01—Abstract
Summary
Summary of the 8-K filed July 24, 2024. Cited figures are marked; the original filing is the authoritative source.
JPMorgan Chase & Co. (NYSE: JPM) filed an 8-K on July 24, 2024 to disclose that it will redeem all 225,000 outstanding shares of its Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series FF, on August 1, 2024.
These shares are represented by 2,250,000 depositary shares (CUSIP 48128BAF8), each representing a one-tenth interest in a preferred share. The redemption price is $10,000 per preferred share, equivalent to $1,000a per depositary share, for a total of roughly $2.25 billion. The redemption is an optional call under the terms of the securities, a routine capital management action rather than a signal of financial distress.
August 1, 2024 is also the final scheduled dividend payment date for the Series FF Preferred Stock, with a record date of July 2, 2024. Holders must surrender depositary receipts to Computershare, or follow DTC procedures for book-entry shares, to receive payment. For investors, the key points are that the preferred stock will no longer be outstanding after August 1, 2024, and that the firm is retiring a fixed-to-floating rate instrument.
The filing does not state how the redemption will be funded or whether it will be replaced with new preferred issuance. The firm reported $4.1 trillionb in assets and $341 billion in stockholders' equity as of June 30, 2024, so the redemption is small relative to its capital base.
02—Key points
Key Highlights
- JPMorgan will redeem all 2,250,000 depositary shares (225,000 preferred shares) of Series FF Preferred Stock on August 1, 2024, under the optional redemption provisions.
- The redemption price is $10,000 per preferred share, or $1,000 per depositary share, implying an aggregate payout of approximately $2.25 billion.
- August 1, 2024 is the final dividend payment date for the Series FF Preferred Stock; the record date was July 2, 2024.
- Holders must surrender depositary receipts to Computershare (or follow DTC procedures for book-entry shares) to receive the redemption payment.
- The filing is a routine capital management action; it does not describe a change in business operations, financial condition, or guidance.
- As of June 30, 2024, JPMorgan reported $4.1 trillion in total assets and $341 billion in stockholders' equity, so the redemption is modest relative to its capital base.
- The filing does not disclose the funding source or any replacement preferred issuance.
03—Questions
Frequently Asked Questions
How much is JPMorgan paying to redeem the Series FF Preferred Stock?
The redemption price is $10,000 per preferred share, or $1,000 per depositary share. With 225,000 preferred shares (2,250,000 depositary shares) outstanding, the total is about $2.25 billion.
When will the redemption take place and when is the final dividend paid?
The redemption date is August 1, 2024, which is also the final dividend payment date. The dividend record date was July 2, 2024.
What do holders need to do to receive the redemption payment?
Holders of certificated depositary receipts must surrender them to Computershare Inc., the Depositary, at 150 Royall Street, Canton, Massachusetts. Book-entry holders must surrender shares following The Depository Trust Company's procedures.
Does this redemption signal financial trouble at JPMorgan?
Not necessarily. The redemption is made under the optional redemption provisions of the securities, which is a common capital management tool. The filing contains no statements about financial distress, and the firm reported $341 billion in stockholders' equity as of June 30, 2024.
Will JPMorgan replace this preferred stock with new issuance?
The filing does not say. Investors should watch future 8-K filings, earnings materials, and capital management disclosures for any new preferred stock offerings.
04—Continue