XML 76 R51.htm IDEA: XBRL DOCUMENT v3.10.0.1
Investment Securities (Tables)
 12 Months Ended
Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]  
Amortized costs and estimated fair values The amortized costs and estimated fair values of the investment securities portfolio were as follows for the dates indicated.
 
2018
 
2017
December 31, (in millions)
Amortized cost
Gross unrealized gains
Gross unrealized losses
Fair
value
 
Amortized cost
Gross unrealized gains
Gross unrealized losses
Fair
value
Available-for-sale securities
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government agencies(a) 
$
69,026

$
594

$
974

 
$
68,646

 
$
69,879

$
736

$
335

 
$
70,280

Residential:
 
 
 
 
 
 
 
 
 
 
 
U.S
5,877

79

31

 
5,925

 
8,193

185

14

 
8,364

Non-U.S.
2,529

72

6

 
2,595

 
2,882

122

1

 
3,003

Commercial
6,758

43

147

 
6,654

 
4,932

98

5

 
5,025

Total mortgage-backed securities
84,190

788

1,158

 
83,820

 
85,886

1,141

355

 
86,672

U.S. Treasury and government agencies
55,771

366

78

 
56,059

 
22,510

266

31

 
22,745

Obligations of U.S. states and municipalities
36,221

1,582

80

 
37,723

 
30,490

1,881

33

 
32,338

Certificates of deposit
75

—

—

 
75

 
59

—

—

 
59

Non-U.S. government debt securities
23,771

351

20

 
24,102

 
26,900

426

32

 
27,294

Corporate debt securities
1,904

23

9

 
1,918

 
2,657

101

1

 
2,757

Asset-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Collateralized loan obligations
19,612

1

176

 
19,437

 
20,928

69

1

 
20,996

Other
7,225

57

22

 
7,260

 
8,764

77

24

 
8,817

Total available-for-sale debt securities
228,769

3,168

1,543

 
230,394

 
198,194

3,961

477

 
201,678

Available-for-sale equity securities(b)
—

—

—

 
—

 
547

—

—

 
547

Total available-for-sale securities
228,769

3,168

1,543

 
230,394

 
198,741

3,961

477

 
202,225

Held-to-maturity securities
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
 
 
 
 
 
 
 
 
 
 
U.S. government agencies(c)
26,610

134

200

 
26,544

 
27,577

558

40

 
28,095

Commercial
—

—

—

 
—

 
5,783

1

74

 
5,710

Total mortgage-backed securities
26,610

134

200

 
26,544

 
33,360

559

114

 
33,805

Obligations of U.S. states and municipalities
4,824

105

15

 
4,914

 
14,373

554

80

 
14,847

Total held-to-maturity securities
31,434

239

215

 
31,458

 
47,733

1,113

194

 
48,652

Total investment securities
$
260,203

$
3,407

$
1,758

 
$
261,852

 
$
246,474

$
5,074

$
671

 
$
250,877

(a)
Includes total U.S. government-sponsored enterprise obligations with fair values of $50.7 billion and $45.8 billion for the years ended December 31, 2018 and 2017 respectively.
(b)
Effective January 1, 2018, the Firm adopted the recognition and measurement guidance. Equity securities that were previously reported as AFS securities were reclassified to other assets upon adoption.
(c)
Included total U.S. government-sponsored enterprise obligations with amortized cost of $20.9 billion and $22.0 billion at December 31, 2018 and 2017, respectively.
Securities impairment The following tables present the fair value and gross unrealized losses for investment securities by aging category at December 31, 2018 and 2017.
 
Investment securities with gross unrealized losses
 
Less than 12 months
 
12 months or more
 
 
December 31, 2018 (in millions)
Fair value
Gross unrealized losses
 
Fair value
Gross unrealized losses
Total fair value
Total gross unrealized losses
Available-for-sale securities
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
U.S. government agencies
$
17,656

$
318

 
$
22,728

$
656

$
40,384

$
974

Residential:
 
 
 
 
 
 
 
U.S
623

4

 
1,445

27

2,068

31

Non-U.S.
907

5

 
165

1

1,072

6

Commercial
974

6

 
3,172

141

4,146

147

Total mortgage-backed securities
20,160

333

 
27,510

825

47,670

1,158

U.S. Treasury and government agencies
4,792

7

 
2,391

71

7,183

78

Obligations of U.S. states and municipalities
1,808

15

 
2,477

65

4,285

80

Certificates of deposit
75

—

 
—

—

75

—

Non-U.S. government debt securities
3,123

5

 
1,937

15

5,060

20

Corporate debt securities
478

8

 
37

1

515

9

Asset-backed securities:
 
 
 
 
 
 
 
Collateralized loan obligations
18,681

176

 
—

—

18,681

176

Other
1,208

6

 
2,354

16

3,562

22

Total available-for-sale securities
50,325

550

 
36,706

993

87,031

1,543

Held-to-maturity securities
 
 
 
 
 
 
 
Mortgage-backed securities
 
 
 
 
 
 
 
U.S. government agencies
4,385

23

 
7,082

177

11,467

200

Commercial
—

—

 
—

—

—

—

Total mortgage-backed securities
4,385

23

 
7,082

177

11,467

200

Obligations of U.S. states and municipalities
12

—

 
1,114

15

1,126

15

Total held-to-maturity securities
4,397

23

 
8,196

192

12,593

215

Total investment securities with gross unrealized losses
$
54,722

$
573

 
$
44,902

$
1,185

$
99,624

$
1,758

 
Investment securities with gross unrealized losses
 
Less than 12 months
 
12 months or more
 
 
December 31, 2017 (in millions)
Fair value
Gross unrealized losses
 
Fair value
Gross unrealized losses
Total fair value
Total gross unrealized losses
Available-for-sale securities
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
U.S. government agencies
$
36,037

$
139

 
$
7,711

$
196

$
43,748

$
335

Residential:
 
 
 
 
 
 
 
U.S.
1,112

5

 
596

9

1,708

14

Non-U.S.
—

—

 
266

1

266

1

Commercial
528

4

 
335

1

863

5

Total mortgage-backed securities
37,677

148

 
8,908

207

46,585

355

U.S. Treasury and government agencies
1,834

11

 
373

20

2,207

31

Obligations of U.S. states and municipalities
949

7

 
1,652

26

2,601

33

Certificates of deposit
—

—

 
—

—

—

—

Non-U.S. government debt securities
6,500

15

 
811

17

7,311

32

Corporate debt securities
—

—

 
52

1

52

1

Asset-backed securities:
 
 
 
 
 
 
 
Collateralized loan obligations
—

—

 
276

1

276

1

Other
3,521

20

 
720

4

4,241

24

Total available-for-sale securities
50,481

201

 
12,792

276

63,273

477

Held-to-maturity securities
 
 
 
 
 
 
 
Mortgage-backed securities
 
 
 
 
 
 
 
U.S. government agencies
4,070

38

 
205

2

4,275

40

Commercial
3,706

41

 
1,882

33

5,588

74

Total mortgage-backed securities
7,776

79

 
2,087

35

9,863

114

Obligations of U.S. states and municipalities
584

9

 
2,131

71

2,715

80

Total held-to-maturity securities
8,360

88

 
4,218

106

12,578

194

Total investment securities with gross unrealized losses
$
58,841

$
289

 
$
17,010

$
382

$
75,851

$
671
Securities gains and losses The following table presents realized gains and losses and OTTI from AFS securities that were recognized in income.
Year ended December 31,
(in millions)
2018
 
2017
 
2016
Realized gains
$
211

 
$
1,013

 
$
401

Realized losses
(606
)
 
(1,072
)
 
(232
)
OTTI losses
—

 
(7
)
 
(28
)
Net investment securities gains/(losses)
(395
)
 
(66
)
 
141

 
 
 
 
 
 
OTTI losses
 
 
 
 
 
Credit-related losses recognized in income
—

 
—

 
(1
)
Investment securities the Firm intends to sell(a)
—

 
(7
)
 
(27
)
Total OTTI losses recognized in income
$
—

 
$
(7
)
 
$
(28
)
(a)
Excludes realized losses on securities sold of $22 million, $6 million and $24 million for the years ended December 31, 2018, 2017 and 2016, respectively, that had been previously reported as an OTTI loss due to the intention to sell the securities.
Amortized cost and estimated fair value by contractual maturity The following table presents the amortized cost and estimated fair value at December 31, 2018, of JPMorgan Chase’s investment securities portfolio by contractual maturity.
By remaining maturity
December 31, 2018 (in millions)
Due in one
year or less
 
Due after one year through five years
 
Due after five years through 10 years
 
Due after
10 years(c)
 
Total
Available-for-sale securities
 
 
 
 
 
 
 
 
 
Mortgage-backed securities(a)
 
 
 
 
 
 
 
 
 
Amortized cost
$
519

 
$
77

 
$
7,574

 
$
76,020

 
$
84,190

Fair value
520

 
77

 
7,616

 
75,607

 
83,820

Average yield(b)
2.02
%
 
3.50
%
 
3.48
%
 
3.52
%
 
3.51
%
U.S. Treasury and government agencies
 
 
 
 
 
 
 
 
 
Amortized cost
$
22,439

 
$
17,945

 
$
9,618

 
$
5,769

 
$
55,771

Fair value
22,444

 
18,090

 
9,588

 
5,937

 
56,059

Average yield(b)
2.42
%
 
2.90
%
 
2.60
%
 
3.05
%
 
2.67
%
Obligations of U.S. states and municipalities
 
 
 
 
 
 
 
 
 
Amortized cost
$
177

 
$
617

 
$
2,698

 
$
32,729

 
$
36,221

Fair value
176

 
629

 
2,790

 
34,128

 
37,723

Average yield(b)
1.94
%
 
4.30
%
 
5.26
%
 
5.02
%
 
5.01
%
Certificates of deposit
 
 
 
 
 
 
 
 
 
Amortized cost
$
75

 
$
—

 
$
—

 
$
—

 
$
75

Fair value
75

 
—

 
—

 
—

 
75

Average yield(b)
0.49
%
 
—
%
 
—
%
 
—
%
 
0.49
%
Non-U.S. government debt securities
 
 
 
 
 
 
 
 
 
Amortized cost
$
5,604

 
$
13,117

 
$
5,050

 
$
—

 
$
23,771

Fair value
5,606

 
13,314

 
5,182

 
—

 
24,102

Average yield(b)
3.25
%
 
1.95
%
 
1.33
%
 
—
%
 
2.13
%
Corporate debt securities
 
 
 
 
 
 
 
 
 
Amortized cost
$
22

 
$
950

 
$
792

 
$
140

 
$
1,904

Fair value
22

 
964

 
792

 
140

 
1,918

Average yield(b)
4.05
%
 
4.64
%
 
4.56
%
 
4.74
%
 
4.60
%
Asset-backed securities
 
 
 
 
 
 
 
 
 
Amortized cost
$
—

 
$
3,222

 
$
4,615

 
$
19,000

 
$
26,837

Fair value
—

 
3,208

 
4,592

 
18,897

 
26,697

Average yield(b)
—
%
 
2.85
%
 
3.12
%
 
3.19
%
 
3.14
%
Total available-for-sale securities
 
 
 
 
 
 
 
 
 
Amortized cost
$
28,836

 
$
35,928

 
$
30,347

 
$
133,658

 
$
228,769

Fair value
28,843

 
36,282

 
30,560

 
134,709

 
230,394

Average yield(b)
2.57
%
 
2.62
%
 
2.98
%
 
3.82
%
 
3.36
%
Held-to-maturity securities
 
 
 
 
 
 
 
 
 
Mortgage-backed securities(a)
 
 
 
 
 
 
 
 
 
Amortized Cost
$
—

 
$
—

 
$
3,125

 
$
23,485

 
$
26,610

Fair value
—

 
—

 
3,141

 
23,403

 
26,544

Average yield(b)
—
%
 
—
%
 
3.53
%
 
3.34
%
 
3.36
%
Obligations of U.S. states and municipalities
 
 
 
 
 
 
 
 
 
Amortized cost
$
—

 
$
—

 
$
20

 
$
4,804

 
$
4,824

Fair value
—

 
—

 
20

 
4,894

 
4,914

Average yield(b)
—
%
 
—
%
 
3.93
%
 
4.12
%
 
4.12
%
Total held-to-maturity securities
 
 
 
 
 
 
 
 
 
Amortized cost
$
—

 
$
—

 
$
3,145

 
$
28,289

 
$
31,434

Fair value
—

 
—

 
3,161

 
28,297

 
31,458

Average yield(b)
—
%
 
—
%
 
3.53
%
 
3.47
%
 
3.48
%
(a)
As of December 31, 2018, mortgage-backed securities issued by Fannie Mae exceeded 10% of JPMorgan Chase’s total stockholders’ equity; both the amortized cost and fair value of such securities was $52.3 billion.
(b)
Average yield is computed using the effective yield of each security owned at the end of the period, weighted based on the amortized cost of each security. The effective yield considers the contractual coupon, amortization of premiums and accretion of discounts, and the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable. The effective yield excludes unscheduled principal prepayments; and accordingly, actual maturities of securities may differ from their contractual or expected maturities as certain securities may be prepaid.
(c)
Substantially all of the Firm’s U.S. residential MBS and collateralized mortgage obligations are due in 10 years or more, based on contractual maturity. The estimated weighted-average life, which reflects anticipated future prepayments, is approximately 7 years for agency residential MBS, 3 years for agency residential collateralized mortgage obligations and 2 years for nonagency residential collateralized mortgage obligations.