LOANS

6 Months Ended

Jun. 30, 2015

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	June 30, 2015			December 31, 2014
Consumer loans
In U.S. offices
Mortgage and real estate⁽¹⁾	$	90,715		$	96,533
Installment, revolving credit, and other	4,956			14,450
Cards	107,096			112,982
Commercial and industrial	6,493			5,895
	$	209,260		$	229,860
In offices outside the U.S.
Mortgage and real estate⁽¹⁾	$	50,704		$	54,462
Installment, revolving credit, and other	30,958			31,128
Cards	28,662			32,032
Commercial and industrial	22,953			22,561
Lease financing	493			609
	$	133,770		$	140,792
Total Consumer loans	$	343,030		$	370,652
Net unearned income	(681		)	(682		)
Consumer loans, net of unearned income	$	342,349		$	369,970


(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 six months ended June 30, 2015 and 2014, the Company sold and/or reclassified to held-for-sale $1.5 billion and $14.6 billion, and $3.4 billion and $3.8 billion respectively, of consumer loans. The Company did not have significant purchases of consumer loans during the three and six months ended June 30, 2015 and 2014.

Delinquency Status

Delinquency status is monitored and considered a key indicator of credit quality of consumer loans. Principally 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 a 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 (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.

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 June 30, 2015 and December 31, 2014:

Consumer Loan Delinquency and Non-Accrual Details at June 30, 2015



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	$	59,431	$	964	$	1,054	$	2,557	$	64,006	$	2,551	$	2,161
Home equity loans⁽⁵⁾	22,374		284		479		—		23,137		1,171		—
Credit cards	105,569		1,114		1,062		—		107,745		—		1,062
Installment and other	7,247		60		40		—		7,347		43		4
Commercial market loans	8,463		21		39		—		8,523		161		9
Total	$	203,084	$	2,443	$	2,674	$	2,557	$	210,758	$	3,926	$	3,236
In offices outside North America
Residential first mortgages	$	41,818	$	271	$	183	$	—	$	42,272	$	410	$	—
Home equity loans⁽⁵⁾	—		—		—		—		—		—		—
Credit cards	28,461		544		497		—		29,502		346		303
Installment and other	28,706		317		136		—		29,159		201		—
Commercial market loans	30,160		84		184		—		30,428		365		—
Total	$	129,145	$	1,216	$	1,000	$	—	$	131,361	$	1,322	$	303
Total GCB and Citi Holdings Consumer	$	332,229	$	3,659	$	3,674	$	2,557	$	342,119	$	5,248	$	3,539
Other⁽⁶⁾	213		9		8		—		230		31		—
Total Citigroup	$	332,442	$	3,668	$	3,682	$	2,557	$	342,349	$	5,279	$	3,539


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


(2)	Includes $39 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 $0.4 billion and 90 days past due of $2.2 billion.


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


(6)	Represents loans classified as Consumer loans on the Consolidated Balance Sheet that are not included in the Citi Holdings Consumer credit metrics.

Consumer Loan Delinquency and Non-Accrual Details at December 31, 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	$	61,730	$	1,280	$	1,371	$	3,443	$	67,824	$	2,746	$	2,759
Home equity loans⁽⁵⁾	27,262		335		520		—		28,117		1,271		—
Credit cards	111,441		1,316		1,271		—		114,028		—		1,273
Installment and other	12,361		229		284		—		12,874		254		3
Commercial market loans	8,630		31		13		—		8,674		135		15
Total	$	221,424	$	3,191	$	3,459	$	3,443	$	231,517	$	4,406	$	4,050
In offices outside North America
Residential first mortgages	$	44,782	$	312	$	223	$	—	$	45,317	$	454	$	—
Home equity loans⁽⁵⁾	—		—		—		—		—		—		—
Credit cards	30,327		602		553		—		31,482		413		322
Installment and other	29,297		328		149		—		29,774		216		—
Commercial market loans	31,280		86		255		—		31,621		405		—
Total	$	135,686	$	1,328	$	1,180	$	—	$	138,194	$	1,488	$	322
Total GCB and Citi Holdings	$	357,110	$	4,519	$	4,639	$	3,443	$	369,711	$	5,894	$	4,372
Other	238		10		11		—		259		30		—
Total Citigroup	$	357,348	$	4,529	$	4,650	$	3,443	$	369,970	$	5,924	$	4,372


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


(2)	Includes $43 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 $0.6 billion and 90 days past due of $2.8 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 Isaac 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 June 30, 2015 and December 31, 2014 (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⁾	June 30, 2015
In millions of dollars	Less than 620		≥ 620 but less than 660		Equal to or greater than 660
Residential first mortgages	$	7,381	$	4,778	$	45,885
Home equity loans	2,891		2,277		19,614
Credit cards	6,853		9,543		88,141
Installment and other	330		253		2,570
Total	$	17,455	$	16,851	$	156,210


(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, 2014
In millions of dollars	Less than 620		≥ 620 but less than 660		Equal to or greater than 660
Residential first mortgages	$	8,911	$	5,463	$	45,783
Home equity loans	3,257		2,456		20,957
Credit cards	7,647		10,296		92,877
Installment and other	4,015		2,520		5,150
Total	$	23,830	$	20,735	$	164,767


(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 June 30, 2015 and December 31, 2014. 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⁾	June 30, 2015
In millions of dollars	Less than or equal to 80%		> 80% but less than or equal to 100%		Greater than 100%
Residential first mortgages	$	48,757	$	7,466	$	1,960
Home equity loans	14,487		6,279		3,903
Total	$	63,244	$	13,745	$	5,863


(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, 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	$	48,163	$	9,480	$	2,670
Home equity loans	14,638		7,267		4,641
Total	$	62,801	$	16,747	$	7,311


(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.

The following tables present information about total impaired consumer loans at and for the periods ended June 30, 2015 and December 31, 2014, respectively, and for the three and six months ended June 30, 2015 and 2014 for interest income recognized on impaired consumer loans:



									Three Months Ended June 30,				Six months ended June 30,
	Balance at June 30, 2015								2015		2014		2015		2014
In millions of dollars	Recorded investment⁽¹⁾⁽²⁾		Unpaid principal balance		Related specific allowance⁽³⁾		Average carrying value⁽⁴⁾		Interest income recognized⁽⁵⁾		Interest income recognized⁽⁵⁾		Interest income recognized⁽⁵⁾		Interest income recognized⁽⁵⁾
Mortgage and real estate
Residential first mortgages	$	10,059	$	10,801	$	1,497	$	12,371	$	111	$	181	$	252	$	365
Home equity loans	1,912		2,541		582		1,990		17		19		34		38
Credit cards	2,118		2,157		740		2,340		45		50		89		101
Installment and other
Individual installment and other	452		469		243		700		8		29		39		63
Commercial market loans	374		589		114		387		3		4		6		15
Total	$	14,915	$	16,557	$	3,176	$	17,788	$	184	$	283	$	420	$	582


(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)	$1,765 million of residential first mortgages, $513 million of home equity loans and $121 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.



	Balance at December 31, 2014
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	$	13,551	$	14,387	$	1,909	$	15,389
Home equity loans	2,029		2,674		599		2,075
Credit cards	2,407		2,447		849		2,732
Installment and other
Individual installment and other	948		963		450		975
Commercial market loans	423		599		110		381
Total	$	19,358	$	21,070	$	3,917	$	21,552


(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)	$1,896 million of residential first mortgages, $554 million of home equity loans and $158 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 six months ended June 30, 2015 and 2014:



	At and for the three months ended June 30, 2015
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	2,709	$	366	$	2	$	1	$	8	1	%
Home equity loans	1,292	45		—		—		1		2
Credit cards	44,848	184		—		—		—		16
Installment and other revolving	1,092	9		—		—		—		14
Commercial markets⁽⁶⁾	99	17		—		—		—		—
Total⁽⁷⁾	50,040	$	621	$	2	$	1	$	9
International
Residential first mortgages	742	$	23	$	—	$	—	$	—	—	%
Home equity loans	16	2		—		—		—		—
Credit cards	37,587	103		—		—		2		12
Installment and other revolving	13,167	61		—		—		2		6
Commercial markets⁽⁶⁾	53	23		—		—		—		1
Total⁽⁷⁾	51,565	$	212	$	—	$	—	$	4



	At and for the three months ended June 30, 2014
In millions of dollars except number of loans modified	Number of loans modified	Post- modification recorded investment⁽¹⁾⁽⁸⁾		Deferred principal⁽³⁾		Contingent principal forgiveness⁽⁴⁾		Principal forgiveness⁽⁵⁾		Average interest rate reduction
North America
Residential first mortgages	4,723	$	555	$	10	$	7	$	2	1	%
Home equity loans	1,883	69		1		—		2		3
Credit cards	42,750	190		—		—		—		15
Installment and other revolving	10,830	81		—		—		—		6
Commercial markets⁽⁶⁾	53	9		—		—		—		—
Total⁽⁷⁾	60,239	$	904	$	11	$	7	$	4
International
Residential first mortgages	746	$	27	$	—	$	—	$	—	1	%
Home equity loans	6	1		—		—		—		—
Credit cards	31,763	112		—		—		2		14
Installment and other revolving	14,219	72		—		—		2		13
Commercial markets⁽⁶⁾	124	41		—		—		—		1
Total⁽⁷⁾	46,858	$	253	$	—	$	—	$	4


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

(2)

Post-modification balances in North America include $62 million of residential first mortgages and $15 million of home equity loans to borrowers who have gone through Chapter 7 bankruptcy in the three months ended June 30, 2015. These amounts include $35 million of residential first mortgages and $12 million of home equity loans that were newly classified as TDRs in the three months ended June 30, 2015 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) The above tables reflect activity for loans outstanding as of the end of the reporting period that were considered TDRs.

(8) Post-modification balances in North America include $75 million of residential first mortgages and $21 million of home equity loans to borrowers who have gone through Chapter 7 bankruptcy in the three months ended June 30, 2014. These amounts include $42 million of residential first mortgages and $18 million of home equity loans that were newly classified as TDRs in the three months ended June 30, 2014 as a result of OCC guidance, as described above.



	At and for the six months ended June 30, 2015
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	5,802	$	773	$	6	$	3	$	17	1	%
Home equity loans	2,550	90		1		—		2		2
Credit cards	95,158	396		—		—		—		16
Installment and other revolving	2,076	18		—		—		—		13
Commercial markets⁽⁶⁾	156	28		—		—		—		—
Total⁽⁸⁾	105,742	$	1,305	$	7	$	3	$	19
International
Residential first mortgages	1,611	$	44	$	—	$	—	$	—	—	%
Home equity loans	30	5		—		—		—		—
Credit cards	78,018	201		—		—		4		13
Installment and other revolving	29,114	131		—		—		4		5
Commercial markets⁽⁶⁾	136	51		—		—		—		2
Total⁽⁸⁾	108,909	$	432	$	—	$	—	$	8



	At and for the six months ended June 30, 2014
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	10,502	$	1,240	$	28	$	19	$	6	1	%
Home equity loans	4,202	153		2		—		11		2
Credit cards	87,726	390		—		—		—		15
Installment and other revolving	24,666	182		—		—		—		6
Commercial markets⁽⁶⁾	91	22		—		—		—		—
Total⁽⁸⁾	127,187	$	1,987	$	30	$	19	$	17
International
Residential first mortgages	1,292	$	49	$	—	$	—	$	1	1	%
Home equity loans	38	6		—		—		—		—
Credit cards	68,869	234		—		—		4		14
Installment and other revolving	29,081	146		—		—		3		10
Commercial markets⁽⁶⁾	220	134		—		—		—		1
Total⁽⁸⁾	99,500	$	569	$	—	$	—	$	8


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

(2)

Post-modification balances in North America include $127 million of residential first mortgages and $29 million of home equity loans to borrowers who have gone through Chapter 7 bankruptcy in the six months ended June 30, 2015. These amounts include $73 million of residential first mortgages and $24 million of home equity loans that are newly classified as TDRs as a result of OCC guidance received in the six months ended June 30, 2015, 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 $166 million of residential first mortgages and $43 million of home equity loans to borrowers who have gone through Chapter 7 bankruptcy in the six months ended June 30, 2014. These amounts include $99 million of residential first mortgages and $37 million of home equity loans that are newly classified as TDRs as a result of OCC guidance received in the six months ended June 30, 2014, 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 and six months ended June 30, 2015 and 2014, respectively, 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 June 30,				Six Months Ended June 30,
In millions of dollars	2015		2014		2015		2014
North America
Residential first mortgages	$	117	$	168	$	227	$	413
Home equity loans	10		17		21		40
Credit cards	49		48		92		99
Installment and other revolving	2		21		3		41
Commercial markets	1		1		3		7
Total	$	179	$	255	$	346	$	600
International
Residential first mortgages	$	6	$	5	$	12	$	11
Home equity loans	—		—		—		—
Credit cards	36		59		71		122
Installment and other revolving	23		28		46		56
Commercial markets	7		95		17		100
Total	$	72	$	187	$	146	$	289

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 June 30, 2015 and December 31, 2014:



In millions of dollars	June 30, 2015			December 31, 2014
Corporate
In U.S. offices
Commercial and industrial	$	40,697		$	35,055
Financial institutions	37,360			36,272
Mortgage and real estate⁽¹⁾	34,680			32,537
Installment, revolving credit and other	31,882			29,207
Lease financing	1,707			1,758
	$	146,326		$	134,829
In offices outside the U.S.
Commercial and industrial	$	83,184		$	79,239
Financial institutions	29,675			33,269
Mortgage and real estate⁽¹⁾	5,948			6,031
Installment, revolving credit and other	20,214			19,259
Lease financing	309			356
Governments and official institutions	4,714			2,236
	$	144,044		$	140,390
Total Corporate loans	$	290,370		$	275,219
Net unearned income	(601		)	(554		)
Corporate loans, net of unearned income	$	289,769		$	274,665


(1)	Loans secured primarily by real estate.

The Company sold and/or reclassified (to held-for-sale) $0.5 billion and $1.1 billion of corporate loans during the three and six months ended June 30, 2015, respectively and

$1.4 billion and $2.5 billion during the three and six months

ended June 30, 2014, respectively. The Company did not have significant purchases of corporate loans classified as held-for-investment for the three and six months ended June 30, 2015 or 2014.

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 June 30, 2015 and December 31, 2014.

Corporate Loan Delinquency and Non-Accrual Details at June 30, 2015



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	$	37	$	2	$	39	$	626	$	118,357	$	119,022
Financial institutions	14		—		14		200		65,750		65,964
Mortgage and real estate	123		—		123		247		40,185		40,555
Leases	—		—		—		48		1,968		2,016
Other	54		5		59		37		55,608		55,704
Loans at fair value											6,499
Purchased distressed loans											9
Total	$	228	$	7	$	235	$	1,158	$	281,868	$	289,769


(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, 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	$	50	$	—	$	50	$	575	$	109,764	$	110,389
Financial institutions	2		—		2		250		67,580		67,832
Mortgage and real estate	86		—		86		252		38,135		38,473
Leases	—		—		—		51		2,062		2,113
Other	49		1		50		55		49,844		49,949
Loans at fair value											5,858
Purchased Distressed Loans											51
Total	$	187	$	1	$	188	$	1,183	$	267,385	$	274,665


(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 June 30, 2015 and December 31, 2014



	Recorded investment in loans⁽¹⁾
In millions of dollars	June 30, 2015		December 31, 2014
Investment grade⁽²⁾
Commercial and industrial	$	86,276	$	80,812
Financial institutions	55,691		56,154
Mortgage and real estate	17,559		16,068
Leases	1,592		1,669
Other	49,844		46,284
Total investment grade	$	210,962	$	200,987
Non-investment grade⁽²⁾
Accrual
Commercial and industrial	$	32,097	$	29,003
Financial institutions	10,072		11,429
Mortgage and real estate	3,238		3,587
Leases	376		393
Other	5,819		3,609
Non-accrual
Commercial and industrial	626		575
Financial institutions	200		250
Mortgage and real estate	247		252
Leases	48		51
Other	37		55
Total non-investment grade	$	52,760	$	49,204
Private bank loans managed on a delinquency basis ⁽²⁾	$	19,548	$	18,616
Loans at fair value	6,499		5,858
Corporate loans, net of unearned income	$	289,769	$	274,665


(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 June 30, 2015 and December 31, 2014 and interest income recognized on non-accrual Corporate loans for the six months ended June 30, 2015.

Non-Accrual Corporate Loans



									Three Months Ended June 30, 2015		Six Months Ended June 30, 2015
	June 30, 2015
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	$	626	$	997	$	97	$	632	$	4	$	4
Financial institutions	200		205		6		239		—		—
Mortgage and real estate	247		317		17		246		—		1
Lease financing	48		49		29		49		—		—
Other	37		133		13		48		—		—
Total non-accrual corporate loans	$	1,158	$	1,701	$	162	$	1,214	$	4	$	5



	At December 31, 2014
In millions of dollars	Recorded investment⁽¹⁾		Unpaid principal balance		Related specific allowance		Average carrying value⁽²⁾
Non-accrual corporate loans
Commercial and industrial	$	575	$	863	$	155	$	658
Financial institutions	250		262		7		278
Mortgage and real estate	252		287		24		263
Lease financing	51		53		29		85
Other	55		68		21		60
Total non-accrual corporate loans	$	1,183	$	1,533	$	236	$	1,344



	June 30, 2015				December 31, 2014
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	$	293	$	97	$	224	$	155
Financial institutions	16		6		37		7
Mortgage and real estate	73		17		70		24
Lease financing	47		29		47		29
Other	36		13		55		21
Total non-accrual corporate loans with specific allowance	$	465	$	162	$	433	$	236
Non-accrual corporate loans without specific allowance
Commercial and industrial	$	333			$	351
Financial institutions	184				213
Mortgage and real estate	174				182
Lease financing	1				4
Other	1				—
Total non-accrual corporate loans without specific allowance	$	693	N/A		$	750	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 six-month periods ended June 30, 2014 was $15 million and $25 million, respectively.

N/A Not Applicable

Corporate Troubled Debt Restructurings

The following table presents corporate TDR activity at and for the three months ended June 30, 2015.



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	$	66	$	34	$	—	$	33
Financial institutions	—		—		—		—
Mortgage and real estate	11		1		—		10
Other	—		—		—		—
Total	$	77	$	35	$	—	$	43

(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 June 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	$	7	$	7	$	—	$	—
Financial institutions	—		—		—		—
Mortgage and real estate	1		—		1		—
Other	—		—		—		—
Total	$	8	$	7	$	1	$	—

(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 six months ended June 30, 2015.



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	$	66	$	34	$	—	$	33
Financial institutions	—		—		—		—
Mortgage and real estate	12		2		—		10
Other	—		—		—		—
Total	$	78	$	36	$	—	$	43

(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 six months ended June 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	$	47	$	30	$	17	$	—
Financial institutions	—		—		—		—
Mortgage and real estate	5		4		1		—
Other	—		—		—		—
Total	$	52	$	34	$	18	$	—

(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 June 30, 2015 and 2014, as well as those TDRs that defaulted during the three months ended June 30, 2015 and 2014 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.



In millions of dollars	TDR balances at June 30, 2015		TDR loans in payment default during the three months ended June 30, 2015		TDR loans in payment default six months ended June 30, 2015		TDR balances at June 30, 2014		TDR loans in payment default during the three months ended June 30, 2015		TDR loans in payment default six months ended June 30, 2015
Commercial and industrial	$	118	$	—	$	—	$	203	$	—	$	—
Loans to financial institutions	1		1		1		—		—		—
Mortgage and real estate	113		—		—		130		—		—
Other	326		—		—		340		—		—
Total	$	558	$	1	$	1	$	673	$	—	$	—