JP Morgan Chase 2008 Annual Report Download - page 189

JPMorgan Chase & Co./ 2008 Annual Report 187
The table below includes information about delinquencies, net charge-offs and components of reported and securitized financial assets at December
31, 2008 and 2007.
90 days past due Nonaccrual Net loan charge-offs
Total Loans and still accruing assets(g)(h) Year ended
December 31, (in millions) 2008 2007 2008 2007 2008 2007 2008 2007
Home Equity $ 114,335 $ 94,832 $— $— $ 1,394 $ 786 $ 2,391 $ 564
Prime mortgage(a) 72,266 39,988 ——1,895 501 526 33
Subprime mortgage 15,330 15,473 ——2,690 1,017 933 157
Option ARMs 9,018 ———10 ———
Auto loans 42,603 42,350 ——148 116 568 354
Credit card 104,746 84,352 2,649 1,547 474,556 3,116
All other loans 33,715 25,314 463 421 430 341 459 242
Loans held-for-sale(b) 2,028 3,989 ————NA NA
Total consumer loans –
excluding purchased
credit-impaired 394,041 306,298 3,112 1,968 6,571 2,768 9,433 4,466
Consumer loans – purchased
credit-impaired(c) 88,813 ———————
Total consumer loans 482,854 306,298 3,112 1,968 6,571 2,768 9,433 4,466
Total wholesale loans 262,044 213,076 163 75 2,382(i) 514(i) 402 72
Total loans reported 744,898 519,374 3,275 2,043 8,953 3,282 9,835 4,538
Securitized loans:
Residential mortgage:
Prime mortgage(a) 212,274 77,582 ——21,130 1,215 5,645 7
Subprime mortgage 58,607 22,692 ——13,301 3,238 4,797 413
Option ARMs 48,328 ———6,440 —270 —
Automobile 791 2,276 ——2615 13
Credit card 85,571 72,701 1,802 1,050 ——3,612 2,380
Student 1,074 1,141 66 ———1—
Commercial and other 45,677 3,419 28 —166 —811
Total loans securitized(d) $ 452,322 $ 179,811 $ 1,896 $ 1,050 $41,039 $ 4,459 $14,348 $ 2,824
Total loans
reported and securitized(e) $ 1,197,220(f) $ 699,185(f) $ 5,171 $ 3,093 $49,992 $ 7,741 $24,183 $ 7,362
(a) Includes Alt-A loans.
(b) Includes loans for prime mortgage and other (largely student loans) of $206 million and $1.8 billion at December 31, 2008, respectively, and $570 million and $3.4 billion at December
31, 2007, respectively.
(c) Purchased credit-impaired loans represent loans acquired in the Washington Mutual acquisition that were considered credit-impaired under SOP 03-3, and include $6.4 billion of loans
that were nonperforming immediately prior to the acquisition. Under SOP 03-3, these loans are considered to be performing loans as of the acquisition date; they accrete interest income
over the estimated life of the loan when cash flows are reasonably estimable, even if the underlying loans are contractually past due. For additional information, see Note 14 on pages
175–178 of this Annual Report.
(d) Total assets held in securitization-related SPEs were $640.8 billion and $307.7 billion at December 31, 2008 and 2007, respectively.The $452.3 billion and $179.8 billion of loans secu-
ritized at December 31, 2008 and 2007, respectively, excludes $152.4 billion and $107.8 billion of securitized loans, respectively, in which the Firm has no continuing involvement; $33.3
billion and $18.6 billion of seller’s interests in credit card master trusts, respectively; and $2.8 billion and $1.5 billion of cash amounts on deposit and escrow accounts.
(e) Represents both loans on the Consolidated Balance Sheets and loans that have been securitized.
(f) Includes securitized loans that were previously recorded at fair value and classified as trading assets.
(g) During the second quarter of 2008, the policy for classifying subprime mortgage and home equity loans as nonperforming was changed to conform to all other home lending products.
Amounts for 2007 have been revised to reflect this change.
(h) Excludes nonperforming assets related to (i) loans eligible for repurchase, as well as loans repurchased from GNMA pools that are insured by U.S. government agencies, of $3.3 billion
and $1.5 billion at December 31, 2008 and 2007, respectively, and (ii) student loans that are 90 days past due and still accruing, which are insured by U.S. government agencies under
the Federal Family Education Loan Program, of $437 million and $417 million at December 31, 2008 and 2007, respectively. These amounts for GNMA and student loans are excluded,
as reimbursement is proceeding normally.
(i) Includes nonperforming loans held-for-sale and loans at fair value of $32 million and $50 million at December 31, 2008 and 2007, respectively.