JP Morgan Chase 2013 Annual Report Download - page 277

JPMorgan Chase & Co./2013 Annual Report 283
Loan modifications
Certain loan modifications are considered to be TDRs as they provide various concessions to borrowers who are experiencing
financial difficulty. All TDRs are reported as impaired loans in the tables above.
The following table provides information about the Firm’s wholesale loans that have been modified in TDRs, including a
reconciliation of the beginning and ending balances of such loans and information regarding the nature and extent of
modifications during the periods presented.
Years ended December 31,
(in millions)
Commercial and industrial Real estate Other(b) Total
2013 2012 2011 2013 2012 2011 2013 2012 2011 2013 2012 2011
Beginning balance of TDRs $ 575 $ 531 $ 212 $ 99 $ 176 $ 907 $ 22 $ 43 $ 24 $ 696 $ 750 $ 1,143
New TDRs 60 162 665 43 43 113 50 73 32 153 278 810
Increases to existing TDRs 4183 96 —— 16 —— — 4183 112
Charge-offs post-modification (9) (27) (30) (3) (2) (146) —(7) — (12) (36) (176)
Sales and other(a) (553) (274) (412) (51) (118) (714) (39) (87) (13) (643) (479) (1,139)
Ending balance of TDRs $ 77 $ 575 $ 531 $ 88 $ 99 $ 176 $ 33 $ 22 $ 43 $ 198 $ 696 $ 750
TDRs on nonaccrual status $ 77 $ 522 $ 415 $ 61 $ 92 $ 128 $ 30 $ 22 $ 35 $ 168 $ 636 $ 578
Additional commitments to lend
to borrowers whose loans have
been modified in TDRs 19 44 147 —— — —2 — 19 46 147
(a) Sales and other are largely sales and paydowns, but also includes performing loans restructured at market rates that were removed from the reported TDR balance of $12
million, $44 million and $152 million during the years ended December 31, 2013, 2012 and 2011 respectively. Loans that have been removed continue to be evaluated along
with other impaired loans to determine the asset-specific component of the allowance for loan losses (see page 260 of this Note).
(b) Includes loans to Financial institutions, Government agencies and Other.
Financial effects of modifications and redefaults
Wholesale loans modified as TDRs are typically term or
payment extensions and, to a lesser extent, deferrals of
principal and/or interest on commercial and industrial and
real estate loans. For the years ended December 31, 2013,
2012 and 2011, the average term extension granted on
wholesale loans with term or payment extensions was 2.1
years, 1.1 years and 3.3 years, respectively. The weighted-
average remaining term for all loans modified during these
periods was 2.0 years, 3.6 years and 4.5 years respectively.
Wholesale TDR loans that redefaulted within one year of the
modification were $1 million, $56 million and $96 million
during the years ended December 31, 2013, 2012 and
2011, respectively. A payment default is deemed to occur
when the borrower has not made a loan payment by its
scheduled due date after giving effect to any contractual
grace period.