13. LOANS

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 the Global Consumer Banking businesses in Citicorp and in Citi Holdings. The following table provides information by loan type:

*In millions of dollars*	Sept. 30, 2013			Dec. 31, 2012

Consumer loans
In U.S. offices
Mortgage and real estate(1)	$	110,813		$	125,946
Installment, revolving credit, and other		13,265			14,070
Cards		110,734			111,403
Commercial and industrial		6,349			5,344

	$	241,161		$	256,763

In offices outside the U.S.
Mortgage and real estate(1)	$	54,428		$	54,709
Installment, revolving credit, and other		32,306			33,958
Cards		35,966			40,653
Commercial and industrial		23,741			22,225
Lease financing		743			781

	$	147,184		$	152,326

Total Consumer loans	$	388,345		$	409,089
Net unearned income		(523	)		(418	)

Consumer loans, net of unearned income	$	387,822		$	408,671

(1): Loans secured primarily by real estate.

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 three and nine months ended September 30, 2013 and 2012, the Company sold and/or reclassified to held-for-sale $1.5 billion and $1.3 billion, and $11.3 billion and $2.7 billion, respectively, of Consumer loans. During the three months ended September 30, 2013, Citi acquired approximately $7 billion of loans related to the previously announced acquisition of Best Buy's U.S. credit card portfolio. The Company did not otherwise have significant purchases of Consumer loans during the three and nine months ended September 30, 2013 or September 30, 2012.

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.

Delinquency Status

Delinquency status is monitored and considered a key indicator of credit quality of Consumer loans. Substantially all of the U.S. residential first mortgage loans use the 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 the OTS method of reporting delinquencies, which 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 in regulated bank entities discharged through Chapter 7 bankruptcy, other than FHA-insured loans, are classified as non-accrual. Commercial market 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 the 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, Federal Housing Administration (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 tables provide details on Citigroup's Consumer loan delinquency and non-accrual loans as of September 30, 2013 and December 31, 2012:

Consumer Loan Delinquency and Non-Accrual Details at September 30, 2013

*In millions of dollars*	Total current(1)(2)		30-89 days past due(3)		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	$	67,381	$	2,163	$	2,110	$	5,427	$	77,081	$	3,540	$	4,159
Home equity loans(5)		31,720		438		663		—		32,821		1,398		—
Credit cards		109,260		1,455		1,283		—		111,998		—		1,283
Installment and other		12,562		224		224		—		13,010		229		4
Commercial market loans		8,390		39		30		—		8,459		125		7

Total	$	229,313	$	4,319	$	4,310	$	5,427	$	243,369	$	5,292	$	5,453

In offices outside North America
Residential first mortgages	$	45,223	$	458	$	326	$	—	$	46,007	$	567	$	—
Home equity loans(5)		—		—		—		—		—		—		—
Credit cards		33,955		754		621		—		35,330		375		424
Installment and other		29,135		423		172		—		29,730		243		—
Commercial market loans		32,677		106		202		—		32,985		678		—

Total	$	140,990	$	1,741	$	1,321	$	—	$	144,052	$	1,863	$	424

Total *GCB* and Citi Holdings	$	370,303	$	6,060	$	5,631	$	5,427	$	387,421	$	7,155	$	5,877
Other		369		14		18		—		401		48		—

Total Citigroup	$	370,672	$	6,074	$	5,649	$	5,427	$	387,822	$	7,203	$	5,877

(1): Loans less than 30 days past due are presented as current.
(2): Includes $1.0 billion of residential first mortgages recorded at fair value.
(3): Excludes loans guaranteed by U.S. government entities.
(4): Consists of residential first mortgages that are guaranteed by U.S. government entities that are 30-89 days past due of $1.3 billion and ³ 90 days past due of $4.1 billion.
(5): Fixed rate home equity loans and loans extended under home equity lines of credit, which are typically in junior lien positions.

Consumer Loan Delinquency and Non-Accrual Details at December 31, 2012

*In millions of dollars*	Total current(1)(2)		30-89 days past due(3)		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	$	75,791	$	3,074	$	3,339	$	6,000	$	88,204	$	4,922	$	4,695
Home equity loans(5)		35,740		642		843		—		37,225		1,797		—
Credit cards		108,892		1,582		1,527		—		112,001		—		1,527
Installment and other		13,319		288		325		—		13,932		179		8
Commercial market loans		7,874		32		19		—		7,925		210		11

Total	$	241,616	$	5,618	$	6,053	$	6,000	$	259,287	$	7,108	$	6,241

In offices outside North America
Residential first mortgages	$	45,496	$	547	$	485	$	—	$	46,528	$	807	$	—
Home equity loans(5)		4		—		2		—		6		2		—
Credit cards		38,920		970		805		—		40,695		516		508
Installment and other		29,350		496		167		—		30,013		254		—
Commercial market loans		31,263		106		181		—		31,550		428		—

Total	$	145,033	$	2,119	$	1,640	$	—	$	148,792	$	2,007	$	508

Total *GCB* and Citi Holdings	$	386,649	$	7,737	$	7,693	$	6,000	$	408,079	$	9,115	$	6,749
Other		545		18		29		—		592		81		—

Total Citigroup	$	387,194	$	7,755	$	7,722	$	6,000	$	408,671	$	9,196	$	6,749

(1): Loans less than 30 days past due are presented as current.
(2): Includes $1.2 billion of residential first mortgages recorded at fair value.
(3): Excludes loans guaranteed by U.S. government entities.
(4): Consists of residential first mortgages that are guaranteed by U.S. government entities that are 30-89 days past due of $1.3 billion and ³ 90 days past due of $4.7 billion.
(5): Fixed rate home equity loans and loans extended under home equity lines of credit, which are typically in junior lien positions.

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 table provides details on the FICO scores attributable to Citi's U.S. Consumer loan portfolio as of September 30, 2013 and December 31, 2012 (commercial market loans are not included in 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.

	September 30, 2013

FICO score distribution in U.S. portfolio(1)(2) *In millions of dollars*	Less than 620		³ 620 but less than 660		Equal to or greater than 660
Residential first mortgages	$	12,591	$	6,779	$	46,164
Home equity loans		4,348		2,903		23,937
Credit cards		7,505		10,156		90,378
Installment and other		3,823		2,381		5,142

Total	$	28,267	$	22,219	$	165,621

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

	December 31, 2012

FICO score distribution in U.S. portfolio(1)(2) *In millions of dollars*	Less than 620		³ 620 but less than 660		Equal to or greater than 660
Residential first mortgages	$	16,754	$	8,013	$	50,833
Home equity loans		5,439		3,208		26,820
Credit cards		7,833		10,304		90,248
Installment and other		4,414		2,417		5,365

Total	$	34,440	$	23,942	$	173,266

(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 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 attributable to Citi's U.S. Consumer mortgage portfolios as of September 30, 2013 and December 31, 2012. LTV ratios are updated monthly using the most recent Core Logic HPI 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 Office of Federal Housing Enterprise Oversight indices.

	September 30, 2013

LTV distribution in U.S. portfolio(1)(2) *In millions of dollars*	Less than or equal to 80%		> 80% but less than or equal to 100%		Greater than 100%
Residential first mortgages	$	46,072	$	13,840	$	5,660
Home equity loans		14,534		9,212		7,221

Total	$	60,606	$	23,052	$	12,881

(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.

	December 31, 2012

LTV distribution in U.S. portfolio(1)(2) *In millions of dollars*	Less than or equal to 80%		> 80% but less than or equal to 100%		Greater than 100%
Residential first mortgages	$	41,555	$	19,070	$	14,995
Home equity loans		12,611		9,529		13,153

Total	$	54,166	$	28,599	$	28,148

(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

Impaired loans are those loans about which Citigroup believes it is probable that it will not collect all amounts due according to the original contractual terms of the loan. Impaired Consumer loans include non-accrual commercial market loans, as well as smaller-balance homogeneous loans whose terms have been modified due to the borrower's financial difficulties and where Citigroup 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. In addition, impaired Consumer loans exclude substantially all loans modified pursuant to Citi's short-term modification programs (i.e., for periods of 12 months or less) that were modified prior to January 1, 2011.

As a result of OCC guidance issued in the third quarter of 2012, mortgage loans to borrowers that have gone through Chapter 7 bankruptcy are classified as TDRs. These TDRs, other than FHA-insured loans, are written down to collateral value less cost to sell. FHA-insured loans are reserved based on a discounted cash flow model (see Note 1 to the Consolidated Financial Statements in Citi's 2012 Annual Report on Form 10-K). The recorded investment in receivables reclassified to TDRs in the third quarter of 2012 as a result of this OCC guidance approximated $1,714 million, composed of $1,327 million of residential first mortgages and $387 million of home equity loans.

The following tables present information about total impaired Consumer loans at and for the periods ending September 30, 2013 and December 31, 2012, respectively, and for the three and nine months ended September 30, 2013 and September 30, 2012 for interest income recognized on impaired Consumer loans:

Impaired Consumer Loans

									Three Months Ended September 30,				Nine Months Ended September 30,

	September 30, 2013								2013		2012		2013		2012
*In millions of dollars*	Recorded investment(1)(2)		Unpaid principal balance		Related specific allowance(3)		Average carrying value(4)		Interest income recognized(5)(6)		Interest income recognized(5)(6)		Interest income recognized(5)(6)		Interest income recognized(5)(6)
Mortgage and real estate
Residential first mortgages	$	17,071	$	18,051	$	2,615	$	18,633	$	179	$	251	$	604	$	674
Home equity loans		2,234		2,832		595		2,115		23		31		61		64
Credit cards		3,490		3,535		1,274		4,032		56		75		182		240
Installment and other
Individual installment and other		1,075		1,099		588		1,218		35		88		118		218
Commercial market loans		357		596		179		414		5		5		17		18

Total(7)	$	24,227	$	26,113	$	5,251	$	26,412	$	298	$	450	$	982	$	1,214

(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): $2,201 million of residential first mortgages, $421 million of home equity loans and $133 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.
(6): Cash interest receipts on smaller-balance homogeneous loans are generally recorded as revenue. The interest recognition policy for commercial market loans is identical to that for Corporate loans, as described below.
(7): Prior to 2008, the Company's financial accounting systems did not separately track impaired smaller-balance, homogeneous Consumer loans whose terms were modified due to the borrowers' financial difficulties and where it was determined that a concession was granted to the borrower. Smaller-balance Consumer loans modified since January 1, 2008 amounted to $23.9 billion at September 30, 2013. However, information derived from Citi's risk management systems indicates that the amounts of outstanding modified loans, including those modified prior to 2008, approximated $24.5 billion at September 30, 2013.

	December 31, 2012

*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	$	20,870	$	22,062	$	3,585	$	19,956
Home equity loans		2,135		2,727		636		1,911
Credit cards		4,584		4,639		1,800		5,272
Installment and other
Individual installment and other		1,612		1,618		860		1,958
Commercial market loans		439		737		60		495

Total(5)	$	29,640	$	31,783	$	6,941	$	29,592

(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): $2,344 million of residential first mortgages, $378 million of home equity loans and $183 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 last four quarters and does not include related specific allowance.
(5): Prior to 2008, the Company's financial accounting systems did not separately track impaired smaller-balance, homogeneous Consumer loans whose terms were modified due to the borrowers' financial difficulties and where it was determined that a concession was granted to the borrower. Smaller-balance Consumer loans modified since January 1, 2008 amounted to $29.2 billion at December 31, 2012. However, information derived from Citi's risk management systems indicates that the amounts of outstanding modified loans, including those modified prior to 2008, approximated $30.1 billion at December 31, 2012.

Consumer Troubled Debt Restructurings

The following tables present Consumer TDRs occurring during the three- and nine-months ended September 30, 2013 and 2012:

	For the three months ended September 30, 2013

*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		7,375	$	933	$	28	$	15	$	34		1	%
Home equity loans		2,962		90		—		—		33		1
Credit cards		43,312		207		—		—		—		14
Installment and other revolving		13,880		99		—		—		—		6
Commercial markets(6)		44		6		—		—		—		—

Total		67,573	$	1,335	$	28	$	15	$	67

International
Residential first mortgages		738	$	30	$	—	$	—	$	1		1	%
Home equity loans		93		1		—		—		—		1
Credit cards		37,299		131		—		—		3		16
Installment and other revolving		12,650		70		—		—		2		9
Commercial markets(6)		88		30		1		—		—		—

Total		50,868	$	262	$	1	$	—	$	6

	For the three months ended September 30, 2012

*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		36,382	$	4,427	$	6	$	—	$	73		1	%
Home equity loans		23,523		516		2		—		17		—
Credit cards		51,304		254		—		—		—		15
Installment and other revolving		14,776		107		—		—		—		6
Commercial markets(6)		42		7		—		—		—		—

Total		126,027	$	5,311	$	8	$	—	$	90

International
Residential first mortgages		1,287	$	46	$	—	$	—	$	1		1	%
Home equity loans		1		—		—		—		—		—
Credit cards		33,535		132		—		—		5		15
Installment and other revolving		15,463		97		—		—		2		7
Commercial markets(6)		58		73		—		—		—		—

Total		50,344	$	348	$	—	$	—	$	8

(1): Post-modification balances include past due amounts that are capitalized at modification date.
(2): Post-modification balances in North America in the third quarter of 2013 include $138 million of residential first mortgages and $30 million of home equity loans to borrowers that have gone through Chapter 7 bankruptcy. These amounts include $87 million of residential first mortgages and $24 million of home equity loans that are newly classified as TDRs as a result of OCC guidance received in the third quarter of 2012, as described above.
(3): Represents portion of contractual loan principal that is non-interest bearing but still due from 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 is forgiven at the time of permanent modification.
(6): Commercial markets 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 in the third quarter of 2012 include $2,561 million of residential first mortgages and $452 million of home equity loans to borrowers that have gone through Chapter 7 bankruptcy. These amounts include $1,310 million of residential first mortgages and $385 million of home equity loans that are newly classified as TDRs as a result of OCC guidance received in the third quarter of 2012, as described above.

	For the nine months ended September 30, 2013

*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		25,757	$	3,387	$	45	$	17	$	136		1	%
Home equity loans		8,588		257		1		—		71		1
Credit cards		123,073		613		—		—		—		14
Installment and other revolving		39,816		284		—		—		—		7
Commercial markets(6)		166		25		—		—		—		—

Total		197,400	$	4,566	$	46	$	17	$	207

International
Residential first mortgages		2,935	$	137	$	—	$	—	$	2		1	%
Home equity loans		98		1		—		—		—		—
Credit cards		98,264		391		—		—		9		16
Installment and other revolving		38,877		245		—		—		6		8
Commercial markets(6)		296		76		2		—		—		—

Total		140,470	$	850	$	2	$	—	$	17

	For the nine months ended September 30, 2012

*In millions of dollars except number of loans modified*	Number of loans modified		Post- modification recorded investment(1)		Deferred principal(3)		Contingent principal forgiveness(4)		Principal forgiveness(5)		Average interest rate reduction
North America
Residential first mortgages		52,937	$	7,095	$	17	$	3	$	119		1	%
Home equity loans		28,472		702		4		—		39		2
Credit cards		188,414		962		—		—		—		16
Installment and other revolving		50,003		366		—		—		—		6
Commercial markets(6)		138		13		—		—		—		—

Total		319,964	$	9,138	$	21	$	3	$	158

International
Residential first mortgages		3,505	$	133	$	—	$	—	$	2		1	%
Home equity loans		3		—		—		—		—		—
Credit cards		106,003		387		—		—		18		15
Installment and other revolving		47,918		273		—		1		6		8
Commercial markets(6)		281		129		—		1		2		—

Total		157,710	$	922	$	—	$	2	$	28

(1): Post-modification balances include past due amounts that are capitalized at modification date.
(2): Post-modification balances in North America in the first nine months of 2013 include $387 million of residential first mortgages and $75 million of home equity loans to borrowers that have gone through Chapter 7 bankruptcy. These amounts include $265 million of residential first mortgages and $62 million of home equity loans that are newly classified as TDRs as a result of OCC guidance received in the third quarter of 2012, as described above.
(3): Represents portion of contractual loan principal that is non-interest bearing but still due from 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 is forgiven at the time of permanent modification.
(6): Commercial markets loans are generally borrower-specific modifications and incorporate changes in the amount and/or timing of principal and/or interest.

The following table presents Consumer TDRs that defaulted(1) during the three months and nine months ended September 30, 2013 and 2012, respectively, and for which the payment default occurred within one year of a permanent modification:

	Three Months Ended September 30,				Nine Months Ended September 30,

*In millions of dollars*	2013		2012		2013		2012
North America
Residential first mortgages	$	440	$	367	$	1,221	$	1,014
Home equity loans		51		46		154		99
Credit cards		41		103		155		431
Installment and other revolving		22		32		67		96
Commercial markets		1		—		3		—

Total	$	555	$	548	$	1,600	$	1,640

International
Residential first mortgages	$	12	$	19	$	48	$	54
Home equity loans		—		—		—		—
Credit cards		51		48		165		155
Installment and other revolving		24		26		82		79
Commercial markets		5		2		9		3

Total	$	92	$	95	$	304	$	291

(1): Default is defined as 60 days past due, except for classifiably managed commercial markets loans, where default is defined as 90 days past due.

Corporate Loans

Corporate loans represent loans and leases managed by the Institutional Clients Group in Citicorp or, to a lesser extent, in Citi Holdings. The following table presents information by Corporate loan type as of September 30, 2013 and December 31, 2012:

*In millions of dollars*	September 30, 2013			December 31, 2012

Corporate
In U.S. offices
Commercial and industrial	$	33,936		$	26,985
Financial institutions		22,813			18,159
Mortgage and real estate(1)		29,168			24,705
Installment, revolving credit and other		31,084			32,446
Lease financing		1,493			1,410

	$	118,494		$	103,705

In offices outside the U.S.
Commercial and industrial	$	86,012		$	82,939
Installment, revolving credit and other		16,783			14,958
Mortgage and real estate(1)		6,392			6,485
Financial institutions		40,403			37,739
Lease financing		538			605
Governments and official institutions		1,655			1,159

	$	151,783		$	143,885

Total Corporate loans	$	270,277		$	247,590
Net unearned income (loss)		(548	)		(797	)

Corporate loans, net of unearned income	$	269,729		$	246,793

(1): Loans secured primarily by real estate.

The Company sold and/or reclassified (to held-for-sale) $1,786 and $3,958 million of Corporate loans during the three and nine months ended September 30, 2013, respectively, and $745 million and $2,384 million during the three and nine months ended September 30, 2012, respectively.

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 as of September 30, 2013 and December 31, 2012:

Corporate Loan Delinquency and Non-Accrual Details at September 30, 2013

*In millions of dollars*	30-89 days past due and accruing(1)		³ 90 days past due and accruing(1)		Total past due and accruing		Total non-accrual(2)		Total current(3)		Total loans

Commercial and industrial	$	103	$	5	$	108	$	1,012	$	117,365	$	118,485
Financial institutions		3		—		3		341		61,284		61,628
Mortgage and real estate		168		259		427		580		33,665		34,672
Leases		2		1		3		190		1,838		2,031
Other		56		8		64		55		48,592		48,711
Loans at fair value												4,202

Total	$	332	$	273	$	605	$	2,178	$	262,744	$	269,729

(1): Corporate loans that are ³ 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): Citi generally does not manage Corporate loans on a delinquency basis. Non-accrual loans generally include those loans that are ³ 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): Corporate loans are past due when principal or interest is contractually due but unpaid. Loans less than 30 days past due are presented as current.

Corporate Loan Delinquency and Non-Accrual Details at December 31, 2012

*In millions of dollars*	30-89 days past due and accruing(1)		³ 90 days past due and accruing(1)		Total past due and accruing		Total non-accrual(2)		Total current(3)		Total loans

Commercial and industrial	$	38	$	10	$	48	$	1,078	$	107,650	$	108,776
Financial institutions		5		—		5		454		53,858		54,317
Mortgage and real estate		224		109		333		680		30,057		31,070
Leases		7		—		7		52		1,956		2,015
Other		70		6		76		69		46,414		46,559
Loans at fair value												4,056

Total	$	344	$	125	$	469	$	2,333	$	239,935	$	246,793

(1): Corporate loans that are ³ 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): Citi generally does not manage Corporate loans on a delinquency basis. Non-accrual loans generally include those loans that are ³ 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): Corporate loans are past due when principal or interest is contractually due but unpaid. Loans less than 30 days past due are presented as current.

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 at September 30, 2013 and December 31, 2012

	Recorded investment in loans(1)

*In millions of dollars*	September 30, 2013		December 31, 2012
Investment grade(2)
Commercial and industrial	$	83,745	$	73,822
Financial institutions		49,844		43,895
Mortgage and real estate		13,109		12,587
Leases		1,408		1,404
Other		44,764		42,575

Total investment grade	$	192,870	$	174,283

Non-investment grade(2)
Accrual
Commercial and industrial	$	33,728	$	33,876
Financial institutions		11,443		9,968
Mortgage and real estate		4,263		2,858
Leases		433		559
Other		3,892		3,915
Non-accrual
Commercial and industrial		1,012		1,078
Financial institutions		341		454
Mortgage and real estate		580		680
Leases		190		52
Other		55		69

Total non-investment grade	$	55,937	$	53,509

Private Banking loans managed on a delinquency basis(2)	$	16,720	$	14,945
Loans at fair value		4,202		4,056

Corporate loans, net of unearned income	$	269,729	$	246,793

(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 accounted for on an amortized cost basis.

Corporate loans and leases identified as impaired and placed on non-accrual status are written down to the extent that principal is judged to be uncollectible. 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 cost 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.

The following tables present non-accrual loan information by Corporate loan type at September 30, 2013 and December 31, 2012, respectively, and interest income recognized on non-accrual Corporate loans for the three and nine months ended September 30, 2013 and 2012, respectively:

Non-Accrual Corporate Loans

	September 30, 2013								Three Months Ended September 30, 2013		Nine Months Ended September 30, 2013

*In millions of dollars*	Recorded investment(1)		Unpaid principal balance		Related specific allowance		Average carrying value(2)		Interest income recognized(4)		Interest income recognized(4)
Non-accrual Corporate loans
Commercial and industrial	$	1,012	$	1,286	$	107	$	1,044	$	5	$	19
Financial institutions		341		372		1		400		—		2
Mortgage and real estate		580		734		54		627		1		2
Lease financing		190		192		118		155		—		—
Other		55		185		16		64		—		1

Total non-accrual Corporate loans	$	2,178	$	2,769	$	296	$	2,290	$	6	$	24

	December 31, 2012

*In millions of dollars*	Recorded investment(1)		Unpaid principal balance		Related specific allowance		Average carrying value(3)
Non-accrual Corporate loans
Commercial and industrial	$	1,078	$	1,368	$	155	$	1,076
Loans to financial institutions		454		504		14		518
Mortgage and real estate		680		810		74		811
Lease financing		52		61		16		19
Other		69		245		25		154

Total non-accrual Corporate loans	$	2,333	$	2,988	$	284	$	2,578

	September 30, 2013				December 31, 2012

*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	$	498	$	107	$	608	$	155
Financial institutions		25		1		41		14
Mortgage and real estate		315		54		345		74
Lease financing		186		118		47		16
Other		43		16		59		25

Total non-accrual Corporate loans with specific allowance	$	1,067	$	296	$	1,100	$	284

Non-accrual Corporate loans without specific allowance
Commercial and industrial	$	514			$	470
Financial institutions		316				413
Mortgage and real estate		265				335
Lease financing		4				5
Other		12				10

Total non-accrual Corporate loans without specific allowance	$	1,111		N/A	$	1,233		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): Average carrying value does not include related specific allowance.
(4): Interest income recognized for the three- and nine-month periods ended September 30, 2012 were $25 million and $88 million, respectively.

N/A Not Applicable

Corporate Troubled Debt Restructurings

The following tables provide details on TDR activity and default information as of and for the three- and nine-month periods ended September 30, 2013 and September 30, 2012.

The following table presents TDRs occurring during the three months ended September 30, 2013.

*In millions of dollars*	Carrying Value		TDRs involving changes in the amount and/or timing of principal payments(1)		TDRs involving changes in the amount and/or timing of interest payments(2)		TDRs involving changes in the amount and/or timing of both principal and interest payments		Balance of principal forgiven or deferred		Net P&L impact(3)

Commercial and industrial	$	11	$	—	$	—	$	11	$	—	$	—
Financial institutions		—		—		—		—		—		—
Mortgage and real estate		1		—		—		1		—		—
Other		1		—		—		1		—		—

Total	$	13	$	—	$	—	$	13	$	—	$	—

(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.
(2): TDRs involving changes in the amount or timing of interest payments may involve a below-market interest rate.
(3): Balances reflect charge-offs and reserves recorded during the three months ended September 30, 2013 on loans subject to a TDR during the period then ended.

The following table presents TDRs occurring during the three months ended September 30, 2012.

*In millions of dollars*	Carrying Value		TDRs involving changes in the amount and/or timing of principal payments(1)		TDRs involving changes in the amount and/or timing of interest payments(2)		TDRs involving changes in the amount and/or timing of both principal and interest payments		Balance of principal forgiven or deferred		Net P&L impact(3)

Commercial and industrial	$	47	$	47	$	—	$	—	$	—	$	—
Financial institutions		—		—		—		—		—		—
Mortgage and real estate		1		—		—		1		—		—
Other		—		—		—		—		—		—

Total	$	48	$	47	$	—	$	1	$	—	$	—

(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.
(2): TDRs involving changes in the amount or timing of interest payments may involve a below-market interest rate.
(3): Balances reflect charge-offs and reserves recorded during the three months ended September 30, 2012 on loans subject to a TDR during the period then ended.

The following table presents TDRs occurring during the nine months ended September 30, 2013.

*In millions of dollars*	Carrying Value		TDRs involving changes in the amount and/or timing of principal payments(1)		TDRs involving changes in the amount and/or timing of interest payments(2)		TDRs involving changes in the amount and/or timing of both principal and interest payments		Balance of principal forgiven or deferred		Net P&L impact(3)

Commercial and industrial	$	100	$	55	$	28	$	17	$	—	$	—
Loans to financial institutions		—		—		—		—		—		—
Mortgage and real estate		15		—		14		1		—		—
Other		5		—		—		5		—		—

Total	$	120	$	55	$	42	$	23	$	—	$	—

(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.
(2): TDRs involving changes in the amount or timing of interest payments may involve a below-market interest rate.
(3): Balances reflect charge-offs and reserves recorded during the nine months ended September 30, 2013 on loans subject to a TDR during the period then ended.

The following table presents TDRs occurring during the nine months ended September 30, 2012.

*In millions of dollars*	Carrying Value		TDRs involving changes in the amount and/or timing of principal payments(1)		TDRs involving changes in the amount and/or timing of interest payments(2)		TDRs involving changes in the amount and/or timing of both principal and interest payments		Balance of principal forgiven or deferred		Net P&L impact(3)

Commercial and industrial	$	86	$	71	$	4	$	11	$	—	$	1
Loans to financial institutions		—		—		—		—		—		—
Mortgage and real estate		94		60		—		34		—		—
Other		—		—		—		—		—		—

Total	$	180	$	131	$	4	$	45	$	—	$	1

(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.
(2): TDRs involving changes in the amount or timing of interest payments may involve a below-market interest rate.
(3): Balances reflect charge-offs and reserves recorded during the nine months ended September 30, 2012 on loans subject to a TDR during the period then ended.

The following table presents total corporate loans modified in a troubled debt restructuring at September 30, 2013 and 2012, as well as those TDRs that defaulted during the three and nine months of 2013 and 2012, and for which the payment default occurred within one year of modification.

*In millions of dollars*	TDR balances at September 30, 2013		TDR loans in payment default three months ended September 30, 2013		TDR loans in payment default nine months ended September 30, 2013		TDR balances at September 30, 2012		TDR loans in payment default three months ended September 30, 2012		TDR loans in payment default nine months ended September 30, 2012

Commercial and industrial	$	167	$	—	$	15	$	395	$	45	$	52
Loans to financial institutions		16		—		—		21		—		—
Mortgage and real estate		202		—		2		127		—		—
Other		393		—		—		557		—		—

Total	$	778	$	—	$	17	$	1,100	$	45	$	52