CVB Financial Corp. the holding company for Citizens Business Bank is starting a new stock repurchase plan.
The plan allows for a maximum of 4,585,145 shares of CVB Financial’s common stock to be repurchased by the company between Nov. 6 of this year and Nov. 5, 2021, according to a statement.
The plan can be extended or terminated.
In August 2016, CVB Financial’s board increased its repurchase program to a maximum of 10,000,000 shares of common stock. Since then, the company has repurchased 5,414,855 shares, leaving 4,585,145 shares available for repurchase, according to the statement.
A company buys back its own shares because management considers them to be undervalued. That action reduces the number of outstanding shares, which increases both demand for the shares and their price.