LOANS

9 Months Ended

Sep. 30, 2014

Loans and Leases Receivable Disclosure [Abstract]

Citigroup loans are reported in two categories—consumer and corporate. These categories are classified primarily according to the segment and subsegment that manage the loans.

Consumer Loans

Consumer loans represent loans and leases managed primarily by the Global Consumer Banking businesses in Citicorp and in Citi Holdings. The following table provides information by loan type for the periods indicated:



In millions of dollars	September 30, 2014			December 31, 2013
Consumer loans
In U.S. offices
Mortgage and real estate⁽¹⁾	$	101,583		$	108,453
Installment, revolving credit, and other	13,350			13,398
Cards	108,314			115,651
Commercial and industrial	6,870			6,592
	$	230,117		$	244,094
In offices outside the U.S.
Mortgage and real estate⁽¹⁾	$	56,099		$	55,511
Installment, revolving credit, and other	34,270			33,182
Cards	32,410			36,740
Commercial and industrial	23,393			24,107
Lease financing	678			769
	$	146,850		$	150,309
Total Consumer loans	$	376,967		$	394,403
Net unearned income	(649		)	(572		)
Consumer loans, net of unearned income	$	376,318		$	393,831


(1)	Loans secured primarily by real estate.

Citigroup has established a risk management process to monitor, evaluate and manage the principal risks associated with its consumer loan portfolio. Credit quality indicators that are actively monitored include delinquency status, consumer credit scores (FICO), and loan to value (LTV) ratios, each as discussed in more detail below.

Included in the loan table above are lending products whose terms may give rise to greater credit issues. Credit cards with below-market introductory interest rates and interest-only loans are examples of such products. These products are closely managed using credit techniques that are intended to mitigate their higher inherent risk.

During the three and nine months ended September 30, 2014 and 2013, the Company sold and/or reclassified to held-for-sale $1.8 billion and $1.5 billion, and $5.6 billion and $11.3 billion, respectively, of consumer loans. The Company did not have significant purchases of consumer loans during the three and nine months ended September 30, 2014.

Delinquency Status

Delinquency status is monitored and considered a key indicator of credit quality of consumer loans. Substantially all of the U.S. residential first mortgage loans use the Mortgage Banking Association (MBA) method of reporting delinquencies, which considers a loan delinquent if a monthly payment has not been received by the end of the day immediately preceding the loan’s next due date. All other loans use the Office of Thrift Supervision (OTS) method of reporting delinquencies, which considers a loan delinquent if a monthly payment has not been received by the close of business on the loan’s next due date.

As a general policy, residential first mortgages, home equity loans and installment loans are classified as non-accrual when loan payments are 90 days contractually past due. Credit cards and unsecured revolving loans generally accrue interest until payments are 180 days past due. Home equity loans in regulated bank entities are classified as non-accrual if the related residential first mortgage is 90 days or more past due. Mortgage loans in regulated bank entities discharged through Chapter 7 bankruptcy, other than Federal Housing Administration (FHA)-insured loans, are classified as non-accrual. Commercial market loans are placed on a cash (nonaccrual) basis when it is determined, based on actual experience and a forward-looking assessment of the collectability of the loan in full, that the payment of interest or principal is doubtful or when interest or principal is 90 days past due.

The policy for re-aging modified U.S. consumer loans to current status varies by product. Generally, one of the conditions to qualify for these modifications is that a minimum number of payments (typically ranging from one to three) be made. Upon modification, the loan is re-aged to current status. However, re-aging practices for certain open-ended consumer loans, such as credit cards, are governed by Federal Financial Institutions Examination Council (FFIEC) guidelines. For open-ended consumer loans subject to FFIEC guidelines, one of the conditions for the loan to be re-aged to current status is that at least three consecutive minimum monthly payments, or the equivalent amount, must be received. In addition, under FFIEC guidelines, the number of times that such a loan can be re-aged is subject to limitations (generally once in 12 months and twice in five years). Furthermore, FHA and Department of Veterans Affairs (VA) loans are modified under those respective agencies’ guidelines and payments are not always required in order to re-age a modified loan to current.

The following tables provide details on Citigroup’s consumer loan delinquency and non-accrual loans as of September 30, 2014 and December 31, 2013:

Consumer Loan Delinquency and Non-Accrual Details at September 30, 2014



In millions of dollars	Total current⁽¹⁾⁽²⁾		30-89 days past due⁽³⁾		≥ 90 days past due⁽³⁾		Past due government guaranteed⁽⁴⁾		Total loans⁽²⁾		Total non-accrual		90 days past due and accruing
In North America offices
Residential first mortgages	$	64,838	$	1,585	$	1,532	$	4,049	$	72,004	$	2,912	$	3,167
Home equity loans⁽⁵⁾	28,130		344		521		—		28,995		1,285		—
Credit cards	107,015		1,295		1,189		—		109,499		—		1,189
Installment and other	12,344		229		255		—		12,828		251		4
Commercial market loans	8,518		33		14		—		8,565		91		8
Total	$	220,845	$	3,486	$	3,511	$	4,049	$	231,891	$	4,539	$	4,368
In offices outside North America
Residential first mortgages	$	45,957	$	311	$	234	$	—	$	46,502	$	489	$	—
Home equity loans⁽⁵⁾	—		—		—		—		—		—		—
Credit cards	31,147		685		575		—		32,407		445		336
Installment and other	30,988		377		166		—		31,531		240		—
Commercial market loans	33,236		103		372		—		33,711		526		—
Total	$	141,328	$	1,476	$	1,347	$	—	$	144,151	$	1,700	$	336
Total GCB and Citi Holdings	$	362,173	$	4,962	$	4,858	$	4,049	$	376,042	$	6,239	$	4,704
Other	276		—		—		—		276		33		—
Total Citigroup	$	362,449	$	4,962	$	4,858	$	4,049	$	376,318	$	6,272	$	4,704


(1)	Loans less than 30 days past due are presented as current.


(2)	Includes $45 million of residential first mortgages recorded at fair value.


(3)	Excludes loans guaranteed by U.S. government-sponsored entities.


(4)	Consists of residential first mortgages that are guaranteed by U.S. government-sponsored entities that are 30-89 days past due of $0.8 billion and 90 days past due of $3.2 billion.


(5)	Fixed rate home equity loans and loans extended under home equity lines of credit, which are typically in junior lien positions.

Consumer Loan Delinquency and Non-Accrual Details at December 31, 2013



In millions of dollars	Total current⁽¹⁾⁽²⁾		30-89 days past due⁽³⁾		≥ 90 days past due⁽³⁾		Past due government guaranteed⁽⁴⁾		Total loans⁽²⁾		Total non-accrual		90 days past due and accruing
In North America offices
Residential first mortgages	$	66,612	$	2,044	$	1,975	$	5,271	$	75,902	$	3,415	$	3,997
Home equity loans⁽⁵⁾	30,603		434		605		—		31,642		1,452		—
Credit cards	113,886		1,491		1,452		—		116,829		—		1,452
Installment and other	12,609		225		243		—		13,077		247		7
Commercial market loans	8,630		26		28		—		8,684		112		7
Total	$	232,340	$	4,220	$	4,303	$	5,271	$	246,134	$	5,226	$	5,463
In offices outside North America
Residential first mortgages	$	46,067	$	435	$	332	$	—	$	46,834	$	584	$	—
Home equity loans⁽⁵⁾	—		—		—		—		—		—		—
Credit cards	34,733		780		641		—		36,154		402		413
Installment and other	30,138		398		158		—		30,694		230		—
Commercial market loans	33,242		111		295		—		33,648		610		—
Total	$	144,180	$	1,724	$	1,426	$	—	$	147,330	$	1,826	$	413
Total GCB and Citi Holdings	$	376,520	$	5,944	$	5,729	$	5,271	$	393,464	$	7,052	$	5,876
Other	367		—		—		—		367		43		—
Total Citigroup	$	376,887	$	5,944	$	5,729	$	5,271	$	393,831	$	7,095	$	5,876


(1)	Loans less than 30 days past due are presented as current.


(2)	Includes $0.9 billion of residential first mortgages recorded at fair value.


(3)	Excludes loans guaranteed by U.S. government-sponsored entities.


(4)	Consists of residential first mortgages that are guaranteed by U.S. government-sponsored entities that are 30-89 days past due of $1.2 billion and 90 days past due of $4.1 billion.


(5)	Fixed rate home equity loans and loans extended under home equity lines of credit, which are typically in junior lien positions.

Consumer Credit Scores (FICO)

In the U.S., independent credit agencies rate an individual’s risk for assuming debt based on the individual’s credit history and assign every consumer a “FICO” (Fair Issac’s Corporation) credit score. These scores are continually updated by the agencies based upon an individual’s credit actions (e.g., taking out a loan or missed or late payments).

The following tables provide details on the FICO scores attributable to Citi’s U.S. consumer loan portfolio as of September 30, 2014 and December 31, 2013 (commercial market loans are not included in the table since they are business-based and FICO scores are not a primary driver in their credit evaluation). FICO scores are updated monthly for substantially all of the portfolio or, otherwise, on a quarterly basis, for the remaining portfolio.



FICO score distribution in U.S. portfolio⁽¹⁾⁽²⁾	September 30, 2014
In millions of dollars	Less than 620		≥ 620 but less than 660		Equal to or greater than 660
Residential first mortgages	$	9,862	$	5,861	$	47,538
Home equity loans	3,386		2,527		21,577
Credit cards	7,283		9,963		88,770
Installment and other	3,312		2,888		5,376
Total	$	23,843	$	21,239	$	163,261


(1)	Excludes loans guaranteed by U.S. government entities, loans subject to long-term standby commitments (LTSCs) with U.S. government-sponsored entities and loans recorded at fair value.


(2)	Excludes balances where FICO was not available. Such amounts are not material.



FICO score distribution in U.S. portfolio⁽¹⁾⁽²⁾	December 31, 2013
In millions of dollars	Less than 620		≥ 620 but less than 660		Equal to or greater than 660
Residential first mortgages	$	11,860	$	6,426	$	46,207
Home equity loans	4,093		2,779		23,152
Credit cards	8,125		10,693		94,437
Installment and other	3,900		2,399		5,186
Total	$	27,978	$	22,297	$	168,982


(1)	Excludes loans guaranteed by U.S. government entities, loans subject to LTSCs with U.S. government-sponsored entities and loans recorded at fair value.


(2)	Excludes balances where FICO was not available. Such amounts are not material.

Loan to Value (LTV) Ratios

LTV ratios (loan balance divided by appraised value) are calculated at origination and updated by applying market price data.

The following tables provide details on the LTV ratios attributable to Citi’s U.S. consumer mortgage portfolios as of September 30, 2014 and December 31, 2013. LTV ratios are updated monthly using the most recent Core Logic Home Price Index data available for substantially all of the portfolio applied at the Metropolitan Statistical Area level, if available, or the state level if not. The remainder of the portfolio is updated in a similar manner using the Federal Housing Finance Agency indices.



LTV distribution in U.S. portfolio⁽¹⁾⁽²⁾	September 30, 2014
In millions of dollars	Less than or equal to 80%		> 80% but less than or equal to 100%		Greater than 100%
Residential first mortgages	$	50,801	$	9,667	$	2,975
Home equity loans	15,129		7,647		4,591
Total	$	65,930	$	17,314	$	7,566


(1)	Excludes loans guaranteed by U.S. government entities, loans subject to LTSCs with U.S. government-sponsored entities and loans recorded at fair value.


(2)	Excludes balances where LTV was not available. Such amounts are not material.



LTV distribution in U.S. portfolio⁽¹⁾⁽²⁾	December 31, 2013
In millions of dollars	Less than or equal to 80%		> 80% but less than or equal to 100%		Greater than 100%
Residential first mortgages	$	45,809	$	13,458	$	5,269
Home equity loans	14,216		8,685		6,935
Total	$	60,025	$	22,143	$	12,204


(1)	Excludes loans guaranteed by U.S. government entities, loans subject to LTSCs with U.S. government-sponsored entities and loans recorded at fair value.


(2)	Excludes balances where LTV was not available. Such amounts are not material.

Impaired Consumer Loans

Impaired loans are those loans where Citigroup believes it is probable all amounts due according to the original contractual terms of the loan will not be collected. Impaired consumer loans include non-accrual commercial market loans, as well as smaller-balance homogeneous loans whose terms have been modified due to the borrower’s financial difficulties and where Citigroup has granted a concession to the borrower. These modifications may include interest rate reductions and/or principal forgiveness. Impaired consumer loans exclude smaller-balance homogeneous loans that have not been modified and are carried on a non-accrual basis. In addition, impaired consumer loans exclude substantially all loans modified pursuant to Citi’s short-term modification programs (i.e., for periods of 12 months or less) that were modified prior to January 1, 2011.

As a result of OCC guidance issued in the third quarter of 2012, mortgage loans to borrowers who have gone through Chapter 7 bankruptcy are classified as troubled debt restructurings (TDRs). These TDRs, other than FHA-insured loans, are written down to collateral value less cost to sell. FHA-insured loans are reserved based on a discounted cash flow model (see Note 1 to the Consolidated Financial Statements in Citi’s 2013 Annual Report on Form 10-K).

The following tables present information about total impaired consumer loans at and for the periods ended September 30, 2014 and December 31, 2013, respectively, and for the three and nine months ended September 30, 2014 and September 30, 2013 for interest income recognized on impaired consumer loans:



									Three months ended September 30,				Nine months ended September 30,
	Balance at September 30, 2014								2014		2013		2014		2013
In millions of dollars	Recorded investment⁽¹⁾⁽²⁾		Unpaid principal balance		Related specific allowance⁽³⁾		Average carrying value⁽⁴⁾		Interest income recognized⁽⁵⁾⁽⁶⁾		Interest income recognized⁽⁵⁾⁽⁶⁾		Interest income recognized⁽⁵⁾⁽⁶⁾		Interest income recognized⁽⁵⁾⁽⁶⁾
Mortgage and real estate
Residential first mortgages	$	15,237	$	16,148	$	2,108	$	16,202	$	167	$	179	$	532	$	604
Home equity loans	2,058		2,701		546		2,103		18		23		56		61
Credit cards	2,584		2,626		898		2,965		47		56		148		182
Installment and other
Individual installment and other	969		983		447		1,016		31		35		94		118
Commercial market loans	355		565		193		375		3		5		18		17
Total	$	21,203	$	23,023	$	4,192	$	22,661	$	266	$	298	$	848	$	982


(1)	Recorded investment in a loan includes net deferred loan fees and costs, unamortized premium or discount and direct write-downs and includes accrued interest only on credit card loans.


(2)	$1,957 million of residential first mortgages, $555 million of home equity loans and $112 million of commercial market loans do not have a specific allowance.

(3) Included in the Allowance for loan losses.

(4) Average carrying value represents the average recorded investment ending balance for the last four quarters and does not include the related specific allowance.

(5) Includes amounts recognized on both an accrual and cash basis.

(6) Cash interest receipts on smaller-balance homogeneous loans are generally recorded as revenue. The interest recognition policy for commercial market loans is identical to that for corporate loans, as described below.



	Balance at December 31, 2013
In millions of dollars	Recorded investment⁽¹⁾⁽²⁾		Unpaid principal balance		Related specific allowance⁽³⁾		Average carrying value⁽⁴⁾
Mortgage and real estate
Residential first mortgages	$	16,801	$	17,788	$	2,309	$	17,616
Home equity loans	2,141		2,806		427		2,116
Credit cards	3,339		3,385		1,178		3,720
Installment and other
Individual installment and other	1,114		1,143		536		1,094
Commercial market loans	398		605		183		404
Total	$	23,793	$	25,727	$	4,633	$	24,950


(1)	Recorded investment in a loan includes net deferred loan fees and costs, unamortized premium or discount and direct write-downs and includes accrued interest only on credit card loans.


(2)	$2,169 million of residential first mortgages, $568 million of home equity loans and $111 million of commercial market loans do not have a specific allowance.


(3)	Included in the Allowance for loan losses.


(4)	Average carrying value represents the average recorded investment ending balance for last four quarters and does not include the related specific allowance.

Consumer Troubled Debt Restructurings

The following tables present consumer TDRs occurring during the three and nine months ended September 30, 2014 and 2013:



	At and for the three months ended September 30, 2014
In millions of dollars except number of loans modified	Number of loans modified	Post- modification recorded investment⁽¹⁾⁽²⁾		Deferred principal⁽³⁾		Contingent principal forgiveness⁽⁴⁾		Principal forgiveness⁽⁵⁾		Average interest rate reduction
North America
Residential first mortgages	4,933	$	626	$	15	$	11	$	1	1	%
Home equity loans	1,900	76		1		—		2		3
Credit cards	48,775	211		—		—		—		16
Installment and other revolving	11,420	87		—		—		—		6
Commercial markets⁽⁶⁾	46	5		—		—		1		—
Total⁽⁸⁾	67,074	$	1,005	$	16	$	11	$	4
International
Residential first mortgages	841	$	30	$	—	$	—	$	—	—	%
Home equity loans	15	3		—		—		—		—
Credit cards	40,848	125		—		—		10		12
Installment and other revolving	15,053	73		—		—		4		10
Commercial markets⁽⁶⁾	51	22		—		—		—		—
Total⁽⁸⁾	56,808	$	253	$	—	$	—	$	14



	At and for the three months ended September 30, 2013
In millions of dollars except number of loans modified	Number of loans modified	Post- modification recorded investment⁽¹⁾⁽⁷⁾		Deferred principal⁽³⁾		Contingent principal forgiveness⁽⁴⁾		Principal forgiveness⁽⁵⁾		Average interest rate reduction
North America
Residential first mortgages	7,375	$	933	$	28	$	15	$	34	1	%
Home equity loans	2,962	90		—				33		1
Credit cards	43,312	207		—		—		—		14
Installment and other revolving	13,880	99		—		—		—		6
Commercial markets⁽⁶⁾	44	6		—		—		—		—
Total⁽⁸⁾	67,573	$	1,335	$	28	$	15	$	67
International
Residential first mortgages	733	$	30	$	—	$	—	$	1	1	%
Home equity loans	44	1		—		—		—		1
Credit cards	43,660	138		—		—		7		12
Installment and other revolving	15,620	81		—		—		3		8
Commercial markets⁽⁶⁾	88	30		1		—		—		—
Total⁽⁸⁾	60,145	$	280	$	1	$	—	$	11


(1)	Post-modification balances include past due amounts that are capitalized at the modification date.

(2)

Post-modification balances in North America include $74 million of residential first mortgages and $22 million of home equity loans to borrowers who have gone through Chapter 7 bankruptcy in the three months ended September 30, 2014. These amounts include $45 million of residential first mortgages and $19 million of home equity loans that are newly classified as TDRs in the three months ended September 30, 2014 as a result of OCC guidance, as described above.


(3)	Represents portion of contractual loan principal that is non-interest bearing but still due from the borrower. Such deferred principal is charged off at the time of permanent modification to the extent that the related loan balance exceeds the underlying collateral value.


(4)	Represents portion of contractual loan principal that is non-interest bearing and, depending upon borrower performance, eligible for forgiveness.


(5)	Represents portion of contractual loan principal that was forgiven at the time of permanent modification.

(6) Commercial markets loans are generally borrower-specific modifications and incorporate changes in the amount and/or timing of principal and/or interest.

(7) Post-modification balances in North America include $138 million of residential first mortgages and $30 million of home equity loans to borrowers who have gone through Chapter 7 bankruptcy in the three months ended September 30, 2013. These amounts include $87 million of residential first mortgages and $24 million of home equity loans that are newly classified as TDRs in the three months ended September 30, 2013 as a result of OCC guidance, as described above.

(8) The above tables reflect activity for loans outstanding as of the end of the reporting period that were considered TDRs.



	At and for the nine months ended September 30, 2014
In millions of dollars except number of loans modified	Number of loans modified	Post- modification recorded investment⁽¹⁾⁽²⁾		Deferred principal⁽³⁾		Contingent principal forgiveness⁽⁴⁾		Principal forgiveness⁽⁵⁾		Average interest rate reduction
North America
Residential first mortgages	15,435	$	1,866	$	43	$	30	$	7	1	%
Home equity loans	6,102	228		3		—		13		2
Credit cards	136,501	601		—		—		—		15
Installment and other revolving	36,086	269		—		—		—		6
Commercial markets⁽⁶⁾	137	27		—		—		1		—
Total⁽⁸⁾	194,261	$	2,991	$	46	$	30	$	21
International
Residential first mortgages	2,127	$	79	$	—	$	—	$	1	1	%
Home equity loans	53	9		—		—		—		—
Credit cards	109,079	357		—		—		28		13
Installment and other revolving	44,095	216		—		—		11		10
Commercial markets⁽⁶⁾	271	156		—		—		—
Total⁽⁸⁾	155,625	$	817	$	—	$	—	$	40



	At and for the nine months ended September 30, 2013
In millions of dollars except number of loans modified	Number of loans modified	Post- modification recorded investment⁽¹⁾⁽²⁾		Deferred principal⁽³⁾		Contingent principal forgiveness⁽⁴⁾		Principal forgiveness⁽⁵⁾		Average interest rate reduction
North America
Residential first mortgages	25,757	$	3,387	$	45	$	17	$	136	1	%
Home equity loans	10,319	460		1		—		71		1
Credit cards	123,073	613		—		—		—		14
Installment and other revolving	39,822	284		—		—		—		7
Commercial markets⁽⁶⁾	166	25		—		—		—		—
Total⁽⁸⁾	199,137	$	4,769	$	46	$	17	$	207
International
Residential first mortgages	2,914	$	135	$	—	$	—	$	2	1	%
Home equity loans	48	1		—		—		—		—
Credit cards	105,850	394		—		—		13		14
Installment and other revolving	43,106	260		—		—		7		8
Commercial markets⁽⁶⁾	296	76		2		—		—		—
Total⁽⁸⁾	152,214	$	866	$	2	$	—	$	22


(1)	Post-modification balances include past due amounts that are capitalized at modification date.

(2)

Post-modification balances in North America include $240 million of residential first mortgages and $65 million of home equity loans to borrowers who have gone through Chapter 7 bankruptcy in the nine months ended September 30, 2014. These amounts include $144 million of residential first mortgages and $56 million of home equity loans that are newly classified as TDRs as a result of OCC guidance received in the nine months ended September 30, 2014, as described above.


(3)	Represents portion of contractual loan principal that is non-interest bearing but still due from the borrower. Such deferred principal is charged off at the time of permanent modification to the extent that the related loan balance exceeds the underlying collateral value.


(4)	Represents portion of contractual loan principal that is non-interest bearing and, depending upon borrower performance, eligible for forgiveness.


(5)	Represents portion of contractual loan principal that was forgiven at the time of permanent modification.

(6) Commercial markets loans are generally borrower-specific modifications and incorporate changes in the amount and/or timing of principal and/or interest.

(7) Post-modification balances in North America include $387 million of residential first mortgages and $75 million of home equity loans to borrowers who have gone through Chapter 7 bankruptcy in the nine months ended September 30, 2013. These amounts include $265 million of residential first mortgages and $62 million of home equity loans that are newly classified as TDRs as a result of OCC guidance received in the nine months ended September 30, 2013, as described above.

(8) The above tables reflect activity for loans outstanding as of the end of the reporting period that were considered TDRs.

The following table presents consumer TDRs that defaulted during the three months and nine months ended September 30, 2014 and 2013, for which the payment default occurred within one year of a permanent modification. Default is defined as 60 days past due, except for classifiably managed commercial markets loans, where default is defined as 90 days past due.



	Three Months Ended September 30,				Nine Months Ended September 30,
In millions of dollars	2014		2013		2014		2013
North America
Residential first mortgages	$	149	$	440	$	562	$	1,221
Home equity loans	16		52		55		155
Credit cards	47		41		146		155
Installment and other revolving	26		22		68		67
Commercial markets	1		1		8		3
Total	$	239	$	556	$	839	$	1,601
International
Residential first mortgages	$	6	$	11	$	16	$	43
Home equity loans	—		—		—		—
Credit cards	53		44		175		146
Installment and other revolving	24		22		79		78
Commercial markets	2		5		102		9
Total	$	85	$	82	$	372	$	276

Corporate Loans

Corporate loans represent loans and leases managed by the Institutional Clients Group in Citicorp or, to a much lesser extent, in Citi Holdings. The following table presents information by corporate loan type as of September 30, 2014 and December 31, 2013:



In millions of dollars	September 30, 2014			December 31, 2013
Corporate
In U.S. offices
Commercial and industrial	$	36,516		$	32,704
Financial institutions	31,916			25,102
Mortgage and real estate⁽¹⁾	32,285			29,425
Installment, revolving credit and other	30,378			34,434
Lease financing	1,737			1,647
	$	132,832		$	123,312
In offices outside the U.S.
Commercial and industrial	$	80,304		$	82,663
Financial institutions	35,854			38,372
Mortgage and real estate⁽¹⁾	6,243			6,274
Installment, revolving credit and other	20,151			18,714
Lease financing	396			527
Governments and official institutions	2,264			2,341
	$	145,212		$	148,891
Total Corporate loans	$	278,044		$	272,203
Net unearned income	(536		)	(562		)
Corporate loans, net of unearned income	$	277,508		$	271,641


(1)	Loans secured primarily by real estate.

The Company sold and/or reclassified (to held-for-sale) $1.7 billion and $4.2 billion of corporate loans during the three and nine months ended September 30, 2014, respectively, and $1.8 billion and $4.0 billion during the three and nine months ended September 30, 2013, respectively. The Company did not have significant purchases of corporate loans classified as held-for-investment for the three and nine months ended September 30, 2014 or 2013.

Corporate loans are identified as impaired and placed on a cash (non-accrual) basis when it is determined, based on actual experience and a forward-looking assessment of the collectability of the loan in full, that the payment of interest or principal is doubtful or when interest or principal is 90 days past due, except when the loan is well collateralized and in the process of collection. Any interest accrued on impaired corporate loans and leases is reversed at 90 days and charged against current earnings, and interest is thereafter included in earnings only to the extent actually received in cash. When there is doubt regarding the ultimate collectability of principal, all cash receipts are thereafter applied to reduce the recorded investment in the loan. While corporate loans are generally managed based on their internally assigned risk rating (see further discussion below), the following tables present delinquency information by corporate loan type as of September 30, 2014 and December 31, 2013.

Corporate Loan Delinquency and Non-Accrual Details at September 30, 2014



In millions of dollars	30-89 days past due and accruing⁽¹⁾		≥ 90 days past due and accruing⁽¹⁾		Total past due and accruing		Total non-accrual⁽²⁾		Total current⁽³⁾		Total loans ⁽⁴⁾
Commercial and industrial	$	212	$	1	$	213	$	733	$	113,211	$	114,157
Financial institutions	5		—		5		266		66,226		66,497
Mortgage and real estate	100		94		194		237		37,935		38,366
Leases	4		—		4		49		2,080		2,133
Other	57		2		59		65		51,865		51,989
Loans at fair value											4,366
Total	$	378	$	97	$	475	$	1,350	$	271,317	$	277,508


(1)	Corporate loans that are 90 days past due are generally classified as non-accrual. Corporate loans are considered past due when principal or interest is contractually due but unpaid.


(2)	Citi generally does not manage corporate loans on a delinquency basis. Non-accrual loans generally include those loans that are ≥ 90 days past due or those loans for which Citi believes, based on actual experience and a forward-looking assessment of the collectability of the loan in full, that the payment of interest or principal is doubtful.


(3)	Corporate loans are past due when principal or interest is contractually due but unpaid. Loans less than 30 days past due are presented as current.


(4)	Total loans include loans at fair value, which are not included in the various delinquency columns.

Corporate Loan Delinquency and Non-Accrual Details at December 31, 2013



In millions of dollars	30-89 days past due and accruing⁽¹⁾		≥ 90 days past due and accruing⁽¹⁾		Total past due and accruing		Total non-accrual⁽²⁾		Total current⁽³⁾		Total loans ⁽⁴⁾
Commercial and industrial	$	72	$	5	$	77	$	769	$	112,985	$	113,831
Financial institutions	—		—		—		365		61,704		62,069
Mortgage and real estate	183		175		358		515		34,027		34,900
Leases	9		1		10		189		1,975		2,174
Other	47		2		49		70		54,476		54,595
Loans at fair value											4,072
Total	$	311	$	183	$	494	$	1,908	$	265,167	$	271,641


(1)	Corporate loans that are 90 days past due are generally classified as non-accrual. Corporate loans are considered past due when principal or interest is contractually due but unpaid.


(2)	Citi generally does not manage corporate loans on a delinquency basis. Non-accrual loans generally include those loans that are ≥ 90 days past due or those loans for which Citi believes, based on actual experience and a forward-looking assessment of the collectability of the loan in full, that the payment of interest or principal is doubtful.


(3)	Corporate loans are past due when principal or interest is contractually due but unpaid. Loans less than 30 days past due are presented as current.


(4)	Total loans include loans at fair value, which are not included in the various delinquency columns.

Citigroup has a risk management process to monitor, evaluate and manage the principal risks associated with its corporate loan portfolio. As part of its risk management process, Citi assigns numeric risk ratings to its corporate loan facilities based on quantitative and qualitative assessments of the obligor and facility. These risk ratings are reviewed at least annually or more often if material events related to the obligor or facility warrant. Factors considered in assigning the risk ratings include: financial condition of the obligor, qualitative assessment of management and strategy, amount and sources of repayment, amount and type of collateral and guarantee arrangements, amount and type of any contingencies associated with the obligor, and the obligor’s industry and geography.

The obligor risk ratings are defined by ranges of default probabilities. The facility risk ratings are defined by ranges of loss norms, which are the product of the probability of default and the loss given default. The investment grade rating categories are similar to the category BBB-/Baa3 and above as defined by S&P and Moody’s. Loans classified according to the bank regulatory definitions as special mention, substandard and doubtful will have risk ratings within the non-investment grade categories.

Corporate Loans Credit Quality Indicators at September 30, 2014 and December 31, 2013



	Recorded investment in loans⁽¹⁾
In millions of dollars	September 30, 2014		December 31, 2013
Investment grade⁽²⁾
Commercial and industrial	$	82,143	$	79,360
Financial institutions	53,338		49,699
Mortgage and real estate	16,015		13,178
Leases	1,615		1,600
Other	48,108		51,370
Total investment grade	$	201,219	$	195,207
Non-investment grade⁽²⁾
Accrual
Commercial and industrial	$	31,282	$	33,702
Financial institutions	12,892		12,005
Mortgage and real estate	3,940		4,205
Leases	469		385
Other	3,816		3,155
Non-accrual
Commercial and industrial	733		769
Financial institutions	266		365
Mortgage and real estate	237		515
Leases	49		189
Other	65		70
Total non-investment grade	$	53,749	$	55,360
Private Banking loans managed on a delinquency basis ⁽²⁾	$	18,174	$	17,002
Loans at fair value	4,366		4,072
Corporate loans, net of unearned income	$	277,508	$	271,641


(1)	Recorded investment in a loan includes net deferred loan fees and costs, unamortized premium or discount, less any direct write-downs.


(2)	Held-for-investment loans are accounted for on an amortized cost basis.

Corporate loans and leases identified as impaired and placed on non-accrual status are written down to the extent that principal is judged to be uncollectible. Impaired collateral-dependent loans and leases, where repayment is expected to be provided solely by the sale of the underlying collateral and there are no other available and reliable sources of repayment, are written down to the lower of cost or collateral value, less cost to sell. Cash-basis loans are returned to an accrual status when all contractual principal and interest amounts are reasonably assured of repayment and there is a sustained period of repayment performance, generally six months, in accordance with the contractual terms of the loan.

The following tables present non-accrual loan information by corporate loan type at September 30, 2014 and December 31, 2013 and interest income recognized on non-accrual corporate loans for the three- and nine-month periods ended September 30, 2014 and 2013, respectively:

Non-Accrual Corporate Loans



									Three Months Ended September 30, 2014		Nine Months Ended September 30, 2014
	September 30, 2014
In millions of dollars	Recorded investment⁽¹⁾		Unpaid principal balance		Related specific allowance		Average carrying value⁽²⁾		Interest income recognized⁽³⁾		Interest income recognized⁽³⁾
Non-accrual Corporate loans
Commercial and industrial	$	733	$	1,059	$	197	$	707	$	10	$	24
Financial institutions	266		277		4		306		—		4
Mortgage and real estate	237		276		17		329		—		7
Lease financing	49		50		29		119		—		—
Other	65		194		19		64		4		4
Total non-accrual Corporate loans	$	1,350	$	1,856	$	266	$	1,525	$	14	$	39



	Balance at December 31, 2013
In millions of dollars	Recorded investment⁽¹⁾		Unpaid principal balance		Related specific allowance		Average carrying value⁽²⁾
Non-accrual Corporate loans
Commercial and industrial	$	769	$	1,074	$	79	$	967
Financial institutions	365		382		3		378
Mortgage and real estate	515		651		35		585
Lease financing	189		190		131		189
Other	70		216		20		64
Total non-accrual Corporate loans	$	1,908	$	2,513	$	268	$	2,183



	September 30, 2014				December 31, 2013
In millions of dollars	Recorded investment⁽¹⁾		Related specific allowance		Recorded investment⁽¹⁾		Related specific allowance
Non-accrual Corporate loans with valuation allowances
Commercial and industrial	$	266	$	197	$	401	$	79
Financial institutions	17		4		24		3
Mortgage and real estate	42		17		253		35
Lease financing	47		29		186		131
Other	63		19		61		20
Total non-accrual Corporate loans with specific allowance	$	435	$	266	$	925	$	268
Non-accrual Corporate loans without specific allowance
Commercial and industrial	$	466			$	368
Financial institutions	249				341
Mortgage and real estate	196				262
Lease financing	2				3
Other	1				9
Total non-accrual Corporate loans without specific allowance	$	914	N/A		$	983	N/A


(1)	Recorded investment in a loan includes net deferred loan fees and costs, unamortized premium or discount, less any direct write-downs.


(2)	Average carrying value represents the average recorded investment balance and does not include related specific allowance.


(3)	Interest income recognized for the three- and nine-month periods ended September 30, 2013 was $6 million and $24 million, respectively.

N/A Not Applicable

Corporate Troubled Debt Restructurings

The following table presents corporate TDR activity at and for the three months ended September 30, 2014.



In millions of dollars	Carrying Value		TDRs involving changes in the amount and/or timing of principal payments⁽¹⁾		TDRs involving changes in the amount and/or timing of interest payments⁽²⁾		TDRs involving changes in the amount and/or timing of both principal and interest payments
Commercial and industrial	$	1	$	—	$	—	$	1
Financial institutions	—		—		—		—
Mortgage and real estate	3		1		—		2
Other	—		—		—		—
Total	$	4	$	1	$	—	$	3

(1)

TDRs involving changes in the amount or timing of principal payments may involve principal forgiveness or deferral of periodic and/or final principal payments. Because forgiveness of principal is rare for commercial loans, modifications typically have little to no impact on the loans’ projected cash flows and thus little to no impact on the allowance established for the loan. Charge-offs for amounts deemed uncollectable may be recorded at the time of the restructuring or may have already been recorded in prior periods such that no charge-off is required at the time of the modification.


(2)	TDRs involving changes in the amount or timing of interest payments may involve a below-market interest rate.

The following table presents corporate TDR activity at and for the three months ended September 30, 2013.



In millions of dollars	Carrying Value		TDRs involving changes in the amount and/or timing of principal payments⁽¹⁾		TDRs involving changes in the amount and/or timing of interest payments⁽²⁾		TDRs involving changes in the amount and/or timing of both principal and interest payments
Commercial and industrial	$	11	$	—	$	—	$	11
Financial institutions	—		—		—		—
Mortgage and real estate	1		—		—		1
Other	1		—		—		1
Total	$	13	$	—	$	—	$	13

(1)


(2)	TDRs involving changes in the amount or timing of interest payments may involve a below-market interest rate.

The following table presents corporate TDR activity at and for the nine months ended September 30, 2014.



In millions of dollars	Carrying Value		TDRs involving changes in the amount and/or timing of principal payments⁽¹⁾		TDRs involving changes in the amount and/or timing of interest payments⁽²⁾		TDRs involving changes in the amount and/or timing of both principal and interest payments
Commercial and industrial	$	48	$	30	$	17	$	1
Financial institutions	—		—		—		—
Mortgage and real estate	8		5		1		2
Other	—		—		—		—
Total	$	56	$	35	$	18	$	3

(1)


(2)	TDRs involving changes in the amount or timing of interest payments may involve a below-market interest rate.

The following table presents corporate TDR activity at and for the nine months ended September 30, 2013.



In millions of dollars	Carrying Value		TDRs involving changes in the amount and/or timing of principal payments⁽¹⁾		TDRs involving changes in the amount and/or timing of interest payments⁽²⁾		TDRs involving changes in the amount and/or timing of both principal and interest payments
Commercial and industrial	$	100	$	55	$	28	$	17
Financial institutions	—						—
Mortgage and real estate	15		—		14		1
Other	$	5	$	—	$	—	$	5
Total	$	120	$	55	$	42	$	23

(1)


(2)	TDRs involving changes in the amount or timing of interest payments may involve a below-market interest rate.

The following table presents total corporate loans modified in a TDR at September 30, 2014 and 2013, as well as those TDRs that defaulted during the three months ended September 30, 2014 and 2013 and for which the payment default occurred within one year of a permanent modification. Default is defined as 60 days past due, except for classifiably managed commercial markets loans, where default is defined as 90 days past due.



	TDR balances at		TDR loans in payment default during the three months ended		TDR loans in payment default nine months ended		TDR balances at		TDR loans in payment default during the three months ended		TDR loans in payment default nine months ended
In millions of dollars	September 30, 2014		September 30, 2014		September 30, 2014		September 30, 2013		September 30, 2013		September 30, 2013
Commercial and industrial	$	161	$	—	$	—	$	167	$	—	$	15
Loans to financial institutions	—		—		—		16		—		—
Mortgage and real estate	125		—		—		202		—		2
Other	326		—		—		393		—		—
Total	$	612	$	—	$	—	$	778	$	—	$	17