LOANS

12 Months Ended

Dec. 31, 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.

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:



	December 31,
In millions of dollars	2018		2017
In U.S. offices
Mortgage and real estate⁽¹⁾	$	60,127	$	65,467
Installment, revolving credit and other	3,398		3,398
Cards	143,788		139,006
Commercial and industrial	8,256		7,840
Total	$	215,569	$	215,711
In offices outside the U.S.
Mortgage and real estate⁽¹⁾	$	43,379	$	44,081
Installment, revolving credit and other	27,609		26,556
Cards	25,400		26,257
Commercial and industrial	17,773		20,238
Lease financing	49		76
Total	$	114,210	$	117,208
Total consumer loans	$	329,779	$	332,919
Net unearned income	$	708	$	737
Consumer loans, net of unearned income	$	330,487	$	333,656


(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, 2018 and 2017, the Company sold and/or reclassified to HFS $3.2 billion and $4.9 billion, respectively, of consumer loans.

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, other than Federal Housing Administration (FHA)-insured loans, are classified as non-accrual within 60 days of notification that the borrower has filed for bankruptcy. Commercial banking 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.

Consumer Loan Delinquency and Non-Accrual Details at December 31, 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⁾	$	45,953	$	420	$	253	$	786	$	47,412	$	583	$	549
Home equity loans⁽⁶⁾⁽⁷⁾	11,135		161		247		—		11,543		527		—
Credit cards	141,106		1,687		1,764		—		144,557		—		1,764
Installment and other	3,394		43		16		—		3,453		22		—
Commercial banking loans	9,662		20		46		—		9,728		109		—
Total	$	211,250	$	2,331	$	2,326	$	786	$	216,693	$	1,241	$	2,313
In offices outside North America
Residential first mortgages⁽⁵⁾	$	35,624	$	203	$	145	$	—	$	35,972	$	383	$	—
Credit cards	24,131		425		370		—		24,926		312		235
Installment and other	25,085		254		107		—		25,446		152		—
Commercial banking loans	27,345		51		53		—		27,449		138		—
Total	$	112,185	$	933	$	675	$	—	$	113,793	$	985	$	235
Total GCB and Corporate/Other—Consumer	$	323,435	$	3,264	$	3,001	$	786	$	330,486	$	2,226	$	2,548
Other⁽⁸⁾	1		—		—		—		1		—		—
Total Citigroup	$	323,436	$	3,264	$	3,001	$	786	$	330,487	$	2,226	$	2,548


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


(2)	Includes $20 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 $0.6 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 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 the Corporate/Other 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 for Citi’s U.S. consumer loan portfolio based on end-of-period receivables (commercial banking loans are excluded from the tables since the customers are businesses 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, 2018
In millions of dollars	Less than 680		680 to 760		Greater than 760
Residential first mortgages	$	4,530	$	13,848	$	26,546
Home equity loans	2,438		4,296		4,471
Credit cards	32,686		58,722		51,299
Installment and other	625		1,097		1,121
Total	$	40,279	$	77,963	$	83,437



FICO score distribution in U.S. portfolio⁽¹⁾⁽²⁾	December 31, 2017
In millions of dollars	Less than 680		680 to 760		Greater than 760
Residential first mortgages	$	5,603	$	14,423	$	26,271
Home equity loans	3,347		5,439		5,650
Credit cards	30,875		56,443		48,989
Installment and other	716		1,020		1,275
Total	$	40,541	$	77,325	$	82,185


(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

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 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⁾	December 31, 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	$	42,379	$	2,474	$	197
Home equity loans	9,465		1,287		390
Total	$	51,844	$	3,761	$	587



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

A loan is considered impaired when Citi believes it is probable that all amounts due according to the original contractual terms of the loan will not be collected. Impaired consumer loans include non-accrual commercial banking loans, as well as smaller-balance homogeneous loans whose terms have been modified due to the borrower’s financial difficulties and where Citi 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 impaired consumer loans and interest income recognized on impaired consumer loans:



	At and for the year ended December 31, 2018
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	$	2,130	$	2,329	$	178	$	2,483	$	81
Home equity loans	684		946		122		698		12
Credit cards	1,818		1,842		677		1,815		105
Installment and other
Individual installment and other	400		434		146		414		22
Commercial banking	252		432		55		286		14
Total	$	5,284	$	5,983	$	1,178	$	5,696	$	234


(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)	$484 million of residential first mortgages, $263 million of home equity loans and $2 million of commercial banking 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, 2017
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	$	2,877	$	3,121	$	278	$	3,155	$	119
Home equity loans	1,151		1,590		216		1,181		28
Credit cards	1,787		1,819		614		1,803		150
Installment and other
Individual installment and other	431		460		175		415		25
Commercial banking	334		541		51		429		20
Total	$	6,580	$	7,531	$	1,334	$	6,983	$	342


(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 banking 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, 2016 was $402 million.

Consumer Troubled Debt Restructurings



	At and for the year ended December 31, 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	2,019	$	300	$	2	$	—	$	—	—	%
Home equity loans	1,381	130		5		—		—		1
Credit cards	243,253	978		—		—		—		18
Installment and other revolving	1,320	10		—		—		—		5
Commercial banking⁽⁶⁾	43	6		—		—		—		—
Total⁽⁸⁾	248,016	$	1,424	$	7	$	—	$	—
International
Residential first mortgages	2,572	$	85	$	—	$	—	$	—	—	%
Credit cards	77,823	323		—		—		9		16
Installment and other revolving	30,344	182		—		—		7		10
Commercial banking⁽⁶⁾	526	70		—		—		—		1
Total⁽⁸⁾	111,265	$	660	$	—	$	—	$	16



	At and for the year ended December 31, 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	4,063	$	580	$	6	$	—	$	2	1	%
Home equity loans	2,807	247		16		—		1		1
Credit cards	230,042	880		—		—		—		17
Installment and other revolving	1,088	8		—		—		—		5
Commercial banking⁽⁶⁾	112	117		—		—		—		—
Total⁽⁸⁾	238,112	$	1,832	$	22	$	—	$	3
International
Residential first mortgages	4,477	$	123	$	—	$	—	$	—	—	%
Credit cards	115,941	399		—		—		7		11
Installment and other revolving	44,880	254		—		—		11		9
Commercial banking⁽⁶⁾	370	50		—		—		—		—
Total⁽⁸⁾	165,668	$	826	$	—	$	—	$	18


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

(2)

Post-modification balances in North America include $38 million of residential first mortgages and $12 million of home equity loans to borrowers who have gone through Chapter 7 bankruptcy in the year ended December 31, 2018. These amounts include $27 million of residential first mortgages and $10 million of home equity loans that were newly classified as TDRs during 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 $53 million of residential first mortgages and $21 million of home equity loans to borrowers who have gone through Chapter 7 bankruptcy in the year ended December 31, 2017. These amounts include $36 million of residential first mortgages and $18 million of home equity loans that were newly classified as TDRs during 2017, based on previously received OCC guidance.


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

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.



	Years ended December 31,
In millions of dollars	2018		2017
North America
Residential first mortgages	$	136	$	253
Home equity loans	23		46
Credit cards	241		221
Installment and other revolving	3		2
Commercial banking	22		2
Total	$	425	$	524
International
Residential first mortgages	$	9	$	11
Credit cards	198		185
Installment and other revolving	80		96
Commercial banking	17		1
Total	$	304	$	293

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, 2018			December 31, 2017
In U.S. offices
Commercial and industrial	$	52,063		$	51,319
Financial institutions	48,447			39,128
Mortgage and real estate⁽¹⁾	50,124			44,683
Installment, revolving credit and other	33,247			33,181
Lease financing	1,429			1,470
Total	$	185,310		$	169,781
In offices outside the U.S.
Commercial and industrial	$	94,701		$	93,750
Financial institutions	36,837			35,273
Mortgage and real estate⁽¹⁾	7,376			7,309
Installment, revolving credit and other	25,684			22,638
Lease financing	103			190
Governments and official institutions	4,520			5,200
Total	$	169,221		$	164,360
Total corporate loans	$	354,531		$	334,141
Net unearned income	$	(822	)	$	(763	)
Corporate loans, net of unearned income	$	353,709		$	333,378


(1)	Loans secured primarily by real estate.

The Company sold and/or reclassified to held-for-sale $1.0 billion of corporate loans during each of the years ended December 31, 2018 and 2017, respectively. The Company did not have significant purchases of corporate loans classified as held-for-investment for the years ended December 31, 2018 or 2017.

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, 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	$	365	$	42	$	407	$	919	$	143,960	$	145,286
Financial institutions	87		7		94		102		83,672		83,868
Mortgage and real estate	128		5		133		215		57,116		57,464
Leases	5		10		15		—		1,516		1,531
Other	151		52		203		75		62,079		62,357
Loans at fair value											3,203
Total	$	736	$	116	$	852	$	1,311	$	348,343	$	353,709

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.

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, 2018		December 31, 2017
Investment grade⁽²⁾
Commercial and industrial	$	102,722	$	101,313
Financial institutions	73,080		60,404
Mortgage and real estate	25,855		23,213
Leases	1,036		1,090
Other	57,299		56,306
Total investment grade	$	259,992	$	242,326
Non-investment grade⁽²⁾
Accrual
Commercial and industrial	$	41,645	$	38,503
Financial institutions	10,686		13,261
Mortgage and real estate	3,793		2,881
Leases	496		518
Other	4,981		3,924
Non-accrual
Commercial and industrial	919		1,506
Financial institutions	102		92
Mortgage and real estate	215		195
Leases	—		46
Other	75		103
Total non-investment grade	$	62,912	$	61,029
Non-rated private bank loans managed on a delinquency basis⁽²⁾	$	27,602	$	25,674
Loans at fair value	3,203		4,349
Corporate loans, net of unearned income	$	353,709	$	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.

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 carrying value 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.

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:



	At and for the year ended December 31, 2018
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	$	919	$	1,070	$	183	$	1,099	$	35
Financial institutions	102		123		35		99		—
Mortgage and real estate	215		323		39		233		1
Lease financing	—		28		—		21		—
Other	75		165		6		83		6
Total non-accrual corporate loans	$	1,311	$	1,709	$	263	$	1,535	$	42



	At and for the year ended December 31, 2017
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	$	1,506	$	1,775	$	368	$	1,547	$	23
Financial institutions	92		102		41		212		1
Mortgage and real estate	195		324		11		183		10
Lease financing	46		46		4		59		—
Other	103		212		2		108		1
Total non-accrual corporate loans	$	1,942	$	2,459	$	426	$	2,109	$	35



	December 31, 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	$	603	$	183	$	1,017	$	368
Financial institutions	76		35		88		41
Mortgage and real estate	100		39		51		11
Lease financing	—		—		46		4
Other	24		6		13		2
Total non-accrual corporate loans with specific allowance	$	803	$	263	$	1,215	$	426
Non-accrual corporate loans without specific allowance
Commercial and industrial	$	316			$	489
Financial institutions	26				4
Mortgage and real estate	115				144
Lease financing	—				—
Other	51				90
Total non-accrual corporate loans without specific allowance	$	508	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 year ended December 31, 2016 was $40 million.

N/A Not applicable

Corporate Troubled Debt Restructurings

The following table presents corporate TDR activity at and for the year ended December 31, 2018:



In millions of dollars	Carrying value of TDRs modified during the period		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	$	113	$	5	$	8	$	100
Mortgage and real estate	60		3		—		57
Total	$	173	$	8	$	8	$	157

The following table presents corporate TDR activity at and for the year ended December 31, 2017:



In millions of dollars	Carrying value of TDRs modified during the period		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	$	509	$	131	$	7	$	371
Financial institutions	15		—		—		15
Mortgage and real estate	36		—		—		36
Total	$	560	$	131	$	7	$	422

(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 December 31, 2018		TDR loans in payment default during the year ended December 31, 2018		TDR balances at December 31, 2017		TDR loans in payment default during the year ended December 31, 2017
Commercial and industrial	$	414	$	70	$	617	$	72
Financial institutions	25		—		48		—
Mortgage and real estate	123		—		101		—
Lease financing	—		—		7		—
Other	2		—		45		—
Total⁽¹⁾	$	564	$	70	$	818	$	72


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