8-K
1
wtny012606.txt
WHITNEY HOLDING CORPORATION 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): January 25, 2006
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WHITNEY HOLDING CORPORATION
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(Exact name of registrant as specified in its charter)
Louisiana 0-1026 72-6017893
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(State of (Commission File Number) (IRS Employer
incorporation) Identification No.)
228 St. Charles Avenue, New Orleans, Louisiana 70130
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(Address of principal executive offices) (Zip Code)
(504) 586-7272
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(Registrant's telephone number, including area code)
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 January 25, 2006, Whitney Holding Corporation issued a news release
announcing its financial results for the quarter ended December 31, 2005 (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 January 25, 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: January 25, 2006
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EXHIBIT INDEX
Exhibit
Number Description
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99.1 News Release dated January 25, 2006
Exhibit 99.1
[WHITNEY 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
504/552-4591 January 25, 2006
WHITNEY REPORTS FOURTH QUARTER 2005 EARNINGS
New Orleans, Louisiana. Whitney Holding Corporation (NASDAQ--WTNY)
earned $35.1 million in the quarter ended December 31, 2005, a 30% increase
compared to net income of $27.0 million reported for the fourth quarter of 2004.
Per share earnings were $.56 per basic share and $.55 per diluted share in
2005's fourth quarter, up 30% and 28%, respectively, from $.43 per share, both
basic and diluted, in the year-earlier period. Whitney's annual earnings of
$102.3 million in 2005 were 5% above the $97.1 million earned in 2004. Annual
per share earnings were $1.65 per basic share and $1.63 per diluted share. These
were each approximately 4% higher than 2004's per share earnings. All share and
per share data in this news release reflect the three-for-two split of Whitney's
common stock that was effective May 25, 2005.
CONTINUED IMPACT OF NATURAL DISASTERS
During the fourth quarter of 2005, Whitney continued to deal with the
impact of hurricanes that caused widespread property damage and population
dislocation in the greater New Orleans area and along the Mississippi gulf coast
in late August and significantly impacted southwest Louisiana toward the end of
September. The following sections summarize the more significant financial
repercussions of these natural disasters for the Company and its major
subsidiary, Whitney National Bank (the Bank).
Credit Quality and Allowance for Loan Losses
As of the end of the third quarter of 2005, management had increased
the allowance for loan losses to $91 million compared to $54 million at year-end
2004. The allowance at September 30, 2005 incorporated management's best
estimate, based on available information, of inherent losses as
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a result of the impact of the storms. During the fourth quarter of 2005, loan
officers performed extensive reviews of the storms' impact on borrowers, and the
results of these reviews were factored into the determination of the allowance
for loan losses at December 31, 2005. Although these reviews indicated a lower
level of storm-related credit risk than initially estimated, the consideration
of other credit quality issues identified in the fourth quarter of 2005, as
discussed elsewhere in this release, led management to maintain the allowance
for loan losses at $90 million at year-end 2005. As management acquires
additional information on overall economic prospects in the storm-affected areas
and the performance of consumer credits that had been under payment deferral
programs and obtains further assessments of individual borrowers, the loss
estimate will be revised as needed.
Disaster Response Costs, Casualty Losses, Business Interruption and Related
Insurance
To operate in disaster response mode, the Bank incurred expenses for,
among other things, the use of pre-designated back-up data processing centers,
the lease of temporary equipment and facilities, lodging and other expenses for
relocated personnel, and emergency communications with customers regarding the
status of Bank operations. Emergency changes to the Bank's normal processing and
collection of cash items caused recurring delays in funds availability that had
a negative impact on net interest income. In addition, a number of the Bank's
facilities and their contents were damaged by the storms and the rental income
from excess office space and a parking facility was temporarily disrupted.
Sixteen banking facilities will require replacement, relocation or major
renovation.
Whitney maintains insurance for casualty losses as well as for
reasonable and necessary disaster response costs and certain revenue lost
through business interruption. Management believes, based on its understanding
of the coverage, that collection of receivables established for insurance claims
is probable. Certain additional disaster response costs and the bulk of repair
and replacement costs will be incurred in the first quarter of 2006 and beyond,
and these will be included in the insurance claims as appropriate. Management
projects that current and future claims will be within policy limits, and it is
probable that gains will be recognized with respect to casualty claims in future
periods, but this is contingent upon reaching agreement with the insurance
carriers.
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Deposit Growth and Liquidity Management
The Bank experienced a rapid accumulation of deposits in the months
following the storms. Total deposits at December 31, 2005 were up $1.44 billion,
or 20%, from June 30, 2005. The most significant increase was in
noninterest-bearing demand deposits, which grew 24%, or $632 million, during the
fourth quarter of 2005 following growth of 16%, or $367 million, in 2005s' third
quarter. A number of storm-related factors contributed to this accumulation.
Customers avoided larger recurring expenditures through payment deferral
programs and service disruptions, and many customers likely took a more
conservative approach to discretionary spending and increased credit purchases
to conserve liquidity. At the same time, a significant amount of disaster-relief
funds was available to residents in the affected areas, and a large number
either remained employed or received salary continuation payments. Many
residents and businesses have also received insurance settlements, although use
of these funds has often been delayed because of fundamental uncertainties
pertaining to the rebuilding process and insufficient resources to meet demand,
and government-sponsored disaster-recovery contracts have provided additional
liquidity to some commercial accounts.
Although management expects the balances accumulated by deposit
customers in the storm-affected areas to reduce over time, it is difficult to
predict when and to what degree, and there may be some further growth as
remaining insurance claims are resolved and additional disaster-recovery funds
are distributed. Funds from the deposit build-up were first used to reduce
short-term wholesale borrowings, with the remainder mainly invested in
short-term liquidity management securities pending better information on the
volatility of these funds. A portion of the deposit growth also helped fund the
increase in the balances of cash and cash items that resulted from storm-forced
changes to the Bank's normal processing and collection of cash items and to its
strategies for managing cash on hand in these unusual circumstances. Balances of
cash on hand, cash items in process of collection and balances at financial
institutions increased a combined $279 million on average during the fourth
quarter of 2005 compared to 2004's fourth quarter. Some of this increase will
continue into 2006 as the Bank completes its response to certain permanent
changes in its operating environment.
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Tax Relief
Federal legislation passed in December 2005 provided for a tax credit
to businesses in the storm-affected areas based on salaries paid to dislocated
employees through the end of 2005. Application of this provision reduced
Whitney's income tax expense for the fourth quarter of 2005 by $1.9 million.
HIGHLIGHTS OF FINANCIAL RESULTS
o Whitney's net interest income (TE) for the fourth quarter of 2005
increased $19.9 million, or 23%, compared to the fourth
quarter of 2004, driven by both the 13% increase in average
earning assets and a wider net interest margin. The net
interest margin (TE) was 5.03% for the fourth quarter of 2005,
up 40 basis points from the year-earlier period. The overall
yield on earning assets increased 92 basis points from the fourth
quarter of 2004, reflecting both the rise in rates that serve as
benchmarks for the large variable-rate segment of Whitney's loan
portfolio and an increase in the percentage of loans in the
earning asset mix. Rising loan rates also drove a 21-basis point
improvement in the overall asset yield from the third quarter of
2005, even though the percentage of short-term investments in
the asset mix increased in response to the rapid build-up of the
deposit base as discussed earlier. The impact of this favorable
shift in deposit mix is also evident in the one basis-point
increase in funding costs between the third and fourth quarters
of 2005 and a 52 basis-point increase from the fourth quarter
of 2004. In addition, Whitney continued to manage the rate
structures for its different deposit products in an effort to
control the impact of the upward pressure on funding rates that
has been building since 2004.
o Average total loans for the quarter, including loans held for
sale, were up 19%, or $1.0 billion, compared to the fourth quarter
of 2004, with approximately 7%, or $400 million, associated with
the Destin Bank acquisition in April 2005. Although some recent
growth can be attributed to disaster-recovery work in the
storm-affected areas and increased economic activity in evacuee
relocation areas served by Whitney, the most significant
rebuilding efforts have not yet begun and associated demand for
credit will likely be spread over a number of years. Average
investment securities decreased 18%, or $367 million, from the
fourth quarter of 2004 to 2005's fourth quarter, with proceeds
supporting loan growth. As noted earlier, Whitney invested some of
the funds from the
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rapid post-storm build-up of deposits in liquidity
management securities in 2005's fourth quarter, and average
short-term investments for the period increased by $275
million compared to the fourth quarter of 2004. Total average
earning assets for the quarter were up a net 13%, or $956 million,
compared to the fourth quarter of 2004.
o Average deposits in the fourth quarter of 2005 were up 21%, or
$1.40 billion, compared to the fourth quarter of 2004, with
approximately 5% related to acquisitions. As noted earlier,
noninterest-bearing demand deposits jumped sharply following the
storms and, on average, were up 41%, or $863 million, in 2005's
fourth quarter compared to the year-earlier period, with only a
relatively small contribution from acquired operations.
o Whitney made no provision for loan losses in the fourth quarter
of 2005, compared to a $2 million provision in the fourth quarter
of 2004. In 2005's third quarter, Whitney had provided $34 million
for loan losses, mostly reflecting management's initial estimate
of the storms' ultimate impact on credit quality. As noted
earlier, extensive reviews of the storms' impact on borrowers were
performed during the fourth quarter of 2005, and the results,
which indicated a lower level of storm-related credit risk than
initially estimated, were factored into the determination of the
allowance at December 31, 2005. There was a $22 million net
increase in total nonperforming loans from the end of 2005's third
quarter, mainly from increased concerns unrelated to the storms
about one commercial customer in an industry to which the Bank has
no other significant exposure. The total of loans criticized
through the internal credit risk classification process increased
by $35 million during this period and the corresponding allowance
increased $5.6 million. Net-charge offs totaled $.9 million in
2005's fourth quarter, compared to net charge-offs of $2.3 million
in the fourth quarter of 2004.
o Noninterest income decreased 9%, or $1.8 million, from the fourth
quarter of 2004. Deposit service charge income decreased 31%, or
$2.8 million, compared to the fourth quarter of 2004. The
accumulation of deposit balances after the storms served to reduce
revenue from charges related to these deposit accounts. Another
important factor was the earnings credit allowed against service
charges on certain business deposit accounts that has grown with
the rise in short-term market rates. Improvements were noted in a
number of income categories, reflecting both internal growth and
contributions from acquired operations. Bank card fees, both
credit and debit cards, increased a combined
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26%, or $.7 million, compared to 2004's fourth quarter, mainly
reflecting higher transaction volumes. Fee income generated by
Whitney's secondary mortgage market operations was up 24%, or $.3
million, compared to 2004's fourth quarter, mainly on the
contribution from Destin Bank's mortgage operations. Mortgage loan
production rebounded in the fourth quarter of 2005 after an
initial sharp drop immediately after the storms. The categories
comprising other noninterest income decreased a net $.1 million in
the fourth quarter of 2005. The Destin acquisition added $.5
million in fees from investment and insurance brokerage services
to 2005's fourth quarter, and fees earned on unused credit lines
and letters of credit increased $.2 million. These and other
improvements to other noninterest income for the fourth quarter of
2005 were substantially offset by storm-related waivers of ATM
transaction fees and the loss of revenue during the temporary
closure of the main office parking facility in New Orleans.
o Noninterest expense in the fourth quarter of 2005 increased 17%,
or $10.9 million, from 2004's fourth quarter. Incremental
operating costs associated with Destin Bank totaled approximately
$2.4 million in the fourth quarter of 2005, and the amortization
of intangibles acquired in these transactions added $.7 million to
expense for the current year's period. Personnel expense increased
11%, or $4.3 million, in total. Base pay and compensation earned
under sales-based and other employee incentive programs increased
a combined 8%, or $2.2 million, including approximately $1.2
million for the staff of acquired operations. Compensation expense
under management incentive programs increased by $1.2 million in
the fourth quarter of 2005 compared to the year-earlier period.
Higher costs of providing pension and retiree health benefits
accounted for $.5 million out of the total $.9 million, or 12%,
increase in employee benefits in the fourth quarter of 2005, while
acquired operations contributed $.2 million. The cost of acquired
operations and the storm-related loss of office rental revenue
were the main factors behind the 12%, or $.6 million, increase in
net occupancy expense in 2005's fourth quarter. Through the end of
2005, Whitney expensed $4.4 million of storm-related disaster
response costs and casualty losses, of which $3.3 million was
included in the fourth quarter. These costs together with a $.5
million fourth quarter contribution to a disaster assistance fund
for Whitney's employees are reported in the total of other
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noninterest expense, as is the accrual of a $.6 million loss
contingency related to unfunded loan commitments.
In July 2005, Whitney announced a definitive agreement to acquire
First National Bancshares, Inc. of Bradenton, Florida and its subsidiary, 1st
National Bank & Trust. 1st National Bank & Trust operates in the Tampa Bay
metropolitan area of Florida and had approximately $378 million in total assets
at December 31, 2005. Subject to the receipt of approvals from First National's
shareholders and appropriate regulatory agencies and satisfaction of certain
other customary closing conditions, this acquisition is expected to be completed
in the second quarter of 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 future
plans and strategies.
There is pervasive uncertainty surrounding the future economic
conditions that will emerge in the portions of Whitney's service area
that were impacted by the two hurricanes. As a result, management's
estimates of the financial impact of these disasters on Whitney are
subject to a greater degree of possible imprecision than is inherent in
other forward-looking statements. The more significant estimates relate
to credit quality and the allowance for loan losses and to disaster
response costs and casualty and business interruption losses and the
related insurance coverage.
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 the actual pace and
magnitude of economic recovery in the regions impacted by the two
hurricanes that struck portions of Whitney's service area during the
third quarter of 2005 compared to management's current views on
recovery.
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
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Fourth Fourth Year Ended
Quarter Quarter December 31
(dollars in thousands, except per share data) 2005 2004 2005 2004
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INCOME DATA
Net interest income $ 106,426 $ 86,355 $ 387,099 $ 320,090
Net interest income (tax-equivalent) 107,907 87,972 392,979 326,237
Provision for loan losses - 2,000 37,000 2,000
Noninterest income 18,328 20,172 82,235 82,523
Net securities gains in noninterest income - - 68 68
Noninterest expense 76,657 65,719 286,978 260,278
Net income 35,149 26,998 102,349 97,137
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AVERAGE BALANCE SHEET DATA
Loans $6,512,421 $5,506,923 $6,137,676 $5,179,734
Investment securities 1,669,861 2,036,438 1,836,228 2,120,594
Earning assets 8,524,522 7,568,194 8,098,998 7,327,233
Total assets 9,539,789 8,170,990 8,903,321 7,890,183
Deposits 7,973,830 6,577,154 7,224,426 6,347,503
Shareholders' equity 952,579 925,176 935,362 881,477
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PER SHARE DATA
Earnings per share
Basic $ .56 $ .43 $ 1.65 $ 1.59
Diluted .55 .43 1.63 1.56
Cash dividends per share $ .25 $ .23 $ .98 $ .89
Book value per share, end of period $15.17 $14.57 $15.17 $14.57
Trading data
High sales price $29.93 $30.83 $33.69 $30.83
Low sales price 24.14 27.47 24.14 26.35
End-of-period closing price 27.56 29.99 27.56 29.99
Trading volume 16,175,745 10,193,418 50,434,066 27,662,252
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RATIOS
Return on average assets 1.46% 1.31% 1.15% 1.23%
Return on average shareholders' equity 14.64 11.61 10.94 11.02
Net interest margin 5.03 4.63 4.85 4.45
Dividend payout ratio 45.05 54.24 60.26 56.99
Average loans as a percentage of average deposits 81.67 83.73 84.96 81.60
Efficiency ratio 60.73 60.77 60.40 63.69
Allowance for loan losses as a percentage of
loans, at end of period 1.37 .97 1.37 .97
Nonperforming assets as a percentage of loans plus
foreclosed assets and surplus property, at end
of period 1.03 .46 1.03 .46
Average shareholders' equity as a percentage
of average total assets 9.99 11.32 10.51 11.17
Leverage ratio, at end of period 8.21 9.56 8.21 9.56
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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
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Fourth Fourth Year Ended
Quarter Quarter December 31
(dollars in thousands) 2005 2004 2005 2004
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ASSETS
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EARNING ASSETS
Loans $6,512,421 $5,506,923 $6,137,676 $5,179,734
Investment securities
Securities available for sale 1,441,405 1,810,177 1,608,391 1,903,571
Securities held to maturity 228,456 226,261 227,837 217,023
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Total investment securities 1,669,861 2,036,438 1,836,228 2,120,594
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Federal funds sold and short-term investments 288,420 13,205 87,798 13,926
Loans held for sale 53,820 11,628 37,296 12,979
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Total earning assets 8,524,522 7,568,194 8,098,998 7,327,233
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NONEARNING ASSETS
Goodwill and other intangible assets 231,504 140,838 204,729 109,713
Accrued interest receivable 52,464 31,439 39,750 30,064
Other assets 823,425 484,747 625,968 480,216
Allowance for loan losses (92,126) (54,228) (66,124) (57,043)
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Total assets $9,539,789 $8,170,990 $8,903,321 $7,890,183
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LIABILITIES
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INTEREST-BEARING LIABILITIES
Interest-bearing deposits
NOW account deposits $ 972,215 $ 842,536 $ 919,722 $ 810,074
Money market investment deposits 1,134,159 1,342,641 1,191,736 1,371,419
Savings deposits 971,406 702,667 829,777 652,689
Other time deposits 722,449 714,222 723,396 726,482
Time deposits $100,000 and over 1,219,056 883,398 1,120,566 809,324
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Total interest-bearing deposits 5,019,285 4,485,464 4,785,197 4,369,988
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Short-term and other borrowings 507,708 599,527 661,682 601,427
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Total interest-bearing liabilities 5,526,993 5,084,991 5,446,879 4,971,415
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NONINTEREST-BEARING LIABILITIES
--------------------------------------------------
Noninterest-bearing deposits 2,954,545 2,091,690 2,439,229 1,977,515
Accrued interest payable 11,028 5,511 8,474 5,222
Other liabilities 94,644 63,622 73,377 54,554
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Total liabilities 8,587,210 7,245,814 7,967,959 7,008,706
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SHAREHOLDERS' EQUITY 952,579 925,176 935,362 881,477
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Total liabilities and shareholders' equity $9,539,789 $ 8,170,990 $8,903,321 $7,890,183
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EARNING ASSETS LESS
INTEREST-BEARING LIABILITIES $2,997,529 $2,483,203 $2,652,119 $2,355,818
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WHITNEY HOLDING CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
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December 31 December 31
(dollars in thousands) 2005 2004
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ASSETS
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Cash and due from financial institutions $ 554,827 $ 213,751
Federal funds sold and short-term investments 805,758 22,424
Loans held for sale 46,678 8,796
Investment securities
Securities available for sale 1,413,763 1,763,774
Securities held to maturity 227,688 227,470
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Total investment securities 1,641,451 1,991,244
Loans 6,560,597 5,626,276
Allowance for loan losses (90,028) (54,345)
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Net loans 6,470,569 5,571,931
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Bank premises and equipment 151,978 156,602
Goodwill 204,089 115,771
Other intangible assets 26,304 24,240
Accrued interest receivable 52,808 28,985
Other assets 154,544 88,880
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Total assets $10,109,006 $8,222,624
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LIABILITIES
-------------------------------------------------------------------
Noninterest-bearing demand deposits $ 3,301,227 $2,111,703
Interest-bearing deposits 5,303,609 4,500,904
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Total deposits 8,604,836 6,612,607
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Short-term and other borrowings 433,350 634,259
Accrued interest payable 10,538 5,032
Other liabilities 99,239 65,961
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Total liabilities 9,147,963 7,317,859
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SHAREHOLDERS' EQUITY
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Common stock, no par value 2,800 2,800
Capital surplus 261,318 250,793
Retained earnings 738,655 697,977
Accumulated other comprehensive income (21,223) (2,963)
Treasury stock at cost (9,363) (31,475)
Unearned restricted stock compensation (11,144) (12,367)
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Total shareholders' equity 961,043 904,765
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Total liabilities and shareholders' equity $10,109,006 $8,222,624
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WHITNEY HOLDING CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
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Fourth Fourth Year Ended
Quarter Quarter December 31
(dollars in thousands, except per share data) 2005 2004 2005 2004
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INTEREST INCOME
Interest and fees on loans $ 110,995 $ 76,860 $ 390,058 $ 272,460
Interest and dividends on investments 17,023 21,171 74,606 88,131
Interest on federal funds sold and
short-term investments 2,965 64 3,421 181
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Total interest income 130,983 98,095 468,085 360,772
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INTEREST EXPENSE
Interest on deposits 20,700 9,606 64,452 34,665
Interest on short-term and other borrowings 3,857 2,134 16,534 6,017
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Total interest expense 24,557 11,740 80,986 40,682
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NET INTEREST INCOME 106,426 86,355 387,099 320,090
PROVISION FOR LOAN LOSSES - 2,000 37,000 2,000
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NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 106,426 84,355 350,099 318,090
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NONINTEREST INCOME
Service charges on deposit accounts 6,183 8,988 30,579 37,148
Bank card fees 3,470 2,760 11,972 10,319
Trust service fees 2,357 2,263 9,483 8,959
Secondary mortgage market operations 1,413 1,140 5,022 4,925
Other noninterest income 4,905 5,021 25,111 21,104
Securities transactions - - 68 68
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Total noninterest income 18,328 20,172 82,235 82,523
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NONINTEREST EXPENSE
Employee compensation 34,541 31,127 132,488 119,713
Employee benefits 8,203 7,284 33,020 29,644
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Total personnel 42,744 38,411 165,508 149,357
Net occupancy 6,026 5,382 22,846 20,461
Equipment and data processing 4,077 4,550 17,344 17,636
Telecommunication and postage 2,578 2,124 9,154 8,846
Corporate value and franchise taxes 1,968 1,732 7,824 7,496
Legal and other professional services 1,357 1,581 6,091 5,943
Amortization of intangibles 2,255 1,631 8,261 5,657
Other noninterest expense 15,652 10,308 49,950 44,882
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Total noninterest expense 76,657 65,719 286,978 260,278
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INCOME BEFORE INCOME TAXES 48,097 38,808 145,356 140,335
INCOME TAX EXPENSE 12,948 11,810 43,007 43,198
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NET INCOME $ 35,149 $ 26,998 $ 102,349 $ 97,137
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EARNINGS PER SHARE
Basic $ .56 $ .43 $ 1.65 $ 1.59
Diluted .55 .43 1.63 1.56
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WEIGHTED-AVERAGE SHARES OUTSTANDING
Basic 62,729,336 62,275,253 62,008,004 61,122,581
Diluted 63,533,521 63,230,561 62,953,293 62,083,043
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CASH DIVIDENDS PER SHARE $ .25 $ .23 $ .98 $ .89
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WHITNEY HOLDING CORPORATION AND SUBSIDIARIES
SUMMARY OF INTEREST RATES (TAX-EQUIVALENT)*
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Fourth Third Fourth Year Ended
Quarter Quarter Quarter December 31
2005 2005 2004 2005 2004
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EARNING ASSETS
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Loans** 6.72% 6.42% 5.55% 6.33% 5.26%
Investment securities 4.37 4.29 4.44 4.34 4.41
Federal funds sold and short-term investments 4.08 3.61 1.93 3.90 1.30
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Total interest-earning assets 6.17% 5.96% 5.25% 5.85% 5.01%
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INTEREST-BEARING LIABILITIES
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Interest-bearing deposits
NOW account deposits .55% .56% .39% .52% .37%
Money market investment deposits 1.22 1.08 .65 1.00 .65
Savings deposits .90 .84 .39 .72 .34
Other time deposits 2.12 1.87 1.29 1.76 1.31
Time deposits $100,000 and over 3.19 2.74 1.62 2.59 1.36
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Total interest-bearing deposits 1.64 1.47 .85 1.35 .79
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Short-term and other borrowings 3.01 2.89 1.42 2.50 1.00
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Total interest-bearing liabilities 1.76% 1.66% .92% 1.49% .82%
------------------------------------- -------------------
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NET INTEREST SPREAD (tax-equivalent)
-----------------------------------------------------------------
Yield on earning assets less cost of interest-
bearing liabilities 4.41% 4.30% 4.33% 4.36% 4.19%
------------------------------------- -------------------
------------------------------------------------------------------------------------------------------ -------------------
NET INTEREST MARGIN (tax-equivalent)
-----------------------------------------------------------------
Net interest income (tax-equivalent) as a
percentage of average earning assets 5.03% 4.83% 4.63% 4.85% 4.45%
------------------------------------- -------------------
------------------------------------------------------------------------------------------------------ -------------------
COST OF FUNDS
-----------------------------------------------------------------
Interest expense as a percentage of average interest-
bearing liabilities plus interest-free funds 1.14% 1.13% .62% 1.00% .56%
------------------------------------------------------------------------------------------------------ -------------------
* 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
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WHITNEY HOLDING CORPORATION AND SUBSIDIARIES
LOAN QUALITY
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Fourth Fourth Year Ended
Quarter Quarter December 31
(dollars in thousands) 2005 2004 2005 2004
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ALLOWANCE FOR LOAN LOSSES
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Allowance for loan losses at beginning of period $ 90,946 $ 54,611 $ 54,345 $ 59,475
Allowance of acquired banks - - 3,648 2,461
Provision for loan losses - 2,000 37,000 2,000
Loans charged off (1,817) (3,221) (10,656) (14,030)
Recoveries on loans previously charged off 899 955 5,691 4,439
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Net loans charged off (918) (2,266) (4,965) (9,591)
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Allowance for loan losses at end of period $ 90,028 $ 54,345 $ 90,028 $ 54,345
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Annualized net charge-offs as a percentage
of average loans .06 % .16 % .08 % .19 %
Annualized gross charge-offs as a percentage of
average loans .11 % .23 % .17 % .27 %
Recoveries as a percentage of gross charge-offs 49.48 % 29.65 % 53.41 % 31.64 %
Allowance for loan losses as a percentage of
loans, at end of period 1.37 % .97 % 1.37 % .97 %
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December 31 September 30 December 31
2005 2005 2004
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NONPERFORMING ASSETS
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Loans accounted for on a nonaccrual basis $ 65,565 $ 43,763 $ 23,597
Restructured loans 30 30 49
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Total nonperforming loans 65,595 43,793 23,646
Foreclosed assets and surplus property 1,708 794 2,454
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Total nonperforming assets $ 67,303 $ 44,587 $ 26,100
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Nonperforming assets as a percentage of loans plus
foreclosed assets and surplus property, at end of period 1.03 % .69 % .46 %
Allowance for loan losses as a percentage of
nonaccruing loans, at end of period 137 % 208 % 230 %
Allowance for loan losses as a percentage of
nonperforming loans, at end of period 137 % 208 % 230 %
Loans 90 days past due still accruing $ 13,728 $ 5,358 $ 3,533
Loans 90 days past due still accruing as a
percentage of loans, at end of period .21 % .08 % .06 %
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- END -
The following information was filed by Whitney Holding Corp (WTNY) on Wednesday, January 25, 2006 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
