JP Morgan Chase 2015 Annual Report Download - page 264

Notes to consolidated financial statements
254 JPMorgan Chase & Co./2015 Annual Report
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) 2015 2014
Impaired loans
With an allowance $ 527 $ 557
Without an allowance(a) 31 35
Total impaired loans(b)(c) $ 558 $ 592
Allowance for loan losses related to
impaired loans $ 118 $ 117
Unpaid principal balance of impaired
loans(d) 668 719
Impaired loans on nonaccrual status 449 456
(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) Predominantly all other consumer impaired loans are in the U.S.
(c) Other consumer average impaired loans were $566 million, $599 million
and $648 million for the years ended December 31, 2015, 2014 and
2013, respectively. The related interest income on impaired loans,
including those on a cash basis, was not material for the years ended
December 31, 2015, 2014 and 2013.
(d) Represents the contractual amount of principal owed at December 31,
2015 and 2014. 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.
Loan modifications
Certain other consumer loan modifications are considered
to be TDRs as they provide various concessions to
borrowers who are experiencing financial difficulty. All of
these TDRs are reported as impaired loans in the table
above.
The following table provides information about the Firm’s
other consumer loans modified in TDRs. New TDRs were not
material for the years ended December 31, 2015 and
2014.
December 31, (in millions) 2015 2014
Loans modified in TDRs(a)(b) $ 384 $ 442
TDRs on nonaccrual status 275 306
(a) The impact of these modifications was not material to the Firm for the
years ended December 31, 2015 and 2014.
(b) Additional commitments to lend to borrowers whose loans have been
modified in TDRs as of December 31, 2015 and 2014 were immaterial.