What is NBT 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, NBT Bancorp'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 NBT Bancorp's Probability of Financial Distress (%)
For the Banks - Regional subindustry, NBT 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.
NBT Bancorp's Probability of Financial Distress (%) Distribution in the Banks Industry
For the Banks industry and Financial Services sector, NBT Bancorp's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where NBT Bancorp's Probability of Financial Distress (%) falls into.
NBT 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 |
| = | -7.08 |
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).
NBT Bancorp (NBT Bancorp) Business Description
Traded in Other Exchanges
N/A
Address
52 South Broad Street, Norwich, NY, USA, 13815
NBT Bancorp Inc is a financial holding company that operates through its subsidiaries. The company's principal sources of revenue include management fees and dividends it receives through its subsidiaries. NBT Bank is a full-service community bank offering a full range of retail and commercial banking products, as well as trust and investment services. Loans products include consumer loans, home equity loans, mortgages, business banking loans, and commercial loans. Nearly half of its loan portfolio is in commercial loans. The bank serves individuals, corporations, and municipalities, and operates scores of locations throughout the states of New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, and Maine.
Executives
| Jason David Brown |
director |
52 SOUTH BROAD STREET, NORWICH NY 13815 |
| Cantele Richard J Jr |
officer: EVP/Strategic Integration |
|
| Amy Wiles |
officer: EVP, Chief Risk and Credit |
52 SOUTH BROAD STREET, NORWICH NY 13815 |
| Timothy E Delaney |
director |
52 SOUTH BROAD STREET, NORWICH NY 13815 |
| Scott Allen Kingsley |
officer: EVP & Chief Financial Officer |
8365 GLEN EAGLE DRIVE, MANLIUS NY 13104 |
| Heidi M Hoeller |
director |
52 SOUTH BROAD STREET, NORWICH NY 13815 |
| Shaunastar Hyle |
officer: EVP, Consumer Lending |
52 SOUTH BROAD STREET, NORWICH NY 13815 |
| Cynthia A Smaniotto |
officer: SVP, Chief HR Officer |
52 SOUTH BROAD STREET, NORWICH NY 13815 |
| Martin Randolph Sparks |
officer: EVP,General Counsel,Secretary |
52 SOUTH BROAD STREET, NORWICH NY 13815 |
| Martin A Dietrich |
director, other: Chairman, NBT Bancorp |
52 SOUTH BROAD STREET, NORWICH NY 13815 |
| Ruth H Mahoney |
officer: EVP/President of Wealth Mgmt |
52 SOUTH BROAD STREET, NORWICH NY 13815 |
| Matthew K Durkee |
officer: EVP / President of New England |
52 SOUTH BROAD STREET, NORWICH NY 13815 |
| Jack H Webb |
officer: EVP - Strategic Support |
C/O NBT BANCORP INC., 52 SOUTH BROAD STREET, NORWICH NY 13815 |
| Johanna R Ames |
director |
52 SOUTH BROAD STREET, NORWICH NY 13815 |
| Robinson V Daniel Ii |
director |
52 SOUTH BROAD STREET, NORWICH NY 13815 |
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