What is Glen Burnie 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, Glen Burnie Bancorp's Probability of Financial Distress (%) is 0.19%.
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 Glen Burnie Bancorp's Probability of Financial Distress (%)
For the Banks - Regional subindustry, Glen Burnie 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.
Glen Burnie Bancorp's Probability of Financial Distress (%) Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Glen Burnie Bancorp's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Glen Burnie Bancorp's Probability of Financial Distress (%) falls into.
Glen Burnie 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 |
| = | -6.27 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.19% |
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).
Glen Burnie Bancorp (Glen Burnie Bancorp) Business Description
Traded in Other Exchanges
N/A
Address
101 Crain Highway, S.E., Glen Burnie, MD, USA, 21061
Glen Burnie Bancorp is a bank holding company for The Bank of Glen Burnie. It offers retail and commercial banking services such as checking, savings, loans, mobile banking, online banking, wire transfer, ACH services, debit card, automated teller machines, and safe deposit boxes among others. The bank generates its revenue in the form of interest income. All of the revenues are earned within the United States.
Executives
| Mary L Wilcox |
director |
711 MAYO RD, GLEN BURNIE MD 21061 |
| Julie M Mussog |
director |
1105 MIAMI AVENUE, ANNAPOLIS MD 21403 |
| Stanford Hess |
director |
43 RIVER OAKS CIRCLE, BALTIMORE MD 21208 |
| Joan Rumenap |
director |
115 1ST AVENUE, SW, GLEN BURNIE MD 21061 |
| Harrison Norman E Jr |
director |
1 BARNABY COURT, TIMONIUM MD 21093 |
| John D. Long |
director, officer: Executive Vice President |
101 CRANE HIGHWAY, S.E., GLEN BURNIE MD 21061 |
| Edward L Maddox |
director |
323 ARBOR OAKS CT., MILLERSVILLE MD 21108 |
| John Melvin Wright |
officer: CFO |
1301 MERRITT BOULEVARD, DUNDALK MD 21222 |
| Kuethe F William Jr |
director, officer: President |
101 CRAIN HIGHWAY SE, GLEN BURNIE MD 21061 |
| John E Demyan |
director |
101 CRAIN HWY SE, GLEN BURNIE MD 21061 |
| Andrew Cooch |
director |
101 CRAIN HIGHWAY SE, GLEN BURNIE MD 21061 |
| Karen B Thowarth |
director |
201 THIRD AVE SW, GLEN BURNIE MD 21061 |
| Edward B Connelly |
officer: COO |
207 SANFORD AVENUE, CATONSVILLE MD 21228 |
| Scherer William N Sr |
director |
24 CRAIN HIGHWAY SW, GLEN BURNIE MD 21061 |
| Joyce Ann Ohmer |
officer: Senior Vice President |
300 COUNCIL OAK DRIVE, SEVERN MD 21144 |
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