EX-9.01 2 qtr408earnings.htm WHC 4TH QUARTER 2008 qtr408earnings.htm
Ex. 99.1 
 

WHC 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
 
Trisha Voltz Carlson
  
January 28, 2009
 
504/299-5208
    
 
tcarlson@whitneybank.com
    

WHITNEY REPORTS 2008 FOURTH QUARTER AND ANNUAL EARNINGS

New Orleans, Louisiana.  Whitney Holding Corporation’s (NASDAQ—WTNY) net income available to common shareholders totaled $8.2 million in the quarter ended December 31, 2008, compared with $7.0 million for the third quarter of 2008 and $30.2 million for 2007’s fourth quarter.  Earnings were $.12 per diluted common share for the fourth quarter of 2008, $.11 for the current year’s third quarter and $.45 for the fourth quarter of 2007.  For the year ended December 31, 2008, net income available to common shareholders totaled $58.0 million, or $.89 per diluted share, compared with earnings of $151.1 million for 2007, or $2.23 per diluted share.
“Results for the fourth quarter were similar to the results we reported for the past two quarters, with high credit costs and some worsening in credit quality metrics, mainly in our Tampa market,” said John C. Hope, III, Chairman and CEO.  “However, once again, we were able to pay for credit costs out of earnings, report a profit and - just as important – still make loans.”
Loans increased $1 billion during the quarter and deposits increased $1.2 billion.  Approximately $605 million of the increase in loans and $635 million of the increase in deposits was related to the acquisition of Parish National Corporation (Parish), which was first announced on June 9, 2008.  This transaction, which closed on November 7, 2008, was valued at approximately $158 million, with $97 million paid to Parish’s shareholders in cash and the remainder in Whitney stock totaling 3.33 million shares.
 “Whitney is and has always been a fundamentally good bank,” said Hope.  “The additional funds received through our issuance of preferred stock to the U. S. Treasury strengthens our ability to continue providing both lending and deposit services to customers and communities across our
 
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footprint as we and the entire nation face the challenges that have and will come from these unprecedented economic times.”
Whitney completed its $300 million preferred stock sale under the Treasury’s Capital Purchase Program on December 19, 2008.

HIGHLIGHTS OF FOURTH QUARTER FINANCIAL RESULTS
Loans and Earning Assets
The organic loan growth of 5%, or $399 million, during the fourth quarter of 2008 was supported by demand from most markets within Whitney’s footprint, led by 10% growth in the Texas portfolio and 7% growth in the portfolio for metropolitan New Orleans.  Approximately three-quarters of the organic growth in the quarter was from commercial and industrial (C&I) customers.  Economic conditions will likely restrain loan demand and the rate of portfolio growth moving into 2009.
Earning assets for the fourth quarter of 2008 increased 8%, or $828 million, on average compared to the third quarter of 2008.  Average loans increased $698 million between these periods, with approximately $360 million from Parish.
Deposits and Funding
Deposits at December 31, 2008 were up 15%, or $1.2 billion, from September 30, 2008, and average deposits in the fourth quarter of 2008 increased $416 million from the third quarter of 2008.  Year-end deposit balances include some seasonal inflows.  Deposits associated with Parish accounted for approximately $635 million of the period-end increase and $380 million of the increase in average deposits.
Noninterest-bearing deposits for the current quarter were up 7% on average and 15%, or $424 million, on an end-of-period basis from the third quarter of 2008.  Parish’s demand deposits totaled approximately $164 million at December 31, 2008.
Demand deposits comprised 34% of total average deposits and funded approximately 28% of average earning assets for the fourth quarter of 2008 and the percentage of funding from all noninterest-bearing sources totaled 31%, the same as in 2008’s third quarter.  Higher-cost interest-bearing funds, which include time deposits and borrowings, funded 39% of average earning assets in 2008’s fourth quarter, up from 37% in the third quarter of 2008.

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Net Interest Income
Net interest income (TE) for the fourth quarter of 2008 increased 7%, or $8.3 million, compared to the third quarter of 2008.  Average earning assets grew 8% between these periods, while the net interest margin (TE) compressed by only 4 basis points.  Net interest income in the fourth quarter of 2008 benefited from abnormally wide spreads between Libor rates and other benchmark rates used to reset variable-rate loans.  The rates on approximately 28% of the loan portfolio at December 31, 2008 vary based on Libor benchmarks.
Provision for Credit Losses and Credit Quality
Whitney provided $45.0 million for credit losses in the fourth quarter of 2008, compared to $40.0 million in 2008’s third quarter.  Net loan charge-offs in 2008’s fourth quarter were $19.7 million or .91% of average loans on an annualized basis, compared to $24.5 million in the third quarter of 2008.  The allowance for loan losses increased $35.7 million during the current quarter and represented 1.77% of total loans at December 31, 2008, up from 1.55% at the end of 2008’s third quarter.
Continuing weaknesses in residential-related real estate markets, primarily in the Tampa, Florida area, accounted for approximately $25 million of the provision, mainly related to loans for residential development or for rental operations.   Loans for commercial real estate development or investment with identified weaknesses accounted for approximately $9 million of the provision, again concentrated in the Tampa area.  Problem C&I credits added approximately $7 million to the provision for the fourth quarter of 2008, with no significant regional concentration.  Management added approximately $3 million to the allowance and provision based on its regular assessment of current economic conditions and other qualitative factors.
The total of loans criticized through the Company’s credit risk-rating process was $770 million at December 31, 2008, which represented 8.5% of total loans and a net increase of $184 million from September 30, 2008.  Criticized loans from the Parish acquisition accounted for approximately $55 million of the increase.  Over half of the remaining increase came from loans for residential development or investment, the majority of which were from the Tampa market.

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Noninterest Income
Noninterest income for 2008’s fourth quarter increased 6%, or $1.6 million, from the third quarter of 2008, with approximately $1.2 million from Parish’s operations.  Deposit service charge income in the fourth quarter of 2008 was up 11%, or $.9 million, including approximately $.4 million from Parish.  The remaining increase reflected higher commercial account fees mainly driven by a reduction in the earnings credit allowance in response to a sharp drop in benchmark market interest rates.
Fee income from Whitney’s secondary mortgage market operations increased 26%, but would have been flat without Parish’s contribution, reflecting difficult financial and housing market conditions.  The categories comprising other noninterest income increased a combined $.5 million compared to the third quarter of 2008, with $.2 million related to Parish and the remainder primarily from nonrecurring revenue sources.
Noninterest Expense
The Parish acquisition added approximately $6.8 million to noninterest expense for the fourth quarter of 2008, including approximately $1.8 million to integrate Parish’s customers, employees and operating systems, and $.7 million for the amortization of intangible assets acquired.  Excluding the costs associated with Parish, total noninterest expense decreased approximately $4.3 million, or 5%, from the third quarter of 2008.  The following discusses some of the more significant changes in individual expense categories compared to the third quarter of 2008 excluding Parish’s impact:
·  
Employee compensation was down $7.0 million, excluding $2.2 million associated with Parish.  Essentially all of the decrease was associated with updated performance estimates under management and sales-based incentive plans.  Employee benefits expense was down $2.7 million from the third quarter of 2008, excluding $.4 million for Parish.  The main factor was a reduction in expense for the defined benefit pension plan during the fourth quarter.
·  
Legal and other professional fees increased $1.6 million, before the $1.3 million of Parish costs mainly associated with the conversion.  Projects primarily associated with process improvements and technology enhancements added approximately $1.0 million in professional services expense, while legal expense was impacted by higher costs associated with problem loan collection efforts and services related to Whitney’s participation in the Treasury’s Capital Purchase Program.
·  
Other noninterest expense increased approximately $3.7 million compared to the third quarter of 2008, excluding approximately $1.0 million for Parish.  Costs associated with problem loan collections and foreclosed asset management increased approximately $1.0 million.    Expenses associated with investments in projects that generate tax credits increased $1.2 million on expanded activities.  Whitney also took a $1.9 million charge during the fourth quarter related to the planned closure of certain branch facilities in early 2009 that was approved as part of the ongoing implementation of Whitney’s strategic plan.  Other noninterest expense in the third quarter of 2008 included $2.1 million for uninsured casualty losses and expenses arising from Hurricanes Gustav and Ike.
Capital
Regulatory capital ratios have been and remain well above those required for the Company and Whitney National Bank to be considered well-capitalized institutions.  The $300 million of equity raised through the preferred stock issue to the Treasury added to these well-capitalized positions as of December 31, 2008. The Company’s tangible equity ratio was 8.95% at the end of 2008’s fourth quarter, up from 7.89% at September 30, 2008.  Whitney’s regulatory leverage ratio was 9.87% at December 31, 2008 compared to 8.14% at the end of the third quarter of 2008.

Conference Call and Additional Financial Information
 
Management will host a conference call today at 3:30 p.m. CST to review fourth quarter 2008 results.  Analysts and investors may dial in and participate in the question/answer session.  A live listen-only webcast of the call will be available under the Investor Relations section of our website at http://www.whitneybank.com.  To participate in the Q&A portion of the call, dial (800) 811-0667 or (913) 312-1272.  An audio archive of the conference call will be available under the Investor Relations section of our website.  A replay of the call will also be available through February 3, 2009 by dialing (888) 203-1112 or (719) 457-0820, passcode 6427557.
 
 
This earnings release, including additional financial tables related to fourth quarter 2008 results, is posted in the Investor Relations section of the Company's web site at http://investor.whitneybank.com/releases.cfm?ReleasesType=Earnings&Year=2008. 
 

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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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Forward-Looking Statements
 
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, expectations regarding future loan demand, capital adequacy and capital ratios, and credit quality trends.
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 its 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 public filings with the Securities and Exchange Commission, which are available at the SEC’s internet site (http://www.sec.gov).
You are cautioned not to place undue reliance on these forward-looking statements.  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, except as required by law.

(WTNY-E)

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7
WHITNEY HOLDING CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
       
Fourth
  
Fourth
  
                   Year Ended
       
Quarter
  
Quarter
  
                    December 31
(dollars in thousands, except per share data)
  
2008
  
2007
  
2008
  
2007
                     
INCOME DATA
                  
 
Net interest income
    
$119,540
  
$116,336
  
$455,645
  
$464,791
 
Net interest income (tax-equivalent)
  
       120,902
  
       117,782
  
       460,662
  
       470,868
 
Provision for credit losses
  
         45,000
  
         10,000
  
       134,000
  
         17,000
 
Noninterest income
    
         27,050
  
         24,080
  
       107,172
  
       126,681
 
   Net securities gains in noninterest income
  
                -
  
                -
  
                67
  
                (1)
 
Noninterest expense
    
         92,026
  
         85,774
  
       351,094
  
       349,108
 
Net income
    
           8,808
  
         30,244
  
         58,585
  
       151,054
 
Net income available to common shareholders
  
           8,220
  
         30,244
  
         57,997
  
       151,054
                     
QUARTER-END BALANCE SHEET DATA
                
 
Loans
    
$  9,081,850
  
$  7,585,701
  
$  9,081,850
  
$  7,585,701
 
Investment securities
    
    1,939,355
  
    1,985,237
  
    1,939,355
  
    1,985,237
 
Earning assets
    
  11,209,246
  
  10,122,071
  
  11,209,246
  
  10,122,071
 
Total assets
    
  12,380,501
  
  11,027,264
  
  12,380,501
  
  11,027,264
 
Noninterest-bearing deposits
  
    3,233,550
  
    2,740,019
  
    3,233,550
  
    2,740,019
 
Total deposits
    
    9,261,594
  
    8,583,789
  
    9,261,594
  
    8,583,789
 
Shareholders' equity
    
    1,525,478
  
    1,228,736
  
    1,525,478
  
    1,228,736
                     
AVERAGE BALANCE SHEET DATA
                
 
Loans
    
$  8,700,317
  
$  7,542,040
  
$  8,066,639
  
$  7,344,889
 
Investment securities
    
    1,876,338
  
    1,979,044
  
    1,967,375
  
    1,893,866
 
Earning assets
    
  10,719,892
  
    9,857,897
  
  10,122,620
  
    9,636,586
 
Total assets
    
  11,777,922
  
  10,716,391
  
  11,080,342
  
  10,512,422
 
Noninterest-bearing deposits
  
    2,975,869
  
    2,679,261
  
    2,786,003
  
    2,708,353
 
Total deposits
    
    8,646,612
  
    8,406,547
  
    8,368,937
  
    8,397,778
 
Shareholders' equity
    
    1,264,714
  
    1,257,220
  
    1,225,177
  
    1,209,923
                     
COMMON SHARE DATA
                
 
Earnings per share
                  
 
     Basic
    
   $    .12
  
   $    .45
  
   $    .90
  
   $  2.26
 
     Diluted
    
               .12
  
               .45
  
               .89
  
             2.23
 
Cash dividends per share
  
   $    .20
  
   $    .29
  
   $    1.13
  
   $    1.16
 
Book value per share, end of period
  
   $18.29
  
   $18.67
  
   $18.29
  
   $18.67
 
Tangible book value per share, end of period
  
   $11.48
  
   $13.37
  
   $11.48
  
   $13.37
 
Trading data
                  
 
     High sales price
    
   $26.37
  
   $28.35
  
   $33.02
  
   $33.26
 
     Low sales price
    
           14.14
  
           22.46
  
           13.96
  
           22.46
 
     End-of-period closing price
  
           15.99
  
           26.15
  
           15.99
  
           26.15
 
     Trading volume
    
  42,771,277
  
  30,514,264
  
214,317,545
  
  88,480,468
                     
RATIOS
                  
 
Return on average assets
  
.30%
  
1.12%
  
.53%
  
1.44%
 
Return on average common equity
  
             2.67
  
             9.54
  
             4.77
  
           12.48
 
Net interest margin
    
             4.49
  
             4.75
  
             4.55
  
             4.89
 
Common dividend payout ratio
  
         166.07
  
           64.16
  
         127.37
  
           52.05
 
Average loans to average deposits
  
         100.62
  
           89.72
  
           96.39
  
           87.46
 
Efficiency ratio
    
           62.20
  
           60.46
  
           61.84
  
           58.42
 
Allowance for loan losses to loans, end of period
             1.77
  
             1.16
  
             1.77
  
             1.16
 
Annualized net charge-offs to average loans
  
               .91
  
               .21
  
               .88
  
               .11
 
Nonperforming assets to loans plus foreclosed
                
 
   assets and surplus property, end of period
  
             3.61
  
             1.64
  
             3.61
  
             1.64
 
Average shareholders' equity to average total assets
           10.74
  
           11.73
  
           11.06
  
           11.51
 
Tangible equity to tangible assets, end of period
  
             8.95
  
             8.24
  
             8.95
  
             8.24
 
Leverage ratio, end of period
  
             9.87
  
             8.79
  
             9.87
  
             8.79
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
 
QUARTERLY TRENDS
       
Fourth
  
Third
  
Second
  
First
  
Fourth
       
Quarter
  
Quarter
  
Quarter
  
Quarter
  
Quarter
(dollars in thousands, except per share data)
2008
  
2008
  
2008
  
2008
  
2007
                         
INCOME DATA
                      
 
Net interest income
    
$119,540
  
$111,435
  
$111,125
  
$113,545
  
$116,336
 
Net interest income (tax-equivalent)
  
      120,902
  
      112,601
  
      112,344
  
      114,815
  
      117,782
 
Provision for credit losses
  
        45,000
  
        40,000
  
        35,000
  
        14,000
  
        10,000
 
Noninterest income
    
        27,050
  
        25,472
  
        26,174
  
        28,476
  
        24,080
 
   Net securities gains in noninterest income
  
                -
  
               67
  
                -
  
                -
  
                -
 
Noninterest expense
    
        92,026
  
        89,549
  
        85,590
  
        83,929
  
        85,774
 
Net income
    
          8,808
  
          7,048
  
        12,874
  
        29,855
  
        30,244
 
Net income available to common shareholders
          8,220
  
          7,048
  
        12,874
  
        29,855
  
        30,244
                         
QUARTER-END BALANCE SHEET DATA
                
 
Loans
    
$ 9,081,850
  
$ 8,077,775
  
$ 7,962,543
  
$ 7,723,508
  
$ 7,585,701
 
Investment securities
    
   1,939,355
  
   1,812,025
  
   1,955,692
  
   2,131,446
  
   1,985,237
 
Earning assets
    
 11,209,246
  
   9,943,868
  
   9,955,091
  
   9,882,369
  
 10,122,071
 
Total assets
    
 12,380,501
  
 10,987,447
  
 11,016,323
  
 10,781,912
  
 11,027,264
 
Noninterest-bearing deposits
  
   3,233,550
  
   2,809,923
  
   2,773,086
  
   2,724,396
  
   2,740,019
 
Total deposits
    
   9,261,594
  
   8,054,431
  
   8,266,880
  
   8,295,298
  
   8,583,789
 
Shareholders' equity
    
   1,525,478
  
   1,183,001
  
   1,183,078
  
   1,214,425
  
   1,228,736
                         
AVERAGE BALANCE SHEET DATA
                    
 
Loans
    
$ 8,700,317
  
$ 8,007,507
  
$ 7,866,942
  
$ 7,685,478
  
$ 7,542,040
 
Investment securities
    
   1,876,338
  
   1,853,581
  
   2,025,397
  
   2,116,433
  
   1,979,044
 
Earning assets
    
 10,719,892
  
   9,892,165
  
   9,929,683
  
   9,944,709
  
   9,857,897
 
Total assets
    
 11,777,922
  
 10,902,329
  
 10,838,912
  
 10,796,496
  
 10,716,391
 
Noninterest-bearing deposits
  
   2,975,869
  
   2,771,101
  
   2,747,125
  
   2,647,995
  
   2,679,261
 
Total deposits
    
   8,646,612
  
   8,230,249
  
   8,220,223
  
   8,377,141
  
   8,406,547
 
Shareholders' equity
    
   1,264,714
  
   1,192,535
  
   1,213,461
  
   1,229,921
  
   1,257,220
                         
COMMON SHARE DATA
                    
 
Earnings per share
                      
 
     Basic
    
   $    .12
  
   $    .11
  
   $    .20
  
   $    .46
  
   $    .45
 
     Diluted
    
              .12
  
              .11
  
              .20
  
              .45
  
              .45
 
Cash dividends per share
  
   $    .20
  
   $    .31
  
   $    .31
  
   $    .31
  
   $    .29
 
Book value per share, end of period
  
   $18.29
  
   $18.49
  
   $18.51
  
   $18.90
  
   $18.67
 
Tangible book value per share, end of period
   $11.48
  
   $13.13
  
   $13.12
  
   $13.51
  
   $13.37
 
Trading data
                      
 
     High sales price
    
   $26.37
  
   $33.02
  
   $26.32
  
   $27.49
  
   $28.35
 
     Low sales price
    
          14.14
  
          13.96
  
          17.85
  
          21.12
  
          22.46
 
     End-of-period closing price
  
          15.99
  
          24.25
  
          18.30
  
          24.79
  
          26.15
 
     Trading volume
    
 42,771,277
  
 72,540,716
  
 53,522,061
  
 45,483,491
  
 30,514,264
                         
RATIOS
                      
 
Return on average assets
  
.30%
  
.26%
  
.48%
  
1.11%
  
1.12%
 
Return on average common equity
  
            2.67
  
            2.35
  
            4.27
  
            9.76
  
            9.54
 
Net interest margin
    
            4.49
  
            4.53
  
            4.54
  
            4.64
  
            4.75
 
Common dividend payout ratio
  
        166.07
  
        285.63
  
        155.49
  
          67.23
  
          64.16
 
Average loans to average deposits
  
        100.62
  
          97.29
  
          95.70
  
          91.74
  
          89.72
 
Efficiency ratio
    
          62.20
  
          64.89
  
          61.79
  
          58.57
  
          60.46
 
Allowance for loan losses to loans, end of period
            1.77
  
            1.55
  
            1.38
  
            1.19
  
            1.16
 
Annualized net charge-offs to average loans
              .91
  
            1.22
  
              .86
  
              .53
  
              .21
 
Nonperforming assets to loans plus foreclosed
                
 
   assets and surplus property, end of period
            3.61
  
            3.15
  
            2.03
  
            1.96
  
            1.64
 
Average shareholders' equity to average total assets
          10.74
  
          10.94
  
          11.20
  
          11.39
  
          11.73
 
Tangible equity to tangible assets, end of period
            8.95
  
            7.89
  
            7.86
  
            8.32
  
            8.24
 
Leverage ratio, end of period
  
            9.87
  
            8.14
  
            8.27
  
            8.45
  
            8.79
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 -
9
WHITNEY HOLDING CORPORATION AND SUBSIDIARIES
DAILY AVERAGE CONSOLIDATED BALANCE SHEETS
     
Fourth
  
Fourth
  
                     Year Ended
     
Quarter
  
Quarter
  
                      December 31
(dollars in thousands)
  
2008
  
2007
  
2008
  
2007
ASSETS
                
EARNING ASSETS
                  
  Loans
    
 $   8,700,317
  
 $   7,542,040
  
 $   8,066,639
  
 $   7,344,889
  Investment securities
                  
     Securities available for sale
  
1,654,548
  
1,698,264
  
1,707,989
  
1,619,719
     Securities held to maturity
  
221,790
  
280,780
  
259,386
  
274,147
        Total investment securities
  
1,876,338
  
1,979,044
  
1,967,375
  
1,893,866
  Federal funds sold and short-term investments
  
129,124
  
319,675
  
74,587
  
377,943
  Loans held for sale
    
14,113
  
17,138
  
14,019
  
19,888
        Total earning assets
  
10,719,892
  
9,857,897
  
10,122,620
  
9,636,586
NONEARNING ASSETS
                
  Goodwill and other intangible assets
  
410,595
  
349,455
  
361,841
  
346,758
  Accrued interest receivable
  
43,066
  
49,346
  
43,187
  
48,682
  Other assets
    
748,820
  
542,076
  
662,205
  
559,400
  Allowance for loan losses
  
(144,451)
  
(82,383)
  
(109,511)
  
(79,004)
                   
        Total assets
    
 $ 11,777,922
  
 $ 10,716,391
  
 $ 11,080,342
  
 $ 10,512,422
                   
LIABILITIES
                
INTEREST-BEARING LIABILITIES
                
  Interest-bearing deposits
                
     NOW account deposits
  
 $   1,076,260
  
 $   1,031,659
  
 $   1,068,468
  
 $   1,034,811
     Money market investment deposits
  
1,216,300
  
1,231,267
  
1,220,312
  
1,222,341
     Savings deposits
    
916,064
  
890,732
  
917,531
  
920,028
     Other time deposits
    
834,400
  
853,076
  
774,512
  
829,264
     Time deposits $100,000 and over
  
1,627,719
  
1,720,552
  
1,602,111
  
1,682,981
        Total interest-bearing deposits
  
5,670,743
  
5,727,286
  
5,582,934
  
5,689,425
                   
  Short-term borrowings
  
1,570,987
  
747,389
  
1,197,869
  
641,758
  Long-term debt
    
164,263
  
168,348
  
160,880
  
136,459
        Total interest-bearing liabilities
  
7,405,993
  
6,643,023
  
6,941,683
  
6,467,642
NONINTEREST-BEARING LIABILITIES
                
  Noninterest-bearing deposits
  
2,975,869
  
2,679,261
  
2,786,003
  
2,708,353
  Accrued interest payable
  
18,050
  
28,432
  
20,738
  
25,059
  Other liabilities
    
113,296
  
108,455
  
106,741
  
101,445
        Total liabilities
    
10,513,208
  
9,459,171
  
9,855,165
  
9,302,499
SHAREHOLDERS' EQUITY
                
  Preferred
    
41,496
  
                    -
  
           10,431
  
                    -
  Common
    
1,223,218
  
1,257,220
  
1,214,746
  
1,209,923
      Total shareholders' equity
  
1,264,714
  
1,257,220
  
1,225,177
  
1,209,923
                   
        Total liabilities and shareholders' equity
  
 $ 11,777,922
  
 $ 10,716,391
  
 $ 11,080,342
  
 $ 10,512,422
                   
EARNING ASSETS LESS
                  
    INTEREST-BEARING LIABILITIES
 $   3,313,899
  
 $   3,214,874
  
 $   3,180,937
  
 $   3,168,944
                   

 
 
- MORE -
 
 
 

10
WHITNEY HOLDING CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
       
December 31
  
September 30
  
December 31
(dollars in thousands)
    
2008
  
2008
  
2007
ASSETS
            
 
Cash and due from financial institutions
  
 $      299,619
  
 $       296,143
  
 $      290,199
 
Federal funds sold and short-term investments
  
         167,268
  
            46,117
  
         534,558
 
Loans held for sale
    
           20,773
  
              7,951
  
           16,575
 
Investment securities
              
 
    Securities available for sale
  
      1,728,962
  
       1,565,459
  
      1,698,795
 
    Securities held to maturity
  
         210,393
  
          246,566
  
         286,442
 
          Total investment securities
  
      1,939,355
  
       1,812,025
  
      1,985,237
 
Loans
    
      9,081,850
  
       8,077,775
  
      7,585,701
 
   Allowance for loan losses
  
        (161,109)
  
        (125,370)
  
          (87,909)
 
       Net loans
    
      8,920,741
  
       7,952,405
  
      7,497,792
 
Bank premises and equipment
  
         212,501
  
          183,669
  
         190,095
 
Goodwill
    
         435,678
  
          331,295
  
         331,295
 
Other intangible assets
    
           22,883
  
            11,626
  
           17,103
 
Accrued interest receivable
  
           39,799
  
            37,592
  
           44,860
 
Other assets
    
         321,884
  
          308,624
  
         119,550
 
      Total assets
    
 $ 12,380,501
  
 $  10,987,447
  
 $ 11,027,264
                 
                 
LIABILITIES
            
 
Noninterest-bearing demand deposits
  
 $   3,233,550
  
 $    2,809,923
  
 $   2,740,019
 
Interest-bearing deposits
  
      6,028,044
  
       5,244,508
  
      5,843,770
 
      Total deposits
    
      9,261,594
  
       8,054,431
  
      8,583,789
 
Short-term borrowings
  
      1,276,636
  
       1,465,857
  
         910,019
 
Long-term debt
    
         179,236
  
          156,907
  
         165,455
 
Accrued interest payable
  
           19,789
  
            18,457
  
           27,079
 
Other liabilities
    
         117,768
  
          108,794
  
         112,186
 
      Total liabilities
    
    10,855,023
  
       9,804,446
  
      9,798,528
 
SHAREHOLDERS' EQUITY
          
 
Preferred stock
    
         293,706
  
                   -
  
                   -
 
Common stock
    
             2,800
  
              2,800
  
             2,800
 
Capital surplus
    
         478,932
  
          412,163
  
         408,266
 
Retained earnings
    
         869,918
  
          875,347
  
         885,792
 
Accumulated other comprehensive income (loss)
  
          (25,952)
  
          (12,437)
  
          (18,803)
 
Treasury stock at cost
    
          (93,926)
  
          (94,872)
  
          (49,319)
 
      Total shareholders' equity
  
      1,525,478
  
       1,183,001
  
      1,228,736
 
      Total liabilities and shareholders' equity
  
 $ 12,380,501
  
 $  10,987,447
  
 $ 11,027,264

 
 
- MORE -
 
 
 

11
WHITNEY HOLDING CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
     
Fourth
  
Third
  
Fourth
  
                 Year Ended
     
Quarter
  
Quarter
  
Quarter
  
                  December 31
(dollars in thousands, except per share data)
2008
  
2008
  
2007
  
2008
  
2007
INTEREST INCOME
                    
  Interest and fees on loans
  
 $   124,036
  
 $   116,501
  
 $   139,114
  
 $   483,009
  
 $   554,991
  Interest and dividends on investments
  
        21,770
  
        21,823
  
        23,007
  
        91,104
  
        86,871
  Interest on federal funds sold and
                    
     short-term investments
  
             258
  
             115
  
          3,686
  
          1,753
  
        19,243
    Total interest income
  
      146,064
  
      138,439
  
      165,807
  
      575,866
  
      661,105
INTEREST EXPENSE
                    
  Interest on deposits
    
        20,407
  
        19,393
  
        40,359
  
        91,596
  
      163,000
  Interest on short-term borrowings
  
          3,651
  
          5,259
  
          6,554
  
        18,974
  
        25,055
  Interest on long-term debt
  
          2,466
  
          2,352
  
          2,558
  
          9,651
  
          8,259
    Total interest expense
  
        26,524
  
        27,004
  
        49,471
  
      120,221
  
      196,314
NET INTEREST INCOME
  
      119,540
  
      111,435
  
      116,336
  
      455,645
  
      464,791
PROVISION FOR CREDIT LOSSES
  
        45,000
  
        40,000
  
        10,000
  
      134,000
  
        17,000
NET INTEREST INCOME AFTER PROVISION
                
  FOR CREDIT LOSSES
  
        74,540
  
        71,435
  
      106,336
  
      321,645
  
      447,791
NONINTEREST INCOME
                    
  Service charges on deposit accounts
  
          9,157
  
          8,252
  
          8,126
  
        34,050
  
        30,676
  Bank card fees
    
          4,646
  
          4,452
  
          4,309
  
        17,670
  
        16,487
  Trust service fees
    
          2,984
  
          3,189
  
          3,354
  
        12,948
  
        12,969
  Secondary mortgage market operations
  
          1,340
  
          1,063
  
          1,208
  
          4,899
  
          4,915
  Other noninterest income
  
          8,923
  
          8,449
  
          7,083
  
        37,538
  
        61,635
  Securities transactions
  
               -
  
               67
  
               -
  
               67
  
              (1)
    Total noninterest income
  
        27,050
  
        25,472
  
        24,080
  
      107,172
  
      126,681
NONINTEREST EXPENSE
                    
  Employee compensation
  
        34,706
  
        39,456
  
        39,939
  
      150,614
  
      159,850
  Employee benefits
    
          6,261
  
          8,547
  
          8,241
  
        32,808
  
        33,694
    Total personnel
    
        40,967
  
        48,003
  
        48,180
  
      183,422
  
      193,544
  Net occupancy
    
          9,597
  
          9,177
  
          8,022
  
        35,906
  
        33,568
  Equipment and data processing
  
          6,525
  
          6,048
  
          5,686
  
        25,035
  
        22,886
  Legal and other professional services
  
          5,884
  
          2,951
  
          2,974
  
        13,612
  
        10,652
  Telecommunication and postage
  
          2,982
  
          2,684
  
          2,893
  
        11,118
  
        12,420
  Corporate value and franchise taxes
  
          2,318
  
          2,324
  
          2,395
  
          9,312
  
          9,571
  Amortization of intangibles
  
          2,307
  
          1,641
  
          2,144
  
          7,785
  
        10,879
  Other noninterest expense
  
        21,446
  
        16,721
  
        13,480
  
        64,904
  
        55,588
    Total noninterest expense
  
        92,026
  
        89,549
  
        85,774
  
      351,094
  
      349,108
Income before income taxes
  
          9,564
  
          7,358
  
        44,642
  
        77,723
  
      225,364
Income tax expense
    
             756
  
             310
  
        14,398
  
        19,138
  
        74,310
Net income
    
 $       8,808
  
 $       7,048
  
 $     30,244
  
 $     58,585
  
 $   151,054
Preferred stock dividends
  
             588
  
               -
  
               -
  
             588
  
               -
Net income available to common shareholders
 $       8,220
  
 $       7,048
  
 $     30,244
  
 $     57,997
  
 $   151,054
                       
EARNINGS PER COMMON SHARE
                    
  Basic
    
   $.12
  
   $.11
  
   $.45
  
   $.90
  
   $2.26
  Diluted
    
   .12
  
   .11
  
   .45
  
   .89
  
   2.23
WEIGHTED-AVERAGE COMMON
                    
    SHARES OUTSTANDING
                      
    Basic
    
66,087,867
  
64,057,895
  
66,942,296
  
64,767,708
  
66,953,343
    Diluted
    
66,718,007
  
64,740,931
  
67,744,528
  
65,516,642
  
67,858,307
CASH DIVIDENDS PER COMMON SHARE
   $.20
  
   $.31
  
   $.29
  
   $1.13
  
   $1.16

 
 
- MORE -
 
 
 
 

12
WHITNEY HOLDING CORPORATION AND SUBSIDIARIES
SUMMARY OF INTEREST RATES (TAX-EQUIVALENT)*
     
Fourth
  
Third
  
Fourth
  
      Year Ended
  
     
Quarter
  
Quarter
  
Quarter
  
       December 31
  
     
2008
  
2008
  
2007
  
2008
  
2007
  
                         
EARNING ASSETS
                      
Loans**
    
5.67
  %
5.79
  %
7.32
  %
5.98
  %
7.55
  %
Investment securities
    
   4.89
  
   4.95
  
   4.90
  
   4.87
  
   4.85
  
Federal funds sold and short-term investments
  
     .79
  
   2.13
  
   4.57
  
   2.35
  
   5.09
  
            Total interest-earning assets
  
5.48
  %
5.62
  %
6.74
 %
5.74
 %
6.92
 %
                         
INTEREST-BEARING LIABILITIES
                      
Interest-bearing deposits
                        
     NOW account deposits
    
.45
 %
.53
 %
1.13
 %
.61
 %
1.17
 %
     Money market investment deposits
  
     .95
  
     .95
  
   2.69
  
   1.13
  
   2.90
  
     Savings deposits
    
     .31
  
     .40
  
     .92
  
     .43
  
     .97
  
     Other time deposits
    
   2.71
  
   2.79
  
   3.95
  
   3.13
  
   3.83
  
     Time deposits $100,000 and over
  
   2.41
  
   2.29
  
   4.27
  
   2.70
  
   4.45
  
            Total interest-bearing deposits
  
1.43
 %
1.41
 %
2.80
 %
1.64
 %
2.86
 %
                         
Short-term borrowings
    
     .92
  
   1.74
  
   3.48
  
   1.58
  
   3.90
  
Long-term debt
    
   6.00
  
   6.00
  
   6.08
  
   6.00
  
   6.05
  
            Total interest-bearing liabilities
  
1.43
 %
1.58
 %
2.96
 %
1.73
 %
3.04
 %
                         
NET INTEREST SPREAD (tax-equivalent)
                      
Yield on earning assets less cost of interest-
                      
    bearing liabilities
    
4.05
 %
4.04
 %
3.78
 %
4.01
 %
3.88
 %
                         
NET INTEREST MARGIN (tax-equivalent)
                      
Net interest income (tax equivalent) as a
                      
    percentage of average earning assets
  
4.49
 %
4.53
 %
4.75
 %
4.55
 %
4.89
 %
                         
COST OF FUNDS
                        
Interest expense as a percentage of average interest-
                      
    bearing liabilities plus interest-free funds
  
.99
 %
1.09
 %
1.99
 %
1.19
 %
2.03
 %
                         
                         
*   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 -

13
  
WHITNEY HOLDING CORPORATION AND SUBSIDIARIES
  
LOAN QUALITY
      
     
Fourth
  
Fourth
  
                   Year Ended
  
     
Quarter
  
Quarter
  
                     December 31
  
(dollars in thousands)
    
2008
  
2007
  
2008
  
2007
  
                     
ALLOWANCE FOR LOAN LOSSES
                  
Allowance at beginning of period
  
$125,370
  
$82,135
  
$87,909
  
$75,927
  
Allowance of acquired banks
  
           9,971
  
                   -
  
           9,971
  
           2,791
  
Provision for credit losses
    
         45,500
  
           9,700
  
       134,500
  
         17,600
  
Loans charged off
    
        (25,567
 )
          (5,258
 )
        (82,226
 )
        (17,956
 )
Recoveries on loans previously charged off
  
           5,835
  
           1,332
  
         10,955
  
           9,547
  
     Net loans charged off
    
        (19,732
 )
          (3,926
 )
        (71,271
 )
          (8,409
 )
Allowance at end of period
    
$161,109
  
$87,909
  
$161,109
  
$87,909
  
                     
Allowance for loan losses as a percentage of
                  
    loans, at end of period
    
1.77
 %
1.16
 %
1.77
 %
1.16
 %
                     
Annualized net charge-offs as a percentage
                  
    of average loans
    
               .91
  
               .21
  
               .88
  
               .11
  
                     
Annualized gross charge-offs as a percentage of
                  
    average loans
    
             1.18
  
               .28
  
             1.02
  
               .24
  
                     
Recoveries as a percentage of gross charge-offs
  
           22.82
  
           25.33
  
           13.32
  
           53.17
  
                     
                     
RESERVE FOR LOSSES ON
                  
    UNFUNDED CREDIT COMMITMENTS
                  
Reserve at beginning of period
  
$1,300
  
$1,000
  
$1,300
  
$1,900
  
Provision for credit losses
    
             (500
 )
              300
  
             (500
 )
             (600
 )
Reserve at end of period
    
$800
  
$1,300
  
$800
  
$1,300
  
                     
     
December 31
  
September 30
  
December 31
      
(dollars in thousands)
    
2008
  
2008
  
2007
      
                     
NONPERFORMING ASSETS
                    
Loans accounted for on a nonaccrual basis
  
$301,095
  
$235,136
  
$120,096
      
Restructured loans accruing
  
                   -
  
                   -
  
                   -
      
     Total nonperforming loans
  
       301,095
  
       235,136
  
       120,096
      
Foreclosed assets and surplus property
  
         28,067
  
         19,597
  
           4,624
      
     Total nonperforming assets
  
$329,162
  
$254,733
  
$124,720
      
Loans 90 days past due still accruing
  
   $16,101
  
   $6,145
  
   $8,711
      
                     
Nonperforming assets as a percentage of loans plus
                  
   foreclosed assets and surplus property, at end of period
  
3.61
 %
3.15
 %
1.64
 %    
                     
Allowance for loan losses as a percentage of
                  
   nonperforming loans, at end of period
  
           53.51
  
           53.32
  
           73.20
      
                     
Loans 90 days past due still accruing as a
                  
   percentage of loans, at end of period
  
               .18
  
               .08
  
               .11
      
                     
                     
 
- MORE-

 
14
  
WHITNEY HOLDING CORPORATION AND SUBSIDIARIES
  
LOAN PORTFOLIO DETAIL
  
                             
LOAN PORTFOLIO AT QUARTER-END
                        
         
2008
  
2007
  
(dollars in millions)
    
December
  
September
  
June
  
March
  
December
  
                             
Commercial & industrial
    
$3,436
  
$3,101
  
$3,087
  
$2,897
  
$2,823
  
Commercial real estate:
                        
    Construction, land & land development
    
      1,888
  
      1,682
  
    1,628
  
    1,706
  
     1,771
  
    Commercial real estate
    
      2,269
  
      1,930
  
    1,909
  
    1,827
  
     1,706
  
        Total commercial real estate
    
      4,157
  
      3,612
  
    3,537
  
    3,533
  
     3,477
  
Residential mortgage
    
      1,079
  
      1,003
  
       983
  
       950
  
        934
  
Consumer
      
         410
  
         362
  
       356
  
       344
  
        352
  
   Total loans
      
$9,082
  
$8,078
  
$7,963
  
$7,724
  
$7,586
  
                             
GEOGRAPHIC DISTRIBUTION OF LOAN PORTFOLIO AT DECEMBER 31, 2008
  
                 
 Alabama/
 
  
Percent
  
(dollars in millions)
Louisiana
  
Texas
  
Florida
  
   Mississippi
Total
  
 of total
  
                             
Commercial & industrial
$2,369
  
$673
  
$103
  
$291
  
$3,436
  
38%
  
Commercial real estate:
                        
    Residential construction
       102
  
           81
  
           56
  
         35
  
       274
  
3%
  
    Commercial construction, land &
                        
        land development
       547
  
         396
  
         439
  
       232
  
    1,614
  
18%
  
    Commercial - owner-user
       658
  
         106
  
         181
  
         70
  
    1,015
  
11%
  
    Commercial - other
       615
  
         162
  
         326
  
       151
  
    1,254
  
14%
  
        Total commercial real estate
    1,922
  
         745
  
      1,002
  
       488
  
    4,157
  
46%
  
Residential mortgage
       608
  
         132
  
         212
  
       127
  
    1,079
  
12%
  
Consumer
  
       285
  
           19
  
           67
  
         39
  
       410
  
4%
  
   Total
    
$5,184
  
$1,569
  
$1,384
  
$945
  
$9,082
  
100%
  
Percent of total
  
57
 % 
17
 % 
15
 % 
11
 % 
100
 %     
                             
CRITICIZED LOANS AT DECEMBER 31, 2008
                      
                 
 Alabama/
    
  
Percent
  
(dollars in millions)
Louisiana
  
Texas
  
Florida
  
Mississippi     
Total
  
 of loans
  
                             
Commercial & industrial
$32
  
$42
  
$7
  
$31
  
$112
  
3%
  
Commercial real estate:
                        
    Residential construction
         11
  
           12
  
           26
  
           1
  
         50
  
18%
  
    Commercial construction, land &
                        
        land development
         49
  
           19
  
         190
  
         32
  
       290
  
18%
  
    Commercial - owner-user
         56
  
             4
  
           26
  
         16
  
       102
  
10%
  
    Commercial - other
         35
  
             7
  
           63
  
         14
  
       119
  
9%
  
        Total commercial real estate
       151
  
           42
  
         305
  
         63
  
       561
  
13%
  
Residential mortgage
         32
  
             2
  
           45
  
           7
  
         86
  
8%
  
Consumer
  
           5
  
             -
  
             4
  
           2
  
         11
  
3%
  
   Total
    
$220
  
$86
  
$361
  
$103
  
$770
  
8%
  
Percent of loans
  
4
 % 
5
 % 
26
 % 
11
 % 
8
 %     
                             
- END -