Raymond James posted a second-quarter profit of $68.9 million, or $0.52 a share, on sales of $872 million.

Excluding the $21 million pretax charge for acquisition-related and certain interest expenses and adjustments to shares issued for the Morgan Keegan acquisition, net income would have been $81.9 million, or $0.64 a share, essentially flat with the $80.9 million, or $0.64 a share, it pocketed in the year-ago quarter.

The firm reported quarterly records for both assets under management ($39 billion) and assets under administration ($292 billion) at quarter’s end, up 11% and 8%, respectively, over the previous quarter.

“Our businesses all performed better this quarter, especially Raymond James Bank which reported record earnings driven by a significant increase in loans and improving credit metrics,” CEO Paul Reilly said in a statement.

Its Private Client Group reported record quarterly sales of $567.8 million, a 7% improvement from the first quarter.

“We have continued to successfully recruit experienced financial advisors from other firms,” Reilly said. “The combination of growth in advisors and market improvement drove revenue growth.  However, the bottom line was impacted by a seasonal increase in compensation expenses (raises and employment taxes) and increased technology expenditures.”

“The increase in the S&P 500 during the second quarter should bode well for fee billing for our third quarter,” he added.

Reilly also said he was pleased with the firm's ongoing integration of Morgan Keegan after closing the $1.2 billion acquisition in the first quarter.

“Overall, I am delighted that the operating results were solid as we simultaneously worked on integrating Morgan Keegan, including closing on the acquisition April 2,” he said. “Our retention of people, which is key to our combination, has remained above our estimates.  We have stayed within budget and continue to meet timelines. However, there is still much to accomplish before we can claim victory.”