JP Morgan Chase 2013 Annual Report Download - page 266

Notes to consolidated financial statements
272 JPMorgan Chase & Co./2013 Annual Report
(c) For risk-rated business banking and auto loans, the primary credit quality indicator is the risk rating of the loan, including whether the loans are
considered to be criticized and/or nonaccrual.
(d) December 31, 2013 and 2012, excluded loans 30 days or more past due and still accruing, which are insured by U.S. government agencies under the
FFELP, of $737 million and $894 million, respectively. These amounts were excluded as reimbursement of insured amounts is proceeding normally.
Other consumer impaired loans and loan modifications
The table below sets 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 loans that have been modified in TDRs.
December 31,
(in millions)
Auto Business banking Total other consumer(c)
2013 2012 2013 2012 2013 2012
Impaired loans
With an allowance $ 96 $ 78 $ 475 $ 543 $ 571 $ 621
Without an allowance(a) 47 72 ——47 72
Total impaired loans $ 143 $ 150 $ 475 $ 543 $ 618 $ 693
Allowance for loan losses related to impaired loans $ 13 $ 12 $ 94 $ 126 $ 107 $ 138
Unpaid principal balance of impaired loans(b) 235 259 553 624 788 883
Impaired loans on nonaccrual status 113 109 328 394 441 503
(a) When discounted cash flows, collateral value or market price equals or exceeds the recorded investment in the loan, 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, 2013 and 2012. 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 unamortized discounts or premiums on purchased loans.
(c) There were no impaired student and other loans at December 31, 2013 and 2012.
The following table presents average impaired loans for the periods presented.
Year ended December 31,
(in millions)
Average impaired loans(b)
2013 2012 2011
Auto $ 132 $ 111 $ 92
Business banking 516 622 760
Total other consumer(a) $ 648 $ 733 $ 852
(a) There were no impaired student and other loans for the years ended 2013, 2012 and 2011.
(b) The related interest income on impaired loans, including those on a cash basis, was not material for the years ended 2013, 2012 and 2011.
Loan modifications
The following table provides information about the Firm’s other consumer loans modified in TDRs. All of these TDRs are
reported as impaired loans in the tables above.
December 31,
(in millions)
Auto Business banking Total other consumer(c)
2013 2012 2013 2012 2013 2012
Loans modified in troubled debt restructurings(a)(b) $ 107 $ 150 $ 271 $ 352 $ 378 $ 502
TDRs on nonaccrual status 77 109 124 203 201 312
(a) These modifications generally provided interest rate concessions to the borrower or term or payment extensions.
(b) Additional commitments to lend to borrowers whose loans have been modified in TDRs as of December 31, 2013 and 2012 were immaterial.
(c) There were no student and other loans modified in TDRs at December 31, 2013 and 2012.