What is Heritage Oaks 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, Heritage Oaks 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 Heritage Oaks Bancorp's Probability of Financial Distress (%)
For the Banks - Regional subindustry, Heritage Oaks 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.
Heritage Oaks Bancorp's Probability of Financial Distress (%) Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Heritage Oaks Bancorp's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Heritage Oaks Bancorp's Probability of Financial Distress (%) falls into.
Heritage Oaks 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
*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).
Heritage Oaks Bancorp (Heritage Oaks Bancorp) Business Description
Traded in Other Exchanges
N/A
Address
Heritage Oaks Bancorp is a California corporation organized in 1994 and registered as a bank holding company. The Company acquired all of the outstanding common stock of Heritage Oaks Bank (Bank) and its subsidiaries in 1994. The Bank is a community-oriented financial services firm that provides banking products and services to small and medium sized businesses and consumers. Products and services are offered primarily through 12 retail branches located on the Central Coast of California, in San Luis Obispo and Santa Barbara Counties and through other direct channels, including two loan production offices in Santa Barbara and Ventura Counties. The Bank offers to its commercial clients commercial loans secured by real estate, other commercial loans and lines of credit, agricultural loans, construction financing, other real estate loans and SBA loans. For consumers, the Bank offers residential mortgages, equity lines of credit and other consumer loans. Deposit products offered include personal and business checking and savings accounts, time deposit accounts, individual retirement accounts ("IRAs") and money market accounts. The Bank also offers online banking, mobile banking, wire transfers, safe deposit boxes, cashier's checks, traveler's checks, bank-by-mail, night depository services and other customary banking services. The Company's competitors include money center banks and large regional banks. Competition also includes other community-focused commercial banks. As a bank holding company, the Company is regulated under the Bank Holding Company Act ("BHC Act") and is subject to inspection, examination and supervision by the Federal Reserve. It is also subject to the California Financial Code, as well as limited oversight by the DBO and the FDIC.
Executives
| Timothy Joseph Stronks |
officer: Executive Vice President |
1222 VINE STREET, PASO ROBLES CA 93446 |
| Simone Lagomarsino |
director, officer: President / CEO |
1515 WEST 190TH STREET, SUITE 275, GARDENA CA 90248 |
| James J Lynch |
director, 10 percent owner |
PATRIOT FINANCIAL PARTNERS, LP, 2929 ARCH STREET, 27TH FLOOR, PHILADELPHIA PA 19104 |
| Michael E. Pfau |
director |
545 12TH STREET, PASO ROBLES CA 93446 |
| Michael James Morris |
director |
545 12TH STREET, PASO ROBLES CA 93445 |
| Stephen P Yost |
director |
2221 EAST ROSECRANS AVENUE SUITE 131 EL SEGUNDO CA 90245 |
| Howard Gould |
director |
3731 WILSHIRE BLVD., SUITE 1000, LOS ANGELES CA 90010 |
| Gregory A Gehlmann |
officer: SVP & Chief Bank Counsel |
TRICO BANCSHARES, 63 CONSTITUTION DRIVE, CHICO CA 95973 |
| J Mikesell Thomas |
10 percent owner |
51 WEST 52ND ST 14TH FL, NEW YORK NY 10019 |
| Mark G Merlo |
10 percent owner |
4500 MERCANTILE PLAZA DRIVE, SUITE 300, FORT WORTH TX 76137 |
| Eggemeyer John M Iii |
10 percent owner |
PO BOX 1329, RANCHO SANTA FE CA 92067 |
| John Pietrzak |
10 percent owner |
WEST COAST BANCORP, 5335 MEADOWS ROAD, SUITE 201, LAKE OSWEGO OR 97035 |
| Castle Creek Capital Partners Iv, Lp |
10 percent owner |
6051 EL TORDO, P.O. BOX 1329, RANCHO SANTA FE CA 92067 |
| Castle Creek Capital Iv Llc |
10 percent owner |
6051 EL TORDO, P.O. BOX 1329, RANCHO SANTA FE CA 92067 |
| Lonny Duane Robinson |
officer: Chief Financial Officer |
3435 WILSHIRE BLVD, SUITE 700, LOS ANGELES CA 90010 |
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