Astoria Financial in Lake Success, N.Y., topped Wall Street expectations despite a drop in revenue.
The $15.5 billion-asset company reported a 39% decrease in net income from a year earlier, to $19.3 million. Earnings per share of 17 cents exceeded the average estimate of analysts polled by Bloomberg by 1 cent.
Astoria noted that its results in the first quarter of 2014 included a substantial tax benefit tied to New York State income tax legislation.
Still, noninterest income fell 6% from a year earlier, to $12.9 million, because of lower customer service fees and mortgage banking revenue.
Net interest income decreased by 3% to $85.7 million. The net interest margin compressed by 2 basis points, to 2.34%.
Noninterest expenses were flat, at $70.1 million.