What is Peoples Bancorp of North Carolina 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, Peoples Bancorp of North Carolina's Probability of Financial Distress (%) is 0.05%.
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 Peoples Bancorp of North Carolina's Probability of Financial Distress (%)
For the Banks - Regional subindustry, Peoples Bancorp of North Carolina'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.
Peoples Bancorp of North Carolina's Probability of Financial Distress (%) Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Peoples Bancorp of North Carolina's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Peoples Bancorp of North Carolina's Probability of Financial Distress (%) falls into.
Peoples Bancorp of North Carolina 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 |
| = | -7.51 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.05% |
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).
Peoples Bancorp of North Carolina (Peoples Bancorp of North Carolina) Business Description
Traded in Other Exchanges
N/A
Address
518 West C Street, Newton, NC, USA, 28658
Peoples Bancorp of North Carolina Inc is a bank holding company. It is a state-chartered commercial bank serving Lincolnton, Newton, Denver, Catawba, Conover, Maiden, Claremont, Hiddenite, Hickory, Charlotte, Cornelius, Mooresville, Raleigh, and Cary, North Carolina. It has a diversified loan portfolio with no foreign loans and few agricultural loans. The company's main source of income is dividends declared and paid by the Bank on its capital stock.
Executives
| James S Abernethy |
director |
|
| Douglas S Howard |
director |
518 WEST C. STREET, NEWTON NC 28658 |
| Price Billy L Jr Dr |
director |
|
| Benjamin I Zachary |
director |
P O BOX 467, NEWTON NC 286580467 |
| Lance A Sellers |
officer: EVP and Chief Credit Officer |
|
| William D Cable |
officer: EVP and COO |
P O BOX 467, NEWTON NC 286580467 |
| Timothy Paul Turner |
officer: EVP, Chief Credit Officer |
PO BOX 467, NEWTON NC 28658 |
| James Owen Perry |
officer: EVP Chief Retail Banking Offcr |
PO BOX 467, NEWTON NC 28658 |
| Kim Boyd-leaks |
director, officer: Chief Banking Support Officer |
PO BOX 467, NEWTON NC 28658 |
| Christine S Abernethy |
10 percent owner |
518 WEST C STREET, NEWTON NC 28658 |
| Robert C Abernethy |
director, officer: Chairman |
P O BOX 467, NEWTON NC 286580467 |
| A Joseph Lampron |
officer: EVP & CFO |
P O BOX 467, NEWTON NC 286580467 |
| Jeffrey N. Hooper |
officer: EVP/Chief Financial Officer |
518 WEST C ST, NEWTON NC 28658 |
| Lineberger John W Jr |
director |
2200 WEST LOOP STE 900, C/O IEC CO, HOUSTON TX 77027 |
| William Gregory Terry |
director |
218 SOUTH MAIN STREET, NEWTON NC 28658 |
Peoples Bancorp of North Carolina (Peoples Bancorp of North Carolina) Headlines
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