JP Morgan Chase 2014 Annual Report Download - page 290

Notes to consolidated financial statements
288 JPMorgan Chase & Co./2014 Annual Report
Off–balance sheet lending-related financial instruments, guarantees and other commitments
Contractual amount Carrying value(i)
2014 2013 2014 2013
By remaining maturity at December 31,
(in millions)
Expires in
1 year or
less
Expires
after
1 year
through
3 years
Expires
after
3 years
through
5 years
Expires
after 5
years Total Total
Lending-related
Consumer, excluding credit card:
Home equity – senior lien $ 2,166 $ 4,389 $ 1,841 $ 3,411 $ 11,807 $ 13,158 $ — $ —
Home equity – junior lien 3,469 5,920 2,141 3,329 14,859 17,837 ——
Prime mortgage(a) 8,579 — — — 8,579 4,817 ——
Subprime mortgage — — — — — ———
Auto 9,302 921 192 47 10,462 8,309 21
Business banking 10,557 807 117 413 11,894 11,251 11 7
Student and other 97 8 — 447 552 685 ——
Total consumer, excluding credit card 34,170 12,045 4,291 7,647 58,153 56,057 13 8
Credit card 525,963 — — — 525,963 529,383 ——
Total consumer(b) 560,133 12,045 4,291 7,647 584,116 585,440 13 8
Wholesale:
Other unfunded commitments to extend credit(c)(d) 68,688 83,877 112,992 7,119 272,676 246,495 374 432
Standby letters of credit and other financial
guarantees(c)(d)(e) 22,584 29,753 34,982 2,555 89,874 92,723 788 943
Unused advised lines of credit 90,816 13,702 519 138 105,175 101,994 ——
Other letters of credit(c) 3,363 877 91 — 4,331 5,020 12
Total wholesale(f) 185,451 128,209 148,584 9,812 472,056 446,232 1,163 1,377
Total lending-related $ 745,584 $ 140,254 $ 152,875 $ 17,459 $ 1,056,172 $1,031,672 $ 1,176 $ 1,385
Other guarantees and commitments
Securities lending indemnification agreements and
guarantees(g) $ 171,059 $ — $ — $ — $ 171,059 $ 169,709 $ — $ —
Derivatives qualifying as guarantees 3,009 167 12,313 38,100 53,589 56,274 80 72
Unsettled reverse repurchase and securities
borrowing agreements 40,993 — — — 40,993 38,211 ——
Loan sale and securitization-related
indemnifications:
Mortgage repurchase liability NA NA NA NA NA NA 275 681
Loans sold with recourse NA NA NA NA 6,063 7,692 102 131
Other guarantees and commitments(h) 487 506 3,391 1,336 5,720 6,786 (121) (99)
(a) Includes certain commitments to purchase loans from correspondents.
(b) Predominantly all consumer lending-related commitments are in the U.S.
(c) At December 31, 2014 and 2013, reflects the contractual amount net of risk participations totaling $243 million and $476 million, respectively, for other
unfunded commitments to extend credit; $13.0 billion and $14.8 billion, respectively, for standby letters of credit and other financial guarantees; and
$469 million and $622 million, respectively, for other letters of credit. In regulatory filings with the Federal Reserve these commitments are shown gross
of risk participations.
(d) At December 31, 2014 and 2013, included credit enhancements and bond and commercial paper liquidity commitments to U.S. states and municipalities,
hospitals and other non-profit entities of $14.8 billion and $18.9 billion, respectively, within other unfunded commitments to extend credit; and $13.3
billion and $17.2 billion, respectively, within standby letters of credit and other financial guarantees. Other unfunded commitments to extend credit also
include liquidity facilities to nonconsolidated municipal bond VIEs; see Note 16.
(e) At December 31, 2014 and 2013, included unissued standby letters of credit commitments of $45.6 billion and $42.8 billion, respectively.
(f) At December 31, 2014 and 2013, the U.S. portion of the contractual amount of total wholesale lending-related commitments was 65% and 68%,
respectively.
(g) At December 31, 2014 and 2013, collateral held by the Firm in support of securities lending indemnification agreements was $177.1 billion and $176.4
billion, respectively. Securities lending collateral comprises primarily cash and securities issued by governments that are members of the Organisation for
Economic Co-operation and Development (“OECD”) and U.S. government agencies.
(h) At December 31, 2014 and 2013, included unfunded commitments of $147 million and $215 million, respectively, to third-party private equity funds;
and $961 million and $1.9 billion, respectively, to other equity investments. These commitments included $150 million and $184 million, respectively,
related to investments that are generally fair valued at net asset value as discussed in Note 3. In addition, at both December 31, 2014 and 2013, included
letters of credit hedged by derivative transactions and managed on a market risk basis of $4.5 billion.
(i) For lending-related products, the carrying value represents the allowance for lending-related commitments and the guarantee liability; for derivative-
related products, the carrying value represents the fair value.