What is Blue Ridge Bankshares 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, Blue Ridge Bankshares's Probability of Financial Distress (%) is 0.20%.
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 Blue Ridge Bankshares's Probability of Financial Distress (%)
For the Banks - Regional subindustry, Blue Ridge Bankshares'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.
Blue Ridge Bankshares's Probability of Financial Distress (%) Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Blue Ridge Bankshares's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Blue Ridge Bankshares's Probability of Financial Distress (%) falls into.
Blue Ridge Bankshares 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 |
| = | -6.24 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.20% |
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).
Blue Ridge Bankshares (Blue Ridge Bankshares) Business Description
Traded in Other Exchanges
N/A
Address
1807 Seminole Trail, Charlottesville, VA, USA, 22901
Blue Ridge Bankshares Inc is a United States-based company engaged in offering commercial and consumer banking and financial services through its wholly-owned bank subsidiary, Blue Ridge Bank, National Association, and its non-bank financial services affiliates. The bank offers services such as checking accounts, savings accounts, money market accounts, cash management accounts, certificates of deposit, individual retirement accounts, commercial and industrial loans, residential mortgages, commercial mortgages, home equity loans, consumer installment loans, investment accounts, insurance, credit cards, online banking, telephone banking, and mobile banking. Its primary source of revenue is interest income from the lending activities.
Executives
| Brian K. Plum |
director, officer: CEO & President |
17 WEST MAIN STREET, LURAY VA 22835 |
| Robert S. Janney |
director |
17 WEST MAIN STREET, LURAY VA 22835 |
| Brett Raynor |
officer: Cheif Accounting Officer |
17 WEST MAIN STREET, LURAY VA 22835 |
| Lanell Deloach |
officer: Chief Credit Officer of Subsid |
17 WEST MAIN STREET, LURAY VA 22835 |
| Heather Cozart |
director |
500 RAMBLEWOOD DRIVE, RALEIGH NC 27609 |
| Otis Jones |
director |
9118 AVOCET CT, CHESTERFIELD VA 23838 |
| G William Beale |
officer: CEO of Bank Subsidiary |
1051 E. CARY STREET, SUITE 1200, RICHMOND VA 23219 |
| Vance H Spilman |
director |
5417 CARY STREET ROAD, RICHMOND VA 23226 |
| Andrew C. Holzwarth |
director |
17 WEST MAIN STREET, LURAY VA 22835 |
| William W. Stokes |
director |
17 WEST MAIN STREET, LURAY VA 22835 |
| Larry Dees |
director |
17 WEST MAIN STREET, LURAY VA 22835 |
| Mensel D Dean |
director |
4095 VALLEY PIKE, WINCHESTER VA 22602 |
| Carolyn J. Woodruff |
director |
17 WEST MAIN STREET, LURAY VA 22835 |
| Reynolds Randolph N Jr |
director |
3 PARTRIDGE HILL ROAD, RICHMOND VA 23238 |
| Farmar Richard A Iii |
director |
P O BOX 1181, WARSAW VA 22572 |
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