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LOANS

9 Months Ended

Sep. 30, 2019

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 2018 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:

Consumer Loans, Delinquencies and Non-Accrual Details at September 30, 2019



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⁽⁵⁾
Residential first mortgages⁽⁶⁾	$	45,126	$	409	$	215	$	587	$	46,337	$	558	$	371
Home equity loans⁽⁷⁾⁽⁸⁾	9,513		149		188		—		9,850		433		—
Credit cards	138,009		1,743		1,730		—		141,482		—		1,730
Installment and other	3,305		41		15		—		3,361		18		—
Commercial banking loans	10,576		83		21		—		10,680		159		—
Total	$	206,529	$	2,425	$	2,169	$	587	$	211,710	$	1,168	$	2,101
In offices outside North America⁽⁵⁾
Residential first mortgages⁽⁶⁾	$	36,289	$	219	$	136	$	—	$	36,644	$	392	$	—
Credit cards	23,542		410		348		—		24,300		288		231
Installment and other	26,297		237		105		—		26,639		125		—
Commercial banking loans	26,640		52		53		—		26,745		212		—
Total	$	112,768	$	918	$	642	$	—	$	114,328	$	1,017	$	231
Total Citigroup⁽⁹⁾	$	319,297	$	3,343	$	2,811	$	587	$	326,038	$	2,185	$	2,332


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


(2)	Includes $18 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 $0.4 billion.


(5)	North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America.


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


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


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


(9)	Consumer loans are net of unearned income of $745 million. Unearned income on consumer loans primarily represents unamortized origination fees and costs, premiums and discounts.

During the three and nine months ended September 30, 2019 and 2018, the Company sold and/or reclassified to HFS $0.1 billion and $2.4 billion and $0.3 billion and $3.0 billion, respectively, of consumer loans.

Consumer Loans, Delinquencies 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⁽⁵⁾
Residential first mortgages⁽⁶⁾	$	45,953	$	420	$	253	$	786	$	47,412	$	583	$	549
Home equity loans⁽⁷⁾⁽⁸⁾	11,135		161		247		—		11,543		527		—
Credit cards	141,106		1,687		1,764		—		144,557		—		1,764
Installment and other	3,395		43		16		—		3,454		22		—
Commercial banking loans	9,662		20		46		—		9,728		109		—
Total	$	211,251	$	2,331	$	2,326	$	786	$	216,694	$	1,241	$	2,313
In offices outside North America⁽⁵⁾
Residential first mortgages⁽⁶⁾	$	35,624	$	203	$	145	$	—	$	35,972	$	383	$	—
Credit cards	24,131		425		370		—		24,926		312		235
Installment and other	25,773		254		107		—		26,134		152		—
Commercial banking loans	26,657		51		53		—		26,761		138		—
Total	$	112,185	$	933	$	675	$	—	$	113,793	$	985	$	235
Total Citigroup⁽⁹⁾	$	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)	North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America.


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


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


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


(9)	Consumer loans are net of unearned income of $708 million. Unearned income on consumer loans primarily represents unamortized origination fees and costs, premiums and discounts.

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⁾	September 30, 2019
In millions of dollars	Less than 680		680 to 760		Greater than 760
Residential first mortgages	$	3,924	$	13,484	$	25,671
Home equity loans	2,107		3,756		3,880
Credit cards	32,350		57,837		49,110
Installment and other	591		1,024		979
Total	$	38,972	$	76,101	$	79,640



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


(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⁾	September 30, 2019
In millions of dollars	Less than or equal to 80%		> 80% but less than or equal to 100%		Greater than 100%
Residential first mortgages	$	41,117	$	2,705	$	106
Home equity loans	8,574		902		267
Total	$	49,691	$	3,607	$	373



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


(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, 2019								2019		2018		2019		2018
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	$	1,925	$	2,121	$	198	$	2,041	$	16	$	21	$	51	$	63
Home equity loans	632		887		120		660		2		2		6		10
Credit cards	1,896		2,158		744		1,862		25		24		77		79
Installment and other
Individual installment and other	399		600		141		399		7		5		18		17
Commercial banking	401		637		50		343		11		2		20		10
Total	$	5,253	$	6,403	$	1,253	$	5,305	$	61	$	54	$	172	$	179


(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)	$415 million of residential first mortgages, $230 million of home equity loans and $9 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 at December 31, 2018
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	$	2,130	$	2,329	$	178	$	2,483
Home equity loans	684		946		122		698
Credit cards	1,818		1,842		677		1,815
Installment and other
Individual installment and other	400		434		146		414
Commercial banking	252		432		55		286
Total	$	5,284	$	5,983	$	1,178	$	5,696


(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 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



	For the Three Months Ended September 30, 2019
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	175	$	26	$	—	$	—	$	—	—	%
Home equity loans	219	24		1		—		—		1
Credit cards	66,925	296		—		—		—		17
Installment and other revolving	499	4		—		—		—		6
Commercial banking⁽⁶⁾	4	—		—		—		—		2
Total⁽⁸⁾	67,822	$	350	$	1	$	—	$	—
International
Residential first mortgages	572	$	22	$	—	$	—	$	—	—	%
Credit cards	16,703	66		—		—		2		17
Installment and other revolving	7,122	44		—		—		2		10
Commercial banking⁽⁶⁾	126	21		—		—		—		—
Total⁽⁸⁾	24,523	$	153	$	—	$	—	$	4



	For the Three Months Ended September 30, 2018
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	461	$	66	$	—	$	—	$	—	—	%
Home equity loans	261	26		1		—		—		1
Credit cards	61,508	253		—		—		—		18
Installment and other revolving	322	2		—		—		—		5
Commercial banking⁽⁶⁾	11	3		—		—		—		—
Total⁽⁸⁾	62,563	$	350	$	1	$	—	$	—
International
Residential first mortgages	660	$	22	$	—	$	—	$	—	—	%
Credit cards	18,413	77		—		—		2		17
Installment and other revolving	6,421	34		—		—		2		10
Commercial banking⁽⁶⁾	131	9		—		—		—		—
Total⁽⁸⁾	25,625	$	142	$	—	$	—	$	4


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

(2)

Post-modification balances in North America include $3 million of residential first mortgages and $2 million of home equity loans to borrowers who have gone through Chapter 7 bankruptcy in the three months ended September 30, 2019. These amounts include $2 million of residential first mortgages and $2 million of home equity loans that were newly classified as TDRs in the three months ended September 30, 2019, 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 $10 million of residential first mortgages and $2 million of home equity loans to borrowers who have gone through Chapter 7 bankruptcy in the three months ended September 30, 2018. These amounts include $7 million of residential first mortgages and $2 million of home equity loans that were newly classified as TDRs in the three months ended September 30, 2018, 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.



	For the Nine Months Ended September 30, 2019
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	805	$	120	$	—	$	—	$	—	—	%
Home equity loans	613	66		2		—		—		1
Credit cards	202,453	874		—		—		—		17
Installment and other revolving	1,190	10		—		—		—		6
Commercial banking⁽⁶⁾	31	48		—		—		—		—
Total⁽⁸⁾	205,092	$	1,118	$	2	$	—	$	—
International
Residential first mortgages	1,935	$	59	$	—	$	—	$	—	—	%
Credit cards	53,649	214		—		—		8		17
Installment and other revolving	21,747	132		—		—		5		10
Commercial banking⁽⁶⁾	314	63		—		—		—		—
Total⁽⁸⁾	77,645	$	468	$	—	$	—	$	13



	For the Nine Months Ended September 30, 2018
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	1,544	$	233	$	2	$	—	$	—	—	%
Home equity loans	1,097	104		4		—		—		1
Credit cards	180,170	717		—		—		—		18
Installment and other revolving	956	7		—		—		—		5
Commercial banking⁽⁶⁾	37	5		—		—		—		—
Total⁽⁸⁾	183,804	$	1,066	$	6	$	—	$	—
International
Residential first mortgages	1,833	$	62	$	—	$	—	$	—	—	%
Credit cards	59,589	249		—		—		7		16
Installment and other revolving	22,918	136		—		—		6		10
Commercial banking⁽⁶⁾	433	60		—		—		—		1
Total⁽⁸⁾	84,773	$	507	$	—	$	—	$	13


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

(2)

Post-modification balances in North America include $15 million of residential first mortgages and $6 million of home equity loans to borrowers who have gone through Chapter 7 bankruptcy in the nine months ended September 30, 2019. These amounts include $9 million of residential first mortgages and $5 million of home equity loans that were newly classified as TDRs in the nine months ended September 30, 2019, 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 $29 million of residential first mortgages and $10 million of home equity loans to borrowers who have gone through Chapter 7 bankruptcy in the nine months ended September 30, 2018. These amounts include $20 million of residential first mortgages and $9 million of home equity loans that were newly classified as TDRs in the nine months ended September 30, 2018, 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.



	Three Months Ended September 30,				Nine Months Ended September 30,
In millions of dollars	2019		2018		2019		2018
North America
Residential first mortgages	$	19	$	31	$	69	$	105
Home equity loans	4		5		11		21
Credit cards	74		57		217		173
Installment and other revolving	1		1		3		2
Commercial banking	—		1		1		22
Total	$	98	$	95	$	301	$	323
International
Residential first mortgages	$	1	$	2	$	8	$	6
Credit cards	34		48		109		156
Installment and other revolving	18		18		54		62
Commercial banking	3		7		5		17
Total	$	56	$	75	$	176	$	241

Corporate Loans

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



In millions of dollars	September 30, 2019		December 31, 2018
In North America offices⁽¹⁾
Commercial and industrial	$	49,475	$	52,063
Financial institutions	52,678		48,447
Mortgage and real estate⁽²⁾	52,972		50,124
Installment, revolving credit and other	31,303		32,425
Lease financing	1,314		1,429
Total	$	187,742	$	184,488
In offices outside North America⁽¹⁾
Commercial and industrial	$	102,432	$	94,701
Financial institutions	37,908		36,837
Mortgage and real estate⁽²⁾	7,811		7,376
Installment, revolving credit and other	26,774		25,684
Lease financing	80		103
Governments and official institutions	2,958		4,520
Total	$	177,963	$	169,221
Corporate loans, net of unearned income⁽³⁾	$	365,705	$	353,709


(1)	North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America.


(2)	Loans secured primarily by real estate.


(3)	Corporate loans are net of unearned income of ($780) million and ($822) million at September 30, 2019 and December 31, 2018, respectively. Unearned income on corporate loans primarily represents interest received in advance, but not yet earned, on loans originated on a discounted basis.

The Company sold and/or reclassified to held-for-sale $0.8 billion and $2.1 billion of corporate loans during the three and nine months ended September 30, 2019, respectively, and $0.3 billion and $0.8 billion during the three and nine months ended September 30, 2018, 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, 2019 or 2018.

Lease financing

Citi is a lessor in the power, railcars, shipping and aircraft sectors, where the Company has executed operating, direct financing and leveraged leases. Citi’s $1.4 billion of lease financing receivables, as of September 30, 2019, is composed of approximately equal balances of direct financing lease receivables and net investments in leveraged leases. Citi uses the interest rate implicit in the lease to determine the present value of its lease financing receivables. Interest income on direct financing and leveraged leases during the three and nine months ended September 30, 2019 was not material.

The Company’s leases have an average remaining maturity of approximately four years. In certain cases, Citi obtains residual value insurance from third parties and/or the lessee to manage the risk associated with the residual value of the leased assets. The receivable related to the residual value of the leased assets is approximately $0.9 billion as of September 30, 2019, while the amount covered by residual value guarantees is approximately $0.3 billion.

The Company’s operating leases, where Citi is a lessor, are not significant to the Consolidated Financial Statements.

Corporate Loan Delinquency and Non-Accrual Details at September 30, 2019



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	$	668	$	24	$	692	$	1,232	$	148,162	$	150,086
Financial institutions	559		175		734		36		87,760		88,530
Mortgage and real estate	316		4		320		171		60,288		60,779
Lease financing	7		9		16		—		1,378		1,394
Other	113		33		146		88		60,844		61,078
Loans at fair value											3,838
Total	$	1,663	$	245	$	1,908	$	1,527	$	358,432	$	365,705

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
Lease financing	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


(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 or more 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 and/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	September 30, 2019		December 31, 2018
Investment grade⁽²⁾
Commercial and industrial	$	104,958	$	102,722
Financial institutions	77,077		73,080
Mortgage and real estate	27,514		25,855
Lease financing	1,148		1,036
Other	53,287		57,299
Total investment grade	$	263,984	$	259,992
Non-investment grade⁽²⁾
Accrual
Commercial and industrial	$	43,896	$	41,645
Financial institutions	11,417		10,686
Mortgage and real estate	2,899		3,793
Lease financing	246		496
Other	7,703		4,981
Non-accrual
Commercial and industrial	1,232		919
Financial institutions	36		102
Mortgage and real estate	171		215
Lease financing	—		—
Other	88		75
Total non-investment grade	$	67,688	$	62,912
Non-rated private bank loans managed on a delinquency basis⁽²⁾	$	30,195	$	27,602
Loans at fair value	3,838		3,203
Corporate loans, net of unearned income	$	365,705	$	353,709


(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:



	September 30, 2019								Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
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	$	1,232	$	1,504	$	127	$	1,098	$	1	$	16
Financial institutions	36		59		9		67		—		—
Mortgage and real estate	171		379		10		193		—		—
Lease financing	—		—		—		—		—		—
Other	88		197		38		75		7		7
Total non-accrual corporate loans	$	1,527	$	2,139	$	184	$	1,433	$	8	$	23



	December 31, 2018
In millions of dollars	Recorded investment⁽¹⁾		Unpaid principal balance		Related specific allowance		Average carrying value⁽²⁾
Non-accrual corporate loans
Commercial and industrial	$	919	$	1,070	$	183	$	1,099
Financial institutions	102		123		35		99
Mortgage and real estate	215		323		39		233
Lease financing	—		28		—		21
Other	75		165		6		83
Total non-accrual corporate loans	$	1,311	$	1,709	$	263	$	1,535



	September 30, 2019				December 31, 2018
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	$	622	$	127	$	603	$	183
Financial institutions	10		9		76		35
Mortgage and real estate	45		10		100		39
Lease financing	—		—		—		—
Other	79		38		24		6
Total non-accrual corporate loans with specific allowance	$	756	$	184	$	803	$	263
Non-accrual corporate loans without specific allowance
Commercial and industrial	$	610			$	316
Financial institutions	26				26
Mortgage and real estate	126				115
Lease financing	—				—
Other	9				51
Total non-accrual corporate loans without specific allowance	$	771	N/A		$	508	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 months ended September 30, 2018 was $8 million and $25 million, respectively.

N/A Not applicable

Corporate Troubled Debt Restructurings

For the three months ended September 30, 2019:



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	$	24	$	—	$	—	$	24
Mortgage and real estate	3		—		—		3
Other	—		—		—		—
Total	$	27	$	—	$	—	$	27

For the three months ended September 30, 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	$	62	$	1	$	4	$	57
Mortgage and real estate	3		—		—		3
Total	$	65	$	1	$	4	$	60

For the nine months ended September 30, 2019:



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	$	82	$	19	$	—	$	63
Mortgage and real estate	10		—		—		10
Other	6		6		—		—
Total	$	98	$	25	$	—	$	73

For the nine months ended September 30, 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	$	103	$	5	$	8	$	90
Mortgage and real estate	6		—		—		6
Total	$	109	$	5	$	8	$	96

(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.



			TDR loans in payment default						TDR loans in payment default
In millions of dollars	TDR balances at September 30, 2019		Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019		TDR balances at September 30, 2018		Three Months Ended September 30, 2018		Nine Months Ended September 30, 2018
Commercial and industrial	$	398	$	—	$	19	$	480	$	—	$	70
Financial institutions	9		—		—		21		—		—
Mortgage and real estate	75		—		—		71		—		—
Other	4		—		—		42		—		—
Total⁽¹⁾	$	486	$	—	$	19	$	614	$	—	$	70

(1)

The above table reflects activity for loans outstanding that were considered TDRs as of the end of the reporting period.