JP Morgan Chase 2015 Annual Report Download - page 271

JPMorgan Chase & Co./2015 Annual Report 261
The following table presents additional information on the real estate class of loans within the Wholesale portfolio segment
for the periods indicated. The real estate class primarily consists of secured commercial loans mainly to borrowers for multi-
family and commercial lessor properties. Multifamily lending specifically finances apartment buildings. Commercial lessors
receive financing specifically for real estate leased to retail, office and industrial tenants. Commercial construction and
development loans represent financing for the construction of apartments, office and professional buildings and malls. Other
real estate loans include lodging, real estate investment trusts (“REITs”), single-family, homebuilders and other real estate.
December 31,
(in millions, except ratios)
Multifamily Commercial lessors
Commercial construction
and development Other Total real estate loans
2015 2014 2015 2014 2015 2014 2015 2014 2015 2014
Real estate retained loans $ 60,290 $ 51,049 $ 20,062 $ 17,438 $ 4,920 $ 4,264 $ 7,548 $ 6,362 $ 92,820 $ 79,113
Criticized 520 652 844 841 43 42 75 31 1,482 1,566
% of criticized to total real estate
retained loans 0.86% 1.28% 4.21% 4.82% 0.87% 0.98% 0.99% 0.49% 1.60% 1.98%
Criticized nonaccrual $85$ 126 $ 100 $ 110 $1$—$45$17$ 231 $ 253
% of criticized nonaccrual to total
real estate retained loans 0.14% 0.25% 0.50% 0.63% 0.02% —% 0.60% 0.27% 0.25% 0.32%
Wholesale impaired loans and loan modifications
Wholesale impaired loans consist of loans that have been placed on nonaccrual status and/or that have been modified in a TDR.
All impaired loans are evaluated for an asset-specific allowance as described in Note 15.
The table below sets forth information about the Firm’s wholesale impaired loans.
December 31,
(in millions)
Commercial
and industrial Real estate
Financial
institutions
Government
agencies Other
Total
retained loans
2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014
Impaired loans
With an allowance $ 522 $ 174 $ 148 $ 193 $10$15$—$—$46$89$ 726 $ 471
Without an allowance(a) 98 24 106 87 —3——94 52 298 166
Total impaired loans $ 620 $ 198 $ 254 $ 280 $10$18$—$—$ 140 $ 141 $ 1,024 (c) $ 637 (c)
Allowance for loan losses related
to impaired loans $ 220 $34$27$36$3$4$—$—$24$13$ 274 $87
Unpaid principal balance of
impaired loans(b) 669 266 363 345 13 22 ——164 202 1,209 835
(a) When the 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, 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 carrying value; net deferred loan fees or costs; and unamortized discount or premiums on
purchased loans.
(c) Based upon the domicile of the borrower, largely consists of loans in the U.S.
The following table presents the Firm’s average impaired
loans for the years ended 2015, 2014 and 2013.
Year ended December 31, (in millions) 2015 2014 2013
Commercial and industrial $ 453 $ 243 $ 412
Real estate 250 297 484
Financial institutions 13 20 17
Government agencies ———
Other 129 155 211
Total(a) $ 845 $ 715 $ 1,124
(a) The related interest income on accruing impaired loans and interest income
recognized on a cash basis were not material for the years ended December 31,
2015, 2014 and 2013.
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. TDRs were not material
as of December 31, 2015 and 2014.