LOANS

9 Months Ended

Sep. 30, 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. For additional information regarding Citi’s consumer and corporate loans, including related accounting policies, see Note 15 to the Consolidated Financial Statements in Citi’s 2015 Annual Report on Form 10-K.

Consumer Loans

Consumer loans represent loans and leases managed primarily by GCB in Citicorp and in Citi Holdings. The following table provides Citi’s consumer loans by loan type:



In millions of dollars	September 30, 2016		December 31, 2015
In U.S. offices
Mortgage and real estate⁽¹⁾	$	75,057	$	80,281
Installment, revolving credit, and other	3,465		3,480
Cards⁽²⁾	124,637		112,800
Commercial and industrial	6,989		6,407
	$	210,148	$	202,968
In offices outside the U.S.
Mortgage and real estate⁽¹⁾	$	45,751	$	47,062
Installment, revolving credit, and other	28,217		29,480
Cards	25,833		27,342
Commercial and industrial	17,828		17,741
Lease financing	113		362
	$	117,742	$	121,987
Total consumer loans	$	327,890	$	324,955
Net unearned income	$	812	830
Consumer loans, net of unearned income	$	328,702	$	325,785


(1)	Loans secured primarily by real estate.


(2)	September 30, 2016 balance includes loans related to the acquisition of the Costco U.S. co-branded credit card portfolio, completed on June 17, 2016 in addition to subsequent activity.

During the three and nine months ended September 30, 2016 and 2015, the Company sold and/or reclassified to held-for-sale $1.3 billion and $6.0 billion, and $1.5 billion and $16.3 billion respectively, of consumer loans.

Consumer Loan Delinquency and Non-Accrual Details at September 30, 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	$	52,266	$	564	$	336	$	1,499	$	54,665	$	1,225	$	1,267
Home equity loans⁽⁵⁾	19,324		261		434		—		20,019		728		—
Credit cards	122,592		1,460		1,271		—		125,323		—		1,271
Installment and other	4,647		64		38		—		4,749		69		—
Commercial banking loans	8,627		23		141		—		8,791		407		12
Total	$	207,456	$	2,372	$	2,220	$	1,499	$	213,547	$	2,429	$	2,550
In offices outside North America
Residential first mortgages	$	38,433	$	244	$	158	$	—	$	38,835	$	392	$	—
Credit cards	24,270		438		391		—		25,099		258		260
Installment and other	25,632		334		140		—		26,106		314		—
Commercial banking loans	24,981		13		117		—		25,111		158		—
Total	$	113,316	$	1,029	$	806	$	—	$	115,151	$	1,122	$	260
Total GCB and Citi Holdings consumer	$	320,772	$	3,401	$	3,026	$	1,499	$	328,698	$	3,551	$	2,810
Other⁽⁶⁾	4		—		—		—		4		1		—
Total Citigroup	$	320,776	$	3,401	$	3,026	$	1,499	$	328,702	$	3,552	$	2,810


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


(2)	Includes $31 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 $1.3 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)

The following tables provide details on the FICO scores for Citi’s U.S. consumer loan portfolio (commercial banking loans are excluded since they are business based and FICO scores are not a primary driver in their credit evaluation). FICO scores are updated monthly for substantially all of the portfolio or, otherwise, on a quarterly basis for the remaining portfolio.



FICO score distribution in U.S. portfolio⁽¹⁾⁽²⁾	September 30, 2016
In millions of dollars	Less than 620		≥ 620 but less than 660		Equal to or greater than 660
Residential first mortgages	$	2,817	$	2,615	$	45,203
Home equity loans	1,751		1,502		15,600
Credit cards	7,660		10,484		103,781
Installment and other	326		269		2,649
Total	$	12,554	$	14,870	$	167,233



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

The following tables provide details on the LTV ratios (loan balance divided by appraised value) for 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⁾	September 30, 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	$	47,092	$	3,299	$	315
Home equity loans	13,358		3,974		1,425
Total	$	60,450	$	7,273	$	1,740



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

The following tables present information about impaired consumer loans and interest income recognized on impaired consumer loans:



									Three months ended September 30,				Nine months ended September 30,
	Balance at September 30, 2016								2016		2015		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⁾		Interest income recognized⁽⁵⁾		Interest income recognized⁽⁵⁾
Mortgage and real estate
Residential first mortgages	$	4,314	$	4,752	$	578	$	5,195	$	31	$	107	$	135	$	359
Home equity loans	1,311		1,830		200		1,351		8		16		26		50
Credit cards	1,830		1,865		580		1,882		42		47		122		135
Installment and other
Individual installment and other	480		516		236		478		8		8		22		47
Commercial banking loans	589		918		113		498		7		4		11		10
Total	$	8,524	$	9,881	$	1,707	$	9,404	$	96	$	182	$	316	$	601


(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)	$1,068 million of residential first mortgages, $416 million of home equity loans and $98 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



	At and for the three months ended September 30, 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	1,165	$	165	$	1	$	—	$	1	1	%
Home equity loans	1,117	61		—		—		—		2
Credit cards	51,260	199		—		—		—		18
Installment and other revolving	1,421	12		—		—		—		14
Commercial markets⁽⁶⁾	30	36		—		—		—		—
Total⁽⁸⁾	54,993	$	473	$	1	$	—	$	1
International
Residential first mortgages	973	24		—		—		—		—	%
Credit cards	28,530	94		—		—		2		12
Installment and other revolving	12,283	69		—		—		2		8
Commercial markets⁽⁶⁾	44	39		—		—		—		—
Total⁽⁸⁾	41,830	$	226	$	—	$	—	$	4



	At and for the three months ended September 30, 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	2,282	$	305	$	2	$	1	$	7	1	%
Home equity loans	1,021	36		—		—		—		2
Credit cards	44,972	186		—		—		—		16
Installment and other revolving	1,035	9		—		—		—		13
Commercial markets⁽⁶⁾	89	10		—		—		—		—
Total⁽⁸⁾	49,399	$	546	$	2	$	1	$	7
International
Residential first mortgages	1,322	30		—		—		—		—	%
Credit cards	32,774	87		—		—		2		13
Installment and other revolving	19,283	76		—		—		1		5
Commercial markets⁽⁶⁾	37	11		—		—		—		—
Total⁽⁸⁾	53,416	$	204	$	—	$	—	$	3


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

(2)

Post-modification balances in North America include $17 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 September 30, 2016. These amounts include $11 million of residential first mortgages and $5 million of home equity loans that were newly classified as TDRs in the three months ended September 30, 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 $54 million of residential first mortgages and $17 million of home equity loans to borrowers who have gone through Chapter 7 bankruptcy in the three months ended September 30, 2015. These amounts include $34 million of residential first mortgages and $14 million of home equity loans that were newly classified as TDRs in the three months ended September 30, 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.



	At and for the nine months ended September 30, 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	3,979	$	582	$	4	$	—	$	3	1	%
Home equity loans	2,789	121		1		—		—		2
Credit cards	143,161	552		—		—		—		17
Installment and other revolving	4,187	35		—		—		—		14
Commercial banking⁽⁶⁾	94	47		—		—		—		—
Total⁽⁸⁾	154,210	$	1,337	$	5	$	—	$	3
International
Residential first mortgages	2,005	$	62	$	—	$	—	$	—	—	%
Credit cards	109,365	307		—		—		7		12
Installment and other revolving	45,125	208		—		—		6		7
Commercial banking⁽⁶⁾	117	90		—		—		—		—
Total⁽⁸⁾	156,612	$	667	$	—	$	—	$	13



	At and for the nine months ended September 30, 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	8,084	$	1,078	$	7	$	3	$	23	1	%
Home equity loans	3,571	126		1		—		3		2
Credit cards	140,130	582		—		—		—		16
Installment and other revolving	3,111	27		—		—		—		13
Commercial banking⁽⁶⁾	245	39		—		—		—		—
Total⁽⁸⁾	155,141	$	1,852	$	8	$	3	$	26
International
Residential first mortgages	2,963	$	80	$	—	$	—	$	—	—	%
Credit cards	110,792	288		—		—		5		13
Installment and other revolving	48,397	207		—		—		5		5
Commercial banking⁽⁶⁾	163	61		—		—		—		1
Total⁽⁸⁾	162,315	$	636	$	—	$	—	$	10


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

(2)

Post-modification balances in North America include $58 million of residential first mortgages and $14 million of home equity loans to borrowers who have gone through Chapter 7 bankruptcy in the nine months ended September 30, 2016. These amounts include $38 million of residential first mortgages and $14 million of home equity loans that were newly classified as TDRs in the nine months ended September 30, 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 $181 million of residential first mortgages and $46 million of home equity loans to borrowers who have gone through Chapter 7 bankruptcy in the nine months ended September 30, 2015. These amounts include $107 million of residential first mortgages and $39 million of home equity loans that were newly classified as TDRs in the nine months ended September 30, 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 September 30,				Nine Months Ended September 30,
In millions of dollars	2016		2015		2016		2015
North America
Residential first mortgages	$	49	$	101	$	188	$	329
Home equity loans	6		9		20		30
Credit cards	43		47		139		139
Installment and other revolving	3		2		7		6
Commercial banking	12		1		14		5
Total	$	113	$	160	$	368	$	509
International
Residential first mortgages	$	3	$	5	$	9	$	17
Credit cards	41		34		115		106
Installment and other revolving	24		20		70		66
Commercial banking	21		7		36		16
Total	$	89	$	66	$	230	$	205

Corporate Loans

Corporate loans represent loans and leases managed by ICG. The following table presents Citi’s corporate loans

by loan type:



In millions of dollars	September 30, 2016			December 31, 2015
In U.S. offices
Commercial and industrial	$	50,156		$	41,147
Financial institutions	35,801			36,396
Mortgage and real estate⁽¹⁾	41,078			37,565
Installment, revolving credit and other	32,571			33,374
Lease financing	1,532			1,780
	$	161,138		$	150,262
In offices outside the U.S.
Commercial and industrial	$	84,162		$	82,358
Financial institutions	27,305			28,704
Mortgage and real estate⁽¹⁾	5,595			5,106
Installment, revolving credit and other	25,462			20,853
Lease financing	243			303
Governments and official institutions	6,506			4,911
	$	149,273		$	142,235
Total corporate loans	$	310,411		$	292,497
Net unearned income	(678		)	(665		)
Corporate loans, net of unearned income	$	309,733		$	291,832


(1)	Loans secured primarily by real estate.

The Company sold and/or reclassified to held-for-sale $1.3 billion and $2.6 billion of corporate loans during the three and nine months ended September 30, 2016, respectively and $0.5 billion and $1.6 billion during the three and nine months ended September 30, 2015, respectively. The Company did not have significant purchases of corporate loans classified as held-for-investment for the three and nine months ended September 30, 2016 or 2015.

Corporate Loan Delinquency and Non-Accrual Details at September 30, 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	$	208	$	4	$	212	$	1,940	$	129,531	$	131,683
Financial institutions	—		—		—		189		62,283		62,472
Mortgage and real estate	351		—		351		169		46,051		46,571
Leases	131		48		179		58		1,537		1,774
Other	269		1		270		59		62,965		63,294
Loans at fair value											3,939
Purchased distressed loans											—
Total	$	959	$	53	$	1,012	$	2,415	$	302,367	$	309,733

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


(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.

Corporate Loans Credit Quality Indicators



	Recorded investment in loans⁽¹⁾
In millions of dollars	September 30, 2016		December 31, 2015
Investment grade⁽²⁾
Commercial and industrial	$	88,871	$	85,828
Financial institutions	50,485		53,522
Mortgage and real estate	21,477		18,869
Leases	1,283		1,725
Other	55,215		51,449
Total investment grade	$	217,331	$	211,393
Non-investment grade⁽²⁾
Accrual
Commercial and industrial	$	40,871	$	32,726
Financial institutions	11,799		10,622
Mortgage and real estate	2,145		2,800
Leases	434		282
Other	8,019		6,867
Non-accrual
Commercial and industrial	1,940		1,071
Financial institutions	189		173
Mortgage and real estate	169		232
Leases	58		76
Other	59		44
Total non-investment grade	$	65,683	$	54,893
Private bank loans managed on a delinquency basis⁽²⁾	$	22,780	$	20,575
Loans at fair value	3,939		4,971
Corporate loans, net of unearned income	$	309,733	$	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.

Non-Accrual Corporate Loans

The following tables present non-accrual corporate loans and interest income recognized on non-accrual corporate loans:



	September 30, 2016								Three Months Ended September 30, 2016		Nine Months Ended September 30, 2016
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	$	1,940	$	2,216	$	427	$	1,709	$	5	$	22
Financial institutions	189		196		8		180		—		3
Mortgage and real estate	169		288		18		197		3		6
Lease financing	58		58		1		49		—		—
Other	59		142		27		65		2		5
Total non-accrual corporate loans	$	2,415	$	2,900	$	481	$	2,200	$	10	$	36



	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



	September 30, 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	$	1,616	$	427	$	571	$	246
Financial institutions	37		8		18		10
Mortgage and real estate	50		18		60		21
Lease financing	58		1		75		54
Other	53		27		40		32
Total non-accrual corporate loans with specific allowance	$	1,814	$	481	$	764	$	363
Non-accrual corporate loans without specific allowance
Commercial and industrial	$	324			$	500
Financial institutions	152				155
Mortgage and real estate	119				172
Lease financing	—				1
Other	6				4
Total non-accrual corporate loans without specific allowance	$	601	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- and six-month periods ended September 30, 2015 was $2 million and $7 million, respectively.

Corporate Troubled Debt Restructurings

At and for the three months ended September 30, 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	$	112	$	103	$	2	$	7
Financial institutions	10		10		—		—
Mortgage and real estate	2		1		—		1
Other	—		—		—		—
Total	$	124	$	114	$	2	$	8

At and for the three months ended September 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	$	13	$	12	$	—	$	1
Mortgage and real estate	35		1		—		34
Total	$	48	$	13	$	—	$	35

At and for the nine months ended September 30, 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	$	316	$	176	$	34	$	106
Financial institutions	10		10		—		—
Mortgage and real estate	7		1		—		6
Other	142		—		142		—
Total	$	475	$	187	$	176	$	112

At and for the nine months ended September 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	$	79	$	45	$	—	$	34
Mortgage and real estate	47		3		—		44
Total	$	126	$	48	$	—	$	78

(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 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 September 30, 2016		TDR loans in payment default during the three months ended September 30, 2016		TDR loans in payment default nine months ended September 30, 2016		TDR balances at September 30, 2015		TDR loans in payment default during the three months ended September 30, 2015		TDR loans in payment default nine months ended September 30, 2015
Commercial and industrial	$	394	$	—	$	7	$	126	$	—	$	—
Loans to financial institutions	10		—		—		1		—		1
Mortgage and real estate	80		—		—		144		—		—
Other	291		—		—		316		—		—
Total⁽¹⁾	$	775	$	—	$	7	$	587	$	—	$	1


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