Wells Fargo 2013 Annual Report Download - page 240

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.
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, 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) 793,363 - 58,350 740,063 798,413
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
December 31, 2012
Financial assets
Cash and due from banks (1) $ 21,860 21,860 - - 21,860
Federal funds sold, securities purchased under resale
agreements and other short-term investments (1) 137,313 5,046 132,267 - 137,313
Mortgages held for sale (2) 4,844 - 3,808 1,045 4,853
Loans held for sale (2) 104 - 83 29 112
Loans, net (3) 763,968 - 56,237 716,114 772,351
Nonmarketable equity investments (cost method) 6,799 - 2 8,229 8,231
Financial liabilities
Deposits 1,002,835 - 946,922 57,020 1,003,942
Short-term borrowings (1) 57,175 - 57,175 - 57,175
Long-term debt (4) 127,366 - 119,220 11,063 130,283
(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 $12.0 billion and $12.4 billion at
December 31, 2013 and 2012, respectively.
(4) The carrying amount and fair value exclude balances for which the fair value option was elected and obligations under capital leases of $11 million and $12 million at
December 31, 2013 and 2012, 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.
This amounted to $597 million and $586 million at
December 31, 2013 and 2012, respectively.
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