LOANS

6 Months Ended

Jun. 30, 2018

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 14 to the Consolidated Financial Statements in Citi’s 2017 Annual Report on Form 10-K.

Consumer Loans

Consumer loans represent loans and leases managed primarily by GCB and Corporate/Other. The following table provides Citi’s consumer loans by loan type:



In millions of dollars	June 30, 2018		December 31, 2017
In U.S. offices
Mortgage and real estate⁽¹⁾	$	61,692	$	65,467
Installment, revolving credit and other	3,759		3,398
Cards	135,968		139,006
Commercial and industrial	7,459		7,840
	$	208,878	$	215,711
In offices outside the U.S.
Mortgage and real estate⁽¹⁾	$	43,056	$	44,081
Installment, revolving credit and other	27,254		26,556
Cards	24,712		26,257
Commercial and industrial	18,966		20,238
Lease financing	55		76
	$	114,043	$	117,208
Total consumer loans	$	322,921	$	332,919
Net unearned income	$	711	$	737
Consumer loans, net of unearned income	$	323,632	$	333,656


(1)	Loans secured primarily by real estate.

The Company sold and/or reclassified to held-for-sale $1.9 billion and $2.8 billion, $0.6 billion and $2.8 billion of consumer loans during the three and six months ended June 30, 2018 and 2017, respectively.

Consumer Loan Delinquency and Non-Accrual Details at June 30, 2018



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⁾	$	46,314	$	404	$	255	$	931	$	47,904	$	619	$	673
Home equity loans⁽⁶⁾⁽⁷⁾	12,420		155		286		—		12,861		606		—
Credit cards	133,860		1,388		1,493		—		136,741		—		1,493
Installment and other	3,402		38		13		—		3,453		20		—
Commercial banking loans	9,054		10		40		—		9,104		128		—
Total	$	205,050	$	1,995	$	2,087	$	931	$	210,063	$	1,373	$	2,166
In offices outside North America
Residential first mortgages⁽⁵⁾	$	35,789	$	205	$	140	$	—	$	36,134	$	382	$	—
Credit cards	23,389		416		352		—		24,157		312		227
Installment and other	24,772		243		109		—		25,124		144		—
Commercial banking loans	28,027		54		72		—		28,153		172		—
Total	$	111,977	$	918	$	673	$	—	$	113,568	$	1,010	$	227
Total GCB and Corporate/Other— Consumer	$	317,027	$	2,913	$	2,760	$	931	$	323,631	$	2,383	$	2,393
Other⁽⁸⁾	1		—		—		—		1		—		—
Total Citigroup	$	317,028	$	2,913	$	2,760	$	931	$	323,632	$	2,383	$	2,393


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


(2)	Includes $22 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 $0.7 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 GCB or Corporate/Other consumer credit metrics.

Consumer Loan Delinquency and Non-Accrual Details at December 31, 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⁾	$	47,366	$	505	$	280	$	1,225	$	49,376	$	665	$	941
Home equity loans⁽⁶⁾⁽⁷⁾	14,268		207		352		—		14,827		750		—
Credit cards	136,588		1,528		1,613		—		139,729		—		1,596
Installment and other	3,395		45		16		—		3,456		22		1
Commercial banking loans	9,395		51		65		—		9,511		213		—
Total	$	211,012	$	2,336	$	2,326	$	1,225	$	216,899	$	1,650	$	2,538
In offices outside North America
Residential first mortgages⁽⁵⁾	$	37,062	$	209	$	148	$	—	$	37,419	$	400	$	—
Credit cards	24,934		427		366		—		25,727		323		259
Installment and other	25,634		275		123		—		26,032		157		—
Commercial banking loans	27,449		57		72		—		27,578		160		—
Total	$	115,079	$	968	$	709	$	—	$	116,756	$	1,040	$	259
Total GCB and Corporate/Other— Consumer	$	326,091	$	3,304	$	3,035	$	1,225	$	333,655	$	2,690	$	2,797
Other⁽⁸⁾	1		—		—		—		1		—		—
Total Citigroup	$	326,092	$	3,304	$	3,035	$	1,225	$	333,656	$	2,690	$	2,797


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


(2)	Includes $25 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 $1.0 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 GCB or Corporate/Other consumer credit metrics.

Consumer Credit Scores (FICO)

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⁾	June 30, 2018
In millions of dollars	Less than 620		≥ 620 but less than 660		≥ 660 but less than 720		Equal to or greater than 720
Residential first mortgages	$	1,707	$	1,626	$	6,421	$	35,465
Home equity loans	1,085		906		2,946		7,274
Credit cards	8,682		11,129		38,544		74,911
Installment and other	147		242		708		1,685
Total	$	11,621	$	13,903	$	48,619	$	119,335



FICO score distribution in U.S. portfolio⁽¹⁾⁽²⁾	December 31, 2017
In millions of dollars	Less than 620		≥ 620 but less than 660		≥ 660 but less than 720		Equal to or greater than 720
Residential first mortgages	$	2,100	$	1,932	$	6,931	$	35,334
Home equity loans	1,379		1,081		3,446		8,530
Credit cards	9,079		11,651		37,916		77,661
Installment and other	276		250		667		1,818
Total	$	12,834	$	14,914	$	48,960	$	123,343


(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.

Loan to Value (LTV) Ratios

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⁾	June 30, 2018
In millions of dollars	Less than or equal to 80%		> 80% but less than or equal to 100%		Greater than 100%
Residential first mortgages	$	42,778	$	2,382	$	189
Home equity loans	9,972		1,610		553
Total	$	52,750	$	3,992	$	742



LTV distribution in U.S. portfolio⁽¹⁾⁽²⁾	December 31, 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	$	43,626	$	2,578	$	247
Home equity loans	11,403		2,147		800
Total	$	55,029	$	4,725	$	1,047


(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 June 30,				Six Months Ended June 30,
	Balance at June 30, 2018								2018		2017		2018		2017
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	$	2,489	$	2,674	$	233	$	2,831	$	21	$	32	$	42	$	68
Home equity loans	730		1,073		136		931		2		7		8		15
Credit cards	1,794		1,824		621		1,812		25		36		55		73
Installment and other
Individual installment and other	405		434		166		427		6		5		12		13
Commercial banking	307		463		29		333		5		8		8		14
Total	$	5,725	$	6,468	$	1,185	$	6,334	$	59	$	88	$	125	$	183


(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)	$521 million of residential first mortgages, $295 million of home equity loans and $14 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, 2017
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	$	2,877	$	3,121	$	278	$	3,155
Home equity loans	1,151		1,590		216		1,181
Credit cards	1,787		1,819		614		1,803
Installment and other
Individual installment and other	431		460		175		415
Commercial banking	334		541		51		429
Total	$	6,580	$	7,531	$	1,334	$	6,983


(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)	$607 million of residential first mortgages, $370 million of home equity loans and $10 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 June 30, 2018
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	495	$	77	$	1	$	—	$	—	—	%
Home equity loans	380	37		1		—		—		1
Credit cards	55,459	220		—		—		—		17
Installment and other revolving	292	2		—		—		—		5
Commercial banking⁽⁶⁾	17	1		—		—		—		—
Total⁽⁸⁾	56,643	$	337	$	2	$	—	$	—
International
Residential first mortgages	624	$	22	$	—	$	—	$	—	—	%
Credit cards	17,782	78		—		—		2		16
Installment and other revolving	7,172	43		—		—		2		11
Commercial banking⁽⁶⁾	157	22		—		—		—		—
Total⁽⁸⁾	25,735	$	165	$	—	$	—	$	4



	At and for the three months ended June 30, 2017
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	806	$	116	$	1	$	—	$	1	1	%
Home equity loans	677	58		5		—		—		2
Credit cards	53,080	203		—		—		—		17
Installment and other revolving	250	2		—		—		—		5
Commercial banking⁽⁶⁾	30	43		—		—		—		—
Total⁽⁸⁾	54,843	$	422	$	6	$	—	$	1
International
Residential first mortgages	755	$	28	$	—	$	—	$	—	—	%
Credit cards	28,551	98		—		—		2		12
Installment and other revolving	11,622	64		—		—		2		9
Commercial banking⁽⁶⁾	53	6		—		—		—		—
Total⁽⁸⁾	40,981	$	196	$	—	$	—	$	4


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

(2)

Post-modification balances in North America include $8 million of residential first mortgages and $3 million of home equity loans to borrowers who have gone through Chapter 7 bankruptcy in the three months ended June 30, 2018. These amounts include $5 million of residential first mortgages and $3 million of home equity loans that were newly classified as TDRs in the three months ended June 30, 2018, 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 $15 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 June 30, 2017. These amounts include $11 million of residential first mortgages and $4 million of home equity loans that were newly classified as TDRs in the three months ended June 30, 2017, 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 six months ended June 30, 2018
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	1,083	$	166	$	1	$	—	$	—	—	%
Home equity loans	836	78		3		—		—		1
Credit cards	118,662	464		—		—		—		17
Installment and other revolving	634	5		—		—		—		5
Commercial banking⁽⁶⁾	26	2		—		—		—		—
Total⁽⁸⁾	121,241	$	715	$	4	$	—	$	—
International
Residential first mortgages	1,173	$	41	$	—	$	—	$	—	—	%
Credit cards	41,176	173		—		—		5		16
Installment and other revolving	16,497	102		—		—		4		10
Commercial banking⁽⁶⁾	302	50		—		—		—		(1	)
Total⁽⁸⁾	59,148	$	366	$	—	$	—	$	9



	At and for the six months ended June 30, 2017
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	1,772	$	246	$	4	$	—	$	1	1	%
Home equity loans	1,356	114		8		—		—		1
Credit cards	112,417	433		—		—		—		17
Installment and other revolving	471	4		—		—		—		5
Commercial banking⁽⁶⁾	56	48		—		—		—		—
Total⁽⁸⁾	116,072	$	845	$	12	$	—	$	1
International
Residential first mortgages	1,368	$	54	$	—	$	—	$	—	—	%
Credit cards	53,788	183		—		—		4		13
Installment and other revolving	22,929	124		—		—		6		7
Commercial banking⁽⁶⁾	85	19		—		—		—		(1	)
Total⁽⁸⁾	78,170	$	380	$	—	$	—	$	10


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

(2)

Post-modification balances in North America include $19 million of residential first mortgages and $7 million of home equity loans to borrowers who have gone through Chapter 7 bankruptcy in the six months ended June 30, 2018. These amounts include $13 million of residential first mortgages and $6 million of home equity loans that were newly classified as TDRs in the six months ended June 30, 2018, 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 $30 million of residential first mortgages and $11 million of home equity loans to borrowers who have gone through Chapter 7 bankruptcy in the six months ended June 30, 2017. These amounts include $21 million of residential first mortgages and $10 million of home equity loans that were newly classified as TDRs in the six months ended June 30, 2017, 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 June 30,				Six Months Ended June 30,
In millions of dollars	2018		2017		2018		2017
North America
Residential first mortgages	$	30	$	48	$	74	$	99
Home equity loans	6		8		16		17
Credit cards	57		57		116		109
Installment and other revolving	1		1		1		1
Commercial banking	13		1		21		2
Total	$	107	$	115	$	228	$	228
International
Residential first mortgages	$	2	$	3	$	4	$	5
Credit cards	55		46		108		88
Installment and other revolving	20		23		44		46
Commercial banking	9		—		10		—
Total	$	86	$	72	$	166	$	139

Corporate Loans

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



In millions of dollars	June 30, 2018			December 31, 2017
In U.S. offices
Commercial and industrial	$	53,260		$	51,319
Financial institutions	42,867			39,128
Mortgage and real estate⁽¹⁾	46,310			44,683
Installment, revolving credit and other	32,663			33,181
Lease financing	1,445			1,470
	$	176,545		$	169,781
In offices outside the U.S.
Commercial and industrial	$	98,068		$	93,750
Financial institutions	38,312			35,273
Mortgage and real estate⁽¹⁾	7,261			7,309
Installment, revolving credit and other	22,755			22,638
Lease financing	139			190
Governments and official institutions	5,270			5,200
	$	171,805		$	164,360
Total corporate loans	$	348,350		$	334,141
Net unearned income	$	(802	)	$	(763	)
Corporate loans, net of unearned income	$	347,548		$	333,378


(1)	Loans secured primarily by real estate.

The Company sold and/or reclassified to held-for-sale $0.4 billion and $0.5 billion of corporate loans during the three and six months ended June 30, 2018, respectively, and $0 billion and $0.5 billion during the three and six months ended June 30, 2017, respectively. The Company did not have significant purchases of corporate loans classified as held-for-investment for the three and six months ended June 30, 2018 or 2017.

Corporate Loan Delinquency and Non-Accrual Details at June 30, 2018



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	$	618	$	39	$	657	$	1,095	$	147,195	$	148,947
Financial institutions	177		54		231		134		80,182		80,547
Mortgage and real estate	140		9		149		267		53,135		53,551
Leases	3		—		3		41		1,541		1,585
Other	59		19		78		86		59,776		59,940
Loans at fair value											2,978
Total	$	997	$	121	$	1,118	$	1,623	$	341,829	$	347,548

Corporate Loan Delinquency and Non-Accrual Details at December 31, 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	$	249	$	13	$	262	$	1,506	$	139,554	$	141,322
Financial institutions	93		15		108		92		73,557		73,757
Mortgage and real estate	147		59		206		195		51,563		51,964
Leases	68		8		76		46		1,533		1,655
Other	70		13		83		103		60,145		60,331
Loans at fair value											4,349
Total	$	627	$	108	$	735	$	1,942	$	326,352	$	333,378


(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.

Corporate Loans Credit Quality Indicators



	Recorded investment in loans⁽¹⁾
In millions of dollars	June 30, 2018		December 31, 2017
Investment grade⁽²⁾
Commercial and industrial	$	106,631	$	101,313
Financial institutions	68,604		60,404
Mortgage and real estate	23,633		23,213
Leases	1,055		1,090
Other	55,196		56,306
Total investment grade	$	255,119	$	242,326
Non-investment grade⁽²⁾
Accrual
Commercial and industrial	$	41,221	$	38,503
Financial institutions	11,808		13,261
Mortgage and real estate	3,211		2,881
Leases	490		518
Other	4,658		3,924
Non-accrual
Commercial and industrial	1,095		1,506
Financial institutions	134		92
Mortgage and real estate	267		195
Leases	41		46
Other	86		103
Total non-investment grade	$	63,011	$	61,029
Non-rated private bank loans managed on a delinquency basis⁽²⁾	$	26,440	$	25,674
Loans at fair value	2,978		4,349
Corporate loans, net of unearned income	$	347,548	$	333,378


(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 loan information by corporate loan type and interest income recognized on non-accrual corporate loans:



	June 30, 2018								Three Months Ended June 30, 2018		Six Months Ended June 30, 2018
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	$	1,095	$	1,246	$	248	$	1,332	$	13	$	16
Financial institutions	134		149		53		134		—		—
Mortgage and real estate	267		420		29		206		—		1
Lease financing	41		41		—		48		—		—
Other	86		194		2		102		—		—
Total non-accrual corporate loans	$	1,623	$	2,050	$	332	$	1,822	$	13	$	17



	December 31, 2017
In millions of dollars	Recorded investment⁽¹⁾		Unpaid principal balance		Related specific allowance		Average carrying value⁽²⁾
Non-accrual corporate loans
Commercial and industrial	$	1,506	$	1,775	$	368	$	1,547
Financial institutions	92		102		41		212
Mortgage and real estate	195		324		11		183
Lease financing	46		46		4		59
Other	103		212		2		108
Total non-accrual corporate loans	$	1,942	$	2,459	$	426	$	2,109



	June 30, 2018				December 31, 2017
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	$	660	$	248	$	1,017	$	368
Financial institutions	98		53		88		41
Mortgage and real estate	124		29		51		11
Lease financing	—		—		46		4
Other	10		2		13		2
Total non-accrual corporate loans with specific allowance	$	892	$	332	$	1,215	$	426
Non-accrual corporate loans without specific allowance
Commercial and industrial	$	435			$	489
Financial institutions	36				4
Mortgage and real estate	143				144
Lease financing	41				—
Other	76				90
Total non-accrual corporate loans without specific allowance	$	731	N/A		$	727	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 months ended June 30, 2017 was $17 million and $19 million.

N/A Not applicable

Corporate Troubled Debt Restructurings

At and for the three months ended June 30, 2018:



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	$	39	$	3	$	4	$	32
Mortgage and real estate	2		—		—		2
Total	$	41	$	3	$	4	$	34

At and for the three months ended June 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	$	233	$	32	$	—	$	201
Mortgage and real estate	3		—		—		3
Total	$	236	$	32	$	—	$	204

At and for the six months ended June 30, 2018:



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	$	41	$	3	$	4	$	34
Mortgage and real estate	3		—		—		3
Total	$	44	$	3	$	4	$	37

At and for the six months ended June 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	$	288	$	32	$	—	$	256
Mortgage and real estate	15		—		—		15
Other	4		—		—		4
Total	$	307	$	32	$	—	$	275

(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.

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 June 30, 2018		TDR loans in payment default during the three months ended June 30, 2018		TDR loans in payment default six months ended June 30, 2018		TDR balances at June 30, 2017		TDR loans in payment default during the three months ended June 30, 2017		TDR loans in payment default during the six months ended June 30, 2017
Commercial and industrial	$	440	$	11	$	70	$	591	$	3	$	12
Financial institutions	34		—		—		24		—		3
Mortgage and real estate	87		—		—		74		—		—
Other	37		—		—		166		—		—
Total⁽¹⁾	$	598	$	11	$	70	$	855	$	3	$	15


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