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## Not U 

The following discloses the fair value of financial instruments whether or not recognized in the balance sheets as of December 31, 2002 and 2001. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instrument. As required under GAAP, these disclosures exclude certain financial instruments and all non-financial instruments. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. 

The Company, in estimating the fair value of its financial instruments as of December 31, 2002 and 2001, used the following methods and assumptions: 

## FINANCIALASSETS 

## Cash and cash equivalents 

The carrying amounts of cash and due from banks, federal funds sold and resale agreements and interest-bearing deposits at other banks approximated fair value. 

## Securities available for sale 

The fair value of securities available for sale was determined using current market prices. See Note C for fair values by type of security. 

## Consumer loans 

The net carrying amount of consumer loans approximated fair value due to the relatively short average life and variable interest rates on a substantial number of these loans. This amount excluded any value related to account relationships. 

## Interest receivable 

The carrying amount approximated the fair value of this asset due to its relatively short-term nature. 

## Disclosures About Fair Value of Financial Instruments 

## Accounts receivable from securitizations 

The carrying amount approximated fair value. 

## Derivatives 

The carrying amount of derivatives approximated fair value and was represented by the estimated unrealized gains as determined by quoted market prices. This value generally reflects the estimated amounts that the Corporation would have received to terminate the interest rate swaps, currency swaps and forward foreign currency exchange (“f/x”) contracts at the respective dates, taking into account the forward yield curve on the swaps and the forward rates on the currency swaps and f/x contracts. These derivatives are included in other assets on the balance sheet. 

## FINANCIAL LIABILITIES 

## Interest-bearing deposits 

The fair value of interest-bearing deposits was calculated by discounting the future cash flows using estimates of market rates for corresponding contractual terms. 

## Other borrowings 

The carrying amount of federal funds purchased and resale agreements and other short-term borrowings approximated fair value. The fair value of secured borrowings was calculated by discounting the future cash flows using estimates of market rates for corresponding contractual terms and assumed maturities when no stated final maturity was available. The fair value of the junior subordinated capital income securities was determined based on quoted market prices. 

## Senior notes 

The fair value of senior notes was determined based on quoted market prices. 

## Interest payable 

The carrying amount approximated the fair value of this asset due to its relatively short-term nature. 

