JP Morgan Chase 2010 Annual Report Download - page 232

Notes to consolidated financial statements
232 JPMorgan Chase & Co./2010 Annual Report
Other consumer impaired loans
The tables below set 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 any loan that has been modified in a troubled debt restructuring.
Auto Business banking Total other consumer
(c)
December 31, (in millions)
2010
2009
2010
2009
2010
2009
Impaired loans
With an allowance
$
102
$ 118
$
774
$ 500
$
876
$
618
Without an allowance
(a)
— — — — —
—
Total impaired loans
$
102
$ 118
$
774
$ 500
$
876
$
618
Allowance for loan losses related to impaired loans $ 16 $ 30 $ 248 $ 129 $ 264 $
159
Unpaid principal balance of impaired loans(b) 132 137 899 577 1,031
714
(a) When discounted cash flows, collateral value or market price equals or exceeds the recorded investment in the loan, then 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 December 31, 2010 and 2009. 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 discounts or premiums on
purchased loans.
(c) There were no student and other loans modified in TDRs at December 31, 2010 and 2009.
The following table presents average impaired loans.
For the year ended December 31,
Impaired loans (average)
(
b
)
(in millions) 2010 2009 2008
Auto
$ 120 $ 100 $ 71
Business banking
682
396
200
Total other consumer
(a)
$ 802 $ 496 $ 271
(a) There were no student and other loans modified in TDRs at December 31, 2010, 2009 and 2008.
(b) The related interest income on impaired loans, including those on cash basis, were not material for the years 2010, 2009 and 2008.
The following table provides information about the Firm’s other consumer loans modified in troubled debt restructurings. These TDR loans are
included as impaired loans in the tables above.
Auto Business banking Total other consumer
(c)
December 31, (in millions)
2010
2009
2010
2009
2010
2009
Loans modified in troubled debt restructurings
(a)(b)
$ 91 $ 79 $ 395 $ 17 $ 486 $ 96
TDRs on nonaccrual status
39
30
268
16
307
46
(a) These modifications generally provided interest rate concessions to the borrower or deferral of principal repayments.
(b) Additional commitments to lend to borrowers whose loans have been modified in TDRs as of December 31, 2010 and 2009 are immaterial.
(c) There were no student and other loans modified in TDRs at December 31, 2010 and 2009.