What is IBERIABANK 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, IBERIABANK's Probability of Financial Distress (%) is 50.00%.
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 IBERIABANK's Probability of Financial Distress (%)
For the Banks - Regional subindustry, IBERIABANK'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.
IBERIABANK's Probability of Financial Distress (%) Distribution in the Banks Industry
For the Banks industry and Financial Services sector, IBERIABANK's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where IBERIABANK's Probability of Financial Distress (%) falls into.
IBERIABANK 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% |
| = | 50.00% |
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).
IBERIABANK Business Description
Traded in Other Exchanges
N/A
Address
200 West Congress Street, Lafayette, LA, USA, 70501
Iberiabank is a bank holding company that concentrates on commercial banking in the southeastern United States. In addition, the company provides other comprehensive financial services, including retail banking, private banking, and mortgages. The company's strategy emphasizes growth, organically and through acquisitions. The company also emphasizes efficient operations through expense reduction and revenue enhancement. Iberiabank, the company's bank subsidiary, has hundreds of locations. Most of its income is net interest income. Nearly half of its commercial loan portfolio is in real estate.
Executives
| Kemp Sr James Michael |
director |
200 WEST CONGRESS STREET, LAFAYETTE LA 70501 |
| Rosa Sugranes |
director |
2975 N.W. 77TH AVE, DORAL FL 33132 |
| Monica R. Sylvain |
officer: EVP, Chief Diversity Officer |
200 WEST CONGRESS STREET, LAFAYETTE LA 70501 |
| Nicolas Young |
officer: EVP, CHIEF CREDIT OFFICER |
200 WEST CONGRESS STREET, LAFAYETTE LA 70501 |
| Fernando Perez-hickman |
officer: VICE CHAIRMAN |
200 WEST CONGRESS STREET, LAFAYETTE LA 70501 |
| Terry Lawson Akins |
officer: CHIEF RISK OFFICER |
200 WEST CONGRESS STREET, LAFAYETTE LA 70501 |
| Eli Jones |
director |
200 WEST CONGRESS STREET, LAFAYETTE LA 70501 |
| Ricky E Maples |
director |
200 WEST CONGRESS STREET, LAFAYETTE LA 70501 |
| Cooper Angus R Ii |
director |
200 WEST CONGRESS STREET, LAFAYETTE LA 70501 |
| J Randolph Bryan |
officer: EVP, CHIEF RISK OFFICER |
200 WEST CONGRESS STREET, LAFAYETTE LA 70501 |
| Michael Scott Price |
officer: Chief Acctg Officer,Controller |
200 WEST CONGRESS STREET, LAFAYETTE LA 70501 |
| O Miles Pollard |
director |
200 W CONGRESS ST, LAFAYTTE LA 70502 |
| John N Casbon |
director |
200 WEST CONGRESS STREET, LAFAYETTE LA 70501 |
| William H Fenstermaker |
director |
200 WEST CONGRESS STREET, LAFAYETTE LA 70501 |
| Breaux Ernest P Jr |
director |
200 WEST CONGRESS STREET, LAFAYETTE LA 70501 |
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