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Loans (Tables)
 9 Months Ended
Sep. 30, 2018
Receivables [Abstract]  
Loan portfolio segment descriptions The Firm’s loan portfolio is divided into three portfolio segments, which are the same segments used by the Firm to determine the allowance for loan losses: Consumer, excluding credit card; Credit card; and Wholesale. Within each portfolio segment the Firm monitors and assesses the credit risk in the following classes of loans, based on the risk characteristics of each loan class.
Consumer, excluding
credit card(a)
 
Credit card
 
Wholesale(f)
Residential real estate – excluding PCI
• Residential mortgage(b)
• Home equity(c)
Other consumer loans(d)
• Auto
• Consumer & Business Banking(e)
Residential real estate – PCI
• Home equity
• Prime mortgage
• Subprime mortgage
• Option ARMs
 
• Credit card loans
 
• Commercial and industrial
• Real estate
• Financial institutions
• Government agencies
• Other(g)
(a)
Includes loans held in CCB, prime mortgage and home equity loans held in AWM and prime mortgage loans held in Corporate.
(b)
Predominantly includes prime (including option ARMs) and subprime loans.
(c)
Includes senior and junior lien home equity loans.
(d)
Includes certain business banking and auto dealer risk-rated loans that apply the wholesale methodology for determining the allowance for loan losses; these loans are managed by CCB, and therefore, for consistency in presentation, are included with the other consumer loan classes.
(e)
Predominantly includes Business Banking loans.
(f)
Includes loans held in CIB, CB, AWM and Corporate. Excludes prime mortgage and home equity loans held in AWM and prime mortgage loans held in Corporate. Classes are internally defined and may not align with regulatory definitions.
(g)
Includes loans to: individuals (predominantly Wealth Management clients within AWM), SPEs, and private education and civic organizations. For more information on SPEs, refer to Note 14 of JPMorgan Chase’s 2017 Annual Report.
Schedule of loans by portfolio segment The following tables summarize the Firm’s loan balances by portfolio segment.
September 30, 2018
Consumer, excluding credit card
 
Credit card(a)
 
Wholesale
 
Total
 
(in millions)
 
Retained
$
375,958

 
$
147,856

 
$
423,837

 
$
947,651

(b) 
Held-for-sale
104

 
25

 
3,551

 
3,680

 
At fair value
—

 
—

 
2,987

 
2,987

 
Total
$
376,062

 
$
147,881

 
$
430,375

 
$
954,318

 
 
 
 
 
 
 
 
 
 
December 31, 2017
Consumer, excluding credit card
 
Credit card(a)
 
Wholesale
 
Total
 
(in millions)
 
Retained
$
372,553

 
$
149,387

 
$
402,898

 
$
924,838

(b) 
Held-for-sale
128

 
124

 
3,099

 
3,351

 
At fair value
—

 
—

 
2,508

 
2,508

 
Total
$
372,681

 
$
149,511

 
$
408,505

 
$
930,697

 
(a)
Includes accrued interest and fees net of an allowance for the uncollectible portion of accrued interest and fee income.
(b)
Loans (other than PCI loans and loans for which the fair value option has been elected) are presented net of unamortized discounts and premiums, and net deferred loan fees or costs. These amounts were not material as of September 30, 2018, and December 31, 2017.The following table provides information about retained consumer loans, excluding credit card, by class. In 2017, the Firm sold its student loan portfolio.
(in millions)
September 30,
2018

December 31,
2017

Residential real estate – excluding PCI
 
 
Residential mortgage
$
231,361

$
216,496

Home equity
29,318

33,450

Other consumer loans
 
 
Auto
63,619

66,242

Consumer & Business Banking
26,451

25,789

Residential real estate – PCI
 
 
Home equity
9,393

10,799

Prime mortgage
4,931

6,479

Subprime mortgage
2,072

2,609

Option ARMs
8,813

10,689

Total retained loans
$
375,958

$
372,553
Schedule of retained loans purchased, sold and reclassified to held-for-sale The following tables provide information about the carrying value of retained loans purchased, sold and reclassified to held-for-sale during the periods indicated. Reclassifications of loans to held-for sale are non-cash transactions. The Firm manages its exposure to credit risk on an ongoing basis. Selling loans is one way that the Firm reduces its credit exposures. Loans that were reclassified to held-for-sale and sold in a subsequent period are excluded from the sales line of this table.

 

2018
 
2017
Three months ended September 30,
(in millions)
 

Consumer, excluding
credit card
Credit card
Wholesale
Total
 
Consumer, excluding
credit card
Credit card
Wholesale
Total
Purchases
 

$
561

(a)(b) 
$
—

$
285

$
846

 
$
711

(a)(b) 
$
—

$
479

$
1,190

Sales
 

1,789


—

4,197

5,986

 
672

 
—

3,342

4,014

Retained loans reclassified to held-for-sale
 

—

 
—

666

666

 
—


—

367

367

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
2017
Nine months ended September 30,
(in millions)
 
 
Consumer, excluding
credit card
Credit card
Wholesale
Total
 
Consumer, excluding
credit card
Credit card
Wholesale
Total
Purchases
 
 
$
2,164

(a)(b) 
$
—

$
1,915

$
4,079

 
$
2,277

(a)(b) 
$
—

$
1,357

$
3,634

Sales
 
 
4,661

 
—

12,829

17,490

 
2,025

 
—

8,166

10,191

Retained loans reclassified to held-for-sale
 
 
36

 
—

1,926

1,962

 
6,340

(c) 
—

961

7,301


(a)
Purchases predominantly represent the Firm’s voluntary repurchase of certain delinquent loans from loan pools as permitted by Government National Mortgage Association (“Ginnie Mae”) guidelines. The Firm typically elects to repurchase these delinquent loans as it continues to service them and/or manage the foreclosure process in accordance with applicable requirements of Ginnie Mae, FHA, RHS, and/or VA.
(b)
Excludes purchases of retained loans sourced through the correspondent origination channel and underwritten in accordance with the Firm’s standards. Such purchases were $5.6 billion and $6.9 billion for the three months ended September 30, 2018 and 2017, respectively, and $14.5 billion and $18.2 billion for the nine months ended September 30, 2018 and 2017, respectively.
(c)
Includes the Firm’s student loan portfolio which was sold in 2017.
Schedule of financing receivable credit quality indicators The following table represents the Firm’s delinquency statistics for PCI junior lien home equity loans and lines of credit based on the unpaid principal balance as of September 30, 2018, and December 31, 2017.
 
Total loans
 
Total 30+ day delinquency rate
(in millions, except ratios)
Sep 30,
2018

Dec 31,
2017

 
Sep 30,
2018

Dec 31,
2017

 
HELOCs:(a)
 
 
 
 
 
Within the revolving period(b)
$
6

$
51

 
—
%
1.96
%
Beyond the revolving period(c)
6,837

7,875

 
3.79

4.63

HELOANs
296

360

 
3.38

5.28

Total
$
7,139

$
8,286

 
3.77
%
4.65
%
(a)
In general, these HELOCs are revolving loans for a 10-year period, after which time the HELOC converts to an interest-only loan with a balloon payment at the end of the loan’s term.
(b)
Substantially all undrawn HELOCs within the revolving period have been closed.
(c)
Includes loans modified into fixed rate amortizing loans.The table below sets forth information about the Firm’s consumer, excluding credit card, PCI loans.

(in millions, except ratios)
Home equity

Prime mortgage

Subprime mortgage

Option ARMs

Total PCI
Sep 30,
2018

Dec 31,
2017


Sep 30,
2018

Dec 31,
2017


Sep 30,
2018

Dec 31,
2017


Sep 30,
2018

Dec 31,
2017


Sep 30,
2018

Dec 31,
2017

Carrying value(a)
$
9,393

$
10,799


$
4,931

$
6,479


$
2,072

$
2,609


$
8,813

$
10,689


$
25,209

$
30,576

Loan delinquency (based on unpaid principal balance)




















Current
$
9,047

$
10,272


$
4,429

$
5,839


$
2,152

$
2,640


$
7,904

$
9,662


$
23,532

$
28,413

30–149 days past due
257

356


269

336


297

381


427

547


1,250

1,620

150 or more days past due
263

392


257

327


143

176


526

689


1,189

1,584

Total loans
$
9,567

$
11,020


$
4,955

$
6,502


$
2,592

$
3,197


$
8,857

$
10,898


$
25,971

$
31,617

% of 30+ days past due to total loans
5.44
%
6.79
%

10.62
%
10.20
%

16.98
%
17.42
%

10.76
%
11.34
%

9.39
%
10.13
%
Current estimated LTV ratios (based on unpaid principal balance)(b)(c)

















Greater than 125% and refreshed FICO scores:
























Equal to or greater than 660
$
17

$
33


$
1

$
4


$
—

$
2


$
3

$
6


$
21

$
45

Less than 660
15

21


10

16


12

20


8

9


45

66

101% to 125% and refreshed FICO scores:
























Equal to or greater than 660
153

274


7

16


8

20


24

43


192

353

Less than 660
73

132


24

42


38

75


46

71


181

320

80% to 100% and refreshed FICO scores:
























Equal to or greater than 660
846

1,195


92

221


62

119


145

316


1,145

1,851

Less than 660
394

559


132

230


192

309


220

371


938

1,469

Lower than 80% and refreshed FICO scores:
























Equal to or greater than 660
5,627

6,134


2,791

3,551


753

895


5,235

6,113


14,406

16,693

Less than 660
1,940

2,095


1,649

2,103


1,403

1,608


2,792

3,499


7,784

9,305

No FICO/LTV available
502

577


249

319


124

149


384

470


1,259

1,515

Total unpaid principal balance
$
9,567

$
11,020


$
4,955

$
6,502


$
2,592

$
3,197


$
8,857

$
10,898


$
25,971

$
31,617

Geographic region (based on unpaid principal balance)




















California
$
5,678

$
6,555


$
2,706

$
3,716


$
627

$
797


$
4,966

$
6,225


$
13,977

$
17,293

Florida
1,014

1,137


351

428


249

296


753

878


2,367

2,739

New York
543

607


383

457


282

330


538

628


1,746

2,022

Washington
442

532


103

135


46

61


185

238


776

966

Illinois
242

273


164

200


131

161


211

249


748

883

New Jersey
217

242


145

178


94

110


283

336


739

866

Massachusetts
67

79


118

149


78

98


252

307


515

633

Maryland
51

57


104

129


106

132


188

232


449

550

Virginia
56

66


94

123


39

51


234

280


423

520

Arizona
175

203


70

106


45

60


121

156


411

525

All other
1,082

1,269


717

881


895

1,101


1,126

1,369


3,820

4,620

Total unpaid principal balance
$
9,567

$
11,020


$
4,955

$
6,502


$
2,592

$
3,197


$
8,857

$
10,898


$
25,971

$
31,617

(a)
Carrying value includes the effect of fair value adjustments that were applied to the consumer PCI portfolio at the date of acquisition.
(b)
Represents the aggregate unpaid principal balance of loans divided by the estimated current property value. Current property values are estimated, at a minimum, quarterly, based on home valuation models using nationally recognized home price index valuation estimates incorporating actual data to the extent available and forecasted data where actual data is not available. These property values do not represent actual appraised loan level collateral values; as such, the resulting ratios are necessarily imprecise and should be viewed as estimates. Current estimated combined LTV for junior lien home equity loans considers all available lien positions, as well as unused lines, related to the property.
(c)
Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis.The following table provides information by class for retained residential real estate – excluding PCI loans.
Residential real estate – excluding PCI loans
 
 
 
 
 
 
(in millions, except ratios)
Residential mortgage
 
 
Home equity
 
 
Total residential real estate – excluding PCI
Sep 30,
2018

Dec 31,
2017

 
 
Sep 30,
2018

Dec 31,
2017

 
 
Sep 30,
2018

Dec 31,
2017

Loan delinquency(a)
 
 
 
 
 
 
 
 
 
 
Current
$
225,799

$
208,713

 
 
$
28,554

$
32,391

 
 
$
254,353

$
241,104

30–149 days past due
2,825

4,234

 
 
470

671

 
 
3,295

4,905

150 or more days past due
2,737

3,549

 
 
294

388

 
 
3,031

3,937

Total retained loans
$
231,361

$
216,496

 
 
$
29,318

$
33,450

 
 
$
260,679

$
249,946

% of 30+ days past due to total retained loans(b)
0.51
%
0.77
%
 
 
2.61
%
3.17
%
 
 
0.75
%
1.09
%
90 or more days past due and government guaranteed(c)
$
2,828

$
4,172

 
 
$
—

$
—

 
 
$
2,828

$
4,172

Nonaccrual loans
1,880

2,175

 
 
1,382

1,610

 
 
3,262

3,785

Current estimated LTV ratios(d)(e)
 
 
 
 
 
 
 
 
 


Greater than 125% and refreshed FICO scores:
 
 
 
 
 
 
 
 
 


Equal to or greater than 660
$
28

$
37

 
 
$
6

$
10

 
 
$
34

$
47

Less than 660
30

19

 
 
1

3

 
 
31

22

101% to 125% and refreshed FICO scores:
 
 
 
 
 
 
 
 
 


Equal to or greater than 660
20

36

 
 
138

296

 
 
158

332

Less than 660
60

88

 
 
46

95

 
 
106

183

80% to 100% and refreshed FICO scores:
 
 
 
 
 
 
 
 
 


Equal to or greater than 660
3,606

4,369

 
 
1,059

1,676

 
 
4,665

6,045

Less than 660
314

483

 
 
359

569

 
 
673

1,052

Less than 80% and refreshed FICO scores:
 
 
 
 
 
 
 
 
 


Equal to or greater than 660
212,585

194,758

 
 
22,851

25,262

 
 
235,436

220,020

Less than 660
6,734

6,952

 
 
3,501

3,850

 
 
10,235

10,802

No FICO/LTV available
888

1,259

 
 
1,357

1,689

 
 
2,245

2,948

U.S. government-guaranteed
7,096

8,495

 
 
—

—

 
 
7,096

8,495

Total retained loans
$
231,361

$
216,496

 
 
$
29,318

$
33,450

 
 
$
260,679

$
249,946

Geographic region
 
 
 
 
 
 
 
 
 
 
California
$
74,324

$
68,855

 
 
$
5,852

$
6,582

 
 
$
80,176

$
75,437

New York
29,146

27,473

 
 
6,016

6,866

 
 
35,162

34,339

Illinois
15,242

14,501

 
 
2,208

2,521

 
 
17,450

17,022

Texas
13,926

12,508

 
 
1,843

2,021

 
 
15,769

14,529

Florida
10,624

9,598

 
 
1,619

1,847

 
 
12,243

11,445

New Jersey
7,448

7,142

 
 
1,702

1,957

 
 
9,150

9,099

Washington
8,057

6,962

 
 
904

1,026

 
 
8,961

7,988

Colorado
8,131

7,335

 
 
525

632

 
 
8,656

7,967

Massachusetts
6,545

6,323

 
 
246

295

 
 
6,791

6,618

Arizona
4,519

4,109

 
 
1,211

1,439

 
 
5,730

5,548

All other(f)
53,399

51,690

 
 
7,192

8,264

 
 
60,591

59,954

Total retained loans
$
231,361

$
216,496

 
 
$
29,318

$
33,450

 
 
$
260,679

$
249,946

(a)
Individual delinquency classifications include mortgage loans insured by U.S. government agencies as follows: current included $2.7 billion and $2.4 billion; 30–149 days past due included $2.2 billion and $3.2 billion; and 150 or more days past due included $2.2 billion and $2.9 billion at September 30, 2018, and December 31, 2017, respectively.
(b)
At September 30, 2018, and December 31, 2017, residential mortgage loans excluded mortgage loans insured by U.S. government agencies of $4.4 billion and $6.1 billion, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.
(c)
These balances, which are 90 days or more past due, were excluded from nonaccrual loans as the loans are guaranteed by U.S government agencies. Typically the principal balance of the loans is insured and interest is guaranteed at a specified reimbursement rate subject to meeting agreed-upon servicing guidelines. At September 30, 2018, and December 31, 2017, these balances included $1.3 billion and $1.5 billion, respectively, of loans that are no longer accruing interest based on the agreed-upon servicing guidelines. For the remaining balance, interest is being accrued at the guaranteed reimbursement rate. There were no loans that were not guaranteed by U.S. government agencies that are 90 or more days past due and still accruing interest at September 30, 2018, and December 31, 2017.
(d)
Represents the aggregate unpaid principal balance of loans divided by the estimated current property value. Current property values are estimated, at a minimum, quarterly, based on home valuation models using nationally recognized home price index valuation estimates incorporating actual data to the extent available and forecasted data where actual data is not available. These property values do not represent actual appraised loan level collateral values; as such, the resulting ratios are necessarily imprecise and should be viewed as estimates. Current estimated combined LTV for junior lien home equity loans considers all available lien positions, as well as unused lines, related to the property.
(e)
Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis.
(f)
At September 30, 2018, and December 31, 2017, included mortgage loans insured by U.S. government agencies of $7.1 billion and $8.5 billion, respectively. These amounts have been excluded from the geographic regions presented based upon the government guarantee.The table below provides information for other consumer retained loan classes, including auto and business banking loans.
(in millions, except ratios)
Auto
 
Consumer &
Business Banking
 
Total other consumer
Sep 30, 2018

Dec 31, 2017

 
Sep 30, 2018

Dec 31, 2017

 
Sep 30, 2018

Dec 31, 2017

Loan delinquency
 
 
 
 
 
 
 
 
Current
$
63,095

$
65,651

 
$
26,170

$
25,454

 
$
89,265

$
91,105

30–119 days past due
517

584

 
183

213

 
700

797

120 or more days past due
7

7

 
98

122

 
105

129

Total retained loans
$
63,619

$
66,242

 
$
26,451

$
25,789

 
$
90,070

$
92,031

% of 30+ days past due to total retained loans
0.82
%
0.89
%
 
1.06
%
1.30
%
 
0.89
%
1.01
%
Nonaccrual loans(a)
137

141

 
237

283

 
374

424

Geographic region
 
 
 
 
 
 
 
 
California
$
8,382

$
8,445

 
$
5,375

$
5,032

 
$
13,757

$
13,477

Texas
6,497

7,013

 
3,002

2,916

 
9,499

9,929

New York
3,843

4,023

 
4,218

4,195

 
8,061

8,218

Illinois
3,667

3,916

 
2,045

2,017

 
5,712

5,933

Florida
3,332

3,350

 
1,484

1,424

 
4,816

4,774

Arizona
2,061

2,221

 
1,451

1,383

 
3,512

3,604

Ohio
1,987

2,105

 
1,346

1,380

 
3,333

3,485

New Jersey
1,990

2,044

 
738

721

 
2,728

2,765

Michigan
1,378

1,418

 
1,332

1,357

 
2,710

2,775

Louisiana
1,570

1,656

 
860

849

 
2,430

2,505

All other
28,912

30,051

 
4,600

4,515

 
33,512

34,566

Total retained loans
$
63,619

$
66,242

 
$
26,451

$
25,789

 
$
90,070

$
92,031

Loans by risk ratings(b)
 
 
 
 
 
 
 
 
Noncriticized
$
14,193

$
15,604

 
$
18,644

$
17,938

 
$
32,837

$
33,542

Criticized performing
337

93

 
760

791

 
1,097

884

Criticized nonaccrual
3

9

 
195

213

 
198

222

(a)
There were no loans that were 90 or more days past due and still accruing interest at September 30, 2018, and December 31, 2017.
(b)
For risk-rated business banking and auto loans, the primary credit quality indicator is the risk rating of the loan, including whether the loans are considered to be criticized and/or nonaccrual.

Approximately 37% of the home equity portfolio are senior lien loans; the remaining balance are junior lien HELOANs or HELOCs. The following table represents the Firm’s delinquency statistics for junior lien home equity loans and lines of credit as of September 30, 2018, and December 31, 2017.
 
Total loans
 
Total 30+ day delinquency rate
(in millions, except ratios)
Sep 30,
2018

Dec 31,
2017

 
Sep 30,
2018

Dec 31,
2017

 
HELOCs:(a)
 
 
 
 
 
Within the revolving period(b)
$
5,482

$
6,363

 
0.22
%
0.50
%
Beyond the revolving period
11,982

13,532

 
2.78

3.56

HELOANs
1,104

1,371

 
2.99

3.50

Total
$
18,568

$
21,266

 
2.04
%
2.64
%
(a)
These HELOCs are predominantly revolving loans for a 10-year period, after which time the HELOC converts to a loan with a 20-year amortization period, but also include HELOCs that allow interest-only payments beyond the revolving period.
(b)
The Firm manages the risk of HELOCs during their revolving period by closing or reducing the undrawn line to the extent permitted by law when borrowers are experiencing financial difficulty.The table below sets forth information about the Firm’s credit card loans.
(in millions, except ratios)
September 30,
2018

December 31,
2017

Loan delinquency
 
 
Current and less than 30 days
past due and still accruing
$
145,271

$
146,704

30–89 days past due and still accruing
1,323

1,305

90 or more days past due and still accruing
1,262

1,378

Total retained credit card loans
$
147,856

$
149,387

Loan delinquency ratios
 
 
% of 30+ days past due to total retained loans
1.75
%
1.80
%
% of 90+ days past due to total retained loans
0.85

0.92

Credit card loans by geographic region
 
 
California
$
22,166

$
22,245

Texas
14,171

14,200

New York
12,908

13,021

Florida
9,064

9,138

Illinois
8,482

8,585

New Jersey
6,345

6,506

Ohio
4,803

4,997

Pennsylvania
4,677

4,883

Colorado
4,090

4,006

Michigan
3,710

3,826

All other
57,440

57,980

Total retained credit card loans
$
147,856

$
149,387

Percentage of portfolio based on carrying value with estimated refreshed FICO scores
 
 
Equal to or greater than 660
83.7
%
84.0
%
Less than 660
14.9

14.6

No FICO available
1.4

1.4



The following table presents additional information on the real estate class of loans within the Wholesale portfolio for the periods indicated. For further information on real estate loans, refer to Note 12 of JPMorgan Chase’s 2017 Annual Report.

(in millions, except ratios)
Multifamily
 
Other commercial
 
Total real estate loans
Sep 30,
2018

Dec 31,
2017

 
Sep 30,
2018

Dec 31,
2017

 
Sep 30,
2018

Dec 31,
2017

Real estate retained loans
$
79,112

$
77,597

 
$
36,184

$
36,051

 
$
115,296

$
113,648

Criticized exposure
383

491

 
351

355

 
734

846

% of total criticized exposure to total real estate retained loans
0.48
%
0.63
%
 
0.97
%
0.98
%
 
0.64
%
0.74
%
Criticized nonaccrual
$
47

$
44

 
$
83

$
92

 
$
130

$
136

% of criticized nonaccrual loans to total real estate retained loans
0.06
%
0.06
%
 
0.23
%
0.26
%
 
0.11
%
0.12
%
The table below provides information by class of receivable for the retained loans in the Wholesale portfolio segment.
 
Commercial
 and industrial
 
Real estate
 
Financial
institutions
Government agencies
 
Other(d)
Total
retained loans
(in millions,
 except ratios)
Sep 30,
2018
Dec 31,
2017
 
Sep 30,
2018
Dec 31,
2017
 
Sep 30,
2018
Dec 31,
2017
Sep 30,
2018
Dec 31,
2017
 
Sep 30,
2018
Dec 31,
2017
Sep 30,
2018
Dec 31,
2017
Loans by risk ratings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment-grade
$
66,968

$
68,071

 
$
100,036

$
98,467

 
$
31,194

$
26,791

$
14,435

$
15,140

 
$
111,710

$
103,212

$
324,343

$
311,681

Noninvestment-grade:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noncriticized
51,758

46,558

 
14,526

14,335

 
14,374

13,071

168

369

 
13,288

9,988

94,114

84,321

Criticized performing
3,429

3,983

 
604

710

 
142

210

—

—

 
211

259

4,386

5,162

Criticized nonaccrual
696

1,357

 
130

136

 
2

2

—

—

 
166

239

994

1,734

Total noninvestment-
grade
55,883

51,898

 
15,260

15,181

 
14,518

13,283

168

369

 
13,665

10,486

99,494

91,217

Total retained loans
$
122,851

$
119,969

 
$
115,296

$
113,648

 
$
45,712

$
40,074

$
14,603

$
15,509

 
$
125,375

$
113,698

$
423,837

$
402,898

% of total criticized exposure to
total retained loans
3.36
%
4.45
%
 
0.64
%
0.74
%
 
0.32
%
0.53
%
—
%
—
%
 
0.30
%
0.44
%
1.27
%
1.71
%
% of criticized nonaccrual
to total retained loans
0.57

1.13

 
0.11

0.12

 
—

—

—

—

 
0.13

0.21

0.23

0.43

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans by geographic
distribution(a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total non-U.S.
$
30,435

$
28,470

 
$
2,741

$
3,101

 
$
17,748

$
16,790

$
2,973

$
2,906

 
$
49,030

$
44,112

$
102,927

$
95,379

Total U.S.
92,416

91,499

 
112,555

110,547

 
27,964

23,284

11,630

12,603

 
76,345

69,586

320,910

307,519

Total retained loans
$
122,851

$
119,969

 
$
115,296

$
113,648

 
$
45,712

$
40,074

$
14,603

$
15,509

 
$
125,375

$
113,698

$
423,837

$
402,898

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan
 delinquency(b)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current and less than 30 days past due and still accruing
$
121,913

$
118,288

 
$
115,098

$
113,258

 
$
45,671

$
40,042

$
14,585

$
15,493

 
$
124,097

$
112,559

$
421,364

$
399,640

30–89 days past due
and still accruing
211

216

 
52

242

 
38

15

15

12

 
1,110

898

1,426

1,383

90 or more days
past due and
still accruing(c)
31

108

 
16

12

 
1

15

3

4

 
2

2

53

141

Criticized nonaccrual
696

1,357

 
130

136

 
2

2

—

—

 
166

239

994

1,734

Total
 retained loans
$
122,851

$
119,969

 
$
115,296

$
113,648

 
$
45,712

$
40,074

$
14,603

$
15,509

 
$
125,375

$
113,698

$
423,837

$
402,898

(a)
The U.S. and non-U.S. distribution is determined based predominantly on the domicile of the borrower.
(b)
The credit quality of wholesale loans is assessed primarily through ongoing review and monitoring of an obligor’s ability to meet contractual obligations rather than relying on the past due status, which is generally a lagging indicator of credit quality. For a further discussion, refer to Note 12 of JPMorgan Chase’s 2017 Annual Report.
(c)
Represents loans that are considered well-collateralized and therefore still accruing interest.
(d)
Other includes individuals (predominantly Wealth Management clients within AWM), SPEs, and private education and civic organizations. For more information on SPEs, refer to Note 14 of JPMorgan Chase’s 2017 Annual Report.
Schedule of impaired financing receivables The table below sets forth information about the Firm’s residential real estate impaired loans, excluding PCI loans. These loans are considered to be impaired as they have been modified in a TDR. All impaired loans are evaluated for an asset-specific allowance as described in Note 13 of JPMorgan Chase’s 2017 Annual Report.

(in millions)
Residential mortgage
 
Home equity
 
Total residential real estate – excluding PCI
Sep 30,
2018

Dec 31,
2017

 
Sep 30,
2018

Dec 31,
2017

 
Sep 30,
2018

Dec 31,
2017

Impaired loans
 
 
 
 
 
 
 
 
With an allowance
$
3,558

$
4,407

 
$
1,177

$
1,236

 
$
4,735

$
5,643

Without an allowance(a)
1,164

1,213

 
879

882

 
2,043

2,095

Total impaired loans(b)(c)
$
4,722

$
5,620

 
$
2,056

$
2,118

 
$
6,778

$
7,738

Allowance for loan losses related to impaired loans
$
97

$
62

 
$
42

$
111

 
$
139

$
173

Unpaid principal balance of impaired loans(d)
6,439

7,741

 
3,537

3,701

 
9,976

11,442

Impaired loans on nonaccrual status(e)
1,536

1,743

 
993

1,032

 
2,529

2,775

(a)
Represents collateral-dependent residential real estate loans that are charged off to the fair value of the underlying collateral less cost to sell. The Firm reports, in accordance with regulatory guidance, residential real estate loans that have been discharged under Chapter 7 bankruptcy and not reaffirmed by the borrower (“Chapter 7 loans”) as collateral-dependent nonaccrual TDRs, regardless of their delinquency status. At September 30, 2018, Chapter 7 residential real estate loans included approximately 13% of residential mortgages and 9% of home equity that were 30 days or more past due.
(b)
At September 30, 2018, and December 31, 2017, $4.0 billion and $3.8 billion, respectively, of loans modified subsequent to repurchase from Ginnie Mae in accordance with the standards of the appropriate government agency (i.e., FHA, VA, RHS) are not included in the table above. When such loans perform subsequent to modification in accordance with Ginnie Mae guidelines, they are generally sold back into Ginnie Mae loan pools. Modified loans that do not re-perform become subject to foreclosure.
(c)
Predominantly all residential real estate impaired loans, excluding PCI loans, are in the U.S.
(d)
Represents the contractual amount of principal owed at September 30, 2018, and December 31, 2017. The unpaid principal balance differs from the impaired loan balances due to various factors including charge-offs, net deferred loan fees or costs, and unamortized discounts or premiums on purchased loans.
(e)
At September 30, 2018 and December 31, 2017, nonaccrual loans included $2.0 billion and $2.2 billion, respectively, of TDRs for which the borrowers were less than 90 days past due. For additional information about loans modified in a TDR that are on nonaccrual status refer to the Loan accounting framework in Note 12 of JPMorgan Chase’s 2017 Annual Report.The table below sets forth information about the Firm’s other consumer impaired loans, including risk-rated business banking and auto loans that have been placed on nonaccrual status, and loans that have been modified in TDRs.
(in millions)
September 30,
2018

 
December 31,
2017

Impaired loans
 
 
 
With an allowance
$
227

 
$
272

Without an allowance(a)
41

 
26

Total impaired loans(b)(c)
$
268

 
$
298

Allowance for loan losses related to impaired loans
$
65

 
$
73

Unpaid principal balance of impaired loans(d)
372

 
402

Impaired loans on nonaccrual status
244

 
268

(a)
When discounted cash flows, collateral value or market price equals or exceeds the recorded investment in the loan, the loan does not require an allowance. This typically occurs when the impaired loans have been partially charged off and/or there have been interest payments received and applied to the loan balance.
(b)
Predominantly all other consumer impaired loans are in the U.S.
(c)
Other consumer average impaired loans were $271 million and $366 million for the three months ended September 30, 2018 and 2017, respectively, and $281 million and $459 million for the nine months ended September 30, 2018 and 2017, respectively. The related interest income on impaired loans, including those on a cash basis, was not material for the three and nine months ended September 30, 2018 and 2017.
(d)
Represents the contractual amount of principal owed at September 30, 2018, and December 31, 2017. The unpaid principal balance differs from the impaired loan balances due to various factors, including charge-offs, interest payments received and applied to the principal balance, net deferred loan fees or costs, and unamortized discounts or premiums on purchased loans.The table below sets forth information about the Firm’s impaired credit card loans. All of these loans are considered to be impaired as they have been modified in TDRs.
(in millions)
September 30,
2018

December 31,
2017

Impaired credit card loans with an allowance(a)(b)
 
 
Credit card loans with modified payment terms(c)
$
1,228

$
1,135

Modified credit card loans that have reverted to pre-modification payment terms(d)
56

80

Total impaired credit card loans(e)
$
1,284

$
1,215

Allowance for loan losses related to impaired credit card loans
$
421

$
383

(a)
The carrying value and the unpaid principal balance are the same for credit card impaired loans.
(b)
There were no impaired loans without an allowance.
(c)
Represents credit card loans outstanding to borrowers enrolled in a credit card modification program as of the date presented.
(d)
Represents credit card loans that were modified in TDRs but that have subsequently reverted back to the loans’ pre-modification payment terms.
At September 30, 2018, and December 31, 2017, $26 million and $43 million, respectively, of loans have reverted back to the pre-modification payment terms of the loans due to noncompliance with the terms of the modified loans. The remaining $30 million and $37 million at September 30, 2018, and December 31, 2017, respectively, of these loans are to borrowers who have successfully completed a short-term modification program. The Firm continues to report these loans as TDRs since the borrowers’ credit lines remain closed.
(e)
Predominantly all impaired credit card loans are in the U.S.The table below sets forth information about the Firm’s wholesale impaired retained loans.

(in millions)
Commercial
and industrial
 
Real estate
 
Financial
institutions
 
Government
 agencies
 
Other
 
Total
retained loans
 
Sep 30,
2018
Dec 31,
2017
 
Sep 30,
2018
Dec 31,
2017
 
Sep 30,
2018
Dec 31,
2017
 
Sep 30,
2018
Dec 31,
2017
 
Sep 30,
2018
Dec 31,
2017
 
Sep 30,
2018
 
Dec 31,
2017
 
Impaired loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
With an allowance
$
658

$
1,170

 
$
78

$
78

 
$
2

$
93

 
$
—

$
—

 
$
151

$
168

 
$
889

 
$
1,509

 
Without an allowance(a)
84

228

 
53

60

 
—

—

 
—

—

 
25

70

 
162

 
358

 
Total impaired loans
$
742

$
1,398

 
$
131

$
138

 
$
2

$
93

 
$
—

$
—

 
$
176

$
238

 
$
1,051

(c) 
$
1,867

(c) 
Allowance for loan losses related to impaired loans
$
243

$
404

 
$
15

$
11

 
$
1

$
4

 
$
—

$
—

 
$
21

$
42

 
$
280

 
$
461

 
Unpaid principal balance of impaired loans(b)
846

1,604

 
198

201

 
2

94

 
—

—

 
387

255

 
1,433

 
2,154

 
(a)
When the discounted cash flows, collateral value or market price equals or exceeds the recorded investment in the loan, the loan does not require an allowance. This typically occurs when the impaired loans have been partially charged-off and/or there have been interest payments received and applied to the loan balance.
(b)
Represents the contractual amount of principal owed at September 30, 2018, and December 31, 2017. The unpaid principal balance differs from the impaired loan balances due to various factors, including charge-offs; interest payments received and applied to the carrying value; net deferred loan fees or costs; and unamortized discount or premiums on purchased loans.
(c)
Based upon the domicile of the borrower, largely consists of loans in the U.S.
Schedule of impaired financing receivables, average recorded investment The following tables present average impaired loans and the related interest income reported by the Firm.
Three months ended September 30,
(in millions)
Average impaired loans
 
Interest income on
impaired loans(a)
 
Interest income on impaired
loans on a cash basis(a)
2018

2017

 
2018

2017

 
2018

2017

Residential mortgage
$
4,872

$
5,743

 
$
61

$
71

 
$
19

$
19

Home equity
2,065

2,150

 
33

32

 
21

20

Total residential real estate – excluding PCI
$
6,937

$
7,893

 
$
94

$
103

 
$
40

$
39

 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2018
(in millions)
Average impaired loans
 
Interest income on
impaired loans(a)
 
Interest income on impaired
loans on a cash basis(a)
2018

2017

 
2018

2017

 
2018

2017

Residential mortgage
$
5,242

$
5,861

 
$
197

$
217

 
$
58

$
57

Home equity
2,092

2,213

 
98

95

 
63

60

Total residential real estate – excluding PCI
$
7,334

$
8,074

 
$
295

$
312

 
$
121

$
117

(a)
Generally, interest income on loans modified in TDRs is recognized on a cash basis until the borrower has made a minimum of six payments under the new terms, unless the loan is deemed to be collateral-dependent.The following table presents average balances of impaired credit card loans and interest income recognized on those loans.
 
Three months ended September 30,
 
Nine months ended September 30,
(in millions)
2018

2017

 
2018

2017

Average impaired credit card loans
$
1,267

$
1,205

 
$
1,245

$
1,215

Interest income on impaired credit card loans
17

15

 
48

44

The following table presents the Firm’s average impaired retained loans for the periods indicated.
 
Three months ended September 30,
 
Nine months ended September 30,
(in millions)
2018

2017

 
2018

2017

Commercial and industrial
$
838

$
1,207

 
$
1,095

$
1,277

Real estate
134

167

 
138

175

Financial institutions
45

70

 
76

38

Government agencies
—

—

 
—

—

Other
202

231

 
214

246

Total(a)(b)
$
1,219

$
1,675

 
$
1,523

$
1,736

(a)
The related interest income on accruing impaired loans and interest income recognized on a cash basis were not material for the three and nine months ended September 30, 2018 and 2017.
(b)
The prior period amounts have been revised to conform with the current period presentation.
Troubled debt restructuring on financing receivables The following table presents new TDRs reported by the Firm.
 
Three months ended September 30,
 
Nine months ended September 30,
(in millions)
2018

2017

 
2018

2017

Residential mortgage
$
67

$
57

 
$
314

$
225

Home equity
55

82

 
241

232

Total residential real estate – excluding PCI
$
122

$
139

 
$
555

$
457
Troubled debt restructuring on financing receivables nature and extent of modifications The following tables provide information about how residential real estate loans, excluding PCI loans, were modified under the Firm’s loss mitigation programs described above during the periods presented. These tables exclude Chapter 7 loans where the sole concession granted is the discharge of debt.
Three months ended September 30,
 
 
Total residential
real estate –
excluding PCI
Residential mortgage
 
Home equity
 
2018

2017

 
2018

2017

 
2018

2017

Number of loans approved for a trial modification
513

206

 
586

536

 
1,099

742

Number of loans permanently modified
719

510

 
939

1,228

 
1,658

1,738

Concession granted:(a)
 
 
 
 
 
 
 
 
Interest rate reduction
58
%
64
%
 
77
%
60
%
 
69
%
61
%
Term or payment extension
83

80

 
88

66

 
86

70

Principal and/or interest deferred
30

22

 
11

8

 
19

12

Principal forgiveness
9

17

 
7

19

 
8

19

Other(b)
36

15

 
58

32

 
49

27

 
 
 
 
 
 
 
 
 
Nine months ended September 30,
 
 
Total residential
real estate –
excluding PCI
Residential mortgage
 
Home equity
 
2018

2017

 
2018

2017

 
2018

2017

Number of loans approved for a trial modification
1,789

1,052

 
1,895

1,844

 
3,684

2,896

Number of loans permanently modified
2,374

1,952

 
4,005

4,028

 
6,379

5,980

Concession granted:(a)
 
 
 
 
 
 
 
 
Interest rate reduction
36
%
73
%
 
57
%
68
%
 
49
%
69
%
Term or payment extension
49

84

 
62

78

 
57

80

Principal and/or interest deferred
47

16

 
22

12

 
31

13

Principal forgiveness
7

18

 
7

12

 
7

14

Other(b)
40

24

 
58

19

 
52

21

(a)
Represents concessions granted in permanent modifications as a percentage of the number of loans permanently modified. The sum of the percentages exceeds 100% because predominantly all of the modifications include more than one type of concession. Concessions offered on trial modifications are generally consistent with those granted on permanent modifications.
(b)
Includes variable interest rate to fixed interest rate modifications for the three and nine months ended September 30, 2018 and 2017. Also includes forbearances that meet the definition of a TDR for the three and nine months ended September 30, 2018. Forbearances suspend or reduce monthly payments for a specific period of time to address a temporary hardship.
Troubled debt restructuring on financing receivables, financial effects of modifications and re-defaults The following tables provide information about the financial effects of the various concessions granted in modifications of residential real estate loans, excluding PCI loans, under the loss mitigation programs described above and about redefaults of certain loans modified in TDRs for the periods presented. The following tables present only the financial effects of permanent modifications and does not include temporary concessions offered through trial modifications. These tables also exclude Chapter 7 loans where the sole concession granted is the discharge of debt.
Three months ended September 30,
(in millions, except weighted-average data)
Residential mortgage
 
Home equity
 
Total residential real estate – excluding PCI
2018

2017

 
2018

2017

 
2018

2017

Weighted-average interest rate of loans with interest rate reductions – before TDR
6.13
%
4.92
%
 
5.69
%
5.26
%
 
5.89
%
5.06
%
Weighted-average interest rate of loans with interest rate reductions – after TDR
4.23

2.89

 
3.83

2.96

 
4.01

2.92

Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR
22

24

 
18

18

 
21

22

Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR
39

38

 
39

38

 
39

38

Charge-offs recognized upon permanent modification
$
—

$
—

 
$
—

$
—

 
$
—

$
—

Principal deferred
7

3

 
2

1

 
9

4

Principal forgiven
3

5

 
1

4

 
4

9

Balance of loans that redefaulted within one year of permanent modification(a)
$
27

$
32

 
$
19

$
17

 
$
46

$
49

 
 
 
 
 
 
 
 
 
Nine months ended September 30,
(in millions, except weighted-average)
Residential mortgage
 
Home equity
 
Total residential real estate – excluding PCI
2018

2017

 
2018

2017

 
2018

2017

Weighted-average interest rate of loans with interest rate reductions – before TDR
5.45
%
5.16
%
 
5.34
%
4.92
%
 
5.39
%
5.06
%
Weighted-average interest rate of loans with interest rate reductions – after TDR
3.64

2.97

 
3.39

2.55

 
3.49

2.79

Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR
24

24

 
18

22

 
22

23

Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR
38

38

 
39

39

 
38

38

Charge-offs recognized upon permanent modification
$
—

$
1

 
$
1

$
1

 
$
1

$
2

Principal deferred
17

10

 
7

8

 
24

18

Principal forgiven
9

16

 
5

9

 
14

25

Balance of loans that redefaulted within one year of permanent modification(a)
$
69

$
86

 
$
49

$
36

 
$
118

$
122

(a)
Represents loans permanently modified in TDRs that experienced a payment default in the periods presented, and for which the payment default occurred within one year of the modification. The dollar amounts presented represent the balance of such loans at the end of the reporting period in which such loans defaulted. For residential real estate loans modified in TDRs, payment default is deemed to occur when the loan becomes two contractual payments past due. In the event that a modified loan redefaults, it is probable that the loan will ultimately be liquidated through foreclosure or another similar type of liquidation transaction. Redefaults of loans modified within the last 12 months may not be representative of ultimate redefault levels.The following table provides information about the financial effects of the concessions granted on credit card loans modified in TDRs and redefaults for the periods presented.
(in millions, except
weighted-average data)
Three months ended September 30,
 
Nine months ended September 30,
2018

2017

 
2018

2017

Weighted-average interest rate of loans –
before TDR
18.25
%
16.84
%
 
17.82
%
16.52
%
Weighted-average interest rate of loans –
after TDR
5.10

4.95

 
5.12

4.84

Loans that redefaulted within one year of modification(a)
$
31

$
27

 
$
82

$
72

(a)
Represents loans modified in TDRs that experienced a payment default in the periods presented, and for which the payment default occurred within one year of the modification. The amounts presented represent the balance of such loans as of the end of the quarter in which they defaulted.
Certain loans acquired in transfer accretable yield movement roll forward The table below sets forth the accretable yield activity for the Firm’s PCI consumer loans for the three and nine months ended September 30, 2018 and 2017, and represents the Firm’s estimate of gross interest income expected to be earned over the remaining life of the PCI loan portfolios. The table excludes the cost to fund the PCI portfolios, and therefore the accretable yield does not represent net interest income expected to be earned on these portfolios.
 
Total PCI
(in millions, except ratios)
Three months ended September 30,
 
Nine months ended September 30,
2018
2017
 
2018
2017
Beginning balance
$
8,722

$
12,639

 
$
11,159

$
11,768

Accretion into interest income
(303
)
(345
)
 
(958
)
(1,061
)
Changes in interest rates on variable-rate loans
37

51

 
(231
)
218

Other changes in expected cash flows(a)
46

(1,333
)
 
(1,468
)
87

Balance at September 30
$
8,502

$
11,012

 
$
8,502

$
11,012

Accretable yield percentage
4.95
%
4.54
%
 
4.88
%
4.48
%
(a)
Other changes in expected cash flows may vary from period to period as the Firm continues to refine its cash flow model, for example cash flows expected to be collected due to the impact of modifications and changes in prepayment assumptions.