RURAL ELECTRIC COOPERATIVE GRANTOR TRUST KEPCO SERIES 1997 - FORM 10-K - EX-99 - EXHIBIT 99 JP MORGAN CHASE & CO FINANCIAL INFORMATION - March 9, 2016

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10-K - 10-K KEPCO 12-31-2015 - RURAL ELECTRIC COOPERATIVE GRANTOR TRUST KEPCO SERIES 1997kepco10-k12312015.htm
EX-12 - EXHIBIT 12 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - RURAL ELECTRIC COOPERATIVE GRANTOR TRUST KEPCO SERIES 1997exhibit12-computationofrat.htm
EX-32.2 - EXHIBIT 32.2 CFO SECTION 906 CERTIFICATION - RURAL ELECTRIC COOPERATIVE GRANTOR TRUST KEPCO SERIES 1997exhibit322section906cfocer.htm
EX-32.1 - EXHIBIT 32.1 CEO SECTION 906 CERTIFICATION - RURAL ELECTRIC COOPERATIVE GRANTOR TRUST KEPCO SERIES 1997exhibit321section906ceocer.htm
EX-31.1 - EXHIBIT 31.1 CEO SECTION 302 CERTIFICATION - RURAL ELECTRIC COOPERATIVE GRANTOR TRUST KEPCO SERIES 1997exhibit311section302ceocer.htm
EX-31.2 - EXHIBIT 31.2 CFO SECTION 302 CERTIFICATION - RURAL ELECTRIC COOPERATIVE GRANTOR TRUST KEPCO SERIES 1997exhibit312section302cfocer.htm


Exhibit 99

J. P. MORGAN CHASE & CO.
and
MORGAN GUARANTY TRUST COMPANY OF NEW YORK

As of December 31, 2000, Morgan Guaranty Trust Company of New York ("Morgan Guaranty") was a wholly owned bank subsidiary of J.P. Morgan Chase & Co., a Delaware corporation whose principal office is located in New York, New York. Morgan Guaranty was a commercial bank offering a wide range of banking services to its customers both domestically and internationally. Its business was subject to examination and regulation by Federal and New York State banking authorities.
On November 10, 2001, J. P. Morgan & Co. merged with The Chase Manhattan Bank. Upon consummation of the merger, The Chase Manhattan Bank changed its name to JP Morgan Chase & Co.
The following table sets forth certain summarized financial information of J.P. Morgan Chase & Co. and for Morgan Guaranty as of the dates and for the periods indicated. The information presented for the years ended December 31, 2015, 2014, 2013, 2012, and 2011 in accordance with generally accepted accounting principles.

Five-year summary of consolidated financial highlights

As of or for the year ended December 31,
(unaudited)

(in millions, except per share, ratio, headcount data and where otherwise noted)
 
2015
2014
2013
2012
2011
Selected income statement data
 
 
 
 
 
 
Total net revenue
 
$
93,543
 
$
95,112
 
$
97,367
 
$
97,680
 
$
97,843
 
Total noninterest expense
 
59,014
 
61,274
 
70,467
 
64,729
 
62,911
 
Pre-provision profit
 
34,529
 
33,838
 
26,900
 
32,951
 
34,932
 
Provision for credit losses
 
3,827
 
3,139
 
225
 
3,385
 
7,574
 
Income before income tax expense
 
30,702
 
30,699
 
26,675
 
29,566
 
27,358
 
Income tax expense
 
6,260
 
8,954
 
8,789
 
8,307
 
8,402
 
Net income
 
$
24,442
 
$
21,745
 
$
17,886
 
$
21,259
 
$
18,956
 
Earnings per share data
 
 
 
 
 
 
Net income: Basic
 
$
6.05
 
$
5.33
 
$
4.38
 
$
5.21
 
$
4.50
 
           Diluted
 
6.00
 
5.29
 
4.34
 
5.19
 
4.48
 
Average shares: Basic
 
3,700.4
 
3,763.5
 
3,782.4
 
3,809.4
 
3,900.4
 
              Diluted
 
3,732.8
 
3,797.5
 
3,814.9
 
3,822.2
 
3,920.3
 
Market and per common share data
 
 
 
 
 
 
Market capitalization
 
$
241,899
 
$
232,472
 
$
219,657
 
$
167,260
 
$
125,442
 
Common shares at period-end
 
3,663.5
 
3,714.8
 
3,756.1
 
3,804.0
 
3,772.7
 
Share price(a)
 
 
 
 
 
 
High
 
$
70.61
 
$
63.49
 
$
58.55
 
$
46.49
 
$
48.36
 
Low
 
50.07
 
52.97
 
44.20
 
30.83
 
27.85
 
Close
 
66.03
 
62.58
 
58.48
 
43.97
 
33.25
 
Book value per share
 
60.46
 
56.98
 
53.17
 
51.19
 
46.52
 
Tangible book value per share (“TBVPS”)(b)
 
48.13
 
44.60
 
40.72
 
38.68
 
33.62
 
Cash dividends declared per share
 
1.72
 
1.58
 
1.44
 
1.20
 
1.00
 
Selected ratios and metrics
 
 
 
 
 
 
Return on common equity (“ROE”)
 
11
%
10
%
9
%
11
%
11
%
Return on tangible common equity (“ROTCE”)(b)
 
13
 
13
 
11
 
15
 
15
 
Return on assets (“ROA”)
 
0.99
 
0.89
 
0.75
 
0.94
 
0.86
 




Overhead ratio
 
63
 
64
 
72
 
66
 
64
 
Loans-to-deposits ratio
 
65
 
56
 
57
 
61
 
64
 
High quality liquid assets (“HQLA“) (in billions)(c)
 
$
496
 
$
600
 
$
522
 
341
 
NA
 
Common equity tier 1 (“CET1”) capital ratio(d)
 
11.8
%
10.2
%
10.7
%
11.0
%
10.0
%
Tier 1 capital ratio(d)
 
13.5
 
11.6
 
11.9
 
12.6
 
12.3
 
Total capital ratio(d)
 
15.1
 
13.1
 
14.3
 
15.2
 
15.3
 
Tier 1 leverage ratio(d)
 
8.5
 
7.6
 
7.1
 
7.1
 
6.8
 
Selected balance sheet data (period-end)
 
 
 
 
 
 
Trading assets
 
$
343,839
 
$
398,988
 
$
374,664
 
$
450,028
 
$
443,963
 
Securities
 
290,827
 
348,004
 
354,003
 
371,152
 
364,793
 
Loans
 
837,299
 
757,336
 
738,418
 
733,796
 
723,720
 
Core Loans
 
732,093
 
628,785
 
583,751
 
555,351
 
518,095
 
Total assets
 
2,351,698
 
2,572,274
 
2,414,879
 
2,358,323
 
2,264,976
 
Deposits
 
1,279,715
 
1,363,427
 
1,287,765
 
1,193,593
 
1,127,806
 
Long-term debt(e)
 
288,651
 
276,379
 
267,446
 
248,521
 
255,962
 
Common stockholders’ equity
 
221,505
 
211,664
 
199,699
 
194,727
 
175,514
 
Total stockholders’ equity
 
247,573
 
231,727
 
210,857
 
203,785
 
183,314
 
Headcount
 
234,598
 
241,359
 
251,196
 
258,753
 
259,940
 
Credit quality metrics
 
 
 
 
 
 
Allowance for credit losses
 
$
14,341
 
$
14,807
 
$
16,969
 
$
22,604
 
$
28,282
 
Allowance for loan losses to total retained loans
 
1.63
%
1.90
%
2.25
%
3.02
%
3.84
%
Allowance for loan losses to retained loans excluding purchased credit-impaired loans(f)
 
1.37
 
1.55
 
1.80
 
2.43
 
3.35
 
Nonperforming assets
 
$
7,034
 
$
7,967
 
$
9,706
 
$
11,906
 
$
11,315
 
Net charge-offs
 
4,086
 
4,759
 
5,802
 
9,063
 
12,237
 
Net charge-off rate
 
0.52
%
0.65
%
0.81
%
1.26
%
1.78
%
Note: Effective October 1, 2015, and January 1, 2015, JPMorgan Chase & Co. adopted new accounting guidance, retrospectively, related to (1) the presentation of debt issuance costs, and (2) investments in affordable housing projects that qualify for the low-income housing tax credit, respectively. For additional information, see Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 80-82 , Accounting and Reporting Developments on page 170 , and Note 1.
(a)

Share prices shown for JPMorgan Chase’s common stock are from the New York Stock Exchange.
(b)
TBVPS and ROTCE are non-GAAP financial measures. For further discussion of these measures, see Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 80–82.
(c)
HQLA represents the amount of assets that qualify for inclusion in the liquidity coverage ratio under the final U.S. rule (“U.S. LCR”) for December 31, 2015 and the Firm’s estimated amount for December 31, 2014 prior to the effective date of the final rule, and under the Basel III liquidity coverage ratio (“Basel III LCR”) for prior periods. The Firm did not begin estimating HQLA until December 31, 2012. For additional information, see HQLA on page 160.

(d)
Basel III Transitional rules became effective on January 1, 2014; prior period data is based on Basel I rules. As of December 31, 2014 the ratios presented are calculated under the Basel III Advanced Transitional Approach. CET1 capital under Basel III replaced Tier 1 common capital under Basel I. Prior to Basel III becoming effective on January 1, 2014, Tier 1 common capital under Basel I was a non-GAAP financial measure. See Capital Management on pages 149–158for additional information on Basel III and non-GAAP financial measures of regulatory capital.

(e)
Included unsecured long-term debt of $211.8 billion, $207.0 billion, $198.9 billion, $200.1 billion and $230.5 billion respectively, as of December 31, of each year presented.

(f)
Excluded the impact of residential real estate purchased credit-impaired (“PCI”) loans, a non-GAAP financial measure. For further discussion of these measures, see Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 80–82. For further discussion, see Allowance for credit losses on pages 130–132.