106926--3/1/2010--WHITNEY_HOLDING

related topics

{stock, price, share}

{loss, insurance, financial}

{tax, income, asset}

{capital, credit, financial}

{financial, litigation, operation}

{regulation, change, law}

{regulation, government, change}

{personnel, key, retain}

{operation, natural, condition}

{system, service, information}

{gas, price, oil}

Whitney has credit exposure in the oil and gas industry. The composition of Whitney s loan portfolio could increase the volatility of its credit quality metrics and provisions for credit losses. Whitney s allowance for loan losses may not be adequate to cover actual losses, and we may be required to materially increase our allowance, which may adversely affect our capital, financial condition and results of operations. Impairment of goodwill associated with acquisitions would result in a charge to earnings. Additional losses may result in a valuation allowance to deferred tax assets. Whitney s ability to pay dividends is subject to certain regulatory considerations. Whitney s continued participation in the Capital Purchase Program may adversely affect our ability to retain customers, attract investors, compete for new business opportunities and retain high performing employees. The failure of other financial institutions could adversely affect Whitney. Concern by customers over deposit insurance may cause a decrease in deposits and changes in the mix of funding sources available to Whitney. Whitney s profitability depends in substantial part on net interest income and on its ability to manage interest rate risk. Whitney s business is highly regulated. Our compliance with existing and proposed banking legislation and regulation, including our compliance with regulatory and supervisory actions, could adversely limit or restrict our activities and adversely affect our business, operating flexibility and financial condition. Reductions in the Company s or the Bank s credit ratings could reduce access to funding sources in the credit and capital markets and increase funding costs. The Company s financial condition and outlook may be adversely affected by damage to Whitney s reputation. The costs and effects of litigation, derivative suits, investigations or similar matters, or adverse facts and developments related thereto, could materially affect Whitney s business, operating results and financial condition. We rely on our systems and employees, and any errors or fraud could materially adversely affect our operations. The senior preferred stock issued to the Treasury impacts net income available to Whitney s common shareholders and its earnings per share. There can be no assurance when the Series A preferred stock can be redeemed and the Warrant can be repurchased. Holders of the Series A preferred stock have rights that are senior to those of Whitney s common shareholders. Holders of the Series A preferred stock may, under certain circumstances, have the right to elect two directors to Whitney s board of directors. Holders of the Series A preferred stock have limited voting rights. Whitney may issue additional common stock or other equity securities in the future which could dilute the ownership interest of existing shareholders. New banking laws and regulations could materially affect our operations and our cost of doing business. The short-term and long-term impact of a likely new capital framework, whether through the current proposal for non-Basel II U.S. banking institutions or through another set of capital standards, is uncertain. Whitney s market area is susceptible to hurricanes and tropical storms, which may increase the Company s exposure to credit risk, operational risk and liquidity risk.

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106926--3/1/2010--WHITNEY_HOLDING_CORP