System and method for analyzing and originating a contractual option arrangement for a bank deposits liabilities base

Abstract

A system and method for analyzing and originating a contractual option arrangement for transacting a deposit liabilities base of a financial institution at predetermined prices and time periods. The arrangement may be adjusted due to attrition in the existing deposit base and/or an increase in newly attracted funds.

1 . A method using a computer system for analyzing the value of a deposit liabilities base associated with a financial institution and for originating contractual documents through which the financial institution obtains a right to sell the deposit liabilities base to a third party at a predetermined price, comprising the steps of:
 analyzing external market data, and internal data pertaining to the financial institution, and inputting at least some of the external market data and the internal data to the computer system;   calculating an adjustment by subtracting an estimated attrition of the deposit liabilities base based on existing funds from an estimated increase of the deposit liabilities base based on newly attracted funds;   calculating an estimated market value or a range of such values for the deposit liabilities base, based at least in part on the analyzed external market data and internal data, as well as the adjustment;   generating a minimum potential bid price or a range of such prices for the deposit liabilities base, based at least in part on the estimated market value(s); and   incorporating the generated bid price or the range of such prices into the contractual documents, wherein the price or range of prices which the third party will pay during a predetermined term for the deposit liabilities is/are specified;   whereby the value of the deposit liabilities base may be quantified with sufficient certainty so that it may be treated as tangible capital for regulatory and investments purposes, permitting the deposit liabilities base to be sold if desired, but not requiring divestiture of the deposit liabilities base from the financial institution.   
   
   
       2 . The method of  claim 1 , wherein the step of calculating the adjustment is performed after the contractual documents have been executed, and includes the step of the financial institution seeking permission from the third party to include newly attracted funds in the deposit liabilities base based upon a further adjustment. 
   
   
       3 . The method of  claim 1 , further comprising the step of the financial institution exercising its right as specified in the contractual documents to sell the deposit liabilities base to the third party. 
   
   
       4 . The method of  claim 1 , wherein the external market data comprises data relating to deposit pricing practices. 
   
   
       5 . The method of  claim 1 , wherein the internal data relates to the deposit liabilities base of the selling financial institution. 
   
   
       6 . The method of  claim 1 , wherein the deposit liabilities base comprises either or both of non-interest bearing and interest bearing deposit accounts. 
   
   
       7 . The method of  claim 1 , wherein the method of analyzing the value of the deposit liabilities base of the financial institution and originating the contractual documents is incorporated into a purchase accounting acquisition of a selling financial institution. 
   
   
       8 . A method using a computer system for analyzing the value of a deposit liabilities base associated with a financial institution seeking to obtain a right to substitute other deposit funds not originally included in the deposit liabilities base, while also seeking to purchase the right to sell a deposit liabilities base, and for providing a deposit liability contract through which the financial institution obtains the right to sell the deposit liabilities base to a third party at a predetermined price, comprising the steps of:
 analyzing external market data, and internal data pertaining to the financial institution, and inputting at least some of the external market data and the internal data to the computer system;   calculating an estimated market value or a range of such values for the deposit liabilities base;   generating a minimum potential bid price or a range of such prices for the deposit liabilities base;   incorporating the generated bid price or the range of such prices into the deposit liability contract, wherein the price or range of prices which will be paid during a predetermined term for the deposit liabilities are specified;   whereby the value of the deposit liabilities base may be quantified with sufficient certainty so that it may be treated as tangible capital for regulatory and investments purposes, permitting the deposit liabilities base to be sold if desired, but not requiring divestiture of the deposit liabilities base from the financial institution; and   following execution of the deposit liability contract, calculating an adjustment to the value of the deposit liabilities base by subtracting an estimated attrition of the deposit liabilities base based on existing funds from an estimated increase of the deposit liabilities base based on newly attracted funds, and further including the step of the financial institution seeking permission from the third party to include the newly attracted funds in the deposit liabilities base upon incorporation of the adjustment to the value of the deposit liabilities base.   
   
   
       9 . A method using a computer system for analyzing the value of a deposit liabilities base associated with a financial institution and for originating contractual documents through which the financial institution obtains a right to sell the deposit liabilities base to a third party at a predetermined price, comprising the steps of:
 analyzing external market data, and internal data pertaining to the financial institution, and inputting at least some of the external market data and the internal data to the computer system;   calculating an adjustment by subtracting an estimated attrition of the deposit liabilities base based on existing funds from an estimated increase of the deposit liabilities base based on newly attracted funds;   calculating an estimated market value or a range of such values for the deposit liabilities base, based at least in part on the analyzed external market data and internal data, as well as the adjustment;   generating a minimum potential bid price or a range of such prices for the deposit liabilities base, based at least in part on the estimated market value(s); and   incorporating the generated bid price or the range of such prices into the contractual documents, wherein the price or range of prices which the third party will pay during a predetermined term for the deposit liabilities is/are specified;   whereby the value of the deposit liabilities base is determinable, permitting the deposit liabilities base to be sold if desired, but not requiring divestiture of the deposit liabilities base from the financial institution.