What is QNB 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, QNB'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 QNB's Probability of Financial Distress (%)
For the Banks - Regional subindustry, QNB'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.
QNB's Probability of Financial Distress (%) Distribution in the Banks Industry
For the Banks industry and Financial Services sector, QNB's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where QNB's Probability of Financial Distress (%) falls into.
QNB 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 |
| = | -7.15 |
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).
QNB (QNBC) Business Description
Traded in Other Exchanges
N/A
Address
15 North Third Street, P.O. Box 9005, Quakertown, PA, USA, 18951-9005
QNB Corp is a bank holding company based in the United States. It operates through its wholly-owned subsidiary, QNB Bank which engages in the general commercial banking business and offering a full range of banking services to its customers. Its business activities involve attracting deposits and using funds in making commercial loans, residential mortgage loans, consumer loans, and purchasing investment securities. The loan portfolio includes commercial loans, such as commercial and industrial, construction, and loans secured by commercial real estate and residential real estate, and retail loans, including home equity loans and lines, and consumer loans. It generates revenue from net interest income.
Executives
| Jennifer L Mann |
director |
P. O. BOX 9005, QUAKERTOWN PA 18951 |
| Randy S. Bimes |
director |
P.O. BOX 9005, QUAKERTOWN PA 18951-9005 |
| Laurie Bergman |
director |
460 NORTH GULPH ROAD, KING OF PRUSSIA PA 19406 |
| Ranajoy Ray-chaudhuri |
director |
PO BOX 9005, QUAKERTOWN PA 18951-9005 |
| Brown Kenneth F Jr |
director |
P.O. BOX 9005, QUAKERTOWN PA 18951 |
| Dennis Helf |
director |
P.O. BOX 9005, QUAKERTOWN PA 18951 |
| Thomas J Bisko |
director, officer: President/CEO |
P.O. BOX 9005, QUAKERTOWN PA 18951 |
| Autumn R Bayles |
director |
QNB CORP, P.O. BOX 9005, QUAKERTOWN PA 18951 |
| W Randall Stauffer |
director |
P.O. BOX 9005, QUAKERTOWN PA 18951 |
| Scott R Stevenson |
director |
P.O. BOX 9005, QUAKERTOWN PA 18951 |
| Covelens Courtney Lee |
officer: EVP, Chief Retail Officer |
PO BOX 9005, QUAKERTOWN PA 18951-9005 |
| Christina S Mcdonald |
officer: EVP, Marketing |
523 KINGSTON ROAD, ORELAND PA 19075 |
| Jeffrey Lehocky |
officer: EVP, Chief Financial Officer |
15 NORTH THIRD STREET, P.O. BOX 9005, QUAKERTOWN PA 18951-9005 |
| Mary Elizabeth Liddle |
officer: SVP Chief Acc Off, acting CFO |
P.O. BOX 9005, QUAKERTOWN PA 18951-8005 |
| David W. Freeman |
officer: President/COO |
P.O. BOX 9005, QUAKERTOWN PA 18951 |
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