LOANS AND LEASES

A summary of the loans and leases portfolio follows:



(in millions)	June 30, 2015		December 31, 2014
Commercial		$33,027		$31,431
Commercial real estate	8,157		7,809
Leases	3,884		3,986
Total commercial	45,068		43,226
Residential mortgages	12,253		11,832
Home equity loans	3,022		3,424
Home equity lines of credit	14,917		15,423
Home equity loans serviced by others ⁽¹⁾	1,126		1,228
Home equity lines of credit serviced by others ⁽¹⁾	494		550
Automobile	13,727		12,706
Student	3,355		2,256
Credit cards	1,613		1,693
Other retail	963		1,072
Total retail	51,470		50,184
Total loans and leases ^{(2) (3)}		$96,538		$93,410

⁽¹⁾ The Company’s SBO portfolio consists of purchased home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally.

⁽²⁾ Excluded from the table above are loans held for sale totaling $697 million as of June 30, 2015 and $281 million as of December 31, 2014.

⁽³⁾Mortgage loans serviced for others by the Company’s subsidiaries are not included above, and amounted to $17.8 billion and $17.9 billion at June 30, 2015 and December 31, 2014, respectively.

Loans held for sale at fair value totaled $397 million and $256 million at June 30, 2015 and December 31, 2014, respectively, and consisted of residential mortgages originated for sale of $318 million and the commercial trading portfolio of $79 million as of June 30, 2015. As of December 31, 2014, residential mortgages originated for sale were $213 million, and commercial trading portfolio totaled $43 million. Other loans held for sale totaled $300 million as of June 30, 2015 and consisted of $260 million of commercial loan syndications and a $40 million credit card portfolio. Other loans held for sale totaled $25 million as of December 31, 2014 and consisted of commercial loan syndications.

In March 2015, the Company transferred $41 million to loans held for sale associated with a terminated agent credit card services agreement consisting of $43 million of outstanding credit card balances and a $2 million valuation allowance. The terms of the agreement provided the agent an option, after a designated period of time, to purchase the credit card relationships covered under the agreement from Citizens or cause another financial institution to purchase the interests in these credit card relationships. The transaction is expected to close in August 2015.

Loans pledged as collateral for FHLB borrowed funds totaled $22.3 billion and $22.0 billion at June 30, 2015 and December 31, 2014, respectively. This collateral consists primarily of residential mortgages and home equity loans. Loans pledged as collateral to support the contingent ability to borrow at the FRB discount window, if necessary, totaled $12.9 billion and $11.8 billion at June 30, 2015 and December 31, 2014, respectively.

During the six months ended June 30, 2015, the Company purchased a portfolio of residential mortgages with an outstanding principal balance of $636 million, a portfolio of automobile loans with an outstanding principal balance of $809 million, and a portfolio of student loans with an outstanding principal balance of $463 million. During the six months ended June 30, 2014, the Company purchased a portfolio of residential loans with an outstanding principal balance of $878 million, a portfolio of auto loans with an outstanding principal balance of $759 million and a portfolio of student loans with an outstanding principal balance of $59 million.

During the six months ended June 30, 2015, the Company sold a portfolio of residential mortgages with an outstanding principal balance of $273 million. During the six months ended June 30, 2014, in addition to the $1.1 billion loans sold as part of the Company's sale of its Chicago-area retail branches, the Company sold portfolios of residential mortgage loans with outstanding principal balances of $126 million and student loans of $357 million as well as commercial loans with an outstanding principal balance of $132 million.