Wells Fargo 2014 Annual Report Download - page 236

Note 17: Fair Values of Assets and Liabilities (continued)
Disclosures about Fair Value of Financial
Instruments
The table below is a summary of fair value estimates for financial
instruments, excluding financial instruments recorded at fair
value on a recurring basis as they are included within the Assets
and Liabilities Recorded at Fair Value on a Recurring Basis table
included earlier in this Note. The carrying amounts in the
following table are recorded on the balance sheet under the
indicated captions, except for nonmarketable equity
investments, which are included in Other Assets.
We have not included assets and liabilities that are not
financial instruments in our disclosure, such as the value of the
long-term relationships with our deposit, credit card and trust
customers, amortized MSRs, premises and equipment, goodwill
and other intangibles, deferred taxes and other liabilities. The
total of the fair value calculations presented does not represent,
and should not be construed to represent, the underlying value
of the Company.
Estimated fair value
(in millions) Carrying amount Level 1 Level 2 Level 3 Total
December 31, 2014
Financial assets
Cash and due from banks (1) $ 19,571 19,571 — — 19,571
Federal funds sold, securities purchased under resale
agreements and other short-term investments (1) 258,429 8,991 249,438 — 258,429
Held-to-maturity securities 55,483 41,548 9,021 5,790 56,359
Mortgages held for sale (2) 3,971 — 2,875 1,098 3,973
Loans held for sale (2) 721 — 739 — 739
Loans, net (3) 832,671 — 60,052 784,786 844,838
Nonmarketable equity investments (cost method) 7,033 — — 8,377 8,377
Financial liabilities
Deposits 1,168,310 — 1,132,845 35,566 1,168,411
Short-term borrowings (1) 63,518 — 63,518 — 63,518
Long-term debt (4) 183,934 — 174,996 10,479 185,475
December 31, 2013
Financial assets
Cash and due from banks (1) $ 19,919 19,919 — — 19,919
Federal funds sold, securities purchased under resale agreements and
other short-term investments (1) 213,793 5,160 208,633 — 213,793
Held to maturity securities 12,346 — 6,205 6,042 12,247
Mortgages held for sale (2) 2,884 — 2,009 893 2,902
Loans held for sale (2) 132 — 136 — 136
Loans, net (3) 789,513 — 58,350 736,214 794,564
Nonmarketable equity investments (cost method) 6,978 — — 8,635 8,635
Financial liabilities
Deposits 1,079,177 — 1,037,448 42,079 1,079,527
Short-term borrowings (1) 53,883 — 53,883 — 53,883
Long-term debt (4) 152,987 — 144,984 10,879 155,863
(1) Amounts consist of financial instruments in which carrying value approximates fair value.
(2) Balance reflects MHFS and LHFS, as applicable, other than those MHFS and LHFS for which election of the fair value option was made.
(3) Loans exclude balances for which the fair value option was elected and also exclude lease financing with a carrying amount of $12.3 billion and $12.4 billion at December
31, 2014 and 2013 respectively.
(4) The carrying amount and fair value exclude obligations under capital leases of $9 million and $11 million at December 31, 2014 and 2013, respectively.
Loan commitments, standby letters of credit and
commercial and similar letters of credit are not included in the
table above. A reasonable estimate of the fair value of these
instruments is the carrying value of deferred fees plus the related
allowance, which totaled $945 million and $597 million at
December 31, 2014 and 2013, respectively.
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