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Southern Missouri Bancorp (Southern Missouri Bancorp) Probability of Financial Distress (%) : 0.10% (As of Apr. 29, 2024)


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What is Southern Missouri 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, Southern Missouri Bancorp's Probability of Financial Distress (%) is 0.10%.

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 Southern Missouri Bancorp's Probability of Financial Distress (%)

For the Banks - Regional subindustry, Southern Missouri 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.


Southern Missouri Bancorp's Probability of Financial Distress (%) Distribution in the Banks Industry

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

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



Southern Missouri 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
=-6.88

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

PFD=1/(1 + e^(-LPFD))*100%
=0.10%

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:


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).


Southern Missouri Bancorp  (NAS:SMBC) 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.


Southern Missouri Bancorp Probability of Financial Distress (%) Related Terms

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Southern Missouri Bancorp (Southern Missouri Bancorp) Business Description

Industry
Traded in Other Exchanges
N/A
Address
2991 Oak Grove Road, Poplar Bluff, MO, USA, 63901
Southern Missouri Bancorp Inc is a us-based holding company for Southern Missouri Savings Bank. The principal business of the bank consists of attracting retail deposits from the general public and using such deposits along with wholesale funding from the Federal Home Loan Bank of Des Moines, and to a lesser extent, brokered deposits, to invest in one- to four-family residential mortgage loans, mortgage loans secured by commercial real estate, commercial non-mortgage business loans, and consumer loans. It is engaged in providing the range of banking and financial services to individuals and corporate customers in its market areas. The company derives revenue principally from interest earned on loans, debt securities, bank card interchange fees, loan late charges and another fee income.
Executives
Stefan Chkautovich officer: Chief Financial Officer 2991 OAK GROVE RD, POPLAR BLUFF MO 639012
Dennis C Robison director C/O SOUTHERN MISSOURI BANCORP INC, 531 VINE STREET, POPLAR BLUFF MO 63901
Matthew T Funke officer: Chief Financial Officer C/O SOUTHERN MISSOURI BANCORP INC, 531 VINE STREET, POPLAR BLUFF MO 63901
Daniel Lee Jones director 2991 OAK GROVE RD., POPLAR BLUFF MO 63901
Brett Dorton officer: EVP, Chief Strategies Officer C/O SOUTHERN MISSOURI BANCORP, INC., 2991 OAK GROVE ROAD, POPLAR BLUFF MO 63901
Greg A Steffens director, officer: President C/O SOUTHERN MISSOURI BANCORP INC, 531 VINE STREET, POPLAR BLUFF MO 63901-7330
William E Young director 2991 OAK GROVE RD, POPLAR BLUFF MO 63901
David L Mcclain director 2991 OAK GROVE RD, POPLAR BLUFF MO 63901
Lance K Greunke officer: Executive Vice President 2991 OAK GROVE ROAD, POPLAR BLUFF MO 63901
Charles R Love director 1469 CO. RD. 468, POPLAR BLUFF MO 63901
Sammy A Schalk director C/O SOUTHERN MISSOURI BANCORP INC, 531 VINE STREET, POPLAR BLUFF MO 63901-7330
Martin Weishaar officer: Chief Legal Officer SOUTHERN MISSOURI BANCORP, INC., 2991 OAK GROVE ROAD, POPLAR BLUFF MO 63901
Douglas Bagby director C/O SOUTHERN MISSOURI BANCORP INC, 531 VINE STREET, POPLAR BLUFF MO 63901-7330
Mark E Hecker officer: EVP, Chief Credit Officer 16 WEST FRANKLIN STREET, LIBERTY MO 64068
Richard Windes officer: Chief Lending Officer C/O SOUTHERN MISSOURI BANCORP, INC., 2991 OAK GROVE ROAD, POPLAR BLUFF MO 63901