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Investment Securities
 3 Months Ended
Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment securities
Investment securities consist of debt securities that are classified as AFS or HTM. Debt securities classified as trading assets are discussed in Note 2. Predominantly all of the Firm’s AFS and HTM securities are held by Treasury and CIO in connection with its asset-liability management activities. At March 31, 2019, the investment securities portfolio consisted of debt securities with an average credit rating of AA+ (based upon external ratings where available,
and where not available, based primarily upon internal ratings which correspond to ratings as defined by S&P and Moody’s). For additional information regarding the investment securities portfolio, refer to Note 10 of JPMorgan Chase’s 2018 Form 10-K.

The amortized costs and estimated fair values of the investment securities portfolio were as follows for the dates indicated.
 
March 31, 2019
 
December 31, 2018
(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) 
$
74,131

$
1,144

$
352

 
$
74,923

 
$
69,026

$
594

$
974

 
$
68,646

Residential:
 
 
 
 
 
 
 
 
 
 
 
U.S.
7,711

123

18

 
7,816

 
5,877

79

31

 
5,925

Non-U.S.
2,229

71

3

 
2,297

 
2,529

72

6

 
2,595

Commercial
6,685

63

61

 
6,687

 
6,758

43

147

 
6,654

Total mortgage-backed securities
90,756

1,401

434

 
91,723

 
84,190

788

1,158

 
83,820

U.S. Treasury and government agencies
58,491

302

29

 
58,764

 
55,771

366

78

 
56,059

Obligations of U.S. states and municipalities
32,649

1,847

9

 
34,487

 
36,221

1,582

80

 
37,723

Certificates of deposit
75

—

—

 
75

 
75

—

—

 
75

Non-U.S. government debt securities
21,608

436

9

 
22,035

 
23,771

351

20

 
24,102

Corporate debt securities
1,750

45

3

 
1,792

 
1,904

23

9

 
1,918

Asset-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Collateralized loan obligations
21,037

3

111

 
20,929

 
19,612

1

176

 
19,437

Other
6,668

60

17

 
6,711

 
7,225

57

22

 
7,260

Total available-for-sale securities
233,034

4,094

612

 
236,516

 
228,769

3,168

1,543

 
230,394

Held-to-maturity securities
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government agencies(b)
26,033

496

77

 
26,452

 
26,610

134

200

 
26,544

Total mortgage-backed securities
26,033

496

77

 
26,452

 
26,610

134

200

 
26,544

Obligations of U.S. states and municipalities
4,816

189

1

 
5,004

 
4,824

105

15

 
4,914

Total held-to-maturity securities
30,849

685

78

 
31,456

 
31,434

239

215

 
31,458

Total investment securities
$
263,883

$
4,779

$
690

 
$
267,972

 
$
260,203

$
3,407

$
1,758

 
$
261,852

(a)
Includes total U.S. government-sponsored enterprise obligations with fair values of $55.3 billion and $50.7 billion at March 31, 2019, and December 31, 2018, respectively.
(b)
Included total U.S. government-sponsored enterprise obligations with amortized cost of $20.4 billion and $20.9 billion at March 31, 2019, and December 31, 2018, respectively.

Investment securities impairment
The following tables present the fair value and gross unrealized losses for investment securities by aging category at March 31, 2019, and December 31, 2018.
 
Investment securities with gross unrealized losses
 
Less than 12 months
 
12 months or more
 
 
March 31, 2019 (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
$
8,230

$
124

 
$
17,215

$
228

$
25,445

$
352

Residential:
 
 
 
 
 
 
 
U.S. 
12

—

 
1,404

18

1,416

18

Non-U.S.
218

1

 
499

2

717

3

Commercial
383

2

 
2,407

59

2,790

61

Total mortgage-backed securities
8,843

127

 
21,525

307

30,368

434

U.S. Treasury and government agencies
8,112

29

 
218

—

8,330

29

Obligations of U.S. states and municipalities
1

—

 
868

9

869

9

Certificates of deposit
75

—

 
—

—

75

—

Non-U.S. government debt securities
2,274

3

 
1,477

6

3,751

9

Corporate debt securities
168

1

 
77

2

245

3

Asset-backed securities:
 
 
 
 
 
 
 
Collateralized loan obligations
15,862

81

 
2,725

30

18,587

111

Other
846

4

 
2,340

13

3,186

17

Total available-for-sale securities
36,181

245

 
29,230

367

65,411

612

Held-to-maturity securities
 
 
 
 
 
 
 
Mortgage-backed securities
 
 
 
 
 
 
 
U.S. government agencies
18

—

 
5,315

77

5,333

77

Total mortgage-backed securities
18

—

 
5,315

77

5,333

77

Obligations of U.S. states and municipalities
—

—

 
351

1

351

1

Total held-to-maturity securities
18

—

 
5,666

78

5,684

78

Total investment securities
 with gross unrealized losses
$
36,199

$
245

 
$
34,896

$
445

$
71,095

$
690


 
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

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


Other-than-temporary impairment
The Firm does not intend to sell any investment securities with an unrealized loss in AOCI as of March 31, 2019, and it is not likely that the Firm will be required to sell these securities before recovery of their amortized cost basis. Further, the Firm did not recognize any credit-related OTTI losses during the three months ended March 31, 2019 and 2018. Accordingly, the Firm believes that the investment securities with an unrealized loss in AOCI as of March 31, 2019, are not other-than-temporarily impaired. For additional information on other-than-temporary impairment, refer to Note 10 of JPMorgan Chase’s 2018 Form 10-K.
Investment securities gains and losses
The following table presents realized gains and losses and OTTI from AFS securities that were recognized in income.
 
Three months ended March 31,
 
(in millions)
2019

2018

 
Realized gains
$
261

$
70

 
Realized losses
(248
)
(295
)
 
OTTI losses
—

(20
)
(a) 
Net investment securities gains/(losses)
$
13

$
(245
)
 

(a) Represents OTTI losses recognized in income on investment securities the Firm intends to sell.

Changes in the credit loss component of credit-impaired debt securities
The cumulative credit loss component, including any changes therein, of OTTI losses that have been recognized in income related to AFS securities was not material as of and during the three month periods ended March 31, 2019 and 2018.
Contractual maturities and yields
The following table presents the amortized cost and estimated fair value at March 31, 2019, of JPMorgan Chase’s investment securities portfolio by contractual maturity.
By remaining maturity
March 31, 2019 (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
$
296

$
39

$
8,442

$
81,979

 
$
90,756

Fair value
297

40

8,573

82,813

 
91,723

Average yield(b)
2.37
%
3.44
%
3.42
%
3.57
%
 
3.55
%
U.S. Treasury and government agencies








 
 
Amortized cost
$
20,060

$
24,555

$
7,784

$
6,092

 
$
58,491

Fair value
20,064

24,686

7,831

6,183

 
58,764

Average yield(b)
2.49
%
2.69
%
2.62
%
2.92
%
 
2.63
%
Obligations of U.S. states and municipalities








 
 
Amortized cost
$
144

$
476

$
1,706

$
30,323

 
$
32,649

Fair value
143

485

1,771

32,088

 
34,487

Average yield(b)
1.81
%
4.21
%
5.42
%
4.98
%
 
4.98
%
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
$
5,744

$
11,444

$
4,420

$
—

 
$
21,608

Fair value
5,749

11,675

4,611

—

 
22,035

Average yield(b)
2.50
%
2.28
%
1.13
%
—
%
 
2.10
%
Corporate debt securities








 
 
Amortized cost
$
22

$
1,018

$
567

$
143

 
$
1,750

Fair value
22

1,042

578

150

 
1,792

Average yield(b)
4.07
%
4.66
%
4.47
%
4.80
%
 
4.60
%
Asset-backed securities








 
 
Amortized cost
$
—

$
2,830

$
5,155

$
19,720

 
$
27,705

Fair value
—

2,822

5,143

19,675

 
27,640

Average yield(b)
—
%
2.88
%
3.25
%
3.48
%
 
3.37
%
Total available-for-sale securities








 
 
Amortized cost
$
26,341

$
40,362

$
28,074

$
138,257

 
$
233,034

Fair value
26,350

40,750

28,507

140,909

 
236,516

Average yield(b)
2.48
%
2.65
%
2.95
%
3.84
%
 
3.37
%
Held-to-maturity securities








 
 
Mortgage-backed securities(a)








 
 
Amortized cost
$
—

$
—

$
3,477

$
22,556

 
$
26,033

Fair value
—

—

3,617

22,835

 
26,452

Average yield(b)
—
%
—
%
3.55
%
3.33
%
 
3.36
%
Obligations of U.S. states and municipalities








 
 
Amortized cost
$
—

$
—

$
32

$
4,784

 
$
4,816

Fair value
—

—

34

4,970

 
5,004

Average yield(b)
—
%
—
%
3.83
%
4.11
%
 
4.11
%
Total held-to-maturity securities








 
 
Amortized cost
$
—

$
—

$
3,509

$
27,340

 
$
30,849

Fair value
—

—

3,651

27,805

 
31,456

Average yield(b)
—
%
—
%
3.56
%
3.47
%
 
3.48
%
(a)
As of March 31, 2019, mortgage-backed securities issued by Fannie Mae exceeded 10% of JPMorgan Chase’s total stockholders’ equity; the amortized cost and fair value of such securities was $52.0 billion and $52.9 billion, respectively.
(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 6 years for agency residential MBS, 3 years for agency residential collateralized mortgage obligations and 3 years for nonagency residential collateralized mortgage obligations.