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CVB Financial Rewards Shareholders With New Share Repurchase Plan

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CVB Financial Corp. (CVBF - Free Report) authorized a share buyback plan of 10 million shares of the company’s common stock under the 2024 Repurchase Program. This authorization replaces CVBF’s previous share repurchase program from 2022, which had the same authorization amount. As of Sept. 30, 2024, 4.3 million shares remained available for repurchase.
 
David A. Brager, president and CEO of CVBF, said, “The approval of this share repurchase program reflects our robust capital position, consistent track record of producing quality earnings, and history of delivering long-term value to our shareholders.”

CVB Financial’s Dividend Distribution History

Other than the newly announced buyback program, CVBF regularly pays dividends. At present, CVB Financial pays 20 cents per share as a quarterly dividend. Over the last five years, the company increased its quarterly dividend twice, with annualized dividend growth of 3.16%.

Based on Friday's closing price of $23.83, CVBF has a dividend yield of 3.36%. This is impressive compared with the industry’s dividend yield of 2.59%. The yield is attractive for income investors and represents a steady income stream.

CVBF’s Decent Liquidity to Aid Capital Distribution

The company has a decent liquidity profile. The company’s total liquidity (cash and due from banks and interest-earning balances due from Federal Reserve capacity) was $453.4 million as of Sept. 30, 2024. As of the same date, the company’s total other borrowing was $500 million. 

It also has a strong capital position with a total risk-based capital ratio of 16.59% and a Common Equity Tier 1 capital ratio of 15.77%.

CVBF’s decent liquidity and solid balance sheet position are likely to help sustain its capital distributions in the long run.

CVBF’s Price Performance & Zacks Rank

In the past three months, CVBF shares have gained 29.6% compared with the industry’s growth of 21.4%.

Zacks Investment Research
Image Source: Zacks Investment Research

CVBF currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Similar Steps by Other Finance Firms

This month, Trinity Capital Inc.’s (TRIN - Free Report) board of directors authorized a share buyback plan worth $30 million. The program is set to expire earlier than either Nov. 7, 2025, or full utilization of the authorization.

In November 2022, TRIN announced a share buyback authorization worth $25 million, which expired on Nov. 11, 2023. Under this, the company repurchased 0.9 million shares at a weighted average price of $10.91. Other than the newly announced buyback program, TRIN regularly pays dividends.

In the same month, Comerica Incorporated’s (CMA - Free Report) board approved an additional share repurchase authorization of up to 10 million shares of its outstanding common stock, with no expiration date. This new authorization is in addition to the 5 million shares available as of Sept. 30, 2024, under the prior share repurchase program.

In the fourth quarter of 2024, CMA plans to repurchase approximately $100 million shares.


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