations about future conditions and descriptions of plans and strategies for the future. The forward-looking statements made in this release include, but may not be limited to, projections of the annual expense for stock-based compensation for 2006 and of future costs associated with previous natural disasters.
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 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 to differ from those expressed in the Company’s forward-looking statements include, but are not limited to, those outlined in Whitney’s annual report on Form 10-K for 2005.
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.
 
 
 
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WHITNEY HOLDING CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
 
 
 
Second
 
 
Second
    
Six Months Ended
 
 
 
Quarter
 
 
Quarter
 
 
June 30
(dollars in thousands, except per share data)
    
2006
    
2005
    
2006
    
2005
  
INCOME DATA
                         
Net interest income 
  
$
121,249
  
$
94,569
  
$
234,486
  
$
182,988
  
Net interest income (tax-equivalent) 
    
122,804
   
96,023
   
237,548
   
185,956
 
Provision for loan losses 
    
1,000
   
1,500
   
3,000
   
3,000
 
Noninterest income 
    
21,243
   
22,211
   
42,419
   
43,602
 
 Net securities gains in noninterest income
    
-
   
68
   
-
   
68
 
Noninterest expense 
    
82,693
   
72,382
   
161,793
   
138,643
 
Net income 
    
39,413
   
29,321
   
75,562
   
58,077
 
                           
AVERAGE BALANCE SHEET DATA
                          
Loans 
  
$
6,792,224
  
$
6,102,380
  
$
6,652,129
  
$
5,848,276
  
Investment securities 
    
1,787,210
   
1,947,260
   
1,744,575
   
1,963,438
 
Earning assets 
    
9,665,927
   
8,104,745
   
9,458,733
   
7,852,525
 
Total assets 
    
10,552,631
   
8,833,445
   
10,358,735
   
8,531,090
 
Deposits 
    
8,790,845
   
7,086,179
   
8,667,387
   
6,840,951
 
Shareholders' equity 
    
1,061,216
   
933,976
   
1,018,573
   
910,647
 
                           
PER SHARE DATA
                         
Earnings per share 
                          
 Basic
  
$
.61
  
$
.47
  
$
1.18
  
$
.95
  
 Diluted
    
.60
   
.46
   
1.16
   
.93
 
Cash dividends per share 
  
$
.27
  
$
.25
  
$
.54
  
$
.48
  
Book value per share, end of period 
  
$
16.31
  
$
15.11
  
$
16.31
  
$
15.11
  
Trading data 
                          
 High sales price
  
$
37.26
  
$
33.00
  
$
37.26
  
$
33.00
  
 Low sales price
    
33.80
   
28.65
   
27.27
   
28.44
 
 End-of-period closing price
    
35.37
   
32.63
   
35.37
   
32.63
 
 Trading volume
    
13,719,163
   
6,531,000
   
28,130,291
   
15,943,595
 
   
RATIOS
                          
Return on average assets 
    
1.50
%
  
1.33
%
  
1.47
%
  
1.37
%
Return on average shareholders' equity 
    
14.90
   
12.59
   
14.96
   
12.86
 
Net interest margin 
    
5.09
   
4.75
   
5.06
   
4.77
 
Dividend payout ratio 
    
45.04
   
53.89
   
46.17
   
51.68
 
Average loans as a percentage of average deposits 
    
77.26
   
86.12
   
76.75
   
85.49
 
Efficiency ratio 
    
57.41
   
61.25
   
57.79
   
60.41
 
Allowance for loan losses as a percentage of 
    
                   
loans, at end of period 
    
1.18
   
.93
   
1.18
   
.93
 
Nonperforming assets as a percentage of loans plus 
                          
foreclosed assets and surplus property, at end of period 
    
.83
   
.31
   
.83
   
.31
 
Average shareholders' equity as a percentage  
                          
of average total assets 
    
10.06
   
10.57
   
9.83
   
10.67
 
Leverage ratio, at end of period 
    
7.82
   
8.63
   
7.82
   
8.63
 
                           
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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WHITNEY HOLDING CORPORATION AND SUBSIDIARIES  
DAILY AVERAGE CONSOLIDATED BALANCE SHEETS
         
Second 
    
 
    
Second 
    
Six Months Ended
  
 
          
Quarter 
    
 
    
Quarter 
    
June 30
  
(dollars in thousands)
 
 
 
 
 
2006 
 
 
 
 
 
2005 
 
 
2006
    
 
    
2005 
  
ASSETS
                                            
EARNING ASSETS
                                            
   Loans
        
$
6,792,224
        
$
6,102,380
  
$
6,652,129
        
$
5,848,276
  
   Investment securities
                                            
     Securities available for sale
          
1,562,451
         
1,721,027
   
1,518,513
         
1,736,491
 
     Securities held to maturity
          
224,759
         
226,233
   
226,062
         
226,947
 
       Total investment securities
          
1,787,210
         
1,947,260
   
1,744,575
         
1,963,438
 
   Federal funds sold and short-term investments
          
1,059,708
         
26,225
   
1,031,304
         
21,403
 
   Loans held for sale
          
26,785
         
28,880
   
30,725
         
19,408
 
       Total earning assets
          
9,665,927
         
8,104,745
   
9,458,733
         
7,852,525
 
NONEARNING ASSETS
                                    
   Goodwill and other intangible assets
          
306,319
         
213,143
   
267,985
         
176,362
 
   Accrued interest receivable
          
46,752
         
35,276
   
48,114
         
33,671
 
   Other assets
          
626,239
         
538,186
   
675,495
         
524,970
 
   Allowance for loan losses
          
(92,606
)
        
(57,905
)
  
(91,592
)
        
(56,438
)
                                             
     Total assets
        
$
10,552,631
        
$
8,833,445
  
$
10,358,735
        
$
8,531,090
  
                                             
LIABILITIES
                                            
INTEREST-BEARING LIABILITIES
                                            
   Interest-bearing deposits
                                            
     NOW account deposits
        
$
1,103,044
        
$
910,163
  
$
1,097,260
        
$
900,498
  
     Money market investment deposits
          
1,191,957
         
1,216,194
   
1,149,999
         
1,226,807
 
     Savings deposits
          
1,207,309
         
792,377
   
1,195,218
         
763,784
 
     Other time deposits
          
769,823
         
741,248
   
743,715
         
714,283
 
     Time deposits $100,000 and over
          
1,376,216
         
1,139,924
   
1,314,524
         
1,036,986
 
       Total interest-bearing deposits
          
5,648,349
         
4,799,906
   
5,500,716
         
4,642,358
 
   Short-term and other borrowings
          
570,602
         
740,338
   
551,235
         
708,305
 
       Total interest-bearing liabilities
          
6,218,951
         
5,540,244
   
6,051,951
         
5,350,663
 
NONINTEREST-BEARING LIABILITIES
                                            
   Noninterest-bearing deposits
          
3,142,496
         
2,286,273
   
3,166,671
         
2,198,593
 
   Accrued interest payable
          
16,221
         
7,429
   
14,551
         
6,777
 
   Other liabilities
          
113,747
         
65,523
   
106,989
         
64,410
 
       Total liabilities
          
9,491,415
         
7,899,469
   
9,340,162
         
7,620,443
 
SHAREHOLDERS' EQUITY
          
1,061,216
         
933,976
   
1,018,573
         
910,647
 
Total liabilities and shareholders' equity
        
$
10,552,631
        
$
8,833,445
  
$
10,358,735
        
$
8,531,090
  
EARNING ASSETS LESS
                                            
   INTEREST-BEARING LIABILITIES
        
$
3,446,976
        
$
2,564,501
  
$
3,406,782
        
$
2,501,862
  
 
 
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WHITNEY HOLDING CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 
        
June 30
        
December 31
        
June 30
  
(dollars in thousands)
        
2006
        
2005
        
2005
  
ASSETS
                      
 
        
 
  
   Cash and due from financial institutions
      
$
335,158
      
$
554,827
      
$
313,870
  
   Federal funds sold and short-term investments
        
777,310
       
805,758
       
52,615
 
   Loans held for sale
        
29,189
       
46,678
       
46,229
 
   Investment securities
                                
     Securities available for sale
        
1,598,221
       
1,413,763
       
1,533,334
 
     Securities held to maturity
        
223,898
       
227,688
       
228,541
 
       Total investment securities
        
1,822,119
       
1,641,451
       
1,761,875
 
   Loans
        
6,860,746
       
6,560,597
       
6,284,625
 
     Allowance for loan losses
        
(80,715
)
      
(90,028
)
      
(58,647
)
       Net loans
        
6,780,031
       
6,470,569
       
6,225,978
 
   Bank premises and equipment
        
170,956
       
151,978
       
157,825
 
   Goodwill
        
292,297
       
204,089
       
204,089
 
   Other intangible assets
        
28,867
       
26,304
       
30,849
 
   Accrued interest receivable
        
44,640
       
52,808
       
31,788
 
   Other assets
        
147,149
       
154,544
       
95,171
 
       Total assets
      
$
10,427,716
      
$
10,109,006
      
$
8,920,289
  
 
LIABILITIES
                                
   Noninterest-bearing demand deposits
      
$
3,087,502
      
$
3,301,227
      
$
2,301,989
  
   Interest-bearing deposits
        
5,536,159
       
5,303,609
       
4,867,247
 
       Total deposits
        
8,623,661
       
8,604,836
       
7,169,236
 
                                 
   Short-term and other borrowings
        
591,606
       
433,350
       
712,327
 
   Accrued interest payable
        
14,531
       
10,538
       
7,130
 
   Other liabilities
        
125,154
       
99,239
       
76,013
 
       Total liabilities
        
9,354,952
       
9,147,963
       
7,964,706
 
SHAREHOLDERS' EQUITY
                                
   Common stock, no par value
        
2,800
       
2,800
       
2,800
 
   Capital surplus
        
334,915
       
250,174
       
241,015
 
   Retained earnings
        
779,328
       
738,655
       
726,038
 
   Accumulated other comprehensive income
        
(36,977
)
      
(21,223
)
      
(7,063
)
   Treasury stock at cost
        
(7,302
)
      
(9,363
)
      
(7,207
)
       Total shareholders' equity
        
1,072,764
       
961,043
       
955,583
 
       Total liabilities and shareholders' equity
      
$
10,427,716
      
$
10,109,006
      
$
8,920,289
  
 
 
 
-MORE-
10
 

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)
 
      
2006
        
2005
    
2006
        
2005
  
INTEREST INCOME
                                    
   Interest and fees on loans
      
$
124,710
      
$
94,170
  
$
238,160
      
$
175,911
  
   Interest and dividends on investments
        
19,176
       
19,639
   
36,926
       
39,988
 
   Interest on federal funds sold and
                                      
      short-term investments
        
12,313
       
194
   
23,105
       
293
 
     Total interest income
        
156,199
       
114,003
   
298,191
       
216,192
 
INTEREST EXPENSE
                                      
   Interest on deposits
        
29,579
       
15,095
   
53,851
       
25,803
 
   Interest on short-term and other borrowings
        
5,371
       
4,339
   
9,854
       
7,401
 
     Total interest expense
        
34,950
       
19,434
   
63,705
       
33,204
 
NET INTEREST INCOME
        
121,249
       
94,569
   
234,486
       
182,988
 
PROVISION FOR LOAN LOSSES
        
1,000
       
1,500
   
3,000
       
3,000
 
NET INTEREST INCOME AFTER PROVISION
                                      
   FOR LOAN LOSSES
        
120,249
       
93,069
   
231,486
       
179,988
 
NONINTEREST INCOME
                                      
   Service charges on deposit accounts
        
6,965
       
8,551
   
13,482
       
16,591
 
   Bank card fees
        
3,872
       
2,981
   
7,358
       
5,641
 
   Trust service fees
        
2,775
       
2,452
   
5,295
       
4,808
 
   Secondary mortgage market operations
        
1,332
       
1,379
   
2,952
       
2,335
 
   Other noninterest income
        
6,299
       
6,780
   
13,332
       
14,159
 
   Securities transactions
        
-
       
68
   
-
       
68
 
     Total noninterest income
        
21,243
       
22,211
   
42,419
       
43,602
 
NONINTEREST EXPENSE
                                      
   Employee compensation
        
35,545
       
33,724
   
70,983
       
64,645
 
   Employee benefits
        
8,893
       
8,417
   
17,729
       
16,707
 
     Total personnel
       
44,438
       
42,141
   
88,712
       
81,352
 
   Net occupancy
        
6,967
       
5,607
   
12,913
       
10,794
 
   Equipment and data processing
        
4,934
       
4,606
   
9,198
       
8,880
 
   Telecommunication and postage
       
2,579
       
2,264
   
5,246
       
4,326
 
   Corporate value and franchise taxes
        
2,252
       
1,951
   
4,396
       
3,905
 
   Legal and other professional services
        
2,753
       
1,830
   
4,264
       
3,381
 
   Amortization of intangibles
        
2,631
       
2,087
   
4,886
       
3,716
 
   Other noninterest expense
        
16,139
       
11,896
   
32,178
       
22,289
 
     Total noninterest expense
        
82,693
       
72,382
   
161,793
       
138,643
 
INCOME BEFORE INCOME TAXES
        
58,799
       
42,898
   
112,112
       
84,947
 
INCOME TAX EXPENSE
        
19,386
       
13,577
   
36,550
       
26,870
 
NET INCOME
      
$
39,413
      
$
29,321
  
$
75,562
      
$
58,077
  
EARNINGS PER SHARE
                                    
   Basic
      
$
.61
      
$
.47
  
$
1.18
      
$
.95
  
   Diluted
        
.60
       
.46
   
1.16
       
.93
 
WEIGHTED-AVERAGE SHARES OUTSTANDING
                                      
   Basic
        
64,890,893
       
62,004,132
   
63,868,697
       
61,289,967
 
   Diluted
        
66,197,108
       
63,076,155
   
65,080,031
       
62,340,266
 
CASH DIVIDENDS PER SHARE
      
$
.27
      
$
.25
  
$
.54
      
$
.48
  
 
 
 
-MORE-
11
 
 

WHITNEY HOLDING CORPORATION AND SUBSIDIARIES
SUMMARY OF INTEREST RATES (TAX-EQUIVALENT)*
 
  
Second
    
First
    
Second
    
Six Months Ended
 
  
Quarter
    
Quarter
    
Quarter
    
June 30
   
2006
    
2006
    
2005
    
2006
    
2005
  
EARNING ASSETS
                                 
                               
Loans**
  
7.35
%
  
7.05
%
  
6.17
%
  
7.20
%
  
6.05
%
Investment securities
  
4.57
    
4.46
    
4.30
    
4.52
    
4.35
  
Federal funds sold and short-term investments
  
4.66
    
4.37
    
2.97
    
4.52
    
2.76
  
          Total interest-earning assets
  
6.54
%
  
6.28
%
  
5.71
%
  
6.41
%
  
5.62
%
 
INTEREST-BEARING LIABILITIES
                              
                               
Interest-bearing deposits
                              
NOW account deposits 
  
.66
%
  
.58
%
  
.52
%
  
.62
%
  
.48
%
Money market investment deposits 
  
1.90
    
1.56
    
.98
    
1.74
    
.85
  
Savings deposits 
  
1.03
    
1.00
    
.61
    
1.01
    
.54
  
Other time deposits 
  
2.89
    
2.51
    
1.64
    
2.71
    
1.52
  
Time deposits $100,000 and over 
  
3.93
    
3.59
    
2.35
    
3.77
    
2.15
  
          Total interest-bearing deposits
  
2.10
    
1.84
    
1.26
    
1.97
    
1.12
  
                               
                               
Short-term and other borrowings
  
3.78
    
3.42
    
2.35
    
3.60
    
2.11
  
          Total interest-bearing liabilities
  
2.25
%
  
1.98
%
  
1.41
%
  
2.12
%
  
1.25
%
 
NET INTEREST SPREAD (tax-equivalent)
                              
Yield on earning assets less cost of interest-
                              
bearing liabilities 
  
4.29
%
  
4.30
%
  
4.30
%
  
4.29
%
  
4.37
%
 
NET INTEREST MARGIN (tax-equivalent)
                              
Net interest income (tax-equivalent) as a
                             
percentage of average earning assets 
  
5.09
%
  
5.02
%
  
4.75
%
  
5.06
%
  
4.77
%
 
COST OF FUNDS
                              
Interest expense as a percentage of average interest-
                              
bearing liabilities plus interest-free funds 
  
1.45
%
  
1.26
%
  
.96
%
  
1.35
%
  
.85
%
 
*   Based on a 35% tax rate.
** Net of unearned income, before deducting the allowances for loan losses and including loans held for sale and loans
     accounted for on a nonaccrual basis.
 
 
-MORE-
12
 
WHITNEY HOLDING CORPORATION AND SUBSIDIARIES
LOAN QUALITY
 
 
Second
    
Second
    
Six Months Ended
 
    
Quarter
    
Quarter
    
June 30
(dollars in thousands)
    
2006
    
2005
    
2006
    
2005
  
ALLOWANCE FOR LOAN LOSSES
                          
                           
Allowance for loan losses at beginning of period
  
$
89,209
  
$
53,920
  
$
90,028
  
$
54,345
  
Allowance of acquired banks
    
2,908
   
3,648
   
2,908
   
3,648
 
Provision for loan losses
    
1,000
   
1,500
   
3,000
   
3,000
 
Loans charged off
   
(13,514
)
  
(2,313
)
  
(17,143
)
  
(5,989
)
Recoveries on loans previously charged off
    
1,112
   
1,892
   
1,922
   
3,643
 
    Net loans charged off
   
(12,402
)
  
(421
)
  
(15,221
)
  
(2,346
)
Allowance for loan losses at end of period
  
$
80,715
  
$
58,647
  
$
80,715
  
$
58,647
  
           
         
 
Annualized net charge-offs as a percentage
                          
   of average loans
    
.73
%
  
.03
%
  
.46
%
  
.08
%
                           
Annualized gross charge-offs as a percentage of
                          
   average loans
    
.80
%
  
.15
%
  
.52
%
  
.20
%
                           
Recoveries as a percentage of gross charge-offs
    
8.23
%
  
81.80
%
  
11.21
%
  
60.83
%
                           
Allowance for loan losses as a percentage of
                         
   loans, at end of period
    
1.18
%
  
.93
%
  
1.18
%
  
.93
%
                           
                           
 
    
June 30
    
March 31
    
December 31
    
June 30
  
     
2006
    
2006
    
2005
    
2005
  
NONPERFORMING ASSETS
                          
                           
Loans accounted for on a nonaccrual basis
  
$
56,188
  
$
65,494
  
$
65,565
  
$
18,521
  
Restructured loans
    
-
   
28
   
30
   
32
 
     Total nonperforming loans
    
56,188
   
65,522
   
65,595
   
18,553
 
Foreclosed assets and surplus property
    
695
   
652
   
1,708
   
1,014
 
     Total nonperforming assets
  
$
56,883
  
$
66,174
  
$
67,303
  
$
19,567
  
                           
Nonperforming assets as a percentage of loans plus
                
       
   foreclosed assets and surplus property, at end of period
    
.83
%
  
1.02
%
  
1.03
%
  
.31
%
                           
Allowance for loan losses as a percentage of
                         
   nonaccruing loans, at end of period
    
144
%
  
136
%
  
137
%
  
317
%
                           
Allowance for loan losses as a percentage of
                         
   nonperforming loans, at end of period
    
144
%
  
136
%
  
137
%
  
316
%
                           
Loans 90 days past due still accruing
  
$
7,354
  
$
3,956
  
$
13,728
  
$
3,185
  
                           
Loans 90 days past due still accruing as a
                          
   percentage of loans, at end of period
    
.11
%
  
.06
%
  
.21
%
  
.05
%
 
 
-END-