NOTES TO CONSOLIDATED FINANCIAL STATEMENTS VII held by the Trust VII bear a fixed rate of interest of 8.875% until May 15, 2058.
Thereafter, the notes pay a floating rate at three-month LIBOR plus 500 bp.
The Bancorp entered into an interest rate swap to convert $275 million of the fixed-rate debt into floating.
At December 31, 2008, the rate paid on the swap was 6.05%.
The JSN VII may be redeemed at the option of the Bancorp on or after May 15, 2013, or in certain other limited circumstances, at a redemption price of 100% of the principal amount plus accrued but unpaid interest.
All redemptions are subject to certain conditions and generally require approval by the Federal Reserve Board.
Subsidiary Long-Term Borrowings The senior fixed-rate bank notes due from 2009 to 2019 are the obligations of a subsidiary bank.
The maturities of the face value of the senior fixed-rate bank notes are as follows: $36 million in 2009, $800 million in 2010 and $275 million in 2019.
The Bancorp entered into interest rate swaps to convert $1.1 billion of the fixed-rate debt into floating rates.
At December 31, 2008, the rates paid on these swaps were 2.19% on $800 million and 2.20% on $275 million.
In August 2008, $500 million of senior fixed-rate bank notes issued in July of 2003 matured and were paid.
These long-term bank notes were issued to third-party investors at a fixed rate of 3.375%.
The senior floating-rate bank notes due in 2013 are the obligations of a subsidiary bank.
The notes pay a floating rate at three-month LIBOR plus 11 bp.
The senior extendable notes consist of $797 million that currently pay interest at three-month LIBOR plus 4 bp and $400 million that pay at the Federal Funds open rate plus 12 bp.
The subordinated fixed-rate bank notes due in 2015 are the obligations of a subsidiary bank.
The Bancorp entered into interest rate swaps to convert the fixed-rate debt into floating rate.
At December 31, 2008, the weighted-average rate paid on the swaps was 3.29%.
The junior subordinated floating-rate bank notes due in 2032 and 2033 were assumed by a Bancorp subsidiary as part of the acquisition of Crown in November 2007.
Two of the notes pay floating at three-month LIBOR plus 310 and 325 bp.
The third note pays floating at six-month LIBOR plus 370 bp.
The three-month LIBOR plus 290 bp and the three-month LIBOR plus 279 bp junior subordinated debentures due in 2033 and 2034, respectively, were assumed by a subsidiary of the Bancorp in connection with the acquisition of First National Bank.
The obligations were issued to FNB Statutory Trusts I and II, respectively.
The junior subordinated floating-rate bank notes due in 2035 were assumed by a Bancorp subsidiary as part of the acquisition of First Charter in May 2008.
The obligations were issued to First Charter Capital Trust I and II, respectively.
The notes of First Charter Capital Trust I and II pay floating at three-month LIBOR plus 169 bp and 142 bp, respectively.
The Bancorp has fully and unconditionally guaranteed all obligations under the acquired trust preferred securities.
At December 31, 2008, FHLB advances have rates ranging from 0% to 8.34%, with interest payable monthly.
The advances are secured by certain residential mortgage loans and securities totaling $8.6 billion.
At December 31, 2008, $2.5 billion of FHLB advances are floating rate.
The Bancorp has interest rate caps, with a notional of $1.5 billion, held against its FHLB advance borrowings.
The $3.6 billion in advances mature as follows: $1.5 billion in 2009, $1 million in 2010, $2 million in 2011, $1 billion in 2012 and $1.1 billion in 2013 and thereafter.
Medium-term senior notes and subordinated bank notes with maturities ranging from one year to 30 years can be issued by two subsidiary banks, of which $3.8 billion was outstanding at December 31, 2008 with $16.2 billion available for future issuance.
There were no other medium-term senior notes outstanding on either of the two subsidiary banks as of December 31, 2008.15.
COMMITMENTS, CONTINGENT LIABILITIES AND GUARANTEES The Bancorp, in the normal course of business, enters into financial instruments and various agreements to meet the financing needs of its customers.
The Bancorp also enters into certain transactions and agreements to manage its interest rate and prepayment risks, provide funding, equipment and locations for its operations and invest in its communities.
These instruments and agreements involve, to varying degrees, elements of credit risk, counterparty risk and market risk in excess of the amounts recognized in the Bancorp’s Consolidated Balance Sheets.
Creditworthiness for all instruments and agreements is evaluated on a case-by-case basis in accordance with the Bancorp’s credit policies.
The Bancorp’s significant commitments, contingent liabilities and guarantees in excess of the amounts recognized in the Consolidated Balance Sheets are summarized as follows: Commitments The Bancorp has certain commitments to make future payments under contracts.
A summary of significant commitments at December 31:
## Table 0 ##
Commitments to extend credit are agreements to lend, typically having fixed expiration dates or other termination clauses that may require payment of a fee.
Since many of the commitments to extend credit may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements.
The Bancorp is exposed to credit risk in the event of nonperformance for the amount of the contract.
Fixed-rate commitments are also subject to market risk resulting from fluctuations in interest rates and the Bancorp’s exposure is limited to the replacement value of those commitments.
As of December 31, 2008 and 2007, the Bancorp had a reserve for unfunded commitments totaling $195 million and $95 million, respectively, included in other liabilities in the Consolidated Balance Sheets.
Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party.
At December 31, 2008, approximately $3.3 billion of letters of credit expire within one year (including $57 million issued on behalf of commercial customers to facilitate trade payments in dollars and foreign currencies), $5.3 billion expire between one to five years and $0.4 billion expire thereafter.
Standby letters of credit are considered guarantees in accordance with FASB Interpretation No.45, “Guarantor’s Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others” (FIN 45).
At December 31, 2008, the reserve related to these standby letters of credit was $3 million.
Approximately 66% and 70% of the total standby letters of credit were secured as of December 31, 2008 and 2007, respectively.
In the event of nonperformance by the customers, the Bancorp has rights to the underlying collateral, which can include commercial real estate, physical plant and property, inventory, receivables, cash and marketable securities.
The Bancorp monitors the credit risk associated with the standby letters of credit using the same dual risk rating system utilized for
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 19.
COMMON, PREFERRED AND TREASURY STOCK The following is a summary of the share activity within common, preferred and treasury stock for the years ended December 31:
## Table 1 ##
(a) There were 7,250 shares of Series D preferred stock and 2,000 shares of Series E preferred stock at December 31, 2005, 2006 and 2007.
As of December 31, 2008, 44,300 shares of Series G preferred stock and 136,320 shares of Series F preferred stock had been issued.
During 2008, the Bancorp repurchased an immaterial amount of common stock.
During 2007, the Bancorp repurchased approximately 27 million shares of its common stock, five percent of total outstanding shares, in open market transactions for $1.1 billion.
During 2006, the Bancorp repurchased approximately 2 million shares of its common stock, less than one percent of total outstanding shares, in open market transactions for $82 million.
In 2008, 8.5% non-cumulative Series G convertible preferred stock was issued in the second quarter.
The depository shares represented 46,000 shares of its convertible preferred stock and had a liquidation preference of $25,000 per share.
The preferred stock is convertible at any time, at the option of the shareholder, into 2,159.8272 shares of common stock, representing a conversion price of approximately $11.575 per share of common stock.
As of December 31, 2008, Series G preferred stock had 44,300 shares outstanding and 1,700 shares reserved for issuance.
On December 31, 2008, the U. S.  Treasury purchased approximately $3.4 billion, or 136,320 shares, of the Bancorp’s Fixed Rate Cumulative Perpetual Preferred Stock, Series F, with a liquidation preference of $25,000 per share and related 10-year warrants in the amount of 15% of the preferred stock investment.
The warrants allow the U. S.  Treasury to purchase up to 43,617,747 shares of the Bancorp’s common stock with an exercise price of $11.72.
The Series F senior preferred stock was issued complying with the terms established by the CPP.
Per the program terms, the U. S.  Treasury’s investment consists of senior preferred stock with a five percent dividend for each of the first five years of investment and nine percent thereafter, unless the shares are redeemed.
The shares are callable by the Bancorp at par after three years and may be repurchased at any time under certain circumstances.
The terms also include restrictions on the repurchase of common stock and an increase in common stock dividends, which require the U. S.  Treasury’s consent, for a period of three years from the date of investment unless the preferred shares are redeemed in whole or the U. S.  Treasury has transferred all of the preferred shares to a third party.
The proceeds from issuance of the Series F preferred stock were allocated to the preferred stock and to the warrants based on their relative fair values, which resulted in an initial book value of $3.2 billion for the preferred stock and $239 million for the warrants.
The resulting discount to the preferred stock will be accreted over five years through retained earnings as a preferred stock dividend, resulting in an effective yield of 6.7% for the Series F preferred stock for the first five years.
The warrants will remain in capital surplus at their initial book value until they are exercised or expire.
The CPP terms also required that preferred stock issued to U. S.  Treasury rank senior to, or pari passu with, other preferred stock.
In order to meet the U. S.  Treasury’s standard terms, in the fourth quarter of 2008, the Bancorp repurchased its Series D and Series E preferred stock.
The preferred stock was repurchased for aggregate consideration in cash of approximately $28 million, in which $9 million par value was accounted for as retirement of the Series D and Series E preferred stock and the remaining $19 million was recognized as dividends paid to the holders of the preferred stock.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Fifth Third Bancorp 95 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis.
These assets and liabilities are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment.
## Table 2 ##
During the fourth quarter of 2008, the Bancorp transferred certain commercial, commercial mortgage and commercial construction loans from the portfolio to loans held for sale.
The Bancorp recognized losses from fair value adjustments of approximately $523 million on these commercial loans at the time of their reclassification to loans held for sale.
For $90 million of the loans, the fair value was based on executable broker quotes from active market participants comparable to the executed bids for similar loans sold by the Bancorp during the fourth quarter of 2008.
Therefore, these loans were classified within Level 1 of the valuation hierarchy.
For $383 million of the loans, the fair value was based on appraisals of the underlying collateral value.
Therefore, these loans were classified within Level 3 of the valuation hierarchy.
During 2008, the Bancorp recorded nonrecurring adjustments to certain collateral-dependent commercial, commercial mortgage and commercial construction loans measured for impairment in accordance with SFAS No.114.
Such amounts are generally based on the fair value of the underlying collateral supporting the loan.
In cases where the carrying value exceeds the fair value of the collateral, an impairment loss is recognized.
The fair values and recognized impairment losses are reflected in the previous table.
During 2008, the Bancorp recognized temporary impairment of $207 million in certain classes of the mortgage servicing rights portfolio in which the carrying value of the MSRs was written down to their fair value as of December 31, 2008.
MSRs do not currently trade in an active, open market with readily observable prices.
While sales of MSRs do occur, the precise terms and conditions typically are not readily available.
Accordingly, the Bancorp estimates the fair value of MSRs using discounted cash flow models with certain unobservable inputs, primarily prepayment speed assumptions, resulting in a classification within Level 3 of the valuation hierarchy.
Refer to Note 10 for further information on the Bancorp's mortgage servicing rights.
Fair Value Option The Bancorp elected on January 1, 2008 to measure residential mortgage loans held for sale at fair value in accordance with SFAS No.159.
The election was prospective, at the instrument level, for residential mortgage loans that have a designation as held for sale on the day the specific loan closes.
Electing to measure residential mortgage loans held for sale at fair value reduces certain timing differences, better matches changes in the value of these assets with changes in the value of derivatives used as economic hedges for these assets and eliminates the complex hedge accounting requirements that were followed prior to the adoption of SFAS No.159.
Management’s intent to sell residential mortgage loans classified as held for sale may change over time due to such factors as changes in the overall liquidity in markets or changes in characteristics specific to certain loans held for sale.
Consequently, these loans may be reclassified to loans held for investment and maintained in the Bancorp’s loan portfolio.
In such cases, the loans will continue to be measured at fair value in accordance with SFAS No.159.
Residential loans with a fair value of $7 million at December 31, 2008, including fair value losses of $1 million, were transferred to the Bancorp’s portfolio during 2008.
Fair value changes included in earnings for instruments for which the fair value option was elected included gains of $13 million for the year ended December 31, 2008 and are reported as mortgage banking net revenue in the Consolidated Statements of Income.
Losses included in earnings attributable to changes in instrument-specific credit risk for residential mortgage loans reclassified from held for sale to held for investment were $1 million for the year ended December 31, 2008.
Instrumentspecific credit risk for residential mortgage loans held for sale measured at fair value are immaterial to the Bancorp’s Consolidated Financial Statements due to the short time period between the origination and sale of the loans.
Interest on residential mortgage loans measured at fair value is accrued as it is earned using the effective interest method and is reported as interest income in the Consolidated Statements of Income.
The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for residential mortgage loans measured at fair value as of December 31, 2008.

<table><tr><td>($ in millions)</td><td>2008</td><td>2007</td></tr><tr><td>Commitments to extend credit</td><td>$49,470</td><td>49,788</td></tr><tr><td>Letters of credit (including standby letters of credit)</td><td>8,951</td><td>8,522</td></tr><tr><td>Forward contracts to sell mortgage loans</td><td>3,235</td><td>1,511</td></tr><tr><td>Noncancelable lease obligations</td><td>937</td><td>734</td></tr><tr><td>Purchase obligations</td><td>81</td><td>52</td></tr><tr><td>Capital expenditures</td><td>68</td><td>94</td></tr></table>
<table><tr><td></td><td colspan="2"> Common Stock</td><td colspan="2"> Preferred Stock</td><td colspan="2"> Treasury Stock</td></tr><tr><td>($ and shares in millions)</td><td> Value</td><td> Shares</td><td> Value</td><td> Shares<i></i> <i>(a)</i><i></i> </td><td> Value</td><td> Shares</td></tr><tr><td>Shares at December 31, 2005</td><td>$1,295</td><td>583</td><td>$9</td><td>-</td><td>$1,279</td><td>28</td></tr><tr><td>Shares acquired for treasury</td><td>-</td><td>-</td><td>-</td><td>-</td><td>82</td><td>2</td></tr><tr><td>Stock-based awards exercised, including shares issued</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-84</td><td>-2</td></tr><tr><td>Restricted stock grants</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-45</td><td>-1</td></tr><tr><td>Shares at December 31, 2006</td><td>$1,295</td><td>583</td><td>$9</td><td>-</td><td>$1,232</td><td>27</td></tr><tr><td>Shares acquired for treasury</td><td>-</td><td>-</td><td>-</td><td>-</td><td>1,084</td><td>27</td></tr><tr><td>Stock-based awards exercised, including treasury shares issued</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-86</td><td>-2</td></tr><tr><td>Restricted stock grants</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-59</td><td>-1</td></tr><tr><td>Employee stock ownership through benefit plans</td><td>-</td><td>-</td><td>-</td><td>-</td><td>38</td><td>1</td></tr><tr><td>Shares at December 31, 2007</td><td>$1,295</td><td>583</td><td>$9</td><td>-</td><td>$2,209</td><td>52</td></tr><tr><td>Issuance of preferred shares, Series G</td><td>-</td><td>-</td><td>1,072</td><td>-</td><td>-</td><td>-</td></tr><tr><td>Issuance of preferred shares, Series F</td><td>-</td><td>-</td><td>3,169</td><td>-</td><td>-</td><td>-</td></tr><tr><td>Redemption of preferred shares, Series D, E</td><td>-</td><td>-</td><td>-9</td><td>-</td><td>-</td><td>-</td></tr><tr><td>Stock-based awards exercised, including treasury shares issued</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-2</td><td>-</td></tr><tr><td>Restricted stock grants</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-136</td><td>-3</td></tr><tr><td>Shares issued in business combinations</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-1,841</td><td>-43</td></tr><tr><td>Employee stock ownership through benefit plans</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-1</td><td>-</td></tr><tr><td>Shares at December 31, 2008</td><td>$1,295</td><td>583</td><td>$4,241</td><td>-</td><td>$229</td><td>6</td></tr></table>
<table><tr><td></td><td colspan="3">Fair Value Measurements Using</td><td></td><td rowspan="2">Total Losses Year EndedDecember 31, 2008</td></tr><tr><td>($ in millions)</td><td>Quoted Prices inActive Markets forIdentical Assets(Level 1)</td><td>Significant OtherObservableInputs(Level 2)</td><td>SignificantUnobservableInputs(Level 3)</td><td>Total</td></tr><tr><td>Loans held for sale</td><td>$90</td><td>-</td><td>383</td><td>$473</td><td>$-523</td></tr><tr><td>Commercial loans</td><td>-</td><td>-</td><td>512</td><td>512</td><td>-298</td></tr><tr><td>Commercial mortgage loans</td><td>-</td><td>-</td><td>461</td><td>461</td><td>-186</td></tr><tr><td>Commercial construction loans</td><td>-</td><td>-</td><td>743</td><td>743</td><td>-274</td></tr><tr><td>Servicing rights</td><td>-</td><td>-</td><td>496</td><td>496</td><td>-207</td></tr><tr><td>Total</td><td>$90</td><td>-</td><td>2,595</td><td>$2,685</td><td>$-1,488</td></tr></table>

Question: what was the average securitization rate of standby letters of credit as of december 2008 and 2007?