Management’s discussion and analysis JPMorgan Chase & Co. /2009 Annual Report 124 Summary of changes in the allowance for credit losses
## Table 0 ##
(a) Related to the Washington Mutual transaction in 2008.
(b) Predominantly includes a reclassification in 2009 related to the issuance and retention of securities from the Chase Issuance Trust, as well as reclassifications of allowance balances related to business transfers between wholesale and consumer businesses in the first quarter of 2008.
(c) Relates to risk-rated loans that have been placed on nonaccrual status and loans that have been modified in a troubled debt restructuring.
(d) The asset-specific consumer allowance for loan losses includes troubled debt restructuring reserves of $754 million and $258 million at December 31, 2009 and 2008, respectively.
Prior period amounts have been reclassified to conform to the current presentation.
(e) Charge-offs are not recorded on purchased credit-impaired loans until actual losses exceed estimated losses that were recorded as purchase accounting adjustments at the time of acquisition.
(f) Excludes the impact of purchased credit-impaired loans that were acquired as part of the Washington Mutual transaction and loans held by the Washington Mutual Master Trust, which were consolidated onto the Firm’s balance sheet at fair value during the second quarter of 2009.
As of December 31, 2009, an allowance for loan losses of $1.6 billion was recorded for the purchased credit-impaired loans, which has also been excluded from applicable ratios.
No allowance was recorded for the loans that were consolidated from the Washington Mutual Master Trust as of December 31, 2009.
To date, no charge-offs have been recorded for any of these loans.
The following table includes a credit ratio excluding the following items: home lending purchased credit-impaired loans acquired in the Washington Mutual transaction; and credit card loans held by the Washington Mutual Master Trust, which were consolidated onto the Firm’s balance sheet at fair value during the second quarter of 2009.
The purchased credit-impaired loans were accounted for at fair value on the acquisition date, which incorporated management’s estimate, as of that date, of credit losses over the remaining life of the portfo lio.
Accordingly, no allowance for loan losses was recorded for these loans as of the acquisition date.
Subsequent evaluations of estimated credit deterioration in this portfolio resulted in the recording of an allowance for loan losses of $1.6 billion at December 31, 2009.
For more information on home lending purchased credit-impaired loans, see pages 117 and 121 of this Annual Report.
For more information on the consolidation of assets from the Washington Mutual Master Trust, see Note 15 on pages 206–213 of this Annual Report.
Management’s discussion and analysis JPMorgan Chase & Co. /2009 Annual Report 130 The following histogram illustrates the daily market risk–related gains and losses for IB and Consumer/CIO positions for 2009.
The chart shows that the Firm posted market risk–related gains on 227 out of 261 days in this period, with 69 days exceeding $160 million.
The inset graph looks at those days on which the Firm experienced losses and depicts the amount by which the 95% confidence level VaR exceeded the actual loss on each of those days.
Losses were sustained on 34 days during 2009 and exceeded the VaR measure on one day due to high market volatility in the first quarter of 2009.
Under the 95% confidence interval, the Firm would expect to incur daily losses greater than that predicted by VaR estimates about twelve times a year.
## Table 1 ##
The following table provides information about the gross sensitivity of DVA to a one-basis-point increase in JPMorgan Chase’s credit spreads.
This sensitivity represents the impact from a one-basis-point parallel shift in JPMorgan Chase’s entire credit curve.
As credit curves do not typically move in a parallel fashion, the sensitivity multiplied by the change in spreads at a single maturity point may not be representative of the actual revenue recognized.
Debit valuation adjustment sensitivity
Loss advisories and drawdowns Loss advisories and drawdowns are tools used to highlight to senior management trading losses above certain levels and initiate discussion of remedies.
Economic value stress testing While VaR reflects the risk of loss due to adverse changes in normal markets, stress testing captures the Firm’s exposure to unlikely but plausible events in abnormal markets.
The Firm conducts economicvalue stress tests using multiple scenarios that assume credit spreads widen significantly, equity prices decline and significant changes in interest rates across the major currencies.
Other scenarios focus on the risks predominant in individual business segments and include scenarios that focus on the potential for adverse movements in complex portfolios.
Scenarios were updated more frequently in 2009 and, in some cases, redefined to reflect the significant market volatility which began in late 2008.
Along with VaR, stress testing is important in measuring and controlling risk.
Stress testing enhances the understanding of the Firm’s risk profile and loss potential, and stress losses are monitored against limits.
Stress testing is also utilized in one-off approvals and cross-business risk measurement, as well as an input to economic capital allocation.
Stress-test results, trends and explanations based on current market risk positions are reported to the Firm’s senior management and to the lines of business to help them better measure and manage risks and to understand event risk–sensitive positions.
Notes to consolidated financial statements 216 JPMorgan Chase & Co. /2017 Annual Report Consumer, excluding credit card, loan portfolio Consumer loans, excluding credit card loans, consist primarily of residential mortgages, home equity loans and lines of credit, auto loans, consumer and business banking loans and student loans, with a focus on serving the prime consumer credit market.
The portfolio also includes home equity loans secured by junior liens, prime mortgage loans with an interest-only payment period, and certain paymentoption loans that may result in negative amortization.
The table below provides information about retained consumer loans, excluding credit card, by class.
In 2017, the Firm sold its student loan portfolio.
## Table 2 ##
(a) Certain loan portfolios have been reclassified.
The prior period amounts have been revised to conform with the current period presentation.
Delinquency rates are a primary credit quality indicator for consumer loans.
Loans that are more than 30 days past due provide an early warning of borrowers who may be experiencing financial difficulties and/or who may be unable or unwilling to repay the loan.
As the loan continues to age, it becomes more clear whether the borrower is likely either unable or unwilling to pay.
In the case of residential real estate loans, late-stage delinquencies (greater than 150 days past due) are a strong indicator of loans that will ultimately result in a foreclosure or similar liquidation transaction.
In addition to delinquency rates, other credit quality indicators for consumer loans vary based on the class of loan, as follows: ?
For residential real estate loans, including both non-PCI and PCI portfolios, the current estimated LTV ratio, or the combined LTV ratio in the case of junior lien loans, is an indicator of the potential loss severity in the event of default.
Additionally, LTV or combined LTV ratios can provide insight into a borrower’s continued willingness to pay, as the delinquency rate of high-LTV loans tends to be greater than that for loans where the borrower has equity in the collateral.
The geographic distribution of the loan collateral also provides insight as to the credit quality of the portfolio, as factors such as the regional economy, home price changes and specific events such as natural disasters, will affect credit quality.
The borrower’s current or “refreshed” FICO score is a secondary credit-quality indicator for certain loans, as FICO scores are an indication of the borrower’s credit payment history.
Thus, a loan to a borrower with a low FICO score (less than 660 ) is considered to be of higher risk than a loan to a borrower with a higher FICO score.
Further, a loan to a borrower with a high LTV ratio and a low FICO score is at greater risk of default than a loan to a borrower that has both a high LTV ratio and a high FICO score.  ?
For scored auto and scored business banking loans, geographic distribution is an indicator of the credit performance of the portfolio.
Similar to residential real estate loans, geographic distribution provides insights into the portfolio performance based on regional economic activity and events.  ?
Risk-rated business banking and auto loans are similar to wholesale loans in that the primary credit quality indicators are the risk rating that is assigned to the loan and whether the loans are considered to be criticized and/or nonaccrual.
Risk ratings are reviewed on a regular and ongoing basis by Credit Risk Management and are adjusted as necessary for updated information about borrowers’ ability to fulfill their obligations.
For further information about risk-rated wholesale loan credit quality indicators, see page 228 of this Note.

<table><tr><td>Year ended December 31,</td><td colspan="3">2009</td><td colspan="3">2008</td></tr><tr><td>(in millions)</td><td>Wholesale</td><td>Consumer</td><td>Total</td><td>Wholesale</td><td>Consumer</td><td>Total</td></tr><tr><td> Allowance for loan losses:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Beginning balance at January 1,</td><td>$6,545</td><td>$16,619</td><td>$23,164</td><td>$3,154</td><td>$6,080</td><td>$9,234</td></tr><tr><td>Gross charge-offs</td><td>3,226</td><td>20,792</td><td>24,018</td><td>521</td><td>10,243</td><td>10,764</td></tr><tr><td>Gross (recoveries)</td><td>-94</td><td>-959</td><td>-1,053</td><td>-119</td><td>-810</td><td>-929</td></tr><tr><td> Net charge-offs</td><td>3,132</td><td>19,833</td><td>22,965</td><td>402</td><td>9,433</td><td>9,835</td></tr><tr><td>Provision for loan losses:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Provision excluding accounting conformity</td><td>3,684</td><td>28,051</td><td>31,735</td><td>2,895</td><td>16,765</td><td>19,660</td></tr><tr><td>Accounting conformity<sup>(a)</sup></td><td>—</td><td>—</td><td>—</td><td>641</td><td>936</td><td>1,577</td></tr><tr><td> Total provision for loan losses</td><td>3,684</td><td>28,051</td><td>31,735</td><td>3,536</td><td>17,701</td><td>21,237</td></tr><tr><td>Acquired allowance resulting from Washington Mutual transaction</td><td>—</td><td>—</td><td>—</td><td>229</td><td>2,306</td><td>2,535</td></tr><tr><td>Other<sup>(b)</sup></td><td>48</td><td>-380</td><td>-332</td><td>28</td><td>-35</td><td>-7</td></tr><tr><td> Ending balance at December 31</td><td>$7,145</td><td>$24,457</td><td>$31,602</td><td>$6,545</td><td>$16,619</td><td>$23,164</td></tr><tr><td>Components:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Asset-specific<sup>(c)(d)</sup></td><td>$2,046</td><td>$996</td><td>$3,042</td><td>$712</td><td>$379</td><td>$1,091</td></tr><tr><td>Formula-based</td><td>5,099</td><td>21,880</td><td>26,979</td><td>5,833</td><td>16,240</td><td>22,073</td></tr><tr><td>Purchased credit-impaired</td><td>—</td><td>1,581</td><td>1,581</td><td>—</td><td>—</td><td>—</td></tr><tr><td> Total allowance for loan losses</td><td>$7,145</td><td>$24,457</td><td>$31,602</td><td>$6,545</td><td>$16,619</td><td>$23,164</td></tr><tr><td> Allowance for lending-related commitments:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Beginning balance at January 1,</td><td>$634</td><td>$25</td><td>$659</td><td>$835</td><td>$15</td><td>$850</td></tr><tr><td>Provision for lending-related commitments</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Provision excluding accounting conformity</td><td>290</td><td>-10</td><td>280</td><td>-214</td><td>-1</td><td>-215</td></tr><tr><td>Accounting conformity<sup>(a)</sup></td><td>—</td><td>—</td><td>—</td><td>5</td><td>-48</td><td>-43</td></tr><tr><td> Total provision for lending-related commitments</td><td>290</td><td>-10</td><td>280</td><td>-209</td><td>-49</td><td>-258</td></tr><tr><td>Acquired allowance resulting from Washington Mutual transaction</td><td>—</td><td>—</td><td>—</td><td>—</td><td>66</td><td>66</td></tr><tr><td>Other<sup>(b)</sup></td><td>3</td><td>-3</td><td>—</td><td>8</td><td>-7</td><td>1</td></tr><tr><td> Ending balance at December 31</td><td>$927</td><td>$12</td><td>$939</td><td>$634</td><td>$25</td><td>$659</td></tr><tr><td>Components:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Asset-specific</td><td>$297</td><td>$—</td><td>$297</td><td>$29</td><td>$—</td><td>$29</td></tr><tr><td>Formula-based</td><td>630</td><td>12</td><td>642</td><td>605</td><td>25</td><td>630</td></tr><tr><td> Total allowance for lending-related commitments</td><td>$927</td><td>$12</td><td>$939</td><td>$634</td><td>$25</td><td>$659</td></tr><tr><td> Total allowance for credit losses</td><td>$8,072</td><td>$24,469</td><td>$32,541</td><td>$7,179</td><td>$16,644</td><td>$23,823</td></tr><tr><td> Credit ratios:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Allowance for loan losses to retained loans</td><td>3.57%</td><td>5.73%</td><td>5.04%</td><td>2.64%</td><td>3.46%</td><td>3.18%</td></tr><tr><td>Net charge-off rates<sup>(e)</sup></td><td>1.40</td><td>4.41</td><td>3.42</td><td>0.18</td><td>2.71</td><td>1.73</td></tr><tr><td> Credit ratios excluding home lending purchased credit-impairedloans and loans held by the Washington Mutual Master Trust</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Allowance for loan losses to retained loans<sup>(f)</sup></td><td>3.57</td><td>6.63</td><td>5.51</td><td>2.64</td><td>4.24</td><td>3.62</td></tr></table>
<table><tr><td>(in millions)</td><td>1 Basis Point Increase in JPMorgan Chase Credit Spread</td></tr><tr><td>December 31, 2009</td><td>$39</td></tr><tr><td>December 31, 2008</td><td>$37</td></tr></table>
<table><tr><td>December 31, (in millions)</td><td>2017</td><td>2016</td></tr><tr><td>Residential real estate – excluding PCI</td><td></td><td></td></tr><tr><td>Residential mortgage<sup>(a)</sup></td><td>$216,496</td><td>$192,486</td></tr><tr><td>Home equity</td><td>33,450</td><td>39,063</td></tr><tr><td>Other consumer loans</td><td></td><td></td></tr><tr><td>Auto</td><td>66,242</td><td>65,814</td></tr><tr><td>Consumer & Business Banking<sup>(a)</sup></td><td>25,789</td><td>24,307</td></tr><tr><td>Student<sup>(a)</sup></td><td>—</td><td>7,057</td></tr><tr><td>Residential real estate – PCI</td><td></td><td></td></tr><tr><td>Home equity</td><td>10,799</td><td>12,902</td></tr><tr><td>Prime mortgage</td><td>6,479</td><td>7,602</td></tr><tr><td>Subprime mortgage</td><td>2,609</td><td>2,941</td></tr><tr><td>Option ARMs</td><td>10,689</td><td>12,234</td></tr><tr><td>Total retained loans</td><td>$372,553</td><td>$364,406</td></tr></table>

Question: What is the growing rate of Net charge-offs in the years with the least Total provision for loan losses?