Whitney Holding Corp. has a market cap of $1.24 billion; its shares were traded at around $12.86 with and P/S ratio of 2.1. The dividend yield of Whitney Holding Corp. stocks is 0.3%.
Highlight of Business Operations:Whitney recorded net income of $17.2 million for the first quarter of 2011, compared to net losses of $88.5 million and $6.3 million, respectively, in the fourth and first quarters of 2010. Including dividends on preferred stock, net income to common shareholders was $13.1 million, or $.13 per diluted common share, for the first quarter of 2011. This compares to losses of $92.6 million, or $.96 per diluted share, in the fourth quarter of 2010 and $10.3 million, or $.11 per diluted share, in 2010 s first quarter.
The reclassification had a direct impact of approximately $112 million on the Company s provision for loan losses for the fourth quarter of 2010 reflecting the cost associated with aggressively dealing with problem credits through bulk sale transactions versus individual problem credit resolutions. The carrying value of these loans at December 31, 2010 was $158 million. In the first quarter of 2011, Whitney sold approximately $95 million in carrying value of nonperforming loans held for sale, including the previously announced $83 million bulk sale completed in January 2011.
Total noninterest expense for the first quarter of 2011 was down $22.2 million from the fourth quarter of 2010. Expenses associated with the pending merger with Hancock totaled $1.2 million in the first quarter of 2011 and $4.1 million in the fourth quarter of 2010. Loan collection costs, together with foreclosed management expenses, provisions for valuation losses on foreclosed assets and legal fees associated with problem credits totaled $8.8 million in the first quarter of 2011, down $11.7 million from the fourth quarter of 2010. As previously disclosed, problem resolution expenses were expected to be lower as the Company disposed of the problem loans held for sale. Legal and professional fees, excluding those associated with problem credits, declined $1.7 million, related mainly to costs associated with Whitney s major technology project which has been suspended in anticipation of the merger with Hancock. Training expenses related to the technology project were down approximately $1.0 million from the fourth quarter of 2010.
The portfolio of C&I loans, including real estate loans secured by properties used in the borrower s business, decreased $86 million, or 2%, between year-end 2010 and March 31, 2011. C&I loans outstanding to oil and gas (O&G) industry customers declined approximately $67 million during the first quarter of 2011. There were also repayments on some seasonal C&I credits during the first quarter of 2011 totaling approximately $24 million. C&I charge-offs totaled $4 million for the period. In addition to the O&G industry, the C&I portfolio is diversified over a range of industries, including wholesale and retail trade in various durable and nondurable products and the manufacture of such products, marine transportation and maritime construction, hospitality, financial services and professional services.
Outstanding balances under participations in larger shared-credit loan commitments totaled $527 million at the end of 2011 s first quarter, compared to $509 million outstanding at year-end 2010. The total at March 31, 2011 included approximately $148 million related to the O&G industry, which was down $11 million from the end of 2010. Substantially all of the shared credits are with customers operating in Whitney s market area.
The commercial real estate (CRE) portfolio includes loans for construction and land development and investment (C&D), both commercial and residential, and other real estate loans secured by income-producing properties. The CRE portfolio decreased $173 million, or 8%, during the first quarter of 2011. Approximately $75 million of CRE loans were transferred to the C&I portfolio during the first quarter of 2011 following the completion of construction on properties used by C&I customers and the reclassification of real estate loans to customers in certain industries. The remaining decrease reflected payoffs from the refinancing of recently completed construction projects, other scheduled repayments on both project and permanent CRE loans and approximately $9 million of charge-offs and foreclosures. Project financing is an important component of the CRE portfolio sector, and sector growth is impacted by the availability of new projects as well as the anticipated refinancing of seasoned income properties in the secondary market and payments on residential development loans as inventory is sold. Management expects that current economic conditions and uncertainty will limit the availability of new creditworthy CRE projects throughout Whitney s market area over the near term.
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