RURAL ELECTRIC COOPERATIVE GRANTOR TRUST KEPCO SERIES 1997 - FORM 10-K - EX-99 - EXHIBIT 99 - March 10, 2014

Attached files

file filename
10-K - ANNUAL REPORT - RURAL ELECTRIC COOPERATIVE GRANTOR TRUST KEPCO SERIES 1997v370966_10k.htm
EX-32.1 - EXHIBIT 32.1 - RURAL ELECTRIC COOPERATIVE GRANTOR TRUST KEPCO SERIES 1997v370966_ex32-1.htm
EX-12 - EXHIBIT 12 - RURAL ELECTRIC COOPERATIVE GRANTOR TRUST KEPCO SERIES 1997v370966_ex12.htm
EX-32.2 - EXHIBIT 32.2 - RURAL ELECTRIC COOPERATIVE GRANTOR TRUST KEPCO SERIES 1997v370966_ex32-2.htm
EX-31.1 - EXHIBIT 31.1 - RURAL ELECTRIC COOPERATIVE GRANTOR TRUST KEPCO SERIES 1997v370966_ex31-1.htm
EX-31.2 - EXHIBIT 31.2 - RURAL ELECTRIC COOPERATIVE GRANTOR TRUST KEPCO SERIES 1997v370966_ex31-2.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 JPMorgan Chase & Co. as of the dates and for the periods indicated. This information was obtained from J.P. Morgan Chase & Co.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013.

 

Five-Year Summary of Consolidated Financial Highlights

As of or for the Year Ended December 31,

(unaudited)

 

(in millions, except per share, ratio and headcount data)   2013   2012   2011   2010   2009 
Selected income statement data                         
Total net revenue  $96,606   $97,031   $97,234   $102,694   $100,434 
Total noninterest expense   70,467    64,729    62,911    61,196    52,352 
Pre-provision profit   26,139    32,302    34,323    41,498    48,082 
Provision for credit losses   225    3,385    7,574    16,639    32,015 
Income before income tax expense and extraordinary gain   25,914    28,917    26,749    24,859    16,067 
Income tax expense   7,991    7,633    7,773    7,489    4,415 
Income before extraordinary gain   17,923    21,284    18,976    17,370    11,652 
Extraordinary gain   —    —    —    —    76 
Net income  $17,923   $21,284   $18,976   $17,370   $11,728 
Per common share data                         
Basic earnings                         
Income before extraordinary gain  $4.39   $5.22   $4.50   $3.98   $2.25 
Net income   4.39    5.22    4.50    3.98    2.27 
Diluted earnings                         
Income before extraordinary gain  $4.35   $5.20   $4.48   $3.96   $2.24 
Net income   4.35    5.20    4.48    3.96    2.26 
Cash dividends declared per share   1.44    1.20    1.00    0.20    0.20 
Book value per share   53.25    51.27    46.59    43.04    39.88 
Tangible book value per share (“TBVS”)(a)   40.81    38.75    33.69    30.18    27.09 
Common shares outstanding                         
Average: Basic   3,782.4    3,809.4    3,900.4    3,956.3    3,862.8 
Diluted   3,814.9    3,822.2    3,920.3    3,976.9    3,879.7 
Common shares at period-end   3,756.1    3,804.0    3,772.7    3,910.3    3,942.0 
Share price(b)                         
High  $58.55   $46.49   $48.36   $48.20   $47.47 
Low   44.20    30.83    27.85    35.16    14.96 
Close   58.48    43.97    33.25    42.42    41.67 

 

 
 

 

(in millions, except per share, ratio and headcount data)   2013   2012   2011   2010   2009 
Market capitalization   219,657    167,260    125,442    165,875    164,261 
Selected ratios                         
Return on common equity (“ROE”)                         
Income before extraordinary gain   9%   11%   11%   10%   6%
Net income   9    11    11    10    6 
Return on tangible common equity (“ROTCE”)(a)                         
Income before extraordinary gain   11    15    15    15    10 
Net income   11    15    15    15    10 
Return on assets (“ROA”)                         
Income before extraordinary gain   0.75    0.94    0.86    0.85    0.58 
Net income   0.75    0.94    0.86    0.85    0.58 
Return on risk-weighted assets(c)(d)                         
Income before extraordinary gain   1.28    1.65    1.58    1.50    0.95 
Net income   1.28    1.65    1.58    1.50    0.95 
Overhead ratio   73    67    65    60    52 
Loans-to-deposits ratio   57    61    64    74    68 
High Quality Liquid Assets (“HQLA“) (in billions)(e)  $522   $341    NA    NA    NA 
Tier 1 capital ratio (d)   11.9%   12.6%   12.3%   12.1%   11.1%
Total capital ratio(d)   14.4    15.3    15.4    15.5    14.8 
Tier 1 leverage ratio   7.1    7.1    6.8    7.0    6.9 
Tier 1 common capital ratio(d)(f)   10.7    11.0    10.1    9.8    8.8 
Selected balance sheet data (period-end)                         
Trading assets  $374,664   $450,028   $443,963   $489,892   $411,128 
Securities(g)   354,003    371,152    364,793    316,336    360,390 
Loans   738,418    733,796    723,720    692,927    633,458 
Total assets   2,415,689    2,359,141    2,265,792    2,117,605    2,031,989 
Deposits   1,287,765    1,193,593    1,127,806    930,369    938,367 
Long-term debt(h)   267,889    249,024    256,775    270,653    289,165 
Common stockholders’ equity   200,020    195,011    175,773    168,306    157,213 
Total stockholders’ equity   211,178    204,069    183,573    176,106    165,365 
Headcount(i)   251,196    258,753    259,940    239,515    221,200 
Credit quality metrics                         
Allowance for credit losses  $16,969   $22,604   $28,282   $32,983   $32,541 
Allowance for loan losses to total retained loans   2.25%   3.02%   3.84%   4.71%   5.04%
Allowance for loan losses to retained loans excluding purchased credit-impaired loans(j)   1.80    2.43    3.35    4.46    5.51 
Nonperforming assets  $9,706   $11,906   $11,315   $16,682   $19,948 
Net charge-offs   5,802    9,063    12,237    23,673    22,965 
Net charge-off rate   0.81%   1.26%   1.78%   3.39%   3.42%

 

 

(a)TBVS and ROTCE are non-GAAP financial measures. TBVS represents the Firm’s tangible common equity divided by period-end common shares. ROTCE measures the Firm’s annualized earnings as a percentage of tangible common equity. For further discussion of these measures, see Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 82–83 of this Annual Report.

 

(b)Share prices shown for JPMorgan Chase’s common stock are from the New York Stock Exchange. JPMorgan Chase’s common stock is also listed and traded on the London Stock Exchange and the Tokyo Stock Exchange.

 

(c)Return on Basel I risk-weighted assets is the annualized earnings of the Firm divided by its average risk-weighted assets (“RWA”).

 

 
 

 

(d)Basel 2.5 rules became effective for the Firm on January 1, 2013. The implementation of these rules in the first quarter of 2013 resulted in an increase of approximately $150 billion in RWA compared with the Basel I rules. The implementation of these rules also resulted in decreases of the Firm’s Tier 1 capital, Total capital and Tier 1 common capital ratios by 140 basis points, 160 basis points and 120 basis points, respectively, at March 31, 2013. For further discussion of Basel 2.5, see Regulatory capital on pages 160–167 of this Annual Report.

 

(e)The Firm began estimating its total HQLA as of December 31, 2012, based on its current understanding of the Basel III LCR rules. For further discussion about HQLA, including its components, see Liquidity Risk on page 172 of this Annual Report.

 

(f)Basel I Tier 1 common capital ratio (“Tier 1 common ratio”) is Tier 1 common capital (“Tier 1 common”) divided by RWA. The Firm uses Tier 1 common capital along with the other capital measures to assess and monitor its capital position. For further discussion of the Tier 1 common capital ratio, see Regulatory capital on pages 161–165 of this Annual Report.

 

(g)Included held-to-maturity balances of $24.0 billion at December 31, 2013. Held-to-maturity balances for the other periods were not material.

 

(h)Included unsecured long-term debt of $199.4 billion, $200.6 billion, $231.3 billion, $238.2 billion and $258.1 billion, respectively, as of December 31, of each year presented.

 

(i)Effective January 1, 2013, interns are excluded from the firmwide and business segment headcount metrics. Prior periods were revised to conform with this presentation.

 

(j)Excludes the impact of residential real estate purchased credit-impaired (“PCI”) loans. For further discussion, see Allowance for credit losses on pages 139–141 of this Annual Report.

 

Source: JPMorgan Chase & Co./2013 Annual Report