Cascade Bancorp (Cascade Bancorp) Probability of Financial Distress (%) : 0.00% (As of May. 05, 2024)

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What is Cascade 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, Cascade Bancorp's Probability of Financial Distress (%) is 0.00%.

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 Cascade Bancorp's Probability of Financial Distress (%)

For the Banks - Regional subindustry, Cascade 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.

Cascade Bancorp's Probability of Financial Distress (%) Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Cascade Bancorp's Probability of Financial Distress (%) distribution charts can be found below:

* The bar in red indicates where Cascade Bancorp's Probability of Financial Distress (%) falls into.

Cascade 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

0.00

The Probability of Financial Distress (%) (PFD) was then obtianed by:

PFD	=	1	/	(1 + e^(-LPFD))	*	100%
	=	0.00%

The eight explanatory variables are:

1. NIMTAAVG = Net Income to Market Total Assets

NIMTAAVG	=	Net Income	/	Market Total Assets
	=	Net Income	/	(Market Cap + Total Liabilities)

*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

TLMTA

Total Liabilities

Market Total Assets

3. CASHMTA = Cash to Market Total Assets

For banks, CASHMTA is measured as:

CASHMTA

(Balance Sheet Cash And Cash Equivalents + Money Market Investments)

Market Total Assets

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

MB	=	Market Cap	/	Adjusted Book Equity
	=	Market Cap	/	(Total Stockholders Equity + 0.1 * ( Market Cap - Total Stockholders Equity))

8. PRICE

PRICE is measured as the log of the stock price, capped at log(15).

Cascade Bancorp (NAS:CACB) Probability of Financial Distress (%) Explanation

Like the Altman Z-Score, the PFD measures a company's bankruptcy risk in the upcoming year. 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.

Cascade Bancorp Probability of Financial Distress (%) Related Terms

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Cascade Bancorp (Cascade Bancorp) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Cascade Bancorp (NAS:CACB) » Definitions » Probability of Financial Distress (%)

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.botc.com

Cascade Bancorp was formed in 1990 and is a publicly traded bank holding company. The Bancorp conducts its business activities through its wholly-owned subsidiary, Bank of the Cascades. The Bank is an Oregon state chartered bank which operates more 28 branches serving communities in Central, Southern and Northwest Oregon, as well as in the greater Boise/Treasure Valley, Idaho area. It offers commercial and retail banking services to its customers. It lends to small to medium-sized businesses, municipalities and public organizations, professional and consumer relationships. It also provides commercial real estate loans, real estate construction and development loans, commercial and industrial loans as well as consumer installment, line-of-credit, credit card, and home equity loans. It originates residential mortgage loans that are sold on the secondary market. The Bank provides consumer deposit services with a suite of cash management services. It also provides trust-related services to its clients. The Bank competes principally with other commercial banks, savings and loan associations, credit unions, mortgage companies, brokers, and other non-bank financial services providers. It is subject to a number of state and federal legislative regulations which include, among others, the statutory maximum legal lending rates, domestic monetary policies of the Federal Reserve Board, the U.S. Department of Treasury fiscal policy, and capital adequacy and liquidity constraints imposed by federal and state regulatory agencies.

Executives

Leonard Green & Partners, L.p.	10 percent owner	11111 SANTA MONICA BLVD, STE 2000, LOS ANGELES CA 90025
Daniel J Lee	officer: EVP/CCO	5415 EVERGREEN WAY, EVERETT WA 98203
J Lamont Keen	director	1221 W IDAHO ST, BOISE ID 83702
Annette G Elg	director	1100 NW WALL STREET, BEND OR 97701
Green V Holdings, Llc	10 percent owner	11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025
Green Equity Investors V, L.p.	10 percent owner	11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025
Green Equity Investors Side V, L.p.	10 percent owner	11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025
Gei Capital V, Llc	10 percent owner	11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025
Michael Connolly	director	11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025
Dennis L Johnson	director	1221 W IDAHO ST, BOISE ID 83702
Patricia L Moss	director	1100 N.W. WALL STREET, P.O. BOX 369, BEND OR 97701
Lgp Management Inc	10 percent owner	11111 SANTA MONICA BLVD, STE 2000, LOS ANGELES CA 90025
Terry E Zink	director, officer: Pres/CEO	38 FOUNTAIN SQUARE PLAZA, MD10AT76, CINCINNATI OH 45263
Donald B Marron	10 percent owner	51 WEST 52ND ST, 23RD FL, NEW YORK NY 10019
Judi Johansen	director	2786 GLENMORRIE DRIVE, LAKE OSWEGO OR 97034