Fifth Third Bank 2012 Annual Report Download - page 156

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
154 Fifth Third Bancorp
Held-to-maturity securities
The Bancorp’s held-to-maturity securities are primarily composed of
instruments that provide income tax credits as the economic return
on the investment. The fair value of these instruments is estimated
based on current U.S. Treasury tax credit rates.
Loans held for sale
Fair values for commercial loans held for sale were valued based on
executable bids when available, or on discounted cash flow models
incorporating appraisals of the underlying collateral, as well as
assumptions about investor return requirements and amounts and
timing of expected cash flows. Fair values for other consumer loans
held for sale are based on contractual values upon which the loans
may be sold to a third party, and approximate their carrying value.
Portfolio loans and leases, net
Fair values were estimated by discounting future cash flows using
the current market rates of loans to borrowers with similar credit
characteristics and similar remaining maturities.
Long-term debt
Fair value of long-term debt was based on quoted market prices,
when available, or a discounted cash flow calculation using
LIBOR/swap interest rates and, in some cases, a spread for new
issuances with similar terms.