LOANS

12 Months Ended

Dec. 31, 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 GCB businesses in Citicorp and in Citi Holdings. The following table provides information by loan type for the periods indicated:



	December 31,
In millions of dollars	2015		2014
In U.S. offices
Mortgage and real estate⁽¹⁾	$	80,281	$	96,533
Installment, revolving credit, and other	3,480		14,450
Cards	112,800		112,982
Commercial and industrial	6,407		5,895
	$	202,968	$	229,860
In offices outside the U.S.
Mortgage and real estate⁽¹⁾	$	47,062	$	54,462
Installment, revolving credit, and other	29,480		31,128
Cards	27,342		32,032
Commercial and industrial	17,741		18,594
Lease financing	362		546
	$	121,987	$	136,762
Total consumer loans	$	324,955	$	366,622
Net unearned income	$	830	(679		)
Consumer loans, net of unearned income	$	325,785	$	365,943


(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 years ended December 31, 2015 and 2014, the Company sold and/or reclassified to held-for-sale $25.8 billion and $10.3 billion, respectively, of consumer loans. The Company did not have significant purchases of consumer loans during the years ended December 31, 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 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 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 market 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 market loans	24,764		46		31		—		24,841		247		—
Total	$	117,677	$	1,080	$	868	$	—	$	119,625	$	1,122	$	278
Total GCB and Citi Holdings consumer	$	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 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	12,680		229		284		—		13,193		282		3
Commercial market loans	8,611		31		13		—		8,655		107		15
Total	$	221,724	$	3,191	$	3,459	$	3,443	$	231,817	$	4,406	$	4,050
In offices outside North America
Residential first mortgages	$	44,747	$	312	$	223	$	—	$	45,282	$	454	$	—
Credit cards	30,132		596		548		—		31,276		374		322
Installment and other	28,944		366		365		—		29,675		266		—
Commercial market loans	27,548		49		37		—		27,634		375		—
Total	$	131,371	$	1,323	$	1,173	$	—	$	133,867	$	1,469	$	322
Total GCB and Citi Holdings	$	353,095	$	4,514	$	4,632	$	3,443	$	365,684	$	5,875	$	4,372
Other⁽⁶⁾	238		10		11		—		259		30		—
Total Citigroup	$	353,333	$	4,524	$	4,643	$	3,443	$	365,943	$	5,905	$	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 or more 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.


(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 as of December 31, 2015 and 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⁾	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 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. 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⁾	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.



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 and for interest income recognized on impaired consumer loans:



	At and for the year ended December 31, 2015
In millions of dollars	Recorded investment⁽¹⁾⁽²⁾		Unpaid principal balance		Related specific allowance⁽³⁾		Average carrying value⁽⁴⁾		Interest income recognized⁽⁵⁾
Mortgage and real estate
Residential first mortgages	$	6,038	$	6,610	$	739	$	8,932	$	439
Home equity loans	1,399		1,972		406		1,778		64
Credit cards	1,950		1,986		604		2,079		179
Installment and other
Individual installment and other	464		519		197		449		33
Commercial market loans	339		567		100		361		13
Total	$	10,190	$	11,654	$	2,046	$	13,599	$	728


(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.

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



	At and for the year ended December 31, 2014
In millions of dollars	Recorded investment⁽¹⁾⁽²⁾		Unpaid principal balance		Related specific allowance⁽³⁾		Average carrying value⁽⁴⁾		Interest income recognized⁽⁵⁾⁽⁶⁾
Mortgage and real estate
Residential first mortgages	$	13,551	$	14,387	$	1,920	$	15,389	$	690
Home equity loans	2,029		2,674		602		2,075		74
Credit cards	2,407		2,447		877		2,732		196
Installment and other
Individual installment and other	948		963		424		975		124
Commercial market loans	411		579		88		368		22
Total	$	19,346	$	21,050	$	3,911	$	21,539	$	1,106


(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 the last four quarters and does not include the related specific allowance.

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

(6) Interest income recognized for the year ended December 31, 2013 was $1,280 million.

Consumer Troubled Debt Restructurings

The following tables present consumer TDRs occurring:



	At and for the year ended December 31, 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	9,487	$	1,282	$	9	$	4	$	25	1	%
Home equity loans	4,317	157		1		—		3		2
Credit cards	188,502	771		—		—		—		16
Installment and other revolving	4,287	37		—		—		—		13
Commercial markets⁽⁶⁾	300	47		—		—		—		—
Total⁽⁸⁾	206,893	$	2,294	$	10	$	4	$	28
International
Residential first mortgages	3,918	$	104	$	—	$	—	$	—	—	%
Credit cards	142,851	374		—		—		7		13
Installment and other revolving	65,895	280		—		—		5		5
Commercial markets⁽⁶⁾	239	87		—		—		—		1
Total⁽⁸⁾	212,903	$	845	$	—	$	—	$	12



	At and for the year ended December 31, 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	20,114	$	2,478	$	52	$	36	$	16	1	%
Home equity loans	7,444	279		3		—		14		2
Credit cards	185,962	808		—		—		—		15
Installment and other revolving	46,838	351		—		—		—		7
Commercial markets⁽⁶⁾	191	35		—		—		1		—
Total⁽⁸⁾	260,549	$	3,951	$	55	$	36	$	31
International
Residential first mortgages	3,217	$	114	$	—	$	—	$	1	1	%
Credit cards	139,128	447		—		—		9		13
Installment and other revolving	61,563	292		—		—		7		9
Commercial markets⁽⁶⁾	346	200		—		—		—		—
Total⁽⁸⁾	204,254	$	1,053	$	—	$	—	$	17


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

(2)

Post-modification balances in North America include $209 million of residential first mortgages and $55 million of home equity loans to borrowers who have gone through Chapter 7 bankruptcy in the year ended December 31, 2015. These amounts include $126 million of residential first mortgages and $47 million of home equity loans that were newly classified as TDRs during 2015, 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 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 $322 million of residential first mortgages and $80 million of home equity loans to borrowers who have gone through Chapter 7 bankruptcy in the year ended December 31, 2014. These amounts include $179 million of residential first mortgages and $69 million of home equity loans that were newly classified as TDRs during 2014, 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 markets loans, where default is defined as 90 days past due.



In millions of dollars	2015		2014
North America
Residential first mortgages	$	420	$	715
Home equity loans	38		72
Credit cards	187		194
Installment and other revolving	8		95
Commercial markets	9		9
Total	$	662	$	1,085
International
Residential first mortgages	$	22	$	24
Credit cards	141		217
Installment and other revolving	88		104
Commercial markets	28		105
Total	$	279	$	450

Corporate Loans

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



In millions of dollars	December 31, 2015			December 31, 2014
In U.S. offices
Commercial and industrial	$	41,147		$	35,055
Financial institutions	36,396			36,272
Mortgage and real estate⁽¹⁾	37,565			32,537
Installment, revolving credit and other	33,374			29,207
Lease financing	1,780			1,758
	$	150,262		$	134,829
In offices outside the U.S.
Commercial and industrial	$	82,358		$	83,206
Financial institutions	28,704			33,269
Mortgage and real estate⁽¹⁾	5,106			6,031
Installment, revolving credit and other	20,853			19,259
Lease financing	303			419
Governments and official institutions	4,911			2,236
	$	142,235		$	144,420
Total corporate loans	$	292,497		$	279,249
Net unearned income	(665		)	(557		)
Corporate loans, net of unearned income	$	291,832		$	278,692


(1)	Loans secured primarily by real estate.

The Company sold and/or reclassified to held-for-sale $2.8 billion and $4.8 billion of corporate loans during the years ended December 31, 2015 and 2014, respectively. The Company did not have significant purchases of corporate loans classified as held-for-investment for the years ended December 31, 2015 or 2014.

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 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 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	$	118,465	$	119,627
Financial institutions	16		—		16		173		64,128		64,317
Mortgage and real estate	137		7		144		232		42,095		42,471
Leases	—		—		—		76		2,006		2,082
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

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	$	594	$	113,709	$	114,353
Financial institutions	2		—		2		250		67,580		67,832
Mortgage and real estate	86		—		86		252		38,135		38,473
Leases	—		—		—		51		2,125		2,176
Other	49		1		50		55		49,844		49,949
Loans at fair value											5,858
Purchased distressed loans											51
Total	$	187	$	1	$	188	$	1,202	$	271,393	$	278,692


(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	December 31, 2015		December 31, 2014
Investment grade⁽²⁾
Commercial and industrial	$	85,893	$	84,820
Financial institutions	53,522		56,154
Mortgage and real estate	18,869		16,068
Leases	1,660		1,669
Other	51,449		46,284
Total investment grade	$	211,393	$	204,995
Non-investment grade⁽²⁾
Accrual
Commercial and industrial	$	32,726	$	29,003
Financial institutions	10,622		11,429
Mortgage and real estate	2,800		3,587
Leases	282		393
Other	6,867		3,609
Non-accrual
Commercial and industrial	1,071		594
Financial institutions	173		250
Mortgage and real estate	232		252
Leases	76		51
Other	44		55
Total non-investment grade	$	54,893	$	49,223
Private bank loans managed on a delinquency basis⁽²⁾	$	20,575	$	18,616
Loans at fair value	4,971		5,858
Corporate loans, net of unearned income	$	291,832	$	278,692


(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 year ended December 31, 2015
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	$	1,071	$	1,224	$	246	$	859	$	7
Financial institutions	173		196		10		194		—
Mortgage and real estate	232		336		21		240		4
Lease financing	76		76		54		62		—
Other	44		114		32		39		—
Total non-accrual corporate loans	$	1,596	$	1,946	$	363	$	1,394	$	11



	At and for the year ended December 31, 2014
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	$	594	$	863	$	155	$	685	$	32
Financial institutions	250		262		7		278		4
Mortgage and real estate	252		287		24		263		8
Lease financing	51		53		29		85		—
Other	55		68		21		60		3
Total non-accrual corporate loans	$	1,202	$	1,533	$	236	$	1,371	$	47



	December 31, 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	$	571	$	246	$	243	$	155
Financial institutions	18		10		37		7
Mortgage and real estate	60		21		70		24
Lease financing	75		54		47		29
Other	40		32		55		21
Total non-accrual corporate loans with specific allowance	$	764	$	363	$	452	$	236
Non-accrual corporate loans without specific allowance
Commercial and industrial	$	500			$	351
Financial institutions	155				213
Mortgage and real estate	172				182
Lease financing	1				4
Other	4				—
Total non-accrual corporate loans without specific allowance	$	832	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 year ended December 31, 2013 was $43 million.

N/A Not Applicable

Corporate Troubled Debt Restructurings

The following table presents corporate TDR activity at and for the year ended December 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	$	120	$	67	$	—	$	53
Mortgage and real estate	47		3		—		44
Total	$	167	$	70	$	—	$	97

(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 year ended December 31, 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
Mortgage and real estate	8		5		1		2
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 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 markets loans, where default is defined as 90 days past due.



In millions of dollars	TDR balances at December 31, 2015		TDR loans in payment default during the year ended December 31, 2015		TDR balances at December 31, 2014		TDR loans in payment default during the year ended December 31, 2014
Commercial and industrial	$	135	$	—	$	117	$	—
Loans to financial institutions	5		1		—		—
Mortgage and real estate	138		—		107		—
Other	308		—		355		—
Total⁽¹⁾	$	586	$	1	$	579	$	—


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

Purchased Distressed Loans

Included in the corporate and consumer loans outstanding tables above are purchased distressed loans, which are loans that have evidenced significant credit deterioration subsequent to origination but prior to acquisition by Citigroup. In accordance with ASC 310-30, the difference between the total expected cash flows for these loans and the initial recorded investment is recognized in income over the life of the loans using a level yield. Accordingly, these loans have been excluded from the impaired loan table information presented above. In addition, per ASC 310-30, subsequent decreases in the expected cash flows for a purchased distressed loan require a build of an allowance so the loan retains its level yield. However, increases in the expected cash flows are first recognized as a reduction of any previously established allowance and then recognized as income prospectively over the remaining life of the loan by increasing the loan’s level yield. Where the expected cash flows cannot be reliably estimated, the purchased distressed loan is accounted for under the cost recovery method. The carrying amount of the Company’s purchased distressed loan portfolio was $234 million and $361 million, net of an allowance of $16 million and $60 million, at December 31, 2015 and 2014, respectively.

The changes in the accretable yield, related allowance and carrying amount net of accretable yield were as follows:



In millions of dollars	Accretable yield			Carrying amount of loan receivable			Allowance
Balance at December 31, 2013	$	107		$	703		$	113
Purchases⁽¹⁾	$	1		$	46		$	—
Disposals/payments received	(6		)	(307		)	(15		)
Accretion	(24		)	24			—
Builds (reductions) to the allowance	(36		)	—			(27		)
Increase to expected cash flows	23			—			—
FX translation/other	(9		)	(45		)	(11		)
Balance at December 31, 2014⁽²⁾	$	56		$	421		$	60
Purchases⁽¹⁾	$	3		$	54		$	—
Disposals/payments received	(5		)	(162		)	(9		)
Accretion	(13		)	13			—
Builds (reductions) to the allowance	—			—			9
Increase to expected cash flows	1			—			—
FX translation/other	(9		)	(76		)	(44		)
Balance at December 31, 2015⁽²⁾	$	33		$	250		$	16

(1)

The balance reported in the column “Carrying amount of loan receivable” consists of $54 million and $46 million in 2015 and 2014, respectively, of purchased loans accounted for under the level-yield method. No purchased loans were accounted for under the cost-recovery method. These balances represent the fair value of these loans at their acquisition date. The related total expected cash flows for the level-yield loans at their acquisition dates were $56 million and $46 million in 2015 and 2014, respectively.

(2) The balance reported in the column “Carrying amount of loan receivable” consists of $245 million and $413 million of loans accounted for under the level-yield method and $5 million and $8 million accounted for under the cost-recovery method in 2015 and 2014, respectively.