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**UNITED                  STATES**

**SECURITIES                  AND EXCHANGE COMMISSION**

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**FORM                  10-K**

**ANNUAL                  REPORT PURSUANT TO SECTION 13 OR 15(d) OF **

**THE                  SECURITIES EXCHANGE ACT OF 1934**

| **For                            the fiscal year ended December 31, 2006** | **Commission                            file number 0-1026** |
|----------------------------------------------------------------------------|--------------------------------------------------------------|

**WHITNEY                  HOLDING CORPORATION**

**(Exact                  name of registrant as specified in its charter)**

| **Louisiana**                                                           | **72-6017893**                                                      |
|-------------------------------------------------------------------------|---------------------------------------------------------------------|
| **(State                            of incorporation)**                 | **(I.R.S.                            Employer Identification No.)** |
|                                                                    |                                                                |
| **228                            St. Charles Avenue**                   | **(504)                            586-7272**                       |
| **New                            Orleans, Louisiana 70130**             | **(Registrant’s                            telephone number** |
| **(Address                            of principal executive offices)** |                                                                |

**SECURITIES                  REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:**

| ** ****Title                            of Each Class** | ** ****Name of Exchange on Which Registered**         |
|--------------------------------------------------------------|------------------------------------------------------------|
| **Common                            Stock, no par value**    | **Nasdaq                            Global Select Market** |

**SECURITIES                  REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: None**

**X**

**X**

**X**
** _**

**__**

| Large                            accelerated filer **X** | Accelerated                            filer _ | Non-accelerated                            filer _ ** ** |
|----------------------------------------------------------|------------------------------------------------|---------------------------------------------------------------|

**X**

**DOCUMENTS                  INCORPORATED BY REFERENCE**

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|                                             | **WHITNEY                            HOLDING CORPORATION** |                                                                                   |
|--------------------------------------------------|------------------------------------------------------------|----------------------------------------------------------------------------------------|
|                                             |                                                       |                                                                                   |
| **TABLE                            OF CONTENTS** |                                                       |                                                                                   |
|                                             |                                                       | **Page             ** |

|                                  |                                |                                                                                                      |
|---------------------------------------|-------------------------------------|-----------------------------------------------------------------------------------------------------------|
|                                  |                                |                                                                                                      |
| **PART                            I** |                                |                                                                                                      |
|                                  | Item                            1:  | Business                                                                                                  | 1 |
|                                  | Item                            1A: | Risk                            Factors                                                                   | 8 |
|                                  | Item                            1B: | Unresolved                            Staff Comments                                                      | 9 |
|                                  | Item                            2:  | Properties                                                                                                | 9 |
|                                  | Item                            3:  | Legal                            Proceedings                                                              | 9 |
|                                  | Item                            4:  | Submission                            of Matters to a Vote of Security                            Holders | 9 |

|                                   |                                |                                                                                                                                                                                                                                          |
|----------------------------------------|-------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                   |                                |                                                                                                                                                                                                                                          |
| **PART                            II** |                                |                                                                                                                                                                                                                                          |
|                                   | Item                            5:  | Market                            for the Registrant’s Common Equity, Related                            Stockholder Matters and  Issuer                            Purchases of Equity                            Securities | 10 |
|                                   | Item                            6:  | Selected                            Financial Data                                                                                                                                                                                            | 12 |
|                                   | Item                            7:  | Management’s                            Discussion and Analysis of Financial Condition                            and Results of Operation                                                                                              | 13 |
|                                   | Item                            7A: | Quantitative                            and Qualitative Disclosures about Market                            Risk                                                                                                                              | 41 |
|                                   | Item                            8:  | Financial                            Statements and Supplementary                            Data                                                                                                                                             | 42 |
|                                   | Item                            9:  | Changes                            in and Disagreements with Accountants on Accounting                            and Financial Disclosure                                                                                                    | 83 |
|                                   | Item                            9A: | Controls                            and Procedures                                                                                                                                                                                            | 83 |
|                                   | Item                            9B: | Other                            Information                                                                                                                                                                                                  | 83 |

|                                    |                                |                                                                                                                                                                                                                  |
|-----------------------------------------|-------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                    |                                |                                                                                                                                                                                                                  |
| **PART                            III** |                                |                                                                                                                                                                                                                  |
|                                    | Item                            10: | Directors                            and Executive Officers and Corporate                            Governance                                                                                                       | 84 |
|                                    | Item                            11: | Executive                            Compensation                                                                                                                                                                     | 84 |
|                                    | Item                            12: | Security                            Ownership of Certain Beneficial Owners and                            Management  And                            Related Stockholder                            Matters | 85 |
|                                    | Item                            13: | Certain                            Relationships and Related Transactions, and                            Director Independence                                                                                       | 86 |
|                                    | Item                            14: | Principal                            Accounting Fees and Services                                                                                                                                                     | 86 |

|                                   |                                |                                                                                             |
|----------------------------------------|-------------------------------------|--------------------------------------------------------------------------------------------------|
|                                   |                                |                                                                                             |
| **PART                            IV** |                                |                                                                                             |
|                                   | Item                            15: | Exhibits                            and Financial Statement                            Schedules | 87 |
|                                   |                                |                                                                                             |   |
|                                   | Signatures                          |                                                                                             | 91 |

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**PART                  I**

**Item                  1: BUSINESS**

**ORGANIZATION                  AND RECENT DEVELOPMENTS**

**,**

**NATURE                  OF BUSINESS AND MARKETS**

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**THE                  BANK**

**COMPETITION**

**SUPERVISION                  AND REGULATION**

***Supervisory                  Authorities***

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***Capital***

**”**

***FDICIA                    and Prompt Corrective Action***

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***Expansion                    and Activity Limitations***

***Support                  of Subsidiary Banks by Holding Companies***

***Limitations                  on Acquisitions of Bank Holding Companies***

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***Deposit                    Insurance***

***Other                  Statutes and Regulations***

**Anti-Money                  Laundering.**

**Sections                  23A and 23B of the Federal Reserve Act.**

**Dividends.**

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**Community                  Reinvestment Act.**

**Consumer                  Regulation. **

| ·   | limit                            the interest and other charges collected or contracted                            for by the                            Bank; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | govern                            the Bank’s disclosures of credit terms to consumer                            borrowers; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------|

| ·   | require                            the Bank to provide information to enable the public                            and public officials                            to determine whether it is fulfilling its obligation                            to help meet the                            housing needs of the community it                            serves; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | prohibit                            the Bank from discriminating on the basis of race, creed                            or other                            prohibited factors when it makes decisions to extend                            credit; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | require                            that the Bank safeguard the personal nonpublic information                            of its                            customers, provide annual notices to consumers regarding                            the usage and                            sharing of such information, and limit disclosure of                            such information to                            third parties except under specific circumstances;                            and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | govern                            the manner in which the Bank may collect consumer                            debts. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

| ·   | require                            the Bank to adequately disclose the interest rates and                            other terms of                            consumer deposit accounts; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | impose                            a duty on the Bank to maintain the confidentiality of                            consumer financial                            records and prescribe procedures for complying with administrative                            subpoenas of financial records; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | govern                            automatic deposits to and withdrawals from deposit accounts                            with the Bank                            and the rights and liabilities of customers who use automated                            teller                            machines and other electronic banking                            services. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**EMPLOYEES**

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**EXECUTIVE        OFFICERS OF THE COMPANY**

| Name                  and                  Age                                                               | Position                  Held and Recent Business                  Experience                                                                              |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| William                  L. Marks, 63                                                                                                                                                                                                                                                                                                    | Chief                  Executive Officer and Chairman of the Board of the                  Company                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                     | and                  Whitney National Bank since 1990                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| R.                  King Milling, 66                                                                                                                                                                                                                                                                                                     | President                  of the Company and Whitney National Bank since 1984;                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                     | Director                  of the Company and Whitney National Bank since 1978                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| Robert                  C. Baird, Jr., 56                                                                                                                                                                                                                                                                                                | Executive                  Vice President of the Company and Whitney National Bank                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                     | since                  1995, Division Executive of Louisiana Banking                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| Thomas                  L. Callicutt, Jr., 59                                                                                                                                                                                                                                                                                            | Executive                  Vice President and Chief Financial Officer of the Company                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                     | and                  Whitney National Bank since 1999 and Treasurer of the                  Company                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                     | since                  2001                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| Rodney                  D. Chard, 64                                                                                                                                                                                                                                                                                                     | Executive                  Vice President of the Company and Whitney National                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                     | Bank                  since 1996, Division Executive of Operations and                  Technology                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| Joseph                  S. Exnicios, 51                                                                                                                                                                                                                                                                                                  | Executive                  Vice President of the Company and Whitney National Bank                  since                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                     | 2004,                  Senior Vice President of Whitney National Bank from 1994 to                  2004,                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                     | Division                  Executive of New Orleans Commercial Banking                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| John                  C. Hope III, 57                                                                                                                                                                                                                                                                                                    | Executive                  Vice President of the Company since 1994 and of Whitney                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                     | National                  Bank since 1998, Division Executive of Gulf Coast                  Banking                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| Kevin                  P. Reed, 46                                                                                                                                                                                                                                                                                                       | Executive                  Vice President of the Company and Whitney National Bank                  since                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                     | 2004,                  Senior Vice President of Whitney National Bank from 1998 to                  2004,                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                     | Division                  Executive of Trust & Wealth Management                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| Lewis                  P. Rogers, 54                                                                                                                                                                                                                                                                                                     | Executive                  Vice President of the Company and Whitney National Bank                  since                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                     | 2004,                  Senior Vice President of Whitney National Bank from 1998 to                  2004,                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                     | Division                  Executive of Credit Administration                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| John                  M. Turner, Jr., 45                                                                                                                                                                                                                                                                                            | Executive                  Vice President of the Company and Whitney National Bank                  since                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                     | February                  2005, Senior Vice President of Whitney National Bank from 1994                  to                  2005,                  Regional Executive - Eastern Region                                                                                                                                                                                                                                                                           |

**AVAILABLE        INFORMATION**

**www.whitneybank.com**

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**Item        1A. RISK FACTORS**

| ·   | credit                risk, which is the risk that borrowers will be unable to meet their                contractual obligations, leading to loan losses and reduced interest                income; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | market                risk, which is the risk that changes in market rates and prices will                adversely affect the results of operations or financial                condition; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | liquidity                risk, which is the risk that funds will not be available at a reasonable                cost to meet operating and strategic needs;                and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | operational                risk, which is the risk of loss resulting from inadequate or failed                internal processes, people and systems, or external events, such                as                natural disasters. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Whitney’s        profitability depends in substantial part on net interest income and on our        ability to manage interest rate risk.***

***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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**Item        1B. UNRESOLVED STAFF COMMENTS**

**Item        2. PROPERTIES**

~~ ~~

**Item        3:** **LEGAL        PROCEEDINGS**

**Item        4:** **SUBMISSION        OF MATTERS TO A VOTE OF SECURITY HOLDERS**

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**PART          II**

**Item          5: MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED          STOCKHOLDER MATTERS AND ISSUER PURCHASES**
**OF          EQUITY SECURITIES**

|     Period   |  Total Number                    of Shares Purchased |   Average                    Price                    Paid per                    Share | Total                    Number of Shares                    Purchased as Part                    of Publicly Announced                    Plans or Programs                    (1) | Maximum                    Number of Shares                    that May Yet Be                    Purchased under the                    Plans or Programs (1) |
|----------------------------------|---------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| October                    2006  | -                                                                   | -                                                                                                 | -                                                                                                                                                                                   | -                                                                                                                                                                        |
| November                    2006 | 8,589                    (2)                                        | $32.53                                                                                            | -                                                                                                                                                                                   | -                                                                                                                                                                        |
| December                    2006 | -                                                                   | -                                                                                                 | -                                                                                                                                                                                   | -                                                                                                                                                                        |

| (1)   | No                  repurchase plans were in effect during the fourth quarter of                  2006. |
|-----------------|---------------------------------------------------------------------------------------------------------|
| (2)   | Represents                  shares that were tendered to the Company as consideration for the                  exercise                  price of employee stock options. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**STOCK          PERFORMANCE GRAPH**

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| **Item                        6: SELECTED FINANCIAL DATA**                                                                                                                                                                       |                                             |           |                               |   |                         |   |                         |       |                   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------|----------------|------------------------------------|--------|------------------------------|--------|------------------------------|------------|------------------------|--------|
| **WHITNEY                        HOLDING CORPORATION AND                        SUBSIDIARIES**                                                                                                                                   |
|                                                                                                                                                                                                                             | *Years                        Ended December 31* |
| *(dollars                        in thousands, except per share data)*                                                                                                                                                           | **2006    **                 |           | 2005      |   | 2004     |   | 2003     |       | 2002    |   |
| **YEAR-END                        BALANCE SHEET DATA**                                                                                                                                                                           |                                             |           |                               |   |                         |   |                         |       |                   |   |   |   |   |   |   |
|                          Total assets                                                                                                                                                                                       | **$**                                            | **10,185,880** |                               | $      | 10,109,006                   |   | $                            | 8,222,624  |                   | $      | 7,754,982 |   | $ | 7,097,881 |   |
|                          Earning assets                                                                                                                                                                                     |                                             | **9,277,554**  |                               |   | 9,054,484                    |   |                         | 7,648,740  |                   |   | 7,193,709 |   |   | 6,501,009 |   |
|                          Loans                                                                                                                                                                                              |                                             | **7,050,416**  |                               |   | 6,560,597                    |   |                         | 5,626,276  |                   |   | 4,882,610 |   |   | 4,455,412 |   |
|                          Investment securities                                                                                                                                                                              |                                             | **1,886,093**  |                               |   | 1,641,451                    |   |                         | 1,991,244  |                   |   | 2,281,405 |   |   | 1,975,698 |   |
|                          Deposits                                                                                                                                                                                           |                                             | **8,433,308**  |                               |   | 8,604,836                    |   |                         | 6,612,607  |                   |   | 6,158,582 |   |   | 5,782,879 |   |
|                          Shareholders' equity                                                                                                                                                                               |                                             | **1,112,962**  |                               |   | 961,043                      |   |                         | 904,765    |                   |   | 840,313 |   |   | 800,483 |   |
| **AVERAGE                        BALANCE SHEET DATA**                                                                                                                                                                            |                                             |           |                               |   |                         |   |                         |       |                   |   |   |   |   |   |   |
|                          Total assets                                                                                                                                                                                       | **$**                                            | **10,242,838** |                               | $      | 8,903,321                    |   | $                            | 7,890,183  |                   | $      | 7,238,022 |   | $ | 7,016,675 |   |
|                          Earning assets                                                                                                                                                                                     |                                             | **9,349,262**  |                               |   | 8,098,998                    |   |                         | 7,327,233  |                   |   | 6,717,863 |   |   | 6,492,791 |   |
|                          Loans                                                                                                                                                                                              |                                             | **6,776,794**  |                               |   | 6,137,676                    |   |                         | 5,179,734  |                   |   | 4,595,868 |   |   | 4,372,194 |   |
|                          Investment securities                                                                                                                                                                              |                                             | **1,824,646**  |                               |   | 1,836,228                    |   |                         | 2,120,594  |                   |   | 2,004,245 |   |   | 1,816,216 |   |
|                          Deposits                                                                                                                                                                                           |                                             | **8,476,954**  |                               |   | 7,224,426                    |   |                         | 6,347,503  |                   |   | 5,913,186 |   |   | 5,750,141 |   |
|                          Shareholders' equity                                                                                                                                                                               |                                             | **1,065,303**  |                               |   | 935,362                      |   |                         | 881,477    |                   |   | 823,698 |   |   | 760,725 |   |
| **INCOME                        STATEMENT DATA**                                                                                                                                                                                 |                                             |           |                               |   |                         |   |                         |       |                   |   |   |   |   |   |   |
|                          Interest income                                                                                                                                                                                    | **$**                                            | **616,371**    |                               | $      | 468,085                      |   | $                            | 360,772    |                   | $      | 338,069 |   | $ | 370,909 |   |
|                          Interest expense                                                                                                                                                                                   |                                             | **145,160**    |                               |   | 80,986                       |   |                         | 40,682     |                   |   | 43,509 |   |   | 75,701 |   |
|                          Net interest income                                                                                                                                                                                |                                             | **471,211**    |                               |   | 387,099                      |   |                         | 320,090    |                   |   | 294,560 |   |   | 295,208 |   |
|                          Net interest income (TE)                                                                                                                                                                           |                                             | **477,423**    |                               |   | 392,979                      |   |                         | 326,237    |                   |   | 300,115 |   |   | 300,134 |   |
|                          Provision for credit losses                                                                                                                                                                        |                                             | **3,720**      |                               |   | 37,580                       |   |                         | 2,000      |                   |   | (3,500 | ) |   | 7,500 |   |
|                          Noninterest income                                                                                                                                                                                 |                                             | **84,791**     |                               |   | 82,235                       |   |                         | 82,523     |                   |   | 89,504 |   |   | 85,185 |   |
|                             Net securities gains in noninterest income                                                                                                                                       |                                             | **-**          |                               |   | 68                           |   |                         | 68         |                   |   | 863 |   |   | 411 |   |
|                          Noninterest expense                                                                                                                                                                                |                                             | **338,473**    |                               |   | 286,398                      |   |                         | 260,278    |                   |   | 242,923 |   |   | 230,926 |   |
|                          Net income                                                                                                                                                                                         |                                             | **144,645**    |                               |   | 102,349                      |   |                         | 97,137     |                   |   | 98,542 |   |   | 95,323 |   |
| **KEY                        RATIOS**                                                                                                                                                                                            |                                             |           |                               |   |                         |   |                         |       |                   |   |   |   |   |   |   |
|                          Return on average assets                                                                                                                                                                           |                                             | **1.41**       | **%**                              |   | 1.15                         | %      |                         | 1.23       | %                      |   | 1.36 | % |   | 1.36 | % |
|                          Return on average shareholders' equity                                                                                                                                                             |                                             | **13.58**      |                               |   | 10.94                        |   |                         | 11.02      |                   |   | 11.96 |   |   | 12.53 |   |
|                          Net interest margin                                                                                                                                                                                |                                             | **5.11**       |                               |   | 4.85                         |   |                         | 4.45       |                   |   | 4.47 |   |   | 4.62 |   |
|                          Average loans to average deposits                                                                                                                                                                  |                                             | **79.94**      |                               |   | 84.96                        |   |                         | 81.60      |                   |   | 77.72 |   |   | 76.04 |   |
|                          Efficiency ratio                                                                                                                                                                                   |                                             | **60.20**      |                               |   | 60.28                        |   |                         | 63.69      |                   |   | 62.49 |   |   | 60.00 |   |
|                          Allowance for loan losses to loans                                                                                                                                                                 |                                             | **1.08**       |                               |   | 1.37                         |   |                         | 0.97       |                   |   | 1.22 |   |   | 1.48 |   |
|                          Nonperforming assets to loans plus foreclosed                                                                                                                                                      |                                             |           |                               |   |                         |   |                         |       |                   |   |   |   |   |   |   |
|                             and surplus property                                                                                                                                                             |                                             | **0.81**       |                               |   | 1.03                         |   |                         | .46        |                   |   | .62 |   |   | .95 |   |
|                          Net charge-offs to average loans                                                                                                                                                                   |                                             | **0.29**       |                               |   | .08                          |   |                         | .19        |                   |   | .07 |   |   | .28 |   |
|                          Average shareholders' equity to average assets                                                                                                                                                     |                                             | **10.40**      |                               |   | 10.51                        |   |                         | 11.17      |                   |   | 11.38 |   |   | 10.84 |   |
|                          Shareholders' equity to total assets                                                                                                                                                               |                                             | **10.93**      |                               |   | 9.51                         |   |                         | 11.00      |                   |   | 10.84 |   |   | 11.28 |   |
|                          Leverage ratio                                                                                                                                                                                     |                                             | **8.76**       |                               |   | 8.21                         |   |                         | 9.56       |                   |   | 10.13 |   |   | 9.76 |   |
| **COMMON                        SHARE DATA**                                                                                                                                                                                     |                                             |           |                               |   |                         |   |                         |       |                   |   |   |   |   |   |   |
|                          Earnings Per Share                                                                                                                                                                                 |                                             |           |                               |   |                         |   |                         |       |                   |   |   |   |   |   |   |
|                             Basic                                                                                                                                                                            | **$**                                            | **2.24**       |                               | $      | 1.65                         |   | $                            | 1.59       |                   | $      | 1.65 |   | $ | 1.59 |   |
|                             Diluted                                                                                                                                                                          |                                             | **2.20**       |                               |   | 1.63                         |   |                         | 1.56       |                   |   | 1.63 |   |   | 1.58 |   |
|                          Dividends                                                                                                                                                                                          |                                             |           |                               |   |                         |   |                         |       |                   |   |   |   |   |   |   |
|                             Cash dividends per share                                                                                                                                                         | **$**                                            | **1.08**       |                               | $      | .98                          |   | $                            | .89        |                   | $      | .82 |   | $ | .74 |   |
|                             Dividend payout ratio                                                                                                                                                            |                                             | **48.85**      | **%**                              |   | 60.26                        | %      |                         | 56.99      | %                      |   | 50.32 | % |   | 46.50 | % |
|                          Book Value Per Share                                                                                                                                                                               | **$**                                            | **16.88**      |                               | $      | 15.17                        |   | $                            | 14.57      |                   | $      | 13.85 |   | $ | 13.32 |   |
|                          Trading Data                                                                                                                                                                                       |                                             |           |                               |   |                         |   |                         |       |                   |   |   |   |   |   |   |
|                             High price                                                                                                                                                                       | **$**                                            | **37.26**      |                               | $      | 33.69                        |   | $                            | 30.83      |                   | $      | 27.55 |   | $ | 25.68 |   |
|                             Low price                                                                                                                                                                        |                                             | **27.27**      |                               |   | 24.14                        |   |                         | 26.35      |                   |   | 20.50 |   |   | 18.73 |   |
|                             End-of-period closing price                                                                                                                                                      |                                             | **32.62**      |                               |   | 27.56                        |   |                         | 29.99      |                   |   | 27.33 |   |   | 22.22 |   |
|                             Trading volume                                                                                                                                                                   |                                             | **49,401,341** |                               |   | 50,434,066                   |   |                         | 27,662,252 |                   |   | 34,386,386 |   |   | 32,889,785 |   |
|                          Average Shares Outstanding                                                                                                                                                                         |                                             |           |                               |   |                         |   |                         |       |                   |   |   |   |   |   |   |
|                             Basic                                                                                                                                                                            |                                             | **64,687,363** |                               |   | 62,008,004                   |   |                         | 61,122,581 |                   |   | 59,894,147 |   |   | 59,773,322 |   |
|                             Diluted                                                                                                                                                                          |                                             | **65,853,149** |                               |   | 62,953,293                   |   |                         | 62,083,043 |                   |   | 60,594,201 |   |   | 60,182,316 |   |
|                                                                                                                                                                                                                             |                                             |           |                               |   |                         |   |                         |       |                   |   |   |   |   |   |   |
| *Tax-equivalent                        (TE) amounts are calculated using a marginal federal income                        tax rate of                        35%.*                                                               |                                             |
| *The                        efficiency ratio is noninterest expense to total net interest                        (TE) and                        noninterest income (excluding securities                        transactions).* |

----

**Item              7: MANAGEMENT’S DISCUSSION AND ANALYSIS              OF**

**FINANCIAL              CONDITION AND RESULTS OF OPERATIONS**

**FORWARD-LOOKING              STATEMENTS **

| ·    | changes                      in economic and business conditions, including those caused                      by past or                      future natural disasters or by acts of war or terrorism, that                      directly or                      indirectly affect the financial health of Whitney’s customer                      base; |
|--------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·                       | changes                      in interest rates that affect the pricing of Whitney’s financial products,                      the demand for its financial services and the valuation of                      its financial                      assets and liabilities; |
|----------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·    | changes                      in laws and regulations that significantly affect the activities                      of the                      banking industry and its competitive position relative to other                      financial                      service providers; |
|--------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·    | technological                      changes affecting the nature or delivery of financial products                      or services                      and the cost of providing them; |
|--------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·    | Whitney’s                      ability to effectively expand into new                      markets; |
|--------------------------|-----------------------------------------------------------------------------------------------------------|
| ·    | the                      cost and other effects of material contingencies, including                      litigation                      contingencies and insurance recoveries; |
|--------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·    | Whitney’s                      ability to effectively manage interest rate risk and other                      market risk,                      credit risk and operational risk; |
|--------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·    | Whitney’s                      ability to manage fluctuations in the value of its assets and                      liabilities                      and off-balance sheet exposure so as to maintain sufficient                      capital and                      liquidity to support its business; |
|--------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·  | the failure to attract and retain key                      personnel; |
|--------------|-----------------------------------------------------------------------|
| ·   | the                        failure to capitalize on growth opportunities and to realize                        cost savings                        in connection with business acquisitions; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | management’s                        inability to develop and execute plans for Whitney to effectively                        respond                        to unexpected changes. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**OVERVIEW**

**UPDATE                ON IMPACT OF NATURAL DISASTERS**

***Credit                Quality and Allowance for Loan Losses***

***Disaster                Response Costs, Casualty Losses, Business Interruption and Related                Insurance***

----

**HIGHLIGHTS                OF FINANCIAL RESULTS**

| ·   | Net                        interest income, on a taxable-equivalent (TE) basis, increased                        21%, or                        $84.4 million, in 2006. Average earning assets were 15% higher                        in 2006,                        and the net interest margin (TE) widened by 26 basis points.                        The most                        important factors behind the increase in net interest income                        in 2006 were                        earning asset growth, supported in part by funds retained                        from the                        post-storm deposit build-up, higher short-term market interest                        rates, the                        favorable impact on the funding mix of post-storm liquidity                        in the deposit                        base, and active management of the pricing structure for                        both loans and                        deposits. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Whitney                        provided $3.7 million for credit losses in 2006, compared                        to a $37.6                        million provision in 2005 that incorporated management’s early estimate of                        the impact of the 2005 storms. Net charge-offs totaled $19.4                        million in                        2006, including one $12.3 million storm-impacted credit,                        compared to $5.0                        million in 2005. During 2006, there was a $53 million decrease                        in the                        total of loans criticized through the internal credit risk                        classification                        process. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Noninterest                        income increased 3%, or $2.6 million, between 2005 and 2006.                        Improvements                        were noted in a number of income categories, reflecting both                        internal                        growth and contributions from acquired operations. Deposit                        service charge                        income was down 8% compared to 2005. The residual additional                        liquidity in                        the deposit base from the post-storm build-up continued to                        reduce                        comparative charging opportunities in 2006, and fee potential                        from                        business customers declined as the earnings credit allowed                        against account                        charges rose between the years with short-term market                        rates. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Noninterest                        expense increased 18%, or $52.1 million, from 2006. As noted                        above, 2006                        included approximately $16 million in expenses associated                        directly and                        indirectly with the late-summer hurricanes of 2005, compared                        to $5 million                        in 2005. Incremental operating costs associated with acquired                        operations,                        including amortization of intangibles, totaled approximately                        $10.4 million                        in 2006. Whitney’s personnel expense increased 9%, or $14.7 million, in                        total, including approximately $4.7 million related to acquired                        staff.                        Compensation expense under management incentive programs                        increased by $2.9                        million in of 2006, almost all related to share-based compensation                        earned                        under Whitney’s long-term incentive                        plan. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**CRITICAL                ACCOUNTING POLICIES**

----

**FINANCIAL                CONDITION**

**LOANS,                CREDIT RISK MANAGEMENT AND ALLOWANCE AND RESERVE FOR CREDIT                LOSSES**

***Loan                Portfolio Developments***

| **TABLE                          1. LOANS OUTSTANDING BY TYPE**           |
|---------------------------------------------------------------------------|
|                                                                      | December                          31, |
| *(in                          thousands)*                                 | **2006** | 2005 | 2004 | 2003 | 2002 |
| Commercial,                          financial and agricultural           | **$2,725,531** | $2,685,894 | $2,399,794 | $2,213,207 | $1,917,859 |
| Real                          estate - commercial, construction and other | **3,094,004** | 2,743,486 | 2,209,975 | 1,726,212 | 1,584,099 |
| Real                          estate - residential mortgage               | **893,091** | 774,124 | 685,732 | 619,869 | 638,703 |
| Individuals                                                               | **337,790** | 357,093 | 330,775 | 323,322 | 314,751 |
|                               Total loans             | **$7,050,416** | $6,560,597 | $5,626,276 | $4,882,610 | $4,455,412 |

----

| **TABLE                          2. LOAN MATURITIES BY TYPE**             |                                       |                                 |                                |       |
|---------------------------------------------------------------------------|--------------------------------------------|--------------------------------------|-------------------------------------|------------|
|                                                                      | December                          31, 2006 |
|                                                                      | One                          year          | One                          through | More                          than  |       |
| *(in                          thousands)*                                 | or                          less           | five                          years  | five                          years | Total      |
| Commercial,                          financial and agricultural           | $1,767,402                                 | $                          927,951   | $                          30,178   | $2,725,531 |
| Real                          estate - commercial, construction and other | 1,174,200                                  | 1,605,988                            | 313,816                             | 3,094,004  |
| Real                          estate - residential mortgage               | 135,980                                    | 495,883                              | 261,228                             | 893,091    |
| Individuals                                                               | 166,360                                    | 156,299                              | 15,131                              | 337,790    |
|                               Total                   | $3,243,942                                 | $3,186,121                           | $620,353                            | $7,050,416 |

***Credit                Risk Management and Allowance and Reserve for Credit                Losses***

***General                Discussion of Credit Risk Management and Determination of Credit                Loss Allowance                and Reserve***

----

----

***                       Management’s Assessment of Storms’ Impact on Credit Quality and Related                Uncertainties***

***Credit                Quality Statistics and Components of Credit Loss Allowance and                Reserve***

----

| **TABLE                          3. NONPERFORMING ASSETS**                     |
|--------------------------------------------------------------------------------|
|                                                                           | December                          31 |   |
| *(dollars                          in thousands)*                              | **2006** |   | 2005 |   | 2004 |   | 2003 |   | 2002 |   |
| Loans                          accounted for on a nonaccrual basis             | **$** | **55,992** |   | $ | 65,565 |   | $ | 23,597 |   | $ | 26,776 |   | $ | 37,959 |   |
| Restructured                          loans                                    |   | **-** |   |   | 30 |   |   | 49 |   |   | 114 |   |   | 336 |   |
|   Total                          nonperforming loans                 |   | **55,992** |   |   | 65,595 |   |   | 23,646 |   |   | 26,890 |   |   | 38,295 |   |
| Foreclosed                          assets and surplus banking property        |   | **800** |   |   | 1,708 |   |   | 2,454 |   |   | 3,490 |   |   | 3,854 |   |
|   Total                          nonperforming assets                | **$** | **56,792** |   | $ | 67,303 |   | $ | 26,100 |   | $ | 30,380 |   | $ | 42,149 |   |
| Loans                          90 days past due still accruing                 | **$** | **7,574** |   | $ | 13,728 |   | $ | 3,533 |   | $ | 3,385 |   | $ | 5,817 |   |
| Ratios:                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            Nonperforming assets to loans plus foreclosed  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               assets and surplus property  |   | **.81** | **%** |   | 1.03 | % |   | .46 | % |   | .62 | % |   | .95 | % |
|                            Allowance for loan losses to                   |   |  |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               nonperforming loans          |   | **136** |   |   | 137 |   |   | 230 |   |   | 221 |   |   | 173 |   |
|                            Loans 90 days past due still accruing to loans |   | **.11** |   |   | .21 |   |   | .06 |   |   | .07 |   |   | .13 |   |

----

| **TABLE                          4. SUMMARY OF ACTIVITY IN THE ALLOWANCE FOR LOAN LOSSES                          AND**                                                                     |     |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
| **                                            RESERVE FOR LOSSES ON UNFUNDED CREDIT COMMITMENTS** |     |
| *(dollars                          in thousands)*                                                                                                                                           | **2006** |   | 2005 |   | 2004 |   | 2003 |   | 2002 |   |
| **ALLOWANCE                          FOR LOAN LOSSES**                                                                                                                                      |     |   |   |   |   |   |   |   |   |   |
| Balance                          at beginning of year                                                                                                                                       | **$**    | **90,028** |   | $ | 54,345 |   | $ | 59,475 |   | $ | 66,115 |   | $ | 71,633 |   |
| Allowance                          of acquired banks                                                                                                                                        |     | **2,908** |   |   | 3,648 |   |   | 2,461 |   |   | - |   |   | - |   |
| Allowance                          on loans transferred to held for sale                                                                                                                    |     | **-** |   |   | - |   |   | - |   |   | - |   |   | (895 | ) |
| Provision                          for credit losses                                                                                                                                        |     | **2,400** |   |   | 37,000 |   |   | 2,000 |   |   | (3,500 | ) |   | 7,500 |   |
| Loans                          charged off:                                                                                                                                                 |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            Commercial, financial and agricultural                                                                                                                      |     | **(15,841** | **)** |   | (7,047 | ) |   | (9,680 | ) |   | (7,286 | ) |   | (6,894 | ) |
|                            Real estate - commercial, construction and other                                                                                                            |     | **(6,535** | **)** |   | (438 | ) |   | (932 | ) |   | (963 | ) |   | (5,148 | ) |
|                            Real estate - residential mortgage                                                                                                                          |     | **(555** | **)** |   | (295 | ) |   | (619 | ) |   | (1,176 | ) |   | (1,816 | ) |
|                            Individuals                                                                                                                                                 |     | **(2,297** | **)** |   | (2,876 | ) |   | (2,799 | ) |   | (3,509 | ) |   | (3,353 | ) |
|                               Total charge-offs                                                                                                                         |     | **(25,228** | **)** |   | (10,656 | ) |   | (14,030 | ) |   | (12,934 | ) |   | (17,211 | ) |
| Recoveries                          on loans previously charged off:                                                                                                                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            Commercial, financial and agricultural                                                                                                                      |     | **3,409** |   |   | 2,707 |   |   | 2,488 |   |   | 2,273 |   |   | 2,472 |   |
|                            Real estate - commercial, construction and other                                                                                                            |     | **234** |   |   | 932 |   |   | 223 |   |   | 3,666 |   |   | 463 |   |
|                            Real estate - residential mortgage                                                                                                                          |     | **270** |   |   | 571 |   |   | 246 |   |   | 1,873 |   |   | 509 |   |
|                            Individuals                                                                                                                                                 |     | **1,906** |   |   | 1,481 |   |   | 1,482 |   |   | 1,982 |   |   | 1,644 |   |
|                               Total recoveries                                                                                                                          |     | **5,819** |   |   | 5,691 |   |   | 4,439 |   |   | 9,794 |   |   | 5,088 |   |
| Net                          loans charged off                                                                                                                                              |     | **(19,409** | **)** |   | (4,965 | ) |   | (9,591 | ) |   | (3,140 | ) |   | (12,123 | ) |
| Balance                          at end of year                                                                                                                                             | **$**    | **75,927** |   | $ | 90,028 |   | $ | 54,345 |   | $ | 59,475 |   | $ | 66,115 |   |
| Ratios                                                                                                                                                                                      |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            Net charge-offs to average loans                                                                                                                            |     | **.29** | **%** |   | .08 | % |   | .19 | % |   | .07 | % |   | .28 | % |
|                            Gross charge-offs to average loans                                                                                                                          |     | **.37** |   |   | .17 |   |   | .27 |   |   | .28 |   |   | .39 |   |
|                            Recoveries to gross charge-offs                                                                                                                             |     | **23.07** |   |   | 53.41 |   |   | 31.64 |   |   | 75.72 |   |   | 29.56 |   |
|                            Allowance for loan losses to loans at end of year                                                                                                           |     | **1.08** |   |   | 1.37 |   |   | .97 |   |   | 1.22 |   |   | 1.48 |   |
| **RESERVE                          FOR LOSSES ON UNFUNDED CREDIT COMMITMENTS**                                                                                                              |     |   |   |   |   |   |   |   |   |
| Reserve                          at beginning of year                                                                                                                                       | **$**    | **580** |   | $ | - |   | $ | - |   | $ | - |   | $ | - |   |
| Provision                          for credit losses                                                                                                                                        |     | **1,320** |   |   | 580 |   |   | - |   |   | - |   |   | - |   |
| Reserve                          at end of year                                                                                                                                             | **$**    | **1,900** |   | $ | 580 |   | $ | - |   | $ | - |   | $ | - |   |

| **TABLE                          5. ALLOCATION OF THE ALLOWANCE FOR LOAN LOSSES**                        |                                                                                                 |
|----------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|
|                                                                                                     | **                                 2006    ** |   |                                  2005     |   |                                  2004     |   |                                  2003     |   |                                  2002     |   |
|                                                                                                     |                                                                                                      |   | %  |   |  |   | %  |   |  |   | %  |   |  |   | %  |   |  |   | %  |   |
| *(dollars                          in millions)*                                                         | Balance                                                                                              | ** ** | Loans |   | Balance |   | Loans |   | Balance |   | Loans |   | Balance |   | Loans |   | Balance |   | Loans |   |
| Commerical,                          financial                           and agricultural           | **$**                                                                                                | **31.4** | ** ** | ** ** | **38** | **%** | $ | 40.6 |   |   | 41 | % | $ | 24.3 |   |   | 43 | % | $ | 29.2 |   |   | 45 | % | $ | 32.0 |   |   | 43 | % |
| Real                          estate - commercial,                           construction and other |                                                                                                 | **31.8** | ** ** | ** ** | **44** |   |   | 29.8 |   |   | 42 |   |   | 21.2 |   |   | 39 |   |   | 19.2 |   |   | 35 |   |   | 18.8 |   |   | 36 |   |
| Real                          estate-                           residential mortgage                |                                                                                                 | **4.0** | ** ** | ** ** | **13** |   |   | 7.3 |   |   | 12 |   |   | 4.2 |   |   | 12 |   |   | 5.0 |   |   | 13 |   |   | 5.5 |   |   | 14 |   |
| Individuals                                                                                              |                                                                                                 | **3.8** | ** ** | ** ** | **5** |   |   | 7.3 |   |   | 5 |   |   | 2.7 |   |   | 6 |   |   | 2.6 |   |   | 7 |   |   | 4.7 |   |   | 7 |   |
| Unallocated                                                                                              |                                                                                                 | **4.9** | ** ** | ** ** | **-** |   |   | 5.0 |   |   | - |   |   | 1.9 |   |   | - |   |   | 3.5 |   |   | - |   |   | 5.1 |   |   | - |   |
|   Total                                                                                        | **$**                                                                                                | **75.9** | ** ** | ** ** | **100** | **%** | $ | 90.0 |   |   | 100 | % | $ | 54.3 |   |   | 100 | % | $ | 59.5 |   |   | 100 | % | $ | 66.1 |   |   | 100 | % |

----

**INVESTMENT                  SECURITIES**

| **TABLE                            6. DISTRIBUTION OF INVESTMENT MATURITIES**                                                                                                                                                              |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| December                            31, 2006                                                                                                                                                                                               |   |
|                                                                                                                                                                                                                                       |   |   |   | Over                            one through  |   | Over                            five through  |    |   |   |   |   |
| *(dollars                            in thousands)*                                                                                                                                                                                        |   | One                            year and less |   | five                            years         |   | ten                            years         |   | Over                            ten years      |   | Total            |   |
|                                                                                                                                                                                                                                       |   | Amount |   | Yield |   | Amount |   | Yield |   | Amount |   | Yield |   | Amount |   | Yield |   | Amount |   | Yield |   |
| ***Securities                            Available for Sale***                                                                                                                                                                             |   |
| Mortgage-backed                             securities(a)                                                                                                                                                                             |   | $ | 989 |   |   | 5.14 | % | $ | 283,852 |   |   | 4.78 | % | $ | 236,427 |   |   | 5.15 | % | $ | 685,256 |   |   | 4.32 | % | $ | 1,206,524 |   |   | 4.59 | % |
| U.                            S. agency securities                                                                                                                                                                                         |   |   | 104,000 |   |   | 4.93 |   |   | 229,028 |   |   | 3.91 |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 333,028 |   |   | 4.23 |   |
| U.                            S. Treasury securities                                                                                                                                                                                       |   |   | 24,830 |   |   | 4.90 |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 24,830 |   |   | 4.90 |   |
| Obligations                            of states and political                            subdivisions                            (b)                                                                                                 |   |   | 1,268 |   |   | 5.42 |   |   | 6,456 |   |   | 5.69 |   |   | 4,567 |   |   | 5.96 |   |   | - |   |   | - |   |   | 12,291 |   |   | 5.76 |   |
| Other                            debt securities                                                                                                                                                                                           |   |   | 582 |   |   | 7.64 |   |   | 1,983 |   |   | 5.70 |   |   | 2,241 |   |   | 6.30 |   |   | - |   |   | - |   |   | 4,806 |   |   | 6.22 |   |
| Equity                            securities(c)                                                                                                                                                                                            |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 31,034 |   |   | 5.78 |   |   | 31,034 |   |   | 5.78 |   |
|                                 Total                                                                                                                                                                                  |   | $ | 131,669 |   |   | 4.94 | % | $ | 521,319 |   |   | 4.41 | % | $ | 243,235 |   |   | 5.17 | % | $ | 716,290 |   |   | 4.38 | % | $ | 1,612,513 |   |   | 4.56 | % |
| ***Securities                            Held to Maturity***                                                                                                                                                                               |
| Obligations                            of states and                             political subdivisions                            (b)                                                                                                |   | $ | 9,039 |   |   | 6.90 | % | $ | 107,285 |   |   | 5.75 | % | $ | 93,729 |   |   | 5.70 | % | $ | 63,527 |   |   | 6.12 | % | $ | 273,580 |   |   | 5.86 | % |
|                                 Total                                                                                                                                                                                  |   | $ | 9,039 |   |   | 6.90 | % | $ | 107,285 |   |   | 5.75 | % | $ | 93,729 |   |   | 5.70 | % | $ | 63,527 |   |   | 6.12 | % | $ | 273,580 |   |   | 5.86 | % |
| *(a)                            Distributed by contractual maturity without regard to                            repayment schedules                            or projected prepayments.*                                                 |
| *(b)                            Tax exempt yields are expressed on a fully taxable-equivalent                            basis.*                                                                                                           |
| *(c)                            These securities have no stated maturities or guaranteed                            dividends. Yield                            estimated based on expected near-term                            returns.* |

----

**DEPOSITS                  AND BORROWINGS**

| **TABLE                            7. DEPOSIT COMPOSITION**                |
|----------------------------------------------------------------------------|
| *(dollars                            in thousands)*                        | **2006             ** |                                                            2005 |                                                               2004 |
| Noninterest-bearing                            demand deposits             | **$** | **2,947,997** |   | **35** | **%** | $ | 3,301,227 |   | 38 | % | $ | 2,111,703 |   | 32 | % |
| Interest-bearing                            deposits:                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  NOW                          account deposits                        |   | **1,099,408** |   | **13** |   |   | 1,116,000 |   | 13 |   |   | 901,859 |   | 14 |   |
|                              Money market deposits                    |   | **1,185,610** |   | **14** |   |   | 1,103,510 |   | 13 |   |   | 1,270,479 |   | 19 |   |
|                              Savings deposits                         |   | **965,652** |   | **11** |   |   | 1,120,078 |   | 13 |   |   | 709,887 |   | 11 |   |
|                              Other time deposits                      |   | **750,165** |   | **9** |   |   | 717,938 |   | 8 |   |   | 694,458 |   | 10 |   |
|                              Time deposits $100,000 and over          |   | **1,484,476** |   | **18** |   |   | 1,246,083 |   | 15 |   |   | 924,221 |   | 14 |   |
|                                 Total interest-bearing |   | **5,485,311** |   | **65** |   |   | 5,303,609 |   | 62 |   |   | 4,500,904 |   | 68 |   |
|                                   Total      | **$** | **8,433,308** |   | **100** | **%** | $ | 8,604,836 |   | 100 | % | $ | 6,612,607 |   | 100 | % |

----

| **TABLE                            8. MATURITIES OF TIME DEPOSITS** |                                           |                                        |                          |
|---------------------------------------------------------------------|------------------------------------------------|---------------------------------------------|-------------------------------|
|                                                                | Deposits                            of         | Deposits                            of      |                          |
|                                                                | $100,000                                  | less                            than   |                          |
| *(in                            thousands)*                         | or                            more   | $100,000                          | Total     |
| Three                            months or less                     | $1,042,072                                     | $231,248                                    | $1,273,320                    |
| Over                            three months through six months     | 238,948                                        | 181,386                                     | 420,334                       |
| Over                            six months through twelve months    | 143,316                                        | 187,906                                     | 331,222                       |
| Over                            twelve months                       | 60,140                                         | 149,625                                     | 209,765                       |
|                              Total                             | $1,484,476                                     | $750,165                                    | $2,234,641                    |

**SHAREHOLDERS’                  EQUITY AND CAPITAL ADEQUACY**

----

| **TABLE                            9. RISK-BASED CAPITAL AND CAPITAL RATIOS**       |                             |
|-------------------------------------------------------------------------------------|----------------------------------|
| *(dollars                            in thousands)*                                 | **2006    ** |   | 2005      |   | 2004      |   | 2003      |   | 2002      |   |
| Tier                            1 regulatory capital                                | **$**                            | **853,774** |   | $ | 765,881 |   | $ | 767,717 |   | $ | 739,236 |   | $ | 672,408 |   |
| Tier                            2 regulatory capital                                |                             | **77,827** |   |   | 90,608 |   |   | 54,345 |   |   | 59,475 |   |   | 66,115 |   |
|                              Total regulatory capital                          | **$**                            | **931,601** |   | $ | 856,489 |   | $ | 822,062 |   | $ | 798,711 |   | $ | 738,523 |   |
| Risk-weighted                            assets                                     | **$**                            | **8,340,926** |   | $ | 7,746,046 |   | $ | 6,527,821 |   | $ | 5,777,094 |   | $ | 5,301,764 |   |
| Ratios                                                                              |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                              Leverage ratio (Tier 1 capital to average assets) |                             | **8.76** | **%** |   | 8.21 | % |   | 9.56 | % |   | 10.13 | % |   | 9.76 | % |
|                              Tier 1 capital to risk-weighted assets            |                             | **10.24** |   |   | 9.89 |   |   | 11.76 |   |   | 12.80 |   |   | 12.68 |   |
|                              Total capital to risk-weighted assets             |                             | **11.17** |   |   | 11.06 |   |   | 12.59 |   |   | 13.83 |   |   | 13.93 |   |
|                              Shareholders’ equity to total assets        |                             | **10.93** |   |   | 9.51 |   |   | 11.00 |   |   | 10.84 |   |   | 11.28 |   |

**LIQUIDITY                  MANAGEMENT AND CONTRACTUAL OBLIGATIONS**

***Liquidity                  Management***

----

***Contractual                  Obligations***

| **TABLE                            10. CONTRACTUAL OBLIGATIONS**                                                                                                                                                                                            |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                        | Payments                            due by period from December 31, 2006 |
|                                                                                                                                                                                                                                                        |   | Less                            than | 1                            -                            3 | 3                            -                            5 | More                            than |
| *(in                            thousands)*                                                                                                                                                                                                                 | Total | 1                            year | years | years | 5                            years |
| Operating                            lease obligations                                                                                                                                                                                                      | $72,531 | $8,494 | $15,712 | $10,764 | $37,561 |
| Purchase                            obligations                                                                                                                                                                                                             | 34,398 | 14,119 | 12,605 | 6,824 | 850 |
| Subordinated                            debentures (a)                                                                                                                                                                                                      | 15,465 | 3,093 | 6,186 | 6,186 | - |
| Other                            long-term liabilities (b)                            (c)                                                                                                                                                                   | - | - | - | - | - |
|                                Total                                                                                                                                                                                                         | $122,394 | $25,706 | $34,503 | $23,774 | $38,411 |
| (*a)                            Subordinated debentures are included with short-term                            and other borrowings                            in the Company’s consolidated financial*                                              |
| *                                 statements. Contractual payments are scheduled by expected                            call                            dates.*                                                                    |
| *(b)                            Obligations under the qualified defined benefit pension                            plan are not                            included. The Company does not anticipate*                                                       |
| *                                  making a pension contribution during 2007, and does not                            anticipate any                            significant near-term payments under the*                     |
| *                                  unfunded nonqualified pension plan. A $9.2 million nonqualified                            plan                            obligation was recorded at year-end 2006.*                      |
| *(c)                            The recorded obligation for postretirement benefits other                            than pensions                            was $27.1 million at December 31, 2006.*                                                      |
| *                                 The funding to purchase benefits for current retirees,                            net of retiree                            contributions, has not been                            significant.* |

----

**OFF-BALANCE                  SHEET ARRANGEMENTS**

| **TABLE                                11. CREDIT-RELATED COMMITMENTS** |                                                                                 |
|-------------------------------------------------------------------------|--------------------------------------------------------------------------------------|
| * (in                              thousands)*                     | Commitments                                expiring by period from December 31, 2006 |
|                                                                    |                                                                                 | Less                                than | 1                                -                                3 | 3                                -                                5 | More                                than |
|                                                                    | Total                                                                                | 1                                year | years | years |  5                                years |
| Loan                                commitments - revolving             | $2,261,861                                                                           | $1,577,765 | $362,366 | $290,013 | $31,                                717 |
| Loan                                commitments - nonrevolving          | 471,264                                                                              | 269,915 | 201,349 | - |  - |
| Credit                                card and personal credit lines    | 528,276                                                                              | 528,276 | - | - |  - |
| Standby                                and other letters of credit      | 385,478                                                                              | 354,204 | 31,274 | - |  - |
|                                     Total           | $3,646,879                                                                           | $2,730,160 | $594,989 | $290,013 |  $31,                                717 |

----

**ASSET/LIABILITY                  MANAGEMENT**

----

**RESULTS                  OF OPERATIONS**

**NET                  INTEREST INCOME (TE)**

----

| **TABLE                            12. SUMMARY OF AVERAGE BALANCE SHEETS, NET INTEREST                            INCOME(TE)****(a)****AND YIELDS AND RATES**                               |                                         |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------|
|                                                                                                                                                                                        | Year                            Ended        |   | Year                            Ended |   | Year                            Ended |   |
|                                                                                                                                                                                        | December                            31, 2006 |   | December                            31, 2005 |   | December                            31, 2004 |   |
|                                                                                                                                                                                        | Average                                      |   |   |   | Yield/ |   | Average |   |   |   | Yield/ |   | Average |   |   |   | Yield/ |   |
| *(dollars                            in thousands)*                                                                                                                                         | Balance                                 |   | Interest |   | Rate  |   | Balance  |   | Interest |   | Rate  |   | Balance  |   | Interest |   | Rate  |   |
| **ASSETS**                                                                                                                                                                                  |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| EARNING                            ASSETS                                                                                                                                                   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                            (TE)(b)                            (c)                                                                                                                     | $                                            | 6,803,228 |   | $ | 504,162 |   |   | 7.41 | % | $ | 6,174,972 |   | $ | 390,835 |   |   | 6.33 | % | $ | 5,192,713 |   | $ | 273,125 |   |   | 5.26 | % |
| Mortgage-backed                            securities                                                                                                                                       |                                         | 1,182,700 |   |   | 54,024 |   |   | 4.57 |   |   | 1,185,587 |   |   | 50,978 |   |   | 4.30 |   |   | 1,377,804 |   |   | 60,217 |   |   | 4.37 |   |
| U.S.                            agency securities                                                                                                                                           |                                         | 317,310 |   |   | 12,090 |   |   | 3.81 |   |   | 314,031 |   |   | 10,295 |   |   | 3.28 |   |   | 343,502 |   |   | 11,366 |   |   | 3.31 |   |
| U.S.                            Treasury securities                                                                                                                                         |                                         | 41,211 |   |   | 1,237 |   |   | 3.00 |   |   | 61,510 |   |   | 1,987 |   |   | 3.23 |   |   | 122,503 |   |   | 5,072 |   |   | 4.14 |   |
| Obligations                            of states and political                             subdivisions (TE)                                                                           |                                         | 249,035 |   |   | 15,106 |   |   | 6.07 |   |   | 236,782 |   |   | 14,579 |   |   | 6.16 |   |   | 242,058 |   |   | 15,663 |   |   | 6.47 |   |
| Other                            securities                                                                                                                                                 |                                         | 34,390 |   |   | 1,966 |   |   | 5.72 |   |   | 38,318 |   |   | 1,870 |   |   | 4.88 |   |   | 34,727 |   |   | 1,295 |   |   | 3.73 |   |
|                                 Total investment securities                                                                                                             |                                         | 1,824,646 |   |   | 84,423 |   |   | 4.63 |   |   | 1,836,228 |   |   | 79,709 |   |   | 4.34 |   |   | 2,120,594 |   |   | 93,613 |   |   | 4.41 |   |
| Federal                            funds sold and                             short-term investments                                                                                   |                                         | 721,388 |   |   | 33,998 |   |   | 4.71 |   |   | 87,798 |   |   | 3,421 |   |   | 3.90 |   |   | 13,926 |   |   | 181 |   |   | 1.30 |   |
|                                 Total earning assets                                                                                                                    |                                         | 9,349,262 |   | $ | 622,583 |   |   | 6.66 | % |   | 8,098,998 |   | $ | 473,965 |   |   | 5.85 | % |   | 7,327,233 |   | $ | 366,919 |   |   | 5.01 | % |
| NONEARNING                            ASSETS                                                                                                                                                |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                            assets                                                                                                                                                     |                                         | 978,761 |   |   |   |   |   |   |   |   | 870,447 |   |   |   |   |   |   |   |   | 619,993 |   |   |   |   |   |   |   |
| Allowance                            for loan losses                                                                                                                                        |                                         | (85,185 | ) |   |   |   |   |   |   |   | (66,124 | ) |   |   |   |   |   |   |   | (57,043 | ) |   |   |   |   |   |   |
|                                 Total assets                                                                                                                            | $                                            | 10,242,838 |   |   |   |   |   |   |   | $ | 8,903,321 |   |   |   |   |   |   |   | $ | 7,890,183 |   |   |   |   |   |   |   |
| **LIABILITIES                            AND****                                SHAREHOLDERS' EQUITY**                                                                  |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INTEREST-BEARING                            LIABILITIES                                                                                                                                     |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW                            account deposits                                                                                                                                             | $                                            | 1,055,979 |   | $ | 8,210 |   |   | .78 | % | $ | 919,722 |   | $ | 4,769 |   |   | .52 | % | $ | 810,074 |   | $ | 2,975 |   |   | .37 | % |
| Money                            market deposits                                                                                                                                            |                                         | 1,172,964 |   |   | 26,540 |   |   | 2.26 |   |   | 1,191,736 |   |   | 11,920 |   |   | 1.00 |   |   | 1,371,419 |   |   | 8,959 |   |   | .65 |   |
| Savings                            deposits                                                                                                                                                 |                                         | 1,123,647 |   |   | 11,384 |   |   | 1.01 |   |   | 829,777 |   |   | 5,986 |   |   | .72 |   |   | 652,689 |   |   | 2,230 |   |   | .34 |   |
| Other                            time deposits                                                                                                                                              |                                         | 750,557 |   |   | 22,350 |   |   | 2.98 |   |   | 723,396 |   |   | 12,742 |   |   | 1.76 |   |   | 726,482 |   |   | 9,487 |   |   | 1.31 |   |
| Time                            deposits $100,000 and over                                                                                                                                  |                                         | 1,339,829 |   |   | 53,591 |   |   | 4.00 |   |   | 1,120,566 |   |   | 29,035 |   |   | 2.59 |   |   | 809,324 |   |   | 11,014 |   |   | 1.36 |   |
|                                 Total interest-bearing deposits                                                                                                         |                                         | 5,442,976 |   |   | 122,075 |   |   | 2.24 |   |   | 4,785,197 |   |   | 64,452 |   |   | 1.35 |   |   | 4,369,988 |   |   | 34,665 |   |   | .79 |   |
| Short-term                            and other borrowings                                                                                                                                  |                                         | 582,845 |   |   | 23,085 |   |   | 3.96 |   |   | 661,682 |   |   | 16,534 |   |   | 2.50 |   |   | 601,427 |   |   | 6,017 |   |   | 1.00 |   |
|                                 Total interest-bearing liabilities                                                                                                      |                                         | 6,025,821 |   | $ | 145,160 |   |   | 2.41 | % |   | 5,446,879 |   | $ | 80,986 |   |   | 1.49 | % |   | 4,971,415 |   | $ | 40,682 |   |   | .82 | % |
| NONINTEREST-BEARING     LIABILITIES                            AND     SHAREHOLDERS'                            EQUITY                         |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand                            deposits                                                                                                                                                  |                                         | 3,033,978 |   |   |   |   |   |   |   |   | 2,439,229 |   |   |   |   |   |   |   |   | 1,977,515 |   |   |   |   |   |   |   |
| Other                            liabilities                                                                                                                                                |                                         | 117,736 |   |   |   |   |   |   |   |   | 81,851 |   |   |   |   |   |   |   |   | 59,776 |   |   |   |   |   |   |   |
| Shareholders'                            equity                                                                                                                                             |                                         | 1,065,303 |   |   |   |   |   |   |   |   | 935,362 |   |   |   |   |   |   |   |   | 881,477 |   |   |   |   |   |   |   |
|      Total                            liabilities and                                   shareholders' equity                         | $                                            | 10,242,838 |   |   |   |   |   |   |   | $ | 8,903,321 |   |   |   |   |   |   |   | $ | 7,890,183 |   |   |   |   |   |   |   |
| Net                            interest income and margin (TE)                                                                                                                              |                                         |   |   | $ | 477,423 |   |   | 5.11 | % |   |   |   | $ | 392,979 |   |   | 4.85 | % |   |   |   | $ | 326,237 |   |   | 4.45 | % |
| Net                            earning assets and spread                                                                                                                                    | $                                            | 3,323,441 |   |   |   |   |   | 4.25 | % | $ | 2,652,119 |   |   |   |   |   | 4.36 | % | $ | 2,355,818 |   |   |   |   |   | 4.19 | % |
| Interest                            cost of funding                             earning assets                                                                                         |                                         |   |   |   |   |   |   | 1.55 | % |   |   |   |   |   |   |   | 1.00 | % |   |   |   |   |   |   |   | .56 | % |
| *(a)                            Tax-equivalent (TE) amounts are calculated using a marginal                            federal income                            tax rate of 35%.*          |
| *(b)                            Includes loans held for sale.*                                                                                                                              |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| *(c)                            Average balance includes nonaccruing loans of $59,622                            in 2006, $26,848 in                            2005 and $26,942 in 2004..* |

----

| **TABLE                            13. SUMMARY OF CHANGES IN NET INTEREST INCOME(TE)****(a)                            (b)**                                                                                                |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                        | 2006                            Compared to 2005 |   | 2005                            Compared to 2004 |   |
|                                                                                                                                                                                                                        |                                            Due to        |   | Total    |   |                                           Due to        |   | Total     |   |
|                                                                                                                                                                                                                        |                 Change                            in        |   | Increase  |   |                  Change                            in        |   | Increase   |   |
| *(dollars                            in thousands)*                                                                                                                                                                         | Volume |   | Yield/Rate |   | (Decrease) |   | Volume |   | Yield/Rate |   | (Decrease) |   |
| **INTEREST                            INCOME (TE)**                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                            (TE)                                                                                                                                                                                       | $ | 42,300 |   | $ | 71,027 |   | $ | 113,327 |   | $ | 56,728 |   | $ | 60,982 |   | $ | 117,710 |   |
| Mortgage-backed                            securities                                                                                                                                                                       |   | (124 | ) |   | 3,170 |   |   | 3,046 |   |   | (8,279 | ) |   | (960 | ) |   | (9,239 | ) |
| U.S.                            agency securities                                                                                                                                                                           |   | 109 |   |   | 1,686 |   |   | 1,795 |   |   | (967 | ) |   | (104 | ) |   | (1,071 | ) |
| U.S.                            Treasury securities                                                                                                                                                                         |   | (618 | ) |   | (132 | ) |   | (750 | ) |   | (2,140 | ) |   | (945 | ) |   | (3,085 | ) |
| Obligations                            of states and political                             subdivisions (TE)                                                                                                      |   | 746 |   |   | (219 | ) |   | 527 |   |   | (336 | ) |   | (748 | ) |   | (1,084 | ) |
| Other                            securities                                                                                                                                                                                 |   | (204 | ) |   | 300 |   |   | 96 |   |   | 144 |   |   | 431 |   |   | 575 |   |
|                                 Total investment securities                                                                                                                                             |   | (91 | ) |   | 4,805 |   |   | 4,714 |   |   | (11,578 | ) |   | (2,326 | ) |   | (13,904 | ) |
| Federal                            funds sold and                             short-term investments                                                                                                                   |   | 29,714 |   |   | 863 |   |   | 30,577 |   |   | 2,354 |   |   | 886 |   |   | 3,240 |   |
|                                 Total interest income (TE)                                                                                                                                              |   | 71,923 |   |   | 76,695 |   |   | 148,618 |   |   | 47,504 |   |   | 59,542 |   |   | 107,046 |   |
| **INTEREST                            EXPENSE**                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW                            account deposits                                                                                                                                                                             |   | 787 |   |   | 2,654 |   |   | 3,441 |   |   | 444 |   |   | 1,350 |   |   | 1,794 |   |
| Money                            market deposits                                                                                                                                                                            |   | (191 | ) |   | 14,811 |   |   | 14,620 |   |   | (1,297 | ) |   | 4,258 |   |   | 2,961 |   |
| Savings                            deposits                                                                                                                                                                                 |   | 2,520 |   |   | 2,878 |   |   | 5,398 |   |   | 737 |   |   | 3,019 |   |   | 3,756 |   |
| Other                            time deposits                                                                                                                                                                              |   | 495 |   |   | 9,113 |   |   | 9,608 |   |   | (40 | ) |   | 3,295 |   |   | 3,255 |   |
| Time                            deposits $100,000 and over                                                                                                                                                                  |   | 6,499 |   |   | 18,057 |   |   | 24,556 |   |   | 5,378 |   |   | 12,643 |   |   | 18,021 |   |
|                                 Total interest-bearing deposits                                                                                                                                         |   | 10,110 |   |   | 47,513 |   |   | 57,623 |   |   | 5,222 |   |   | 24,565 |   |   | 29,787 |   |
| Short-term                            and other borrowings                                                                                                                                                                  |   | (2,165 | ) |   | 8,716 |   |   | 6,551 |   |   | 659 |   |   | 9,858 |   |   | 10,517 |   |
|                                 Total interest expense                                                                                                                                                  |   | 7,945 |   |   | 56,229 |   |   | 64,174 |   |   | 5,881 |   |   | 34,423 |   |   | 40,304 |   |
|                                 Change in net interest income (TE)                                                                                                                                      | $ | 63,978 |   | $ | 20,466 |   | $ | 84,444 |   | $ | 41,623 |   | $ | 25,119 |   | $ | 66,742 |   |
| *(a)                            Tax-equivalent (TE) amounts are calculated using a marginal                            federal income                            tax rate of 35%.*                                          |
| *(b)                            The change in interest shown as due to changes in either                            volume or rate                            includes an allocation of the amount*                         |
| *                                 that reflects the interaction of volume and rate changes.                            This allocation                            is based on the absolute dollar* |
| *                                amounts of change due solely to changes in volume or                            rate.*                                                                                 |

----

**PROVISION                    FOR CREDIT LOSSES**

----

**NONINTEREST                    INCOME**

| **TABLE                              14. NONINTEREST INCOME**                                                                          |   |     |       |                                      |   |     |                                  |   |   |   |   |
|----------------------------------------------------------------------------------------------------------------------------------------|--------|----------|------------|-------------------------------------------|--------|----------|---------------------------------------|--------|--------|--------|--------|
| *(dollars                              in thousands)*                                                                                  |   | **2006** |       | **%                              change** | 2005   |     | %                              change | 2004   |   |
| Service                              charges on deposit accounts                                                                       |   | **$**    | **28,058** |                                      |   | **(8**   | **)%**                                | $      | 30,579 |   |   | (18 | )% | $ | 37,148 |   |
| Bank                              card fees                                                                                            |   |     | **14,999** |                                      |   | **25**   |                                  |   | 11,972 |   |   | 16 |   |   | 10,319 |   |
| Trust                              service fees                                                                                        |   |     | **11,268** |                                      |   | **19**   |                                  |   | 9,483  |   |   | 6 |   |   | 8,959 |   |
| Secondary                              mortgage market operations                                                                      |   |     | **5,254**  |                                      |   | **5**    |                                  |   | 5,022  |   |   | 2 |   |   | 4,925 |   |
| Credit-related                              fees                                                                                       |   |     | **5,307**  |                                      |   | **6**    |                                  |   | 5,029  |   |   | 28 |   |   | 3,923 |   |
| ATM                              fees                                                                                                  |   |     | **5,154**  |                                      |   | **26**   |                                  |   | 4,085  |   |   | (9 | ) |   | 4,497 |   |
| Investment                              services income                                                                                |   |     | **4,994**  |                                      |   | **37**   |                                  |   | 3,655  |   |   | 4 |   |   | 3,508 |   |
| Other                              fees and charges                                                                                    |   |     | **4,294**  |                                      |   | **15**   |                                  |   | 3,745  |   |   | 20 |   |   | 3,125 |   |
| Other                              operating income                                                                                    |   |     | **3,418**  |                                      |   | **(25**  | **)**                                 |   | 4,536  |   |   | 17 |   |   | 3,880 |   |
| Net                              gain on sales and other                                 revenue from foreclosed assets |   |     | **2,102**  |                                      |   | ***(a*** | ***)***                               |   | 2,692  |   |   | *(a* | *)* |   | 1,378 |   |
| Net                              gains (losses) on disposals of surplus property                                                       |   |     | **(57**    | **)**                                     |   | ***(a*** | ***)***                               |   | 1,369  |   |   | *(a* | *)* |   | 793 |   |
| Securities                              transactions                                                                                   |   |     | **-**      |                                      |   | ***(a*** | ***)***                               |   | 68     |   |   | *(a* | *)* |   | 68 |   |
|                                Total noninterest income                                                                           |   | **$**    | **84,791** |                                      |   | **3**    | **%**                                 | $      | 82,235 |   |   | - | % | $ | 82,523 |   |
| *(a)                              Percentage change not meaningful.*                                                                   |   |     |       |                                      |   |     |                                  |   |   |   |   |   |   |   |   |   |

----

----

**NONINTEREST                    EXPENSE**

| **TABLE                              15. NONINTEREST EXPENSE**      |   |     |        |                                      |   |   |                                  |   |    |   |   |
|---------------------------------------------------------------------|--------|----------|-------------|-------------------------------------------|--------|--------|---------------------------------------|--------|---------|--------|--------|
| *(dollars                              in thousands)*               |   | **2006** |        | **%                              change** | 2005   |   | %                              change | 2004   |    |
| Employee                              compensation                  |   | **$**    | **145,189** |                                      |   | **10** | **%**                                 | $      | 132,488 |   |   | 11 | % | $ | 119,713 |   |
| Employee                              benefits                      |   |     | **35,027**  |                                      |   | **6**  |                                  |   | 33,020  |   |   | 11 |   |   | 29,644 |   |
|                                Total personnel                 |   |     | **180,216** |                                      |   | **9**  |                                  |   | 165,508 |   |   | 11 |   |   | 149,357 |   |
| Net                              occupancy                          |   |     | **29,836**  |                                      |   | **31** |                                  |   | 22,846  |   |   | 12 |   |   | 20,461 |   |
| Equipment                              and data processing          |   |     | **21,083**  |                                      |   | **22** |                                  |   | 17,344  |   |   | (2 | ) |   | 17,636 |   |
| Telecommunication                              and postage          |   |     | **10,795**  |                                      |   | **18** |                                  |   | 9,154   |   |   | 3 |   |   | 8,846 |   |
| Corporate                              value and franchise taxes    |   |     | **8,780**   |                                      |   | **12** |                                  |   | 7,824   |   |   | 4 |   |   | 7,496 |   |
| Legal                              and other professional services  |   |     | **11,663**  |                                      |   | **91** |                                  |   | 6,091   |   |   | 2 |   |   | 5,943 |   |
| Amortization                              of intangibles            |   |     | **10,426**  |                                      |   | **26** |                                  |   | 8,261   |   |   | 46 |   |   | 5,657 |   |
| Security                              and other outsourced services |   |     | **14,755**  |                                      |   | **41** |                                  |   | 10,493  |   |   | 16 |   |   | 9,045 |   |
| Advertising                              and promotion              |   |     | **6,999**   |                                      |   | **58** |                                  |   | 4,436   |   |   | (22 | ) |   | 5,675 |   |
| Operating                              supplies                     |   |     | **4,419**   |                                      |   | **15** |                                  |   | 3,853   |   |   | 3 |   |   | 3,727 |   |
| Bank                              card processing services          |   |     | **3,508**   |                                      |   | **16** |                                  |   | 3,036   |   |   | 16 |   |   | 2,612 |   |
| Deposit                              insurance and regulatory fees  |   |     | **2,494**   |                                      |   | **15** |                                  |   | 2,160   |   |   | 7 |   |   | 2,015 |   |
| Miscellaneous                              operating losses         |   |     | **8,449**   |                                      |   | **40** |                                  |   | 6,044   |   |   | 52 |   |   | 3,971 |   |
| Other                              operating expense                |   |     | **25,050**  |                                      |   | **29** |                                  |   | 19,348  |   |   | 8 |   |   | 17,837 |   |
|                                Total noninterest expense       |   | **$**    | **338,473** |                                      |   | 18     | %                                     | $      | 286,398 |   |   | 10 | % | $ | 260,278 |   |

----

*Share-Based                    Payment,*

----

----

----

**INCOME                    TAXES**

| **TABLE                              16. INCOME TAXES**                      |   |     |       |
|------------------------------------------------------------------------------|--------|----------|------------|
| *(in                              thousands)*                                |   | **2006** |       | 2005 |   | 2004 |   |
| Income                              tax expense at 35% of pre-tax income     |   | **$**    | **74,833** |   | $ | 50,875 |   | $ | 49,117 |   |
| Increase                              (decrease) resulting from              |   |     |       |   |   |   |   |   |   |   |
|                                Tax exempt income                        |   |     | **(3,626** | **)** |   | (3,630 | ) |   | (3,880 | ) |
|                                Low income housing credits               |   |     | **(2,342** | **)** |   | (2,387 | ) |   | (1,929 | ) |
|                                Disaster-relief credit                   |   |     | **(704**   | **)** |   | (1,900 | ) |   | - |   |
|                                State income tax and miscellaneous items |   |     | **1,003**  |   |   | 49 |   |   | (110 | ) |
| Income                              tax expense reported                     |   | **$**    | **69,164** |   | $ | 43,007 |   | $ | 43,198 |   |

**FOURTH                    QUARTER RESULTS**

| ·   | Whitney’s                            net interest income (TE) increased $10.6 million, or                            10%, compared to the                            fourth quarter of 2005, on a 7% increase in average earning                            assets and a                            wider net interest margin. The net interest margin (TE)                            was 5.14% for the                            fourth quarter of 2006, up 11 basis points from the year-earlier                            period.                            The overall yield on earning assets increased 78 basis                            points, reflecting                            higher benchmark rates for the large variable-rate segment                            of Whitney’s                            loan portfolio plus higher yields on investment securities                            and short-term                            liquidity management investments. The cost of funds increased                            67 basis                            points between the fourth quarters of 2005 and 2006.                            This increase was                            driven by higher competitive market rates as well as                            a shift in the                            funding mix to higher-cost sources which stemmed in part                            from the                            anticipated reduction in and reallocation of some of                            the post-storm                            deposit accumulations. Net interest income (TE) for the                            fourth quarter of                            2006 was down $2.8 million, or 2%, from this year’s third quarter, on a                            comparable percentage decrease in average earning assets                            and a 3-basis                            point decline in the net interest                            margin. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Whitney                          made a $1.0 million provision for credit losses in the                          fourth quarter of                          2006, compared to a provision of $.6 million in the fourth                          quarter of                          2005. The total of loans criticized through the Company’s credit                          risk-rating process increased by $5 million during the                          fourth quarter of                          2006, and the further downgrade of two storm-impacted credits                          contributed                          to some increase in the risk posture of the criticized                          loan pool.                          Recoveries exceeded loan charge-offs by $.4 million in                          2006’s fourth                          quarter, compared to a $.9 million net charge-off in the                          fourth quarter of                          2005. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Noninterest                          income increased 15%, or $2.7 million, from the fourth                          quarter of 2005.                          Improvements were noted in a number of income categories,                          reflecting                          internal growth, contributions from acquired operations                          and, for certain                          categories, the special post-storm conditions that affected                          performance in                          the year-earlier period. Deposit service charge income                          was up 17%, or $1.1                          million. Whitney’s ability to generate deposit service charges had been                          severely limited in the fourth quarter of 2005 by the post-storm                          deposit                          build-up and storm-related disruptions to normal customer                          and bank                          activity. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Noninterest                          expense in the fourth quarter of 2006 increased 15%, or                          $11.1 million,                          from 2005’s fourth quarter, including an additional $1.6 million                          of costs                          and charges associated with the 2005 storms. The incremental                          expense                          associated with acquired operations totaled $2.5 million                          in the fourth                          quarter of 2006, including amortization of acquired intangibles.                          Whitney’s                          personnel expense increased 4%, or $1.8 million, in total,                          including $1.1                          million for the staff of acquired operations. Net occupancy                          expense was up                          45%, or $2.7 million, in the fourth quarter of 2006. In                          addition to                          storm-related factors, this increase was driven by work                          on a number of                          deferred maintenance and repair projects, the cost of acquired                          operations,                          de novo branch expansion and the completion of capital                          projects on                          storm-damaged facilities. As the work to improve the Company’s                          disaster-risk profile wound down, management started or                          resumed a number                          of projects to enhance systems and products which contributed                          to an                          overall $2.4 million increase in the expense for legal                          and other                          professional services compared to the fourth quarter of                          2005. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Item                  7A: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET                  RISK**

----

| **Item                            8: FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA**                                 |
|--------------------------------------------------------------------------------------------------------------------|
| **SUMMARY                            OF QUARTERLY FINANCIAL INFORMATION                            (Unaudited)**   |
|                                                                                                               | **2006                            Quarters** |
| *(dollars                            in thousands, except per share data)*                                         | **4th                               ** |   | **3rd                               ** |   | **2nd                               ** |    | **1st   ** |   |
| Net                            interest income                                                                     | **$** | **116,954** |   | **$** | **119,771** |   | **$** | **121,249** |   | **$** | **113,237** |   |
| Net                            interest income (TE)                                                                |   | **118,531** |   |   | **121,344** |   |   | **122,804** |   |   | **114,744** |   |
| Provision                            for credit losses                                                             |   | **1,000** |   |   | **-** |   |   | **760** |   |   | **1,960** |   |
| Noninterest                            income                                                                      |   | **21,024** |   |   | **21,348** |   |   | **21,243** |   |   | **21,176** |   |
|                              Net securities gains in noninterest income                                       |   | **-** |   |   | **-** |   |   | **-** |   |   | **-** |   |
| Noninterest                            expense                                                                     |   | **87,170** |   |   | **89,230** |   |   | **82,933** |   |   | **79,140** |   |
| Income                            tax expense                                                                      |   | **15,916** |   |   | **16,698** |   |   | **19,386** |   |   | **17,164** |   |
| Net                            income                                                                              | **$** | **33,892** |   | **$** | **35,191** |   | **$** | **39,413** |   | **$** | **36,149** |   |
| Average                            balances                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 Total assets                                                   | **$** | **10,039,062** |   | **$** | **10,218,601** |   | **$** | **10,552,631** |   | **$** | **10,162,685** |   |
|                                 Earning assets                                                 |   | **9,162,597** |   |   | **9,320,563** |   |   | **9,665,927** |   |   | **9,249,232** |   |
|                                 Loans                                                          |   | **6,960,981** |   |   | **6,837,875** |   |   | **6,792,224** |   |   | **6,510,471** |   |
|                                 Deposits                                                       |   | **8,179,884** |   |   | **8,399,368** |   |   | **8,790,845** |   |   | **8,542,554** |   |
|                                 Shareholders' equity                                           |   | **1,126,915** |   |   | **1,095,628** |   |   | **1,061,216** |   |   | **975,456** |   |
| Ratios                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 Return on average assets                                       |   | **1.34** | **%** |   | **1.37** | **%** |   | **1.50** | **%** |   | **1.44** | **%** |
|                                 Return on average equity                                       |   | **11.93** |   |   | **12.74** |   |   | **14.90** |   |   | **15.03** |   |
|                                 Net interest margin                                            |   | **5.14** |   |   | **5.17** |   |   | **5.09** |   |   | **5.02** |   |
| Earnings                            per share                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 Basic                                                          | **$** | **.52** |   | **$** | **.54** |   | **$** | **.61** |   | **$** | **.58** |   |
|                                 Diluted                                                        |   | **.51** |   |   | **.53** |   |   | **.60** |   |   | **.57** |   |
| Cash                            dividends per share                                                                |   | **.27** |   |   | **.27** |   |   | **.27** |   |   | **.27** |   |
| Trading                            data                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 High price                                                     | **$** | **35.88** |   | **$** | **37.00** |   | **$** | **37.26** |   | **$** | **36.17** |   |
|                                 Low price                                                      |   | **31.23** |   |   | **34.42** |   |   | **33.80** |   |   | **27.27** |   |
|                                 End-of-period closing price                                    |   | **32.62** |   |   | **35.77** |   |   | **35.37** |   |   | **35.46** |   |
|                                 Trading volume                                                 |   | **10,932,005** |   |   | **10,339,045** |   |   | **13,719,163** |   |   | **14,411,128** |   |
|                                                                                                               |  2005                            Quarters |
| *(dollars                            in thousands, except per share data)*                                         |   | 4th   |   |   | 3rd   |    |   | 2nd   |    |   | 1st   |   |
| Net                            interest income                                                                     | $ | 106,426 |   | $ | 97,685 |   | $ | 94,569 |   | $ | 88,419 |   |
| Net                            interest income (TE)                                                                |   | 107,907 |   |   | 99,116 |   |   | 96,023 |   |   | 89,933 |   |
| Provision                            for credit losses                                                             |   | 580 |   |   | 34,000 |   |   | 1,500 |   |   | 1,500 |   |
| Noninterest                            income                                                                      |   | 18,328 |   |   | 20,305 |   |   | 22,211 |   |   | 21,391 |   |
|                              Net securities gains in noninterest income                                       |   | - |   |   | - |   |   | 68 |   |   | - |   |
| Noninterest                            expense                                                                     |   | 76,077 |   |   | 71,678 |   |   | 72,382 |   |   | 66,261 |   |
| Income                            tax expense                                                                      |   | 12,948 |   |   | 3,189 |   |   | 13,577 |   |   | 13,293 |   |
| Net                            income                                                                              | $ | 35,149 |   | $ | 9,123 |   | $ | 29,321 |   | $ | 28,756 |   |
| Average                            balances                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 Total assets                                                   | $ | 9,539,789 |   | $ | 8,999,177 |   | $ | 8,833,445 |   | $ | 8,225,375 |   |
|                                 Earning assets                                                 |   | 8,524,522 |   |   | 8,158,377 |   |   | 8,104,745 |   |   | 7,597,501 |   |
|                                 Loans                                                          |   | 6,512,421 |   |   | 6,332,291 |   |   | 6,102,380 |   |   | 5,591,349 |   |
|                                 Deposits                                                       |   | 7,973,830 |   |   | 7,229,462 |   |   | 7,086,179 |   |   | 6,593,001 |   |
|                                 Shareholders' equity                                           |   | 952,579 |   |   | 966,771 |   |   | 933,976 |   |   | 887,059 |   |
| Ratios                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 Return on average assets                                       |   | 1.46 | % |   | .40 | % |   | 1.33 | % |   | 1.42 | % |
|                                 Return on average equity                                       |   | 14.64 |   |   | 3.74 |   |   | 12.59 |   |   | 13.15 |   |
|                                 Net interest margin                                            |   | 5.03 |   |   | 4.83 |   |   | 4.75 |   |   | 4.78 |   |
| Earnings                            per share                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 Basic                                                          | $ | .56 |   | $ | .15 |   | $ | .47 |   | $ | .47 |   |
|                                 Diluted                                                        |   | .55 |   |   | .14 |   |   | .46 |   |   | .47 |   |
| Cash                            dividends per share                                                                |   | .25 |   |   | .25 |   |   | .25 |   |   | .23 |   |
| Trading                            data                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 High price                                                     | $ | 29.93 |   | $ | 33.69 |   | $ | 33.00 |   | $ | 31.09 |   |
|                                 Low price                                                      |   | 24.14 |   |   | 26.60 |   |   | 28.65 |   |   | 28.44 |   |
|                                 End-of-period closing price                                    |   | 27.56 |   |   | 27.04 |   |   | 32.63 |   |   | 29.67 |   |
|                                 Trading volume                                                 |   | 16,175,745 |   |   | 18,314,726 |   |   | 6,531,000 |   |   | 9,412,595 |   |
| *All                            prices as reported on The Nasdaq Global Select                            Market.* |   |   |   |   |   |   |   |   |   |   |   |   |

----

**MANAGEMENT’S                  REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING**

*Internal                  Control - Integrated Framework*

----

**REPORT                  OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

*Internal                  Control - Integrated Framework*
*Internal                  Control - Integrated Framework*

----

----

| **WHITNEY                HOLDING CORPORATION AND SUBSIDIARIES**                                                                        |
|----------------------------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                BALANCE SHEETS**                                                                                         |
|                                                                                                                                   |   |   |   |   |
|                                                                                                                                   | *                                              December 31* |   |
| *(dollars                in thousands)*                                                                                                | **2006    ** |   | 2005                    |   |
|                                                                                                                                   |   |   |   |   |
| ASSETS                                                                                                                                 |   |   |   |   |   |   |
|                  Cash and due from financial institutions                                                                         | **$** | **318,165** |   | $ | 554,827 |   |
|                  Federal funds sold and short-term investments                                                                    |   | **314,079** |   |   | 805,758 |   |
|                  Loans held for sale                                                                                              |   | **26,966** |   |   | 46,678 |   |
|                  Investment securities                                                                                            |   |   |   |   |   |   |
|                     Securities available for sale                                                                  |   | **1,612,513** |   |   | 1,413,763 |   |
|                     Securities held to maturity, fair values of $273,793 and $228,027,                respectively |   | **273,580** |   |   | 227,688 |   |
|                       Total investment securities                                                        |   | **1,886,093** |   |   | 1,641,451 |   |
|                  Loans, net of unearned income                                                                                    |   | **7,050,416** |   |   | 6,560,597 |   |
|                     Allowance for loan losses                                                                      |   | **(75,927** | **)** |   | (90,028 | ) |
|                       Net loans                                                                          |   | **6,974,489** |   |   | 6,470,569 |   |
|                                                                                                                                   |   |   |   |   |   |   |
|                  Bank premises and equipment                                                                                      |   | **175,109** |   |   | 151,978 |   |
|                  Goodwill                                                                                                         |   | **291,876** |   |   | 204,089 |   |
|                  Other intangible assets                                                                                          |   | **23,327** |   |   | 26,304 |   |
|                  Accrued interest receivable                                                                                      |   | **48,130** |   |   | 52,808 |   |
|                  Other assets                                                                                                     |   | **127,646** |   |   | 154,544 |   |
|                       Total assets                                                                       | **$** | **10,185,880** |   | $ | 10,109,006 |   |
|                                                                                                                                   |   |   |   |   |   |   |
| LIABILITIES                                                                                                                            |   |   |   |   |   |   |
|                  Noninterest-bearing demand deposits                                                                              | **$** | **2,947,997** |   | $ | 3,301,227 |   |
|                  Interest-bearing deposits                                                                                        |   | **5,485,311** |   |   | 5,303,609 |   |
|                       Total deposits                                                                     |   | **8,433,308** |   |   | 8,604,836 |   |
|                                                                                                                                   |   |   |   |   |   |   |
|                  Short-term and other borrowings                                                                                  |   | **516,927** |   |   | 433,350 |   |
|                  Accrued interest payable                                                                                         |   | **17,940** |   |   | 10,538 |   |
|                  Accrued expenses and other liabilities                                                                           |   | **104,743** |   |   | 99,239 |   |
|                       Total liabilities                                                                  |   | **9,072,918** |   |   | 9,147,963 |   |
|                                                                                                                                   |   |   |   |   |   |   |
| SHAREHOLDERS'                EQUITY                                                                                                    |   |   |   |   |   |   |
|                  Common stock, no par value                                                                                       |   |   |   |   |   |   |
|                     Authorized - 100,000,000 shares                                                                |   |   |   |   |   |   |
|                     Issued - 66,103,275 and 63,657,059 shares, respectively                                        |   | **2,800** |   |   | 2,800 |   |
|                  Capital surplus                                                                                                  |   | **343,697** |   |   | 250,174 |   |
|                  Retained earnings                                                                                                |   | **812,644** |   |   | 738,655 |   |
|                  Accumulated other comprehensive loss                                                                             |   | **(41,015** | **)** |   | (21,223 | ) |
|                  Treasury stock at cost - 173,211 and 316,575 shares,                respectively                                 |   | **(5,164** | **)** |   | (9,363 | ) |
|                       Total shareholders' equity                                                         |   | **1,112,962** |   |   | 961,043 |   |
|                       Total liabilities and shareholders' equity                                         | **$** | **10,185,880** |   | $ | 10,109,006 |   |
| *The                accompanying notes are an integral part of these financial                statements.*                             |   |   |   |   |   |   |

----

| **WHITNEY                  HOLDING CORPORATION AND SUBSIDIARIES**                                              |
|----------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENTS OF INCOME**                                                         |
|                                                                                                           |   |   |   |   |   |   |
|                                                                                                           | *                                   Years Ended December 31* |
| *(dollars                  in thousands, except per share data)*                                               | **2006** |   | 2005 |   | 2004 |   |
| INTEREST                  INCOME                                                                               |   |   |   |   |   |   |   |   |   |
|                    Interest and fees on loans                                                             | **$** | **502,921** |   | $ | 390,058 |   | $ | 272,460 |   |
|                    Interest and dividends on investment securities                                        |   |   |   |   |   |   |   |   |   |
|                       Taxable securities                                                   |   | **70,218** |   |   | 65,130 |   |   | 77,950 |   |
|                       Tax-exempt securities                                                |   | **9,234** |   |   | 9,476 |   |   | 10,181 |   |
|                    Interest on federal funds sold and short-term investments                              |   | **33,998** |   |   | 3,421 |   |   | 181 |   |
|                       Total interest income                                                |   | **616,371** |   |   | 468,085 |   |   | 360,772 |   |
| INTEREST                  EXPENSE                                                                              |   |   |   |   |   |   |   |   |   |
|                    Interest on deposits                                                                   |   | **122,075** |   |   | 64,452 |   |   | 34,665 |   |
|                    Interest on short-term and other borrowings                                            |   | **23,085** |   |   | 16,534 |   |   | 6,017 |   |
|                       Total interest expense                                               |   | **145,160** |   |   | 80,986 |   |   | 40,682 |   |
| NET                  INTEREST INCOME                                                                           |   | **471,211** |   |   | 387,099 |   |   | 320,090 |   |
| PROVISION                  FOR CREDIT LOSSES                                                                   |   | **3,720** |   |   | 37,580 |   |   | 2,000 |   |
| NET                  INTEREST INCOME AFTER PROVISION                   FOR CREDIT LOSSES                  |   | **467,491** |   |   | 349,519 |   |   | 318,090 |   |
| NONINTEREST                  INCOME                                                                            |   |   |   |   |   |   |   |   |   |
|                    Service charges on deposit accounts                                                    |   | **28,058** |   |   | 30,579 |   |   | 37,148 |   |
|                    Bank card fees                                                                         |   | **14,999** |   |   | 11,972 |   |   | 10,319 |   |
|                    Trust service fees                                                                     |   | **11,268** |   |   | 9,483 |   |   | 8,959 |   |
|                    Secondary mortgage market operations                                                   |   | **5,254** |   |   | 5,022 |   |   | 4,925 |   |
|                    Other noninterest income                                                               |   | **25,212** |   |   | 25,111 |   |   | 21,104 |   |
|                    Securities transactions                                                                |   | **-** |   |   | 68 |   |   | 68 |   |
|                       Total noninterest income                                             |   | **84,791** |   |   | 82,235 |   |   | 82,523 |   |
| NONINTEREST                  EXPENSE                                                                           |   |   |   |   |   |   |   |   |   |
|                    Employee compensation                                                                  |   | **145,189** |   |   | 132,488 |   |   | 119,713 |   |
|                    Employee benefits                                                                      |   | **35,027** |   |   | 33,020 |   |   | 29,644 |   |
|                       Total personnel                                                      |   | **180,216** |   |   | 165,508 |   |   | 149,357 |   |
|                    Net occupancy                                                                          |   | **29,836** |   |   | 22,846 |   |   | 20,461 |   |
|                    Equipment and data processing                                                          |   | **21,083** |   |   | 17,344 |   |   | 17,636 |   |
|                    Telecommunication and postage                                                          |   | **10,795** |   |   | 9,154 |   |   | 8,846 |   |
|                    Corporate value and franchise taxes                                                    |   | **8,780** |   |   | 7,824 |   |   | 7,496 |   |
|                    Legal and other professional services                                                  |   | **11,663** |   |   | 6,091 |   |   | 5,943 |   |
|                    Amortization of intangibles                                                            |   | **10,426** |   |   | 8,261 |   |   | 5,657 |   |
|   Other                  noninterest expense                                                         |   | **65,674** |   |   | 49,370 |   |   | 44,882 |   |
|                       Total noninterest expense                                            |   | **338,473** |   |   | 286,398 |   |   | 260,278 |   |
| INCOME                  BEFORE INCOME TAXES                                                                    |   | **213,809** |   |   | 145,356 |   |   | 140,335 |   |
| INCOME                  TAX EXPENSE                                                                            |   | **69,164** |   |   | 43,007 |   |   | 43,198 |   |
| NET                  INCOME                                                                                    | **$** | **144,645** |   | $ | 102,349 |   | $ | 97,137 |   |
| EARNINGS                  PER SHARE                                                                            |   |   |   |   |   |   |   |   |   |
|                    Basic                                                                                  | **$** | **2.24** |   | $ | 1.65 |   | $ | 1.59 |   |
|                    Diluted                                                                                |   | **2.20** |   |   | 1.63 |   |   | 1.56 |   |
| WEIGHTED-AVERAGE                  SHARES OUTSTANDING                                                           |   |   |   |   |   |   |   |   |   |
|                    Basic                                                                                  |   | **64,687,363** |   |   | 62,008,004 |   |   | 61,122,581 |   |
|                    Diluted                                                                                |   | **65,853,149** |   |   | 62,953,293 |   |   | 62,083,043 |   |
| CASH                  DIVIDENDS PER SHARE                                                                      | **$** | **1.08** |   | $ | .98 |   | $ | .89 |   |
| *The                  accompanying notes are an integral part of these financial                  statements.* |   |   |   |   |   |   |   |   |   |

----

| **WHITNEY                  HOLDING CORPORATION AND SUBSIDIARIES**                                                                                                                                  |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY**                                                                                                                    |
|                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                               |   |   |   |   |   |   |   | Accumulated |   |   |   |   |
|                                                                                                                                                                                               |   |   |   |   |   |   |   | Other |   |   |   |   |
|                                                                                                                                                                                               |   | Common | Capital | Retained | Comprehensive | Treasury |   |   |
| *(dollars                  in thousands, except per share data)*                                                                                                                                   |   | Stock | Surplus | Earnings | Income                  (Loss) | Stock | Total |
| Balance                  at December 31, 2003                                                                                                                                                      |   | $ | 2,800 |   | $ | 172,910 |   | $ | 656,195 |   | $ | 8,438 |   | $ | (30 | ) | $ | 840,313 |   |
| Net                  income                                                                                                                                                                        |   |   | -                      |  |   | -                       |   |   | 97,137 |   |   | -                       |   |   | -     |   |   | 97,137 |   |
| Other                  comprehensive loss:                   Unrealized net holding loss on securities,                      net of reclassifications and tax             |   |   | -                      |   |   | -                       |   |   | -                       |   |   | (11,401 | ) |   | -     |   |   | (11,401 | ) |
| Total                  comprehensive income                                                                                                                                                        |   |   | -                      |   |   | -                       |   |   | 97,137 |   |   | (11,401 | ) |   | -                      |   |   | 85,736 |   |
| Cash                  dividends, $.89 per share                                                                                                                                                    |   |   | -                      |   |   | -                       |   |   | (55,355 | ) |   | -      |   |   | -     |   |   | (55,355 | ) |
| Stock                  acquired under repurchase program                                                                                                                                           |   |   | -                      |   |   | -      |   |   | -      |   |   | -      |   |   | (31,475 | ) |   | (31,475 | ) |
| Stock                  issued in business combination                                                                                                                                              |   |   | -                      |   |   | 41,932 |   |   | -      |   |   | -      |   |   | -     |   |   | 41,932 |   |
| Stock                  issued to dividend reinvestment plan                                                                                                                                        |   |   | -                      |   |   | 1,445 |   |   | -      |   |   | -      |   |   | 654 |   |   | 2,099 |   |
| Long-term                  incentive plan stock activity:                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    Performance-based restricted stock                                                                                                                                         |   |   | -                      |   |   | 8,207 |   |   | -      |   |   | -      |   |   | (857 | ) |   | 7,350 |   |
|                    Stock options                                                                                                                                                              |   |   | -                      |   |   | 13,034 |   |   | -      |   |   | -      |   |   | 55 |   |   | 13,089 |   |
| Directors'                  compensation plan stock activity                                                                                                                                       |   |   | -                      |   |   | 898 |   |   | -      |   |   | -      |   |   | 178 |   |   | 1,076 |   |
| Balance                  at December 31, 2004                                                                                                                                                      |   | $ | 2,800 |   | $ | 238,426 |   | $ | 697,977 |   | $ | (2,963 | ) | $ | (31,475 | ) | $ | 904,765 |   |
| Net                  income                                                                                                                                                                        |   |   | -                      |   |   | -       |   |   | 102,349 |   |   | -      |   |   | -     |   |   | 102,349 |   |
| Other                      comprehensive loss:                       Unrealized net holding loss on securities,                          net of reclassifications and tax |   |   | -                      |   |   | -                        |   |   | -      |   |   | (17,268 | ) |   | -     |   |   | (17,268 | ) |
|                    Change in minimum pension liability, net of tax                                                                                                                            |   |   | -                      |   |   | -                        |   |   | -      |   |   | (992 | ) |   | -     |   |   | (992 | ) |
| Total                  comprehensive income                                                                                                                                                        |   |   | -                      |   |   | -       |   |   | 102,349 |   |   | (18,260 | ) |   | -     |   |   | 84,089 |   |
| Cash                  dividends, $.98 per share                                                                                                                                                    |   |   | -                      |   |   | -       |   |   | (61,671 | ) |   | -      |   |   | -     |   |   | (61,671 | ) |
| Stock                  acquired under repurchase program                                                                                                                                           |   |   | -                      |   |   | -       |   |   | -      |   |   | -      |   |   | (46,669 | ) |   | (46,669 | ) |
| Stock                  issued in business combination                                                                                                                                              |   |   | -                      |   |   | (714 | ) |   | -      |   |   | -      |   |   | 57,838 |   |   | 57,124 |   |
| Stock                  issued to dividend reinvestment plan                                                                                                                                        |   |   | -                      |   |   | (103 | ) |   | -      |   |   | -      |   |   | 2,521 |   |   | 2,418 |   |
| Long-term                  incentive plan stock activity:                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    Performance-based restricted stock                                                                                                                                         |   |   | -                      |   |   | 1,444 |   |   | -      |   |   | -      |   |   | 5,727 |   |   | 7,171 |   |
|                    Stock options                                                                                                                                                              |   |   | -                      |   |   | 10,063 |   |   | -      |   |   | -      |   |   | 2,363 |   |   | 12,426 |   |
| Directors'                  compensation plan stock activity                                                                                                                                       |   |   | -                      |   |   | 1,058 |   |   | -      |   |   | -      |   |   | 332 |   |   | 1,390 |   |
| Balance                  at December 31, 2005                                                                                                                                                      |   | $ | 2,800  |    | $ | 250,174 |   | $ | 738,655 |   | $ | (21,223 | ) | $ | (9,363 | ) | $ | 961,043 |   |
| Net                  income                                                                                                                                                                        |   |   | **-                     ** |   |   | **-      ** |   |   | **144,645** |   |   | **-     ** |   |   | **-    ** |   |   | **144,645** |   |
| Other                      comprehensive loss:                       Unrealized net holding loss on securities,                          net of reclassifications and tax |   |   | **-                     ** |   |   | **-      ** |   |   | **-     ** |   |   | **2,142** |   |   | **-    ** |   |   | **2,142** |   |
|                    Change in minimum pension liability, net of tax                                                                                                                            |   |   | **-                     ** |   |   | **-      ** |   |   | **-     ** |   |   | **86** |   |   | **-    ** |   |   | **86** |   |
| Total                  comprehensive income                                                                                                                                                        |   |   | **-                     ** |   |   | **-      ** |   |   | **144,645** |   |   | **2,228** |   |   | **-    ** |   |   | **146,873** |   |
| Cash                  dividends, $1.08 per share                                                                                                                                                   |   |   | **-                     ** |   |   | **-      ** |   |   | **(70,656** | **)** |   | **-     ** |   |   | **-    ** |   |   | **(70,656** | **)** |
| Stock                  issued in business combination                                                                                                                                              |   |   | **-                     ** |   |   | **75,129** |   |   | **-     ** |   |   | **-     ** |   |   | **-    ** |   |   | **75,129** |   |
| Stock                  issued to dividend reinvestment plan                                                                                                                                        |   |   | **-                     ** |   |   | **322** |   |   | **-     ** |   |   | **-     ** |   |   | **2,468** |   |   | **2,790** |   |
| Long-term                  incentive plan stock activity:                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    Performance-based restricted stock & units                                                                                                                             |   |   | **-    ** |   |   | **10,461** |   |   | **-     ** |   |   | **-     ** |   |   | **(571** | **)** |   | **9,890** |   |
|                    Stock options                                                                                                                                                              |   |   | **-    ** |   |   | **6,332** |   |   | **-     ** |   |   | **-     ** |   |   | **751** |   |   | **7,083** |   |
| Directors'                  compensation plan stock activity                                                                                                                                       |   |   | **-    ** |   |   | **1,279** |   |   | **-     ** |   |   | **-     ** |   |   | **1,551** |   |   | **2,830** |   |
| Adoption                  of SFAS No. 158, net of tax (Note 15)                                                                                                                                    |   |   | **-    ** |   |   | **-      ** |   |   | **-     ** |   |   | **(22,020** | **)** |   | **-    ** |   |   | **(22,020** | **)** |
| **Balance                  at December 31, 2006**                                                                                                                                                  |   | **$** | **2,800** |   | **$** | **343,697** |   | **$** | **812,644** |   | **$** | **(41,015** | **)** | **$** | **(5,164** | **)** | **$** | **1,112,962** |   |
|                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| *The                  accompanying notes are an integral part of these financial                  statements.*                                                                                     |

----

| **WHITNEY                  HOLDING CORPORATION AND SUBSIDIARIES**                                                                              |
|------------------------------------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENTS OF CASH FLOWS**                                                                                     |
|                                                                                                                                           |   |   |   |   |   |   |
|                                                                                                                                           | *Years                  ended December 31* |
| *(dollars                  in thousands)*                                                                                                      | **2006  ** |   | 2005   |   | 2004   |   |
| OPERATING                  ACTIVITIES                                                                                                          |   |   |   |   |   |   |   |   |   |
| Net                  income                                                                                                                    | **$** | **144,645** |   | $ | 102,349 |   | $ | 97,137 |   |
| Adjustments                  to reconcile net income to net cash provided by operating                  activities:                            |   |   |   |   |   |   |   |   |   |
|                    Depreciation and amortization of bank premises and                  equipment                                          |   | **15,710** |   |   | 13,589 |   |   | 13,458 |   |
|                    Amortization of purchased intangibles                                                                                  |   | **10,426** |   |   | 8,261 |   |   | 5,657 |   |
|                    Share-based compensation earned                                                                                        |   | **12,265** |   |   | 9,372 |   |   | 8,867 |   |
|                    Premium amortization (discount accretion) on securities,                  net                                          |   | **2,558** |   |   | 1,060 |   |   | 4,139 |   |
|                    Provision for credit losses and losses on foreclosed                  assets                                           |   | **3,786** |   |   | 37,114 |   |   | 2,099 |   |
|                    Net gains on asset dispositions                                                                                        |   | **(266** | **)** |   | (2,601 | ) |   | (1,189 | ) |
|                    Deferred tax benefit                                                                                                   |   | **(2,001** | **)** |   | (11,615 | ) |   | (3,399 | ) |
|                    Net (increase) decrease in loans originated and held for                  sale                                         |   | **19,712** |   |   | (27,004 | ) |   | 6,513 |   |
|                    Net (increase) decrease in interest and other income receivable                  and                  prepaid expenses |   | **19,261** |   |   | (28,754 | ) |   | 4,693 |   |
|                    Net increase (decrease) in interest payable and accrued income                  taxes and                  expenses    |   | **(31,595** | **)** |   | 37,812 |   |   | 11,343 |   |
|                       Other, net                                                                                           |   | **10,609** |   |   | (26,219 | ) |   | 100 |   |
|                         Net cash provided by operating activities                                                |   | **205,110** |   |   | 113,364 |   |   | 149,418 |   |
| INVESTING                  ACTIVITIES                                                                                                          |   |   |   |   |   |   |   |   |   |
| Proceeds                  from sales of investment securities available for sale                                                               |   | **45,815** |   |   | 281,400 |   |   | 65,023 |   |
| Proceeds                  from maturities of investment securities available for                  sale                                         |   | **376,705** |   |   | 361,784 |   |   | 542,947 |   |
| Purchases                  of investment securities available for sale                                                                         |   | **(548,187** | **)** |   | (232,122 | ) |   | (385,969 | ) |
| Proceeds                  from maturities of investment securities held to maturity                                                            |   | **10,015** |   |   | 13,595 |   |   | 16,440 |   |
| Purchases                  of investment securities held to maturity                                                                           |   | **(56,056** | **)** |   | (14,901 | ) |   | (53,334 | ) |
| Net                  increase in loans                                                                                                         |   | **(215,051** | **)** |   | (547,722 | ) |   | (564,403 | ) |
| Net                  (increase) decrease in federal funds sold and short-term                  investments                                     |   | **490,908** |   |   | (756,131 | ) |   | (8,039 | ) |
| Proceeds                  from sales of foreclosed assets and surplus property                                                                 |   | **2,647** |   |   | 9,880 |   |   | 4,777 |   |
| Purchases                  of bank premises and equipment                                                                                      |   | **(26,131** | **)** |   | (12,592 | ) |   | (15,928 | ) |
| Net                  cash (paid) received in acquisitions                                                                                      |   | **(33,992** | **)** |   | (39,228 | ) |   | 7,364 |   |
| Other,                  net                                                                                                                    |   | **8,202** |   |   | (7,939 | ) |   | (2,504 | ) |
|                       Net cash provided by (used in) investing activities                                                  |   | **54,875** |   |   | (943,976 | ) |   | (393,626 | ) |
| FINANCING                  ACTIVITIES                                                                                                          |   |   |   |   |   |   |   |   |   |
| Net                  increase (decrease) in transaction account and savings account                  deposits                                  |   | **(652,825** | **)** |   | 1,375,730 |   |   | 117,081 |   |
| Net                  increase in time deposits                                                                                                 |   | **163,028** |   |   | 177,608 |   |   | 133,654 |   |
| Net                  increase (decrease) in short-term and other borrowings                                                                    |   | **51,732** |   |   | (281,761 | ) |   | 9,584 |   |
| Proceeds                  from issuance of common stock                                                                                        |   | **10,113** |   |   | 14,185 |   |   | 13,995 |   |
| Purchases                  of common stock                                                                                                     |   | **(3,165** | **)** |   | (52,924 | ) |   | (29,681 | ) |
| Cash                  dividends                                                                                                                |   | **(68,111** | **)** |   | (61,150 | ) |   | (57,061 | ) |
| Other,                  net                                                                                                                    |   | **2,581** |   |   | - |   |   | - |   |
|                         Net cash provided by (used in) financing activities                                      |   | **(496,647** | **)** |   | 1,171,688 |   |   | 187,572 |   |
|                         Increase (decrease) in cash and cash equivalents                                         |   | **(236,662** | **)** |   | 341,076 |   |   | (56,636 | ) |
|                         Cash and cash equivalents at beginning of year                                           |   | **554,827** |   |   | 213,751 |   |   | 270,387 |   |
|                         Cash and cash equivalents at end of year                                                 | **$** | **318,165** |   | $ | 554,827 |   | $ | 213,751 |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |   |
| Cash                  received during the year for:                                                                                            |   |   |   |   |   |   |   |   |   |
|                       Interest income                                                                                      | **$** | **617,359** |   | $ | 442,647 |   | $ | 360,756 |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |   |
| Cash                  paid during the year for:                                                                                                |   |   |   |   |   |   |   |   |   |
|                       Interest expense                                                                                     | **$** | **140,763** |   | $ | 77,059 |   | $ | 40,777 |   |
|                       Income taxes                                                                                         |   | **91,583** |   |   | 28,198 |   |   | 37,110 |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |   |
| Noncash                  investing activities:                                                                                                 |   |   |   |   |   |   |   |   |   |
|                       Foreclosed assets received in settlement of loans                                                    | **$** | **1,361** |   | $ | 2,754 |   | $ | 2,125 |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |   |
| *The                  accompanying notes are an integral part of these financial                  statements.*                                 |   |   |   |   |   |   |   |   |   |

----

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE        1**

**NATURE        OF BUSINESS**

**NOTE        2**

**SUMMARY        OF SIGNIFICANT ACCOUNTING POLICIES AND RECENT        PRONOUNCEMENTS**

***Basis        of Presentation***

***Use        of Estimates***

***Investment        Securities***

----

***Loans        Held for Sale***

***Loans***

***Allowance        for Loan Losses***

***Bank        Premises and Equipment***

**.        **

----

***Foreclosed        Assets and Surplus Property***

***Goodwill        and Other Intangible Assets***

***Share-Based        Compensation***

*Share-Based        Payment*

----

***Income        Taxes***

***Earnings        per Share***

***Statements        of Cash Flows***

***Operating        Segment Disclosures***

*Disclosures        about Segments of an Enterprise and Related Information*

***Other***

***Accounting        Standard Developments***

*Accounting        for Defined Benefit Pension and Other Postretirement Plans - an amendment        of        FASB Statements No. 87, 88, 106 and 132(R)*

----

*Fair        Value Measurements*

*Accounting        for Uncertainty in Income Taxes*

*Share-Based        Payment*
*Accounting        for Stock-Based Compensation*

----

**NOTE        3**

**UPDATE        ON IMPACT OF NATURAL DISASTERS**

***Credit        Quality and Allowance for Loan Losses***

***Disaster        Response Costs, Casualty Losses, Business Interruption and Related        Insurance***

----

**NOTE        4**

**MERGERS        AND ACQUISITIONS**

**NOTE        5**

**FEDERAL        FUNDS SOLD AND SHORT-TERM INVESTMENT**

|                                                           |                                                                              December 31 |
|----------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *(in                  thousands)*                              |                                                                                                                                                                                                                                                                                                                                                                                            | **2006** | 2005 |
| Federal                  funds sold                            |                                                                                                                                                                                                                                                                                                                                                                                            | **$110,500** | $304,500 |
| Securities                  purchased under resale agreements  |                                                                                                                                                                                                                                                                                                                                                                                            | **200,000** | - |
| U.                  S. government agency discount notes        |                                                                                                                                                                                                                                                                                                                                                                                            | **-** | 499,013 |
| Other                  short-term interest-bearing investments |                                                                                                                                                                                                                                                                                                                                                                                            | **3,579** | 2,245 |
|                       Total                |                                                                                                                                                                                                                                                                                                                                                                                            | **$314,079** | $805,758 |

----

**NOTE        6**

**INVESTMENT        SECURITIES**

|                                                                |                   |                    |               |             |
|---------------------------------------------------------------------|------------------------|-------------------------|--------------------|------------------|
|                                                                | Amortized              | Unrealized              | Unrealized         | Fair   |
| *(in                    thousands)*                                 | Cost    | Gains    | Losses   | Value            |
| ***Securities                    Available for Sale***              |
| **December                    31, 2006**                            |                   |                    |               |             |
| Mortgage-backed                    securities                       | **$1,230,461**         | **$697**                | **$24,634**        | **$1,206,524**   |
| U.                    S. agency securities                          | **336,969**            | **110**                 | **4,051**          | **333,028**      |
| U.                    S. Treasury securities                        | **24,857**             | **-**                   | **27**             | **24,830**       |
| Obligations                    of states and political subdivisions | **12,215**             | **85**                  | **9**              | **12,291**       |
| Other                    securities                                 | **35,840**             | **24**                  | **24**             | **35,840**       |
|                         Total                   | **$1,640,342**         | **$916**                | **$28,745**        | **$1,612,513**   |
| December                    31, 2005                                |                   |                    |               |             |
| Mortgage-backed                    securities                       | $1,057,759             | $762                    | $25,287            | $1,033,234       |
| U.                    S. agency securities                          | 304,389                | 21                      | 6,069              | 298,341          |
| U.                    S. Treasury securities                        | 49,918                 | -                       | 596                | 49,322           |
| Obligations                    of states and political subdivisions | 100                    | 2                       | -                  | 102              |
| Other                    securities                                 | 32,722                 | 51                      | 9                  | 32,764           |
|                         Total                   | $1,444,888             | $836                    | $31,961            | $1,413,763       |
| ***Securities                    Held to Maturity***                |                   |                    |               |             |

| **December                      31, 2006**                            |         |       |       |         |
|-----------------------------------------------------------------------|--------------|------------|------------|--------------|
| Obligations                      of states and political subdivisions | **$273,580** | **$2,325** | **$2,112** | **$273,793** |
|                           Total                   | **$273,580** | **$2,325** | **$2,112** | **$273,793** |
| December                      31, 2005                                |         |       |       |         |
| Obligations                      of states and political subdivisions | $227,688     | $3,035     | $2,696     | $228,027     |
|                           Total                   | $227,688     | $3,035     | $2,696     | $228,027     |

|                                                              |                                                                                                                                      |                                                                                                                          |
|-------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|
| **December                  31, 2006**                            | Less                  than 12                  Months               | 12                  Months or                  Longer             |
|                                                              | Fair                                                                                                                  | Unrealized                                                                                                                    | Fair    | Unrealized |
| *(in                  thousands)*                                 | Value                                                                                                                           | Losses                                                                                                              | Value  | Losses   |
| ***Securities                  Available for Sale***              |                                                                                                                                      |                                                                                                                          |   |   |
| Mortgage-backed                  securities                       | $171,835                                                                                                                                  | $281                                                                                                                          | $891,358 | $24,353 |
| U.S.                  agency securities                           | 29,187                                                                                                                                    | 6                                                                                                                             | 220,946 | 4,045 |
| U.S.                  Treasury securities                         | 24,830                                                                                                                                    | 27                                                                                                                            | - | - |
| Obligations                  of states and political subdivisions | 4,615                                                                                                                                     | 9                                                                                                                             | - | - |
| Other                  securities                                 | 441                                                                                                                                       | 9                                                                                                                             | 835 | 15 |
|                       Total                   | $230,908                                                                                                                                  | $332                                                                                                                          | $1,113,139 | $28,413 |
| ***Securities                  Held to Maturity***                |                                                                                                                                      |                                                                                                                          |   |   |
| Obligations                  of states and political subdivisions | $33,490                                                                                                                                   | $279                                                                                                                          | $68,068 | $1,833 |
|                       Total                   | $33,490                                                                                                                                   | $279                                                                                                                          | $68,068 | $1,833 |

----

|                                                              |                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                  |
|-------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| December                  31, 2005                                |                                                    Less than 12                  Months                   |                                                        12 Months or                  Longer                  |
|                                                              | Fair                                                                                                                                                                                                                                                                                                                                                           | Unrealized                                                                                                                                                                                                                                                                                                                                                                            | Fair   | Unrealized |
| *(in                  thousands)*                                 | Value                                                                                                                                                                                                                                                                                                                                                               | Losses                                                                                                                                                                                                                                                                                                                                                                           | Value | Losses   |
| ***Securities                  Available for Sale***              |                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                  |   |   |
| Mortgage-backed                  securities                       | $574,748                                                                                                                                                                                                                                                                                                                                                                 | $11,507                                                                                                                                                                                                                                                                                                                                                                               | $415,469 | $13,780 |
| U.S.                  agency securities                           | 98,953                                                                                                                                                                                                                                                                                                                                                                   | 1,059                                                                                                                                                                                                                                                                                                                                                                                 | 170,102 | 5,010 |
| U.S.                  Treasury securities                         | 24,655                                                                                                                                                                                                                                                                                                                                                                   | 275                                                                                                                                                                                                                                                                                                                                                                                   | 24,667 | 321 |
| Other                  securities                                 | 1,041                                                                                                                                                                                                                                                                                                                                                                    | 9                                                                                                                                                                                                                                                                                                                                                                                     | - | - |
|                       Total                   | $699,397                                                                                                                                                                                                                                                                                                                                                                 | $12,850                                                                                                                                                                                                                                                                                                                                                                               | $610,238 | $19,111 |
| ***Securities                  Held to Maturity***                |                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                  |   |   |
| Obligations                  of states and political subdivisions | $66,424                                                                                                                                                                                                                                                                                                                                                                  | $1,113                                                                                                                                                                                                                                                                                                                                                                                | $32,154 | $1,583 |
|                       Total                   | $66,424                                                                                                                                                                                                                                                                                                                                                                  | $1,113                                                                                                                                                                                                                                                                                                                                                                                | $32,154 | $1,583 |

----

|                                                           |                       |                       |
|----------------------------------------------------------------|----------------------------|----------------------------|
|                                                           | Amortized                  | Fair        |
| *(in                  thousands)*                              | Cost        | Value                 |
| ***Securities                  Available for Sale***           |                       |                       |
| Within                  one year                               | $                  130,410 | $                  130,098 |
| One                  to five years                             | 239,136                    | 235,484                    |
| Five                  to ten years                             | 4,495                      | 4,567                      |
| After                  ten years                               | -                          | -                          |
|                    Debt securities with single maturities | 374,041                    | 370,149                    |
| Mortgage-backed                  securities                    | 1,230,461                  | 1,206,524                  |
| Equity                  and other debt securities              | 35,840                     | 35,840                     |
|                       Total                | $1,640,342                 | $1,612,513                 |
| ***Securities                  Held to Maturity***             |                       |                       |
| Within                  one year                               | $                  9,039   | $                  9,062   |
| One                  to five years                             | 107,285                    | 107,424                    |
| Five                  to ten years                             | 93,729                     | 93,701                     |
| After                  ten years                               | 63,527                     | 63,606                     |
|                       Total                | $273,580                   | $273,793                   |

**NOTE        7**

**LOANS**

|                                                                |   |         December                    31                                                                                                                       |
|---------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *(in                    thousands)*                                 |   | **                                                2006** |   |                                                 2005 |   |
| Commercial,                    financial and agricultural           |   | $                                                                                                                                                                                                    | 2,725,531 |   |   | 38 | % | $ | 2,685,894 |   |   | 41 | % |
| Real                    estate - commercial, construction and other |   |                                                                                                                                                                                                 | 3,094,004 |   |   | 44 |   |   | 2,743,486 |   |   | 42 |   |
| Real                    estate - residential mortgage               |   |                                                                                                                                                                                                 | 893,091 |   |   | 13 |   |   | 774,124 |   |   | 12 |   |
| Individuals                                                         |   |                                                                                                                                                                                                 | 337,790 |   |   | 5 |   |   | 357,093 |   |   | 5 |   |
|                         Total                   |   | $                                                                                                                                                                                                    | 7,050,416 |   |   | 100 | % | $ | 6,560,597 |   |   | 100 | % |

----

|                                                          |   |   |    |
|---------------------------------------------------------------|--------|--------|---------|
| *(in                  thousands)*                             |   | 2006   |    |
| Beginning                  balance                            |   | $      | 52,939  |   |
| Additions                                                     |   |   | 77,408  |   |
| Repayments                                                    |   |   | (75,016 | ) |
| Net                  decrease from changes in related parties |   |   | (1,194  | ) |
| Ending                  balance                               |   | $      | 54,137  |   |

**NOTE        8**

**ALLOWANCE        FOR LOAN LOSSES AND RESERVE FOR LOSSES ON UNFUNDED CREDIT        COMMITMENTS**

|                                            |   |                Years                  Ended December 31                                                                                                                 |                                                                                                                                                                                                                                                 |
|-------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *(in                  thousands)*               |   | **                                              2006        ** |                                                2005         |                                            2004  |
| Allowance                  at beginning of year |   | **$**                                                                                                                                                                                                                                              | **90,028**                                                                                                                                                                                                                                           |   | $ | 54,345 |   | $ | 59,475 |   |
| Allowance                  of acquired bank     |   |                                                                                                                                                                                                                                               | **2,908**                                                                                                                                                                                                                                            |   |   | 3,648 |   |   | 2,461 |   |
| Provision                  for credit losses    |   |                                                                                                                                                                                                                                               | **2,400**                                                                                                                                                                                                                                            |   |   | 37,000 |   |   | 2,000 |   |
| Loans                  charged off              |   |                                                                                                                                                                                                                                               | **(25,228**                                                                                                                                                                                                                                          | **)** |   | (10,656 | ) |   | (14,030 | ) |
| Recoveries                                      |   |                                                                                                                                                                                                                                               | **5,819**                                                                                                                                                                                                                                            |   |   | 5,691 |   |   | 4,439 |   |
|                    Net charge-offs         |   |                                                                                                                                                                                                                                               | **(19,409**                                                                                                                                                                                                                                          | **)** |   | (4,965 | ) |   | (9,591 | ) |
| Allowance                  at end of year       |   | **$**                                                                                                                                                                                                                                              | **75,927**                                                                                                                                                                                                                                           |   | $ | 90,028 |   | $ | 54,345 |   |

|                                          |   |                                         Years Ended December 31 |      |
|-----------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|
| *(in                  thousands)*             |   | **2006**                                                                                                                                                                      |      | 2005 |   | 2004 |   |
| Reserve                  at beginning of year |   | **$**                                                                                                                                                                         | **580**   |   | $ | - |   |   | - |   |
| Provision                  for credit losses  |   |                                                                                                                                                                          | **1,320** |   |   | 580 |   |   | - |   |
| Reserve                  at end of year       |   | **$**                                                                                                                                                                         | **1,900** |   | $ | 580 |   |   | - |   |

----

**NOTE        9**

**IMPAIRED        LOANS, NONPERFORMING LOANS, FORECLOSED ASSETS AND SURPLUS        PROPERTY**

|                                                                           |                                                   December 31 |
|--------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *(in                  thousands)*                                              | **2006**                                                                                                                                                                                                                      | 2005 |
| Impaired                  loans at year end                                    |                                                                                                                                                                                                                          |   |
|                    Requiring a loss allowance                             | **$38,308**                                                                                                                                                                                                                   | $54,994 |
|                    Not requiring a loss allowance                         | **12,950**                                                                                                                                                                                                                    | 4,789 |
|                    Total recorded investment in impaired loans            | **$51,258**                                                                                                                                                                                                                   | $59,783 |
| Impairment                  loss allowance required at year end                | **$9,773**                                                                                                                                                                                                                    | $17,334 |
| Average                  recorded investment in impaired loans during the year | **$54,387**                                                                                                                                                                                                                   | $29,971 |

|                                                       |                                   December                  31 |
|------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *(in                  thousands)*                          | **2006**                                                                                                                                                                                                                                 | 2005 |
| Loans                  accounted for on a nonaccrual basis | **$55,992**                                                                                                                                                                                                                              | $65,565 |
| Restructured                  loans                        | **-**                                                                                                                                                                                                                                    | 30 |
|                    Total nonperforming loans          | **$55,992**                                                                                                                                                                                                                              | $65,595 |
| Foreclosed                  assets and surplus property    | **$800**                                                                                                                                                                                                                                 | $1,708 |

|                                                         |                                                               Years Ended December 31 |
|--------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *(in                  thousands)*                            | **2006**                                                                                                                                                                                                                                                                                                          | 2005 | 2004 |
| Contractual                  interest                        | **$5,903**                                                                                                                                                                                                                                                                                                        | $3,347 | $2,671 |
| Interest                  recognized                         | **1,249**                                                                                                                                                                                                                                                                                                         | 2,223 | 1,615 |
|                    Decrease in reported interest income | **$4,654**                                                                                                                                                                                                                                                                                                        | $1,124 | $1,056 |

|                              |                                                  Years Ended December 31 |
|-----------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *(in                  thousands)* | **2006**                                                                                                                                                                                                                            | 2005 | 2004 |
| Revenues                          | **$1,944**                                                                                                                                                                                                                          | $2,207 | $1,271 |
| Direct                  expenses  | **218**                                                                                                                                                                                                                             | 210 | 205 |

----

**NOTE        10**

**BANK        PREMISES AND EQUIPMENT**

|                                               |   |                                                      December 31 |         |
|----------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|
| *(in                  thousands)*                  |   | **2006**                                                                                                                                                                                                                                        |         | 2005 |   |
| Land                                               |   | **$**                                                                                                                                                                                                                                           | **47,380**   |   | $ | 38,170 |   |
| Buildings                  and improvements        |   |                                                                                                                                                                                                                                            | **186,967**  |   |   | 177,319 |   |
| Equipment                  and furnishings         |   |                                                                                                                                                                                                                                            | **117,703**  |   |   | 106,998 |   |
|                                               |   |                                                                                                                                                                                                                                            | **352,050**  |   |   | 322,487 |   |
| Accumulated                  depreciation          |   |                                                                                                                                                                                                                                            | **(176,941** | **)** |   | (170,509 | ) |
| Total                  bank premises and equipment |   | **$**                                                                                                                                                                                                                                           | **175,109**  |   | $ | 151,978 |   |

|                                                                                  |                                                                  Years Ended December 31 |
|---------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *(in                  thousands)*                                                     | **2006**                                                                                                                                                                                                                                                                                                                            | 2005 | 2004 |
| Buildings                  and improvements                                           | **$                  7,298**                                                                                                                                                                                                                                                                                                        | $                  6,830 | $                  6,679 |
| Equipment                  and furnishings                                            | **8,412**                                                                                                                                                                                                                                                                                                                           | 6,759 | 6,779 |
|                       Total depreciation and amortization expense | **$15,710**                                                                                                                                                                                                                                                                                                                         | $13,589 | $13,458 |

| *(in                  thousands)* |                     |
|-----------------------------------|--------------------------|
| 2007                              | $                  8,494 |
| 2008                              | 8,610                    |
| 2009                              | 7,102                    |
| 2010                              | 5,565                    |
| 2011                              | 5,199                    |
| Later                  years      | 37,561                   |
|                    Total     | $72,531                  |

**NOTE        11**

**GOODWILL        AND OTHER INTANGIBLE ASSETS**

----

|                                                                                             |                                                                                                                                                      |
|--------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
| *(in                  thousands)*                                                                | **                                     December 31, 2006** |                                      December 31, 2005 |
|                                                                                             | Purchase                                                                                                                                                  | Accumulated | Carrying | Purchase | Accumulated | Carrying |
|                                                                                             | Value                                                                                                                                           | Amortization | Value  | Value  | Amortization | Value  |
| Deposit                  relationships and other                   identifiable intangibles | **$54,003**                                                                                                                                               | **$31,960** | **$22,043** | $46,817 | $23,510 | $23,307 |
| Unidentifiable                  intangibles                                                      | **11,321**                                                                                                                                                | **10,037** | **1,284** | 11,321 | 8,324 | 2,997 |
|                       Total                                                  | **$65,324**                                                                                                                                               | **$41,997** | **$23,327** | $58,138 | $31,834 | $26,304 |

|                                                                      |                                           Years Ended December 31 |
|---------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *(in                  thousands)*                                         | **2006**                                                                                                                                                                                  | 2005 | 2004 |
| Deposit                  relationships and other identifiable intangibles | **$                  8,713**                                                                                                                                                              | $6,548 | $3,944 |
| Unidentifiable                  intangibles                               | **1,713**                                                                                                                                                                                 | 1,713 | 1,713 |
|                       Total amortization              | **$10,426**                                                                                                                                                                               | $8,261 | $5,657 |

| *(in                  thousands**)* |   |
|-------------------------------------|--------|
| 2007                                | $9,320 |
| 2008                                | 5,838  |
| 2009                                | 3,876  |
| 2010                                | 1,759  |
| 2011                                | 1,217  |

**NOTE        12**

**DEPOSITS**

|                                                                      |                       December                  31 |
|---------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *(in                  thousands)*                                         | **2006**                                                                                                                                                         | 2005 |
| Noninterest-bearing                  demand deposits                      | **$2,947,997**                                                                                                                                                   | $3,301,227 |
| Interest-bearing                  deposits:                               |                                                                                                                                                             |   |
|                    NOW account deposits                              | **1,099,408**                                                                                                                                                    | 1,116,000 |
|                    Money market deposits                             | **1,185,610**                                                                                                                                                    | 1,103,510 |
|                    Savings deposits                                  | **965,652**                                                                                                                                                      | 1,120,078 |
|                    Other time deposits                               | **750,165**                                                                                                                                                      | 717,938 |
|                    Time deposits $100,000 and over                   | **1,484,476**                                                                                                                                                    | 1,246,083 |
|                       Total interest-bearing deposits | **5,485,311**                                                                                                                                                    | 5,303,609 |
|                         Total deposits      | **$8,433,308**                                                                                                                                                   | $8,604,836 |

----

| *(in                  thousands)*               |       |
|-------------------------------------------------|------------|
| 2007                                            | $2,027,251 |
| 2008                                            | 164,642    |
| 2009                                            | 39,125     |
| 2010                                            | 2,727      |
| 2011                  and thereafter            | 896        |
|                       Total | $2,234,641 |

**NOTE        13**

**SHORT-TERM        AND OTHER BORROWINGS**

|                                                                            |                                           December 31 |
|---------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *(in                  thousands)*                                               | **2006**                                                                                                                                                                      | 2005 |
| Securities                  sold under agreements to repurchase                 | **$438,643**                                                                                                                                                                  | $280,390 |
| Federal                  funds purchased                                        | **38,012**                                                                                                                                                                    | 99,595 |
| Treasury                  Investment Program                                    | **22,878**                                                                                                                                                                    | 36,042 |
| Other                  borrowings                                               | **17,394**                                                                                                                                                                    | 17,323 |
|                       Total short-term and other borrowings | **$516,927**                                                                                                                                                                  | $433,350 |

|                                            |   |                                                                                                                             |        |                                                                                                                                                             |   |                                                                                                                                                             |   |
|-------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------|-------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| *(dollars                  in thousands)*       |   | **                                   2006** |        |                           2005 |   |                                          2004 |   |
| At                  December 31                 |   |                                                                                                                             |        |                                                                                                                                                             |   |                                                                                                                                                             |   |
|                    Interest rate           |   |                                                                                                                             | **3.91**    | **%**                                                                                                                                                            |   | 2.73                                                                                                                                                             | %      |   | .84 | % |
|                    Balance                 |   | **$**                                                                                                                            | **438,643** |                                                                                                                                                             | $      | 280,390                                                                                                                                                          |   | $ | 309,827 |   |
| Average                  for the year           |   |                                                                                                                             |        |                                                                                                                                                             |   |                                                                                                                                                             |   |   |   |   |
|                    Effective interest rate |   |                                                                                                                             | **3.76**    | **%**                                                                                                                                                            |   | 1.91                                                                                                                                                             | %      |   | .69 | % |
|                    Balance                 |   | **$**                                                                                                                            | **491,619** |                                                                                                                                                             | $      | 373,501                                                                                                                                                          |   | $ | 338,096 |   |
| Maximum                  month-end outstanding  |   | **$**                                                                                                                            | **592,685** |                                                                                                                                                             | $      | 451,480                                                                                                                                                          |   | $ | 412,839 |   |

----

|                                            |   |     |        |   |   |    |   |
|-------------------------------------------------|--------|----------|-------------|--------|--------|---------|--------|
| *(dollars                  in thousands)*       |   | **2006** |        | 2005   |   | 2004    |   |
| At                  December 31                 |   |     |        |   |   |    |   |
|                    Interest rate           |   |     | **4.94**    | **%**  |   | 4.01    | %      |   | 2.17 | % |
|                    Balance                 |   | **$**    | **38,012**  |   | $      | 99,595  |   | $ | 161,279 |   |
| Average                  for the year           |   |     |        |   |   |    |   |   |   |   |
|                    Effective interest rate |   |     | **4.80**    | **%**  |   | 3.20    | %      |   | 1.27 | % |
|                    Balance                 |   | **$**    | **61,560**  |   | $      | 165,813 |   | $ | 160,554 |   |
| Maximum                  month-end outstanding  |   | **$**    | **161,869** |   | $      | 387,346 |   | $ | 294,878 |   |

----

**NOTE        14**

**OTHER        ASSETS AND ACCRUED EXPENSES AND OTHER LIABILITIES**

|                                                                           |                                                December 31 |
|--------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *(in                  thousands)*                                              | **2006**                                                                                                                                                                                                    | 2005 |
| ***Other                  Assets***                                            |                                                                                                                                                                                                        |   |
| Net                  deferred income tax asset                                 | **$                  66,914**                                                                                                                                                                               | $                  53,065 |
| Low-income                  housing tax credit fund investments                | **15,639**                                                                                                                                                                                                  | 17,986 |
| Insurance                  claim receivable                                    | **5,489**                                                                                                                                                                                                   | 21,895 |
| Prepaid                  pension asset                                         | **-**                                                                                                                                                                                                       | 15,271 |
| Cash                  surrender value of life insurance                        | **9,134**                                                                                                                                                                                                   | 9,575 |
| Prepaid                  expenses                                              | **7,283**                                                                                                                                                                                                   | 4,713 |
| Miscellaneous                  investments, receivables and other assets       | **23,187**                                                                                                                                                                                                  | 32,039 |
|                    Total other assets                                     | **$127,646**                                                                                                                                                                                                | $154,544 |
| ***Accrued                  Expenses and Other Liabilities***                  |                                                                                                                                                                                                        |   |
| Accrued                  taxes and other expenses                              | **$                  21,020**                                                                                                                                                                               | $49,369 |
| Dividend                  payable                                              | **14,704**                                                                                                                                                                                                  | 12,159 |
| Obligation                  for postretirement benefits other than pensions    | **27,128**                                                                                                                                                                                                  | 11,877 |
| Liability                  for pension benefits                                | **21,318**                                                                                                                                                                                                  | 7,589 |
| Reserve                  for losses on unfunded credit commitments             | **1,900**                                                                                                                                                                                                   | 580 |
| Miscellaneous                  payables, deferred income and other liabilities | **18,673**                                                                                                                                                                                                  | 17,665 |
|                    Total accrued expenses and other liabilities           | **$104,743**                                                                                                                                                                                                | $99,239 |

**NOTE        15**

**EMPLOYEE        BENEFIT PLANS**

***Retirement        Plans***

----

|                                                          |   |                                                                                                                             |        |                                                                                                                                     |   |
|---------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------|-------------|------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                          |   | **                                   2006** |        |                                      2005 |   |
| *(in                  thousands)*                             |   | Qualified                                                                                                                        |        | Nonqualified                                                                                                                             |   | Qualified |   | Nonqualified |   |
| ***Changes                  in benefit obligation***          |   |                                                                                                                             |        |                                                                                                                                     |   |   |   |   |   |
| Benefit                  obligation, beginning of year        |   | **$**                                                                                                                            | **142,643** |                                                                                                                                     | **$**  | **8,212** |   | $ | 124,905 |   | $ | 6,522 |   |
| Service                  cost for benefits                    |   |                                                                                                                             | **7,597**   |                                                                                                                                     |   | **391** |   |   | 6,926 |   |   | 395 |   |
| Interest                  cost on benefit obligation          |   |                                                                                                                             | **7,774**   |                                                                                                                                     |   | **474** |   |   | 7,208 |   |   | 415 |   |
| Plan                  amendments                              |   |                                                                                                                             | **-**       |                                                                                                                                     |   | **-** |   |   | - |   |   | 75 |   |
| Net                  actuarial (gain) loss                    |   |                                                                                                                             | **(4,477**  | **)**                                                                                                                                    |   | **198** |   |   | 7,891 |   |   | 842 |   |
| Benefits                  paid                                |   |                                                                                                                             | **(5,171**  | **)**                                                                                                                                    |   | **(48** | **)** |   | (4,287 | ) |   | (37 | ) |
| Benefit                  obligation, end of year              |   |                                                                                                                             | **148,366** |                                                                                                                                     |   | **9,227** |   |   | 142,643 |   |   | 8,212 |   |
| ***Changes                  in plan assets***                 |   |                                                                                                                             |        |                                                                                                                                     |   |   |   |   |   |   |   |   |   |
| Plan                  assets at fair value, beginning of year |   |                                                                                                                             | **125,347** |                                                                                                                                     |   | **-** |   |   | 106,605 |   |   | - |   |
| Actual                  return on plan assets                 |   |                                                                                                                             | **16,621**  |                                                                                                                                     |   | **-** |   |   | 3,390 |   |   | - |   |
| Employer                  contribution                        |   |                                                                                                                             | **-**       |                                                                                                                                     |   | **48** |   |   | 20,000 |   |   | 37 |   |
| Benefits                  paid                                |   |                                                                                                                             | **(5,171**  | **)**                                                                                                                                    |   | **(48** | **)** |   | (4,287 | ) |   | (37 | ) |
| Plan                  expenses                                |   |                                                                                                                             | **(522**    | **)**                                                                                                                                    |   | **-** |   |   | (361 | ) |   | - |   |
| Plan                  assets at fair value, end of year       |   |                                                                                                                             | **136,275** |                                                                                                                                     |   | **-** |   |   | 125,347 |   |   | - |   |
| ***Funded                  status***                          |   |                                                                                                                             | **(12,091** | **)**                                                                                                                                    |   | **(9,227** | **)** |   | (17,296 | ) |   | (8,212 | ) |
| Unrecognized                  net actuarial loss              |   |                                                                                                                             | ***(a***    | ***)***                                                                                                                                  |   | ***(a*** | ***)*** |   | 32,874 |   |   | 2,055 |   |
| Unrecognized                  transition obligation           |   |                                                                                                                             | ***(a***    | ***)***                                                                                                                                  |   | ***(a*** | ***)*** |   | - |   |   | 53 |   |
| Unrecognized                  net prior service cost (credit) |   |                                                                                                                             | ***(a***    | ***)***                                                                                                                                  |   | ***(a*** | ***)*** |   | (307 | ) |   | 39 |   |
| ***Net                  amount recognized***                  |   | **$**                                                                                                                            | **(12,091** | **)**                                                                                                                                    | **$**  | **(9,227** | **)** | $ | 15,271 |   | $ | (6,065 | ) |
| ***Recognized                  as:***                         |   |                                                                                                                             |        |                                                                                                                                     |   |   |   |   |   |   |   |   |   |
|                    Pension liability                     |   | **$**                                                                                                                            | **(12,091** | **)**                                                                                                                                    | **$**  | **(9,227** | **)** |   | - |   | $ | (7,589 | ) |
|                     Prepaid pension asset                |   |                                                                                                                             | **-**       |                                                                                                                                     |   | **-** |   | $ | 15,271 |   |   | - |   |
|                    Accumulated other comprehensive loss  |   |                                                                                                                             | **-**       |                                                                                                                                     |   | **-** |   |   | - |   | $ | 1,524 |   |

*(a)        No longer applicable upon adoption of SFAS No. 158.*

*Employers’        Accounting for Defined Benefit Pension and Other Postretirement Plans - an        amendment of FASB Statements No. 87, 88, 106 and 132(R)*

|                                                   |   |     |     |   |   |
|--------------------------------------------------------|--------|----------|----------|--------|--------|
|                                                   |   | **2006** |     | 2005   |   |
| Discount                  rate                         |   |     | **5.75** | **%**  |   | 5.50 | % |
| Rate                  of future compensation increases |   |     | **3.58** |   |   | 3.58 |   |

----

|                                                 |   |                                                                                                     |       |                                                                                           |   |                                                                                                       |   |
|------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------|------------|------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------|--------|
|                                                 |   | **                               2006** |       |                               2005 |   |                                 2004 |   |
| *(in                  thousands)*                    |   | Qualified                                                                                                |       | Nonqualified                                                                                   |   | Qualified                                                                                                  |   | Nonqualified |   | Qualified |   | Nonqualified |   |
| Service                  cost for benefits in period |   | **$**                                                                                                    | **7,597**  |                                                                                           | **$**  | **391**                                                                                                    |   | $ | 6,926 |   | $ | 395 |   | $ | 6,511 |   | $ | 371 |   |
| Interest                  cost on benefit obligation |   |                                                                                                     | **7,774**  |                                                                                           |   | **474**                                                                                                    |   |   | 7,208 |   |   | 415 |   |   | 6,556 |   |   | 336 |   |
| Expected                  return on plan assets      |   |                                                                                                     | **(9,838** | **)**                                                                                          |   | **-**                                                                                                      |   |   | (8,352 | ) |   | - |   |   | (8,026 | ) |   | - |   |
|                    Amortization of:             |   |                                                                                                     |       |                                                                                           |   |                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    Net actuarial loss           |   |                                                                                                     | **1,763**  |                                                                                           |   | **227**                                                                                                    |   |   | 920 |   |   | 181 |   |   | 432 |   |   | 98 |   |
|                    Prior service cost (credit)  |   |                                                                                                     | **(107**   | **)**                                                                                          |   | **(9**                                                                                                     | **)**  |   | (108 | ) |   | (9 | ) |   | (108 | ) |   | (19 | ) |
|                    Transition obligation        |   |                                                                                                     | **-**      |                                                                                           |   | **53**                                                                                                     |   |   | - |   |   | 57 |   |   | - |   |   | 57 |   |
| Net                  pension expense                 |   | **$**                                                                                                    | **7,189**  |                                                                                           | **$**  | **1,136**                                                                                                  |   | $ | 6,594 |   | $ | 1,039 |   | $ | 5,365 |   | $ | 843 |   |

|                                                      |   |     |     |   |   |   |   |
|-----------------------------------------------------------|--------|----------|----------|--------|--------|--------|--------|
|                                                      |   | **2006** |     | 2005   |   | 2004   |   |
| Discount                  rate                            |   |     | **5.50** | **%**  |   | 5.75   | %      |   | 6.00 | % |
| Rate                  of future compensation increases    |   |     | **3.58** |   |   | 4.00   |   |   | 4.00 |   |
| Expected                  long-term return on plan assets |   |     | **8.00** |   |   | 8.00   |   |   | 8.00 |   |

|                                                             |   |                                                                                                                                                                                                                                                  |    |                |         |                     |              |
|------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|---------------------|--------------|--------------------------|-------------------|
|                                                             |   |                                                                                                                                                                                                                                                  |    | Long-range          |         |                     |
|                                                             |   |                                                      Actual Allocation |    | Average   | Policy  |
|                                                             |   | **2006**                                                                                                                                                                                                                                              |    | 2005                |         | Target    |  Range  |
| Equity                  securities                               |   |                                                                                                                                                                                                                                                  | **73**  | **%**               |         | 69                       | %                 |   | 60 | % |   | 40-70 | % |
| Corporate                  debt securities                       |   |                                                                                                                                                                                                                                                  | **11**  |                |         | 17                       |              |   |   |   |   |   |   |
| U.                  S. Treasury and government agency securities |   |                                                                                                                                                                                                                                                  | **14**  |                |         | 12                       |              |   |   |   |   |   |   |
|                    Total debt securities                    |   |                                                                                                                                                                                                                                                  | **25**  |                |         | 29                       |              |   | 40 |   |   | 30-60 |   |
| Cash                  investments                                |   |                                                                                                                                                                                                                                                  | **2**   |                |         | 2                        |              |   |  |   |   | 0-20 |   |
|                    Total                                    |   |                                                                                                                                                                                                                                                  | **100** | **%**               |         | 100                      | %                 |   |   |   |   |   |   |

----

***Health        and Welfare Plans***

|                                                               |   |     |        |    |   |
|--------------------------------------------------------------------|--------|----------|-------------|---------|--------|
| *(in                  thousands)*                                  |   | **2006** |        | 2005    |   |
| ***Changes                  in benefit obligation***               |   |     |        |    |   |
| Benefit                  obligation, beginning of year             |   | **$**    | **20,150**  |    | $      | 15,697 |   |
| Service                  cost for benefits                         |   |     | **1,784**   |    |   | 1,437 |   |
| Interest                  cost on benefit obligation               |   |     | **1,057**   |    |   | 862 |   |
| Participant                  contributions                         |   |     | **671**     |    |   | 617 |   |
| Net                  actuarial loss                                |   |     | **4,903**   |    |   | 2,905 |   |
| Benefits                  paid                                     |   |     | **(1,437**  | **)**   |   | (1,368 | ) |
| Benefit                  obligation, end of year                   |   |     | **27,128**  |    |   | 20,150 |   |
| ***Changes                  in plan assets***                      |   |     |        |    |   |   |   |
| Plan                  assets, beginning of year                    |   |     | **-**       |    |   | **-** |   |
| Employer                  contributions                            |   |     | **766**     |    |   | 751 |   |
| Participant                  contributions                         |   |     | **671**     |    |   | 617 |   |
| Benefits                  paid                                     |   |     | **(1,437**  | **)**   |   | (1,368 | ) |
| Plan                  assets, end of year                          |   |     | **-**       |    |   | **-** |   |
| ***Funded                  status***                               |   |     | **(27,128** | **)**   |   | (20,150 | ) |
| Unrecognized                  net actuarial loss                   |   |     | ***(a***    | ***)*** |   | 9,856 |   |
| Unrecognized                  net prior service credit             |   |     | ***(a***    | ***)*** |   | (1,583 | ) |
| ***Postretirement                  benefit liability recognized*** |   | **$**    | **(27,128** | **)**   | $      | (11,877 | ) |

*(a)        No longer applicable upon adoption of SFAS No. 158.*

----

|                                                                           |   |                                                                                                                                      |     |
|--------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|----------|
|                                                                           |   |                                    Pre- and Post-    |     |
|                                                                           |   |                                    Medicare Age Cost |     |
|                                                                           |   | **2006**                                                                                                                                  |     | 2005 |   |
| Cost                  trend rate for next year                                 |   |                                                                                                                                      | **8**    | **%** |   | 9 | % |
| Ultimate                  rate to which the cost trend rate gradually declines |   |                                                                                                                                      | **5**    |   |   | 5 |   |
| Year                  in which the ultimate trend rate is reached              |   |                                                                                                                                      | **2010** |   |   | 2010 |   |

|                                                                           |   |                         |   |                         |   |
|--------------------------------------------------------------------------------|--------|------------------------------|--------|------------------------------|--------|
| *(in                  thousands)*                                              |   | 1%                  Increase |   | 1%                  Decrease |   |
| Effect                  on total of service and interest components of expense |   | $                            | 664    |                         | $      | (539 | ) |
| Effect                  on postretirement benefit obligation                   |   |                         | 3,878  |                         |   | (3,224 | ) |

**NOTE        16**

**SHARE-BASED        COMPENSATION**

----

|                                                         |   |         |      |                              |   |
|--------------------------------------------------------------|--------|--------------|-----------|-----------------------------------|--------|
|                                                         |   |         |      | Weighted-                    |
|                                                         |   |         |      | Average                      |
|                                                         |   |         |      | Grant                  Date  |
|                                                         |   | Shares  |      | Fair                  Value  |
| Nonvested                  at December 31, 2005              |   |         | 875,685   |                              | $      | 27.81 |   |
| Granted                                                      |   |         | 599,883   |                              |   | 35.01 |   |
| Net                  change on updated performance estimates |   |         | 38,723    |                              |   | 21.94 |   |
| Vested                                                       |   |         | (282,901  | )                                 |   | 22.44 |   |
| Actual                  forfeitures                          |   |         | (13,150   | )                                 |   | 29.35 |   |
| Nonvested                  at December 31, 2006 *(a)*        |   |         | 1,218,240 |                              | $      | 32.40 |   |

*(a)*
*Total        includes 872,596 shares that could be issued with respect to performance-based        awards whose performance measurement periods were not completed by December        31,        2006. The maximum shares that potentially could be issued with respect to        these        awards total 1,134,574. Under certain levels of performance, no shares would        be        issued. *

----

|                                              |   |   |      |                            |   |
|---------------------------------------------------|--------|--------|-----------|---------------------------------|--------|
|                                              |   |   |      | Weighted-                  |
|                                              |   |   |      | Average          |
|                                              |   | Number |      | Exercise                  Price |
| Outstanding                  at December 31, 2003 |   |   | 2,953,681 |                            | $      | 20.04 |   |
|                    Options granted           |   |   | 736,238   |                            |   | 28.95 |   |
|                    Options exercised         |   |   | (666,359  | )                               |   | 18.79 |   |
|                    Options forfeited         |   |   | (11,063   | )                               |   | 25.71 |   |
| Outstanding                  at December 31, 2004 |   |   | 3,012,497 |                            |   | 22.47 |   |
|                    Options granted           |   |   | 506,325   |                            |   | 31.73 |   |
|                    Options exercised         |   |   | (591,216  | )                               |   | 20.80 |   |
|                    Options forfeited         |   |   | (19,562   | )                               |   | 28.76 |   |
| Outstanding                  at December 31, 2005 |   |   | 2,908,044 |                            |   | 24.38 |   |
|                    Options granted           |   |   | 297,300   |                            |   | 35.40 |   |
|                    Options exercised         |   |   | (379,864  | )                               |   | 21.29 |   |
|                    Options forfeited         |   |   | (8,250    | )                               |   | 30.43 |   |
| Outstanding                  at December 31, 2006 |   |   | 2,817,230 |                            | $      | 25.95 |   |
| Exercisable                  at December 31, 2006 |   |   | 2,578,430 |                            | $      | 25.07 |   |

----

|                                       |      |                                    |                                                               |                                          |
|--------------------------------------------|-----------|-----------------------------------------|--------------------------------------------------------------------|-----------------------------------------------|
| *(dollars                  in thousands,*  |      | Weighted-                               |                                                               |                                          |
| *except                  per share data)*  |      | Average                            | Weighted-                                                | Aggregate                                     |
|                                       |      | Years                  to     | Average                                             |                    Intrinsic   |
| Range                  of Exercise Prices  | Number    | Expiration                              | Exercise                  Price                                    | Value                          |
| ***Options                  Exercisable*** |      |                                    |                                                               |                                          |
| $15.31-$18.86                              | 540,633   | 3.2                      |                      $17.85     |                                          |
| $20.52-$24.44                              | 890,989   | 5.1                 |                      22.60      |                                          |
| $28.86-$29.83                              | 625,183   | 7.4                 | 28.95                                          |                                          |
| $31.59-$35.37                              | 521,625   | 8.5                 | 32.13                                          |                                     |
| $15.31-$35.37                              | 2,578,430 | 6.0                 | $25.07                                         | $19,627                                       |
| ***Options                  Outstanding*** |      |                                    |                                                               |                                          |
| $15.31-$35.41                              | 2,817,230 | 6.3                 | $25.95                                         | $19,627                                       |

|                                                 |                                                           Years Ended December 31 |
|------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *(in                  thousands)*                    | 2006                                                                                                                                                                                                                                                                                      | 2005 | 2004 |
| Proceeds                  from option exercises      | $7,323                                                                                                                                                                                                                                                                                    | $11,767 | $11,943 |
| Intrinsic                  value of option exercised | 5,068                                                                                                                                                                                                                                                                                     | 5,983 | 6,353 |
| Tax                  benefit realized                | 1,503                                                                                                                                                                                                                                                                                     | 1,738 | 1,937 |

----

|                                                                                                                                                         |   |   |    |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|
| *(in                  thousands, except per share data)*                                                                                                     |   | 2005   |    | 2004   |   |
| Net                  income                                                                                                                                  |   | $      | 102,349 |   | $      | 97,137 |   |
| Share-based                  compensation expense included in reported net income,                   net of related tax effects                         |   |   | 6,091   |   |   | 5,764 |   |
| Share-based                  compensation expense determined under fair value-based                   method for all awards, net of related tax effects |   |   | (7,696  | )      |   | (8,267 | ) |
| Pro                  forma net income                                                                                                                        |   | $      | 100,744 |   | $      | 94,634 |   |
| Earnings                  per share:                                                                                                                         |   |   |    |   |   |   |   |
|                    Basic - as reported                                                                                                                  |   | $      | 1.65    |   | $      | 1.59 |   |
|                    Basic - pro forma                                                                                                                    |   |   | 1.62    |   |   | 1.55 |   |
|                    Diluted - as reported                                                                                                                |   |   | 1.63    |   |   | 1.56 |   |
|                    Diluted - pro forma                                                                                                                  |   |   | 1.60    |   |   | 1.52 |   |

|                                                                       |   |   |   |   |   |   |   |
|----------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                                                       |   | 2006   |   | 2005   |   | 2004   |   |
| Weighted-average                  expected annualized volatility           |   |   | 22.85  | %      |   | 22.97  | %      |   | 24.97 | % |
| Weighted-average                  option life (in years)                   |   |   | 5.40   |   |   | 5.60   |   |   | 6.90 |   |
| Expected                  annual dividend yield                            |   |   | 3.25   | %      |   | 3.14   | %      |   | 3.23 | % |
| Weighted-average                  risk-free interest rate                  |   |   | 5.14   | %      |   | 3.87   | %      |   | 4.44 | % |
| Weighted-average                  grant date fair value of options awarded |   | $      | 7.40   |   | $      | 6.09   |   | $ | 6.64 |   |

**NOTE        17**

**REGULATORY        MATTERS**

***Regulatory        Capital Requirements***

----

|                                                                                                                                          |   |                        |    |   |   |         |             |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------|---------|--------|--------|--------------|------------------|
| *(dollars                  in thousands)*                                                                                                     |   | Actual                                                                                                                               |    |   |   |         |             |                     Well-          |
| **December                  31, 2006**                                                                                                        |   | Amount                                                                                                                               |    | Ratio  |   | Minimum*(a)* | Capitalized*(b)* |
| Leverage                  (Tier 1 Capital to Average Assets):                                                                                 |   |                                                                                                                                 |    |   |   |         |             |   |   |
|                    Company                                                                                                               |   | $                                                                                                                                    | 853,774 |   |   | 8.76         | %                | $ | 389,706 |   |   | *(c* | *)* |
|                    Bank                                                                                                                  |   |                                                                                                                                 | 775,536 |   |   | 7.98         |             |   | 388,964 |   | $ | 486,204 |   |
| Tier                  1 Capital (to Risk-Weighted Assets):                                                                                    |   |                                                                                                                                 |         |   |   |         |             |   |   |   |   |   |   |
|                    Company                                                                                                               |   |                                                                                                                                 | 853,774 |   |   | 10.24        |             |   | 333,637 |   |   | *(c* | *)* |
|                    Bank                                                                                                                  |   |                                                                                                                                 | 775,536 |   |   | 9.32         |             |   | 332,857 |   |   | 499,285 |   |
| Total                  Capital (to Risk-Weighted Assets):                                                                                     |   |                                                                                                                                 |    |   |   |         |             |   |   |   |   |   |   |
|                    Company                                                                                                               |   |                                                                                                                                 | 931,601 |   |   | 11.17        |             |   | 667,274 |   |   | *(c* | *)* |
|                    Bank                                                                                                                  |   |                                                                                                                                 | 853,292 |   |   | 10.25        |             |   | 665,714 |   |   | 832,142 |   |
| December                31, 2005                                                                                                              |   |                                                                                                                                 |    |   |   |         |             |   |   |   |   |   |   |
| Leverage                  (Tier 1 Capital to Average Assets):                                                                                 |   |                                                                                                                                 |    |   |   |         |             |   |   |   |   |   |   |
|                    Company                                                                                                               |   | $                                                                                                                                    | 765,881 |   |   | 8.21         | %                | $ | 373,156 |   |   | *(c* | *)* |
|                    Bank                                                                                                                  |   |                                                                                                                                 | 687,047 |   |   | 7.38         |             |   | 372,511 |   | $ | 465,639 |   |
| Tier                  1 Capital (to Risk-Weighted Assets):                                                                                    |   |                                                                                                                                 |         |   |   |         |             |   |   |   |   |   |   |
|                    Company                                                                                                               |   |                                                                                                                                 | 765,881 |   |   | 9.89         |             |   | 309,842 |   |   | *(c* | *)* |
|                    Bank                                                                                                                  |   |                                                                                                                                 | 687,047 |   |   | 8.89         |             |   | 309,219 |   |   | 463,828 |   |
| Total                  Capital (to Risk-Weighted Assets):                                                                                     |   |                                                                                                                                 |    |   |   |         |             |   |   |   |   |   |   |
|                    Company                                                                                                               |   |                                                                                                                                 | 856,489 |   |   | 11.06        |             |   | 619,684 |   |   | *(c* | *)* |
|                    Bank                                                                                                                  |   |                                                                                                                                 | 777,655 |   |   | 10.06        |             |   | 618,437 |   |   | 773,047 |   |
| *(a)                  Minimum capital required for capital adequacy purposes.*                                                                |
| *(b)                  Capital required for well-capitalized status under regulatory framework                  for prompt corrective action.* |
| *(c)                  Not applicable.*                                                                                                        |

***Other        Regulatory Matters***

----

**NOTE        18**

**OFF-BALANCE-SHEET        FINANCIAL INSTRUMENTS**

|                                                   |                                                           December 31 |
|--------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *(in                  thousands)*                      | **2006**                                                                                                                                                                                                                                                                      | 2005 |
| Loan                  commitments - revolving          | **$2,261,861**                                                                                                                                                                                                                                                                | $1,834,415 |
| Loan                  commitments - nonrevolving       | **471,264**                                                                                                                                                                                                                                                                   | 593,667 |
| Credit                  card and personal credit lines | **528,276**                                                                                                                                                                                                                                                                   | 507,733 |
| Standby                  and other letters of credit   | **385,478**                                                                                                                                                                                                                                                                   | 365,582 |

----

**NOTE        19**

**ESTIMATED        FAIR VALUE OF FINANCIAL INSTRUMENTS**

*Cash,        federal funds sold and short-term investments*

*Investment        in securities*

*Loans*

*Deposits        *

*Short-term        and other borrowings*

*Off-balance-sheet        financial instruments*

|                                                    | **                                               December 31, 2006** |                                               December 31, 2005 |
|---------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                    | Carrying                                                                                                                                                                                                              | Fair                                                                                                                                                                                              | Carrying | Fair   |
| *(in                  thousands)*                       | Amount                                                                                                                                                                                                                | Value                                                                                                                                                                                                       | Amount | Value |
| ASSETS:                                                 |                                                                                                                                                                                                                  |                                                                                                                                                                                                        |   |   |
|                    Cash and short-term investments | **$                  632,244**                                                                                                                                                                                        | **$                  632,244**                                                                                                                                                                              | $1,360,585 | $1,360,585 |
|                    Investment securities           | **1,886,093**                                                                                                                                                                                                         | **1,886,306**                                                                                                                                                                                               | 1,641,451 | 1,641,790 |
|                    Loans held for sale             | **26,966**                                                                                                                                                                                                            | **27,380**                                                                                                                                                                                                  | 46,678 | 47,400 |
|                    Loans, net                      | **6,974,489**                                                                                                                                                                                                         | **6,926,462**                                                                                                                                                                                               | 6,470,569 | 6,440,913 |
| LIABILITIES:                                            |                                                                                                                                                                                                                  |                                                                                                                                                                                                        |   |   |
|                    Deposits                        | **8,433,308**                                                                                                                                                                                                         | **8,432,291**                                                                                                                                                                                               | 8,604,836 | 8,601,425 |
|                    Short-term and other borrowings | **516,927**                                                                                                                                                                                                           | **517,048**                                                                                                                                                                                                 | 433,350 | 433,305 |

----

**NOTE        20**

**CONTINGENCIES**

** **

**NOTE        21**

**OTHER        NONINTEREST INCOME**

|                                                                         |   |                                        Years Ended December 31 |   |
|------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| *(in                  thousands)*                                            |   | **2006**                                                                                                                                                                |   | 2005 |   | 2004 |   |
| Credit-related                  fees                                         |   | $                                                                                                                                                                       | 5,307  |   | $ | 5,029 |   | $ | 3,923 |   |
| ATM                  fees                                                    |   |                                                                                                                                                                    | 5,154  |   |   | 4,085 |   |   | 4,497 |   |
| Investment                  services income                                  |   |                                                                                                                                                                    | 4,994  |   |   | 3,655 |   |   | 3,508 |   |
| Other                  fees and charges                                      |   |                                                                                                                                                                    | 4,294  |   |   | 3,745 |   |   | 3,125 |   |
| Other                  operating income                                      |   |                                                                                                                                                                    | 3,418  |   |   | 4,536 |   |   | 3,880 |   |
| Net                  gains on sales and other revenue from foreclosed assets |   |                                                                                                                                                                    | 2,102  |   |   | 2,692 |   |   | 1,378 |   |
| Net                  gains (losses) on disposals of surplus property         |   |                                                                                                                                                                    | (57    | ) |   | 1,369 |   |   | 793 |   |
|                       Total                              |   | $                                                                                                                                                                       | 25,212 |   | $ | 25,111 |   | $ | 21,104 |   |

**NOTE        22**

**OTHER        NONINTEREST EXPENSE**

|                                                    |   |                                                        Years Ended December 31 |   |
|---------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| *(in                  thousands)*                       |   | **2006**                                                                                                                                                                                                                                                                |   | 2005 |   | 2004 |   |
| Security                  and other outsourced services |   | $                                                                                                                                                                                                                                                                       | 14,755 |   | $ | 10,493 |   | $ | 9,045 |   |
| Advertising                  and promotion              |   |                                                                                                                                                                                                                                                                    | 6,999  |   |   | 4,436 |   |   | 5,675 |   |
| Operating                  supplies                     |   |                                                                                                                                                                                                                                                                    | 4,419  |   |   | 3,853 |   |   | 3,727 |   |
| Bank                  card processing services          |   |                                                                                                                                                                                                                                                                    | 3,508  |   |   | 3,036 |   |   | 2,612 |   |
| Deposit                  insurance and regulatory fees  |   |                                                                                                                                                                                                                                                                    | 2,494  |   |   | 2,160 |   |   | 2,015 |   |
| Miscellaneous                  operating losses         |   |                                                                                                                                                                                                                                                                    | 8,449  |   |   | 6,044 |   |   | 3,971 |   |
| Other                  operating expense                |   |                                                                                                                                                                                                                                                                    | 25,050 |   |   | 19,348 |   |   | 17,837 |   |
|                       Total         |   | $                                                                                                                                                                                                                                                                       | 65,674 |   | $ | 49,370 |   | $ | 44,882 |   |

----

**NOTE        23**

**INCOME        TAXES**

|                                                                                                                                            |   |                           Years                  Ended December 31 |       |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
| *(in                  thousands)*                                                                                                               |   | **2006**                                                                                                                                                                                             |       | 2005 |   | 2004 |   |
| Included                  in net income                                                                                                         |   |                                                                                                                                                                                                 |       |   |   |   |   |   |   |   |
|                    Current                                                                                                                 |   |                                                                                                                                                                                                 |       |   |   |   |   |   |   |   |
|                       Federal                                                                                               |   | **$**                                                                                                                                                                                                | **68,799** |   | $ | 52,538 |   | $ | 45,560 |   |
|                       State                                                                                                 |   |                                                                                                                                                                                                 | **2,366**  |   |   | 2,084 |   |   | 1,037 |   |
|                         Total current                                                                             |   |                                                                                                                                                                                                 | **71,165** |   |   | 54,622 |   |   | 46,597 |   |
|                    Deferred                                                                                                                |   |                                                                                                                                                                                                 |            |   |   |  |   |   |   |   |
|                       Federal                                                                                               |   |                                                                                                                                                                                                 | **(2,121** | **)** |   | (11,030 | ) |   | (3,238 | ) |
|                       State                                                                                                 |   |                                                                                                                                                                                                 | **120**    |   |   | (585 | ) |   | (161 | ) |
|                         Total deferred                                                                            |   |                                                                                                                                                                                                 | **(2,001** | **)** |   | (11,615 | ) |   | (3,399 | ) |
|                         Total included in net income                                                              |   | **$**                                                                                                                                                                                                | **69,164** |   | $ | 43,007 |   | $ | 43,198 |   |
| Included                  in shareholders’ equity                                                                                         |   |                                                                                                                                                                                                 |       |   |   |   |   |   |   |   |
|                    Deferred tax related to the change in the                      net unrealized loss on securities    |   | **$**                                                                                                                                                                                                | **1,154**  |   | $ | (9,298 | ) | $ | (6,139 | ) |
|                    Deferred tax related to the change in the                      additional minimum pension liability |   |                                                                                                                                                                                                 | **46**     |   |   | (534 | ) |   | - |   |
|                    Current tax related to nonqualified stock options                      and restricted stock         |   |                                                                                                                                                                                                 | **(2,582** | **)** |   | (2,107 | ) |   | (2,311 | ) |
|                         Total included in shareholders’ equity                                              |   | **$**                                                                                                                                                                                                | **(1,382** | **)** | $ | (11,939 | ) | $ | (8,450 | ) |

|                                                             |   |                                                    Years Ended December 31 |      |
|------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|
| *(in                  percentages)*                              |   | **2006**                                                                                                                                                                                                                                        |      | 2005 |   | 2004 |   |
| Federal                  income tax rate                         |   |                                                                                                                                                                                                                                            | **35.00** | **%** |   | 35.00 | % |   | 35.00 | % |
| Increase                  (decrease) resulting from              |   |                                                                                                                                                                                                                                            |      |   |   |   |   |   |   |   |
|                    Tax exempt income                        |   |                                                                                                                                                                                                                                            | **(1.69** | **)** |   | (2.50 | ) |   | (2.77 | ) |
|                    Low income housing credits               |   |                                                                                                                                                                                                                                            | **(1.10** | **)** |   | (1.64 | ) |   | (1.37 | ) |
|                    Disaster-relief credit                   |   |                                                                                                                                                                                                                                            | **(.33**  | **)** |   | (1.31 | ) |   | - |   |
|                    State income tax and miscellaneous items |   |                                                                                                                                                                                                                                            | **.47**   |   |   | .04 |   |   | (.08 | ) |
| Effective                  tax rate                              |   |                                                                                                                                                                                                                                            | **32.35** | **%** |   | 29.59 | % |   | 30.78 | % |

----

|                                                                                                 |                                                     December 31 |
|------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *(in                  thousands)*                                                                    | **2006**                                                                                                                                                                                                                                  | 2005 |
| Deferred                  tax assets**:**                                                            |                                                                                                                                                                                                                                      |   |
|                    Allowance for credit losses and losses on foreclosed                  assets | **$26,970**                                                                                                                                                                                                                               | $31,414 |
|                    Employee compensation and benefits                                           | **28,363**                                                                                                                                                                                                                                | 11,307 |
|                    Net unrealized loss on securities available for sale                         | **9,740**                                                                                                                                                                                                                                 | 10,894 |
|                    Unrecognized interest income                                                 | **5,124**                                                                                                                                                                                                                                 | 3,716 |
|                    Other                                                                        | **6,421**                                                                                                                                                                                                                                 | 6,052 |
|                        Total deferred tax assets                            | **76,618**                                                                                                                                                                                                                                | 63,383 |
| Deferred                  tax liabilities:                                                           |                                                                                                                                                                                                                                      |   |
|                    Accumulated depreciation and amortization                                    | **8,316**                                                                                                                                                                                                                                 | 7,283 |
|                    Other                                                                        | **1,388**                                                                                                                                                                                                                                 | 3,035 |
|                       Total deferred tax liabilities                             | **9,704**                                                                                                                                                                                                                                 | 10,318 |
|                       Net deferred tax asset                                     | **$66,914**                                                                                                                                                                                                                               | $53,065 |

**NOTE        24**

**EARNINGS        PER SHARE**

|                                                                                                                                        |                                                       Years Ended December 31 |
|---------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *(dollars                  in thousands, except per share data)*                                                                            | **2006**                                                                                                                                                                                                                                                          | 2005 | 2004 |
| Numerator:                                                                                                                                  |                                                                                                                                                                                                                                                              |   |   |
|                    Net income                                                                                                          | **$144,645**                                                                                                                                                                                                                                                      | $102,349 | $97,137 |
|                    Effect of dilutive securities                                                                                       | **-**                                                                                                                                                                                                                                                             | - | - |
|                    Numerator for diluted earnings per share                                                                            | **$144,645**                                                                                                                                                                                                                                                      | $102,349 | $97,137 |
| Denominator:                                                                                                                                |                                                                                                                                                                                                                                                              |   |   |
|                    Weighted-average shares outstanding                                                                                 | **64,687,363**                                                                                                                                                                                                                                                    | 62,008,004 | 61,122,581 |
|                    Effect of potentially dilutive securities                      and contingently issuable shares | **1,165,786**                                                                                                                                                                                                                                                     | 945,289 | 960,462 |
|                    Denominator for diluted earnings per share                                                                          | **65,853,149**                                                                                                                                                                                                                                                    | 62,953,293 | 62,083,043 |
| Earnings                  per share:                                                                                                        |                                                                                                                                                                                                                                                              |   |   |
|                    Basic                                                                                                               | **$2.24**                                                                                                                                                                                                                                                         | $1.65 | $1.59 |
|                    Diluted                                                                                                             | **2.20**                                                                                                                                                                                                                                                          | 1.63 | 1.56 |
| Antidilutive                  stock options                                                                                                 | **137,090**                                                                                                                                                                                                                                                       | 425,259 | 202,269 |

----

**NOTE        25**

**PARENT        COMPANY FINANCIAL STATEMENTS**

| **BALANCE                  SHEETS**                                                        |   |                                                    December 31 |          |
|--------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|
| *(in                  thousands)*                                                          |   | **2006**                                                                                                                                                                                                                            |          | 2005 |   |
| **ASSETS**                                                                                 |   |                                                                                                                                                                                                                                |          |   |   |
|                    Investment in bank subsidiary                                      |   | **$**                                                                                                                                                                                                                               | **969,723**   |   | $ | 817,209 |   |
|                    Demand note receivable - bank subsidiary                           |   |                                                                                                                                                                                                                                | **86,492**    |   |   | 84,850 |   |
|                    Investments in nonbank subsidiaries                                |   |                                                                                                                                                                                                                                | **3,054**     |   |   | 3,065 |   |
|                    Notes receivable - nonbank subsidiaries                            |   |                                                                                                                                                                                                                                | **82,934**    |   |   | 82,434 |   |
|                    Other assets                                                       |   |                                                                                                                                                                                                                                | **18,077**    |   |   | 15,057 |   |
|                       Total assets                                     |   | **$**                                                                                                                                                                                                                               | **1,160,280** |   | $ | 1,002,615 |   |
| **LIABILITIES**                                                                            |   |                                                                                                                                                                                                                                |          |   |   |   |   |
|                    Subordinated debentures                                            |   | **$**                                                                                                                                                                                                                               | **16,818**    |   | $ | 17,212 |   |
|                    Dividends payable                                                  |   |                                                                                                                                                                                                                                | **14,704**    |   |   | 12,159 |   |
|                    Other liabilities                                                  |   |                                                                                                                                                                                                                                | **15,796**    |   |   | 12,201 |   |
|                       Total liabilities                                |   |                                                                                                                                                                                                                                | **47,318**    |   |   | 41,572 |   |
| **SHAREHOLDERS’                  EQUITY**                                            |   |                                                                                                                                                                                                                                | **1,112,962** |   |   | 961,043 |   |
|                       Total liabilities and shareholders’ equity |   | **$**                                                                                                                                                                                                                               | **1,160,280** |   | $ | 1,002,615 |   |

| **STATEMENTS                  OF INCOME**                                  |   |                                            Years Ended December 31 |        |
|----------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------|
| *(in                  thousands)*                                          |   | **2006**                                                                                                                                                                                        |        | 2005 |   | 2004 |   |
| Dividend                  income from bank subsidiary                      |   | **$  95,000**                                                                                                                                                                         |        | $  65,000 |   | $ 77,000 |   |
| Equity                  in undistributed earnings (losses) of subsidiaries |   |                                                                                                                                                                                            |        |   |   |   |   |
|                    Bank                                               |   |                                                                                                                                                                                            | **45,981**  |   |   | 32,510 |   |   | 14,891 |   |
|                    Nonbanks                                           |   |                                                                                                                                                                                            | **(11**     | **)** |   | 102 |   |   | 124 |   |
| Other                  income, net of expenses                             |   |                                                                                                                                                                                            | **3,675**   |   |   | 4,737 |   |   | 5,122 |   |
| Net                  income                                                |   | **$**                                                                                                                                                                                           | **144,645** |   | $ | 102,349 |   | $ | 97,137 |   |

----

| **STATEMENTS                  OF CASH FLOWS**                                                                             |   |                                            Years Ended December 31 |        |
|---------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------|
| *(in                  thousands)*                                                                                         |   | **2006**                                                                                                                                                                                        |        | 2005 |   | 2004 |   |
| **OPERATING                  ACTIVITIES**                                                                                 |   |                                                                                                                                                                                            |        |   |   |   |   |
| Net                  income                                                                                               |   | **$**                                                                                                                                                                                           | **144,645** |   | $ | 102,349 |   | $ | 97,137 |   |
| Adjustments                  to reconcile net income to net cash provided                   by operating activities: |   |                                                                                                                                                                                            |        |   |   |   |   |   |   |   |
|                    Equity in undistributed earnings of subsidiaries                                                  |   |                                                                                                                                                                                            | **(45,970** | **)** |   | (32,612 | ) |   | (15,015 | ) |
|                    Other, net                                                                                        |   |                                                                                                                                                                                            | **(761**    | **)** |   | 2,080 |   |   | 1,187 |   |
|                       Net cash provided by operating activities                                       |   |                                                                                                                                                                                            | **97,914**  |   |   | 71,817 |   |   | 83,309 |   |
| **INVESTING                  ACTIVITIES**                                                                                 |   |                                                                                                                                                                                            |        |   |   |   |   |   |   |   |
|                    Investments in subsidiaries                                                                       |   |                                                                                                                                                                                            | **(41,167** | **)** |   | (55,458 | ) |   | (22,851 | ) |
|                    Loans to nonbank subsidiaries, net of repayments                                                  |   |                                                                                                                                                                                            | **(500**    | **)** |   | (660 | ) |   | (800 | ) |
|                       Net cash used in investing activities                                           |   |                                                                                                                                                                                            | **(41,667** | **)** |   | (56,118 | ) |   | (23,651 | ) |
| **FINANCING                  ACTIVITIES**                                                                                 |   |                                                                                                                                                                                            |        |   |   |   |   |   |   |   |
|                    Cash dividends                                                                                    |   |                                                                                                                                                                                            | **(68,111** | **)** |   | (61,150 | ) |   | (57,061 | ) |
|                    Proceeds from issuance of stock                                                                   |   |                                                                                                                                                                                            | **10,113**  |   |   | 14,185 |   |   | 13,995 |   |
|                    Purchases of stock                                                                                |   |                                                                                                                                                                                            | **(3,165**  | **)** |   | (52,924 | ) |   | (29,681 | ) |
|                    Other, net                                                                                        |   |                                                                                                                                                                                            | **6,274**   |   |   | - |   |   | (1,471 | ) |
|                       Net cash used in financing activities                                           |   |                                                                                                                                                                                            | **(54,889** | **)** |   | (99,889 | ) |   | (74,218 | ) |
|                    Increase (decrease) in cash and cash equivalents                                                  |   |                                                                                                                                                                                            | **1,358**   |   |   | (84,190 | ) |   | (14,560 | ) |
|                    Cash and cash equivalents at beginning of year                                                    |   |                                                                                                                                                                                            | **85,610**  |   |   | 169,800 |   |   | 184,360 |   |
|                    Cash and cash equivalents at end of year                                                          |   | **$**                                                                                                                                                                                           | **86,968**  |   | $ | 85,610 |   | $ | 169,800 |   |

----

**Item        9: CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON        ACCOUNTING AND FINANCIAL DISCLOSURE**

**Item        9A: CONTROLS AND PROCEDURES**

***Evaluation        of Disclosure Controls and Procedures.***

***Management’s        Report on Internal Control over Financial Reporting and Report of Independent        Registered Public Accounting Firm.***

***Changes        in Internal Control over Financial Reporting.***

**Item        9B: OTHER INFORMATION**

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**PART      III**

**Item      10: DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE      GOVERNANCE**

| ·   | The                section entitled “The Board of                Directors.” |
|--------------------|------------------------------------------------------------------------------------------|

| ·   | The                first paragraph of the subsection entitled “Audit Committee” of the                section entitled “Board of Directors and Its                Committees.” |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                section entitled “Section 16(a)                Beneficial Ownership Reporting                Compliance.” |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

**Item      11: EXECUTIVE COMPENSATION**

| ·   | The                section entitled “Executive                Compensation.” |
|--------------------|------------------------------------------------------------------------------------------|

| ·   | The                first paragraph of the subsection entitled “Compensation of Directors” of                the section entitled “Board of Directors and Its                Committees.” |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                section entitled “Compensation and Human Resources Committee Interlocks                and Insider Participation.” |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                section entitled “Compensation Discussion and                Analysis.” |
|--------------------|--------------------------------------------------------------------------------------------------------|

| ·   | The                section entitled “Compensation and Human Resources Committee                Report.” |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

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**Item        12: SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND        MANAGEMENT**

**AND        RELATED STOCKHOLDER MATTERS**

**Equity        Compensation Plan Information**

|                                                                                                       | (a)                                                                                                                                            | (b)                                                                                          | (c)                                                                                                                                                                                            |
|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Plan                  category**                                                                         | Number                  of securities to be issued upon exercise of outstanding options,                  warrants                  and rights | Weighted-average                  exercise price of outstanding options, warrants and rights | Number                  of securities remaining available for future issuance under equity                  compensation plans (excluding securities reflected in column                  (a)) |
| Equity compensation plans                      approved by shareholders      | 2,906,330                  (1)                                                                                                                 | $25.95                  (2)                                                                  | 1,592,089                  (3)                                                                                                                                                                 |
| Equity                  compensation plans                     not approved by shareholders | ---                                                                                                                                            | ---                                                                                          | ---                                                                                                                                                                                            |
|                       Total                                                            | 2,906,330                                                                                                                       | $25.95                                                                                       | 1,592,089                                                                                                                                                                       |

| (1) | The                  total includes an aggregate of 2,440,480 shares that can be issued                  on the                  exercise of options held by employees. 1,210,108 shares are subject                  to                  options granted under the 2004 Long-Term Incentive Plan (2004 LTIP),                  and                  1,230,372 shares are subject to options granted under the 1997                  Long-Term                  Incentive Plan (1997 LTIP). The total also includes an aggregate                  of                  376,750 shares that can be issued on the exercise of options held                  by                  nonemployee directors of the Company. These options were granted                  under the                  Directors’ Compensation Plan, as amended and                  restated. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Also                  included in the total are 89,107 common stock equivalent units                  held in                  deferred compensation accounts maintained for certain of the Company’s                  directors, which must eventually be distributed as common shares                  of the                  Company. As allowed under the Directors’ Compensation Plan, certain                  nonemployee directors have deferred receipt of annual stock awards                  and                  fees, and the value of these deferrals has been credited to a bookkeeping                  account maintained for each director. The value of an account is                  indexed                  to the performance of one or more investment options specified                  in the                  plans. One of the investment options is equivalent units of the                  Company’s                  common stock. This option is mandatory for deferred stock awards                  and was                  extended by the Directors’ Compensation Plan to deferred compensation                  account balances maintained under a prior deferred compensation                  plan. The                  number of common stock equivalent units allocated to a director’s account                  for each deferral is based on the fair market value of the Company’s                  common stock on the deferral date. The common stock equivalent                  units are                  deemed to earn any dividends declared on the Company’s common stock, and                  additional units are allocated on the dividend payment date based                  on the                  stock’s fair market value. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Represents                  the weighted-average exercise price of options granted under the                  2004                  LTIP, the 1997 LTIP, and the Directors’ Compensation Plan. It does not                  include the per share price of common stock equivalent units held                  in                  deferred compensation accounts for the benefit of nonemployee directors.                  These units are allocated to accounts based on the fair market                  value of                  the Company’s common stock on the date of each account                  transaction. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (3) | Under                  the 2004 LTIP, the Company is authorized to make awards with respect                  to a                  maximum of 3,900,000 of its common shares, plus any authorized                  but unused                  shares from the 1997 LTIP. The 2004 LTIP provides for the award                  of                  options, stock appreciation rights, restricted stock and restricted                  stock                  units that represent common shares. Of the total shares authorized,                  the                  Company can award a maximum of 1,950,000 shares in the form of                  restricted                  stock or restricted stock units. At December 31, 2006, the Company                  could                  make future awards under the 2004 LTIP with respect to 1,143,413                  shares of                  its common stock. This total has been reduced by the maximum number                  of                  shares that could be issued with respect to performance-based awards                  whose                  performance measurement periods were not completed by December                  31,                  2006. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Under                  the Directors’ Compensation Plan as originally implemented, the Company is                  authorized to make awards of stock options or common stock and                  allocations                  of common stock equivalent units with respect to the lesser of                  either                  1,687,500 common shares or 3% of its issued and outstanding common                  shares,                  as determined from time to time. The Board of Directors subsequently                  amended the plan to reduce the authorized shares to no more than                  937,500.                  At December 31, 2006, the Company could make future awards or allocations                  of common stock equivalent units under the plan with respect to                  448,676                  shares of its common stock. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Item        13: CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND        DIRECTOR**
**INDEPENDENCE**

**Item        14: PRINCIPAL ACCOUNTING FEES AND        SERVICES**

----

**PART      IV**

**Item      15: EXHIBITS AND FINANCIAL STATEMENT      SCHEDULES**

|                                                                                                                                                     | Page                Number |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------|
|                                                                                                                                                     |                       |
| Summary                of Quarterly Financial Information                                                                                                | 42                         |
|                                                                                                                                                     |                       |
| Report                of Independent Registered Public Accounting Firm                                                                                   | 44                         |
|                                                                                                                                                     |                       |
| Consolidated                Balance Sheets --                  December 31, 2006 and 2005                                                      | 46                         |
|                                                                                                                                                     |                       |
| Consolidated                Statements of Income --                 Years Ended December 31, 2006, 2005 and 2004                                    | 47                         |
|                                                                                                                                                     |                       |
| Consolidated                Statements of Changes in Shareholders’ Equity—                 Years Ended December 31, 2006, 2005 and 2004 | 48                         |
|                                                                                                                                                     |                       |
| Consolidated                Statements of Cash Flows—                 Years Ended December 31, 2006, 2005 and 2004                            | 49                         |
|                                                                                                                                                     |                       |
| Notes                to Consolidated Financial Statements                                                                                                | 50                         |

**To      obtain a copy of any listed exhibit send your request to the address below.      The      copy will be furnished upon payment of a fee.**

**Mrs.      Shirley Fremin, Manager**

**Shareholder      Services**

**Whitney      Holding Corporation**

**P.      O. Box 61260**

**New      Orleans, LA 70161-1260**

**(504)      586-3627 or toll free (800) 347-7272, ext. 3627**

**E-mail:      investor.relations@whitneybank.com**

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**SIGNATURES**

|   |       WHITNEY                HOLDING CORPORATION                                                                                        |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                       (Registrant) |

| By:    | /s/                  William L. Marks      |
|--------|--------------------------------------------|
|   | William                  L. Marks          |
|   | Chairman                  of the Board and |
|   | Chief                  Executive Officer   |
|   |                                       |
|   | March                  1, 2007             |
|   | Date                                       |

| **Signature**                                                                     | **Title**                                     | **Date**                                              |
|-----------------------------------------------------------------------------------|-----------------------------------------------|-------------------------------------------------------|
|                                                                              |                                          |                                                  |   |
|                                                                              |                                          |                                                  |   |
|                                                                              |                                          |                                                  |   |
| /s/                  William L. Marks               | Chairman                  of the Board,       | March                  1, 2007                        |
|                                                                              | William                  L. Marks             | Chief                  Executive Officer and Director |   |
|                                                                              |                                          |                                                  |   |
|                                                                              |                                          |                                                  |   |
| /s/                  R. King Milling                | President                  and Director       | March                  1, 2007                        |
|                                                                              | R.                  King Milling              |                                                  |   |
|                                                                              |                                          |                                                  |   |
|                                                                              |                                          |                                                  |   |
| /s/                  Thomas L. Callicutt, Jr.       | Executive                  Vice President and | March                  1, 2007                        |
|                                                                              | Thomas                  L. Callicutt, Jr.     | Chief                  Financial Officer              |   |
|                                                                              |                                          | (Principal                  Accounting Officer)       |   |
|                                                                              |                                          |                                                  |   |
|                                                                              |                                          |                                                  |   |
| /s/                  Joel B. Bullard, Jr.           | Director                                      | March                  1, 2007                        |
|                                                                              | Joel                  B. Bullard, Jr.         |                                                  |   |
|                                                                              |                                          |                                                  |   |
|                                                                              |                                          |                                                  |   |
| /s/                  James M. Cain             | Director                                      | March                  1, 2007                        |
|                                                                              | James                  M. Cain                |                                                  |   |
|                                                                              |                                          |                                                  |   |
|                                                                              |                                          |                                                  |   |
| /s/                  Angus R. Cooper II             | Director                                      | March                  1, 2007                        |
|                                                                              | Angus                  R. Cooper II           |                                                  |   |
|                                                                              |                                          |                                                  |   |
|                                                                              |                                          |                                                  |   |
| /s/                  Richard B. Crowell             | Director                                      | March                  1, 2007                        |
|                                                                              | Richard                  B. Crowell           |                                                  |   |

----

| **Signature**                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **Title**                            | **Date**                       |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------|--------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                 |                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                 |                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                 |                           |   |
| /s/                  William A. Hines                                                                                                                                                                                                                                                                                                                                                                                                                  | Director                             | March                  1, 2007 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | William                  A. Hines    |                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                 |                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                 |                           |   |
|                                                                                | Director                             |                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | E.                  James Kock, Jr.  |                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                 |                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                 |                           |   |
| /s/                  Alfred S. Lippman                                                                                                                                                                                                                                                                                                                                                                                                            | Director                             | March                  1, 2007 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Alfred                  S. Lippman   |                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                 |                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                 |                           |   |
| /s/                  Michael L. Lomax                                                                                                                                                                                                                                                                                                                                                                                                             | Director                             | March                  1, 2007 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Michael                  L. Lomax    |                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                 |                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                 |                           |   |
| /s/                  Eric J. Nickelsen                                                                                                                                                                                                                                                                                                                                                                                                            | Director                             | March                  1, 2007 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Eric                  J. Nickelsen   |                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                 |                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                 |                           |   |
| /s/ John                  G. Phillips                                                                                                                                                                                                                                                                                                                                                                                                             | Director                             | March1,                2007    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | John                  G. Phillips    |                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                 |                           |   |
| /s/                  Kathryn M. Sullivan                                                                                                                                                                                                                                                                                                                                                                                                     | Director                             | March                  1, 2007 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Kathryn                  M. Sullivan |                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                 |                           |   |
| /s/Dean                  E. Taylor                                                                                                                                                                                                                                                                                                                                                                                                                     | Director                             | March                1, 2007   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Dean                  E. Taylor      |                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                 |                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                 |                           |   |
| /s/                  Thomas D. Westfeldt                                                                                                                                                                                                                                                                                                                                                                                                               | Director                             | March                  1, 2007 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Thomas                  D. Westfeldt |                           |   |