JP Morgan Chase 2013 Annual Report Download - page 303

JPMorgan Chase & Co./2013 Annual Report 309
Note 22 – Preferred stock
At December 31, 2013 and 2012, JPMorgan Chase was
authorized to issue 200 million shares of preferred stock, in
one or more series, with a par value of $1 per share.
In the event of a liquidation or dissolution of the Firm,
JPMorgan Chase’s preferred stock then outstanding takes
precedence over the Firm’s common stock for the payment
of dividends and the distribution of assets.
The following is a summary of JPMorgan Chase’s preferred stock outstanding as of December 31, 2013 and 2012.
Contractual rate in
effect at
December 31, 2013
Shares at December 31,(a) Carrying value (in millions) at December 31, Earliest
redemption
date
Share value and
redemption
price per share(b) 2013 2012 2013 2012
Fixed-to-Floating Rate Non-
Cumulative Perpetual
Preferred Stock, Series I 7.900% 600,000 600,000 $ 6,000 $ 6,000 4/30/2018 $ 10,000
8.625% Non-Cumulative
Perpetual Preferred Stock,
Series J N/A —180,000 —1,800 9/1/2013 10,000
5.50% Non-Cumulative
Perpetual Preferred Stock,
Series O 5.500% 125,750 125,750 1,258 1,258 9/1/2017 10,000
5.45% Non-Cumulative
Perpetual Preferred Stock,
Series P 5.450% 90,000 —900 — 3/1/2018 10,000
Fixed-to-Floating Rate Non-
Cumulative Perpetual
Preferred Stock, Series Q 5.150% 150,000 —1,500 — 5/1/2023 10,000
Fixed-to-Floating Rate Non-
Cumulative Perpetual
Preferred Stock, Series R 6.000% 150,000 —1,500 — 8/1/2023 10,000
Total preferred stock 1,115,750 905,750 $ 11,158 $ 9,058
(a) Represented by depositary shares.
(b) The redemption price includes the amount shown in the table plus any accrued but unpaid dividends.
Dividends on the Fixed-to-Floating Rate Non-Cumulative
Perpetual Preferred Stock, Series I shares are payable
semiannually at a fixed annual dividend rate of 7.90%
through April 2018, and then become payable quarterly at
an annual dividend rate of three-month LIBOR plus 3.47%.
Dividends on the 5.50% Non-Cumulative Preferred Stock,
Series O and the 5.45% Non-Cumulative Preferred Stock,
Series P are payable quarterly. Dividends on the Fixed-to-
Floating Rate Non-Cumulative Perpetual Preferred Stock,
Series Q shares are payable semi-annually at a fixed annual
rate of 5.15% through April 2023, and then become
payable at a dividend rate of three-month LIBOR plus
3.25%. Dividends on the Fixed-to-Floating Rate Non-
Cumulative Perpetual Preferred Stock, Series R shares are
payable semi-annually at a fixed annual dividend rate of
6.00% through July 2023, and then become payable at a
dividend rate of three-month LIBOR plus 3.30%.
The Series O Non-Cumulative Preferred Stock was issued in
August 2012. Series P Non-Cumulative Preferred Stock was
issued in February 2013; Series Q Fixed-to-Floating Non-
Cumulative Preferred Stock was issued in April 2013; and
Series R Fixed-to-Floating Rate Non-Cumulative Preferred
Stock, Series R was issued in July 2013.
On September 1, 2013, the Firm redeemed all of the
outstanding shares of its 8.625% Non-Cumulative Preferred
Stock, Series J at their stated redemption value.
Redemption rights
Each series of the Firm’s preferred stock may be redeemed
on any dividend payment date on or after the earliest
redemption date for that series. The Series O, Series P,
Series Q and Series R preferred stock may also be redeemed
following a capital treatment event, as described in the
terms of that series. Any redemption of the Firm’s preferred
stock is subject to non-objection from the Federal Reserve.
Subsequent events
Issuance of preferred stock
On January 22, 2014, January 30, 2014, and February 6,
2014, the Firm issued $2.0 billion , $850 million, and $75
million, respectively, of noncumulative preferred stock.