LOANS

3 Months Ended

Mar. 31, 2016

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 GCB businesses in Citicorp and in Citi Holdings. The following table provides information by loan type for the periods indicated:



In millions of dollars	March 31, 2016		December 31, 2015
In U.S. offices
Mortgage and real estate⁽¹⁾	$	79,128	$	80,281
Installment, revolving credit, and other	3,504		3,480
Cards	106,892		112,800
Commercial and industrial	6,793		6,407
	$	196,317	$	202,968
In offices outside the U.S.
Mortgage and real estate⁽¹⁾	$	47,831	$	47,062
Installment, revolving credit, and other	28,778		29,480
Cards	26,312		27,342
Commercial and industrial	17,697		17,741
Lease financing	139		362
	$	120,757	$	121,987
Total consumer loans	$	317,074	$	324,955
Net unearned income	$	826	830
Consumer loans, net of unearned income	$	317,900	$	325,785


(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 months ended March 31, 2016 and 2015, the Company sold and/or reclassified to held-for-sale $2.7 billion and $14.0 billion, respectively, of consumer loans. The Company did not have significant purchases of consumer loans during the three months ended March 31, 2016 or 2015.

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 Bankers 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 that 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 a 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:

Consumer Loan Delinquency and Non-Accrual Details at March 31, 2016



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	$	53,482	$	733	$	545	$	2,049	$	56,809	$	1,185	$	1,779
Home equity loans⁽⁵⁾	21,454		164		281		—		21,899		990		—
Credit cards	105,118		1,180		1,195		—		107,493		—		1,195
Installment and other	4,638		56		32		—		4,726		60		—
Commercial banking loans	8,563		13		45		—		8,621		281		16
Total	$	193,255	$	2,146	$	2,098	$	2,049	$	199,548	$	2,516	$	2,990
In offices outside North America
Residential first mortgages	$	40,293	$	310	$	164	$	—	$	40,767	$	389	$	—
Credit cards	24,774		470		404		—		25,648		226		266
Installment and other	27,739		325		223		—		28,287		213		—
Commercial banking loans	23,415		38		29		—		23,482		234		—
Total	$	116,221	$	1,143	$	820	$	—	$	118,184	$	1,062	$	266
Total GCB and Citi Holdings consumer	$	309,476	$	3,289	$	2,918	$	2,049	$	317,732	$	3,578	$	3,256
Other⁽⁶⁾	156		6		6		—		168		23		—
Total Citigroup	$	309,632	$	3,295	$	2,924	$	2,049	$	317,900	$	3,601	$	3,256


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


(2)	Includes $33 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 $0.2 billion and 90 days or more past due of $1.8 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, 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	$	53,146	$	846	$	564	$	2,318	$	56,874	$	1,216	$	1,997
Home equity loans⁽⁵⁾	22,335		136		277		—		22,748		1,017		—
Credit cards	110,814		1,296		1,243		—		113,353		—		1,243
Installment and other	4,576		80		33		—		4,689		56		2
Commercial banking loans	8,241		16		61		—		8,318		222		17
Total	$	199,112	$	2,374	$	2,178	$	2,318	$	205,982	$	2,511	$	3,259
In offices outside North America
Residential first mortgages	$	39,551	$	240	$	175	$	—	$	39,966	$	388	$	—
Credit cards	25,698		477		442		—		26,617		261		278
Installment and other	27,664		317		220		—		28,201		226		—
Commercial banking loans	24,764		46		31		—		24,841		247		—
Total	$	117,677	$	1,080	$	868	$	—	$	119,625	$	1,122	$	278
Total GCB and Citi Holdings	$	316,789	$	3,454	$	3,046	$	2,318	$	325,607	$	3,633	$	3,537
Other⁽⁶⁾	164		7		7		—		178		25		—
Total Citigroup	$	316,953	$	3,461	$	3,053	$	2,318	$	325,785	$	3,658	$	3,537


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


(2)	Includes $34 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 $0.3 billion and 90 days or more past due of $2.0 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 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 (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⁾	March 31, 2016
In millions of dollars	Less than 620		≥ 620 but less than 660		Equal to or greater than 660
Residential first mortgages	$	3,387	$	3,024	$	45,437
Home equity loans	2,032		1,700		16,995
Credit cards	7,430		9,837		87,333
Installment and other	337		271		2,581
Total	$	13,186	$	14,832	$	152,346


(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, 2015
In millions of dollars	Less than 620		≥ 620 but less than 660		Equal to or greater than 660
Residential first mortgages	$	3,483	$	3,036	$	45,047
Home equity loans	2,067		1,782		17,837
Credit cards	7,341		10,072		93,194
Installment and other	337		270		2,662
Total	$	13,228	$	15,160	$	158,740


(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. 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⁾	March 31, 2016
In millions of dollars	Less than or equal to 80%		> 80% but less than or equal to 100%		Greater than 100%
Residential first mortgages	$	46,181	$	5,034	$	720
Home equity loans	13,246		4,813		2,561
Total	$	59,427	$	9,847	$	3,281


(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, 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	$	46,559	$	4,478	$	626
Home equity loans	13,904		5,147		2,527
Total	$	60,463	$	9,625	$	3,153


(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 and for interest income recognized on impaired consumer loans:



									Three months ended March 31,
	Balance at March 31, 2016								2016		2015
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⁾
Mortgage and real estate
Residential first mortgages	$	5,696	$	6,248	$	691	$	7,697	$	61	$	141
Home equity loans	1,364		1,921		408		1,629		9		17
Credit cards	1,899		1,935		601		1,991		41		44
Installment and other
Individual installment and other	498		531		200		465		7		9
Commercial banking loans	462		603		122		389		2		3
Total	$	9,919	$	11,238	$	2,022	$	12,171	$	120	$	214


(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)	$1,124 million of residential first mortgages, $443 million of home equity loans and $96 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, December 31, 2015
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	$	6,038	$	6,610	$	739	$	8,932
Home equity loans	1,399		1,972		406		1,778
Credit cards	1,950		1,986		604		2,079
Installment and other
Individual installment and other	464		519		197		449
Commercial banking loans	341		572		100		361
Total	$	10,192	$	11,659	$	2,046	$	13,599


(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)	$1,151 million of residential first mortgages, $459 million of home equity loans and $86 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.

Consumer Troubled Debt Restructurings

The following tables present consumer TDRs occurring:



	At and for the three months ended March 31, 2016
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	1,468	$	212	$	2	$	—	$	1	1	%
Home equity loans	858	30		—		—		—		3
Credit cards	49,109	188		—		—		—		17
Installment and other revolving	1,385	12		—		—		—		14
Commercial banking⁽⁶⁾	23	5		—		—		—		—
Total⁽⁸⁾	52,843	$	447	$	2	$	—	$	1
International
Residential first mortgages	419	$	15	$	—	$	—	$	—	—	%
Credit cards	52,207	123		—		—		2		13
Installment and other revolving	21,644	82		—		—		2		7
Commercial banking⁽⁶⁾	28	20		—		—		—		—
Total⁽⁸⁾	74,298	$	240	$	—	$	—	$	4



	At and for the three months ended March 31, 2015
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	3,093	$	407	$	4	$	2	$	8	1	%
Home equity loans	1,258	46		—		—		1		2
Credit cards	50,310	211		—		—		—		16
Installment and other revolving	984	9		—		—		—		12
Commercial banking⁽⁶⁾	57	11		—		—		—		—
Total⁽⁸⁾	55,702	$	684	$	4	$	2	$	9
International
Residential first mortgages	883	$	24	$	—	$	—	$	—	—	%
Credit cards	40,431	98		—		—		2		13
Installment and other revolving	15,947	69		—		—		2		5
Commercial banking⁽⁶⁾	77	27		—		—		—		3
Total⁽⁸⁾	57,338	$	218	$	—	$	—	$	4


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

(2)

Post-modification balances in North America include $20 million of residential first mortgages and $5 million of home equity loans to borrowers who have gone through Chapter 7 bankruptcy in the three months ended March 31, 2016. These amounts include $14 million of residential first mortgages and $5 million of home equity loans that were newly classified as TDRs in the three months ended March 31, 2016, based on previously received OCC guidance.


(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 banking 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 $66 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 March 31, 2015. These amounts include $38 million of residential first mortgages and $12 million of home equity loans that were newly classified as TDRs in the three months ended March 31, 2015, based on previously received OCC guidance.

(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 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 banking loans, where default is defined as 90 days past due.



	Three Months Ended March 31,
In millions of dollars	2016		2015
North America
Residential first mortgages	$	87	$	110
Home equity loans	9		11
Credit cards	49		43
Installment and other revolving	2		2
Commercial banking	1		2
Total	$	148	$	168
International
Residential first mortgages	$	3	$	6
Credit cards	37		35
Installment and other revolving	22		23
Commercial banking	3		8
Total	$	65	$	72

Corporate Loans

Corporate loans represent loans and leases managed by ICG. The following table presents information by corporate loan type:



In millions of dollars	March 31, 2016			December 31, 2015
In U.S. offices
Commercial and industrial	$	44,104		$	41,147
Financial institutions	36,865			36,396
Mortgage and real estate⁽¹⁾	38,697			37,565
Installment, revolving credit and other	33,273			33,374
Lease financing	1,597			1,780
	$	154,536		$	150,262
In offices outside the U.S.
Commercial and industrial	$	85,491		$	82,358
Financial institutions	28,652			28,704
Mortgage and real estate⁽¹⁾	5,769			5,106
Installment, revolving credit and other	21,583			20,853
Lease financing	280			303
Governments and official institutions	5,303			4,911
	$	147,078		$	142,235
Total corporate loans	$	301,614		$	292,497
Net unearned income	(690		)	(665		)
Corporate loans, net of unearned income	$	300,924		$	291,832


(1)	Loans secured primarily by real estate.

The Company sold and/or reclassified to held-for-sale $0.5 billion and $0.6 billion of corporate loans during the three months ended March 31, 2016 and 2015, respectively. The Company did not have significant purchases of corporate loans classified as held-for-investment for the three months ended March 31, 2016 or 2015.

Delinquency Status

Citi generally does not manage corporate loans on a delinquency basis. 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 past due 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.

Corporate Loan Delinquency and Non-Accrual Details at March 31, 2016



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	$	57	$	—	$	57	$	1,863	$	124,241	$	126,161
Financial institutions	—		—		—		164		64,273		64,437
Mortgage and real estate	119		—		119		204		43,943		44,266
Leases	—		—		—		1		1,877		1,878
Other	17		1		18		95		59,303		59,416
Loans at fair value											4,760
Purchased distressed loans											6
Total	$	193	$	1	$	194	$	2,327	$	293,637	$	300,924

Corporate Loan Delinquency and Non-Accrual Details at December 31, 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	$	87	$	4	$	91	$	1,071	$	118,530	$	119,692
Financial institutions	16		—		16		173		64,128		64,317
Mortgage and real estate	137		7		144		232		42,095		42,471
Leases	—		—		—		76		1,941		2,017
Other	29		—		29		44		58,286		58,359
Loans at fair value											4,971
Purchased distressed loans											5
Total	$	269	$	11	$	280	$	1,596	$	284,980	$	291,832


(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)	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



	Recorded investment in loans⁽¹⁾
In millions of dollars	March 31, 2016		December 31, 2015
Investment grade⁽²⁾
Commercial and industrial	$	88,145	$	85,893
Financial institutions	54,961		53,522
Mortgage and real estate	20,540		18,869
Leases	1,548		1,660
Other	52,113		51,449
Total investment grade	$	217,307	$	211,393
Non-investment grade⁽²⁾
Accrual
Commercial and industrial	$	36,153	$	32,726
Financial institutions	9,312		10,622
Mortgage and real estate	2,556		2,800
Leases	329		282
Other	7,209		6,867
Non-accrual
Commercial and industrial	1,863		1,071
Financial institutions	164		173
Mortgage and real estate	204		232
Leases	1		76
Other	95		44
Total non-investment grade	$	57,886	$	54,893
Private bank loans managed on a delinquency basis⁽²⁾	$	20,971	$	20,575
Loans at fair value	4,760		4,971
Corporate loans, net of unearned income	$	300,924	$	291,832


(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.

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 and interest income recognized on non-accrual corporate loans:

Non-Accrual Corporate Loans



	At and for the three months March 31, 2016
In millions of dollars	Recorded investment⁽¹⁾		Unpaid principal balance		Related specific allowance		Average carrying value⁽²⁾		Interest income recognized⁽³⁾
Non-accrual corporate loans
Commercial and industrial	$	1,863	$	2,147	$	423	$	1,172	$	10
Financial institutions	164		188		12		176		2
Mortgage and real estate	204		324		11		230		1
Lease financing	1		1		—		50		—
Other	95		185		37		54		—
Total non-accrual corporate loans	$	2,327	$	2,845	$	483	$	1,682	$	13



	At and for the year ended December 31, 2015
In millions of dollars	Recorded investment⁽¹⁾		Unpaid principal balance		Related specific allowance		Average carrying value⁽²⁾
Non-accrual corporate loans
Commercial and industrial	$	1,071	$	1,224	$	246	$	859
Financial institutions	173		196		10		194
Mortgage and real estate	232		336		21		240
Lease financing	76		76		54		62
Other	44		114		32		39
Total non-accrual corporate loans	$	1,596	$	1,946	$	363	$	1,394



	March 31, 2016				December 31, 2015
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	$	1,571	$	423	$	571	$	246
Financial institutions	26		12		18		10
Mortgage and real estate	51		11		60		21
Lease financing	—		—		75		54
Other	42		37		40		32
Total non-accrual corporate loans with specific allowance	$	1,690	$	483	$	764	$	363
Non-accrual corporate loans without specific allowance
Commercial and industrial	$	292			$	500
Financial institutions	138				155
Mortgage and real estate	153				172
Lease financing	1				1
Other	53				4
Total non-accrual corporate loans without specific allowance	$	637	N/A		$	832	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 months ended March 31, 2015 was $1 million.

N/A Not Applicable

Corporate Troubled Debt Restructurings

The following table presents corporate TDR activity at and for the three months ended March 31, 2016:



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	$	98	$	—	$	—	$	98
Mortgage and real estate	4		—		—		4
Total	$	102	$	—	$	—	$	102

(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 loans. 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 March 31, 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	$	—	$	—	$	—	$	—
Mortgage and real estate	1		1		—		—
Total	$	1	$	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 total corporate loans modified in a TDR as well as those TDRs that defaulted 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 banking loans, where default is defined as 90 days past due.



In millions of dollars	TDR balances at March 31, 2016		TDR loans in payment default during the three months ended March 31, 2016		TDR balances at March 31, 2015		TDR loans in payment default during the three months ended March 31, 2015
Commercial and industrial	$	219	$	—	$	88	$	—
Loans to financial institutions	2		—		—		—
Mortgage and real estate	139		—		105		—
Other	303		—		336		—
Total⁽¹⁾	$	663	$	—	$	529	$	—


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