JP Morgan Chase 2013 Annual Report Download - page 256

Notes to consolidated financial statements
262 JPMorgan Chase & Co./2013 Annual Report
The following tables summarize the Firm’s loan balances by portfolio segment.
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
December 31, 2012 Consumer, excluding
credit card Credit card(a) Wholesale Total
(in millions)
Retained $ 292,620 $ 127,993 $ 306,222 $ 726,835 (b)
Held-for-sale — — 4,406 4,406
At fair value — — 2,555 2,555
Total $ 292,620 $ 127,993 $ 313,183 $ 733,796
(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 $1.9 billion and $2.5 billion at December 31, 2013 and 2012, respectively.
The following table provides 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.
2013 2012
Years ended December 31,
(in millions)
Consumer,
excluding
credit card Credit card Wholesale Total
Consumer,
excluding
credit card Credit card Wholesale Total
Purchases $ 7,616 (a)(b) $ 328 $ 697 $ 8,641 $ 6,601 (a)(b) $ — $ 827 $ 7,428
Sales 4,845 — 4,232 9,077 1,852 — 3,423 5,275
Retained loans reclassified
to held-for-sale 1,261 309 5,641 7,211 — 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
$5.7 billion and $1.4 billion for the years ended December 31, 2013 and 2012, respectively.
The following table provides information about gains/(losses) on loan sales by portfolio segment.
Year ended December 31, (in millions) 2013 2012 2011
Net gains/(losses) on sales of loans (including lower of cost or fair value adjustments)(a)
Consumer, excluding credit card $ 313 $ 122 $ 131
Credit card 3(9) (24)
Wholesale (76) 180 121
Total net gains/(losses) on sales of loans (including lower of cost or fair value adjustments) $ 240 $ 293 $ 228
(a) Excludes sales related to loans accounted for at fair value.