What is S&T 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, S&T Bancorp's Probability of Financial Distress (%) is 0.07%.
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 S&T Bancorp's Probability of Financial Distress (%)
For the Banks - Regional subindustry, S&T 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.
S&T Bancorp's Probability of Financial Distress (%) Distribution in the Banks Industry
For the Banks industry and Financial Services sector, S&T Bancorp's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where S&T Bancorp's Probability of Financial Distress (%) falls into.
S&T 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 |
| = | -7.23 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.07% |
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).
S&T Bancorp (S&T Bancorp) Business Description
Traded in Other Exchanges
N/A
Address
800 Philadelphia Street, Indiana, PA, USA, 15701
S&T Bancorp Inc is a bank holding company. The company operates in five markets including Western Pennsylvania, Eastern Pennsylvania, Northeast Ohio, Central Ohio and Upstate New York. It has one reporting unit, Community Banking. The company provides financial services with retail and commercial banking products, cash management services, trust and brokerage services. The company earns revenue from interest on loans and securities and fees charged for financial services provided to its customers.
Executives
| Adkins Lewis W Jr |
director |
800 PHILADELPHIA STREET, INDIANA PA 15701 |
| Jeffrey D Grube |
director |
C/O S&T BANK ACCOUNTING DEPT, P O BOX 190, INDIANA PA 15701 |
| Rachel Lynn Smydo |
officer: Executive Vice President |
800 PHILADELPHIA STREET, INDIANA PA 15701 |
| James Arvo Michie |
officer: Executive Vice President |
800 PHILADELPHIA STREET, INDIANA PA 15701 |
| William J Hieb |
director |
800 PHILADELPHIA STREET, INDIANA PA 15701 |
| Susan A Nicholson |
officer: Executive Vice President |
800 PHILADELPHIA STREET, INDIANA PA 15701 |
| Christopher J. Mccomish |
director, officer: Chief Executive Officer |
800 PHILADELPHIA STREET, INDIANA PA 15701 |
| Peter Richard Barsz |
director |
800 PHILADELPHIA STREET, INDIANA PA 15701 |
| James Thomas Gibson |
director |
C/O S&T BANK ACCOUNTING DEPT, 800 PHILADELPHIA ST, INDIANA PA 15701 |
| Christina Anne Cassotis |
director |
800 PHILADELPHIA STREET, INDIANA PA 15701 |
| Christine J Olson |
director |
C/O S&T BANK ACCOUNTING DEPT, 800 PHILADELPHIA ST, INDIANA PA 15701 |
| David G Antolik |
officer: EXECUTIVE VICE PRESIDENT |
C/O S&T BANK ACCOUNTING DEPT, 800 PHILADELPHIA ST, INDIANA PA 15701 |
| Jerry Delmar Hostetter |
director |
C/O S&T BANK ACCOUNTING DEPT, 800 PHILADELPHIA STREET, INDIANA PA 15701 |
| Carroll Charles Benner Jr |
officer: Executive Vice President |
1500 NITTERHOUSE DRIVE, CHAMBERSBURG PA 17201 |
| Brian Richard Dobis |
officer: Executive Vice President |
800 PHILADELPHIA STREET, INDIANA PA 15701 |
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