What is ChoiceOne Financial Services 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, ChoiceOne Financial Services's Probability of Financial Distress (%) is 0.11%.
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 ChoiceOne Financial Services's Probability of Financial Distress (%)
For the Banks - Regional subindustry, ChoiceOne Financial Services'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.
ChoiceOne Financial Services's Probability of Financial Distress (%) Distribution in the Banks Industry
For the Banks industry and Financial Services sector, ChoiceOne Financial Services's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where ChoiceOne Financial Services's Probability of Financial Distress (%) falls into.
ChoiceOne Financial Services 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 |
| = | -6.85 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.11% |
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).
ChoiceOne Financial Services (ChoiceOne Financial Services) Business Description
Traded in Other Exchanges
N/A
Address
109 East Division Street, Sparta, MI, USA, 49345
ChoiceOne Financial Services Inc is a full-service banking institution. It is engaged in the business of providing personal and business banking solutions, borrowing solutions, and treasury notes and bonds services. The bank's product and services portfolio consist of time, savings and demand deposits, safe deposit services, automated transaction machine services, commercial and consumer loans, commercial lending to business, industry, agricultural, construction, inventory, and real estate categories. Its primary market area is Kent, Muskegon, Newaygo, and Ottawa counties in western Michigan, and Lapeer, Macomb, and St. Clair counties in southeastern Michigan in the communities where the Bank's respective offices are located.
Executives
| Greg L. Armock |
director |
109 EAST DIVISION STREET, SPARTA MI 49345 |
| Curt E Coulter |
director |
109 EAST DIVISION STREET, SPARTA MI 49345 |
| Burke Michael J Jr |
director, officer: President |
109 EAST DIVISION STREET, SPARTA MI 49345 |
| Essex Bruce John Jr |
director |
109 EAST DIVISION STREET, SPARTA MI 49345 |
| Gregory A Mcconnell |
director |
109 EAST DIVISION STREET, SPARTA MI 49345 |
| Adom Greenland |
officer: S.V.P. - ChoiceOne Bank (Sub.) |
109 EAST DIVISION STREET, SPARTA MI 49345 |
| Bradley F. Mcginnis |
director |
109 EAST DIVISION STREET, SPARTA MI 49345 |
| Jack Hendon |
director |
109 EAST DIVISION STREET, SPARTA MI 49345 |
| Eric E Burrough |
director |
109 EAST DIVISION STREET, SPARTA MI 49345 |
| Michelle M Wendling |
director |
109 EAST DIVISION STREET, SPARTA MI 49345 |
| David J Churchill |
director |
109 EAST DIVISION STREET, SPARTA MI 49345 |
| Kelly Potes |
officer: V.P. - ChoiceOne Insur. (Sub.) |
109 EAST DIVISION STREET, SPARTA MI 49345 |
| Lee A Braford |
officer: VP-ChoiceOne Bank (Subsidiary) |
109 EAST DIVISION STREET, SPARTA MI 49345 |
| Peter Batistoni |
officer: S.V.P. - ChoiceOne Bank (Sub.) |
109 EAST DIVISION STREET, SPARTA MI 49345 |
| Robert M Jamula |
officer: S.V.P. - ChoiceOne Bank (Sub) |
109 EAST DIVISION STREET, SPARTA MI 49345 |
ChoiceOne Financial Services (ChoiceOne Financial Services) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
COFS has been successfully added to your