LOANS (Tables)

9 Months Ended

Sep. 30, 2017

The following table provides Citi’s consumer loans by loan type:



In millions of dollars	September 30, 2017		December 31, 2016
In U.S. offices
Mortgage and real estate⁽¹⁾	$	67,131	$	72,957
Installment, revolving credit and other	3,191		3,395
Cards	131,476		132,654
Commercial and industrial	7,619		7,159
	$	209,417	$	216,165
In offices outside the U.S.
Mortgage and real estate⁽¹⁾	$	43,723	$	42,803
Installment, revolving credit and other	26,153		24,887
Cards	25,443		23,783
Commercial and industrial	20,015		16,568
Lease financing	77		81
	$	115,411	$	108,122
Total consumer loans	$	324,828	$	324,287
Net unearned income	$	748	776
Consumer loans, net of unearned income	$	325,576	$	325,063


(1)	Loans secured primarily by real estate.

Schedule of loan delinquency and non-accrual details

Consumer Loan Delinquency and Non-Accrual Details at September 30, 2017



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⁽⁵⁾	$	48,090	$	563	$	286	$	1,279	$	50,218	$	724	$	985
Home equity loans⁽⁶⁾⁽⁷⁾	15,004		223		362		—		15,589		766		—
Credit cards	129,261		1,541		1,440		—		132,242		—		1,440
Installment and other	3,456		42		15		—		3,513		21		—
Commercial banking	9,294		38		52		—		9,384		210		11
Total	$	205,105	$	2,407	$	2,155	$	1,279	$	210,946	$	1,721	$	2,436
In offices outside North America
Residential first mortgages⁽⁵⁾	$	36,796	$	225	$	153	$	—	$	37,174	$	400	$	—
Credit cards	24,109		433		366		—		24,908		322		251
Installment and other	25,207		283		124		—		25,614		164		—
Commercial banking	26,788		58		86		—		26,932		176		—
Total	$	112,900	$	999	$	729	$	—	$	114,628	$	1,062	$	251
Total GCB and Corporate/Other consumer	$	318,005	$	3,406	$	2,884	$	1,279	$	325,574	$	2,783	$	2,687
Other⁽⁸⁾	2		—		—		—		2		—		—
Total Citigroup	$	318,007	$	3,406	$	2,884	$	1,279	$	325,576	$	2,783	$	2,687


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


(2)	Includes $27 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 $1.0 billion.


(5)	Includes approximately $0.1 billion of residential first mortgage loans in process of foreclosure.


(6)	Includes approximately $0.1 billion of home equity loans in process of foreclosure.


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


(8)	Represents loans classified as consumer loans on the Consolidated Balance Sheet that are not included in the Corporate/Other consumer credit metrics.

Consumer Loan Delinquency and Non-Accrual Details at December 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⁽⁵⁾	$	50,766	$	522	$	371	$	1,474	$	53,133	$	848	$	1,227
Home equity loans⁽⁶⁾⁽⁷⁾	18,767		249		438		—		19,454		914		—
Credit cards	130,327		1,465		1,509		—		133,301		—		1,509
Installment and other	4,486		106		38		—		4,630		70		2
Commercial banking	8,876		23		74		—		8,973		328		14
Total	$	213,222	$	2,365	$	2,430	$	1,474	$	219,491	$	2,160	$	2,752
In offices outside North America
Residential first mortgages⁽⁵⁾	$	35,862	$	206	$	135	$	—	$	36,203	$	360	$	—
Credit cards	22,363		368		324		—		23,055		258		239
Installment and other	22,683		264		126		—		23,073		163		—
Commercial banking	23,054		72		112		—		23,238		217		—
Total	$	103,962	$	910	$	697	$	—	$	105,569	$	998	$	239
Total GCB and Corporate/Other consumer	$	317,184	$	3,275	$	3,127	$	1,474	$	325,060	$	3,158	$	2,991
Other⁽⁸⁾	3		—		—		—		3		—		—
Total Citigroup	$	317,187	$	3,275	$	3,127	$	1,474	$	325,063	$	3,158	$	2,991


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


(2)	Includes $29 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)	Includes approximately $0.1 billion of residential first mortgage loans in process of foreclosure.


(6)	Includes approximately $0.1 billion of home equity loans in process of foreclosure.


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


(8)	Represents loans classified as consumer loans on the Consolidated Balance Sheet that are not included in the Corporate/Other consumer credit metrics.

Schedule of loans credit quality indicators

The following tables provide details on the LTV ratios 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, 2017
In millions of dollars	Less than or equal to 80%		> 80% but less than or equal to 100%		Greater than 100%
Residential first mortgages	$	44,253	$	2,658	$	262
Home equity loans	11,808		2,397		928
Total	$	56,061	$	5,055	$	1,190



LTV distribution in U.S. portfolio⁽¹⁾⁽²⁾	December 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	$	45,849	$	3,467	$	324
Home equity loans	12,869		3,653		1,305
Total	$	58,718	$	7,120	$	1,629


(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.

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



FICO score distribution in U.S. portfolio⁽¹⁾⁽²⁾	September 30, 2017
In millions of dollars	Less than 620		≥ 620 but less than 660		Equal to or greater than 660
Residential first mortgages	$	2,275	$	2,053	$	42,682
Home equity loans	1,432		1,166		12,622
Credit cards	8,699		11,325		108,809
Installment and other	270		252		2,414
Total	$	12,676	$	14,796	$	166,527



FICO score distribution in U.S. portfolio⁽¹⁾⁽²⁾	December 31, 2016
In millions of dollars	Less than 620		≥ 620 but less than 660		Equal to or greater than 660
Residential first mortgages	$	2,744	$	2,422	$	44,279
Home equity loans	1,750		1,418		14,743
Credit cards	8,310		11,320		110,522
Installment and other	284		271		2,601
Total	$	13,088	$	15,431	$	172,145


(1)	Excludes loans guaranteed by U.S. government entities, loans subject to long-term standby commitments (LTSC) 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.

Schedule of impaired 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, 2017								2017		2016		2017		2016
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	$	2,938	$	3,161	$	289	$	3,383	$	29	$	31	$	97	$	135
Home equity loans	1,169		1,636		219		1,217		7		8		21		26
Credit cards	1,819		1,852		603		1,793		37		42		110		122
Installment and other
Individual installment and other	429		456		177		421		5		8		18		22
Commercial banking	402		657		49		474		4		7		18		11
Total	$	6,757	$	7,762	$	1,337	$	7,288	$	82	$	96	$	264	$	316


(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)	$622 million of residential first mortgages, $376 million of home equity loans and $88 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, 2016
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	$	3,786	$	4,157	$	540	$	4,632
Home equity loans	1,298		1,824		189		1,326
Credit cards	1,747		1,781		566		1,831
Installment and other
Individual installment and other	455		481		215		475
Commercial banking	513		744		98		538
Total	$	7,799	$	8,987	$	1,608	$	8,802


(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)	$740 million of residential first mortgages, $406 million of home equity loans and $97 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.

Schedule of troubled debt restructurings



	At and for the three months ended September 30, 2017
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	1,400	$	199	$	1	$	—	$	—	—	%
Home equity loans	830	70		5		—		—		1
Credit cards	59,285	225		—		—		—		17
Installment and other revolving	299	2		—		—		—		6
Commercial banking⁽⁶⁾	33	59		—		—		—		—
Total⁽⁸⁾	61,847	$	555	$	6	$	—	$	—
International
Residential first mortgages	703	$	25	$	—	$	—	$	—	—	%
Credit cards	28,254	103		—		—		2		11
Installment and other revolving	11,725	70		—		—		3		11
Commercial banking⁽⁶⁾	97	11		—		—		—		—
Total⁽⁸⁾	40,779	$	209	$	—	$	—	$	5



	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⁾⁽⁷⁾		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 banking⁽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 banking⁽⁶⁾	44	39		—		—		—		—
Total⁽⁸⁾	41,830	$	226	$	—	$	—	$	4


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

(2)

Post-modification balances in North America include $12 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, 2017. These amounts include $7 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, 2017, 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 $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.

(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, 2017
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	3,172	$	445	$	5	$	—	$	2	1	%
Home equity loans	2,186	185		13		—		—		1
Credit cards	171,702	659		—		—		—		17
Installment and other revolving	770	6		—		—		—		5
Commercial banking⁽⁶⁾	89	107		—		—		—		—
Total⁽⁸⁾	177,919	$	1,402	$	18	$	—	$	2
International
Residential first mortgages	2,071	$	80	$	—	$	—	$	—	—	%
Credit cards	82,042	286		—		—		6		12
Installment and other revolving	34,654	194		—		—		9		9
Commercial banking⁽⁶⁾	182	30		—		—		—		—
Total⁽⁸⁾	118,949	$	590	$	—	$	—	$	15



	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⁾⁽⁷⁾		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


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

(2)

Post-modification balances in North America include $42 million of residential first mortgages and $16 million of home equity loans to borrowers who have gone through Chapter 7 bankruptcy in the nine months ended September 30, 2017. These amounts include $28 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, 2017, 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 $58 million of residential first mortgages and $15 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.

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

Schedule of troubled debt restructuring loans that defaulted

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	2017		2016		2017		2016
North America
Residential first mortgages	$	57	$	49	$	156	$	188
Home equity loans	8		6		25		20
Credit cards	54		43		163		139
Installment and other revolving	1		3		2		7
Commercial banking	—		12		2		14
Total	$	120	$	113	$	348	$	368
International
Residential first mortgages	$	3	$	3	$	8	$	9
Credit cards	48		41		136		115
Installment and other revolving	25		24		71		70
Commercial banking	—		21		—		36
Total	$	76	$	89	$	215	$	230

Corporate

Loans receivable

Schedule of loans

The following table presents information by corporate loan type:



In millions of dollars	September 30, 2017			December 31, 2016
In U.S. offices
Commercial and industrial	$	51,679		$	49,586
Financial institutions	37,203			35,517
Mortgage and real estate⁽¹⁾	43,274			38,691
Installment, revolving credit and other	32,464			34,501
Lease financing	1,493			1,518
	$	166,113		$	159,813
In offices outside the U.S.
Commercial and industrial	$	93,107		$	81,882
Financial institutions	33,050			26,886
Mortgage and real estate⁽¹⁾	6,383			5,363
Installment, revolving credit and other	23,830			19,965
Lease financing	216			251
Governments and official institutions	5,628			5,850
	$	162,214		$	140,197
Total corporate loans	$	328,327		$	300,010
Net unearned income	$	(720	)	$	(704	)
Corporate loans, net of unearned income	$	327,607		$	299,306


(1)	Loans secured primarily by real estate.

Schedule of loan delinquency and non-accrual details

Corporate Loan Delinquency and Non-Accrual Details at September 30, 2017



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	$	58	$	266	$	1,468	$	139,508	$	141,242
Financial institutions	348		1		349		224		69,232		69,805
Mortgage and real estate	280		9		289		169		49,176		49,634
Leases	31		18		49		60		1,590		1,699
Other	402		30		432		133		60,381		60,946
Loans at fair value											4,281
Purchased distressed loans											—
Total	$	1,269	$	116	$	1,385	$	2,054	$	319,887	$	327,607

Corporate Loan Delinquency and Non-Accrual Details at December 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	$	143	$	52	$	195	$	1,909	$	127,012	$	129,116
Financial institutions	119		2		121		185		61,254		61,560
Mortgage and real estate	148		137		285		139		43,607		44,031
Leases	27		8		35		56		1,678		1,769
Other	349		12		361		132		58,880		59,373
Loans at fair value											3,457
Purchased distressed loans											—
Total	$	786	$	211	$	997	$	2,421	$	292,431	$	299,306


(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)	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.

Schedule of loans credit quality indicators



	Recorded investment in loans⁽¹⁾
In millions of dollars	September 30, 2017		December 31, 2016
Investment grade⁽²⁾
Commercial and industrial	$	100,024	$	87,201
Financial institutions	58,666		50,597
Mortgage and real estate	22,102		18,718
Leases	1,117		1,303
Other	55,231		52,828
Total investment grade	$	237,140	$	210,647
Non-investment grade⁽²⁾
Accrual
Commercial and industrial	$	39,750	$	39,874
Financial institutions	10,916		10,873
Mortgage and real estate	2,256		1,821
Leases	522		410
Other	5,580		6,450
Non-accrual
Commercial and industrial	1,468		1,909
Financial institutions	224		185
Mortgage and real estate	169		139
Leases	60		56
Other	133		132
Total non-investment grade	$	61,078	$	61,849
Non-rated private bank loans managed on a delinquency basis⁽²⁾	$	25,108	$	23,353
Loans at fair value	4,281		3,457
Corporate loans, net of unearned income	$	327,607	$	299,306


(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.

Schedule of impaired loans

The following tables present non-accrual loan information by corporate loan type and interest income recognized on non-accrual corporate loans:



	September 30, 2017								Three Months Ended September 30, 2017		Nine Months Ended September 30, 2017
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	$	1,468	$	1,682	$	336	$	1,648	$	10	$	20
Financial institutions	224		340		27		236		—		—
Mortgage and real estate	169		293		9		169		—		9
Lease financing	60		60		4		62		—		—
Other	133		240		1		115		1		1
Total non-accrual corporate loans	$	2,054	$	2,615	$	377	$	2,230	$	11	$	30



	December 31, 2016
In millions of dollars	Recorded investment⁽¹⁾		Unpaid principal balance		Related specific allowance		Average carrying value⁽²⁾
Non-accrual corporate loans
Commercial and industrial	$	1,909	$	2,259	$	362	$	1,919
Financial institutions	185		192		16		183
Mortgage and real estate	139		250		10		174
Lease financing	56		56		4		44
Other	132		197		—		87
Total non-accrual corporate loans	$	2,421	$	2,954	$	392	$	2,407



	September 30, 2017				December 31, 2016
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	$	919	$	336	$	1,343	$	362
Financial institutions	58		27		45		16
Mortgage and real estate	34		9		41		10
Lease financing	48		4		55		4
Other	3		1		1		—
Total non-accrual corporate loans with specific allowance	$	1,062	$	377	$	1,485	$	392
Non-accrual corporate loans without specific allowance
Commercial and industrial	$	549			$	566
Financial institutions	166				140
Mortgage and real estate	135				98
Lease financing	12				1
Other	130				131
Total non-accrual corporate loans without specific allowance	$	992	N/A		$	936	N/A


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


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


(3)	Interest income recognized for the three- and nine-month periods ended September 30, 2016 was $10 million and $36 million.

Schedule of troubled debt restructurings

At and for the three months ended September 30, 2017:



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	$	175	$	99	$	—	$	76
Mortgage and real estate	14		—		—		14
Total	$	189	$	99	$	—	$	90

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
Total	$	124	$	114	$	2	$	8

At and for the nine months ended September 30, 2017:



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	$	463	$	131	$	—	$	332
Financial institutions	15		—		—		15
Mortgage and real estate	18		—		—		18
Total	$	496	$	131	$	—	$	365

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

(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 corporate 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.

Schedule of troubled debt restructuring loans that defaulted

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, 2017		TDR loans in payment default during the three months ended September 30, 2017		TDR loans in payment default nine months ended September 30, 2017		TDR balances at September 30, 2016		TDR loans in payment default during the three months ended September 30, 2016		TDR loans in payment default during the nine months ended September 30, 2016
Commercial and industrial	$	686	$	—	$	12	$	394	$	—	$	7
Loans to financial institutions	24		—		3		10		—		—
Mortgage and real estate	84		—		—		80		—		—
Other	155		—		—		291		—		—
Total⁽¹⁾	$	949	$	—	$	15	$	775	$	—	$	7


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