What is Polonia 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, Polonia 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 Polonia Bancorp's Probability of Financial Distress (%)
For the Banks - Regional subindustry, Polonia 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.
Polonia Bancorp's Probability of Financial Distress (%) Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Polonia Bancorp's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Polonia Bancorp's Probability of Financial Distress (%) falls into.
Polonia 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
*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).
Polonia Bancorp (Polonia Bancorp) Business Description
Traded in Other Exchanges
N/A
Address
Polonia Bancorp Inc is a Maryland corporation that was incorporated in August 2011. The Company is headquartered in Huntingdon Valley and operates as a community-oriented financial institution dedicated to serving the financial services needs of consumers and businesses within its market areas. The Bank is engaged mainly in the business of attracting deposits from the general public and using using such funds to originate loans. Polonia Bank also maintains an investment portfolio. Polonia Bank's primary federal regulator is the Office of the Comptroller of the Currency (OCC). Its loan portfolio consists of one- to four-family residential real estate loans, multi-family and nonresidential real estate loans, home equity loans, commercial loans and consumer loans. Currently, it offers only fixed-rate mortgage products. The one- to four-family residential real estate loans are normally originated with up to 30-year terms, such loans typically remain outstanding for substantially shorter periods because borrowers often prepay their loans in full upon sale of the property pledged as security or upon refinancing the original loan. The multi-family and nonresidential real estate loans are generally secured by apartment buildings, small office buildings and owner-occupied properties. It offers loans with adjustable interest rates tied to a market index in its market area. It offers consumer loans in the form of loans secured by savings accounts or time deposits. The Company has the legal authority to invest in various types of liquid assets, including U.S. Treasury obligations, securities of various federal agencies and municipal governments, corporate securities, mortgage-backed securities, deposits at the FHLB of Pittsburgh and time deposits of federally insured institutions. The Company faces competition for the attraction of deposits and origination of loans. The Company's direct competition for deposits has historically come from the several financial institutions operating in its market areas and, to a lesser extent, from other financial service companies such as brokerage firms, credit unions and insurance companies. The Company is subject to regulation, supervision and examination by the Federal Reserve Board and the OCC, its main federal regulator, and by the FDIC, as insurer of its deposits.
Executives
| Kevin J Gallagher |
officer: Chief Lending Officer of Sub |
3993 HUNTINGDON PIKE, 3RD FLOOR HUNTINGDON VALLEY PA 19006 |
| Joseph Svetik |
director, officer: President and CEO |
200 PALMER STREET, STROUDSBURG PA 18360 |
Polonia Bancorp (Polonia Bancorp) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
PBCP has been successfully added to your