What is International Bancshares 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, International Bancshares's Probability of Financial Distress (%) is 0.05%.
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 International Bancshares's Probability of Financial Distress (%)
For the Banks - Regional subindustry, International Bancshares'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.
International Bancshares's Probability of Financial Distress (%) Distribution in the Banks Industry
For the Banks industry and Financial Services sector, International Bancshares's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where International Bancshares's Probability of Financial Distress (%) falls into.
International Bancshares 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 |
| = | -7.67 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.05% |
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).
International Bancshares (International Bancshares) Business Description
Traded in Other Exchanges
N/A
Address
1200 San Bernardo Avenue, Laredo, TX, USA, 78042 - 1359
International Bancshares Corp is a financial holding company with bank subsidiaries that provide commercial and retail banking services, primarily in Texas and Oklahoma. The subsidiaries gather funds from various sources and invest these funds to earn a return. Fund gathering primarily takes the form of accepting demand and time deposits. The bank subsidiaries have historically focused on providing commercial banking services to small and medium-size businesses. The subsidiaries have increasingly transitioned to also providing consumer and retail banking, including mortgage lending. The company's strategy emphasizes customer service and expense control. The company generates net revenue primarily through net interest income.
Executives
| Sanchez Antonio R Jr |
director, 10 percent owner |
1360 POST OAK BLVD, SUITE 2400, HOUSTON TX 77056 |
| Diana G Zuniga |
director |
1200 SAN BERNARDO, 1200 SAN BERNARDO AVE, LAREDO TX 78040 |
| Dalia F Martinez |
officer: VICE PRESIDENT |
1200 SAN BERNARDO, 1200 SAN BERNARDO AVE, LAREDO TX 78042 |
| Rudolph Miles |
director |
1200 SAN BERNARDO, LAREDO TX 78040 |
| Anda Javier De |
director |
1200 SAN BERNARDO, LAREDO TX 78040 |
| Roberto R Resendez |
director |
1200 SAN BERNARDO, LAREDO TX 78040 |
| Judith I Wawroski |
officer: Treasurer/PAO |
1200 SAN BERNARDO, LAREDO TX 78040 |
| Julie L Tarvin |
officer: VICE PRESIDENT |
1200 SAN BERNARDO, LAREDO TX 78040 |
| R David Guerra |
director |
|
| Imelda Navarro |
director, officer: Executive Officer |
|
| Leonardo Salinas |
director |
PO BOX 1359, LAREDO TX 78040 |
| Larry A Norton |
director |
1200 SAN BERNARDO AVE., LAREDO TX 78040 |
| Hastings Daniel B Jr |
director |
P O BOX 1359, LAREDO TX 78040 |
| Dennis E Nixon |
director, officer: CEO |
P.O. BOX 1359, LAREDO TX 78040 |
| Douglas B Howland |
director |
1200 SAN BERNARDO AVE., LAREDO TX 78040 |
International Bancshares (International Bancshares) Headlines
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