------------------------------------------ FINANCIAL ANALYSIS PACKAGE Ver. 2.0 (c) Copyright Peter L. Fishback 1988, 1989 Part of the T-MAPP Software Package ------------------------------------------ Peter L. Fishback P.O. Box 635 Vienna, VA 22183 The FINANCIAL ANALYSIS PACKAGE program is copyrighted; however, you may make unmodified copies of the FINANCIAL ANALYSIS PACKAGE program and documentation for your own use. Complete documentation, including source BASIC code, is available for registered users of this program. Registered users may modify the source code for their own personal use. License Agreement You have a non-transferable, non-exclusive license to the FINANCIAL ANALYSIS PACKAGE program, subject to the terms and conditions of this License Agreement. As a non-registered user you may not modify, or alter the program in any manner, or combine it with other programs. The program and its documentation are copyrighted; however you may make archival copies of the program for your personal use. The program is provided "as is" without warranty of any kind, whether express or implied, including (but not limited to), any implied warranties of merchantability or fitness for a particular purpose. Peter L. Fishback does not warrant that the functions contained in the program will meet the user's requirements or that the operation of the program will be uninterrupted or error free. The entire risk as to the quality and performance of the program is with the user. Should the program prove defective, the user assumes the entire cost of all necessary servicing, repair, or correction. In no event will Peter L. Fishback be liable to the user for any damages, including any lost profits, lost savings, damages to other software or data, or other direct, incidental, or consequential damages arising out of the use or inability to use the program. If the user transfers possession of any copy, modification, or merged portion of the program to another party without the express written consent of Peter L. Fishback, then the user's license is automatically terminated. Files Description The program consists of the following files: a.bat Startup batch file startup.doc Initial screen display brun20.exe Microsoft Corporation's run-time module for QuickBASIC executable program files nnnnnnnn.exe One or more program files Also provided are the following informational files: programs.lst Description of all programs available in the T-MAPP program package (24 programs). readme.fil File containing this material. The program files were written in BASIC and compiled with QuickBASIC, (c) Copyright Microsoft Corporation 1982 - 1987. The program will run under MS-DOS and PC-DOS, Versions 2.0 or later. MS-DOS is a registered trademark of the Microsoft Corporation. PC-DOS is a registered trademark of the International Business Machines Corporation. 2 FINANCIAL ANALYSIS PACKAGE This program package is an aid in analyzing certain financial transactions (futures, options, interest rate swaps, and forwards), as well as an aid in general asset/liability management evaluation. The package is designed for analysis of banks and thrifts, though some of the sub-programs may be applicable to the analysis of other types of firms. The package is menu driven and contains a sub-menu for each type of analysis. Each type of analysis (such as financial forwards, futures, etc.), is a separate program file, or group of files. Capital Adequacy Test Evaluating Investments in Branches Rate-Volume-Mix Analysis A/L Management Pricing Financial Assets and Liabilities Required Rate on New Assets/Liabilities Required Rate on New Real Estate Loans Portfolio Yield/Cost for a Period Real Estate Loan Portfolio Yield for a Period External Capital Financing Needs External Capital Financing Needs Required Annual Growth Rate Required Annual Return on Assets End of Year Capital Ratio Duration Based Interest Rate Risk Management Change in Price/Value of an Asset/Liability Duration Gap of Equity Percentage Change in Equity Value New Market Value of Equity 3 Financial Futures T-Bond / T-Note Conversion Factor Short Strategy - Stack CD and T-Bill Contract Yield Financial Options T-Bond Futures (CDI) T-Bond Futures (Estimated Cash Price) CD and T-Bill Futures Interest Rate Swaps Interest Rate Swaps Interest Rate Cap Contracts Interest Rate Cap Contracts with Collars * Program operation is commenced by * * * * entering A then . * For operation from a hard disk, or high-density floppy disk the following files should be copied to the appropriate subdirectory or disk: A.BAT STARTUP.DOC BRUN20.EXE FINMENU.EXE ALMGMT.EXE ALMGMTB.EXE ALMGMT2.EXE RVM.EXE RVM2.EXE BRANCHES.EXE FUTURES.EXE OPTIONS.EXE SWAPS.EXE NETWORTH.EXE 4 For operation from a 360k floppy drive system, create two operating disks. The first disk should have the following files: A.BAT STARTUP.DOC BRUN20.EXE FINMENU.EXE This disk will be known as the system disk. The second disk, the program disk, should have the following files: A.BAT FINMENU.EXE ALMGMT.EXE ALMGMTB.EXE ALMGMT2.EXE RVM.EXE RVM2.EXE BRANCHES.EXE FUTURES.EXE OPTIONS.EXE SWAPS.EXE NETWORTH.EXE Note that both disks should have the A.BAT and the FINMENU.EXE files. To run the program package from a single drive insert the system disk, disk one, into the operational drive. Then type A . After the main menu is displayed replace the system disk with the program disk (the second disk you prepared). When in data input field mode, ^C will terminate the program. In other modes ^Break will terminate the program. In most cases you can return to previous input screens with the or key. 5 DATA INPUT FORMS CAPITAL ADEQUACY TEST FHA/VA Loans $ _ _ , _ _ _ , _ _ _ Conventional Home Loans _ _ , _ _ _ , _ _ _ Apartment Loans _ _ , _ _ _ , _ _ _ Loans on Other Improved RE _ _ , _ _ _ , _ _ _ ADC Loans _ _ , _ _ _ , _ _ _ Mortgage-Backed Securities _ _ , _ _ _ , _ _ _ Mortgage Loan Contra Items < _ _ , _ _ _ , _ _ _ > Consumer Loans (other than those secured by deposits) _ _ , _ _ _ , _ _ _ Business Loans _ _ , _ _ _ , _ _ _ Non-Mortgage Contra Items < _ _ , _ _ _ , _ _ _ > Repossessed Property _ _ , _ _ _ , _ _ _ Real Estate Investments _ _ , _ _ _ , _ _ _ Cash and Deposits _ _ , _ _ _ , _ _ _ Investment Securities _ _ , _ _ _ , _ _ _ Fixed Assets, Net _ _ , _ _ _ , _ _ _ Subsidiaries _ _ , _ _ _ , _ _ _ Other Assets, Excluding Accrued Interest _ _ , _ _ _ , _ _ _ 6 ASSET/LIABILITY MANAGEMENT Pricing Financial Assets and Liabilities Required Rate on New Assets/Liabilities Portfolio Growth Rate for the Planning Period _ _ Percent of Assets/Liabilities to Mature in the Planning Period _ _ Current Portfolio Yield/Cost _ _ . _ _ Targeted (interest/average balance) for Period _ _ . _ _ Pricing Financial Assets and Liabilities Required Rate on New Real Estate Loans Long Term, Fixed Rate Loans < 8.00 % _ _ , _ _ _ , _ _ _ 8 - 9.99 _ _ , _ _ _ , _ _ _ 10 - 11.99 _ _ , _ _ _ , _ _ _ 12 - 13.99 _ _ , _ _ _ , _ _ _ 14 - 15.99 _ _ , _ _ _ , _ _ _ 16 + _ _ , _ _ _ , _ _ _ Average Interest Rate, Long Term, Fixed Rate _ _ . _ _ % Amount of All Other Real Estate Loans _ _ , _ _ _ , _ _ _ Average Interest Rate _ _ . _ _ % Percent of Long Term, Fixed < 8.00 % _ _ Rate Loans to Mature During the Planning Period 8 - 9.99 _ _ 10 - 11.99 _ _ 12 - 13.99 _ _ 14 - 15.99 _ _ 16 + _ _ 7 Percent of All Other Real Estate Loans to Mature During the Planning Period _ _ Targeted (interest / average balance) for the Period _ _ . _ _ _ % Pricing Financial Assets and Liabilities Portfolio Yield / Cost for a Period Portfolio Growth Rate for the Planning Period _ _ _ % Percent of Portfolio to Mature During the Planning Period _ _ _ % Current Portfolio Yield/Cost _ _ . _ _ % Interest Rate on New Assets/Liabilities _ _ . _ _ % Pricing Financial Assets and Liabilities Real Estate Loan Portfolio Yield for a Period Long Term, Fixed Rate Loans < 8.00 % _ _ , _ _ _ , _ _ _ 8 - 9.99 _ _ , _ _ _ , _ _ _ 10 - 11.99 _ _ , _ _ _ , _ _ _ 12 - 13.99 _ _ , _ _ _ , _ _ _ 14 - 15.99 _ _ , _ _ _ , _ _ _ 16 + _ _ , _ _ _ , _ _ _ Average Interest Rate, Long Term, Fixed Rate Loans _ _ . _ _ % Aggregate Balance, Other Real Estate Loans _ _ , _ _ _ , _ _ _ Average Interest Rate, Other Real Estate Loans _ _ . _ _ % 8 Percent of Long Term, Fixed < 8.00 % _ _ Rate Loans to Mature During the Planning Period 8 - 9.99 _ _ 10 - 11.99 _ _ 12 - 13.99 _ _ 14 - 15.99 _ _ 16 + _ _ Percent of All Other Real Estate Loans to Mature During the Planning Period _ _ Average Interest Rate on New Real Estate Loans _ _ . _ _ _ % External Capital Financing Needs Annual Growth Rate _ _ % Number of Years in Planning Period _ _ Desired Capital Ratio at End _ _ . _ % Dividend Payout Rate _ _ % Annual Return on Assets (basis points) _ _ _ External Capital Financing Needs Required Annual Growth Rate Total Assets at BOY _ _ , _ _ _ , _ _ _ Desired Capital Ratio at EOY _ _ . _ % Capital Ration at BOY _ _ . _ % Dividend Payout Ratio _ _ . _ % Annual Return on Assets (basis points) _ _ _ 9 External Capital Financing Needs Required Annual Return on Assets Annual Growth Rate _ _ % Capital Ratio at BOY _ _ . _ % Capital Ratio at EOY _ _ . _ % Dividend Payout Ratio _ _ % External Capital Financing Needs End of Year Capital Ratio Capital Ratio at BOY _ _ . _ % Return on Assets (basis points) _ _ _ Annual Growth Rate _ _ % Dividend Payout Ratio _ _ % Duration Based Interest Rate Risk Measurement Change in Price/Value Duration of the Asset/Liability _ _ . _ Change in Market Interest Rate (basis points) _ _ _ Current Market Interest Rate _ _ . _ % Number of Payments per Year _ _ _ Duration Based Interest Rate Risk Measurement Duration Gap of Equity Market Value of Assets $ _ _ , _ _ _ , _ _ _ Duration of Assets _ _ . _ Market Value of Liabilities $ _ _ , _ _ _ , _ _ _ Duration of Liabilities _ _ . _ 10 Duration Based Interest Rate Risk Measurement Percentage Change in Equity Value Market Value of Assets $ _ _ , _ _ _ , _ _ _ Duration of Assets _ _ . _ Market Value of Liabilities $ _ _ , _ _ _ , _ _ _ Duration of Liabilities _ _ . _ Change in Prevailing Interest Rates (basis points) _ _ _ Duration Based Interest Rate Risk Measurement New Value of Equity Market Value of Assets $ _ _ , _ _ _ , _ _ _ Duration of Assets _ _ . _ Market Value of Liabilities $ _ _ , _ _ _ , _ _ _ Duration of Liabilities _ _ . _ Change in Prevailing Interest Rates (basis points) _ _ _ 11 INVSETMENTS IN BRANCHES Cost to Open Branch $ _ _ _ , _ _ _ Targeted, Stabilized Savings Base _ , _ _ _ , _ _ _ Number of Years to Reach Target (maximum of 16) _ _ Annual Inflation Rate During Period _ _ % Required, Annual After-Tax ROE _ _ . _ % Annual Effective Income Tax Rate _ _ % Fixed Cash Operating Expenses, 1st Year $ _ _ _ , _ _ _ Targeted Annual Operating Expenses as a Percent of Total Assets _ . _ % Required Liquidity, Percent of Savings _ _ % Yield Spread, Loans - COS (basis points) _ _ _ Targeted Other Annual Operating Income as a Percent of Total Assets _ _ . _ % 12 RATE - VOLUME - MIX ANALYSIS Balances: 2nd Previous Previous Current Real Estate Loans - Type 1 __,___,___ __,___,___ __,___,___ Type 2 __,___,___ __,___,___ __,___,___ Type 3 __,___,___ __,___,___ __,___,___ Business Loans __,___,___ __,___,___ __,___,___ Consumer Loans __,___,___ __,___,___ __,___,___ Short Term Securities __,___,___ __,___,___ __,___,___ Long Term Securities __,___,___ __,___,___ __,___,___ Other Interest Earning Assets __,___,___ __,___,___ __,___,___ Short Term CDs __,___,___ __,___,___ __,___,___ Long Term CDs __,___,___ __,___,___ __,___,___ Savings, DDA, and NOW Accounts __,___,___ __,___,___ __,___,___ Short Term Borrowings __,___,___ __,___,___ __,___,___ Long Term __,___,___ Borrowings __,___,___ __,___,___ __,___,___ 13 Interest Income/Expense: 2nd Previous Previous Real Estate Loans - Type 1 __,___,___ __,___,___ Type 2 __,___,___ __,___,___ Type 3 __,___,___ __,___,___ Business Loans __,___,___ __,___,___ Consumer Loans __,___,___ __,___,___ Short Term Securities __,___,___ __,___,___ Long Term Securities __,___,___ __,___,___ Other Interest Earning Assets __,___,___ __,___,___ Short Term CDs __,___,___ __,___,___ Long Term CDs __,___,___ __,___,___ Savings, DDA, and NOW __,___,___ __,___,___ Short Term Borrowings __,___,___ __,___,___ Long Term Borrowings __,___,___ __,___,___ 14 FUTURES T-Bond / T-Note Conversion Factor Contract Month _ _ Contract Year (nnnn) _ _ _ _ Bond/Note Call Month _ _ Bond/Note Call Year (nnnn) _ _ _ _ Coupon _ _ . _ _ _ % Short Futures Contracts - Stack Program Number of Quarters in Planning Period _ _ _ Safe Yield for 4 Years _ _ . _ % 1 Year _ _ . _ % 6 Months _ _ . _ % 3 Months _ _ . _ % Dollar Cost per Contract Tick $ _ _ . _ _ Dollar Cost of Round-Trip Commission (1 contract) $ _ _ . _ _ Enter Number of Ticks (negative for inverted yield curve) Nearby Contract - 2nd Contract _ _ _ 2nd Contract - 3rd Contract _ _ _ 3rd Contract - 4th Contract _ _ _ Number of Contracts at Start of Program _ , _ _ _ Number of Contracts at End of Program _ , _ _ _ 15 CD and T-Bill Contract Yield Price of Futures Contract _ _ . _ _ FINANCIAL OPTIONS Options on T-Bond Futures (CDI) Cheapest Deliverable Instrument: Coupon _ _ . _ _ _ % Price (32nds) _ _ _ . _ _ Call Month _ _ Call Year (nnnn) _ _ _ _ Option Contract: Call or Put C or P Contract Month _ _ Contract Year (nnnn) _ _ _ _ Strike Price (32nds) _ _ _ . _ _ Option Price (64ths) _ _ . _ _ _ Options on T-Bond Futures, Estimated Price Yield on 20-Year Treasury Bond _ _ . _ _ % Call or Put C or P Strike Price (32nds) _ _ _ . _ _ Option Price (64ths) _ _ . _ _ 16 Options on CD and T-Bill Futures Yield on the 90-Day Cash Instrument _ _ . _ _ _ % Call or Put C or P Strike Price (32nds) _ _ _ . _ _ Option Price (64ths) _ _ . _ _ INTEREST RATE SWAPS / CAPS / CAPS WITH COLLARS Interest Rate Swaps Notional Amount (000s omitted) _ _ _ , _ _ _ Fixed Annual Pay Rate _ _ . _ _ _ % Index Name _____________ Current Index _ _ . _ _ _ % Variable Receive Rate + - _ _ . _ _ _ % Interest Rate Cap Contracts Notional Amount (000s omitted) _ _ _ , _ _ _ Annual Premium (000s omitted) _ _ _ . _ _ _ Index Name _____________ Current Index _ _ . _ _ _ % Strike Rate _ _ . _ _ _ % Variable Receive Rate + - _ _ . _ _ _ % 17 Interest Rate Cap Contracts with Collars Notional Amount (000s omitted) _ _ _ , _ _ _ Annual Premium (000s omitted) _ _ _ , _ _ _ Index Name ______________ Current Index _ _ . _ _ _ % Strike Rate _ _ . _ _ _ % Variable Receive Rate + - _ _ . _ _ _ % Collar Rate _ _ . _ _ _ % Variable Collar Pay Rate + - _ _ . _ _ _ % 18 Registration To become a registered user of this program, complete the registration form, and send it along with a check for $10 (add $1 for a total of $11 if you also want 3.5" disks) payable to Peter L. Fishback, to: Peter L. Fishback P.O. Box 635 Vienna, Virginia 22183 1. Registered users will receive one or more, double sided, double density disks containing the following files: a.bat Startup batch file. startup.doc Initial screen display. brun20.exe Microsoft Corporation's run-time module for QuickBASIC executable program files. nnnnnnnn.exe One or more program files. nnnnnnnn.bas One or more BASIC source code files, ASCII format. The code is designed for compilation with QuickBASIC, Vers. 2.0 and 4.0; however, with the addition of line numbers, it may be run with a BASIC interpreter with little or no modification (CHAIN statements may have to be modified). manual.doc Printer ready, ASCII text file containing documentation for the program. Documentation typically consists of an explanation of the program's workings, a description of data input and output, a data input sheet, and sample applications to illustrate how the program works. The extent of documentation varies by program. 2. Registered users will receive notification of all revisions to the program (to download executable program files), for three years. Registered users may order new registered user's disks for $3.00. 3. Registered users are licensed to modify the source code for their own use. 19 REGISTRATION FORM FINANCIAL ANALYSIS PACKAGE Date __________________ Name ______________________________________ Address ______________________________________ ______________________________________ Circle Disk Size: 5.25" 3.5" From which BBS / Shareware Group did you obtain this program? _______________________________________________________ ......................................................................... Note: For other available programs, read the programs.lst file. Single program registration fees paid may be applied to the program package registration fee of $125 ($140 for 3.5" disks). There are currently 26 programs available.