Thank you, I will now turn the call over to Paul Reilly, CEO.Jeffrey Paul Julien Yes, this is Jeff Julien. Before Paul jumps on here, I just like to make one further statement. In this press release, and throughout our conversation here, we mentioned some non-GAAP results. We have, in the full text of the press release, done a reconciliation of the GAAP to non-GAAP results. For those of you don't have the full press release, it's available either through EDGAR on the 8-K we filed or on our own corporate website, so you can see that reconciliation if you'd like. Paul C. Reilly Great. Thanks, Jeff, and good morning, this is Paul Reilly. I want to start off saying we're actually pleased with the quarterly results, and I know it's difficult kind of following given the combination. And it's very difficult actually separating the legacy Morgan Keegan businesses and the legacy Raymond James business because we went through in the process of combining especially in ECM and in fixed income, so the numbers aren't always apples to apples. I think -- first, to put the quarter in prospect, you have to remember we've been very consistent. Our long-term goal has been to keep as much revenue as we can, is to make sure the environment for producers was a positive environment, that the transition was a positive experience, and that our cost synergies would come later. And although we did have some severance at the beginning of the quarter in ECM and in fixed income kind of mid-quarter, those costs haven't really flown through. And all the operating costs in terms of dual systems and support are still in place. We told you we would eliminate those redundancies over time, but our focus has been to keep service levels high to retain our producers. And I think you have to put that, so the cost savings will come, but there -- we've purposely not executed on those at this time. We've focused on them, we know they're coming, we know the areas, but they are to come after we get through the integration and make sure that the support levels keep very, very high.
This is also was not a positive economic environment for our businesses. If you look at the Private Client business, the S&P was down 3.3%, and our assets under administration combined were down about 1.5%, but that's in keeping with our normal Private Client Group ratio when you see the market fall. And yet, PCG had a good quarter and combine had near a high 9-ish kind of margins.The bank had a record quarter, had a strong loan growth, which hits the reserve as we book loans. And also, from our SNC exam, we did have an additional charge of about $4 million. But as you know, our policy is we always take the lower of the SNC exams for our ratings, and when the SNCs -- when we get the SNC exam that writes up loans, we don't write them up. So the bank, that's been a very solid quarter. ECM, been a tough market. You can look at our competitor's release, everyone is having a difficult time in this equity capital market environment. And if you look at our investment banking business, we had a very tough April, a reasonable May, a very good June, but July slowed back down. So if you look at Equity Capital Markets' business, our revenues were kind of flat, with additional costs from Morgan Keegan analysts and people we've brought in, which has impacted the equity capital market kind of results for the quarter. In Fixed Income, we had a reasonable quarter, but you have to remember we also had a number of factors that impacted, I think, profitability. Trading profits were down from our usual run rate because we had a flight to quality. We hedged our munis with treasuries, we used treasuries to hedge. And when it's applied to quality, it impacts our trading profits. Also, the Fixed Income business is a business that does well when there's good spreads, when interest rates are higher and there's a lot of volatility, 3 factors we didn't -- that didn't go our way in this quarter. But given that, we had good results. Maybe a little off from historic, but given the environments, especially with the treasury market phenomena, decent results. Read the rest of this transcript for free on seekingalpha.com