Item 5. Market for Registrant’s Common Equity
ITEM 5.
MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
CVB’s common stock is traded on the NASDAQ Global Select National Market under the symbol “CVBF.” CVB had approximately 135,873,607 shares of common stock outstanding with 1,573 registered shareholders of record as of February 12, 2021.
For information on the statutory and regulatory limitations on the ability of the Company to pay dividends to its shareholders and on the Bank to pay dividends to CVB, see “Item 1. Business-Regulation and Supervision — Dividends
” and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Cash Flow
.”
Issuer Purchases of Equity Securities
On August 11, 2016, our Board of Directors approved a program to repurchase up to 10,000,000 shares of CVB common stock in the open market or in privately negotiated transactions, at times and at prices considered appropriate by us, depending upon prevailing market conditions and other corporate and legal considerations. There is no expiration date for this repurchase program. For the year ended December 31, 2020, the Company repurchased 4,944,290 shares of CVB common stock outstanding under this program. During the fourth quarter ended December 31, 2020, the Company did not repurchase any shares of common stock under this program. As of December 31, 2020, we have 4,585,145 shares of CVB common stock remaining that are eligible for repurchase under the common stock repurchase program.
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Performance Graph
The following Performance Graph and related information shall not be deemed “soliciting material” or be “filed” with the Securities and Exchange Commission, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933 or Securities Exchange Act of 1934, each as amended, except to the extent that the Company specifically incorporates it by reference into such filing.
The following graph compares the yearly percentage change in CVB’s cumulative total shareholder return (stock price appreciation plus reinvested dividends) on common stock (i) the cumulative total return of the Nasdaq Composite Index; and (ii) a published index comprised by Morningstar (formerly Hemscott, Inc.) of banks and bank holding companies in the Pacific region (the peer group line depicted below). The graph assumes an initial investment of $100 on December 31, 2015, and reinvestment of dividends through December 31, 2020. Points on the graph represent the performance as of the last business day of each of the years indicated. The graph is not necessarily indicative of future price performance.
ASSUMES $100 INVESTED ON DECEMBER 31, 2015
ASSUMES DIVIDEND REINVESTED
FISCAL YEAR ENDING DECEMBER 31, 2020
Company/Market/Peer Group
12/31/2015
12/31/2016
12/31/2017
12/31/2018
12/31/2019
12/31/2020
CVB Financial Corp.
100.00
138.47
145.52
128.08
141.16
133.78
NASDAQ Composite
100.00
108.87
141.13
137.12
187.44
271.64
Peer Group Index
100.00
138.17
158.23
127.37
159.28
163.05
Source: Research Data Group, Inc., www.researchdatagroup.com
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ITEM 6.
SELECTED FINANCIAL DATA
The following table reflects selected financial information at and for the five years ended December 31. Throughout the past five years, the Company has acquired other banks. This may affect the comparability of the data.
Year Ended December 31,
2020
2019
2018
2017
2016
(Dollars in thousands, except per share amounts)
Interest income
$
430,337
$
457,850
$
361,860
$
287,226
$
265,050
Interest expense
14,284
22,078
12,815
8,296
7,976
Net interest income before provision for (recapture of) credit losses
416,053
435,772
349,045
278,930
257,074
Provision for (recapture of) credit losses
23,500
5,000
1,500
(8,500
)
(6,400
)
Net interest income after provision for (recapture of) credit losses
392,553
430,772
347,545
287,430
263,474
Noninterest income
49,870
59,042
43,481
42,118
35,552
Noninterest expense
192,903
198,740
179,911
140,753
136,740
Earnings before income taxes
249,520
291,074
211,115
188,795
162,286
Income taxes
72,361
83,247
59,112
84,384
60,857
Net Earnings
$
177,159
$
207,827
$
152,003
$
104,411
$
101,429
Basic earnings per common share
$
1.30
$
1.48
$
1.25
$
0.95
$
0.94
Diluted earnings per common share
$
1.30
$
1.48
$
1.24
$
0.95
$
0.94
Cash dividends declared per common share
$
0.72
$
0.72
$
0.56
$
0.54
$
0.48
Dividend pay-out
ratio (1)
55.13%
48.57%
46.19%
56.97%
51.12%
Weighted average common shares:
Basic
136,030,613
139,757,355
121,670,113
109,409,301
107,282,332
Diluted
136,206,210
139,934,211
121,957,364
109,806,710
107,686,955
Common Stock Data:
Common shares outstanding at year end
135,600,501
140,102,480
140,000,017
110,184,922
108,251,981
Book value per share
$
14.81
$
14.23
$
13.22
$
9.70
$
9.15
Financial Position:
Assets
$
14,419,314
$
11,282,450
$
11,529,153
$
8,270,586
$
8,073,707
Investment securities
2,977,549
2,414,709
2,478,525
2,910,875
3,182,142
Net loans (2)
8,255,116
7,495,917
7,700,998
4,771,046
4,333,524
Deposits
11,736,501
8,704,928
8,827,490
6,546,853
6,309,680
Borrowings
444,406
428,659
722,255
553,773
656,028
Junior subordinated debentures
25,774
25,774
25,774
25,774
25,774
Stockholders’ equity
2,007,990
1,994,098
1,851,190
1,069,266
990,862
Equity-to-assets
ratio (3)
13.93%
17.67%
16.06%
12.93%
12.27%
Financial Performance:
Return on average equity (ROAE)
8.90%
10.71%
11.00%
9.84%
10.26%
Return on average assets (ROAA)
1.37%
1.84%
1.60%
1.26%
1.26%
Net interest margin, tax-equivalent
(TE) (4)
3.59%
4.36%
4.03%
3.63%
3.46%
Efficiency ratio (5)
41.40%
40.16%
45.83%
43.84%
46.73%
Noninterest expense to average assets
1.49%
1.76%
1.89%
1.70%
1.70%
Credit Quality:
Allowance for credit losses
$
93,692
$
68,660
$
63,613
$
59,585
$
61,540
Allowance/total loans
1.12%
0.91%
0.82%
1.23%
1.40%
Total nonaccrual loans
$
14,347
$
5,277
$
19,951
$
10,716
$
7,152
Nonaccrual loans/total loans, net of deferred loan fees
0.17%
0.07%
0.26%
0.22%
0.16%
Allowance/nonaccrual loans
653.04%
1301.12%
318.85%
556.04%
860.46%
Net (charge-offs) recoveries/average loans
-0.004%
0.001%
0.04%
0.14%
0.21%
Regulatory Capital Ratios:
Company:
Tier 1 leverage ratio
9.90%
12.33%
10.98%
11.88%
11.49%
Common equity Tier 1 risk-based capital ratio
14.77%
14.83%
13.04%
16.43%
16.48%
Tier 1 risk-based capital ratio
15.06%
15.11%
13.32%
16.87%
16.94%
Total risk-based capital ratio
16.24%
16.01%
14.13%
18.01%
18.19%
Bank:
Tier 1 leverage ratio
9.58%
12.19%
10.90%
11.77%
11.36%
Common equity Tier 1 risk-based capital ratio
14.57%
14.94%
13.22%
16.71%
16.76%
Tier 1 risk-based capital ratio
14.57%
14.94%
13.22%
16.71%
16.76%
Total risk-based capital ratio
15.75%
15.83%
14.03%
17.86%
18.01%
(1)
Dividends declared on common stock divided by net earnings.
(2)
2016-2018 includes purchased credit-impaired (“PCI”) loans.
(3)
Stockholders’ equity divided by total assets.
(4)
Net interest income (TE) divided by average interest-earning assets.
(5)
Noninterest expense divided by net interest income before provision for credit losses plus noninterest income. Also refer to “Noninterest Expense and Efficiency Ratio Reconciliation (non-GAAP)”
under Analysis of the Results of Operations
of Item 7 of this Form 10-K.
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