EX-99.1 2 kbwpresentation.htm EXHIBIT 99.1
Exhibit 99.1
 
KBW Regional Bank Conference
March 1, 2007
Tom Callicutt, EVP and CFO
Lewis Rogers, EVP, Credit Administration
 

 
Forward-Looking Statements
     This presentation may include forward-looking statements containing
expectations about future conditions and descriptions of future plans
and strategies.  Whitney's ability to accurately predict the effects of
future plans or strategies is inherently limited such that 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 forward-looking statements are
available in Whitney’s filings with the Securities and Exchange
Commission.  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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At 12/31/06
A Growing, Diversified Company
$10.2B in Assets
$7.1B in Loans
$8.4B in Deposits
Strong NIM (5.11% YTD)
Solid credit measures
123-year old name started in New Orleans 
Over 150 locations across 5 states
Focus on Relationship Banking
 
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Potential Expansion Markets
Northshore
Following the Flow of Commerce
 
4

 
Geographic Diversification Through Acquisitions
Recent acquisition activity focused on high-growth Florida
markets
Signature Holding Corp. (St. Petersburg) acquisition announced October 5th.
(7 locations, $220MM in deposits)
First National Bancshares (Bradenton) acquisition completed April, 2006.
(9 locations, $319MM in deposits)
Destin Bancshares (Destin/Pensacola)
acquisition completed April, 2005.
(10 locations, $440MM in deposits)
Madison Bancshares (Palm Harbor)
acquisition completed August, 2004.
(4 locations, $177MM in deposits)
 
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Earnings Update
 
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4Q’06 Earnings
Earnings per share (diluted) --- $.51
Net income --- $33.9MM
Include approximately $4.9MM in expenses associated with the 2005
hurricanes
Resiliency initiatives totaled approximately $2.9MM
$1.6MM recurring; $1.3MM periodic or nonrecurring
Insurance coverage premium increase $.9MM
Expensed disaster response costs, insurance claim management fees and
casualty and operating losses $1.1MM
Linked-quarter loan growth up 3%
Growth mainly from commercial activity and demand from private
banking customers in  Louisiana and Texas
Louisiana growth not from rebuilding activity
Louisiana +4%; Texas +6%; Florida, Alabama flat
Deposits
Period-end deposits up, average deposits down linked-quarter
Period-end growth related to normal seasonal year-end build up not
additional government funding for storm losses.
 
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$2.3
$2.8
$3.2
$3.6
$4.2
$4.5
$4.4
$4.6
$5.2
$6.1
$6.5
$6.8
$6.8
Pre-storms
$7.0
Mixed Lending Environment in 2006
Robust Production; Some Quarters Offset By Payoffs
 
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$3.8
$4.0
$4.2
$4.5
$4.9
$5.5
$5.8
$5.9
$6.3
$7.2
$8.5
$8.8
$8.4
Although the timing cannot be predicted, some run-off of the post-storm deposit accumulation has been expected as the recovery process
continues, the inflows from insurance proceeds diminish and the initial disaster-assistance programs are completed. Significant additional
government funds to cover uninsured property losses and to support the rebuilding process are becoming available in the storm-impacted
markets, but only limited distributions have been made.
Pre-storms
26%
27%
27%
27%
27%
26%
28%
30%
31%
34%
37%
36%
35%
$8.2
35%
Steady Growth In Deposits Multiplied Post Storms
 
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Source: Louisiana Recovery Authority
http://www.rememberrebirth.org/ritadocs/Ritadata091906update.pdf
Additional Government Funds
Louisiana Recovery Authority
$10.4B available for Louisiana Community Development
Block Grants
$8.1B available through the Road Home Program
$350MM allocated to businesses
$2.0B allocated for infrastructure rebuilding/repair
$1.5B available for Hazard Mitigation Grant Program
$1.2B available through the Road Home Program
$330MM allocated for infrastructure and hazard mitigation
 
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Source: The Road Home Program; as of February 15, 2007
LRA Distributions Limited
An estimated 123,000 homeowners are eligible for up to
$150,000 in uncompensated damages
Total available: $7.5B
Applications received: 107,739
Closings concluded: 632
Average award paid: $64,439
Total paid to-date: $40.7MM
Calculated claims (unpaid): 37,369
Benefit options chosen
Keep former home: 68.5%
Rebuild in Louisiana: 11.5%
Rebuild out of state: 1.5%
 
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Continue to Report a Strong, Growing NIM
4Q06 NIM --- 5.14%
2006 NIM --- 5.11% (Rank 1st in WTNY peer group)
Improved earning asset mix
Growth through acquisitions
Lower cost of deposits in Louisiana markets allows us to fund
loans in higher-priced deposit markets of Florida, Texas and
Alabama
Higher short-term market interest rates
Active management of loan and deposit pricing
Liquidity in the deposit base
 
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Focus On Growing Fee-Based Businesses
Service Charges on Deposits is the
largest component of fee income
Fees are “seasonal” as charges are
based on movement in interest rates and
in balances carried by customers
Expanded presence in fee-based
businesses
Trust - Positioned relationship officers to
attract and service trust and wealth
management customers across all
markets
Acquisitions have added to fee
income
Trust - (First National Bancshares)
Investment services - (Destin
Bancshares)
Insurance services - (Destin
Bancshares)
Treasury Management
 
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Expense Levels Higher in New Operating Environment
Plans designed to make the company’s operations more
resilient with less exposure to disasters were implemented
in 2006
Relocated mainframe computers and critical servers
Upgraded telecommunications systems using more modern technology
and added redundancy with multiple vendors
Incurred expenses associated with operating in a
post-storm environment
Contingency housing contracts
Professional fees
Insurance
Employee pay scales
Resumed or initiated projects to enhance systems and
products
Resumed maintenance and repair projects deferred after
the storms
 
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Asset Quality
 
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At 12/31/06
Diversified Loan Portfolio
Commercial portfolio 83%,
Consumer portfolio
17% of total loans
Less diversification
But, less credit issues
post-storms
No Indirect portfolio
Minimal Credit Card
portfolio
Commercial customers 
diversified by industry
Real Estate portfolio
diversified by geography
 
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Majority of loans to commercial customers had little to
positive impact from the storm, and mortgage customers required to have insurance.
Impact of Storms on Credit Quality
Continual Assessment Process
All criticized loans and larger loans will continue to be reviewed
each
quarter
There will be fewer and fewer unreviewed loans and less need
for an
overlay process
Added $31MM to the Allowance after assessment of
the storm’s impact
The company does not segregate hurricane-impacted loans from
Therefore, there is no separately identified hurricane-related allowance
its normal credit-by-credit allowance building process
 
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Working Through Nonperforming Assets Post Storms
   
NPA
ratio:         .48%           .45%         .55%        .77%         .95%        .62%         .46%        1.03%       1.02%      .83%           .80%        .81%
Pre-storms
 
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Loans Internally Classified as Having Above Normal Credit Risks 
Pre-storms
Post-storms
 
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Net Charge-Offs At or Below Peers
Percent Net Charge-offs to Average Loans
Note: Increase in 2Q’06 net charge-offs related to one storm-impacted commercial relationship.  Relationship
identified as impaired shortly after storms in 2005 and a substantial impairment allowance had been
established.
 
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  1.24%          1.21%         1.33%         1.59%        1.48%         1.22%        .97%          1.37%         1.37%        1.18%         1.09%        1.08%
Adequate Allowance for Loan Losses
Pre-storms
 
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Length of recovery period
Long-term economic impact
Rebuilding of public infrastructure
Government, private or philanthropic
investment
Population and economic contraction
Availability and affordability of insurance
Reminder: Over the last decade Whitney and many 
of its customers have diversified outside of the New Orleans area, minimizing risk.
Portfolio Risks and Uncertainties
 
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Post-Katrina Update
Greater New Orleans
 
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Greater New Orleans Metro Area
 
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Sources of information:  N.O. Metropolitan Convention & Visitors Bureau, N.O. Times-Picayune,
New Orleans Economy: Positive Impacts
MARDI GRAS 2007
Attendance at near pre-Katrina levels
700,000-800,000 estimated Carnival visitors
Hotel occupancy was as high as 95%
with some hotels at 100% occupancy
More hotel rooms and rooms available to
tourists
Re-opening the Louisiana Superdome
New Orleans Saints home and playoff games
Bayou Classic and Sugar Bowl
Conventions and festivals returning
Convention Center repaired/refurbished
 
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Sources of information:  N.O. Metropolitan Convention & Visitors Bureau, N.O. Times-Picayune,
New Orleans Economy: Yet To Be Fixed
Education
New Orleans Public schools slow to re-open 
Recovery District schools lack essential
facilities and teaching tools
Charter schools have been “successful”
to-date
Housing
Criminal Justice System
Healthcare
Insurance
 
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Corporate Overview
 
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Our mission is to deliver extraordinary value and superior results to our
our customers and shareholders, while providing leadership to our local communities and outstanding career opportunities to our valued employees.  We do this within the framework of our three guiding principles:  soundness, profitability, and growth, in that order of priority.
Soundness – This ensures our continuity and promotes the trust of our
customers, shareholders and communities.
Profitability – We focus on profitability, since it is not only a gauge of
our success, but ensures that we will have the capital we need to
continue to evolve and improve in the future.
Growth – Growth will result when we exercise leadership and diligently
apply sound, profitable strategies to our local market opportunities.
We Will Continue to Operate Within the Guidelines of Our Mission
 
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Sound Capital Levels
4Q06 Leverage ratio 8.76%
Dividend payout ratio 53% (of fourth quarter 2006 diluted earnings per share)
Dividend yield 3.3% (based on Whitney’s February 20, 2006 closing price)
 
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Source: Yahoo.com/finance
Trading At A Slight Discount To Peers
 
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Whitney Today
Continuing geographic diversification through acquisitions in
high-growth markets
Operational resiliency
Strong NIM with a focus on building fee-based
business lines
Asset quality trends are showing signs of
improvement reflecting sustained, better
than anticipated performance
Greater New Orleans markets still have a lot
of work to do, but progress is being made in
rebuilding post-Katrina
Strong level of capital allows diversification
and ability to endure market downturns
 
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Focus On The Whitney Banker
 
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KBW Regional Bank Conference
March 1, 2007
Tom Callicutt, EVP and CFO
Lewis Rogers, EVP, Credit Administration
 
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