Regional banks reported mixed second-quarter results Tuesday, highlighting big gains in lending and fee businesses but at the same time confirming growing concerns about credit quality and the impact of merger activity.

Wells Fargo & Co. said double-digit loan growth and investment gains helped offset merger-related expenses, boosting profits 12%, to $1.04 billion. Earnings per share of 63 cents matched Wall Street's expectations, but the $220 billion-asset San Francisco banking company caught market watchers off guard by disclosing that earnings growth would slow down for the remainder of the year.

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