01—Abstract
Summary
Summary of the 8-K filed August 20, 2024. Cited figures are marked; the original filing is the authoritative source.
JPMorgan Chase & Co. (NYSE: JPM) announced on August 20, 2024 that it will redeem all 160,000 outstanding shares of its Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series X, on October 1, 2024.
The shares are represented by 1,600,000 depositary shares (CUSIP: 48126HAC4), each representing a one-tenth interest in a preferred share. The redemption price is $10,000 per share, equivalent to $1,000a per depositary share, for a total of roughly $1.6 billion. The redemption was made under the optional redemption provisions of the governing documents.
October 1, 2024 is also the final scheduled dividend payment date for the Series X Preferred Stock, with a record date of September 3, 2024. Holders must surrender depositary receipts to Computershare Inc., as Depositary, or follow DTC procedures for book-entry shares to receive payment. For investors, this is a routine capital management action rather than a signal of financial stress.
The filing references the Firm's $4.1 trillionb in assets and $341 billion in stockholders' equity as of June 30, 2024. Retiring preferred stock removes a fixed-rate obligation and eliminates future preferred dividends, and the Firm may be refinancing or replacing this capital, which the filing does not specify.
02—Key points
Key Highlights
- JPMorgan will redeem all 1,600,000 depositary shares (160,000 underlying preferred shares) of Series X Preferred Stock on October 1, 2024, totaling roughly $1.6 billion.
- Redemption price is $10,000 per preferred share, or $1,000 per depositary share, paid upon surrender of depositary receipts to Computershare.
- October 1, 2024 is the final dividend payment date for the Series X Preferred Stock; the dividend record date is September 3, 2024.
- The redemption is made under the optional redemption provisions of the governing documents, a standard issuer call right and not a distress event.
- The filing is a routine Item 8.01 (Other Events) disclosure with a press release attached as Exhibit 99.
- As of June 30, 2024, JPMorgan reported $4.1 trillion in total assets and $341 billion in stockholders' equity.
- The filing does not disclose whether the Firm plans to replace the Series X capital with new preferred issuance or other instruments.
03—Questions
Frequently Asked Questions
Why is JPMorgan redeeming its Series X preferred stock?
The filing states the redemption is pursuant to the optional redemption provisions in the governing documents. It does not give a specific business rationale. Issuers typically call preferred stock when it is economically advantageous to do so, such as when it can refinance at lower cost or when capital needs change.
How much will shareholders receive, and when?
Holders will receive $1,000 per depositary share ($10,000 per underlying preferred share) on October 1, 2024, upon surrender of depositary receipts to Computershare Inc. or through DTC procedures for book-entry holders.
Will investors continue to receive dividends on Series X shares?
Only through the final scheduled dividend payment on October 1, 2024, which goes to holders of record as of September 3, 2024. No dividends are payable after the redemption date.
Does this redemption affect JPMorgan's financial health?
The filing presents this as a routine capital action and makes no statement suggesting financial weakness. The redemption is about $1.6 billion, small relative to the Firm's $341 billion in stockholders' equity as of June 30, 2024.
04—Continue