What is Bank of Hawaii 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, Bank of Hawaii's Probability of Financial Distress (%) is 0.08%.
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 Bank of Hawaii's Probability of Financial Distress (%)
For the Banks - Regional subindustry, Bank of Hawaii'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.
Bank of Hawaii's Probability of Financial Distress (%) Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Bank of Hawaii's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Bank of Hawaii's Probability of Financial Distress (%) falls into.
Bank of Hawaii 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 |
| = | -7.14 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.08% |
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).
Bank of Hawaii (Bank of Hawaii) Business Description
Traded in Other Exchanges
Address
130 Merchant Street, Honolulu, HI, USA, 96813
Bank of Hawaii Corp provides a broad range of financial products and services primarily to customers in Hawaii, Guam, and other Pacific Islands. The Bank's subsidiaries are engaged in equipment leasing, securities brokerage, investment advisory services, and providing credit insurance. It is organized into three business segments for management reporting purposes: Consumer Banking, Commercial Banking, and Treasury and Other.
Executives
| Patrick M Mcguirk |
officer: Vice Chair and CAO |
5151 CORPORATE DRIVE, TROY MI 48098 |
| Wo Robert W Jr |
director |
130 MERCHANT ST 22ND FLR, HONOLULU HI 96813 |
| Suzanne P Vares-lum |
director |
130 MERCHANT STREET, HONOLULU HI 96813 |
| Kent Thomas Lucien |
director |
130 MERCHANT STREET, HONOLULU HI 96813 |
| Victor K Nichols |
director |
130 MERCHANT STREET, HONOLULU HI 96813 |
| Alicia E Moy |
director |
130 MERCHANT STREET, HONOLULU HI 96813 |
| Peter S Ho |
officer: VICE CHAIRMAN |
130 MERCHANT STREET, HONOLULU HI 96813 |
| Matthew Emerson |
officer: Vice Chair |
130 MERCHANT STREET, HONOLULU HI 96813 |
| Jeanne Dressel |
officer: Principal Accounting Officer |
130 MERCHANT STREET, HONOLULU HI 96813 |
| Sharon M Crofts |
officer: VICE CHAIRMAN |
130 MERCHANT STREET, HONOLULU HI 96813 |
| Elliot K Mills |
director |
130 MERCHANT STREET, HONOLULU HI 96813 |
| Mary E Sellers |
officer: Vice Chair &, Chief Risk Officer |
130 MERCHANT STREET, 22ND FLR, HONOLULU HI 96813 |
| Dean Y Shigemura |
officer: Sr EVP & Controller |
130 MERCHANT STREET, HONOLULU HI 96813 |
| Barbara J Tanabe |
director |
130 MERCHANT ST 22ND FLR, HONOLULU HI 96813 |
| John C Erickson |
director |
1515 WEST 190TH STREET, SUITE 275, GARDENA CA 90248 |
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