Whitney forecasts 3Q profit below estimates

The New Orleans-based company, owner of Whitney National Bank, expects to report profit of $6 million to $8 million, or 10 cents to 12 cents per share. The bank plans to put aside $38 million to $42 million in the quarter to cover potentially bad loans and will book expenses and casualty losses between $1.5 million and $2.5 million related to Hurricanes Gustav and Ike, which hit the Gulf of Mexico in September.

On average, analysts have forecast much higher profit of 24 cents per share, according to a Thomson Reuters poll.

"While we remain hopeful that the situation currently facing the real estate and other markets will moderate soon, we cannot predict when this cycle will turn," said Chairman and Chief Executive John Hope.

Whitney, which operates Whitney National Bank in the Gulf Coast region, has agreed to buy Parish National Corp. That deal requires shareholder approval.

The company's shares fell 79 cents, or 3.6 percent, to $21.16 in afternoon trading. The stock has ranged from $13.96 to $33.02 in the past year.