CVB Financial cancels stock buyback
CVB Financial Corp., the holding company for Citizens Business Bank, is temporarily suspending its stock repurchasing program.
The uncertainty created by the Coronavirus outbreak has created too much uncertainty, locally and around the world, to proceed with the plan, Chief Executive Officer David E. Brager said in a statement.
CVB Financial’s board recently approved a plan to repurchase up to 9,577,917 shares of its common stock. The company repurchased more than 4.9 million shares, at $18.54 a share, during the first quarter of this year.
As of Tuesday, the last day of 2020’s first quarter, there were more than 4.5 million shares of CVB Financial stock available for repurchase.
Banks and other financial institutions often buy back their shares when they consider them undervalued. This reduces the number of outstanding shares, which can increase demand for the shares and raise their price.