Preferred stock
At December 31, 2013 and 2012, JPMorgan Chase was authorized to issue 200 million shares of preferred stock, in one or more series, with a par value of $1 per share.
In the event of a liquidation or dissolution of the Firm, JPMorgan Chase’s preferred stock then outstanding takes precedence over the Firm’s common stock for the payment of dividends and the distribution of assets.
The following is a summary of JPMorgan Chase’s preferred stock outstanding as of December 31, 2013 and 2012.
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| | Contractual rate in effect at December 31, 2013 | | Shares at December 31,(a) | | Carrying value (in millions) at December 31, | | Earliest redemption date | | Share value and redemption price per share(b) |
| | | 2013 | 2012 | | 2013 | 2012 | |
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series I | | 7.900 | % | | 600,000 |
| 600,000 |
| | $ | 6,000 |
| $ | 6,000 |
| | 4/30/2018 | | $ | 10,000 |
|
8.625% Non-Cumulative Perpetual Preferred Stock, Series J | | N/A |
| | — |
| 180,000 |
| | — |
| 1,800 |
| | 9/1/2013 | | 10,000 |
|
5.50% Non-Cumulative Perpetual Preferred Stock, Series O | | 5.500 | % | | 125,750 |
| 125,750 |
| | 1,258 |
| 1,258 |
| | 9/1/2017 | | 10,000 |
|
5.45% Non-Cumulative Perpetual Preferred Stock, Series P | | 5.450 | % | | 90,000 |
| — |
| | 900 |
| — |
| | 3/1/2018 | | 10,000 |
|
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series Q | | 5.150 | % | | 150,000 |
| — |
| | 1,500 |
| — |
| | 5/1/2023 | | 10,000 |
|
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series R | | 6.000 | % | | 150,000 |
| — |
| | 1,500 |
| — |
| | 8/1/2023 | | 10,000 |
|
Total preferred stock | | | | 1,115,750 |
| 905,750 |
| | $ | 11,158 |
| $ | 9,058 |
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(a) | Represented by depositary shares. |
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(b) | The redemption price includes the amount shown in the table plus any accrued but unpaid dividends. |
Dividends on the Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series I shares are payable semiannually at a fixed annual dividend rate of 7.90% through April 2018, and then become payable quarterly at an annual dividend rate of three-month LIBOR plus 3.47%. Dividends on the 5.50% Non-Cumulative Preferred Stock, Series O and the 5.45% Non-Cumulative Preferred Stock, Series P are payable quarterly. Dividends on the Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series Q shares are payable semi-annually at a fixed annual rate of 5.15% through April 2023, and then become payable at a dividend rate of three-month LIBOR plus 3.25%. Dividends on the Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series R shares are payable semi-annually at a fixed annual dividend rate of 6.00% through July 2023, and then become payable at a dividend rate of three-month LIBOR plus 3.30%.
The Series O Non-Cumulative Preferred Stock was issued in August 2012. Series P Non-Cumulative Preferred Stock was issued in February 2013; Series Q Fixed-to-Floating Non-Cumulative Preferred Stock was issued in April 2013; and Series R Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series R was issued in July 2013.
On September 1, 2013, the Firm redeemed all of the outstanding shares of its 8.625% Non-Cumulative Preferred Stock, Series J at their stated redemption value.
Redemption rights
Each series of the Firm’s preferred stock may be redeemed on any dividend payment date on or after the earliest redemption date for that series. The Series O, Series P, Series Q and Series R preferred stock may also be redeemed following a capital treatment event, as described in the terms of that series. Any redemption of the Firm’s preferred stock is subject to non-objection from the Federal Reserve.
Subsequent events
Issuance of preferred stock
On January 22, 2014, January 30, 2014, and February 6, 2014, the Firm issued $2.0 billion , $850 million, and $75 million, respectively, of noncumulative preferred stock.
