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, Patriot National Bancorp's Probability of Financial Distress (%) is 0.22%.
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.
Patriot National Bancorp (NAS:PNBK) 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.
Patriot National Bancorp Probability of Financial Distress (%) Related Terms
PNBK vs BEOB, WRIV, FFDF: Probability of Financial Distress (%) Comparison
For the Banks - Regional subindustry, Patriot National 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.
Patriot National Bancorp Probability of Financial Distress (%) vs Banks Industry
For the Banks industry and Financial Services sector, Patriot National Bancorp's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Patriot National Bancorp's Probability of Financial Distress (%) falls into.
Patriot National 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
=
-6.11
The Probability of Financial Distress (%) (PFD) was then obtianed by:
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).
What does a Probability of Financial Distress (%) of 0.22% mean?
Patriot National Bancorp (PNBK) has a Probability of Financial Distress (%) of 0.22% as of Jun. 25, 2026.
Is Patriot National Bancorp's Probability of Financial Distress (%) too high?
Patriot National Bancorp's current Probability of Financial Distress (%) is 0.22%. Overall, Patriot National Bancorp has a GF Score™ of 37/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Patriot National Bancorp's Probability of Financial Distress (%) compare to BEOB and WRIV?
Patriot National Bancorp's Probability of Financial Distress (%) of 0.22% can be compared against companies in the Banks industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Probability of Financial Distress (%) for a Banks company?
A good Probability of Financial Distress (%) depends on the Banks industry context. However, Probability of Financial Distress (%) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Probability of Financial Distress (%) mean?
A high Probability of Financial Distress (%) can signal that a stock is expensive relative to its fundamentals. Patriot National Bancorp's current Probability of Financial Distress (%) is 0.22%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Patriot National Bancorp stock overvalued right now?
Based on GuruFocus' analysis, Patriot National Bancorp (PNBK) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.13, compared to a current price of $1.06 — trading 715.3% above its estimated fair value. The current Probability of Financial Distress (%) is 0.22%. Patriot National Bancorp's overall GF Score™ is 37/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Probability of Financial Distress (%) calculated?
Probability of Financial Distress (%) is calculated from a company's financial statements. For Patriot National Bancorp (PNBK), the current Probability of Financial Distress (%) is 0.22% as of Jun. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Patriot National Bancorp (PNBK) Overvalued in 2026?
Based on GuruFocus' analysis, Patriot National Bancorp stock appears to be overvalued.
The current stock price of $1.06 is trading 715.3% above its estimated GF Value™ of $0.13.
GuruFocus considers Patriot National Bancorp to be Significantly Overvalued.
Key valuation signals for PNBK:
Probability of Financial Distress (%): 0.22%
GF Value™: $0.13 vs. price of $1.06 (715.3% above fair value)
No single metric tells the full story. See the PNBK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Patriot National Bancorp Inc provides consumer and commercial banking services to individuals, small and medium-sized businesses, professionals, and municipalities in Fairfield and New Haven Counties in Connecticut and Westchester County, New York. Its products include checking accounts, savings accounts, money market accounts, time certificates of deposit, and individual retirement accounts. The Bank's lending portfolio is comprised of commercial mortgage and construction loans, commercial loans, home improvement loans, home equity lines of credit, and other personal loans. In addition, the Bank offers bank checks, money orders, automated teller machines, interactive teller machines, online and mobile banking, credit cards, and debit cards.
37GF Score
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