What is Uwharrie Capital 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, Uwharrie Capital'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 Uwharrie Capital's Probability of Financial Distress (%)
For the Banks - Regional subindustry, Uwharrie Capital'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.
Uwharrie Capital's Probability of Financial Distress (%) Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Uwharrie Capital's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Uwharrie Capital's Probability of Financial Distress (%) falls into.
Uwharrie Capital 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 |
| = | -6.97 |
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).
Uwharrie Capital (Uwharrie Capital) Business Description
Traded in Other Exchanges
N/A
Address
132 North First Street, Albemarle, NC, USA, 28001
Uwharrie Capital Corp is a bank holding company. The bank engages in noncommercial loans and commercial banking. It provides a range of banking services, including deposit accounts, home equity and residential mortgage loans, safe deposit boxes and electronic banking services. The bank offers traditional commercial and consumer banking services, including personal and commercial checking and savings accounts, money market accounts, individual retirement accounts, and related business and individual banking services. Its lending activities include commercial and consumer type loans to individuals, including mortgage loans, equity lines of credit and overdraft checking credit. The bank generates revenue through the source of interest, dividend, and others.
Executives
| Mary N Klauder |
director |
PO BOX 338, ALBEMARLE NC 28002-0338 |
| Matthew D. Mcaulay |
director |
PO BOX 338, ALBEMARLE NC 28002-0338 |
| Aaron David Bates |
director |
PO BOX 338, ALBEMARLE NC 28001 |
| Vanessa O Chambers |
director |
PO BOX 338, ALBEMARLE NC 28002-0338 |
| Cynthia B Hanson |
director |
PO BOX 338, ALBEMARLE NC 28002-0338 |
| Stephen C Seltzer |
director |
PO BOX 338, ALBEMARLE NC 28002-0338 |
| Tamara M Singletary |
officer: EVP & Corporate Secretary |
PO BOX 338, ALBEMARLE NC 28002-0338 |
| Brooke L Senter |
officer: Chief People Officer |
PO BOX 338, ALBEMARLE NC 28002-0338 |
| Cheryl P Rinehardt |
officer: Chief Credit Officer |
PO BOX 338, ALBEMARLE NC 28002-0338 |
| Heather H Almond |
officer: Chief Financial Officer |
PO BOX 338, ALBEMARLE NC 28002-0338 |
| Jeffrey L Trout |
officer: President UB Mortgage |
PO BOX 338, ALBEMARLE NC 28002-0338 |
| Jason R Andrew |
officer: Chief Information Officer |
PO BOX 338, ALBEMARLE NC 28002-0338 |
| Merlin Amirtharaj |
director |
PO BOX 338, ALBEMARLE NC 28002-0338 |
| Matthew R Hudson |
director |
PO BOX 338, ALBEMARLE NC 28002-0338 |
| Chris M Poplin |
director |
PO BOX 338, ALBEMARLE NC 28002-0338 |
Uwharrie Capital (Uwharrie Capital) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
UWHR has been successfully added to your