NEW ORLEANS, Jan. 26, 2010 (GLOBE NEWSWIRE) -- Whitney Holding Corporation (Nasdaq:WTNY) (the "Company") reported net income of $318,000 for the fourth quarter of 2009 compared to a net loss of $30.0 million for the third quarter of 2009. Including dividends on preferred stock, the loss to common shareholders was $3.75 million, or $.04 per diluted common share, for the fourth quarter of 2009 compared to a loss of $34.1 million, or $.50 per diluted share, for the third quarter of 2009. The Company earned $8.2 million, or $.12 per diluted common share, for the fourth quarter of 2008. For the year ended December 31, 2009, the net loss to common shareholders totaled $78.4 million, or $1.08 per diluted share, compared with earnings to common shareholders in 2008 of $58.0 million, or $.88 per diluted share.
"I am very encouraged by some of the positive signs emerging from our fourth quarter results, especially those related to credit quality," said John C. Hope, III, Chairman and CEO. "The provision for credit losses was down over 50% from its peak in the third quarter of 2009, criticized loans declined $124 million from September 30, 2009 and our loan portfolio outside of Florida and coastal Alabama continues to perform as expected. While 2010 will continue to be impacted by credit quality cleanup and an improving, yet still uncertain, economy, I am optimistic that the credit situation is normalizing and I am hopeful we will soon see a return to full-year profitability. We are focused on the items we can control, our strategic initiatives and related investments remain on track and we are poised to capitalize on the opportunities ahead."
The impact of the acquisition of Parish National Corporation (Parish) is reflected in the Company's financial information from the November 7, 2008 acquisition date.
HIGHLIGHTS OF FOURTH QUARTER FINANCIAL RESULTS
Loans and Earning Assets
Total loans at the end of the fourth quarter of 2009 were $8.4 billion, down $74 million or less than 1% from September 30, 2009. Included in the quarter's decline were charge-offs of almost $58 million, foreclosures of approximately $15 million and problem loan sales of approximately $7 million. Average loans for the fourth quarter of 2009 were down $227 million, or 3%, compared to the third quarter of 2009. Earning assets were down less than 1% on average compared to the third quarter.
We continue to believe economic conditions will likely restrain loan demand for the first half of 2010 with slow growth expectations for the second half of 2010 as the economy begins to recover and strengthen.
Our largest industry exposure is to the oil & gas sector and loans outstanding to those customers represented $894 million, or approximately 11% of loans at December 31, 2009. The shared national credits portfolio totaled $680 million at year-end 2009, essentially unchanged from September 30, 2009. Approximately $247 million of the total shared national credit portfolio is related to the oil & gas sector.
Commercial loans secured by owner-occupied real estate have been reclassified from the commercial real estate (CRE) category to the commercial and industrial (C&I) category in the loan portfolio detail. Management evaluates the loan portfolio in this manner and believes this change will more accurately reflect the risks in that portion of the portfolio.
Deposits and Funding
Average deposits in the fourth quarter of 2009 were down $59 million, or less than 1%, compared to the third quarter of 2009. Deposits at December 31, 2009 increased $270 million or 3% compared to September 30, 2009. Year-end balances include seasonal commercial and public fund deposit inflows.
Noninterest-bearing deposits for the fourth quarter were up 4.5% on average and 5.5%, or $171 million, on an end-of-period basis from the third quarter of 2009. Noninterest-bearing demand deposits comprised 36% of total average deposits and funded 30% of average earning assets for the period. The percentage of funding from all noninterest-bearing sources totaled 36%. Higher-cost interest-bearing funds, which include time deposits and borrowings, funded 28% of average earning assets in the fourth quarter of 2009, compared to 31% in the third quarter of 2009.
Net Interest Income
Net interest income (TE) for the fourth quarter of 2009 increased 1.3%, or $1.4 million, compared to the third quarter of 2009. Although average earning assets were down slightly between these periods, the net interest margin (TE) improved 9 basis points to 4.20% from 4.11%, reflecting mainly a further reduction in the cost of funds. Funding costs benefited from the maturity or renewal in the current low interest rate environment of higher-cost certificates of deposit from a 2008 campaign as well as rate reductions on deposits from a special money market campaign earlier in 2009.
The interest income lost on nonaccruing loans reduced the net interest margin by approximately 20 basis points in both the fourth and third quarters of 2009. The rates on approximately 56% of the loan portfolio at December 31, 2009 vary based on LIBOR (28%) and prime (28%) rate benchmarks. The Bank has increased the use of rate floors on its loan products and at the end of the fourth quarter of 2009 approximately 59% of its LIBOR/prime-based loans have rate floors.
Provision for Credit Losses and Credit Quality
Whitney provided $39.5 million for credit losses in the fourth quarter of 2009, down 51%, or $41 million, compared to $80.5 million in the third quarter of 2009. Provisions related to impaired loans accounted for 75%, or almost $30 million of the quarter's total provision for credit losses, with almost $26 million from the Florida and Alabama markets. These provisions reflect in part the continued declines in appraised real estate values. The remainder of the quarter's provision for credit losses was related to residential mortgage and consumer charge-offs.
Total criticized loans declined $124 million during the fourth quarter from its peak of $1.18 billion in the third quarter of 2009. Criticized loans in Louisiana, Florida and Texas declined $52 million, $39 million and $33 million, respectively.
Net loan charge-offs in the fourth quarter of 2009 were $54.5 million, or 2.59% of average loans on an annualized basis, compared to $61.9 million, or 2.86% of average loans, in the third quarter of 2009. Approximately 70% of total gross charge-offs came from credits in the Florida market, mainly the Tampa Bay region.
The allowance for loan losses represented 2.66% of total loans at year-end 2009, down from 2.81% at September 30, 2009 and up from 1.77% at December 31, 2008.
Nonperforming loans totaled $414 million at December 31, 2009, an increase of $8 million from September 30, 2009. At year-end 2009, loans past due 90 days or more and still accruing totaled $23 million, up from $15 million at September 30, 2009.
Noninterest Income
Noninterest income for 2009's fourth quarter decreased less than 1%, or $.2 million, from the third quarter of 2009. Deposit service charge income in the fourth quarter of 2009 was down 3%, or $.3 million, reflecting mainly the impact of higher balances maintained in commercial accounts subject to analysis charges and earnings credits. There were no significant trends underlying changes in other noninterest income categories. The increase in bankcard fee income was partly offset by the decrease in the other noninterest income category and reflected a change in the reporting of certain transactions by a new processor.
Noninterest Expense
Total noninterest expense for the fourth quarter of 2009 increased less than 1%, or $.5 million, from the third quarter of 2009.
Total personnel expense for the fourth quarter of 2009 decreased $1.1 million, or 2%, from the third quarter of 2009. Employee compensation decreased $2.1 million mainly from reductions in both sales-based incentive plan compensation and share-based compensation on revised performance estimates. No management cash bonus was accrued in 2009. The cost of employee benefits increased $.9 million for the fourth quarter related mainly to retirement plans.
Loan collection costs, including legal services, foreclosed asset expenses and provisions for valuation losses, totaled $8.6 million in the fourth quarter, up $1.8 million from the third quarter of 2009. This increase was the main factor behind the overall increase in the other noninterest expense category.
Capital
During the fourth quarter of 2009 Whitney announced and completed an underwritten public offering of the Company's common stock. The underwriters purchased 28.75 million shares at a public offering price of $8.00 per share. The net proceeds to the Company after deducting offering expenses and underwriting discounts and commissions was $218 million.
As a result of the offering, the Company's year-end 2009 tangible common equity ratio was strengthened to 8.18%, while the leverage ratio improved over 200 basis points to 11.05% compared to September 30, 2009.
Conference Call and Additional Financial Information
Management will host a conference call today at 3:00 p.m. CST to review fourth quarter 2009 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 (888) 293-6979 or (719) 325-2348.
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 2, 2010 by dialing (888) 203-1112 or (719) 457-0820, passcode 2142057.
This earnings release, including additional financial tables and a slide presentation related to fourth quarter 2009 results, is posted in the Investor Relations section of the Company's web site at http://investor.whitneybank.com/releases.cfm?ReleasesType=Earnings&Year=2010.
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.
The Whitney Holding Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5777
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, and we intend such forward-looking statements to be covered by the safe harbor provisions therein and are including this statement for purposes of invoking these safe-harbor provisions. 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 profitability, benefits from implementing our Strategic Plan, loan demand, economic recovery, capital strength and credit quality trends in the overall loan portfolio and specific industry or geographic segments within the portfolio.
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 Whitney's forward-looking statements include, but are not limited to, those risk factors 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)
WHITNEY HOLDING CORPORATION AND SUBSIDIARIES
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FINANCIAL HIGHLIGHTS
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Fourth Third Fourth Year Ended
Quarter Quarter Quarter December 31
(dollars in thousands, except
per share data) 2009 2009 2008 2009 2008
----------------------------- ----------- ----------- ----------- ----------- -----------
INCOME DATA
Net interest income $111,391 $109,854 $119,540 $443,432 $455,645
Net interest income
(tax-equivalent) 112,396 110,975 120,902 448,115 460,662
Provision for credit losses 39,500 80,500 45,000 259,000 134,000
Noninterest income 29,026 29,227 27,050 119,950 107,172
Net securities gains in
noninterest income 139 195 -- 334 67
Noninterest expense 104,143 103,596 92,026 416,394 351,094
Net income (loss) 318 (30,024) 8,808 (62,146) 58,585
Net income (loss) to common
shareholders (3,749) (34,091) 8,220 (78,372) 57,997
----------- ----------- ----------- ----------- -----------
QUARTER-END BALANCE SHEET
DATA
Loans $8,403,443 $8,476,989 $9,081,850 $8,403,443 $9,081,850
Investment securities 2,050,440 2,005,881 1,939,355 2,050,440 1,939,355
Earning assets 10,699,847 10,561,425 11,209,246 10,699,847 11,209,246
Total assets 11,892,141 11,656,468 12,380,501 11,892,141 12,380,501
Noninterest-bearing deposits 3,301,354 3,130,426 3,233,550 3,301,354 3,233,550
Total deposits 9,149,894 8,880,377 9,261,594 9,149,894 9,261,594
Shareholders' equity 1,681,064 1,465,431 1,525,478 1,681,064 1,525,478
----------- ----------- ----------- ----------- -----------
AVERAGE BALANCE SHEET DATA
Loans $8,434,397 $8,661,806 $8,700,317 $8,775,662 $8,066,639
Investment securities 2,025,103 1,966,020 1,876,338 1,946,241 1,967,375
Earning assets 10,635,573 10,723,215 10,719,892 10,867,461 10,122,620
Total assets 11,733,149 11,796,108 11,777,922 11,955,596 11,080,342
Noninterest-bearing deposits 3,222,748 3,083,404 2,975,869 3,134,811 2,786,003
Total deposits 9,017,220 9,076,350 8,646,612 9,106,002 8,368,937
Shareholders' equity 1,629,312 1,485,525 1,264,714 1,542,293 1,225,177
----------- ----------- ----------- ----------- -----------
COMMON SHARE DATA
Earnings (loss) per share
Basic $(.04) $(.50) $.12 $(1.08) $.89
Diluted (.04) (.50) .12 (1.08) .88
Cash dividends per share $.01 $.01 $.20 $.04 $1.13
Book value per share, end of
period $14.37 $17.30 $18.29 $14.37 $18.29
Tangible book value per
share, end of period $9.71 $10.63 $11.48 $9.71 $11.48
Trading data
High sales price $9.69 $11.27 $26.37 $16.16 $33.02
Low sales price 7.78 7.94 14.14 7.78 13.96
End-of-period closing price 9.11 9.54 15.99 9.11 15.99
Trading volume 79,863,609 49,059,850 42,771,277 240,128,345 214,317,545
----------- ----------- ----------- ----------- -----------
RATIOS
Return on average assets .01 % (1.01)% .30 % (.52)% .53 %
Return on average common
equity (1.11) (11.36) 2.67 (6.28) 4.77
Net interest margin (TE) 4.20 4.11 4.49 4.12 4.55
Average loans to average
deposits 93.54 95.43 100.62 96.37 96.39
Efficiency ratio 73.71 73.99 62.20 73.34 61.84
Annualized expenses to
average assets 3.55 3.51 3.13 3.48 3.17
Allowance for loan losses to
loans, end of period 2.66 2.81 1.77 2.66 1.77
Annualized net charge-offs
to average loans 2.59 2.86 .91 2.22 .88
Nonperforming assets to
loans plus foreclosed
assets and surplus
property, end of period 5.52 5.34 3.61 5.52 3.61
Average shareholders' equity
to average total assets 13.89 12.59 10.74 12.90 11.06
Tangible common equity to
tangible assets, end of
period 8.18 6.42 6.49 8.18 6.49
Leverage ratio, end of
period 11.05 8.99 9.87 11.05 9.87
----------- ----------- ----------- ----------- -----------
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).
The tangible common equity to tangible assets ratio is total
shareholders' equity less preferred stock and intangible assets
divided by total assets less intangible assets.
WHITNEY HOLDING CORPORATION
AND SUBSIDIARIES
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QUARTERLY TRENDS
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Fourth Third Second First Fourth
Quarter Quarter Quarter Quarter Quarter
(dollars in thousands, except
per share data) 2009 2009 2009 2009 2008
----------------------------- ----------- ----------- ----------- ----------- -----------
INCOME DATA
Net interest income $111,391 $109,854 $110,572 $111,615 $119,540
Net interest income
(tax-equivalent) 112,396 110,975 111,820 112,924 120,902
Provision for credit losses 39,500 80,500 74,000 65,000 45,000
Noninterest income 29,026 29,227 32,431 29,266 27,050
Net securities gains in
noninterest income 139 195 -- -- --
Noninterest expense 104,143 103,596 111,807 96,848 92,026
Net income (loss) 318 (30,024) (21,301) (11,139) 8,808
Net income (loss) to common
shareholders (3,749) (34,091) (25,368) (15,164) 8,220
----------- ----------- ----------- ----------- -----------
QUARTER-END BALANCE SHEET
DATA
Loans $ 8,403,443 $ 8,476,989 $ 8,791,840 $ 8,953,307 $ 9,081,850
Investment securities 2,050,440 2,005,881 1,942,365 1,889,161 1,939,355
Earning assets 10,699,847 10,561,425 10,861,061 10,908,643 11,209,246
Total assets 11,892,141 11,656,468 11,975,082 12,020,481 12,380,501
Noninterest-bearing deposits 3,301,354 3,130,426 3,081,617 3,176,783 3,233,550
Total deposits 9,149,894 8,880,377 9,144,041 9,212,361 9,261,594
Shareholders' equity 1,681,064 1,465,431 1,487,994 1,522,085 1,525,478
----------- ----------- ----------- ----------- -----------
AVERAGE BALANCE SHEET DATA
Loans $ 8,434,397 $ 8,661,806 $ 8,945,911 $ 9,068,755 $ 8,700,317
Investment securities 2,025,103 1,966,020 1,906,932 1,885,158 1,876,338
Earning assets 10,635,573 10,723,215 11,062,643 11,054,605 10,719,892
Total assets 11,733,149 11,796,108 12,140,311 12,159,252 11,777,922
Noninterest-bearing deposits 3,222,748 3,083,404 3,082,248 3,150,615 2,975,869
Total deposits 9,017,220 9,076,350 9,212,882 9,119,000 8,646,612
Shareholders' equity 1,629,312 1,485,525 1,520,609 1,533,293 1,264,714
----------- ----------- ----------- ----------- -----------
COMMON SHARE DATA
Earnings (loss) per share
Basic $(.04) $(.50) $(.38) $(.22) $.12
Diluted (.04) (.50) (.38) (.22) .12
Cash dividends per share $.01 $.01 $.01 $.01 $.20
Book value per share, end of
period $14.37 $17.30 $17.63 $18.22 $18.29
Tangible book value per
share, end of period $9.71 $10.63 $10.93 $11.46 $11.48
Trading data
High sales price $9.69 $11.27 $15.33 $16.16 $26.37
Low sales price 7.78 7.94 8.33 8.17 14.14
End-of-period closing price 9.11 9.54 9.16 11.45 15.99
Trading volume 79,863,609 49,059,850 62,308,611 48,896,275 42,771,277
----------- ----------- ----------- ----------- -----------
RATIOS
Return on average assets .01 % (1.01)% (.70)% (.37)% .30 %
Return on average common
equity (1.11) (11.36) (8.30) (4.96) 2.67
Net interest margin (TE) 4.20 4.11 4.05 4.13 4.49
Average loans to average
deposits 93.54 95.43 97.10 99.45 100.62
Efficiency ratio 73.71 73.99 77.51 68.11 62.20
Annualized expenses to
average assets 3.55 3.51 3.68 3.19 3.13
Allowance for loan losses to
loans, end of period 2.66 2.81 2.50 2.17 1.77
Annualized net charge-offs
to average loans 2.59 2.86 2.09 1.41 .91
Nonperforming assets to
loans plus foreclosed
assets and surplus
property, end of period 5.52 5.34 5.17 4.50 3.61
Average shareholders' equity
to average total assets 13.89 12.59 12.53 12.61 10.74
Tangible common equity to
tangible assets, end of
period 8.18 6.42 6.42 6.68 6.49
Leverage ratio, end of
period 11.05 8.99 9.21 9.47 9.87
----------- ----------- ----------- ----------- -----------
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).
The tangible common equity to tangible assets ratio is total
shareholders' equity less preferred stock and intangible assets
divided by total assets less intangible assets.
CONTACT: Whitney Holding Corporation
Thomas L. Callicutt, Jr., CFO
Trisha Voltz Carlson, Investor Relations
504/299-5208
tcarlson@whitneybank.com