What is Riverview 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, Riverview Bancorp's Probability of Financial Distress (%) is 0.19%.
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 Riverview Bancorp's Probability of Financial Distress (%)
For the Banks - Regional subindustry, Riverview 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.
Riverview Bancorp's Probability of Financial Distress (%) Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Riverview Bancorp's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Riverview Bancorp's Probability of Financial Distress (%) falls into.
Riverview 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 |
| = | -6.27 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.19% |
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).
Riverview Bancorp (Riverview Bancorp) Business Description
Traded in Other Exchanges
N/A
Address
900 Washington Street, Suite 900, Vancouver, WA, USA, 98660
Riverview Bancorp Inc is an American savings and loan holding company. The company through its subsidiaries engages in the business of attracting deposits and puts it to use in its market area to originate commercial business. It organizes in two operating segments, Banking Operations performed by the bank and trust and Investment Services performed by the Trust company. The company products and services include checking, saving, money market, mortgage, home equity, consumer, online banking, cash management, and others.
Executives
| Robert Benke |
officer: EVP/CCO |
900 WASHINGTON ST, STE 900, VANCOUVER WA 98660 |
| Valerie Moreno |
director |
900 WASHINGTON STREET, SUITE 900, VANCOUVER WA 98660 |
| Michael Sventek |
officer: EVP/CLO |
900 WASHINGTON ST, SUITE 900, VANCOUVER WA 98660 |
| Stacey Graham |
director |
900 WASHINGTON STREET, SUITE 900, VANCOUVER WA 98660 |
| Bradley Carlson |
director |
900 WASHINGTON STREET, SUITE 900, VANCOUVER WA 98660 |
| Bessie Ross Wills |
director |
900 WASHINGTON STREET, SUITE 900, VANCOUVER WA 98660 |
| Sowers Courtney Evan |
officer: President/CEO - Trust Co. |
900 WASHINGTON STREET, SUITE 900, VANCOUVER WA 98660 |
| Larry Hoff |
director |
900 WASHINGTON STREET, SUITE 900, VANCOUVER WA 98660 |
| Tracie L. Jellison |
officer: Chief Retail Banking Officer |
900 WASHINGTON STREET, SUITE 900, VANCOUVER WA 98660 |
| Patricia Eby |
director |
900 WASHINGTON STREET, SUITE 900, VANCOUVER WA 98660 |
| John A Karas |
officer: Sr. Vice President |
900 WASHINGTON ST, SUITE 900, VANCOUVER WA 98660 |
| Martin S. Friedman |
10 percent owner, other: See Remarks below |
7901 JONES BRANCH DR. SUITE 210, MCLEAN VA 22102 |
| David Nierenberg |
director |
19605 NE 8TH STREET, CAMAS WA 98607 |
| Kim J Capeloto |
officer: Executive Vice President |
900 WASHINGTON ST., SUITE 900, VANCOUVER WA 98660 |
| Daniel D Cox |
officer: EVP, Chief Credit Officer |
900 WASHINGTON STREET, SUITE 900, VANCOUVER WA 98660 |
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