Hudson City Bancorp (Hudson City Bancorp) Probability of Financial Distress (%) : 0.00% (As of May. 05, 2024)

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What is Hudson City 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, Hudson City Bancorp's Probability of Financial Distress (%) is 0.00%.

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 Hudson City Bancorp's Probability of Financial Distress (%)

For the Banks - Regional subindustry, Hudson City 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.

Hudson City Bancorp's Probability of Financial Distress (%) Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Hudson City Bancorp's Probability of Financial Distress (%) distribution charts can be found below:

* The bar in red indicates where Hudson City Bancorp's Probability of Financial Distress (%) falls into.

Hudson City 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

0.00

The Probability of Financial Distress (%) (PFD) was then obtianed by:

PFD	=	1	/	(1 + e^(-LPFD))	*	100%
	=	0.00%

The eight explanatory variables are:

1. NIMTAAVG = Net Income to Market Total Assets

NIMTAAVG	=	Net Income	/	Market Total Assets
	=	Net Income	/	(Market Cap + Total Liabilities)

*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

TLMTA

Total Liabilities

Market Total Assets

3. CASHMTA = Cash to Market Total Assets

For banks, CASHMTA is measured as:

CASHMTA

(Balance Sheet Cash And Cash Equivalents + Money Market Investments)

Market Total Assets

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

MB	=	Market Cap	/	Adjusted Book Equity
	=	Market Cap	/	(Total Stockholders Equity + 0.1 * ( Market Cap - Total Stockholders Equity))

8. PRICE

PRICE is measured as the log of the stock price, capped at log(15).

Hudson City Bancorp (NAS:HCBK) Probability of Financial Distress (%) Explanation

Like the Altman Z-Score, the PFD measures a company's bankruptcy risk in the upcoming year. 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.

Hudson City Bancorp Probability of Financial Distress (%) Related Terms

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Hudson City Bancorp (Hudson City Bancorp) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Hudson City Bancorp Inc (NAS:HCBK) » Definitions » Probability of Financial Distress (%)

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

https://www.hcsbonline.com

Hudson City Bancorp Inc is a Delaware corporation organized in 1999. It serves as the holding company of its only subsidiary, Hudson City Savings Bank. The asset of Hudson City Bancorp is its investment in Hudson City Savings Bank. The Company is a community and consumer-oriented retail savings bank offering traditional deposit products, residential real estate mortgage loans and consumer loans. The Company conducts its operations out of its corporate offices in Paramus in Bergen County, New Jersey and through 135 branches in the New York metropolitan area. It operates 97 branches located in 17 counties throughout the State of New Jersey. In New York State, it operates 10 branch offices in Westchester County, 12 branch offices in Suffolk County, 1 branch office each in Putnam and Rockland Counties and 5 branch offices in Richmond County "Staten Island". It also operates 9 branch offices in Fairfield County, Connecticut. The Company's traditional consumer products are conforming one- to four-family residential mortgages, time deposits, checking and savings accounts appeal to a broad customer base. In addition, it purchases mortgages and mortgage-backed securities and other securities issued by U.S. government-sponsored enterprises as well as other investments permitted by applicable laws and regulations. The Company faces intense competition both in making loans and attracting deposits in the market areas it serve. It competes with loans comes from commercial banks, savings institutions, mortgage banking firms, credit unions, finance companies, insurance companies and brokerage firms. The Company's loans are subject to federal and state laws and regulations.

Executives

Denis J Salamone	director, officer: Chairman and CEO	C/O HUDSON CITY BANCORP, INC., WEST 80 CENTURY ROAD, PARAMUS NJ 07652
Francesco S Rossi	officer: First Vice President	500 HILLS DRIVE, SUITE 300, BEDMINSTER NJ 07921
Golding Cornelius E	director	WEST 80 CENTURY ROAD, PARAMUS NJ 07652
Scott A Belair	director	1809 WALNUT STREET, PHILADELLPHIA PA 19103
William G Bardel	director	C/O HUDSON CITY BANCORP, INC., WEST 80 CENTURY ROAD, PARAMUS NJ 07652
Tracey A Dedrick	officer: Executive Vice President	C/O HUDSON CITY BANCORP, INC., PARAMUS NJ 07652
Anthony J Fabiano	director, officer: President and COO	99 PARK AVENUE, NEW YORK NY 10016
Mcintyre Kenneth A Jr	officer: Senior Vice President	C/O HUDSON CITY BANCORP, INC., WEST 80 CENTURY ROAD, PARAMUS NJ 07652
William John Cosgrove	director	20 BUTTONWOOD PLACE, UPPER SADDLE RIVER NJ 07458