(Source: PrimeNewswire)NEW ORLEANS, Oct. 19, 2009 (GLOBE NEWSWIRE) -- Whitney Holding Corporation (Nasdaq:WTNY) (the "Company") recorded a net loss of $30.0 million for the third quarter of 2009 compared to a net loss of $21.3 million for the second quarter of 2009. Including dividends on preferred stock, the loss to common shareholders was $34.1 million, or $.50 per diluted common share, for the third quarter of 2009 compared to $25.4 million, or $.38 per diluted share, for the second quarter of 2009. The Company earned $7.0 million, or $.11 per diluted common share, for the third quarter of 2008.

"Whitney is a strong franchise that continues to report a stable core deposit base and a top ranked net interest margin," said John C. Hope, III, Chairman and CEO. "Our loan portfolio outside of Florida is performing in line with our expectations despite increasing levels of stress from the overall economic environment and we are managing all problem areas aggressively. While addressing credit issues is currently our top priority, we remain committed to our Strategic Plan with the goal of creating long-term value for our shareholders."

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.

KEY COMPONENTS OF THIRD QUARTER FINANCIAL RESULTS

Loans and Earning Assets

Total loans at the end of the third quarter of 2009 were down $315 million from June 30, 2009, with reductions in most sectors of the loan portfolio and across our regional markets. Commercial and industrial (C&I) loans, including commercial real estate (CRE) loans secured by properties used in the borrower's business, were down $215 million, construction land and land development loans were down $76 million and other CRE loans were down $15 million. Included in the quarter's decline were charge-offs of $63.5 million, foreclosures of approximately $16 million and larger problem loan resolutions of $16 million.

Average loans for the third quarter of 2009 were down $284 million, or 3%, compared to the second quarter of 2009. Earning assets were also down approximately 3% on average compared to the second quarter.

Our largest industry exposure is to the oil & gas sector and loans outstanding to those customers represent $962 million, or approximately 11% of loans at September 30, 2009. The shared national credits portfolio totaled $681 million at September 30, 2009, down $102 million from June 30, 2009. Approximately $282 million of the total shared national credit portfolio is related to the oil & gas sector.

Deposits and Funding

Average deposits in the third quarter of 2009 were down 1.5%, or $137 million, compared to the second quarter of 2009. Period-end deposits were down approximately $264 million or 3% compared to June 30, 2009, reflecting mainly declines in competitively bid public fund deposits and deposits held in treasury-management sweep products used by corporate customers.

Noninterest-bearing demand deposits were stable to slightly higher in the third quarter of 2009 and comprised 34% of total average deposits and funded approximately 29% of average earning assets for the period. The percentage of funding from all noninterest-bearing sources totaled 34%. Higher-cost interest-bearing funds, which include time deposits and borrowings, funded 31% of average earning assets in the third quarter of 2009, compared to 33% in the second quarter of 2009.

Net Interest Income

Net interest income (TE) for the third quarter of 2009 decreased less than 1%, or $.8 million, compared to the second quarter of 2009. Although average earning assets were down 3% between these periods, the net interest margin (TE) improved 6 basis points to 4.11% from 4.05%. The margin expansion reflected both a small increase in earning asset yields and a further reduction in the cost of funds. Asset yields benefited from an improved asset mix, while the reduction in cost of funds was driven mainly by the maturity or renewal of higher-cost certificates of deposit in the current low interest rate environment. Certificates of deposit from a special campaign a year earlier matured or renewed in September 2009. The start of scheduled rate reductions on deposits from a special money market campaign offered during the second quarter of 2009 also benefited the cost of funds in the third quarter of 2009.

The lost interest on nonaccruing loans reduced the net interest margin by approximately 20 basis points in both the third and second quarters of 2009. The rates on approximately 28% and 27% of the loan portfolio at September 30, 2009 vary based on LIBOR and prime rate benchmarks, respectively. The Bank has increased the use of rate floors on its loan products and approximately 58% of our LIBOR/prime-based loans currently have rate floors.

Provision for Credit Losses and Credit Quality

Whitney provided $80.5 million for credit losses in the third quarter of 2009, compared to $74.0 million in the second quarter of 2009. Provisions related to impaired loans accounted for more than half of the quarter's total provision for credit losses. Over $30 million of the impaired loan provisions came from the Tampa, Florida market reflecting in part the continued declines in appraised real estate values. The remainder of the quarter's provision for credit losses was related to a net increase in total criticized loans for the third quarter of 2009 of $131 million, smaller consumer charge-offs and qualitative adjustments. Approximately $100 million of the increase in criticized loans came from oil & gas industry credits and commercial construction, land and land development loans serviced from our Texas market.

Net loan charge-offs in the third quarter of 2009 were $61.9 million, or 2.86%, of average loans on an annualized basis, compared to $46.7 million or 2.09% of average loans in the second quarter of 2009. The majority of total gross charge-offs, approximately 76%, came from credits in the Florida market and was heavily concentrated in residential-related real estate loans.

The provision for loan losses exceeded net charge-offs by $19.1 million during the third quarter which further strengthened the allowance for loan losses to 2.81% of total loans at September 30, 2009, up from 2.50% at June 30, 2009 and 1.55% at September 30, 2008.

Nonperforming loans totaled $406 million at September 30, 2009, a decrease of $7.3 million from June 30, 2009. At September 30, 2009 loans past due 90 days or more and still accruing totaled $15 million, down from $20 million at June 30, 2009. Loans past due 30-89 days totaled approximately $87 million, reflecting a $10 million increase from June 30, 2009.

Noninterest Income

Noninterest income for the third quarter of 2009 decreased 10%, or $3.2 million, from the second quarter of 2009. Fee income from Whitney's secondary mortgage market operations declined 27%, or $.8 million, on a slowdown in refinancing activity. The other noninterest income category declined a total of $2.9 million from the second quarter of 2009 which included a $1.8 million distribution from an investment in a local small business investment company and an additional $.5 million of revenue from the Company's grandfathered foreclosed assets. Part of the decline in other noninterest income for the third quarter of 2009 was offset by the increase in bankcard fees that reflected a change in the reporting of certain transactions by a new processor.

Noninterest Expense

Total noninterest expense for the third quarter of 2009 decreased $8.2 million, or 7%, from the second quarter of 2009. The second quarter of 2009 included a $5.5 million special deposit insurance assessment that was imposed industry-wide by the FDIC.