CVB Financial Corp. (NASDAQ:CVBF) Q1 2018 Earnings Conference Call - Final Transcript
Apr 19, 2018 • 10:30 am ET
Good morning, ladies and gentlemen and welcome to the First Quarter 2018 CVB Financial Corporation and its subsidiary, Citizens Business Bank Earnings Conference Call. My name is Phil and I'm your operator for today. At this time, all participants are in a listen-only mode. [Operator Instructions] Please also note this event is being recorded.
I would now like to turn the presentation over to your host for today's call, Christina Carrabino. You may proceed.
Thank you, Phil, and good morning everyone. Thank you for joining us today to review our financial results for the first quarter of 2018. Joining me this morning are Chris Myers, President and Chief Executive Officer, and Allen Nicholson, Executive Vice President and Chief Financial Officer.
Our comments today will refer to the financial information that was included in the earnings announcement released yesterday. To obtain a copy, please visit our website at www.cbbank.com and click on the Investors tab.
Before we get started, let me remind you that today's conference call will include some forward-looking statements. These forward-looking statements relate to, among other things, current plans, expectations, events and industry trends that may affect the Company's future operating results and financial position. Such statements involve risks and uncertainties, and future activities and results may differ materially from these expectations.
The speakers on this call claim the protection of the Safe Harbor provisions contained in the Private Securities Litigation Reform Act of 1995. For a more complete discussion of the risks and uncertainties that may cause actual results to differ materially from our forward-looking statements, please see the Company's annual report on Form 10-K for the year ended December 31, 2016, and in particular, the information set forth in Item 1A Risk Factors, therein.
Now, I will turn the call over to Chris Myers.
Thank you, Christina. Good morning, everyone and thank you for joining us again this quarter. I have an important announcement to make and that is Allen Nicholson is celebrating his 51st birthday today. And so, I ask that you go extra tough on him in the questions. But anyway, with all kidding aside, happy birthday, Allen.
Yesterday, we reported net earnings of $34.9 million for the first quarter compared with $17.9 million for the fourth quarter of 2017, and $28.5 million for the year-ago quarter. Our first quarter earnings were the highest quarterly earnings in CVBF history. Earnings per share were $0.32 for the first quarter compared with $0.16 for the fourth quarter and $0.26 for the year-ago quarter. Excluding the impact of the deferred tax asset valuation adjustment, earnings per share for the fourth quarter of 2017 were $0.28.
The first quarter's earnings were positively impacted by a $3.5 million net gain on the sale of our last remaining OREO property and a $1 million loan loss provision recapture. First quarter earnings were negatively impacted by $803,000 in acquisition-related expenses and $860,000 in higher payroll taxes, as we typically experience higher payroll taxes in the first quarter of each year.