What is Hills 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, Hills Bancorp's Probability of Financial Distress (%) is 0.06%.
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 Hills Bancorp's Probability of Financial Distress (%)
For the Banks - Regional subindustry, Hills 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.
Hills Bancorp's Probability of Financial Distress (%) Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Hills Bancorp's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Hills Bancorp's Probability of Financial Distress (%) falls into.
Hills 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 |
| = | -7.35 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.06% |
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).
Hills Bancorp (Hills Bancorp) Business Description
Traded in Other Exchanges
N/A
Address
131 E. Main Street, PO Box 160, Hills, IA, USA, 52235
Hills Bancorp is a holding company engaged in the business of commercial banking serving individuals, businesses, governmental units and institutional customers in the United States. It offers services including acceptance of demand, savings and time deposits, providing commercial, real estate, agricultural and consumer loans, maintaining night and safe deposit facilities, and performing collection, exchange, and other banking services. Also, it administers estates, personal trusts, and pension plans and provides farm management, investment advisory and custodial services for individuals, corporations, and nonprofit organizations. The company also provides mortgage loans and commercial and financial loans. Most of the company's revenue comes from interest income.
Executives
| Anthony V Roetlin |
officer: SVP Chief Financial Officer |
131 E. MAIN ST. PO BOX 160, HILLS IA 52235 |
| Joseph Andrew Schueller |
officer: SVP, CFO, Treasurer |
131 E. MAIN ST., HILLS IA 52235 |
| Lisa A Shileny |
officer: Sr VP, Dr of Administration |
131 E MAIN ST, P.O. BOX 160, HILLS IA 52235 |
| Shari J Demaris |
officer: Treasurer |
1560 MCKINLEY PL, IOWA CITY IA 52246 |
| Steven R Ropp |
officer: SR VP, Director Comm'l Banking |
131 MAIN STREET, PO BOX 160, HILLS IA 52235 |
| James C Schmitt |
director |
131 E MAIN STREET, PO BOX 160, HILLS IA 52235 |
| Thomas R Wiele |
director |
1306 217TH ST., NICHOLS IA 52766 |
| Michael S Donovan |
director |
131 MAIN STREET, HILLS IA 52235 |
| John W Phelan |
director |
131 MAIN STREET, HILLS IA 52235 |
| Casey L Peck |
director |
131 E MAIN STREET, PO BOX 160, HILLS IA 52235 |
| Kirsten H Frey |
director |
131 E MAIN STREET, PO BOX 160, HILLS IA 52235 |
| Bradford C Zuber |
officer: SRVP, Director Trust Services |
131 MAIN STREET, PO BOX 160, HILLS IA 52235 |
| Michael Hodge |
director |
15 LINDOER VALLEY CIRCLE, IOWA CITY IA 52240 |
| Theodore H Pacha |
director |
PO BOX 1405, IOWA CITY IA 52240 |
| James A Nowak |
director |
131 MAIN STREET, HILLS IA 52235 |
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