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LOANS

12 Months Ended

Dec. 31, 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.

Consumer Loans

Consumer loans represent loans and leases managed primarily by GCB and Corporate/Other.

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 under Fair Isaac Corporation (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.

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.

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.

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

Consumer Loan Delinquencies and Non-Accrual Details at December 31, 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⁾	$	45,942	$	411	$	221	$	434	$	47,008	$	479	$	288
Home equity loans⁽⁷⁾⁽⁸⁾	8,860		174		189		—		9,223		405		—
Credit cards	145,477		1,759		1,927		—		149,163		—		1,927
Personal, small business and other	3,641		44		14		—		3,699		21		—
Total	$	203,920	$	2,388	$	2,351	$	434	$	209,093	$	905	$	2,215
In offices outside North America⁽⁵⁾
Residential first mortgages⁽⁶⁾	$	37,316	$	210	$	160	$	—	$	37,686	$	421	$	—
Credit cards	25,111		426		372		—		25,909		310		242
Personal, small business and other	36,456		272		132		—		36,860		180		—
Total	$	98,883	$	908	$	664	$	—	$	100,455	$	911	$	242
Total Citigroup⁽⁹⁾	$	302,803	$	3,296	$	3,015	$	434	$	309,548	$	1,816	$	2,457

Consumer Loan 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	141,091		1,687		1,764		—		144,542		—		1,764
Personal, small business and other	3,983		46		17		—		4,046		28		—
Total	$	202,162	$	2,314	$	2,281	$	786	$	207,543	$	1,138	$	2,313
In offices outside North America⁽⁵⁾
Residential first mortgages⁽⁶⁾	$	35,624	$	203	$	145	$	—	$	35,972	$	383	$	—
Credit cards	24,156		425		370		—		24,951		312		235
Personal, small business and other	33,474		284		136		—		33,894		193		—
Total	$	93,254	$	912	$	651	$	—	$	94,817	$	888	$	235
Total Citigroup ⁽⁹⁾	$	295,416	$	3,226	$	2,932	$	786	$	302,360	$	2,026	$	2,548


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


(2)	Includes $18 million and $20 million at December 31, 2019 and 2018, respectively, of residential first mortgages recorded at fair value.


(3)	Excludes loans guaranteed by U.S. government-sponsored agencies.


(4)	Consists of residential first mortgages that are guaranteed by U.S. government-sponsored agencies that are 30–89 days past due of $0.1 billion and $0.2 billion and 90 days or more past due of $0.3 billion and $0.6 billion at December 31, 2019 and 2018, respectively.


(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 and $0.1 billion at December 31, 2019 and 2018, respectively, of residential first mortgage loans in process of foreclosure.


(7)	Includes approximately $0.1 billion and $0.1 billion at December 31, 2019 and 2018, respectively, 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 $783 million and $742 million at December 31, 2019 and 2018, respectively. Unearned income on consumer loans primarily represents unamortized origination fees and costs, premiums and discounts.

During the years ended December 31, 2019 and 2018, the Company sold and/or reclassified to HFS $2.9 billion and $3.2 billion, respectively, of consumer loans.

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 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. 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)(3)	December 31, 2019
In millions of dollars	Less than 680		680 to 760		Greater than 760
Residential first mortgages	$	3,602	$	13,178	$	28,235
Home equity loans	1,881		3,475		3,630
Credit cards	33,290		59,536		52,935
Personal, small business and other	564		907		1,473
Total	$	39,337	$	77,096	$	86,273



FICO score distribution in U.S. portfolio^(1)(2)(3)	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
Personal, small business and other	625		1,097		1,121
Total	$	40,279	$	77,963	$	83,437


(1)	The FICO bands in the tables are consistent with general industry peer presentations.


(2)	Excludes loans guaranteed by U.S. government-sponsored agencies, loans subject to long-term standby commitments (LTSC) with U.S. government-sponsored agencies and loans recorded at fair value.


(3)	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, 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	$	41,705	$	3,302	$	98
Home equity loans	7,934		819		235
Total	$	49,639	$	4,121	$	333



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-sponsored agencies, loans subject to LTSCs with U.S. government-sponsored agencies 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 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, 2019
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	$	1,666	$	1,838	$	161	$	1,925	$	60
Home equity loans	592		824		123		637		9
Credit cards	1,931		2,288		771		1,890		103
Installment and other
Personal, small business and other	703		738		135		754		55
Total	$	4,892	$	5,688	$	1,190	$	5,206	$	227


(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) $405 million of residential first mortgages, and $212 million of home equity 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, 2018
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	$	2,130	$	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
Personal, small business and other	452		666		139		500		22
Total	$	5,084	$	5,783	$	1,116	$	5,496	$	220


(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 and $263 million of home equity 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, 2017 was $342 million.

Consumer Troubled Debt Restructurings



	For the year ended December 31, 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	1,122	$	172	$	—	$	—	$	—	—	%
Home equity loans	717	79		3		—		—		1
Credit cards	268,778	1,165		—		—		—		17
Personal, small business and other	1,719	15		—		—		—		5
Total⁽⁶⁾	272,336	$	1,431	$	3	$	—	$	—
International
Residential first mortgages	2,448	$	74	$	—	$	—	$	—	—	%
Credit cards	72,325	288		—		—		10		17
Personal, small business and other	29,192	204		—		—		6		9
Total⁽⁶⁾	103,965	$	566	$	—	$	—	$	16



	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⁾⁽⁷⁾		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
Personal, small business and other	1,349	12		—		—		—		4
Total⁽⁶⁾	248,002	$	1,420	$	7	$	—	$	—
International
Residential first mortgages	2,572	$	85	$	—	$	—	$	—	—	%
Credit cards	77,823	323		—		—		9		16
Personal, small business and other	30,849	216		—		—		7		9
Total⁽⁶⁾	111,244	$	624	$	—	$	—	$	16


(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 year ended December 31, 2019. These amounts include $11 million of residential first mortgages and $6 million of home equity loans that were newly classified as TDRs during 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)	The above tables reflect activity for restructured loans that were considered TDRs during the year.

(7)

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.

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.



	Years ended December 31,
In millions of dollars	2019		2018
North America
Residential first mortgages	$	85	$	136
Home equity loans	15		23
Credit cards	301		241
Personal, small business and other	4		4
Total	$	405	$	404
International
Residential first mortgages	$	13	$	9
Credit cards	142		198
Personal, small business and other	74		80
Total	$	229	$	287

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, 2019		December 31, 2018
In North America offices⁽¹⁾
Commercial and industrial	$	55,929	$	60,861
Financial institutions	53,922		48,447
Mortgage and real estate⁽²⁾	53,371		50,124
Installment, revolving credit and other	31,238		32,425
Lease financing	1,290		1,429
Total	$	195,750	$	193,286
In offices outside North America⁽¹⁾
Commercial and industrial	$	112,668	$	114,029
Financial institutions	40,211		36,837
Mortgage and real estate⁽²⁾	9,780		7,376
Installment, revolving credit and other	27,303		25,685
Lease financing	95		103
Governments and official institutions	4,128		4,520
Total	$	194,185	$	188,550
Corporate loans, net of unearned income⁽³⁾	$	389,935	$	381,836


(1)	North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America. The classification between offices in North America and outside North America is based on the domicile of the booking unit. The difference between the domicile of the booking unit and the domicile of the managing unit is not material.


(2)	Loans secured primarily by real estate.


(3)	Corporate loans are net of unearned income of ($814) million and ($855) million at December 31, 2019 and 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 $2.6 billion and $1.0 billion of corporate loans during the years ended December 31, 2019 and 2018, respectively. The Company did not have significant purchases of corporate

loans classified as held-for-investment for the years ended December 31, 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 December 31, 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 year ended December 31, 2019 was not material.

The Company’s leases have an average remaining maturity of approximately three and a half 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 $0.9 billion as of December 31, 2019, while the amount covered by residual value guarantees is $0.3 billion.

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

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 Delinquencies and Non-Accrual Details at December 31, 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	$	676	$	93	$	769	$	1,828	$	164,249	$	166,846
Financial institutions	791		3		794		50		91,008		91,852
Mortgage and real estate	534		4		538		188		62,425		63,151
Lease financing	58		9		67		41		1,277		1,385
Other	190		22		212		81		62,341		62,634
Loans at fair value											4,067
Total	$	2,249	$	131	$	2,380	$	2,188	$	381,300	$	389,935

Corporate Loan Delinquencies 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	$	403	$	111	$	514	$	1,119	$	173,257	$	174,890
Financial institutions	87		7		94		102		85,088		85,284
Mortgage and real estate	128		5		133		215		57,152		57,500
Lease financing	5		10		15		—		1,517		1,532
Other	151		52		203		75		59,149		59,427
Loans at fair value											3,203
Total	$	774	$	185	$	959	$	1,511	$	376,163	$	381,836


(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 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, 2019		December 31, 2018
Investment grade⁽²⁾
Commercial and industrial	$	110,797	$	113,925
Financial institutions	80,533		73,533
Mortgage and real estate	27,571		26,799
Lease financing	816		1,035
Other	57,339		58,916
Total investment grade	$	277,056	$	274,208
Non-investment grade⁽²⁾
Accrual
Commercial and industrial	$	54,220	$	53,942
Financial institutions	11,269		10,866
Mortgage and real estate	3,811		4,200
Lease financing	528		497
Other	5,206		5,753
Non-accrual
Commercial and industrial	1,828		1,119
Financial institutions	50		102
Mortgage and real estate	188		215
Lease financing	41		—
Other	81		75
Total non-investment grade	$	77,222	$	76,769
Non-rated private bank loans managed on a delinquency basis⁽²⁾	$	31,590	$	27,656
Loans at fair value	4,067		3,203
Corporate loans, net of unearned income	$	389,935	$	381,836


(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, 2019
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	$	1,828	$	1,942	$	283	$	1,449	$	33
Financial institutions	50		120		2		63		—
Mortgage and real estate	188		362		10		192		—
Lease financing	41		41		—		8		—
Other	81		202		4		76		9
Total non-accrual corporate loans	$	2,188	$	2,667	$	299	$	1,788	$	42



	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	$	1,119	$	1,270	$	245	$	1,299	$	49
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	$	1,511	$	1,909	$	325	$	1,735	$	56



	December 31, 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 specific allowance
Commercial and industrial	$	714	$	283	$	801	$	245
Financial institutions	40		2		76		35
Mortgage and real estate	48		10		100		39
Lease financing	—		—		—		—
Other	7		4		24		6
Total non-accrual corporate loans with specific allowance	$	809	$	299	$	1,001	$	325
Non-accrual corporate loans without specific allowance
Commercial and industrial	$	1,114			$	318
Financial institutions	10				26
Mortgage and real estate	140				115
Lease financing	41				—
Other	74				51
Total non-accrual corporate loans without specific allowance	$	1,379	N/A		$	510	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, 2017 was $35 million.

N/A Not applicable

Corporate Troubled Debt Restructurings

For the year ended December 31, 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	$	283	$	19	$	—	$	264
Mortgage and real estate	16		—		—		16
Other	6		6		—		—
Total	$	305	$	25	$	—	$	280

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	$	159	$	5	$	8	$	146
Mortgage and real estate	60		3		—		57
Total	$	219	$	8	$	8	$	203

(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, 2019		TDR loans in payment default during the year ended December 31, 2019		TDR balances at December 31, 2018		TDR loans in payment default during the year ended December 31, 2018
Commercial and industrial	$	603	$	35	$	568	$	111
Financial institutions	—		—		25		—
Mortgage and real estate	79		—		123		—
Lease financing	—		—		—		—
Other	44		—		2		—
Total⁽¹⁾	$	726	$	35	$	718	$	111

(1)

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