What is Republic 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, Republic Bancorp's Probability of Financial Distress (%) is 0.07%.
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 Republic Bancorp's Probability of Financial Distress (%)
For the Banks - Regional subindustry, Republic 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.
Republic Bancorp's Probability of Financial Distress (%) Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Republic Bancorp's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Republic Bancorp's Probability of Financial Distress (%) falls into.
Republic 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 |
| = | -7.21 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.07% |
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).
Republic Bancorp (Republic Bancorp) Business Description
Traded in Other Exchanges
N/A
Address
601 West Market Street, Louisville, KY, USA, 40202
Republic Bancorp Inc operates as a financial institution that provides both traditional and non-traditional banking products through five reportable segments. It has traditional banking, warehouse, mortgage banking, Tax Refund Solutions (TRS), and Republic Credit Solutions (RCS) business segments. The business activities of these segments include retail mortgage lending, commercial lending, construction and land development lending, internet lending, correspondent lending, and indirect lending and also private banking, treasury management services, internet, and mobile banking, bank acquisitions, short-term revolving credit facilities, fixed-term residential real estate loans and receipt and payment of federal and state tax refund products under the TRS division.
Executives
| Juan Montano |
officer: EVP, Chief Mtg Banking Officer |
601 W MARKET ST, LOUISVILLE KY 40202 |
| Steven E Deweese |
officer: EVP, Dir of Retail Banking |
601 WEST MARKET STREET, LOUISVILLE KY 40202 |
| Christy Ames |
officer: EVP, General Counsel |
601 W MARKET ST, LOUISVILLE KY 40202 |
| Scott Trager |
director, 10 percent owner, officer: Vice Chairman |
601 W MARKET ST, LOUISVILLE KY 40202 |
| Vidya Ravichandran |
director |
601 W MARKET ST, LOUISVILLE KY 40202 |
| Jennifer N Green |
director |
601 W MARKET ST, LOUISVILLE KY 40202 |
| Timothy S. Huval |
director |
500 W. MAIN STREET, LOUISVILLE KY 40202 |
| Trager Trust Of 2012 |
10 percent owner |
601 W MARKET ST, LOUISVILLE KY 40202 |
| Steve Trager |
director, 10 percent owner, officer: President and CEO |
601 W MARKET ST, LOUISVILLE KY 40202 |
| Laura M Douglas |
director |
601 W MARKET ST, LOUISVILLE KY 40202 |
| Logan Pichel |
director, officer: President & CEO, Republic Bank |
601 W MARKET ST, LOUISVILLE KY 40202 |
| Jeff Starke |
officer: EVP, Chief Information Officer |
601 W MARKET ST, LOUISVILLE KY 40202 |
| George Iii Nichols |
director |
601 W MARKET ST, LOUISVILLE KY 40202 |
| Margaret S Wendler |
officer: EVP & Chief HR Officer |
601 W MARKET ST, LOUISVILLE KY 40202 |
| David P Feaster |
director |
601 W MARKET ST, LOUISVILLE KY 40202 |
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