DBRS Confirms Ratings of Whitney Holding Corp. at BBB (high); Trend Remains Stable

DBRS has today confirmed the ratings for Whitney Holding Corporation (Whitney or the Company) and its principal operating bank subsidiary, Whitney National Bank, as indicated in the table below. The rating action follows a detailed review of the Company’s operating performance and credit fundamentals. The trend for all ratings is Stable

Whitney’s ratings take into account a historically strong and deep-rooted commercial banking franchise in New Orleans and other metropolitan areas in Louisiana, a solid core deposit base that provides ample liquidity and contributes to sustainable earnings, and sufficient capital when considered in light of the Company’s good asset quality and earnings-generating capacity.

These strengths are tempered by Whitney’s heavy reliance on net interest income and a loan portfolio that contains some bulky relationship exposures and a moderate level of concentration risk to the commercial real estate sector. As well, Whitney is vulnerable to the economic well-being of Louisiana since about 40% of its loans and 50% of its deposits are booked in the greater New Orleans area. The gradual expansion into attractive, higher-growth markets in Florida and the Houston area, however, provides for improving geographic diversification. The diverse nature of Louisiana’s economy and the expected high economic growth rate expected in the coming years as a result of the post-hurricane Katrina rebuilding efforts further mitigate this risk. Thus, DBRS considers geographic concentration a relatively minor issue.

Asset quality improved in 2006 following some weakening in the aftermath of the devastating 2005 hurricanes, and it is currently in line with that of similarly rated peers. The Company, to a great extent, was insulated from the most devastating effects of the hurricanes because of its limited exposure to residential real estate and consumer loans. Its predominantly commercial clients suffered mostly manageable damages and minimal business interruptions.

DBRS believes that Whitney remains well positioned to benefit from the rebuilding of the region and the attendant increase in economic activity because of its deep roots in the community and long-standing commercial relationships. The Stable trend reflects DBRS’s expectation of continued good earnings, strong liquidity and sound asset quality.

Whitney Holding Corporation, a bank holding company with headquarters in New Orleans, Louisiana, reported $10.2 billion in assets at December 31, 2006.

Note:
All figures are in U.S. dollars unless otherwise noted.