What is Premier Financial 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, Premier Financial'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 Premier Financial's Probability of Financial Distress (%)
For the Banks - Regional subindustry, Premier Financial'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.
Premier Financial's Probability of Financial Distress (%) Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Premier Financial's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Premier Financial's Probability of Financial Distress (%) falls into.
Premier Financial 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 |
| = | -6.99 |
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).
Premier Financial (Premier Financial) Business Description
Traded in Other Exchanges
N/A
Address
601 Clinton Street, Defiance, OH, USA, 43512
Premier Financial Corp is a financial holding company that operates as a community banking and financial services corporation. It offers a broad range of financial services through its subsidiaries including checking accounts, savings accounts, certificates of deposit, real estate mortgage loans, commercial loans, consumer loans, home equity loans, and trust and wealth management services.
Executives
| Rose Dennis E Jr |
officer: EVP, First Federal Bank |
601 CLINTON STREET, DEFIANCE OH 43512 |
| Donald P. Hileman |
officer: Executive Vice President, CFO |
601 CLINTON STREET, DEFIANCE OH 43512 |
| Rick L. Hull |
officer: EVP Head of Commercial Banking |
44 AUBURN AVENUE SE, NORTH CANTON OH 44720 |
| John Michael Houpt |
officer: EVP, Chief Credit Officer |
601 CLINTON STREET, DEFIANCE OH 43512 |
| Louis Michael Altman |
director |
1111 EASTWOOD STREET NE, CANTON OH 44714 |
| Craig Sciara |
officer: EVP, Chief Credit Officer |
601 CLINTON STREET, DEFIANCE OH 43512 |
| Terri A Bettinger |
director |
601 CLINTON STREET, DEFIANCE OH 43512 |
| Richard J Schiraldi |
director |
275 FEDERAL PLAZA WEST, YOUNGSTOWN OH 44503 |
| Jason Gendics |
officer: See Remarks |
275 WEST FEDERAL STREET, YOUNGSTOWN OH 44503-1203 |
| Nikki Robinson Lanier |
director |
601 CLINTON STREET, DEFIANCE OH 43512 |
| Samuel S Strausbaugh |
director |
601 CLINTON ST., DEFIANCE OH 43512 |
| Varun Chandhok |
officer: EVP, Chief Information Officer |
601 CLINTON STREET, DEFIANCE OH 43512 |
| Tina Nutter |
officer: EVP, Chief Risk Officer |
601 CLINTON STREET, DEFIANCE OH 43512 |
| Shannon M Kuhl |
officer: EVP, Chief Legal Officer |
255 E FIFTH STREET, SUITE 2900, CINCINNATI OH 45202 |
| Jude J. Nohra |
officer: See Remarks |
275 FEDERAL PLAZA WEST, YOUNGSTOWN OH 44503 |
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