XML 59 R44.htm IDEA: XBRL DOCUMENT

Loans (Tables)

6 Months Ended

Jun. 30, 2019

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 • Governments & 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 loans (including option ARMs).


(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 and individual entities (predominantly consists of Wealth Management clients within AWM and includes exposure to personal investment companies and personal and testamentary trusts), SPEs and Private education and civic organizations. For more information on SPEs, refer to Note 14 of JPMorgan Chase’s 2018 Form 10-K.

Schedule of loans by portfolio segment

The following tables summarize the Firm’s loan balances by portfolio segment.



June 30, 2019	Consumer, excluding credit card		Credit card^(a)		Wholesale		Total
(in millions)	Consumer, excluding credit card		Credit card^(a)		Wholesale		Total
Retained	$	351,692	$	157,568	$	438,468	$	947,728	^(b)
Held-for-sale	1,030		8		3,814		4,852
At fair value	—		—		4,309		4,309
Total	$	352,722	$	157,576	$	446,591	$	956,889

December 31, 2018	Consumer, excluding credit card		Credit card^(a)		Wholesale		Total
(in millions)	Consumer, excluding credit card		Credit card^(a)		Wholesale		Total
Retained	$	373,637	$	156,616	$	439,162	$	969,415	^(b)
Held-for-sale	95		16		11,877		11,988
At fair value	—		—		3,151		3,151
Total	$	373,732	$	156,632	$	454,190	$	984,554


(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 June 30, 2019, and December 31, 2018.

The following table provides information about retained consumer loans, excluding credit card, by class.



(in millions)	June 30, 2019		December 31, 2018
Residential real estate – excluding PCI
Residential mortgage	$	214,744	$	231,078
Home equity	26,017		28,340
Other consumer loans
Auto	62,073		63,573
Consumer & Business Banking	26,616		26,612
Residential real estate – PCI
Home equity	8,149		8,963
Prime mortgage	4,343		4,690
Subprime mortgage	1,857		1,945
Option ARMs	7,893		8,436
Total retained loans	$	351,692	$	373,637

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.



	2019									2018
Three months ended June 30, (in millions)	Consumer, excluding credit card			Credit card		Wholesale		Total		Consumer, excluding credit card			Credit card		Wholesale		Total
Purchases	$	234	^(a)(b)	$	—	$	359	$	593	$	532	^(a)(b)	$	—	$	532	$	1,064
Sales	6,856			—		5,400		12,256		2,391			—		4,943		7,334
Retained loans reclassified to held-for-sale	948			—		924		1,872		—			—		392		392

	2019									2018
Six months ended June 30, (in millions)	Consumer, excluding credit card			Credit card		Wholesale		Total		Consumer, excluding credit card			Credit card		Wholesale		Total
Purchases	$	785	^(a)(b)	$	—	$	588	$	1,373	$	1,603	^(a)(b)	$	—	$	1,630	$	3,233
Sales	15,514			—		10,845		26,359		2,872			—		8,632		11,504
Retained loans reclassified to held-for-sale	5,061			—		1,425		6,486		36			—		1,260		1,296

(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 $4.3 billion and $5.3 billion for the three months ended June 30, 2019 and 2018, respectively, and $7.5 billion and $8.9 billion for the six months ended June 30, 2019 and 2018, respectively.

Schedule of financing receivable credit quality indicators

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
(in millions, except ratios)	Jun 30, 2019			Dec 31, 2018			Jun 30, 2019			Dec 31, 2018			Jun 30, 2019			Dec 31, 2018
Loan delinquency^(a)
Current	$	211,426		$	225,899		$	25,423		$	27,611		$	236,849		$	253,510
30–149 days past due	1,788			2,763			365			453			2,153			3,216
150 or more days past due	1,530			2,416			229			276			1,759			2,692
Total retained loans	$	214,744		$	231,078		$	26,017		$	28,340		$	240,761		$	259,418
% of 30+ days past due to total retained loans^(b)	0.46		%	0.48		%	2.28		%	2.57		%	0.66		%	0.71		%
90 or more days past due and government guaranteed^(c)	$	1,422		$	2,541		$	—		$	—		$	1,422		$	2,541
Nonaccrual loans	1,691			1,765			1,209			1,323			2,900			3,088
Current estimated LTV ratios^(d)(e)
Greater than 125% and refreshed FICO scores:
Equal to or greater than 660	$	19		$	25		$	5		$	6		$	24		$	31
Less than 660	10			13			2			1			12			14
101% to 125% and refreshed FICO scores:
Equal to or greater than 660	35			37			73			111			108			148
Less than 660	36			53			23			38			59			91
80% to 100% and refreshed FICO scores:
Equal to or greater than 660	4,528			3,977			764			986			5,292			4,963
Less than 660	227			281			236			326			463			607
Less than 80% and refreshed FICO scores:
Equal to or greater than 660	198,687			212,505			21,178			22,632			219,865			235,137
Less than 660	6,110			6,457			2,969			3,355			9,079			9,812
No FICO/LTV available	866			813			767			885			1,633			1,698
U.S. government-guaranteed	4,226			6,917			—			—			4,226			6,917
Total retained loans	$	214,744		$	231,078		$	26,017		$	28,340		$	240,761		$	259,418
Geographic region^(f)
California	$	71,176		$	74,759		$	5,327		$	5,695		$	76,503		$	80,454
New York	26,684			28,847			5,276			5,769			31,960			34,616
Illinois	14,236			15,249			1,937			2,131			16,173			17,380
Texas	12,678			13,769			1,694			1,819			14,372			15,588
Florida	10,450			10,704			1,429			1,575			11,879			12,279
Washington	7,937			8,304			802			869			8,739			9,173
Colorado	7,801			8,140			467			521			8,268			8,661
New Jersey	6,608			7,302			1,504			1,642			8,112			8,944
Massachusetts	6,195			6,574			219			236			6,414			6,810
Arizona	4,074			4,434			1,042			1,158			5,116			5,592
All other^(g)	46,905			52,996			6,320			6,925			53,225			59,921
Total retained loans	$	214,744		$	231,078		$	26,017		$	28,340		$	240,761		$	259,418


(a)	Individual delinquency classifications include mortgage loans insured by U.S. government agencies as follows: current included $1.9 billion and $2.8 billion; 30–149 days past due included $1.2 billion and $2.1 billion; and 150 or more days past due included $1.1 billion and $2.0 billion at June 30, 2019, and December 31, 2018, respectively.


(b)	At June 30, 2019, and December 31, 2018, residential mortgage loans excluded mortgage loans insured by U.S. government agencies of $2.3 billion and $4.1 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 June 30, 2019, and December 31, 2018, these balances included $623 million and $999 million, 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 June 30, 2019, and December 31, 2018.

(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)	The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at June 30, 2019.

(g)

At June 30, 2019, and December 31, 2018, included mortgage loans insured by U.S. government agencies of $4.2 billion and $6.9 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
	Jun 30, 2019			Dec 31, 2018			Jun 30, 2019			Dec 31, 2018			Jun 30, 2019			Dec 31, 2018
Loan delinquency
Current	$	61,562		$	62,984		$	26,289		$	26,249		$	87,851		$	89,233
30–119 days past due	511			589			215			252			726			841
120 or more days past due	—			—			112			111			112			111
Total retained loans	$	62,073		$	63,573		$	26,616		$	26,612		$	88,689		$	90,185
% of 30+ days past due to total retained loans	0.82		%	0.93		%	1.23		%	1.36		%	0.94		%	1.06		%
Nonaccrual loans^(a)	108			128			223			245			331			373
Geographic region^(b)
California	$	8,142		$	8,330		$	5,689		$	5,520		$	13,831		$	13,850
Texas	6,524			6,531			3,060			2,993			9,584			9,524
New York	3,690			3,863			4,349			4,381			8,039			8,244
Illinois	3,625			3,716			1,731			2,046			5,356			5,762
Florida	3,256			3,256			1,519			1,502			4,775			4,758
Arizona	2,011			2,084			1,275			1,491			3,286			3,575
Ohio	1,927			1,973			1,210			1,305			3,137			3,278
New Jersey	1,936			1,981			811			723			2,747			2,704
Michigan	1,305			1,357			1,264			1,329			2,569			2,686
Louisiana	1,539			1,587			789			860			2,328			2,447
All other	28,118			28,895			4,919			4,462			33,037			33,357
Total retained loans	$	62,073		$	63,573		$	26,616		$	26,612		$	88,689		$	90,185
Loans by risk ratings^(c)
Noncriticized	$	14,754		$	15,749		$	18,707		$	18,743		$	33,461		$	34,492
Criticized performing	407			273			730			751			1,137			1,024
Criticized nonaccrual	—			—			171			191			171			191


(a)	There were no loans that were 90 or more days past due and still accruing interest at June 30, 2019, and December 31, 2018.


(b)	The geographic regions presented in this table are ordered based on the magnitude of the corresponding loan balances at June 30, 2019.


(c)	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.

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
(in millions, except ratios)	Jun 30, 2019			Dec 31, 2018			Jun 30, 2019			Dec 31, 2018			Jun 30, 2019			Dec 31, 2018			Jun 30, 2019			Dec 31, 2018			Jun 30, 2019			Dec 31, 2018
Carrying value^(a)	$	8,149		$	8,963		$	4,343		$	4,690		$	1,857		$	1,945		$	7,893		$	8,436		$	22,242		$	24,034
Loan delinquency (based on unpaid principal balance)
Current	$	7,904		$	8,624		$	3,922		$	4,226		$	1,974		$	2,033		$	7,139		$	7,592		$	20,939		$	22,475
30–149 days past due	239			278			256			259			254			286			372			398			1,121			1,221
150 or more days past due	193			242			185			223			105			123			395			457			878			1,045
Total loans	$	8,336		$	9,144		$	4,363		$	4,708		$	2,333		$	2,442		$	7,906		$	8,447		$	22,938		$	24,741
% of 30+ days past due to total loans	5.18		%	5.69		%	10.11		%	10.24		%	15.39		%	16.75		%	9.70		%	10.12		%	8.71		%	9.16		%
Current estimated LTV ratios (based on unpaid principal balance)^(b)(c)
Greater than 125% and refreshed FICO scores:
Equal to or greater than 660	$	15		$	17		$	2		$	1		$	2		$	—		$	3		$	3		$	22		$	21
Less than 660	10			13			4			7			6			9			6			7			26			36
101% to 125% and refreshed FICO scores:
Equal to or greater than 660	105			135			5			6			5			4			20			17			135			162
Less than 660	45			65			19			22			28			35			21			33			113			155
80% to 100% and refreshed FICO scores:
Equal to or greater than 660	708			805			67			75			56			54			108			119			939			1,053
Less than 660	304			388			80			112			120			161			137			190			641			851
Lower than 80% and refreshed FICO scores:
Equal to or greater than 660	5,241			5,548			2,692			2,689			820			739			5,143			5,111			13,896			14,087
Less than 660	1,678			1,908			1,306			1,568			1,196			1,327			2,165			2,622			6,345			7,425
No FICO/LTV available	230			265			188			228			100			113			303			345			821			951
Total unpaid principal balance	$	8,336		$	9,144		$	4,363		$	4,708		$	2,333		$	2,442		$	7,906		$	8,447		$	22,938		$	24,741
Geographic region (based on unpaid principal balance)^(d)
California	$	4,942		$	5,420		$	2,381		$	2,578		$	568		$	593		$	4,517		$	4,798		$	12,408		$	13,389
Florida	901			976			306			332			224			234			660			713			2,091			2,255
New York	485			525			350			365			259			268			470			502			1,564			1,660
Illinois	217			233			145			154			119			123			190			199			671			709
Washington	373			419			90			98			40			44			165			177			668			738
New Jersey	191			210			119			134			83			88			230			258			623			690
Massachusetts	59			65			108			113			71			73			226			240			464			491
Maryland	44			48			91			95			93			96			169			178			397			417
Virginia	49			54			84			91			35			37			197			211			365			393
Arizona	149			165			63			69			39			43			103			112			354			389
All other	926			1,029			626			679			802			843			979			1,059			3,333			3,610
Total unpaid principal balance	$	8,336		$	9,144		$	4,363		$	4,708		$	2,333		$	2,442		$	7,906		$	8,447		$	22,938		$	24,741


(a)	Carrying value includes the effect of fair value adjustments that were applied to the consumer PCI portfolio at the date of acquisition.

(b)


(c)	Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis.

(d)

The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at June 30, 2019.

Approximately 37% of the home equity portfolio are senior lien loans; the remaining balance are junior lien HELOANs or HELOCs. The following table provides the Firm’s delinquency statistics for junior lien home equity loans and lines of credit as of June 30, 2019, and December 31, 2018.



	Total loans				Total 30+ day delinquency rate
(in millions, except ratios)	Jun 30, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018
(in millions, except ratios)	Jun 30, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018
HELOCs:^(a)
Within the revolving period^(b)	$	5,611	$	5,608	0.32	%	0.25	%
Beyond the revolving period	9,949		11,286		2.48		2.80
HELOANs	896		1,030		2.68		2.82
Total	$	16,456	$	17,924	1.76	%	2.00	%


(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 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 June 30, 2019, and December 31, 2018.



	Total loans				Total 30+ day delinquency rate
(in millions, except ratios)	Jun 30, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018
(in millions, except ratios)	Jun 30, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018
HELOCs^(a)(b)	5,942		6,531		3.69	%	4.00	%
HELOANs	250		280		3.60		3.57
Total	$	6,192	$	6,811	3.68	%	3.98	%


(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. Substantially all HELOCs are beyond the revolving period.

(b)

Includes loans modified into fixed rate amortizing loans.

The table below sets forth information about the Firm’s credit card loans.



(in millions, except ratios)	June 30, 2019			December 31, 2018
Loan delinquency
Current and less than 30 days past due and still accruing	$	154,876		$	153,746
30–89 days past due and still accruing	1,323			1,426
90 or more days past due and still accruing	1,369			1,444
Total retained loans	$	157,568		$	156,616
Loan delinquency ratios
% of 30+ days past due to total retained loans	1.71		%	1.83		%
% of 90+ days past due to total retained loans	0.87			0.92
Geographic region^(a)
California	$	24,047		$	23,757
Texas	15,495			15,085
New York	13,676			13,601
Florida	9,867			9,770
Illinois	9,038			8,938
New Jersey	6,721			6,739
Ohio	5,060			5,094
Pennsylvania	4,900			4,996
Colorado	4,477			4,309
Michigan	3,885			3,912
All other	60,402			60,415
Total retained loans	$	157,568		$	156,616
Percentage of portfolio based on carrying value with estimated refreshed FICO scores
Equal to or greater than 660	84.0		%	84.2		%
Less than 660	14.7			15.0
No FICO available	1.3			0.8

(a)

The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at June 30, 2019.

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 2018 Form 10-K.



(in millions, except ratios)	Multifamily						Other commercial						Total real estate loans
(in millions, except ratios)	Jun 30, 2019			Dec 31, 2018			Jun 30, 2019			Dec 31, 2018			Jun 30, 2019			Dec 31, 2018
Real estate retained loans	$	78,643		$	79,184		$	36,960		$	36,553		$	115,603		$	115,737
Criticized exposure	548			388			358			366			906			754
% of total criticized exposure to total real estate retained loans	0.70		%	0.49		%	0.97		%	1.00		%	0.78		%	0.65		%
Criticized nonaccrual	$	38		$	57		$	53		$	77		$	91		$	134
% of criticized nonaccrual loans to total real estate retained loans	0.05		%	0.07		%	0.14		%	0.21		%	0.08		%	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						Governments & Agencies						Other^(d)						Total retained loans
(in millions, except ratios)	Jun 30, 2019			Dec 31, 2018			Jun 30, 2019			Dec 31, 2018			Jun 30, 2019			Dec 31, 2018			Jun 30, 2019			Dec 31, 2018			Jun 30, 2019			Dec 31, 2018			Jun 30, 2019			Dec 31, 2018
Loans by risk ratings
Investment-grade	$	67,490		$	73,497		$	100,115		$	100,107		$	36,432		$	32,178		$	13,431		$	13,984		$	119,720		$	119,963		$	337,188		$	339,729
Noninvestment-grade:
Noncriticized	54,639			51,720			14,582			14,876			14,779			15,316			258			201			10,756			11,478			95,014			93,591
Criticized performing	3,478			3,738			815			620			198			150			3			2			534			182			5,028			4,692
Criticized nonaccrual	933			851			91			134			10			4			—			—			204			161			1,238			1,150
Total noninvestment- grade	59,050			56,309			15,488			15,630			14,987			15,470			261			203			11,494			11,821			101,280			99,433
Total retained loans	$	126,540		$	129,806		$	115,603		$	115,737		$	51,419		$	47,648		$	13,692		$	14,187		$	131,214		$	131,784		$	438,468		$	439,162
% of total criticized exposure to total retained loans	3.49		%	3.54		%	0.78		%	0.65		%	0.40		%	0.32		%	0.02		%	0.01		%	0.56		%	0.26		%	1.43		%	1.33		%
% of criticized nonaccrual to total retained loans	0.74			0.66			0.08			0.12			0.02			0.01			—			—			0.16			0.12			0.28			0.26

Loans by geographic distribution^(a)
Total non-U.S.	$	31,054		$	29,572		$	3,248		$	2,967		$	16,632		$	18,524		$	2,753		$	3,150		$	47,473		$	48,433		$	101,160		$	102,646
Total U.S.	95,486			100,234			112,355			112,770			34,787			29,124			10,939			11,037			83,741			83,351			337,308			336,516
Total retained loans	$	126,540		$	129,806		$	115,603		$	115,737		$	51,419		$	47,648		$	13,692		$	14,187		$	131,214		$	131,784		$	438,468		$	439,162


Loan delinquency^(b)
Current and less than 30 days past due and still accruing	$	125,003		$	128,678		$	115,409		$	115,533		$	51,377		$	47,622		$	13,687		$	14,165		$	130,246		$	130,918		$	435,722		$	436,916
30–89 days past due and still accruing	493			109			99			67			31			12			3			18			764			702			1,390			908
90 or more days past due and still accruing^(c)	111			168			4			3			1			10			2			4			—			3			118			188
Criticized nonaccrual	933			851			91			134			10			4			—			—			204			161			1,238			1,150
Total retained loans	$	126,540		$	129,806		$	115,603		$	115,737		$	51,419		$	47,648		$	13,692		$	14,187		$	131,214		$	131,784		$	438,468		$	439,162


(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 2018 Form 10-K.


(c)	Represents loans that are considered well-collateralized and therefore still accruing interest.

(d)

Other includes individuals and individual entities (predominantly consists of Wealth Management clients within AWM and includes exposure to personal investment companies and personal and testamentary trusts), SPEs and Private education and civic organizations. For more information on SPEs, refer to Note 14 of JPMorgan Chase’s 2018 Form 10-K.

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 2018 Form 10-K.



(in millions)	Residential mortgage				Home equity				Total residential real estate – excluding PCI
(in millions)	Jun 30, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018
Impaired loans
With an allowance	$	3,173	$	3,381	$	1,089	$	1,142	$	4,262	$	4,523
Without an allowance^(a)	1,208		1,184		865		870		2,073		2,054
Total impaired loans^(b)(c)	$	4,381	$	4,565	$	1,954	$	2,012	$	6,335	$	6,577
Allowance for loan losses related to impaired loans	$	60	$	88	$	17	$	45	$	77	$	133
Unpaid principal balance of impaired loans^(d)	5,965		6,207		3,362		3,466		9,327		9,673
Impaired loans on nonaccrual status^(e)	1,436		1,459		946		955		2,382		2,414

(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 June 30, 2019, Chapter 7 residential real estate loans included approximately 12% of residential mortgages and 8% of home equity that were 30 days or more past due.

(b)

At June 30, 2019, and December 31, 2018, $2.6 billion and $4.1 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 impaired loans in the table above are in the U.S.


(d)	Represents the contractual amount of principal owed at June 30, 2019, and December 31, 2018. 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 both June 30, 2019 and December 31, 2018, nonaccrual loans included $2.0 billion 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 2018 Form 10-K.

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)	June 30, 2019		December 31, 2018
Impaired loans
With an allowance	$	207	$	222
Without an allowance^(a)	20		29
Total impaired loans^(b)(c)	$	227	$	251
Allowance for loan losses related to impaired loans	$	68	$	63
Unpaid principal balance of impaired loans^(d)	327		355
Impaired loans on nonaccrual status	205		229


(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 $244 million and $277 million for the three months ended June 30, 2019 and 2018, respectively, and $245 million and $287 million for the six months ended June 30, 2019 and 2018, respectively. The related interest income on impaired loans, including those on a cash basis, was not material for the three and six months ended June 30, 2019 and 2018.

(d)

Represents the contractual amount of principal owed at June 30, 2019, and December 31, 2018. 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)	June 30, 2019		December 31, 2018
Impaired credit card loans with an allowance^(a)(b)(c)	$	1,388	$	1,319
Allowance for loan losses related to impaired credit card loans	472		440


(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)

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				Governments & Agencies				Other				Total retained loans
(in millions)	Jun 30, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018		Jun 30, 2019			Dec 31, 2018
Impaired loans
With an allowance	$	734	$	807	$	78	$	107	$	10	$	4	$	—	$	—	$	213	$	152	$	1,035		$	1,070
Without an allowance^(a)	244		140		14		27		—		—		—		—		2		13		260			180
Total impaired loans	$	978	$	947	$	92	$	134	$	10	$	4	$	—	$	—	$	215	$	165	$	1,295	^(c)	$	1,250	^(c)
Allowance for loan losses related to impaired loans	$	209	$	252	$	22	$	25	$	2	$	1	$	—	$	—	$	55	$	19	$	288		$	297
Unpaid principal balance of impaired loans^(b)	1,131		1,043		118		203		11		4		—		—		228		473		1,488			1,723


(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 June 30, 2019, and December 31, 2018. 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 June 30, (in millions)	Average impaired loans				Interest income on impaired loans^(a)				Interest income on impaired loans on a cash basis^(a)
Three months ended June 30, (in millions)	2019		2018		2019		2018		2019		2018
Residential mortgage	$	4,437	$	5,254	$	57	$	66	$	18	$	20
Home equity	1,980		2,087		33		33		20		21
Total residential real estate – excluding PCI	$	6,417	$	7,341	$	90	$	99	$	38	$	41

Six months ended June 30, (in millions)	Average impaired loans				Interest income on impaired loans^(a)				Interest income on impaired loans on a cash basis^(a)
Six months ended June 30, (in millions)	2019		2018		2019		2018		2019		2018
Residential mortgage	$	4,486	$	5,431	$	116	$	136	$	35	$	39
Home equity	1,991		2,105		66		65		41		42
Total residential real estate – excluding PCI	$	6,477	$	7,536	$	182	$	201	$	76	$	81

(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 June 30,				Six months ended June 30,
(in millions)	2019		2018		2019		2018
Average impaired credit card loans	$	1,367	$	1,244	$	1,353	$	1,234
Interest income on impaired credit card loans	18		16		35		31

The following table presents the Firm’s average impaired retained loans for the periods indicated.



	Three months ended June 30,				Six months ended June 30,
(in millions)	2019		2018		2019		2018
Commercial and industrial	$	953	$	1,106	$	1,087	$	1,224
Real estate	106		142		118		142
Financial institutions	13		90		13		91
Governments & Agencies	—		—		—		—
Other	293		208		248		219
Total^(a)	$	1,365	$	1,546	$	1,466	$	1,676

(a)

The related interest income on accruing impaired loans and interest income recognized on a cash basis were not material for the three and six months ended June 30, 2019 and 2018.

Troubled debt restructuring on financing receivables

The following table presents new TDRs reported by the Firm.



	Three months ended June 30,				Six months ended June 30,
(in millions)	2019		2018		2019		2018
Residential mortgage	$	62	$	100	$	131	$	247
Home equity	48		83		114		186
Total residential real estate – excluding PCI	$	110	$	183	$	245	$	433

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 June 30,									Total residential real estate – excluding PCI
	Residential mortgage				Home equity				Total residential real estate – excluding PCI
	2019		2018		2019		2018		2019		2018
Number of loans approved for a trial modification	501		977		411		849		912		1,826
Number of loans permanently modified	428		686		816		1,268		1,244		1,954
Concession granted:^(a)
Interest rate reduction	60	%	37	%	73	%	53	%	68	%	48	%
Term or payment extension	92		46		74		59		80		55
Principal and/or interest deferred	29		50		9		27		16		35
Principal forgiveness	6		8		4		10		4		9
Other^(b)	45		32		58		57		54		48

Six months ended June 30,									Total residential real estate – excluding PCI
	Residential mortgage				Home equity				Total residential real estate – excluding PCI
	2019		2018		2019		2018		2019		2018
Number of loans approved for a trial modification	1,238		1,276		932		1,309		2,170		2,585
Number of loans permanently modified	871		1,655		1,923		3,066		2,794		4,721
Concession granted:^(a)
Interest rate reduction	60	%	27	%	79	%	51	%	73	%	42	%
Term or payment extension	90		35		66		54		74		48
Principal and/or interest deferred	28		54		8		26		14		36
Principal forgiveness	6		7		5		7		5		7
Other^(b)	40		42		65		58		57		53


(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 and forbearances that meet the definition of a TDR for the three and six months ended June 30, 2019 and 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 June 30, (in millions, except weighted-average data)	Residential mortgage						Home equity						Total residential real estate – excluding PCI
	2019			2018			2019			2018			2019			2018
Weighted-average interest rate of loans with interest rate reductions – before TDR	6.03		%	4.97		%	5.51		%	5.21		%	5.76		%	5.10		%
Weighted-average interest rate of loans with interest rate reductions – after TDR	4.47			3.15			3.83			3.31			4.14			3.24
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR	19			25			20			18			19			23
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR	39			37			40			37			39			38
Charge-offs recognized upon permanent modification	$	1		$	—		$	—		$	—		$	1		$	—
Principal deferred	5			4			2			3			7			7
Principal forgiven	1			3			1			2			2			5
Balance of loans that redefaulted within one year of permanent modification^(a)	$	23		$	25		$	16		$	19		$	39		$	44

Six months ended June 30, (in millions, except weighted-average data)	Residential mortgage						Home equity						Total residential real estate – excluding PCI
	2019			2018			2019			2018			2019			2018
Weighted-average interest rate of loans with interest rate reductions – before TDR	6.28		%	5.03		%	5.59		%	5.16		%	5.86		%	5.11		%
Weighted-average interest rate of loans with interest rate reductions – after TDR	4.56			3.28			3.75			3.16			4.06			3.21
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR	20			25			20			19			20			22
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR	39			37			40			39			39			38
Charge-offs recognized upon permanent modification	$	1		$	—		$	—		$	1		$	1		$	1
Principal deferred	8			10			3			5			11			15
Principal forgiven	2			6			2			4			4			10
Balance of loans that redefaulted within one year of permanent modification^(a)	$	56		$	45		$	31		$	33		$	87		$	78

(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 June 30,						Six months ended June 30,
(in millions, except weighted-average data)	2019			2018			2019			2018
Weighted-average interest rate of loans – before TDR	19.38		%	18.00		%	19.25		%	17.61		%
Weighted-average interest rate of loans – after TDR	4.71			5.06			4.88			5.13
Loans that redefaulted within one year of modification^(a)	$	32		$	25		$	66		$	51

(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 presents the accretable yield activity for the Firm’s PCI consumer loans for the three and six months ended June 30, 2019 and 2018, 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 June 30,						Six months ended June 30,
(in millions, except ratios)	2019			2018			2019			2018
Beginning balance	$	8,043		$	10,250		$	8,422		$	11,159
Accretion into interest income	(283		)	(327		)	(569		)	(655		)
Changes in interest rates on variable-rate loans	(78		)	(548		)	(94		)	(268		)
Other changes in expected cash flows^(a)	17			(653		)	(60		)	(1,514		)
Balance at June 30	$	7,699		$	8,722		$	7,699		$	8,722
Accretable yield percentage	5.41		%	4.93		%	5.35		%	4.86		%

(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.