Loans

3 Months Ended

Mar. 31, 2012

Loans [Abstract]

Loans

Loans

Loan accounting framework

The accounting for a loan depends on management’s strategy for the loan, and on whether the loan was credit-impaired at the date of acquisition. The Firm accounts for loans based on the following categories:

• Originated or purchased loans held-for-investment (i.e., “retained”), other than purchased credit-impaired (“PCI”) loans

• Loans held-for-sale

• Loans at fair value

• PCI loans held-for-investment

For a detailed discussion of loans, including accounting policies, see Note 14 on pages 231–252 of JPMorgan Chase’s 2011 Annual Report. See Note 4 on pages 101–102 of this Form 10-Q for further information on the Firm’s elections of fair value accounting under the fair value option. See Note 3 on pages 91–100 of this Form 10-Q for further information on loans carried at fair value and classified as trading assets.

Loan portfolio

The Firm’s loan portfolio is divided into three portfolio segments, which are the same segments used by the Firm to determine the allowance for loan losses: Wholesale; Consumer, excluding credit card; and Credit card. Within each portfolio segment, the Firm monitors and assesses the credit risk in the following classes of loans, based on the risk characteristics of each loan class:

Wholesale(a)	Consumer, excluding credit card(b)	Credit card(d)
• Commercial and industrial • Real estate • Financial institutions • Government agencies • Other	Residential real estate – excluding PCI • Home equity – senior lien • Home equity – junior lien • Prime mortgage, including      option ARMs • Subprime mortgage Other consumer loans • Auto(c) • Business banking(c) • Student and other Residential real estate – PCI • Home equity • Prime mortgage • Subprime mortgage • Option ARMs	• Credit card loans

(a) Includes loans reported in IB, Commercial Banking (“CB”), Treasury & Securities Services (“TSS”) and Asset Management (“AM”) business segments and in Corporate/Private Equity.

(b) Includes loans reported in RFS, auto and student loans reported in Card Services & Auto (“Card”), and residential real estate loans reported in the AM business segment and in Corporate/Private Equity.

(c) Includes auto and business banking risk-rated loans that apply the wholesale methodology for determining the allowance for loan losses; these loans are managed by Card and RFS, respectively, and therefore, for consistency in presentation, are included with the other consumer loan classes.

(d) Prior to January 1, 2012, the Credit card portfolio segment was reported as two classes: Chase, excluding Washington Mutual, and Washington Mutual. The Washington Mutual class is a run-off portfolio that has been declining since the Firm acquired the portfolio in 2008. Effective January 1, 2012, management determined that the Washington Mutual portfolio class is no longer significant, and therefore, the Credit card portfolio segment is now being reported as one class of loans.

The following table summarizes the Firm’s loan balances by portfolio segment.

	March 31, 2012									December 31, 2011
(in millions)	Wholesale		Consumer, excluding credit card		Credit card(a)		Total			Wholesale		Consumer, excluding credit card		Credit card(a)		Total
Retained	$	283,653	$	304,770	$	124,475	$	712,898	(b)	$	278,395	$	308,427	$	132,175	$	718,997	(b)
Held-for-sale	4,925		—		856		5,781			2,524		—		102		2,626
At fair value	2,288		—		—		2,288			2,097		—		—		2,097
Total	$	290,866	$	304,770	$	125,331	$	720,967		$	283,016	$	308,427	$	132,277	$	723,720

(a) Includes billed finance charges and fees net of an allowance for uncollectible amounts.

(b) Loans (other than PCI loans and those for which the fair value option has been selected) are presented net of unearned income, unamortized discounts and premiums, and net deferred loan costs of $2.7 billion at both March 31, 2012, and December 31, 2011.

The following table provides information about the carrying value of retained loans purchased, retained loans sold and retained loans reclassified to held-for-sale during the periods indicated. These tables exclude loans recorded at fair value.On an ongoing basis, the Firm manages its exposure to credit risk. Selling loans is one way that the Firm reduces its credit exposures.

	2012								2011
Three months ended March 31, (in millions)	Wholesale		Consumer, excluding credit card		Credit card		Total		Wholesale		Consumer, excluding credit card		Credit card		Total
Purchases	$	321	$	1,759	$	—	$	2,080	$	123	$	1,992	$	—	$	2,115
Sales	863		357		—		1,220		877		257		—		1,134
Retained loans reclassified to held-for-sale	62		—		923		985		177		—		1,912		2,089

The following table provides information about gains/(losses) on loan sales by portfolio segment.

Three months ended March 31, (in millions)	2012			2011
Net gains/(losses) on sales of loans (including lower of cost or fair value adjustments)(a)
Wholesale	$	32		$	61
Consumer, excluding credit card	32			25
Credit card	(18		)	(20		)
Total net gains/(losses) on sales of loans (including lower of cost or fair value adjustments	$	46		$	66

(a) Excludes sales related to loans accounted for at fair value.

Wholesale loan portfolio

Wholesale loans include loans made to a variety of customers from large corporate and institutional clients to certain high-net worth individuals. The primary credit quality indicator for wholesale loans is the risk rating assigned each loan. For further information on these risk ratings, see Notes 14 and 15 on pages 231–255 of JPMorgan Chase’s 2011 Annual Report.

The table below provides information by class of receivable for the retained loans in the Wholesale portfolio segment.

(in millions, except ratios)	Commercial and industrial						Real estate
	Mar 31, 2012			Dec 31, 2011			Mar 31, 2012			Dec 31, 2011
Loans by risk ratings
Investment-grade	$	52,476		$	52,428		$	35,299		$	33,920
Noninvestment-grade:
Noncriticized	41,499			38,644			17,040			15,972
Criticized performing	2,333			2,254			3,599			3,906
Criticized nonaccrual	781			889			809			886
Total noninvestment-grade	44,613			41,787			21,448			20,764
Total retained loans	$	97,089		$	94,215		$	56,747		$	54,684
% of total criticized to total retained loans	3.21		%	3.34		%	7.77		%	8.76		%
% of nonaccrual loans to total retained loans	0.80			0.94			1.43			1.62
Loans by geographic distribution(a)
Total non-U.S.	$	31,122		$	30,813		$	2,099		$	1,497
Total U.S.	65,967			63,402			54,648			53,187
Total retained loans	$	97,089		$	94,215		$	56,747		$	54,684
Loan delinquency(b)
Current and less than 30 days past due and still accruing	$	95,824		$	93,060		$	55,572		$	53,387
30–89 days past due and still accruing	460			266			321			327
90 or more days past due and still accruing(c)	24			—			45			84
Criticized nonaccrual	781			889			809			886
Total retained loans	$	97,089		$	94,215		$	56,747		$	54,684

(a) The U.S. and non-U.S. distribution is determined based predominantly on the domicile of the borrower.

(b) The credit quality of wholesale loans is assessed primarily through ongoing review and monitoring of an obligor’s ability to meet contractual obligations rather than relying on the past due status, which is generally a lagging indicator of credit quality. For a discussion of more significant risk factors, see Note 14 on page 235 of JPMorgan Chase’s 2011 Annual Report.

(c) Represents loans that are considered well-collateralized and therefore still accruing interest.

(d) Other primarily includes loans to SPEs and loans to private banking clients. See Note 1 on pages 182–183 of JPMorgan Chase’s 2011 Annual Report for additional information on SPEs.

The following table presents additional information on the real estate class of loans within the Wholesale portfolio segment for the periods indicated. For further information on real estate loans, see Note 14 on pages 231–252 of JPMorgan Chase’s 2011 Annual Report.

(in millions, except ratios)	Multi-family						Commercial lessors
	Mar 31, 2012			Dec 31, 2011			Mar 31, 2012			Dec 31, 2011
Real estate retained loans	$	33,516		$	32,524		$	15,311		$	14,444
Criticized exposure	2,221			2,451			1,750			1,662
% of criticized exposure to total real estate retained loans	6.63		%	7.54		%	11.43		%	11.51		%
Criticized nonaccrual	$	396		$	412		$	302		$	284
% of criticized nonaccrual to total real estate retained loans	1.18		%	1.27		%	1.97		%	1.97		%

(table continued from previous page)

Financial  institutions						Government agencies						Other(d)						Total retained loans
Mar 31, 2012			Dec 31, 2011			Mar 31, 2012			Dec 31, 2011			Mar 31, 2012			Dec 31, 2011			Mar 31, 2012			Dec 31, 2011
$	26,720		$	28,804		$	7,420		$	7,421		$	76,789		$	74,497		$	198,704		$	197,070
8,647			9,132			375			378			8,572			7,583			76,133			71,709
239			246			5			4			699			808			6,875			7,218
23			37			14			16			314			570			1,941			2,398
8,909			9,415			394			398			9,585			8,961			84,949			81,325
$	35,629		$	38,219		$	7,814		$	7,819		$	86,374		$	83,458		$	283,653		$	278,395
0.74		%	0.74		%	0.24		%	0.26		%	1.17		%	1.65		%	3.11		%	3.45		%
0.06			0.10			0.18			0.20			0.36			0.68			0.68			0.86
$	26,999		$	29,996		$	648		$	583		$	36,695		$	32,275		$	97,563		$	95,164
8,630			8,223			7,166			7,236			49,679			51,183			186,090			183,231
$	35,629		$	38,219		$	7,814		$	7,819		$	86,374		$	83,458		$	283,653		$	278,395
$	35,576		$	38,129		$	7,750		$	7,780		$	85,164		$	81,802		$	279,886		$	274,158
30			51			50			23			873			1,072			1,734			1,739
—			2			—			—			23			14			92			100
23			37			14			16			314			570			1,941			2,398
$	35,629		$	38,219		$	7,814		$	7,819		$	86,374		$	83,458		$	283,653		$	278,395

(table continued from previous page)

Commercial construction and development						Other						Total real estate loans
Mar 31, 2012			Dec 31, 2011			Mar 31, 2012			Dec 31, 2011			Mar 31, 2012			Dec 31, 2011
$	3,187		$	3,148		$	4,733		$	4,568		$	56,747		$	54,684
260			297			177			382			4,408			4,792
8.16		%	9.43		%	3.74		%	8.36		%	7.77		%	8.76		%
$	34		$	69		$	77		$	121		$	809		$	886
1.07		%	2.19		%	1.63		%	2.65		%	1.43		%	1.62		%

Wholesale impaired loans and loan modifications

Wholesale impaired loans include loans that have been placed on nonaccrual status and/or that have been modified in a troubled debt restructuring (“TDR”). All impaired loans are evaluated for an asset-specific allowance as described in Note 14 on page 136 of this Form 10-Q.

The table below provides information about the Firm’s wholesale impaired loans.

(in millions)	Commercial and industrial				Real estate				Financial institutions				Government  agencies				Other				Total retained loans
	Mar 31, 2012		Dec 31, 2011		Mar 31, 2012		Dec 31, 2011		Mar 31, 2012		Dec 31, 2011		Mar 31, 2012		Dec 31, 2011		Mar 31, 2012		Dec 31, 2011		Mar 31, 2012		Dec 31, 2011
Impaired loans
With an allowance	$	642	$	828	$	594	$	621	$	10	$	21	$	14	$	16	$	178	$	473	$	1,438	$	1,959
Without an allowance(a)	244		177		225		292		13		18		—		—		138		103		620		590
Totalimpaired loans	$	886	$	1,005	$	819	$	913	$	23	$	39	$	14	$	16	$	316	$	576	$	2,058	$	2,549
Allowance for loan losses related to impaired loans	$	239	$	276	$	97	$	148	$	3	$	5	$	8	$	10	$	101	$	77	$	448	$	516
Unpaid principal balance of impaired loans(b)	1,537		1,705		997		1,124		47		63		15		17		480		1,008		3,076		3,917

(a) When the discounted cash flows, collateral value or market price equals or exceeds the recorded investment in the loan, then 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 March 31, 2012, and December 31, 2011. 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.

The following table presents the Firm’s average impaired loans for the periods indicated.

Three months ended March 31, (in millions)	2012		2011
Commercial and industrial	$	918	$	1,553
Real estate	875		2,730
Financial institutions	28		94
Government agencies	16		22
Other	395		637
Total(a)	$	2,232	$	5,036

(a) The related interest income on accruing impaired loans and interest income recognized on a cash basis were not material for three months ended March 31, 2012 and 2011.

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. For further information, see Note 14 on pages 233–234 and 238–239 of JPMorgan Chase’s 2011 Annual Report. The following table provides information about the Firm’s wholesale loans that have been modified in TDRs as of the dates presented.

(in millions)	Commercial and industrial				Real estate				Financial institutions				Government  agencies				Other				Total retained loans
	Mar 31, 2012		Dec 31, 2011		Mar 31, 2012		Dec 31, 2011		Mar 31, 2012		Dec 31, 2011		Mar 31, 2012		Dec 31, 2011		Mar 31, 2012		Dec 31, 2011		Mar 31, 2012		Dec 31, 2011
Loans modified in troubled debt restructurings	$	419	$	531	$	148	$	176	$	—	$	2	$	13	$	16	$	84	$	25	$	664	$	750
TDRs on nonaccrual status	314		415		116		128		—		—		13		16		82		19		525		578
Additional commitments to lend to borrowers whose loans have been modified in TDRs	15		147		—		—		—		—		—		—		—		—		15		147

TDR activity rollforward

The following table reconciles the beginning and ending balances of wholesale loans modified in TDRs for the period presented and provides information regarding the nature and extent of modifications during the period.

Three months ended March 31, (in millions)	Commercial and industrial						Real estate						Other(b)						Total
	2012			2011			2012			2011			2012			2011			2012			2011
Beginning balance of TDRs	$	531		$	212		$	176		$	907		$	43		$	24		$	750		$	1,143
New TDRs	4			$	9		3			40			63			—			70			49
Increases to existing TDRs	1			2			—			—			—			—			1			2
Charge-offs post-modification	(9		)	(6		)	(2		)	(142		)	—			—			(11		)	(148		)
Sales and other(a)	(108		)	(61		)	(29		)	(535		)	(9		)	(1		)	(146		)	(597		)
Ending balance of TDRs	$	419		$	156		$	148		$	270		$	97		$	23		$	664		$	449

(a) Sales and other are largely sales and paydowns, but also includes $23 million and $78 million of performing loans restructured at market rates that were removed from the reported TDR balance during the three months ended March 31, 2012 and 2011, respectively.

(b) Includes loans to Financial institutions, Government agencies and Other.

Financial effects of modifications and redefaults

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 three months ended March 31, 2012 and 2011, the average term extension granted on loans with term or payment extensions was 0.9 years and 2.3 years, respectively. The weighted-average remaining term for all loans modified during these periods was 4.1 years and 2.6 years, respectively. During the three months ended March 31, 2012 and 2011, wholesale TDR loans that redefaulted within one year of the modification were $47 million and $42 million, 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.

Consumer, excluding credit card loan portfolio

Consumer loans, excluding credit card loans, consist primarily of residential mortgages, home equity loans and lines of credit, auto loans, business banking loans, and student and other loans, with a primary focus on serving the prime consumer credit market. The portfolio also includes home equity loans secured by junior liens and mortgage loans with interest-only payment options to predominantly prime borrowers, as well as certain payment-option loans originated by Washington Mutual that may result in negative amortization.

The table below provides information about consumer retained loans by class, excluding the Credit card loan portfolio segment.

(in millions)	Mar 31, 2012		Dec 31, 2011
Residential real estate – excluding PCI
Home equity:
Senior lien	$	21,202	$	21,765
Junior lien	54,005		56,035
Mortgages:
Prime, including option ARMs	76,292		76,196
Subprime	9,289		9,664
Other consumer loans
Auto	48,245		47,426
Business banking	17,822		17,652
Student and other	13,854		14,143
Residential real estate – PCI
Home equity	22,305		22,697
Prime mortgage	14,781		15,180
Subprime mortgage	4,870		4,976
Option ARMs	22,105		22,693
Total retained loans	$	304,770	$	308,427

Delinquency rates are a primary credit quality indicator for consumer loans, excluding credit card. Other indicators that are taken into consideration for consumer loans, excluding credit card, include:

• For residential real estate loans, including both non-PCI and PCI portfolios: The current estimated LTV ratio, or the combined LTV ratio in the case of loans with a junior lien, the geographic distribution of the loan collateral, and the borrowers’ current or “refreshed” FICO score.

• For auto, scored business banking and student loans: Geographic distribution of the loans.

• For risk-rated business banking and auto loans: Risk rating of the loan, geographic considerations relevant to the loan and whether the loan is considered to be criticized and/or nonaccrual.

For further information on consumer credit quality indicators, see Note 14 on pages 231–252 of JPMorgan Chase’s 2011 Annual Report.

Residential real estate – excluding PCI loans

The following tables provide information by class for residential real estate – excluding PCI retained loans in the Consumer, excluding credit card, portfolio segment.

The following factors should be considered in analyzing certain credit statistics applicable to the Firm’s residential real estate – excluding PCI loans portfolio: (i) junior lien home equity loans may be fully charged off when the loan becomes 180 days past due, the borrower is either unable or unwilling to repay the loan, and the value of the collateral does not support the repayment of the loan, resulting in relatively high charge-off rates for this product class; and (ii) the lengthening of loss-mitigation timelines may result in higher delinquency rates for loans carried at estimated collateral value that remain on the Firm’s Consolidated Balance Sheets.

Residential real estate – excluding PCI loans
	Home equity
(in millions, except ratios)	Senior lien						Junior lien
	Mar 31, 2012			Dec 31, 2011			Mar 31, 2012				Dec 31, 2011
Loan delinquency(a)
Current	$	20,472		$	20,992		$	52,697			$	54,533
30–149 days past due	352			405			1,077				1,272
150 or more days past due	378			368			231				230
Total retained loans	$	21,202		$	21,765		$	54,005			$	56,035
% of 30+ days past due to total retained loans	3.44		%	3.55		%	2.42		%		2.68		%
90 or more days past due and still accruing	$	—		$	—		$	—			$	—
90 or more days past due and government guaranteed(b)	—			—			—				—
Nonaccrual loans	489			495			2,277			(g)	792
Current estimated LTV ratios(c)(d)(e)
Greater than 125% and refreshed FICO scores:
Equal to or greater than 660	$	317		$	341		$	6,309			$	6,463
Less than 660	152			160			2,000				2,037
101% to 125% and refreshed FICO scores:
Equal to or greater than 660	652			663			8,359				8,775
Less than 660	247			241			2,428				2,510
80% to 100% and refreshed FICO scores:
Equal to or greater than 660	1,771			1,850			10,878				11,433
Less than 660	593			601			2,537				2,616
Less than 80% and refreshed FICO scores:
Equal to or greater than 660	14,908			15,350			18,585				19,326
Less than 660	2,562			2,559			2,909				2,875
U.S. government-guaranteed	—			—			—				—
Total retained loans	$	21,202		$	21,765		$	54,005			$	56,035
Geographic region
California	$	3,002		$	3,066		$	12,402			$	12,851
New York	2,972			3,023			10,635				10,979
Florida	967			992			2,893				3,006
Illinois	1,460			1,495			3,649				3,785
Texas	2,901			3,027			1,764				1,859
New Jersey	677			687			3,132				3,238
Arizona	1,303			1,339			2,452				2,552
Washington	702			714			1,828				1,895
Ohio	1,694			1,747			1,270				1,328
Michigan	1,016			1,044			1,349				1,400
All other(f)	4,508			4,631			12,631				13,142
Total retained loans	$	21,202		$	21,765		$	54,005			$	56,035

(a) Individual delinquency classifications included mortgage loans insured by U.S. government agencies as follows: current includes $3.1 billion and $3.0 billion; 30–149 days past due includes $2.0 billion and $2.3 billion; and 150 or more days past due includes $10.7 billion and $10.3 billion at March 31, 2012, and December 31, 2011, respectively.

(b) These balances, which are 90 days or more past due but insured by U.S. government agencies, are excluded from nonaccrual loans. In predominately all cases, 100% of the principal balance of the loans is insured and interest is guaranteed at a specified reimbursement rate subject to meeting agreed-upon servicing guidelines. These amounts are excluded from nonaccrual loans because reimbursement of insured and guaranteed amounts is proceeding normally. At March 31, 2012, and December 31, 2011, these balances included $7.3 billion and $7.0 billion, respectively, of loans that are no longer accruing interest because interest has been curtailed by the U.S. government agencies although, in predominantly all cases, 100% of the principal is still insured. For the remaining balance, interest is being accrued at the guaranteed reimbursement rate.

(c) Represents the aggregate unpaid principal balance of loans divided by the estimated current property value. Current property values are estimated, at a minimum, quarterly, based on home valuation models using nationally recognized home price index valuation estimates incorporating actual data to the extent available and forecasted data where actual data is not available. These property values do not represent actual appraised loan level collateral values; as such, the resulting ratios are necessarily imprecise and should be viewed as estimates.

(d) Junior lien represents combined LTV, which considers all available lien positions related to the property. All other products are presented without consideration of subordinate liens on the property.

(e) Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm at least on a quarterly basis.

(f) At March 31, 2012, and December 31, 2011, included mortgage loans insured by U.S. government agencies of $15.8 billion and $15.6 billion, respectively.

(g) Includes $1.6 billion of performing junior liens at March 31, 2012, that are subordinate to senior liens that are 90 days or more past due; such junior liens are now being reported as nonaccrual loans based upon regulatory guidance issued in the first quarter of 2012. Of the total, $1.4 billion were current at March 31, 2012. Prior periods have not been restated.

(h) At March 31, 2012, and December 31, 2011, excluded mortgage loans insured by U.S. government agencies of $12.7 billion and $12.6 billion, respectively. These amounts were excluded as reimbursement of insured amounts is proceeding normally.

(table continued from previous page)

Mortgages
Prime, including option ARMs								Subprime						Total residential real estate – excluding PCI
Mar 31, 2012				Dec 31, 2011				Mar 31, 2012			Dec 31, 2011			Mar 31, 2012				Dec 31, 2011
$	60,051			$	59,855			$	7,425		$	7,585		$	140,645			$	142,965
2,980				3,475				740			820			5,149				5,972
13,261				12,866				1,124			1,259			14,994				14,723
$	76,292			$	76,196			$	9,289		$	9,664		$	160,788			$	163,660
4.59		%	(h)	4.96		%	(h)	20.07		%	21.51		%	4.61		%	(h)	4.97		%	(h)
$	—			$	—			$	—		$	—		$	—			$	—
11,841				11,516				—			—			11,841				11,516
3,258				3,462				1,569			1,781			7,593				6,530
$	3,137			$	3,168			$	361		$	367		$	10,124			$	10,339
1,323				1,416				1,007			1,061			4,482				4,674
4,601				4,626				502			506			14,114				14,570
1,672				1,636				1,219			1,284			5,566				5,671
8,730				9,343				801			817			22,180				23,443
2,331				2,349				1,446			1,556			6,907				7,122
34,281				33,849				1,854			1,906			69,628				70,431
4,375				4,225				2,099			2,167			11,945				11,826
15,842				15,584				—			—			15,842				15,584
$	76,292			$	76,196			$	9,289		$	9,664		$	160,788			$	163,660
$	17,887			$	18,029			$	1,409		$	1,463		$	34,700			$	35,409
10,457				10,200				1,180			1,217			25,244				25,419
4,448				4,565				1,142			1,206			9,450				9,769
3,889				3,922				372			391			9,370				9,593
2,862				2,851				290			300			7,817				8,037
2,045				2,042				441			461			6,295				6,428
1,164				1,194				190			199			5,109				5,284
1,852				1,878				203			209			4,585				4,696
432				441				225			234			3,621				3,750
890				909				236			246			3,491				3,599
30,366				30,165				3,601			3,738			51,106				51,676
$	76,292			$	76,196			$	9,289		$	9,664		$	160,788			$	163,660

The following table represents the Firm’s delinquency statistics for junior lien home equity loans and lines as of March 31, 2012, and December 31, 2011.

	Delinquencies
March 31, 2012 (in millions, except ratios)	30–89 days past due		90–149 days past due		150+ days past due		Total loans		Total 30+ day delinquency rate
HELOCs:(a)
Within the revolving period(b)	$	546	$	239	$	175	$	45,990	2.09	%
Within the required amortization period	39		15		18		1,764		4.08
HELOANs	156		82		38		6,251		4.42
Total	$	741	$	336	$	231	$	54,005	2.42	%

	Delinquencies
December 31, 2011 (in millions, except ratios)	30–89 days past due		90–149 days past due		150+ days past due		Total loans		Total 30+ day delinquency rate
HELOCs:(a)
Within the revolving period(b)	$	606	$	314	$	173	$	47,760	2.29	%
Within the required amortization period	45		19		15		1,636		4.83
HELOANs	188		100		42		6,639		4.97
Total	$	839	$	433	$	230	$	56,035	2.68	%

(a) In general, HELOCs are revolving loans for a 10-year period, after which time the HELOC converts to a loan with a 20-year amortization period.

(b) The Firm manages the risk of HELOCs during their revolving period by closing or reducing the undrawn line to the extent permitted by law when borrowers are experiencing financial difficulty or when the collateral does not support the loan amount.

Home equity lines of credit (“HELOCs”) within the required amortization period and home equity loans (“HELOANs”) have higher delinquency rates than do HELOCs within the revolving period. That is primarily because the fully-amortizing payment required for those products is higher than the minimum payment options available for HELOCs within the revolving period. The higher delinquency rates associated with amortizing HELOCs and HELOANs are factored into the loss estimates produced by the Firm’s delinquency roll-rate methodology, which estimates defaults based on the current delinquency status of a portfolio.

Impaired loans

The table below sets forth information about the Firm’s residential real estate impaired loans, excluding PCI loans. These loans are considered to be impaired as they have been modified in a TDR. All impaired loans are evaluated for an asset-specific allowance as described in Note 14 on page 134 of this Form 10-Q.

	Home equity								Mortgages								Total residential  real estate – excluding PCI
(in millions)	Senior lien				Junior lien				Prime, including option ARMs				Subprime
	Mar 31, 2012		Dec 31, 2011		Mar 31, 2012		Dec 31, 2011		Mar 31, 2012		Dec 31, 2011		Mar 31, 2012		Dec 31, 2011		Mar 31, 2012		Dec 31, 2011
Impaired loans
With an allowance	$	322	$	319	$	627	$	622	$	4,487	$	4,332	$	3,062	$	3,047	$	8,498	$	8,320
Without an allowance(a)	16		16		79		35		531		545		164		172		790		768
Total impaired loans(b)	$	338	$	335	$	706	$	657	$	5,018	$	4,877	$	3,226	$	3,219	$	9,288	$	9,088
Allowance for loan losses related to impaired loans	$	110	$	80	$	207	$	141	$	4	$	4	$	209	$	366	$	530	$	591
Unpaid principal balance of impaired loans(c)	444		433		1,085		994		6,446		6,190		4,872		4,827		12,847		12,444
Impaired loans on nonaccrual status	68		77		209		159		888		922		728		832		1,893		1,990

(a) When discounted cash flows or collateral value equals or exceeds the recorded investment in the loan, the loan does not require an allowance.     This typically occurs when an impaired loan has been partially charged off.

(b) At March 31, 2012, and December 31, 2011, $4.7 billion and $4.3 billion, respectively, of loans modified subsequent to repurchase from Government National Mortgage Association (“Ginnie Mae”) in accordance with the standards of the appropriate government agency (i.e., Federal Housing Administration (“FHA”), U.S. Department of Veterans Affairs (“VA”), Rural Housing Services (“RHS”)) were excluded from loans accounted for as TDRs. When such loans perform subsequent to modification in accordance with Ginnie Mae guidelines, they are generally sold back into Ginnie Mae loan pools. Modified loans that do not re-perform become subject to foreclosure.

(c) Represents the contractual amount of principal owed at March 31, 2012, and December 31, 2011. The unpaid principal balance differs from the impaired loan balances due to various factors, including charge-offs, net deferred loan fees or costs; and unamortized discounts or premiums on purchased loans.

The following table presents average impaired loans and the related interest income reported by the Firm.

Three months ended March 31,	Average impaired loans				Interest income on impaired loans(a)				Interest income on impaired loans on a cash basis(a)
(in millions)	2012		2011		2012		2011		2012		2011
Home equity
Senior lien	$	336	$	242	$	3	$	3	$	1	$	—
Junior lien	686		361		6		4		1		—
Mortgages
Prime, including option ARMs	4,949		2,616		49		26		5		3
Subprime	3,216		2,868		42		34		4		3
Total residential real estate – excluding PCI	$	9,187	$	6,087	$	100	$	67	$	11	$	6

(a) Generally, interest income on loans modified in TDRs is recognized on a cash basis until such time as the borrower has made a minimum of six payments under the new terms. As of March 31, 2012 and 2011, $837 million and $640 million, respectively, were loans on which the borrowers had not yet made six payments under their modified terms.

Loan modifications

In accordance with the terms of the global settlement, which was finalized in the first quarter of 2012, the Firm expects to provide approximately $500 million of refinancing relief to certain “underwater” borrowers under the Refi Program and to provide approximately $3.7 billion of additional relief for certain borrowers under the Consumer Relief Program, including reductions of principal on first and second liens.

The purpose of the Refi Program is to allow borrowers who are current on their mortgage loans to refinance their existing loans; such borrowers are otherwise unable to do so because they have no equity or, in many cases, negative equity in their homes. The terms of the refinanced loans may provide for a reduced interest rate either for the remaining life of the loan or for five years. Most of the refinancings are not expected to result in term extensions and so, in that regard, are more similar to loan modifications than to traditional refinancings. The Firm intends to introduce the Refi Program in the second quarter of 2012.

As of March 31, 2012, the Firm had begun to modify first and second lien loans under the Consumer Relief Program. These modifications are expected to be performed under either the U.S. Treasury's Making Home Affordable (“MHA”) programs (e.g., HAMP, 2MP) or one of the Firm’s proprietary modification programs. For further information on this global settlement, see Business Changes and Developments in Note 2 on pages of 90–91 and Mortgage Foreclosure Investigations and Litigation in Note 23 on pages 154–163 of this Form 10-Q.

Modifications of residential real estate loans, excluding PCI loans, are generally accounted for and reported as TDRs. There were no additional commitments to lend to borrowers whose residential real estate loans, excluding PCI loans, have been modified in TDRs. For further information, see Note 14 on pages 233–234 and 243–245 of JPMorgan Chase’s 2011 Annual Report.

TDR activity rollforward

The following tables reconcile the beginning and ending balances of residential real estate loans, excluding PCI loans, modified in TDRs for the periods presented.

Three months ended March 31, (in millions)	Home equity												Mortgages												Total residential real estate – (excluding PCI)
	Senior lien						Junior lien						Prime, including option ARMs						Subprime
	2012			2011			2012			2011			2012			2011			2012			2011			2012			2011
Beginning balance of TDRs	$	335		$	226		$	657		$	283		$	4,877		$	2,084		$	3,219		$	2,751		$	9,088		$	5,344
New TDRs(a)	12			37			96			168			281			1,260			122			342			511			1,807
Charge-offs post-modification(b)	(5		)	(3		)	(17		)	(15		)	(34		)	(23		)	(51		)	(65		)	(107		)	(106		)
Foreclosures and other liquidations (e.g., short sales)	—			—			(3		)	(3		)	(29		)	(16		)	(37		)	(18		)	(69		)	(37		)
Principal payments and other	(4		)	(3		)	(27		)	(8		)	(77		)	(36		)	(27		)	(21		)	(135		)	(68		)
Ending balance of TDRs	$	338		$	257		$	706		$	425		$	5,018		$	3,269		$	3,226		$	2,989		$	9,288		$	6,940
Permanent modifications	$	296		$	234		$	695		$	409		$	4,768		$	2,990		$	3,067		$	2,754		$	8,826		$	6,387
Trial modifications	$	42		$	23		$	11		$	16		$	250		$	279		$	159		$	235		$	462		$	553

(a) Any permanent modification of a loan previously reported as a new TDR as the result of a trial modification is not also reported as a new TDR.

(b) Includes charge-offs on unsuccessful trial modifications.

Nature and extent of modifications

MHA, as well as the Firm’s proprietary modification programs, generally provide various concessions to financially troubled borrowers including, but not limited to, interest rate reductions, term or payment extensions and deferral of principal and/or interest payments that would otherwise have been required under the terms of the original agreement.

The following table provides information about how residential real estate loans, excluding PCI loans, were modified during the period presented.

Three months ended March 31,	Home equity								Mortgages								Total residential real estate - (excluding PCI)
	Senior lien				Junior lien				Prime, including option ARMs				Subprime
	2012		2011		2012		2011		2012		2011		2012		2011		2012		2011
Number of loans approved for a trial modification, but not permanently modified	92		101		209		76		485		129		552		287		1,338		593
Number of loans permanently modified	230		181		1,816		2,699		950		3,981		1,190		753		4,186		7,614
Concession granted:(a)
Interest rate reduction	63	%	74	%	95	%	97	%	79	%	20	%	82	%	84	%	85	%	56	%
Term or payment extension	96		80		69		83		82		59		68		69		73		69
Principal and/or interest deferred	10		6		20		21		36		7		13		16		22		13
Principal forgiveness	22		5		7		21		23		—		31		5		19		8
Other(b)	8		41		7		8		19		86		3		31		9		51

(a) As a percentage of the number of loans modified. The sum of the percentages exceeds 100% because predominantly all of the modifications include more than one type of concession.

(b) Represents variable interest rate to fixed interest rate modifications.

Financial effects of modifications and redefaults

The following table provides information about the financial effects of the various concessions granted in modifications of residential real estate loans, excluding PCI, and also about redefaults of certain loans modified in TDRs for the period presented.

Three months ended March 31, (in millions, except weighted-average data and number of loans)	Home equity												Mortgages												Total residential real estate – (excluding PCI)
	Senior lien						Junior lien						Prime, including option ARMs						Subprime
	2012			2011			2012			2011			2012			2011			2012			2011			2012			2011
Weighted-average interest rate of loans with interest rate reductions – before TDR	6.93		%	7.33		%	5.63		%	5.38		%	5.90		%	6.12		%	8.17		%	8.25		%	6.55		%	6.50		%
Weighted-average interest rate of loans with interest rate reductions – after TDR	3.39			3.37			1.67			1.35			2.59			2.88			3.72			3.73			2.79			2.75
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR	20			17			21			21			26			25			24			24			25			24
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR	29			29			33			35			36			31			32			35			34			32
Charge-offs recognized upon permanent modification	$	1		$	—		$	6		$	35		$	14		$	18		$	5		$	3		$	26		$	56
Principal deferred	1			—			8			9			52			27			13			11			74			47
Principal forgiven	3			—			4			19			35			1			43			3			85			23
Number of loans that redefaulted within one year of permanent modification(a)	68			40			411			182			248			316			374			685			1,101			1,223
Balance of loans that redefaulted within one year of permanent modification(a)	$	5		$	4		$	16		$	6		$	67		$	89		$	41		$	107		$	129		$	206

(a) Represents loans permanently modified in TDRs that experienced a payment default in the period presented, and for which the payment default occurred within one year of the modification. The dollar amounts presented represent the balance of such loans at the end of the reporting period in which they defaulted. For residential real estate loans modified in TDRs, payment default is deemed to occur when the loan becomes two contractual payments past due. In the event that a modified loan redefaults, it is probable that the loan will ultimately be liquidated through foreclosure or another similar type of liquidation transaction. Redefaults of loans modified within the last 12 months may not be representative of ultimate redefault levels.

Approximately 85% of the trial modifications approved on or after July 1, 2010 (the approximate date on which substantial revisions were made to the HAMP program), that are seasoned more than six months have been successfully converted to permanent modifications.

The primary performance indicator for TDRs is the rate at which modified loans redefault. At March 31, 2012, the cumulative redefault rates of residential real estate loans, excluding PCI loans, based upon permanent modifications completed after October 1, 2009 that are seasoned more than six months are 20% for senior lien home equity, 15% for junior lien home equity, 12% for prime mortgages including option ARMs, and 25% for subprime mortgages.

At March 31, 2012, the weighted-average estimated remaining lives of residential real estate loans, excluding PCI loans, permanently modified in TDRs were 6.7 years, 6.6 years, 9.1 years and 7.3 years for senior lien home equity, junior lien home equity, prime mortgage, including option ARMs, and subprime mortgage, respectively. The estimated remaining lives of these loans reflect estimated prepayments, both voluntary and involuntary (i.e., foreclosures and other forced liquidations).

Other consumer loans

The tables below provide information for other consumer retained loan classes, including auto, business banking and student loans.

(in millions, except ratios)	Auto						Business banking						Student and other								Total other consumer
	Mar 31, 2012			Dec 31, 2011			Mar 31, 2012			Dec 31, 2011			Mar 31, 2012				Dec 31, 2011				Mar 31, 2012				Dec 31, 2011
Loan delinquency(a)
Current	$	47,866		$	46,891		$	17,364		$	17,173		$	12,530			$	12,905			$	77,760			$	76,969
30–119 days past due	374			528			283			326			851				777				1,508				1,631
120 or more days past due	5			7			175			153			473				461				653				621
Total retained loans	$	48,245		$	47,426		$	17,822		$	17,652		$	13,854			$	14,143			$	79,921			$	79,221
% of 30+ days past due to total retained loans	0.79		%	1.13		%	2.57		%	2.71		%	2.01		%	(d)	1.76		%	(d)	1.40		%	(d)	1.59		%	(d)
90 or more days past due and still accruing (b)	$	—		$	—		$	—		$	—		$	586			$	551			$	586			$	551
Nonaccrual loans	102			118			649			694			105				69				856				881
Geographic region
California	$	4,569		$	4,413		$	1,449		$	1,342		$	1,253			$	1,261			$	7,271			$	7,016
New York	3,722			3,616			2,765			2,792			1,379				1,401				7,866				7,809
Florida	1,928			1,881			372			313			642				658				2,942				2,852
Illinois	2,601			2,496			1,367			1,364			835				851				4,803				4,711
Texas	4,511			4,467			2,700			2,680			1,008				1,053				8,219				8,200
New Jersey	1,879			1,829			374			376			454				460				2,707				2,665
Arizona	1,521			1,495			1,146			1,165			308				316				2,975				2,976
Washington	749			735			176			160			246				249				1,171				1,144
Ohio	2,648			2,633			1,526			1,541			862				880				5,036				5,054
Michigan	2,256			2,282			1,388			1,389			624				637				4,268				4,308
All other	21,861			21,579			4,559			4,530			6,243				6,377				32,663				32,486
Total retained loans	$	48,245		$	47,426		$	17,822		$	17,652		$	13,854			$	14,143			$	79,921			$	79,221
Loans by risk ratings(c)
Noncriticized	$	7,474		$	6,775		$	12,028		$	11,749		NA				NA				$	19,502			$	18,524
Criticized performing	161			166			774			817			NA				NA				935				983
Criticized nonaccrual	6			3			505			524			NA				NA				511				527

(a) Loans insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”) are included in the delinquency classifications presented based on their payment status.

(b) These amounts represent student loans, which are insured by U.S. government agencies under the FFELP. These amounts were accruing as reimbursement of insured amounts is proceeding normally.

(c) For risk-rated business banking and auto loans, the primary credit quality indicator is the risk rating of the loan, including whether the loans are considered to be criticized and/or nonaccrual.

(d) March 31, 2012, and December 31, 2011, excluded loans 30 days or more past due and still accruing, which are insured by U.S. government agencies under the FFELP, of $1.0 billion and $989 million, respectively. These amounts were excluded as reimbursement of insured amounts is proceeding normally.

Other consumer impaired loans and loan modifications

The tables below set 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.

(in millions)	Auto				Business banking				Total other consumer(c)
	Mar 31, 2012		Dec 31, 2011		Mar 31, 2012		Dec 31, 2011		Mar 31, 2012		Dec 31, 2011
Impaired loans
With an allowance	$	92	$	88	$	679	$	713	$	771	$	801
Without an allowance(a)	—		3		—		—		—		3
Total impaired loans	$	92	$	91	$	679	$	713	$	771	$	804
Allowance for loan losses related to impaired loans	$	14	$	12	$	216	$	225	$	230	$	237
Unpaid principal balance of impaired loans(b)	128		126		784		822		912		948
Impaired loans on nonaccrual status	42		41		522		551		564		592

(a) When discounted cash flows, collateral value or market price equals or exceeds the recorded investment in the loan, then 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 March 31, 2012, and December 31, 2011. 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.

(c) There were no impaired student and other loans at March 31, 2012, and December 31, 2011.

The following table presents average impaired loans for the periods presented.

Three months ended March 31, (in millions)	Average impaired loans(b)
	2012		2011
Auto	$	92	$	99
Business banking	688		772
Total other consumer(a)	$	780	$	871

(a) There were no impaired student and other loans for the three months ended March 31, 2012 and 2011.

(b) The related interest income on impaired loans, including those on a cash basis, was not material for the three months ended March 31, 2012 and 2011.

Loan modifications

The following table provides information about the Firm’s other consumer loans modified in TDRs. All of these TDRs are reported as impaired loans in the tables above.

(in millions)	Auto				Business banking				Total other consumer(c)
	Mar 31, 2012		Dec 31, 2011		Mar 31, 2012		Dec 31, 2011		Mar 31, 2012		Dec 31, 2011
Loans modified in troubled debt restructurings(a)(b)	$	91	$	88	$	378	$	415	$	469	$	503
TDRs on nonaccrual status	41		38		221		253		262		291

(a) These modifications generally provided interest rate concessions to the borrower or deferral of principal repayments.

(b) Additional commitments to lend to borrowers whose loans have been modified in TDRs as of March 31, 2012, and December 31, 2011, were immaterial.

(c) There were no student and other loans modified in TDRs at March 31, 2012, and December 31, 2011.

TDR activity rollforward

The following table reconciles the beginning and ending balances of other consumer loans modified in TDRs for the period presented.

Three months ended March 31,  (in millions)	Auto						Business banking						Total other consumer
	2012			2011			2012			2011			2012			2011
Beginning balance of TDRs	$	88		$	91		$	415		$	395		$	503		$	486
New TDRs	17			13			13			56			30			69
Charge-offs	(2		)	(2		)	(3		)	(1		)	(5		)	(3		)
Foreclosures and other liquidations	—			—			—			—			—			—
Principal payments and other	(12		)	(12		)	(47		)	(42		)	(59		)	(54		)
Ending balance of TDRs	$	91		$	90		$	378		$	408		$	469		$	498

Financial effects of modifications and redefaults

For auto loans, TDRs typically occur in connection with the bankruptcy of the borrower. In these cases, the loan is modified with a revised repayment plan that typically incorporates interest rate reductions and, to a lesser extent, principal forgiveness.

For business banking loans, concessions are dependent on individual borrower circumstances and can be of a short-term nature for borrowers who need temporary relief or longer term for borrowers experiencing more fundamental financial difficulties. Concessions are predominantly term or payment extensions, but also may include interest rate reductions.

For the three months ended March 31, 2012 and 2011, the interest rates on auto loans modified in TDRs were reduced on average from 9.98% to 4.46% and from 11.69% to 5.57%, respectively, and the interest rates on business banking loans modified in TDRs were reduced on average from 7.96% to 6.15% and from 7.33% to 5.54%, respectively. For business banking loans, the weighted-average remaining term of all loans modified in TDRs during the three months ended March 31, 2012 and 2011, increased from 1.4 years to 3.5 years and from 1.5 years to 2.9 years, respectively. For all periods presented, principal forgiveness related to auto loans was immaterial.

The balance of business banking loans modified in TDRs that experienced a payment default during the three months ended March 31, 2012 and 2011, and for which the payment default occurred within one year of the modification, was $11 million and $24 million, respectively; the corresponding balance of redefaulted auto loans modified in TDRs was insignificant. A payment default is deemed to occur as follows: (1) for scored auto and business banking loans, when the loan is two payments past due; and (2) for risk-rated business banking loans and auto loans, when the borrower has not made a loan payment by its scheduled due date after giving effect to the contractual grace period, if any.

Purchased credit-impaired loans

For a detailed discussion of PCI loans, including the related accounting policies, see Note 14 on pages 231–252 of JPMorgan Chase’s 2011 Annual Report.

Residential real estate – PCI loans

The table below sets forth information about the Firm’s consumer, excluding credit card, PCI loans.

(in millions, except ratios)	Home equity						Prime mortgage						Subprime mortgage						Option ARMs						Total PCI
	Mar 31, 2012			Dec 31, 2011			Mar 31, 2012			Dec 31, 2011			Mar 31, 2012			Dec 31, 2011			Mar 31, 2012			Dec 31, 2011			Mar 31, 2012			Dec 31, 2011
Carrying value(a)	$	22,305		$	22,697		$	14,781		$	15,180		$	4,870		$	4,976		$	22,105		$	22,693		$	64,061		$	65,546
Related allowance for loan losses(b)	1,908			1,908			1,929			1,929			380			380			1,494			1,494			5,711			5,711
Loan delinquency (based on unpaid principal balance)
Current	$	22,132		$	22,682		$	11,973		$	12,148		$	4,439		$	4,388		$	17,703		$	17,919		$	56,247		$	57,137
30–149 days past due	955			1,130			810			912			673			782			1,266			1,467			3,704			4,291
150 or more days past due	1,243			1,252			2,679			3,000			1,853			2,059			6,129			6,753			11,904			13,064
Total loans	$	24,330		$	25,064		$	15,462		$	16,060		$	6,965		$	7,229		$	25,098		$	26,139		$	71,855		$	74,492
% of 30+ days past due to total loans	9.03		%	9.50		%	22.56		%	24.36		%	36.27		%	39.30		%	29.46		%	31.45		%	21.72		%	23.30		%
Current estimated LTV ratios (based on unpaid principal balance)(c)(d)
Greater than 125% and refreshed FICO scores:
Equal to or greater than 660	$	5,683		$	5,915		$	2,236		$	2,313		$	468		$	473		$	2,394		$	2,509		$	10,781		$	11,210
Less than 660	3,235			3,299			2,206			2,319			1,870			1,939			4,173			4,608			11,484			12,165
101% to 125% and refreshed FICO scores:
Equal to or greater than 660	5,178			5,393			3,211			3,328			443			434			3,836			3,959			12,668			13,114
Less than 660	2,223			2,304			2,248			2,314			1,419			1,510			3,727			3,884			9,617			10,012
80% to 100% and refreshed FICO scores:
Equal to or greater than 660	3,392			3,482			1,601			1,629			357			372			3,665			3,740			9,015			9,223
Less than 660	1,265			1,264			1,340			1,457			1,129			1,197			2,961			3,035			6,695			6,953
Lower than 80% and refreshed FICO scores:
Equal to or greater than 660	2,358			2,409			1,237			1,276			202			198			2,165			2,189			5,962			6,072
Less than 660	996			998			1,383			1,424			1,077			1,106			2,177			2,215			5,633			5,743
Total unpaid principal balance	$	24,330		$	25,064		$	15,462		$	16,060		$	6,965		$	7,229		$	25,098		$	26,139		$	71,855		$	74,492
Geographic region (based on unpaid principal balance)
California	$	14,677		$	15,091		$	8,803		$	9,121		$	1,612		$	1,661		$	13,100		$	13,565		$	38,192		$	39,438
New York	1,147			1,179			998			1,018			685			709			1,508			1,548			4,338			4,454
Florida	2,221			2,307			1,187			1,265			753			812			2,967			3,201			7,128			7,585
Illinois	542			558			482			511			384			411			659			702			2,067			2,182
Texas	437			455			162			168			397			405			132			140			1,128			1,168
New Jersey	456			471			433			445			281			297			938			969			2,108			2,182
Arizona	454			468			243			254			120			126			336			362			1,153			1,210
Washington	1,329			1,368			370			388			156			160			624			649			2,479			2,565
Ohio	31			32			77			79			109			114			104			111			321			336
Michigan	78			81			229			239			181			187			253			268			741			775
All other	2,958			3,054			2,478			2,572			2,287			2,347			4,477			4,624			12,200			12,597
Total unpaid principal balance	$	24,330		$	25,064		$	15,462		$	16,060		$	6,965		$	7,229		$	25,098		$	26,139		$	71,855		$	74,492

(a) Carrying value includes the effect of fair value adjustments that were applied to the consumer PCI portfolio at the date of acquisition.

(b) Management concluded as part of the Firm’s regular assessment of the PCI loan pools that it was probable that higher expected credit losses would result in a decrease in expected cash flows. As a result, an allowance for loan losses for impairment of these pools has been recognized.

(c) Represents the aggregate unpaid principal balance of loans divided by the estimated current property value. Current property values are estimated, at a minimum, quarterly, based on home valuation models using nationally recognized home price index valuation estimates incorporating actual data to the extent available and forecasted data where actual data is not available. These property values do not represent actual appraised loan level collateral values; as such, the resulting ratios are necessarily imprecise and should be viewed as estimates. Current estimated combined LTV for junior lien home equity loans considers all available lien positions related to the property.

(d) Refreshed FICO scores, which the Firm obtains at least quarterly, represent each borrower’s most recent credit score.

Approximately 20% of the PCI home equity portfolio are senior lien loans; the remaining balance are junior lien HELOANs or HELOCs. The following table represents delinquency statistics for PCI junior lien home equity loans and lines of credit based on unpaid principal balance as of March 31, 2012, and December 31, 2011.

	Delinquencies
March 31, 2012 (in millions, except ratios)	30–89 days past due		90–149 days past due		150+ days past due		Total loans		Total 30+ day delinquency rate
HELOCs:(a)
Within the revolving period(b)	$	419	$	240	$	539	$	17,610	6.80	%
Within the required amortization period(c)	17		9		8		483		7.04
HELOANs	43		24		45		1,265		8.85
Total	$	479	$	273	$	592	$	19,358	6.94	%

	Delinquencies
December 31, 2011 (in millions, except ratios)	30–89 days past due		90–149 days past due		150+ days past due		Total loans		Total 30+ day delinquency rate
HELOCs:(a)
Within the revolving period(b)	$	500	$	296	$	543	$	18,246	7.34	%
Within the required amortization period(c)	16		11		5		400		8.00
HELOANs	53		29		44		1,327		9.50
Total	$	569	$	336	$	592	$	19,973	7.50	%

(a) In general, HELOCs are revolving loans for a 10-year period, after which time the HELOC converts to a loan with a 20-year amortization period.

(b) Substantially all undrawn HELOCs within the revolving period have been closed.

(c) Predominantly all of these loans have been modified to provide a more affordable payment to the borrower.

The table below sets forth the accretable yield activity for the Firm’s PCI consumer loans for the three months ended March 31, 2012 and 2011, and represents the Firm’s estimate of gross interest income expected to be earned over the remaining life of the PCI loan portfolios. This table excludes the cost to fund the PCI portfolios, and therefore does not represent net interest income expected to be earned on these portfolios.

Three months ended March 31, (in millions, except ratios)	Total PCI
	2012			2011
Beginning balance	$	19,072		$	19,097
Accretion into interest income	(658		)	(704		)
Changes in interest rates on variable-rate loans	(140		)	(32		)
Other changes in expected cash flows(a)	1,443			455
Balance at March 31	$	19,717		$	18,816
Accretable yield percentage	4.48		%	4.29		%

(a) Other changes in expected cash flows may vary from period to period as the Firm continues to refine its cash flow model and periodically updates model assumptions. For the three months ended March 31, 2012, other changes in expected cash flows were principally driven by the impact of modifications, but also related to changes in prepayment assumptions. For the three months ended March 31, 2011, other changes in expected cash flows were principally driven by changes in prepayment assumptions.

The factors that most significantly affect estimates of gross cash flows expected to be collected, and accordingly the accretable yield balance, include: (i) changes in the benchmark interest rate indices for variable-rate products such as option ARM and home equity loans; and (ii) changes in prepayment assumptions.

Since the date of acquisition, the decrease in the accretable yield percentage has been primarily related to a decrease in interest rates on variable-rate loans and, to a lesser extent, extended loan liquidation periods. Certain events, such as extended loan liquidation periods, affect the timing of expected cash flows but not the amount of cash expected to be received (i.e., the accretable yield balance). Extended loan liquidation periods reduce the accretable yield percentage because the same accretable yield balance is recognized against a higher-than-expected loan balance over a longer-than-expected period of time.

Credit card loan portfolio

The Credit card portfolio segment includes credit card loans originated and purchased by the Firm, including those acquired in the Washington Mutual transaction. Prior to January 1, 2012, the Credit card portfolio segment was reported as two classes: Chase, excluding Washington Mutual, and Washington Mutual. The Washington Mutual class is a run-off portfolio that has been declining since the Firm acquired the portfolio in 2008. Effective January 1, 2012, management determined that the Washington Mutual portfolio class is no longer significant, and therefore, the Credit card portfolio segment is now being reported as one class of loans. Delinquency rates are the primary credit quality indicator for credit card loans. The geographic distribution of the loans provides insight as to the credit quality of the portfolio based on the regional economy. While the borrower’s credit score is another general indicator of credit quality, because the borrower’s credit score tends to be a lagging indicator, the Firm does not use credit scores as a primary indicator of credit quality. For more information on credit quality indicators, see Note 14 on pages 231–252 of JPMorgan Chase’s 2011 Annual Report. The Firm generally originates new card accounts to prime consumer borrowers. However, certain cardholders’ FICO scores may change over time, depending on the performance of the cardholder and changes in credit score technology.

The table below sets forth information about the Firm’s credit card loans.

(in millions, except ratios)	Mar 31, 2012			Dec 31, 2011
Loan delinquency
Current and less than 30 days past due and still accruing	$	121,282		$	128,464
30–89 days past due and still accruing	1,491			1,808
90 or more days past due and still accruing	1,701			1,902
Nonaccrual loans	1			1
Total retained credit card loans	$	124,475		$	132,175
Loan delinquency ratios
% of 30+ days past due to total retained loans	2.56		%	2.81		%
% of 90+ days past due to total retained loans	1.37			1.44
Credit card loans by geographic region
California	$	16,567		$	17,598
New York	9,962			10,594
Texas	9,783			10,239
Florida	7,182			7,583
Illinois	7,115			7,548
New Jersey	5,222			5,604
Ohio	4,852			5,202
Pennsylvania	4,430			4,779
Michigan	3,720			3,994
Virginia	3,100			3,298
All other	52,542			55,736
Total retained credit card loans	$	124,475		$	132,175
Percentage of portfolio based on carrying value with estimated refreshed FICO scores(a)
Equal to or greater than 660	81.5		%	81.4		%
Less than 660	18.5			18.6

(a) Refreshed FICO scores are estimated based on a statistically significant random sample of credit card accounts in the credit card portfolio for the period shown. The Firm obtains refreshed FICO scores at least quarterly.

Credit card impaired loans and loan modifications

For a detailed discussion of impaired credit card loans, including credit card loan modifications, see Note 14 on pages 231–252 of JPMorgan Chase’s 2011 Annual Report. The table below sets forth information about the Firm’s impaired credit card loans. All of these loans are considered to be impaired as they have been modified in TDRs.

(in millions)	Mar 31, 2012		Dec 31, 2011
Impaired credit card loans with an allowance(a)(b)
Credit card loans with modified payment terms(c)	$	5,561	$	6,075
Modified credit card loans that have reverted to pre-modification payment terms(d)	963		1,139
Total impaired credit card loans	$	6,524	$	7,214
Allowance for loan losses related to impaired credit card loans	$	2,402	$	2,727

(a) The carrying value and the unpaid principal balance are the same for credit card impaired loans.

(b) There were no impaired loans without an allowance.

(c) Represents credit card loans outstanding to borrowers enrolled in a credit card modification program as of the date presented.

(d) Represents credit card loans that were modified in TDRs but that have subsequently reverted back to the loans’ pre-modification payment terms. At March 31, 2012, and December 31, 2011, $646 million and $762 million, respectively, of loans have reverted back to the pre-modification payment terms of the loans due to noncompliance with the terms of the modified loans. Based on the Firm’s historical experience a substantial portion of these loans is expected to be charged-off in accordance with the Firm’s standard charge-off policy. The remaining $317 million and $377 million at March 31, 2012, and December 31, 2011, respectively, of these loans are to borrowers who have successfully completed a short-term modification program. The Firm continues to report these loans as TDRs since the borrowers’ credit lines remain closed.

The following table presents average balances of impaired credit card loans and interest income recognized on those loans.

Three months ended March 31,
(in millions)	2012		2011
Average impaired credit card loans	$	6,845	$	9,494
Interest income on impaired credit card loans	89		130

Loan modifications

JPMorgan Chase may offer one of a number of loan modification programs to credit card borrowers who are experiencing financial difficulty. The Firm has short-term programs for borrowers who may be in need of temporary relief, and long-term programs for borrowers who are experiencing a more fundamental level of financial difficulties. Most of the credit card loans have been modified under long-term programs. Modifications under long-term programs involve placing the customer on a fixed payment plan, generally for 60 months. Modifications under all short- and long-term programs typically include reducing the interest rate on the credit card. Certain borrowers enrolled in a short-term modification program may be given the option to re-enroll in a long-term program. Substantially all modifications are considered to be TDRs.

If the cardholder does not comply with the modified payment terms, then the credit card loan agreement reverts back to its pre-modification payment terms. Assuming that the cardholder does not begin to perform in accordance with those payment terms, the loan continues to age and will ultimately be charged-off in accordance with the Firm’s standard charge-off policy. In addition, if a borrower successfully completes a short-term modification program, then the loan reverts back to its pre-modification payment terms. However, in most cases, the Firm does not reinstate the borrower’s line of credit.

The following table provides information regarding the nature and extent of modifications of credit card loans for the periods presented.

Three months ended March 31, (in millions)	New enrollments
	2012		2011
Short-term programs	$	31	$	55
Long-term programs	480		826
Total new enrollments	$	511	$	881

Financial effects of modifications and redefaults

The following tables provide information about the financial effects of the concessions granted on credit card loans modified in TDRs and redefaults for the period presented.

Three months ended March 31, (in millions, except weighted-average data)	2012			2011
Weighted-average interest rate of loans – before TDR	16.46		%	16.35		%
Weighted-average interest rate of loans – after TDR	5.52			5.27
Loans that redefaulted within one year of modification(a)	$	97		$	199

(a) Represents loans modified in TDRs that experienced a payment default in the period presented, and for which the payment default occurred within one year of the modification. The amounts presented represent the balance of such loans as of the end of the quarter in which they defaulted.

For credit card loans modified in TDRs, payment default is deemed to have occurred when the loans become two payments past due. At the time of default, a loan is removed from the modification program and reverts back to its pre-modification terms. Based on historical experience, a substantial portion of these loans are expected to be charged-off in accordance with the Firm’s standard charge-off policy. Also based on historical experience, the estimated weighted-average ultimate default rate for modified credit card loans was 35.72% at March 31, 2012, and 35.47% at December 31, 2011.