NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Loans held for sale Portfolio loans and leases, net Long-term debt Held-to-maturity securities Cash and due from banks, other securities, other short-term investments,  deposits, federal funds purchased and other short-term borrowings  For financial instruments with a short-term or no stated maturity,  prevailing market rates and limited credit risk, carrying amounts  approximate fair value. Those financial instruments include cash  and due from banks, FHLB and FRB restricted stock, other short- term investments, certain deposits (demand, interest checking,  savings, money market and foreign office deposits), and federal  funds purchased. Fair values for other time deposits, certificates  of deposit $100,000 and over and other short-term borrowings  were estimated using a discounted cash flow calculation that  applied prevailing LIBOR/swap interest rates for the same  maturities.  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.  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.  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.  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  issues for borrowings of similar terms.  Fifth Third Bancorp 123 