NYCB 2017 Annual Report

134 The following tables summarize the carrying values, estimated fair values, and fair value measurement levels of financial instruments that were not carried at fair value on the Company’s Consolidated Statements of Condition at December 31, 2017 and 2016: December 31, 2017 Fair Value Measurement Using (in thousands) Carrying Value Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets: Cash and cash equivalents $ 2,528,169 $2,528,169 $ 2,528,169 $ -- $ -- FHLB stock (1) 603,819 603,819 -- 603,819 -- Loans, net 38,265,183 38,254,538 -- -- 38,254,538 Financial Liabilities: Deposits $29,102,163 $29,044,852 $20,458,517 (2) $ 8,586,335 (3) $ -- Borrowed funds 12,913,679 12,780,653 -- 12,780,653 -- (1) Carrying value and estimated fair value are at cost. (2) Interest-bearing checking and money market accounts, savings accounts, and non-interest-bearing accounts. (3) Certificates of deposit. December 31, 2016 Fair Value Measurement Using (in thousands) Carrying Value Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets: Cash and cash equivalents $ 557,850 $ 557,850 $ 557,850 $ -- $ -- Securities held to maturity 3,712,776 3,813,959 200,220 3,613,739 -- FHLB stock (1) 590,934 590,934 -- 590,934 -- Loans, net 39,308,016 39,416,469 -- -- 39,416,469 Financial Liabilities: Deposits $28,887,903 $28,888,064 $21,310,733 (2) $ 7,577,331 (3) $ -- Borrowed funds 13,673,379 13,633,943 -- 13,633,943 -- (1) Carrying value and estimated fair value are at cost. (2) Interest-bearing checking and money market accounts, savings accounts, and non-interest-bearing accounts. (3) Certificates of deposit. The methods and significant assumptions used to estimate fair values for the Company’s financial instruments follow: Cash and Cash Equivalents Cash and cash equivalents include cash and due from banks and federal funds sold. The estimated fair values of cash and cash equivalents are assumed to equal their carrying values, as these financial instruments are either due on demand or have short-term maturities. Securities If quoted market prices are not available for a specific security, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. These pricing models primarily use market-based or independently sourced market parameters as inputs, including, but not limited to, yield curves, interest rates, equity or debt prices, and credit spreads. In addition to observable market information, pricing models also incorporate transaction details such as maturities and cash flow assumptions.