* Expects EPS "well below" average analyst expectations

* Bank unit to record $8 million loss

* Shares fall 8.9 percent after hours

NEW YORK, April 14 (Reuters) - Raymond James Financial Inc (RJF.N: Quote, Profile, Research) said on Tuesday it expects to be "nominally profitable" in the second quarter, but warned earnings will be "well below" the 37 cents per share expected by analysts due to a $8 million loss at its banking unit.

The big U.S. brokerage said robust operating earnings should be enough to keep it in the black over the next 12 months, but noted it is difficult to forecast the impact of the recession on its loan portfolio.

Raymond James shares fell 8.9 percent to $17.37 in after hours trade.

The company expects its bank to have a reserve for loan losses of about $142 million as of March 31. Total loan loss provision expenses will be about $75 million and charge offs will be about $40 million in the quarter, Raymond James said.

It blamed "the dramatic deterioration of commercial real estate values" and the credit exposure related to borrowers who depend on consumer spending for the "abnormally high" loan loss provisions and charge offs.

The company said non-performing assets in the quarter will be about $143 million. (Reporting by Jonathan Spicer; Editing Bernard Orr)