Wells Fargo’s (WFC) net income increased 14%, falling in line with industry expectations; however, the lender reported significant pullbacks in mortgage originations.   

As the lending environments restricts, Wells Fargo said on its conference call that it is ready for whatever comes. “If it is not as good, we will make adjustments. We have been nimble for decades,” the bank said on the call.

But what the answer is not is acquisitions.

“We do not need to do an acquisition to continue to grow. The last was $4 to $4.5 billion, but as you know we are pretty discriminating in terms of what we want to acquire,” said the bank's CFO Timothy Sloan on the call.

It is not that acquisitions are out of the question, but executives explained that its goal is to instead help its shareholders by making its current business even better. 

And as far as competition goes, Wells Fargo is not too shaken up as business from nonbanks starts to grow.

“While we are not overly concerned about that, we have to cognizant of our competition,” Wells Fargo executives explained.

Mortgages were profitable, and it is ready to take advantage of a stronger selling season.

As a whole, CEO John Stumpf explained that Wells Fargo is optimistic as housing continues to improve.