JP Morgan Chase 2014 Annual Report Download - page 244

Notes to consolidated financial statements
242 JPMorgan Chase & Co./2014 Annual Report
The following tables summarize the Firm’s loan balances by portfolio segment.
December 31, 2014 Consumer, excluding
credit card Credit card(a) Wholesale Total
(in millions)
Retained $ 294,979 $ 128,027 $ 324,502 $ 747,508 (b)
Held-for-sale 395 3,021 3,801 7,217
At fair value — — 2,611 2,611
Total $ 295,374 $ 131,048 $ 330,914 $ 757,336
December 31, 2013 Consumer, excluding
credit card Credit card(a) Wholesale Total
(in millions)
Retained $ 288,449 $ 127,465 $ 308,263 $ 724,177 (b)
Held-for-sale 614 326 11,290 12,230
At fair value — — 2,011 2,011
Total $ 289,063 $ 127,791 $ 321,564 $ 738,418
(a) Includes billed finance charges and fees net of an allowance for uncollectible amounts.
(b) Loans (other than PCI loans and those for which the fair value option has been elected) are presented net of unearned income, unamortized discounts and
premiums, and net deferred loan costs of $1.3 billion and $1.9 billion at December 31, 2014 and 2013, respectively.
The following tables provide information about the carrying value of retained loans purchased, sold and reclassified to held-
for-sale during the periods indicated. These tables exclude loans recorded at fair value. The Firm manages its exposure to
credit risk on an ongoing basis. Selling loans is one way that the Firm reduces its credit exposures.
2014
Year ended December 31,
(in millions) Consumer, excluding credit card Credit card Wholesale Total
Purchases $ 7,434 (a)(b) $ — $ 885 $ 8,319
Sales 6,655 291 7,381 14,327
Retained loans reclassified to held-for-sale 1,190 3,039 581 4,810
2013
Year ended December 31,
(in millions) Consumer, excluding credit card Credit card Wholesale Total
Purchases $ 7,616 (a)(b) $ 328 $ 697 $ 8,641
Sales 4,845 — 4,232 9,077
Retained loans reclassified to held-for-sale 1,261 309 5,641 7,211
2012
Year ended December 31,
(in millions) Consumer, excluding credit card Credit card Wholesale Total
Purchases $ 6,601 (a)(b) $ — $ 827 $ 7,428
Sales 1,852 — 3,423 5,275
Retained loans reclassified to held-for-sale — 1,043 504 1,547
(a) Purchases predominantly represent the Firm’s voluntary repurchase of certain delinquent loans from loan pools as permitted by 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, the Federal Housing Administration (“FHA”), Rural Housing Services (“RHS”) and/or the U.S. Department of
Veterans Affairs (“VA”).
(b) Excluded retained loans purchased from correspondents that were originated in accordance with the Firm’s underwriting standards. Such purchases were
$15.1 billion, $5.7 billion and $1.4 billion for the years ended December 31, 2014, 2013 and 2012, respectively.
The following table provides information about gains and losses, including lower of cost or fair value adjustments, on loan sales
by portfolio segment.
Year ended December 31, (in millions) 2014 2013 2012
Net gains/(losses) on sales of loans (including lower of cost or fair value adjustments)(a)
Consumer, excluding credit card $ 341 $ 313 $ 122
Credit card (241) 3 (9)
Wholesale 101 (76) 180
Total net gains/(losses) on sales of loans (including lower of cost or fair value adjustments) $ 201 $ 240 $ 293
(a) Excludes sales related to loans accounted for at fair value.