Wells Fargo (WFC) reported record net income of $5.9 billion, up 14%, or $1.05 per diluted common share, for first quarter 2014, around expectations.
That's up from $5.2 billion, or $0.92 per share, for first quarter 2013, and up from $5.6 billion, or $1.00 per share, for fourth quarter 2013.
The bank reports far fewer mortgage originations and much more profit on mortgage servicing rights.
During the first quarter, residential mortgage originations were $36 billion, down from $50 billion in fourth quarter 2013 while the gain on sale margin was 1.61%, compared with 1.77% in the fourth quarter.
Net mortgage servicing rights results were $407 million, compared with $266 million in fourth quarter 2013.
"First quarter 2014 earnings were another record for our company and capital levels continued to strengthen," said CEO John Stumpf.
Total loans were $826.4 billion, up $4.2 billion from last quarter.
Growth in commercial and industrial, commercial real estate, auto and 1-4 family first mortgage more than offset the decline in junior lien mortgages and a seasonal decline in credit card loans, said the company.
“Credit performance was strong in the first quarter as losses remained at historically low levels, nonperforming assets continued to decrease and we continued to originate high quality loans,” said Chief Risk Officer Mike Loughlin.
Loughlin added nonperforming assets declined by $840 million, or 17% (annualized) from last quarter.
