EX-99.1 2 ex991.htm EXHIBIT 99.1 ex991.htm
John M. Turner, Jr.
President

FPKCCW Small & Mid-Cap Bank and Insurance Conference
June 17, 2008
New York
 
 

 
John M. Turner, Jr.
President
 
 

 
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.
 
 

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

 
A Renewed Strategic Vision
Updated our Strategic Plan
Reviewed and challenged:
 Where we’ve been
 Where we are today
 Where we believe Whitney should go
Mission Statement
Guiding Principles
 
 
 

 
Focus & Discipline: A Key To Continued Success
 Focus on segmentation
  Commercial & Business Banking
 Balance sheet management
 Focus on growing fee income
 Reduction of expenses
 Credit remains a core strength
 Continued geographic
 diversification
 Capital management
 
 

 
1Q08 Earnings
 Net income $30 million
 Earnings per share (diluted)
 
$.45
 Results include:
  A $2.3 million gain from the VISA IPO
  A $1.4 million gain from the sale of
 pre-1933 assets
  A $1.0 million reduction to expense
 from the reversal of the VISA liability
 in 4Q07
  Provision expense of $14.0 million
 Remain a well-capitalized
 company
  1.6 million shares repurchased
  Increased quarterly dividend
  Tangible capital ratio 8.32%
 Net interest margin of 4.64%
 
1Q08
4Q07
(Period-end)
   
Total Assets
$10.8B
$11.0B
Total Loans
$7.7B
$7.6B
Total Deposits
$8.3B
$8.6B
     
Net Income
$29.9MM
$30.2MM
E.P.S. (diluted)
$.45
$.45
 
 

 
Cost Control and Efficiencies
§ Whitney’s strategic focus requires
 that we
address process inefficiencies
 and
improve automation in priority
 areas
§ Normalized expenses down 2% from
 1Q07
§ Strategic investments
 § Opened new offices
 § Offered additional products and services
 § Updated technology
 Will continue expense control
 measures for the foreseeable future
($s in
millions)
1Q08
4Q07
1Q07
Personnel
Expense
$47.4
$48.2
$47.1
Net
Occupancy
Expense
8.6
8.0
8.1
Equipment
& DP
6.2
5.7
5.9
Other
Noninterest
Expense
21.7
23.9
25.3
Total
Noninterest
Expense
$83.9
$85.8
$86.4
 
 

 
* NIM remains near the top of the
 peer group
* Active management of loan and
 deposit pricing
* Liquidity in the deposit base
* Moderately asset-sensitive
* Loan portfolio - 54% variable rate
  (29% tied to Libor; 25% tied to Prime)
* Benefiting from wider
 Prime/Libor spread
  Approximately 7bps benefit in
 1Q08 compared to normal spread
Net Interest Margin - Asset Sensitive
1Q08 Average Balances
1Q08 NIM 4.64%
1Q07 NIM 5.08%
 
 

 
Commercial and Business Banking Focus
 Commercial portfolio 83%
  46% CRE
  37.5% C&I
 Consumer portfolio 17%
  12% Residential RE
  4% Individual
 No Indirect portfolio
 No meaningful exposure to
 subprime home mortgage loans
 Minimal Credit Card portfolio
  $44 million
 Oil & gas approximately 10%
 Real Estate portfolio diversified
 by geography
At 3/31/08
 
 

 
Diversified By Geography
Total Loans $7.7 billion
  37% serviced in metro New Orleans
  18% serviced in southwest LA
  18% serviced in Florida
  7% serviced from the panhandle
  11% serviced from the Tampa Bay metro
 area
  16% serviced in Houston
  11% serviced in Alabama/Mississippi
  Loan growth supported by economic
 and market conditions in Texas,
 Alabama and Louisiana markets
 outside the metro New Orleans area
  6% total loan growth from a year
 earlier
  29% growth in Houston
  16% growth in southwestern LA
  Decrease of approximately 4% in
 loans serviced from Florida
At 3/31/08; period-end
 
 

 
Commercial Real Estate Diversified
($s in
millions)
LA
AL/MS
FL
TX
Total
Residential
Construction
81.8
42.4
69.9
85.1
$279.2
Commercial
construction,
land & land
development
419.3
224.9
426.9
355.3
$1,426.5
Owner-
occupied
CRE
459.1
70.6
176.4
87.1
$793.2
Nonowner-
occupied
CRE
477.4
104.0
317.9
134.8
$1,034.1
Total CRE
$1,437.6
$441.9
$991.1
$662.3
$3,533.0
 Commercial real estate
 exposure diversified
  41% LA
  28% FL
  19% TX
  12% AL/MS
At 3/31/08
 
 

 
Florida Loan Portfolio Facts
 Total portfolio approximately $1.4 billion
  Approximately $540 million in panhandle
  Approximately $850 million in Tampa Bay area
 CRE portfolio totals $991 million
  Residential construction $70 million
 Lot loans = 12% of total FL portfolio
 Undeveloped land loans = 7% of total FL portfolio
 13% of total FL portfolio is criticized
At 3/31/08
 
 

 
All Florida Portfolios Are Not The Same
 All Florida portfolios are not the same
  Underwriting standards vary
  Relationship banking is our focus
 All Florida loans are not troubled
  87% of our Florida portfolio is not criticized
 All loans in Florida were not made at 100% LTV
 All Florida loans are not collateral dependent
  Many have been subject to ongoing amortization
  Many guarantors have adequate liquidity and cash flows to
 support the debt
 All collateral values have not dropped at least 50%
 
 

 
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
  Multiple controls within our credit culture
  An independent credit review function assesses the
 accuracy of officer ratings, timeliness of rating
 changes, performs concurrent reviews
 
 

 
 Prompt identification of problem
 loans leads to increased level of
 downgrades, criticized and
 nonperforming loans
 5% of total loans are criticized
  13% of FL loans are criticized
  Approximately 1/3rd of the
 criticized are lots and
 undeveloped land
  6% AL/MS loans are criticized
  3% TX loans are criticized
  3% LA loans are criticized
 Increase of $87 million in
 criticized during 1Q08
  Approximately 70% from 4
 credits, each in a different
 geography, each in a different
 industry, all rated special mention
$s in millions
Prompt Identification of Problem Loans
NPAs are included in total criticized portfolio
Criticized loan portfolio
(by risk rating)
Criticized loan portfolio
(by geography)
At 3/31/08
 
 

 
 NPAs = $151 million at 3/31/08
  NPLs = $139 million
  ORE = $12 million
 Handful of larger loans can
 significantly impact our ratios
  NPA ratio 1.96%
  Reserve coverage ratio .66%
 Approximately half of NPLs from
 Florida
 4 larger credits have impacted NPLs
 since 6/30/07
  Different geographies
  Different industries
  Today these credits = $36 million or 47bps
 of the NPA ratio
Thorough Workout Process
NPLs by geography (at 3/31/08)
 
 

 
Adequately Reserved For Inherent Loss
 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
 Based on estimates of the inherent loss in the portfolio, we believe we are adequately
 reserved
Reserves/loans %
 
 

 
Historical Trend: Healthy Level of Recoveries
Percent Net Charge-offs to Average Loans
 Higher level in 1Q08 as we
 took charge-offs for some of
 the inherent losses we
 reserved for in earlier
 periods
 Net charge-offs historically
 at or below peer levels given
 a higher level of recoveries
 
 

 
Sound Capital Levels
 
3/31/08
12/31/07
3/31/07
Equity to
Assets
11.39%
11.73%
11.30%
Tangible
Equity to
Assets
8.32%
8.24%
8.22%
Tier I
Leverage
8.45%
8.79%
9.02%
 
 

 
Acquisitions Are Important To Our Growth
§ I-10/Gulf Coast
 Strategy has
 
served Whitney
 well
§ It is now time to
 move on to the
 
next phase of
 our acquisition
 strategy
§ We will
 emphasize
 markets in
 larger cities
 from Texas
 throughout the
 southeast
Represent possible future Whitney expansion
 
 

 
Benefits Of Our Expansion Efforts
 Growth markets in Houston and southwest Louisiana
 “offset” stressed markets in Florida
 Growth in 1Q08 came mainly from Houston,
 however all pipelines look good
 Outlook for Houston, southwest Louisiana and south
 Alabama is positive
 Greater New Orleans economy is showing some
 positive signs
  Construction, energy services, maritime construction
 industries all doing well
 
 

 
Parish National Corporation
Parish National To Merge With Whitney
 
 

 
Financial data as of 3/31/08; Northshore market: St. Tammany, Tangipahoa and Washington parishes
Parish National Corporation At-A-Glance
 40 year-old Northshore Bank
 Business banking focus
 Total Assets:
 $765.2 million
 Total Loans:
 $580 million
 Total Deposits:
 $679 million
 2007 Net Income:
 $8 million
 Northshore market share:
 9.6%
(At June 30, 2007)
 17 locations
 
 

 
# of Offices
Target
WNB
Total
St. Tammany Parish
6
6
12
Tangipahoa Parish
3
1
4
Washington Parish
2
0
2
Jefferson Parish
3
15
18
Orleans Parish
1
18
19
Alabama (Fairhope)
1
0
1
Florida (Destin)
1
5
6
Total
17
45
62
Total current Whitney branches:153 (Texas, Louisiana, Mississippi, Alabama and Florida)
Parish National/Whitney Locations
 
 

 
* LTM = last 12 months as of 3/31/08
Parish National - Deal Metrics
 Parish National shareholders will receive stock and/or cash of
 
approximately $165 million
  No more than 60% in cash
  No more than 45% in Whitney stock
 2.7x book value
 17.8x LTM earnings
 Expected fourth quarter 2008 closing
 Expect immediate earnings accretion
 Expect to keep members of current management
 Will reduce Whitney capital ratios; still remain well-capitalized
 Transaction subject to due diligence, Parish National shareholder
 approval, regulatory approval, other closing conditions
 
 

 
Why this acquisition?
 This acquisition helps us meet several strategic plan initiatives
 
  Attractive market
  Improve market share in growing Northshore market
  Refocusing on our roots
  Leverage New Orleans franchise and improve market share
  Target provides a cultural fit with our desired commercial and
 business segments
  Increase existing and future access to lower cost funding
  19% noninterest-bearing deposits
 
 

 
* New Orleans MSA: Jefferson, Orleans,
Plaquemines, St. Bernard, St. Charles, St.
John the Baptist and St. Tammany parishes
Source: www.fdic.gov
Improved Market Share
 New Orleans MSA*
 share increases to
 16.0%
(from 14.05%)
 
 1. Capital One: 28.02%
 2. JPM: 18.55%
 3. Whitney: 16.0%
 4. Regions 10.74%
 
 

 
Refocusing On Our Roots
 Leveraging hometown opportunities
  Opened 3 new offices
 
 
 
 
 Striving for increased market share
 Focused on being the leading business bank in
 our markets
Marrero
Hammond
LaPlace
 
 

 
 Service
 Knowledge
 Relationship-focus
 Friendly
 Community-conscious
 
 

 
John M. Turner, Jr.
President

FPKCCW Small & Mid-Cap Bank and Insurance Conference
June 17, 2008
New York