Wells Fargo delivered quarterly earnings on Tuesday that topped expectations.
The nation's biggest mortgage lender posted first-quarter earnings of $1.04 per share, down slightly from $1.05 a share in the year-earlier period.
Revenue rose to $21.28 billion from $20.63 billion a year ago.
Analysts expected earnings per share of 98 cents on $21.24 billion in revenue.
Shares of Wells Fargo were down slightly in premarket trading following the announcement. (Get the latest quote here.)
"There are still challenges ahead. I think the margin is still under pressure. We still see lower yields on loans," Morningstar banking analyst Dan Werner said shortly after the announcement. "I would not look for huge moves in the margin in the next couple of quarters just because the Fed is not going to move" that strongly.
Werner expects a quarter-point hike by Federal Reserve policymakers at their September meeting, and maybe a half-point by the end of the year.
"So when the Fed does finally move rates it will be helpful for all the banks because they are all asset-sensitive," he told CNBC's "Squawk Box" in an interview. "Loans and securities are going to reprice faster than those deposits initially."
Wells Fargo said mortgage applications in the pipeline rose to $44 billion as of March 31 from $26 billion at the end of December.
JPMorgan, which also reported better-than-expected results Tuesday, said net income from mortgage banking rose nearly three-fold in the first quarter.