Wells Fargo ($40.20 0%), the largest U.S. home lender, reported a 24% rise in fourth-quarter earnings as the bank extended more credit. The shares slipped as margins narrowed and mortgage applications waned.

Originations dropped 10% to $125 billion in the quarter, and applications — a barometer of future results — slid 19%, the bank said.

Wells Fargo kept $9.7 billion in mortgages in the quarter instead of selling them, forgoing about $340 million in fee revenue. Net interest income fell 2%.