Finally, collateral-dependent loans are typically maintained on nonaccrual status.

On the date a loan is placed on nonaccrual status, all interest accrued but not collected is reversed against interest income. In addition, the amortization of deferred amounts is suspended. Interest income on nonaccrual loans may be recognized as cash interest payments are received (i.e., on a cash basis) if the recorded loan balance is deemed fully collectible; however, if there is doubt regarding the ultimate collectibility of the recorded loan balance, all interest cash receipts are applied to reduce the carrying value of the loan (the cost recovery method). For consumer loans, application of this policy typically results in the Firm recognizing interest income on nonaccrual consumer loans on a cash basis.

A loan may be returned to accrual status when repayment is reasonably assured and there has been demonstrated performance under the terms of the loan or, if applicable, the terms of the restructured loan.

As permitted by regulatory guidance, credit card loans are generally exempt from being placed on nonaccrual status; accordingly, interest and fees related to credit card loans continue to accrue until the loan is charged off or paid in full.

Allowance for loan losses

The allowance for loan losses represents the estimated expected credit losses in the held-for-investment loan portfolio at the balance sheet date and is recognized on the balance sheet as a contra asset, which brings the amortized cost to the net carrying value. Changes in the allowance for loan losses are recorded in the provision for credit losses on the Firm’s Consolidated statements of income. Refer to Note 13 for further information on the Firm’s accounting policies for the allowance for loan losses.

Charge-offs

Consumer loans are generally charged off or charged down to the lower of the amortized cost or the net realizable value of the underlying collateral (i.e., fair value less estimated costs to sell), with an offset to the allowance for loan losses, upon reaching specified stages of delinquency in accordance with standards established by the FFIEC. Residential real estate loans, unmodified credit card loans and scored business banking loans are generally charged off no later than 180 days past due. Scored auto and modified credit card loans are charged off no later than 120 days past due.

Certain consumer loans are charged off or charged down to their net realizable value earlier than the FFIEC charge-off standards in the following circumstances:

•Loans modified in a TDR that are determined to be collateral-dependent.

•Loans to borrowers who have experienced an event that suggests a loss is either known or highly certain are subject to accelerated charge-off standards (e.g.,

residential real estate and auto loans are charged off or charged down within 60 days of receiving notification of a bankruptcy filing).

•Auto loans upon repossession of the automobile.

Other than in certain limited circumstances, the Firm typically does not recognize charge-offs on the government-guaranteed portion of loans.

Wholesale loans are charged off when it is highly certain that a loss has been realized. The determination of whether to recognize a charge-off includes many factors, including the prioritization of the Firm’s claim in bankruptcy, expectations of the workout/restructuring of the loan and valuation of the borrower’s equity or the loan collateral.

When a loan is charged down to the lower of its amortized cost or the estimated net realizable value of the underlying collateral, the determination of the fair value of the collateral depends on the type of collateral (e.g., securities, real estate). In cases where the collateral is in the form of liquid securities, the fair value is based on quoted market prices or broker quotes. For illiquid securities or other financial assets, the fair value of the collateral is generally estimated using a discounted cash flow model.

For residential real estate loans, collateral values are based upon external valuation sources. When it becomes likely that a borrower is either unable or unwilling to pay, the Firm utilizes a broker’s price opinion, appraisal and/or an automated valuation model of the home based on an exterior-only valuation (“exterior opinions”), which is then updated at least every 12 months, or more frequently depending on various market factors. As soon as practicable after the Firm receives the property in satisfaction of a debt (e.g., by taking legal title or physical possession), the Firm generally obtains an appraisal based on an inspection that includes the interior of the home (“interior appraisals”). Exterior opinions and interior appraisals are discounted based upon the Firm’s experience with actual liquidation values as compared with the estimated values provided by exterior opinions and interior appraisals, considering state-specific factors.

For commercial real estate loans, collateral values are generally based on appraisals from internal and external valuation sources. Collateral values are typically updated every six to twelve months, either by obtaining a new appraisal or by performing an internal analysis, in accordance with the Firm’s policies. The Firm also considers both borrower- and market-specific factors, which may result in obtaining appraisal updates or broker price opinions at more frequent intervals.

Loans held-for-sale

Loans held-for-sale are measured at the lower of cost or fair value, with valuation changes recorded in noninterest revenue. For consumer loans, the valuation is performed on a portfolio basis. For wholesale loans, the valuation is performed on an individual loan basis.

Interest income on loans held-for-sale is accrued and recognized based on the contractual rate of interest.

Loan origination fees or costs and purchase price discounts or premiums are deferred in a contra loan account until the related loan is sold. The deferred fees or costs and discounts or premiums are an adjustment to the basis of the loan and therefore are included in the periodic determination of the lower of cost or fair value adjustments and/or the gain or loss recognized at the time of sale.

Because these loans are recognized at the lower of cost or fair value, the Firm’s allowance for loan losses and charge-off policies do not apply to these loans. However, loans held-for-sale are subject to the nonaccrual policies described above.

Loans at fair value

Loans for which the fair value option has been elected are measured at fair value, with changes in fair value recorded in noninterest revenue.

Interest income on these loans is accrued and recognized based on the contractual rate of interest. Changes in fair value are recognized in noninterest revenue. Loan origination fees are recognized upfront in noninterest revenue. Loan origination costs are recognized in the associated expense category as incurred.

Because these loans are recognized at fair value, the Firm’s allowance for loan losses and charge-off policies do not apply to these loans. However, loans at fair value are subject to the nonaccrual policies described above.

Refer to Note 3 for further information on the Firm’s elections of fair value accounting under the fair value option. Refer to Note 2 and Note 3 for further information on loans carried at fair value and classified as trading assets.

Loan classification changes

Loans in the held-for-investment portfolio that management decides to sell are transferred to the held-for-sale portfolio at the lower of cost or fair value on the date of transfer. Credit-related losses are charged against the allowance for loan losses; non-credit related losses such as those due to changes in interest rates or foreign currency exchange rates are recognized in noninterest revenue.

In the event that management decides to retain a loan in the held-for-sale portfolio, the loan is transferred to the held-for-investment portfolio at amortized cost on the date of transfer. These loans are subsequently assessed for impairment based on the Firm’s allowance methodology. Refer to Note 13 for a further discussion of the methodologies used in establishing the Firm’s allowance for loan losses.

Loan modifications

The Firm seeks to modify certain loans in conjunction with its loss mitigation activities. Through the modification, JPMorgan Chase grants one or more concessions to a borrower who is experiencing financial difficulty in order to minimize the Firm’s economic loss and avoid foreclosure or repossession of the collateral, and to ultimately maximize payments received by the Firm from the borrower. The concessions granted vary by program and by borrower-specific characteristics, and may include interest rate reductions, term extensions, payment delays, principal forgiveness, or the acceptance of equity or other assets in lieu of payments. Such modifications are accounted for and reported as TDRs. Loans with short-term and other insignificant modifications that are not considered concessions are not TDRs.

Loans, except for credit card loans, modified in a TDR are generally placed on nonaccrual status, although in many cases such loans were already on nonaccrual status prior to modification. These loans may be returned to performing status (the accrual of interest is resumed) if the following criteria are met: (i) the borrower has performed under the modified terms for a minimum of six months and/or six payments, and (ii) the Firm has an expectation that repayment of the modified loan is reasonably assured based on, for example, the borrower’s debt capacity and level of future earnings, collateral values, LTV ratios, and other current market considerations. In certain limited and well-defined circumstances in which the loan is current at the modification date, such loans are not placed on nonaccrual status at the time of modification.

Loans modified in TDRs are generally measured for impairment using the Firm’s established asset-specific allowance methodology, which considers the expected re-default rates for the modified loans. A loan modified in a TDR generally remains subject to the asset-specific component of the allowance throughout its remaining life, regardless of whether the loan is performing and has been returned to accrual status. Refer to Note 13 for further discussion of the methodology used to estimate the Firm’s asset-specific allowance.

Foreclosed property

The Firm acquires property from borrowers through loan restructurings, workouts, and foreclosures. Property acquired may include real property (e.g., residential real estate, land, and buildings) and commercial and personal property (e.g., automobiles, aircraft, railcars, and ships).

The Firm recognizes foreclosed property upon receiving assets in satisfaction of a loan (e.g., by taking legal title or physical possession). For loans collateralized by real property, the Firm generally recognizes the asset received at foreclosure sale or upon the execution of a deed in lieu of foreclosure transaction with the borrower. Foreclosed assets are reported in other assets on the Consolidated balance sheets and initially recognized at fair value less estimated costs to sell. Each quarter the fair value of the acquired property is reviewed and adjusted, if necessary, to the lower of cost or fair value. Subsequent adjustments to fair value are charged/credited to noninterest revenue. Operating expense, such as real estate taxes and maintenance, are charged to other expense.

Loan portfolio

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

Credit card

Wholesale(c)(d)

• Residential real estate(a)

• Auto and other(b)

• Credit card loans

• Secured by real estate

• Commercial and industrial

• Other(e)

(a)Includes scored mortgage and home equity loans held in CCB and AWM, and scored mortgage loans held in CIB and Corporate.

(b)Includes scored auto and business banking loans and overdrafts.

(c)Includes loans held in CIB, CB, AWM, Corporate, as well as risk-rated BWM and auto dealer loans held in CCB, for which the wholesale methodology is applied when determining the allowance for loan losses.

(d)The wholesale portfolio segment's classes align with loan classifications as defined by the bank regulatory agencies, based on the loan's collateral, purpose, and type of borrower.

(e)Includes loans to financial institutions, states and political subdivisions, SPEs, nonprofits, personal investment companies and trusts, as well as loans to individuals and individual entities (predominantly Global Private Bank clients within AWM and J.P. Morgan Wealth Management within CCB). Refer to Note 14 for more information on SPEs.

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


December 31, 2022	Consumer, excluding credit card			Credit card			Wholesale			Total(a)(b)
(in millions)
Retained		$	300,753		$	185,175		$	603,670		$	1,089,598
Held-for-sale		618			—			3,352			3,970
At fair value		10,004			—			32,075			42,079
Total		$	311,375		$	185,175		$	639,097		$	1,135,647

December 31, 2021	Consumer, excluding credit card				Credit card			Wholesale			Total(a)(b)
(in millions)
Retained		$	295,556		$	154,296		$	560,354		$	1,010,206
Held-for-sale		1,287			—			7,401			8,688
At fair value		26,463			—			32,357			58,820
Total		$	323,306		$	154,296		$	600,112		$	1,077,714

(a)Excludes $5.2 billion and $2.7 billion of accrued interest receivable at December 31, 2022 and 2021, respectively. The Firm wrote off accrued interest receivable of $39 million and $56 million for the years ended December 31, 2022 and 2021, respectively.

(b)Loans (other than those 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 December 31, 2022 and 2021.

The following tables provide information about the carrying value of retained loans purchased, sold and reclassified to held-for-sale during the periods indicated. Loans that were reclassified to held-for-sale and sold in a subsequent period are excluded from the sales line of this table.


		2022
Year ended December 31, (in millions)	Consumer, excluding credit card				Credit card			Wholesale			Total
Purchases		$	1,625	(b)(c)		$	—		$	1,088		$	2,713
Sales		2,884				—			41,934			44,818
Retained loans reclassified to held-for-sale(a)		229				—			1,055			1,284


		2021
Year ended December 31, (in millions)	Consumer, excluding credit card				Credit card			Wholesale			Total
Purchases		$	515	(b)(c)		$	—		$	1,122		$	1,637
Sales		799				—			31,022			31,821
Retained loans reclassified to held-for-sale(a)		1,225				—			2,178			3,403


		2020
Year ended December 31, (in millions)	Consumer, excluding credit card				Credit card			Wholesale			Total
Purchases		$	3,474	(b)(c)		$	—		$	1,159		$	4,633
Sales		352				—			17,916			18,268
Retained loans reclassified to held-for-sale(a)		2,084				787			1,580			4,451

(a)Reclassifications of loans to held-for-sale are non-cash transactions.

(b)Predominantly includes purchases of residential real estate loans, including the Firm’s voluntary repurchases of certain delinquent loans from loan pools as permitted by Government National Mortgage Association (“Ginnie Mae”) guidelines for the years ended December 31, 2022, 2021 and 2020. 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.

(c)Excludes purchases of retained loans of $12.4 billion, $25.8 billion and $16.3 billion for the years ended December 31, 2022, 2021 and 2020, respectively, which are predominantly sourced through the correspondent origination channel and underwritten in accordance with the Firm’s standards.

The amount of purchases of retained loans at December 31, 2020 has been revised to conform with the current presentation.

Gains and losses on sales of loans

Net gains/(losses) on sales of loans and lending-related commitments (including adjustments to record loans and lending-related commitments held-for-sale at the lower of cost or fair value) recognized in noninterest revenue was $(186) million for the year ended December 31, 2022 of which $(48) million was related to loans. Net gains/(losses) on sales of loans and lending-related commitments was $261 million for the year ended December 31, 2021 of which $253 million was related to loans. Net losses on sales of loans was $(36) million for the year ended December 31, 2020. In addition, the sale of loans may also result in write downs, recoveries or changes in the allowance recognized in the provision for credit losses.

Consumer, excluding credit card loan portfolio

Consumer loans, excluding credit card loans, consist primarily of scored residential mortgages, home equity loans and lines of credit, auto and business banking loans, with a focus on serving the prime consumer credit market. The portfolio also includes home equity loans secured by junior liens, prime mortgage loans with an interest-only payment period, and certain payment-option loans that may result in negative amortization.

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


December 31, (in millions)	2022		2021
Residential real estate	$	237,561	$	224,795
Auto and other(a)	63,192		70,761
Total retained loans	$	300,753	$	295,556

(a)At December 31, 2022 and 2021, included $350 million and $5.4 billion of loans, respectively, in Business Banking under the PPP.

Delinquency rates are the primary credit quality indicator for consumer loans. Loans that are more than 30 days past due provide an early warning of borrowers who may be experiencing financial difficulties and/or who may be unable or unwilling to repay the loan. As the loan continues to age, it becomes more clear whether the borrower is likely to be unable or unwilling to pay. In the case of residential real estate loans, late-stage delinquencies (greater than 150 days past due) are a strong indicator of loans that will ultimately result in a foreclosure or similar liquidation transaction. In addition to delinquency rates, other credit quality indicators for consumer loans vary based on the class of loan, as follows:

•For residential real estate loans, the current estimated LTV ratio, or the combined LTV ratio in the case of junior lien loans, is an indicator of the potential loss severity in the event of default. Additionally, LTV or combined LTV ratios can provide insight into a borrower’s continued willingness to pay, as the delinquency rate of high-LTV loans tends to be greater than that for loans where the borrower has equity in the collateral. The geographic distribution of the loan collateral also provides insight as to the credit quality of the portfolio, as factors such as the regional economy, home price changes and specific events such as natural disasters, will affect credit quality. The borrower’s current or “refreshed” FICO score is a secondary credit quality indicator for certain loans, as FICO scores are an indication of the borrower’s credit payment history. Thus, a loan to a borrower with a low FICO score (less than 660) is considered to be of higher risk than a loan to a borrower with a higher FICO score. Further, a loan to a borrower with a high LTV ratio and a low FICO score is at greater risk of default than a loan to a borrower that has both a high LTV ratio and a high FICO score.

•For scored auto and business banking loans, geographic distribution is an indicator of the credit performance of the portfolio. Similar to residential real estate loans, geographic distribution provides insights into the portfolio performance based on regional economic activity and events.

Residential real estate

The following tables provide information on delinquency, which is the primary credit quality indicator for retained residential real estate loans.


(in millions, except ratios)	December 31, 2022
	Term loans by origination year(d)																		Revolving loans						Total
	2022			2021			2020			2019			2018			Prior to 2018			Within the revolving period			Converted to term loans
Loan delinquency(a)(b)
Current	$	39,934		$	66,072		$	43,315		$	15,397		$	6,339		$	49,632		$	5,589		$	9,685		$	235,963
30–149 days past due	29			11			14			20			20			597			15			208			914
150 or more days past due	1			1			6			10			7			480			4			175			684
Total retained loans	$	39,964		$	66,084		$	43,335		$	15,427		$	6,366		$	50,709		$	5,608		$	10,068		$	237,561
% of 30+ days past due to total retained loans(c)	0.08		%	0.02		%	0.05		%	0.19		%	0.42		%	2.07		%	0.34		%	3.80		%	0.66		%


(in millions, except ratios)	December 31, 2021
	Term loans by origination year(d)																		Revolving loans						Total
	2021			2020			2019			2018			2017			Prior to 2017			Within the revolving period			Converted to term loans
Loan delinquency(a)(b)
Current	$	68,742		$	48,334		$	18,428		$	7,929		$	11,684		$	49,147		$	6,392		$	11,807		$	222,463
30–149 days past due	13			23			27			27			22			578			11			182			883
150 or more days past due	—			11			21			25			33			1,069			6			284			1,449
Total retained loans	$	68,755		$	48,368		$	18,476		$	7,981		$	11,739		$	50,794		$	6,409		$	12,273		$	224,795
% of 30+ days past due to total retained loans(c)	0.02		%	0.07		%	0.26		%	0.65		%	0.47		%	3.18		%	0.27		%	3.80		%	1.02		%

(a)Individual delinquency classifications include mortgage loans insured by U.S. government agencies which were not material at December 31, 2022 and 2021.

(b)At December 31, 2022 and 2021, loans under payment deferral programs offered in response to the COVID-19 pandemic which are still within their deferral period and performing according to their modified terms are generally not considered delinquent.

(c)Excludes mortgage loans that are 30 or more days past due insured by U.S. government agencies which were not material at December 31, 2022 and 2021. These amounts have been excluded based upon the government guarantee.

(d)Purchased loans are included in the year in which they were originated.

Approximately 37% of the total revolving loans are senior lien loans; the remaining balance are junior lien loans. The lien position the Firm holds is considered in the Firm’s allowance for credit losses. Revolving loans that have been converted to term loans have higher delinquency rates than those that are still within the revolving period. That is primarily because the fully-amortizing payment that is generally required for those products is higher than the minimum payment options available for revolving loans within the revolving period.

Nonaccrual loans and other credit quality indicators

The following table provides information on nonaccrual and other credit quality indicators for retained residential real estate loans.


(in millions, except weighted-average data)	December 31, 2022			December 31, 2021
Nonaccrual loans(a)(b)(c)(d)(e)	$	3,745		$	4,759

Current estimated LTV ratios(f)(g)(h)
Greater than 125% and refreshed FICO scores:
Equal to or greater than 660	$	2		$	2
Less than 660	—			2
101% to 125% and refreshed FICO scores:
Equal to or greater than 660	174			37
Less than 660	6			15
80% to 100% and refreshed FICO scores:
Equal to or greater than 660	12,034			2,701
Less than 660	184			89
Less than 80% and refreshed FICO scores:
Equal to or greater than 660	215,096			209,295
Less than 660	8,659			9,658
No FICO/LTV available	1,360			2,930
U.S. government-guaranteed	46			66
Total retained loans	$	237,561		$	224,795

Weighted average LTV ratio(f)(i)	51		%	50		%
Weighted average FICO(g)(i)	769			765

Geographic region(j)
California	$	73,111		$	71,383
New York	34,469			32,545
Florida	18,868			16,182
Texas	14,961			13,865
Illinois	11,293			11,565
Colorado	9,968			8,885
Washington	9,059			8,292
New Jersey	7,106			6,832
Massachusetts	6,379			6,105
Connecticut	5,432			5,242
All other	46,915			43,899
Total retained loans	$	237,561		$	224,795

(a)Includes collateral-dependent residential real estate loans that are charged down to the fair value of the underlying collateral less costs 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 December 31, 2022, approximately 5% of Chapter 7 residential real estate loans were 30 days or more past due.

(b)Nonaccrual loans exclude mortgage loans insured by U.S. government agencies which were not material at December 31, 2022 and 2021.

(c)Generally, all consumer nonaccrual loans have an allowance. In accordance with regulatory guidance, certain nonaccrual loans that are considered collateral-dependent have been charged down to the lower of amortized cost or the fair value of their underlying collateral less costs to sell. If the value of the underlying collateral improves subsequent to charge down, the related allowance may be negative.

(d)Interest income on nonaccrual loans recognized on a cash basis was $175 million and $172 million for the years ended December 31, 2022 and 2021, respectively.

(e)Generally excludes loans under payment deferral programs offered in response to the COVID-19 pandemic.

(f)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. Current estimated combined LTV for junior lien home equity loans considers all available lien positions, as well as unused lines, related to the property.

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

(h)Includes residential real estate loans, primarily held in LLCs in AWM that did not have a refreshed FICO score. These loans have been included in a FICO band based on management’s estimation of the borrower’s credit quality.

(i)Excludes loans with no FICO and/or LTV data available.

(j)The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at December 31, 2022.

Loan modifications

Modifications of residential real estate loans, where the Firm grants concessions to borrowers who are experiencing financial difficulty are generally accounted for and reported as TDRs. Loans with short-term or other insignificant modifications that are not considered concessions are not TDRs. The carrying value of new TDRs was $362 million, $866 million and $819 million for the years ended December 31, 2022, 2021 and 2020, respectively. There were no additional commitments to lend to borrowers whose residential real estate loans have been modified in TDRs.

Nature and extent of modifications

The Firm’s proprietary modification programs as well as government programs, including U.S. GSE programs, generally provide various concessions to financially troubled borrowers including, but not limited to, interest rate reductions, term or payment extensions and delays of principal and/or interest payments that would otherwise have been required under the terms of the original agreement. The following table provides information about how residential real estate loans were modified in TDRs under the Firm’s loss mitigation programs described above during the periods presented. This table excludes Chapter 7 loans where the sole concession granted is the discharge of debt and loans with short-term or other insignificant modifications that are not considered concessions.



Year ended December 31,	2022		2021		2020
Number of loans approved for a trial modification	3,902		6,246		5,522
Number of loans permanently modified	4,182		4,588		6,850
Concession granted:(a)
Interest rate reduction	54	%	74	%	50	%
Term or payment extension	67		53		49
Principal and/or interest deferred	10		23		14
Principal forgiveness	1		2		2
Other(b)	37		36		66

(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 payment delays that meet the definition of a TDR.

Financial effects of modifications and redefaults

The following table provides information about the financial effects of the various concessions granted in modifications of residential real estate loans under the loss mitigation programs described above and about redefaults of certain loans modified in TDRs for the periods presented. The following table presents only the financial effects of permanent modifications and do not include temporary concessions offered through trial modifications. This table also excludes Chapter 7 loans where the sole concession granted is the discharge of debt and loans with short-term or other insignificant modifications that are not considered concessions.


Year ended December 31, (in millions, except weighted - average data)	2022			2021			2020
Weighted-average interest rate of loans with interest rate reductions – before TDR	4.75		%	4.54		%	5.09		%
Weighted-average interest rate of loans with interest rate reductions – after TDR	3.35			2.92			3.28
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR	22			23			22
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR	38			38			39
Charge-offs recognized upon permanent modification	$	1		$	—		$	5
Principal deferred	16			28			16
Principal forgiven	2			1			5
Balance of loans that redefaulted within one year of permanent modification(a)	$	147		$	160		$	199

(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 will generally be liquidated through foreclosure or another similar type of liquidation transaction. Redefaults of loans modified within the last twelve months may not be representative of ultimate redefault levels.

At December 31, 2022, the weighted-average estimated remaining lives of residential real estate loans permanently modified in TDRs were six years. The estimated remaining lives of these loans reflect estimated prepayments, both voluntary and involuntary (i.e., foreclosures and other forced liquidations).

Active and suspended foreclosure

At December 31, 2022 and 2021, the Firm had residential real estate loans, excluding those insured by U.S. government agencies, with a carrying value of $565 million and $619 million, respectively, that were not included in REO, but were in the process of active or suspended foreclosure.

Auto and other

The following tables provide information on delinquency, which is the primary credit quality indicator for retained auto and other consumer loans.


	December 31, 2022
(in millions, except ratios)	Term loans by origination year																		Revolving loans
	2022			2021			2020			2019			2018			Prior to 2018			Within the revolving period			Converted to term loans			Total
Loan delinquency
Current	$	22,187		$	20,212	(b)	$	11,401	(b)	$	3,991		$	1,467		$	578		$	2,342		$	118		$	62,296
30–119 days past due	263			308			100			68			33			17			12			10			811
120 or more days past due	—			53			24			—			—			1			2			5			85
Total retained loans	$	22,450		$	20,573		$	11,525		$	4,059		$	1,500		$	596		$	2,356		$	133		$	63,192
% of 30+ days past due to total retained loans(a)	1.17		%	1.15		%	0.83		%	1.68		%	2.20		%	3.02		%	0.59		%	11.28		%	1.18		%


	December 31, 2021
(in millions, except ratios)	Term loans by origination year																		Revolving loans
	2021			2020			2019			2018			2017			Prior to 2017			Within the revolving period			Converted to term loans			Total
Loan delinquency
Current	$	35,323	(c)	$	18,324	(c)	$	7,443		$	3,671		$	1,800		$	666		$	2,242		$	120		$	69,589
30–119 days past due	192			720			88			53			31			21			12			6			1,123
120 or more days past due	—			35			—			—			1			1			5			7			49
Total retained loans	$	35,515		$	19,079		$	7,531		$	3,724		$	1,832		$	688		$	2,259		$	133		$	70,761
% of 30+ days past due to total retained loans(a)	0.54		%	0.47		%	1.17		%	1.42		%	1.75		%	3.20		%	0.75		%	9.77		%	0.71		%	(d)

(a)At December 31, 2022 and 2021, auto and other loans excluded $153 million and $667 million, respectively, of PPP loans guaranteed by the SBA that are 30 or more days past due. These amounts have been excluded based upon the SBA guarantee.

(b)Includes $252 million of loans originated in 2021 and $98 million of loans originated in 2020 in Business Banking under the PPP. PPP loans are guaranteed by the SBA. Other than in certain limited circumstances, the Firm typically does not recognize charge-offs, classify as nonaccrual nor record an allowance for loan losses on these loans.

(c)Includes $4.4 billion of loans originated in 2021 and $1.0 billion of loans originated in 2020 in Business Banking under the PPP.

(d)Prior-period amount has been revised to conform with the current presentation.

Nonaccrual and other credit quality indicators

The following table provides information on nonaccrual and other credit quality indicators for retained auto and other consumer loans.


(in millions)	Total Auto and other
	December 31, 2022		December 31, 2021
Nonaccrual loans(a)(b)(c)	$	129	$	119

Geographic region(d)
California	$	9,689	$	11,163
Texas	7,216		7,859
Florida	4,847		4,901
New York	4,345		5,848
Illinois	2,839		2,930
New Jersey	2,219		2,355
Pennsylvania	1,822		2,004
Georgia	1,708		1,748
Ohio	1,603		1,843
Louisiana	1,576		1,801
All other	25,328		28,309
Total retained loans	$	63,192	$	70,761

(a)At December 31, 2022 and 2021, nonaccrual loans excluded $101 million and $506 million, respectively, of PPP loans 90 or more days past due and guaranteed by the SBA, of which $76 million and $35 million, respectively, were no longer accruing interest based on the guidelines set by the SBA. Typically the principal balance of the loans is insured and interest is guaranteed at a specified reimbursement rate subject to meeting the guidelines set by the SBA. There were no loans that were not guaranteed by the SBA that are 90 or more days past due and still accruing interest at December 31, 2022 and 2021.

(b)Generally, all consumer nonaccrual loans have an allowance. In accordance with regulatory guidance, certain nonaccrual loans that are considered collateral-dependent have been charged down to the lower of amortized cost or the fair value of their underlying collateral less costs to sell. If the value of the underlying collateral improves subsequent to charge down, the related allowance may be negative.

(c)Interest income on nonaccrual loans recognized on a cash basis was not material for the years ended December 31, 2022 and 2021.

(d)The geographic regions presented in this table are ordered based on the magnitude of the corresponding loan balances at December 31, 2022.

Loan modifications

Certain auto and other loan modifications are considered to be TDRs as they provide various concessions to borrowers who are experiencing financial difficulty. Loans with short-term or other insignificant modifications that are not considered concessions are not TDRs.

The impact of these modifications, as well as new TDRs, were not material to the Firm for the years ended December 31, 2022, 2021 and 2020. Additional commitments to lend to borrowers whose loans have been modified in TDRs as of December 31, 2022 and 2021 were not material.

Credit card loan portfolio

The credit card portfolio segment includes credit card loans originated and purchased by the Firm. Delinquency rates are the primary credit quality indicator for credit card loans as they provide an early warning that borrowers may be experiencing difficulties (30 days past due); information on those borrowers that have been delinquent for a longer period of time (90 days past due) is also considered. In addition to delinquency rates, the geographic distribution of the loans provides insight as to the credit quality of the portfolio based on the regional economy.

While the borrower’s credit score is another general indicator of credit quality, the Firm does not view credit scores as a primary indicator of credit quality because the borrower’s credit score tends to be a lagging indicator. The

distribution of such scores provides a general indicator of credit quality trends within the portfolio; however, the score does not capture all factors that would be predictive of future credit performance. Refreshed FICO score information, which is obtained at least quarterly, for a statistically significant random sample of the credit card portfolio is indicated in the following table. FICO is considered to be the industry benchmark for credit scores.

The Firm generally originates new credit card accounts to prime consumer borrowers. However, certain cardholders’ FICO scores may decrease over time, depending on the performance of the cardholder and changes in the credit score calculation.

The following tables provide information on delinquency, which is the primary credit quality indicator for retained credit card loans.


(in millions, except ratios)	December 31, 2022
	Within the revolving period			Converted to term loans(a)			Total
Loan delinquency
Current and less than 30 days past due and still accruing	$	181,793		$	696		$	182,489
30–89 days past due and still accruing	1,356			64			1,420
90 or more days past due and still accruing	1,230			36			1,266
Total retained loans	$	184,379		$	796		$	185,175
Loan delinquency ratios
% of 30+ days past due to total retained loans	1.40		%	12.56		%	1.45		%
% of 90+ days past due to total retained loans	0.67			4.52			0.68


(in millions, except ratios)	December 31, 2021
	Within the revolving period			Converted to term loans(a)			Total
Loan delinquency
Current and less than 30 days past due and still accruing	$	151,798		$	901		$	152,699
30–89 days past due and still accruing	770			59			829
90 or more days past due and still accruing	741			27			768
Total retained loans	$	153,309		$	987		$	154,296
Loan delinquency ratios
% of 30+ days past due to total retained loans	0.99		%	8.71		%	1.04		%
% of 90+ days past due to total retained loans	0.48			2.74			0.50

(a)Represents TDRs.

Other credit quality indicators

The following table provides information on other credit quality indicators for retained credit card loans.


(in millions, except ratios)	December 31, 2022			December 31, 2021
Geographic region(a)
California	$	28,154		$	23,030
Texas	19,171			15,879
New York	15,046			12,652
Florida	12,905			10,412
Illinois	10,089			8,530
New Jersey	7,643			6,367
Ohio	5,792			4,923
Pennsylvania	5,517			4,708
Colorado	5,493			4,573
Arizona	4,487			3,668
All other	70,878			59,554
Total retained loans	$	185,175		$	154,296
Percentage of portfolio based on carrying value with estimated refreshed FICO scores
Equal to or greater than 660	86.8		%	88.5		%
Less than 660	13.0			11.3
No FICO available	0.2			0.2

(a)The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at December 31, 2022.

Loan modifications

The Firm may offer loan modification programs granting concessions to credit card borrowers who are experiencing financial difficulty. The Firm grants concessions for most of the credit card loans under long-term programs. These modifications involve placing the customer on a fixed payment plan, generally for 60 months, and typically include reducing the interest rate on the credit card. Substantially all modifications under the Firm’s long-term programs are considered to be TDRs. Loans with short-term or other insignificant modifications that are not considered concessions are not TDRs.

If the cardholder does not comply with the modified payment terms, then the credit card loan continues to age and will ultimately be charged-off in accordance with the Firm’s standard charge-off policy. In most cases, the Firm does not reinstate the borrower’s line of credit.

Financial effects of modifications and redefaults

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. For all periods disclosed, new enrollments were less than 1% of total retained credit card loans.


Year ended December 31, (in millions, except weighted-average data)	2022			2021			2020
Balance of new TDRs(a)	$	418		$	393		$	818
Weighted-average interest rate of loans – before TDR	19.86		%	17.75		%	18.04		%
Weighted-average interest rate of loans – after TDR	4.13			5.14			4.64
Balance of loans that redefaulted within one year of modification(b)	$	34		$	57		$	110

(a)Represents the outstanding balance prior to modification.

(b)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.

For credit card loans modified in TDRs, payment default is deemed to have occurred when the borrower misses two consecutive contractual payments. Defaulted modified credit card loans remain in the modification program and continue to be charged off in accordance with the Firm’s standard charge-off policy.

Wholesale loan portfolio

Wholesale loans include loans made to a variety of clients, ranging from large corporate and institutional clients to high-net-worth individuals.

The primary credit quality indicator for wholesale loans is the internal risk rating assigned to each loan. Risk ratings are used to identify the credit quality of loans and differentiate risk within the portfolio. Risk ratings on loans consider the PD and the LGD. The PD is the likelihood that a loan will default. The LGD is the estimated loss on the loan that would be realized upon the default of the borrower and takes into consideration collateral and structural support for each credit facility.

Management considers several factors to determine an appropriate internal risk rating, including the obligor’s debt capacity and financial flexibility, the level of the obligor’s earnings, the amount and sources for repayment, the level and nature of contingencies, management strength, and the industry and geography in which the obligor operates. The Firm’s internal risk ratings generally align with the qualitative characteristics (e.g., borrower capacity to meet financial commitments and vulnerability to changes in the economic environment) defined by S&P and Moody’s, however the quantitative characteristics (e.g., PD and LGD) may differ as they reflect internal historical experiences and assumptions. The Firm generally considers internal ratings with qualitative characteristics equivalent to BBB-/Baa3 or higher as investment grade, and these ratings have a lower PD and/or lower LGD than non-investment grade ratings.

Noninvestment-grade ratings are further classified as noncriticized and criticized, and the criticized portion is further subdivided into performing and nonaccrual loans, representing management’s assessment of the collectibility of principal and interest. Criticized loans have a higher PD than noncriticized loans. The Firm’s definition of criticized aligns with the U.S. banking regulatory definition of criticized exposures, which consist of special mention, substandard and doubtful categories.

Risk ratings are reviewed on a regular and ongoing basis by Credit Risk Management and are adjusted as necessary for updated information affecting the obligor’s ability to fulfill its obligations.

As noted above, the risk rating of a loan considers the industry in which the obligor conducts its operations. As part of the overall credit risk management framework, the Firm focuses on the management and diversification of its industry and client exposures, with particular attention paid to industries with an actual or potential credit concern. Refer to Note 4 for further detail on industry concentrations.

The following tables provide information on internal risk rating, which is the primary credit quality indicator for retained wholesale loans.


December 31, (in millions, except ratios)	Secured by real estate						Commercial and industrial						Other(b)						Total retained loans
	2022			2021			2022			2021			2022			2021			2022			2021
Loans by risk ratings
Investment-grade	$	99,552		$	92,369		$	76,275		$	75,783		$	249,585		$	241,859		$	425,412		$	410,011
Noninvestment- grade:
Noncriticized	23,272			22,495			81,393			62,039			57,888			52,440			162,553			136,974
Criticized performing	3,662			3,645			8,974			6,900			1,106			770			13,742			11,315
Criticized nonaccrual(a)	246			326			1,018			969			699			759			1,963			2,054
Total noninvestment- grade	27,180			26,466			91,385			69,908			59,693			53,969			178,258			150,343
Total retained loans	$	126,732		$	118,835		$	167,660		$	145,691		$	309,278		$	295,828		$	603,670		$	560,354
% of investment-grade to total retained loans	78.55		%	77.73		%	45.49		%	52.02		%	80.70		%	81.76		%	70.47		%	73.17		%
% of total criticized to total retained loans	3.08			3.34			5.96			5.40			0.58			0.52			2.60			2.39
% of criticized nonaccrual to total retained loans	0.19			0.27			0.61			0.67			0.23			0.26			0.33			0.37

(a)At December 31, 2021 nonaccrual loans excluded $127 million of PPP loans 90 or more days past due and guaranteed by the SBA, predominantly in commercial and industrial. At December 31, 2022 the amount excluded was not material.

(b)Includes loans to financial institutions, states and political subdivisions, SPEs, nonprofits, personal investment companies and trusts, as well as loans to individuals and individual entities (predominantly Global Private Bank clients within AWM and J.P. Morgan Wealth Management within CCB). Refer to Note 14 for more information on SPEs.


	Secured by real estate
(in millions)	December 31, 2022
	Term loans by origination year												Revolving loans
	2022		2021		2020		2019		2018		Prior to 2018		Within the revolving period		Converted to term loans		Total
Loans by risk ratings
Investment-grade	$	24,134	$	22,407	$	14,773	$	14,666	$	5,277	$	17,289	$	1,006	$	—	$	99,552
Noninvestment-grade	6,072		5,602		3,032		3,498		2,395		5,659		920		2		27,180
Total retained loans	$	30,206	$	28,009	$	17,805	$	18,164	$	7,672	$	22,948	$	1,926	$	2	$	126,732


	Secured by real estate
(in millions)	December 31, 2021
	Term loans by origination year												Revolving loans
	2021		2020		2019		2018		2017		Prior to 2017		Within the revolving period		Converted to term loans		Total
Loans by risk ratings
Investment-grade	$	23,346	$	16,030	$	17,265	$	8,103	$	7,325	$	19,066	$	1,226	$	8	$	92,369
Noninvestment-grade	5,364		3,826		4,564		3,806		2,834		5,613		458		1		26,466
Total retained loans	$	28,710	$	19,856	$	21,829	$	11,909	$	10,159	$	24,679	$	1,684	$	9	$	118,835


	Commercial and industrial
(in millions)	December 31, 2022
	Term loans by origination year												Revolving loans
	2022		2021		2020		2019		2018		Prior to 2018		Within the revolving period		Converted to term loans		Total
Loans by risk ratings
Investment-grade	$	21,072	$	8,338	$	3,045	$	1,995	$	748	$	989	$	40,087	$	1	$	76,275	(a)
Noninvestment-grade	24,088		12,444		3,459		2,506		525		1,014		47,267		82		91,385
Total retained loans	$	45,160	$	20,782	$	6,504	$	4,501	$	1,273	$	2,003	$	87,354	$	83	$	167,660


	Commercial and industrial
(in millions)	December 31, 2021
	Term loans by origination year												Revolving loans
	2021		2020		2019		2018		2017		Prior to 2017		Within the revolving period		Converted to term loans		Total
Loans by risk ratings
Investment-grade	$	21,342	$	6,268	$	3,609	$	1,269	$	1,108	$	819	$	41,367	$	1	$	75,783	(b)
Noninvestment-grade	19,314		7,112		4,559		2,177		930		430		35,312		74		69,908
Total retained loans	$	40,656	$	13,380	$	8,168	$	3,446	$	2,038	$	1,249	$	76,679	$	75	$	145,691

(a)At December 31, 2022, $139 million of the $140 million total PPP loans in the wholesale portfolio were commercial and industrial. Of the $139 million, $58 million were originated in 2021, and $81 million were originated in 2020. PPP loans are guaranteed by the SBA and considered investment-grade. Other than in certain limited circumstances, the Firm typically does not recognize charge-offs, classify as nonaccrual nor record an allowance for loan losses on these loans.

(b)At December 31, 2021, $1.1 billion of the $1.3 billion total PPP loans in the wholesale portfolio were commercial and industrial. Of the $1.1 billion, $698 million were originated in 2021 and $396 million were originated in 2020.


	Other(a)
(in millions)	December 31, 2022
	Term loans by origination year												Revolving loans
	2022		2021		2020		2019		2018		Prior to 2018		Within the revolving period		Converted to term loans		Total
Loans by risk ratings
Investment-grade	$	32,121	$	15,864	$	13,015	$	4,529	$	2,159	$	7,251	$	171,049	$	3,597	$	249,585
Noninvestment-grade	16,829		7,096		1,821		699		451		475		32,240		82		59,693
Total retained loans	$	48,950	$	22,960	$	14,836	$	5,228	$	2,610	$	7,726	$	203,289	$	3,679	$	309,278


	Other(a)
(in millions)	December 31, 2021
	Term loans by origination year												Revolving loans
	2021		2020		2019		2018		2017		Prior to 2017		Within the revolving period		Converted to term loans		Total
Loans by risk ratings
Investment-grade	$	26,782	$	17,829	$	6,125	$	2,885	$	3,868	$	7,651	$	176,118	$	601	$	241,859
Noninvestment-grade	16,905		2,399		1,455		935		218		467		31,585		5		53,969
Total retained loans	$	43,687	$	20,228	$	7,580	$	3,820	$	4,086	$	8,118	$	207,703	$	606	$	295,828

(a)Includes loans to financial institutions, states and political subdivisions, SPEs, nonprofits, personal investment companies and trusts, as well as loans to individuals and individual entities (predominantly Global Private Bank clients within AWM and J.P. Morgan Wealth Management within CCB). Refer to Note 14 for more information on SPEs.

The following table presents additional information on retained loans secured by real estate within the Wholesale portfolio, which consists of loans secured wholly or substantially by a lien or liens on real property at origination. Multifamily lending includes financing for acquisition, leasing and construction of apartment buildings. Other commercial lending largely includes financing for acquisition, leasing and construction, largely for office, retail and industrial real estate. Included in secured by real estate loans is $6.4 billion and $5.7 billion as of December 31, 2022 and 2021, respectively, of construction and development loans made to finance land development and on-site construction of commercial, industrial, residential, or farm buildings.


December 31, (in millions, except ratios)	Multifamily						Other Commercial						Total retained loans secured by real estate
	2022			2021			2022			2021			2022			2021
Retained loans secured by real estate	$	79,139		$	73,801		$	47,593		$	45,034		$	126,732		$	118,835
Criticized	1,916			1,671			1,992			2,300			3,908			3,971
% of criticized to total retained loans secured by real estate	2.42		%	2.26		%	4.19		%	5.11		%	3.08		%	3.34		%
Criticized nonaccrual	$	51		$	91		$	195		$	235		$	246		$	326
% of criticized nonaccrual loans to total retained loans secured by real estate	0.06		%	0.12		%	0.41		%	0.52		%	0.19		%	0.27		%

Geographic distribution and delinquency

The following table provides information on the geographic distribution and delinquency for retained wholesale loans.


	Secured by real estate				Commercial and industrial				Other				Total retained loans
December 31, (in millions)	2022		2021		2022		2021		2022		2021		2022		2021
Loans by geographic distribution(a)
Total U.S.	$	123,740	$	115,732	$	125,324	$	106,449	$	230,525	$	215,750	$	479,589	$	437,931
Total non-U.S.	2,992		3,103		42,336		39,242		78,753		80,078		124,081		122,423
Total retained loans	$	126,732	$	118,835	$	167,660	$	145,691	$	309,278	$	295,828	$	603,670	$	560,354
Loan delinquency
Current and less than 30 days past due and still accruing	$	126,083	$	118,163	$	165,415	$	143,459	$	307,511	$	293,358	$	599,009	$	554,980
30–89 days past due and still accruing	402		331		1,127		1,193		1,015		1,590		2,544		3,114
90 or more days past due and still accruing(b)	1		15		100		70		53		121		154		206
Criticized nonaccrual(c)	246		326		1,018		969		699		759		1,963		2,054
Total retained loans	$	126,732	$	118,835	$	167,660	$	145,691	$	309,278	$	295,828	$	603,670	$	560,354

(a)The U.S. and non-U.S. distribution is determined based predominantly on the domicile of the borrower.

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

(c)At December 31, 2021 nonaccrual loans excluded $127 million of PPP loans 90 or more days past due and guaranteed by the SBA, predominantly in commercial and industrial. At December 31, 2022 the amount excluded was not material.

Nonaccrual loans

The following table provides information on retained wholesale nonaccrual loans.


December 31, (in millions)	Secured by real estate				Commercial and industrial				Other				Total retained loans
	2022		2021		2022		2021		2022		2021		2022		2021
Nonaccrual loans
With an allowance	$	172	$	254	$	686	$	604	$	487	$	286	$	1,345	$	1,144
Without an allowance(a)	74		72		332		365		212		473		618		910
Total nonaccrual loans(b)	$	246	$	326	$	1,018	$	969	$	699	$	759	$	1,963	$	2,054

(a)When the discounted cash flows or collateral value equals or exceeds the amortized cost of the loan, the loan does not require an allowance. This typically occurs when the loans have been partially charged off and/or there have been interest payments received and applied to the loan balance.

(b)Interest income on nonaccrual loans recognized on a cash basis were not material for the years ended December 31, 2022 and 2021.

Loan modifications

Certain loan modifications are considered to be TDRs as they provide various concessions to borrowers who are experiencing financial difficulty. Loans with short-term or other insignificant modifications that are not considered concessions are not TDRs nor are loans for which the Firm has elected to suspend TDR accounting guidance under the option provided by the CARES Act. New TDRs during the years ended December 31, 2022, 2021 and 2020 were $801 million, $881 million and $734 million, respectively. New TDRs during the years ended December 31, 2022, 2021 and 2020 reflected the extension of maturity dates, covenant waivers, receipt of assets in partial satisfaction of the loan and deferral of principal and interest payments, predominantly in the Commercial and Industrial and Other loan classes. The impact of these modifications resulting in new TDRs was not material to the Firm for the years ended December 31, 2022, 2021 and 2020.

The carrying value of TDRs was $936 million and $607 million as of December 31, 2022 and 2021, respectively.