What is SB Financial Group 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, SB Financial Group's Probability of Financial Distress (%) is 0.09%.
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 SB Financial Group's Probability of Financial Distress (%)
For the Banks - Regional subindustry, SB Financial Group'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.
SB Financial Group's Probability of Financial Distress (%) Distribution in the Banks Industry
For the Banks industry and Financial Services sector, SB Financial Group's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where SB Financial Group's Probability of Financial Distress (%) falls into.
SB Financial Group 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 |
| = | -6.98 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.09% |
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).
SB Financial Group (SB Financial Group) Business Description
Traded in Other Exchanges
N/A
Address
401 Clinton Street, P.O. Box 467, Defiance, OH, USA, 43512
SB Financial Group Inc operates as a Holding Company of State Bank and RDSI/DCM. Its activities involve commercial banking, trust, and financial services. It offers a full-range of financial services for consumers and small businesses, including trust services, mortgage banking, wealth management services, commercial and agricultural lending. It accepts deposits, such as checking accounts, savings accounts, money market accounts, demand deposits, and time certificates of deposit. It earns revenue in the form of interest income.
Executives
| Timothy J. Stolly |
director |
700 BLUFF OAK TRAIL, LIMA OH 45807 |
| Timothy L. Claxton |
director |
327 BAROUCHE PL., FORT WAYNE IN 46845 |
| Mark A Klein |
officer: CHAIRMAN, PRESIDENT & CEO |
225 KETTENRING DRIVE, DEFIANCE OH 43512 |
| William G Martin |
director |
136 DEERFIELD CIRCLE, BRYAN OH 43506 |
| Richard L Hardgrove |
director |
1959 MARBLE CLIFF CROSSING CT., COLUMBUS OH 43204 |
| Steven A. Walz |
officer: EVP OF SUBSIDIARY |
324 NORTHWOOD DR., DEFIANCE OH 43512 |
| George W Carter |
director |
15316 RD 168, PO BOX 322, PAULDING OH 45879 |
| Anthony Van Cosentino |
officer: EVP OF SUBSIDIARY |
1600 BRIDGEWOOD COURT, DEFIANCE OH 43512 |
| David A. Homoelle |
officer: REGIONAL PRESIDENT OF SUBSIDIA |
903 GATEHOUSE LANE, COLUMBUS OH 43235 |
| Keeta Jane Diller |
officer: EVP OF SUBSIDIARY |
13801 FRUIT RIDGE ROAD, DEFIANCE OH 43512 |
| Gaytan Garcia Juan Ernesto |
officer: EVP OF SUBSIDIARY |
2103 SOUTH BROOKHILL LANE, CANTON MI 48188 |
| Rita A Kissner |
director |
135 BIEDE PLACE, DEFIANCE OH 43512 |
| Tom R Helberg |
director |
30600 N. PIMA RD., UNIT 50, SCOTTSDALE AZ 85266 |
| Jonathan R. Gathman |
other: EVP OF SUBSIDIARY |
703 BURNING TREE DRIVE, DEFIANCE OH 43512 |
| Fawcett Jr Robert A |
director |
172 EASTOWNE DRIVE, OTTAWA OH 45875 |
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