EX-99.1 2 ex991.htm EXHIBIT 99.1 ex991.htm
Exhibit 99.1
 
Whitney Holding Corporation

KBW Regional Bank Conference
February 28, 2008
John C. Hope III, President & COO
Thomas L. Callicutt, Jr., EVP and CFO
Lewis P. 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.
 
 

 
Thomas L. Callicutt, Jr.
Chief Financial Officer
 
 

 
A Growing, Diversified Company
125-year old name started in New Orleans
Weathered many types of storms
Corporate philosophy:
 Soundness
 Profitability
 Growth
 
In that order of priority
Over 150 locations across 5 states
Focus on Relationship Banking
 
“It Takes a Whitney Banker”
 
 

 
2007 Earnings Summary
• Net income $151 million
• Earnings per share (diluted) $2.23
• Merger with Signature Financial
 Holdings in St. Petersburg, FL
 
completed March 2, 2007
• Results include a $31.3 million, or
 $.29 per diluted share, gain from
 the
settlement on insurance claims
 arising from 2005 hurricanes
• $17.0 million provision for
 credit losses
• 1.9 million shares repurchased
 in 4Q07
 
2007
2006
(Period-end)
   
Total Assets
$11.0B
$10.2B
Total Loans
$7.6B
$7.0B
Total Deposits
$8.6B
$8.4B
     
Net Income
$151MM
$145MM
E.P.S. (diluted)
$2.23
$2.20
 
 

 
* NIM remains at the top of the peer group
* Loan portfolio - 53% variable rate (28% tied to Libor; 25% tied to Prime)
* Shift in funding mix from DDA to higher cost deposits
* Active management of loan and deposit pricing
* Liquidity in the deposit base
* Moderately asset-sensitive
 +100bp instantaneous change in rates ->5.2% increase in annual net interest income**
  -100bp instantaneous change in rates -> 5.6% decrease in annual net interest income**
Net Interest Margin - Asset Sensitive
4Q07 Average Balances
** Change from base case simulation
** Change from base case simulation
 
 

 
Emphasis On Fee-Based Business Growth
• Fees up 12.5% from 2006 (excludes insurance gain)
 – Improvement noted in all recurring revenue sources
• Service Charges on Deposits is the largest component
 of fee income
 – Deposit service charges up 9% from a year earlier
• Bank card fees increased 10% from a year ago
• Expanded presence in fee-based businesses
 – Trust service fees up 15% from 2006
 – Positioned relationship officers to attract and service
 trust and wealth management customers across all
 markets
• Strategic initiatives emphasize growth in
 noninterest income and diversification of
 revenue sources
 
 

 
• Total noninterest expense up 3% from 2006
 – Includes impact from Signature merger
• Expenses currently reflect a more normal level of activity
• Efficiency ratio at 62% (normalized for insurance gain)
• Current level of expenses is being addressed
 – Total noninterest expense in 4Q07 decreased 2% from a year earlier and 3%
 from 3Q07
• Recent cost control programs that are part of an ongoing strategic
 review process are reflected in these results and are expected to
 benefit expense levels in 2008
Strategic Review Includes Cost Control Programs
 
 

 
Sound Capital Levels
 
12/31/07
Equity to
Assets
11.51%
Tangible
Equity to
Assets
8.24%
Tier I
Leverage
8.79%
 
 

 
New Orleans Update
• Tourism, conventions, festivals and sporting events
 back on track in 2008
 – Sugar Bowl
 – BCS Championship
 – Mardi Gras
 – NBA All-Star Game
 – PGA Tour
 – French Quarter Festival
 – Jazz Festival
• Road Home program continuing to pay benefits
 
 

 
Lewis P. Rogers
Credit Administration
 
 

 
Commercial and Business Banking Focus
• Commercial portfolio 83%
• Consumer portfolio 17%
• No Indirect portfolio
• No meaningful exposure to subprime home mortgage loans
• Minimal Credit Card portfolio
• Commercial customers diversified by industry
 – Oil & gas approximately 10%
• Real Estate portfolio diversified by geography
 
 

 
Diversified By Geography
Total Loans $7.6 billion
 – 37% serviced in metro New Orleans
 – 15% serviced in Houston
 – 18% serviced in Florida
 • 7% serviced from the panhandle
 • 11% serviced from the Tampa Bay metro area
 – Loan growth supported by economic and market
 conditions in Texas, Alabama and Louisiana
 markets outside the metro New Orleans area
 • 8% increase in total loan growth from a year
 earlier
 – 3% associated with the Signature merger
 – 20% growth in Houston
 – 14% growth in southwestern LA
 – Decrease of approximately $100 million in loans
 serviced from Florida since 12/31/06
(excludes merger)
At 12/31/07
At 12/31/07
Loan Mix by Geography
* Loans serviced
 
 

 
A Strong Monitoring Process Is Key
One of our core strengths is understanding and
 managing credit risk
 – Seasoned, well understood credit culture
 – Consistent application and monitoring of standards
 throughout the Company
 – Lending officers are responsible for ongoing
 monitoring and assignment of risk ratings to
 individual loans based on established guidelines
 – An independent credit review function assesses the
 accuracy of officer ratings, timeliness of rating
 changes, performs concurrent reviews
 
 

 
In millions
Loans Internally Classified as Having Above Normal Credit Risks
- 40% residential development, investment and other residential purpose loans
 (Produced most of the overall net increase during the year)
- 30% nonresidential RE loans
 (Underlying collateral fairly evenly divided between income-producing and owner-occupied properties)
- 25% C&I loans
 (No significant concentrations related to industries or markets)
NPAs are included in total criticized portfolio
NPAs are included in total criticized portfolio
As of 12/31/07
As of 12/31/07
 
 

 
Prompt Identification Of Risk
• 4Q07 increase:
 – Predominantly from residential-related loans mainly in
 Florida and Alabama
 – Over half of these loans had been included in criticized loans
 in earlier periods
 
 

 
Historical Trend: Net Charge-Offs At or Below Peers
Percent Net Charge-offs to Average Loans
 
 

 
Allowance For Loan Losses
• Methodology for determining the allowance is a
 consistent process
 – Important factors are re-evaluated quarterly to respond to
 changing conditions
• Allowance encompasses three elements
 – Allowances established for losses on criticized loans
 – Allowances based on historical loss experience
 • Loans with acceptable credit quality
 • Groups of homogenous loans not individually rated
 – Allowances based on general economic conditions
• Allowance is built each quarter from the bottom up in
 determining loan loss provision
 
 

 
Allowance for Loan Losses
 
 

 
Strong Credit Culture
• Multiple controls within our credit culture
• Weekly loan committee process
• No individual lending authority over $2MM
 
(relationship)
• Prompt identification of problem loans
• Thorough work-out process
• Healthy level of recoveries
 
 

 
John C. Hope III
President & Chief Operating Officer
 
 

 
Whitney Is A Very Good, Very Strong Bank
• Strong credit culture
• Strong NIM
• Strong balance sheet and solid capital position
• Operational resiliency
• Geographic diversification
 
 

 
Currently Faced With Challenging Environment
§ The net interest margin is already the top in its peer group in
 the midst of an unfavorable rate environment
§ Balance sheet growth is slow due to the current business cycle
§ Lower credit costs are no longer a contributor to earnings
§ Fee-based businesses are not mature enough to drive earnings
 today
§ Resource constraints force us to make choices about
 technology and branch infrastructure
§ Efficiency ratio is too high for a commercial, net interest
 margin-dependent bank
§ Katrina and industry issues have impacted the company
 
 

 
Focus & Discipline: A Key To Continued Success
• Balance sheet management
 – Less vulnerable to changes in interest rates
• Capital management
• Credit remains a core strength
• Reduction of expenses
• Focus on segmentation
 – Commercial & Business Banking
• Branch rationalization and realignment
 – Branch closings and openings
• Focus on growing fee income
• Continued geographic diversification
 
 

 
Revenue Generation
• Trust & Wealth Management
• Mortgage Banking
• Treasury Management
• Card Services
• Acquisitions have added to
 existing business or provided new
 lines of business
 
 

 
Acquisitions Are Important To Our Growth
• Since 1994
 successfully
 merged
20 banks
 – Assets: $3.7B
 – Loans: $2.3B
 – Deposits: $3.4B
 – States: 5
 – Branches: 114
 – FTE: 1,450
• Following the flow
 of commerce
• Expand our footprint
 even wider
• Take advantage of
 any opportunity
Represent possible future Whitney expansion
Represent possible future Whitney expansion
 
 

 
Whitney’s Mission Will Not Change
 Our mission is to deliver extraordinary value and
 service, along with superior results, to 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.
 
 

 
Whitney’s Guiding Principles Will Not Change
• 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.
 
 

 
Focused On A Long-Term Strategy
• Only a FEW banks have the
 ability to transform
 themselves
 – Focus
 – Execution
 – Will
• Working towards
 maintaining a level of
 consistent, quality earnings
 over time
• Difficulties and challenges
 will need to be overcome
• We have a good start and a
 great group of bankers
 
 

 
• Service
• Knowledge
• Relationship-focus
• Friendly
• Community-conscious
 
 

 
Whitney Holding Corporation

KBW Regional Bank Conference
February 28, 2008
John C. Hope III, President & COO
Thomas L. Callicutt, Jr., EVP and CFO
Lewis P. Rogers, EVP Credit Administration