Financing receivables are comprised of commercial loans, consumer loans, and the deposit receivable. See Note 2 for information regarding the Company’s accounting policies related to financing receivables and the allowance for credit losses.

The following tables present a rollforward of the allowance for credit losses for the six months ended June 30:


	Commercial Loans			Consumer Loans		Total
			(in millions)
Balance, December 31, 2019 ⁽¹⁾	$	51		$	—	$	51
Cumulative effect of adoption of current expected credit losses guidance	2			3		5
Balance, January 1, 2020	53			3		56
Provisions	13			3		16
Charge-offs	(1)			(2)		(3)
Recoveries	—			—		—
Balance, June 30, 2020	$	65		$	4	$	69

⁽¹⁾ Prior to January 1, 2020, the allowance for credit losses was based on an incurred loss model that did not require estimating expected credit losses over the expected life of the asset.


	Commercial Loans
			(in millions)
Balance, January 1, 2019	$	49
Provisions	2
Charge-offs	(1)

Balance, June 30, 2019	$	50

Accrued interest on commercial loans was $13 million and $14 million as of June 30, 2020 and December 31, 2019, respectively, and is recorded in receivables on the Consolidated Balance Sheets and excluded from the amortized cost basis of commercial loans.

During the three months ended June 30, 2020 and 2019, the Company purchased $13 million and $41 million, respectively, of syndicated loans, and sold nil and $14 million, respectively, of syndicated loans. During the six months ended June 30, 2020 and 2019, the Company purchased $69 million and $74 million, respectively, of syndicated loans, and sold $7 million and $27 million, respectively, of syndicated loans.

During both the three months and six months ended June 30, 2020, the Company purchased $22 million of residential mortgage loans from a third-party originator shortly after origination. The allowance for credit losses for residential mortgage loans was not material as of June 30, 2020.

Nonperforming loans were $29 million and $25 million as of June 30, 2020 and December 31, 2019, respectively. All other loans were considered to be performing.

The Company reviews the credit worthiness of the borrower and the performance of the underlying properties in order to determine the risk of loss on commercial mortgage loans. Loan-to-value ratio is the primary credit quality indicator included in this review. Total commercial mortgage loans past due were nil as of both June 30, 2020 and December 31, 2019.

Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates as necessary. Commercial mortgage loans which management has assigned its highest risk rating were less than 1% of total commercial mortgage loans as of both June 30, 2020 and December 31, 2019. Loans with the highest risk rating represent distressed loans which the

Company has identified as impaired or expects to become delinquent or enter into foreclosure within the next six months. As of June 30, 2020, commercial mortgage loan modifications due to the COVID-19 pandemic consisted of 93 loans with a total unpaid balance of $369 million. Modifications primarily consisted of short-term forbearance and interest only payments.

The table below presents the amortized cost basis of commercial mortgage loans as of June 30, 2020 by year of origination and loan-to-value ratio:


Loan-to-Value Ratio	2020			2019		2018		2017		2016		Prior		Total
			(in millions)
> 100%	$	—		$	—	$	3	$	—	$	—	$	10	$	13
80% - 100%	15			5		12		3		5		21		61
60% - 80%	70			185		27		32		56		159		529
40% - 60%	13			51		78		162		109		595		1,008
< 40%	6			25		78		99		65		932		1,205
Total	$	104		$	266	$	198	$	296	$	235	$	1,717	$	2,816

Loan-to-value ratio is based on income and expense data provided by borrowers at least annually and long-term capital rate assumptions based on property type.

In addition, the Company reviews the concentrations of credit risk by region and property type. Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows:


	Loans								Percentage
			June 30, 2020			December 31, 2019			June 30, 2020		December 31, 2019
			(in millions)
East North Central	$	249		$	239		9	%	9	%
East South Central	120			121			4		4
Middle Atlantic	188			182			7		6
Mountain	248			251			9		9
New England	55			54			2		2
Pacific	839			831			30		30
South Atlantic	729			723			26		26
West North Central	210			214			7		8
West South Central	178			182			6		6
	2,816			2,797			100	%	100	%
Less: allowance for credit losses	28			19
Total	$	2,788		$	2,778


	Loans								Percentage
			June 30, 2020			December 31, 2019			June 30, 2020		December 31, 2019
			(in millions)
Apartments	$	719		$	692		26	%	25	%
Hotel	50			51			2		2
Industrial	439			429			16		15
Mixed use	89			78			3		3
Office	402			419			14		15
Retail	912			931			32		33
Other	205			197			7		7
	2,816			2,797			100	%	100	%
Less: allowance for credit losses	28			19
Total	$	2,788		$	2,778

The recorded investment in syndicated loans as of June 30, 2020 and December 31, 2019 was $553 million and $543 million, respectively. The Company’s syndicated loan portfolio is diversified across industries and issuers. Total syndicated loans past due were nil and $1 million as of June 30, 2020 and December 31, 2019, respectively. The Company assigns an internal risk rating to each syndicated loan in its portfolio ranging from 1 through 5, with 5 reflecting the lowest quality.

The table below presents the amortized cost basis of syndicated loans as of June 30, 2020 by origination year and internal risk rating:


Internal Risk Rating	2020			2019		2018		2017		2016		Prior		Total
			(in millions)
Risk 5	$	—		$	—	$	1	$	—	$	—	$	—	$	1
Risk 4	—			7		4		9		2		7		29
Risk 3	4			9		11		27		10		19		80
Risk 2	11			43		57		53		21		56		241
Risk 1	9			27		50		59		18		39		202
Total	$	24		$	86	$	123	$	148	$	51	$	121	$	553

The Company offers loans to financial advisors for transitional cost assistance. Repayment of the loan is highly dependent on the retention of the financial advisor. In the event a financial advisor is no longer affiliated with the Company, any unpaid balances become immediately due. Accordingly, the primary risk factor for advisor loans is termination status. The allowance for credit losses related to loans to advisors that have terminated their relationship with the Company was $10 million as of both June 30, 2020 and December 31, 2019.

The table below presents the amortized cost basis of advisor loans as of June 30, 2020 by origination year and termination status:


Termination Status	2020			2019		2018		2017		2016		Prior		Total
			(in millions)
Active	$	82		$	145	$	107	$	132	$	88	$	102	$	656
Terminated	—			1		—		1		2		12		16
Total	$	82		$	146	$	107	$	133	$	90	$	114	$	672

The credit cards are co-branded with Ameriprise Financial, Inc. and issued to the Company’s customers by a third party. FICO scores and delinquency rates are the primary credit quality indicators for the credit card portfolio. Delinquency rates are measured as based on the number of days past due. Credit card receivables over 30 days past due were 1% and 2% as of June 30, 2020 and December 31, 2019, respectively.

The table below presents the amortized cost basis of credit card receivables by FICO score as of June 30, 2020:

Policy loans do not exceed the cash surrender value at origination. As there is minimal risk of loss related to policy loans, the Company does not record an allowance for credit losses.

The Company monitors collateral supporting margin loans and requests additional collateral when necessary in order to mitigate the risk of loss. As of both June 30, 2020 and December 31, 2019, the allowance for credit losses on margin loans was not material.

The deposit receivable was $1.5 billion as of both June 30, 2020 and December 31, 2019. The deposit receivable is fully collateralized by the fair value of the assets held in a trust. Based on management’s evaluation of the nature of the underlying assets and the potential for changes in the collateral value, the Company did not have an allowance for credit losses for the deposit receivable as of both June 30, 2020 and December 31, 2019.

The recorded investment in restructured loans was not material as of both June 30, 2020 and December 31, 2019. There were no loans accounted for as a troubled debt restructuring by the Company during both the three months and six months ended June 30, 2020 and 2019. The loan modifications granted during the three months ended June 30, 2020 are related to the COVID-19 pandemic and as such did not meet the definition of troubled debt restructurings. There are no commitments to lend additional funds to borrowers whose loans have been restructured.