What is First Northwest Bancorp Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, First Northwest Bancorp's Probability of Financial Distress (%) is 0.18%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of First Northwest Bancorp's Probability of Financial Distress (%)
For the Banks - Regional subindustry, First Northwest Bancorp's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
First Northwest Bancorp's Probability of Financial Distress (%) Distribution in the Banks Industry
For the Banks industry and Financial Services sector, First Northwest Bancorp's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where First Northwest Bancorp's Probability of Financial Distress (%) falls into.
First Northwest Bancorp Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | -6.32 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.18% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For banks, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
First Northwest Bancorp (First Northwest Bancorp) Business Description
Traded in Other Exchanges
N/A
Address
105 West 8th Street, Port Angeles, WA, USA, 98362
First Northwest Bancorp is a bank holding company and a financial holding company and is engaged in banking activities through its wholly owned subsidiary, First Fed Bank, as well as certain non-banking financial activities. It includes deposit and lending transactions that are supplemented with other borrowing and investing activities. The bank's principal lending activities are focused on first lien one- to four-family mortgage loans, commercial and multi-family real estate loans, construction and land loans (including lot loans), commercial business loans and consumer loans. Geographically all the operations are functioned through the regions of Washington, US.
Executives
| Christopher J Riffle |
officer: Executive VP, COO, GC |
105 W. 8TH STREET, PORT ANGELES WA 98362 |
| Dana D. Behar |
director |
105 W. EIGHTH STREET, PORT ANGELES WA 98362 |
| Matthew Deines |
officer: President & CEO |
C/O FIRST NORTHWEST BANCORP, 105 W. 8TH STREET, PORT ANGELES WA 98362 |
| Tonina Norman J. Jr. |
director |
105 WEST 8TH STREET, PORT ANGELES WA 98362 |
| Terry A Anderson |
officer: EVP/CCO |
105 W. 8TH STREET, PORT ANGELES WA 98362 |
| Lynn Terwoerds |
director |
105 WEST 8TH ST, PORT ANGELES WA 98362 |
| Geraldine L. Bullard |
officer: EVP/CFO/Principal Acc't Off. |
105 W. 8TH STREET, PORT ANGELES WA 98362 |
| Cindy H. Finnie |
director |
105 WEST 8TH STREET, PORT ANGELES WA 98362 |
| Christopher Wade Neros |
officer: EVP, Chief Lending Officer |
105 W 8TH STREET, PORT ANGELES WA 98362 |
| Gabriel Steven Galanda |
director |
105 W. 8TH STREET, PORT ANGELES WA 98362 |
| Sherilyn G Anderson |
director |
105 W. 8TH STREET, PORT ANGELES WA 98362 |
| David T. Flodstrom |
director |
105 WEST 8TH STREET, PORT ANGELES WA 98362 |
| Craig Alan Curtis |
director |
105 WEST 8TH STREET, PORT ANGELES WA 98362 |
| Randy T. Riffle |
officer: EVP/Chief Lending Officer |
105 W. 8TH STREET, PORT ANGELES WA 98362 |
| Derek J Brown |
officer: EVP, Chief HR/Marketing Off. |
105 W. 8TH STREET, PORT ANGELES WA 98362 |
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