Surging revenue from consumer lending, including auto loans and mortgages, offset credit problems from the energy sector in the second-quarter results of Regions Financial in Birmingham, Ala.

Net income at the $126 billion-asset company fell 4% to $259 million from a year earlier. Earnings per share were unchanged at 20 cents. Total revenue fell 2.4% to $1.4 billion.

Net interest income after the loan-loss provision rose 2.5% to $776 million. Total loans rose 3.5% to $82 million, propelled by growth in auto and indirect consumer loans. Regions also expanded in residential mortgages and credit cards. The net interest margin narrowed 1 basis point to 3.15%.

The provision for credit losses rose 14% to $72 million. Regions recorded $17 million of net chargeoffs in its energy loan book.

Noninterest income fell 11% to $526 million, due to $90 million of insurance money last year. Regions was reimbursed $90 million from its insurance providers a year ago to cover the cost of a lawsuit settlement.

Noninterest expense fell 2% to $915 million. Regions recorded $22 million in property-related expenses to prepare about 60 branches to be closed in the fourth quarter. Regions also recorded $1 million to cover severance for employees associated with the branches. Regions also took $3 million of legal and regulatory charges in the quarter. The efficiency ratio worsened to 65.6% from 65.4%.

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