
	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)

Balance, June 30, 2020	$	65	$	4	$	69

The allowance for credit losses provision for commercial loans reflects the reclassification of certain commercial mortgage loans and syndicated loans to held for sale (recorded at the lower of amortized cost or fair value) as of June 30, 2021. Loans held for sale do not require measurement of lifetime expected credit losses because the recovery of the loan is expected to result from its sale, not from holding the loan and collecting contractual cash flows. The provision reflects a release of $14 million as a result of the reclassification to held for sale. A separate valuation allowance of $7 million was established to record the loans held for sale at the lower of amortized cost or fair value as of June 30, 2021. The release of the allowance for credit losses and the creation of the held for sale valuation allowance are both recorded in realized gains and losses within net investment income on the Consolidated Statements of Operations. See Note 1 for more information on the reinsurance transaction.

Accrued interest on commercial loans was $19 million and $16 million as of June 30, 2021 and December 31, 2020, 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, 2021 and 2020, the Company purchased $24 million and $13 million, respectively, of syndicated loans, and sold $4 million and nil, respectively, of syndicated loans. During the six months ended June 30, 2021 and 2020, the Company purchased $37 million and $69 million, respectively, of syndicated loans, and sold $8 million and $7 million, respectively, of syndicated loans.

During the three months ended June 30, 2021 and 2020, the Company purchased $4 million and $22 million, respectively, of residential mortgage loans. During the six months ended June 30, 2021 and 2020, the Company purchased $6 million and $22 million, respectively, of residential mortgage loans. The allowance for credit losses for residential mortgage loans was not material as of both June 30, 2021 and 2020.

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.

Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates when credit risk changes. 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, 2021 and December 31, 2020. 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. Total commercial mortgage loan modifications through June 30, 2021 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. As of June 30, 2021, there were no loans remaining that were modified due to COVID-19. All loans returned to their normal payment schedules. Total commercial mortgage loans past due were nil as of June 30, 2021 and December 31, 2020, respectively.

The tables below present the amortized cost basis of commercial mortgage loans by the year of origination and loan-to-value ratio (excludes commercial mortgage loans held for sale of $1.0 billion and nil as of June 30, 2021 and December 31, 2020, respectively):


	June 30, 2021
Loan-to-Value Ratio	2021		2020		2019		2018		2017		Prior		Total
	(in millions)
> 100%	$	—	$	—	$	10	$	11	$	—	$	12	$	33
80% - 100%	6		—		4		3		—		21		34
60% - 80%	80		67		64		28		62		131		432
40% - 60%	11		33		76		64		51		345		580
< 40%	5		1		42		3		52		461		564
Total	$	102	$	101	$	196	$	109	$	165	$	970	$	1,643


	December 31, 2020
Loan-to-Value Ratio	2020		2019		2018		2017		2016		Prior		Total
	(in millions)
> 100%	$	—	$	—	$	2	$	—	$	—	$	10	$	12
80% - 100%	15		16		12		3		7		15		68
60% - 80%	89		166		27		32		46		144		504
40% - 60%	23		57		74		155		113		551		973
< 40%	7		23		80		99		64		895		1,168
Total	$	134	$	262	$	195	$	289	$	230	$	1,615	$	2,725


	Loans				Percentage
	June 30, 2021		December 31, 2020		June 30, 2021		December 31, 2020
	(in millions)
East North Central	$	178	$	259	11	%	10	%
East South Central	66		115		4		4
Middle Atlantic	93		178		6		7
Mountain	123		247		7		9
New England	24		54		1		2
Pacific	571		825		35		30
South Atlantic	379		681		23		25
West North Central	124		198		8		7
West South Central	85		168		5		6
	1,643		2,725		100	%	100	%
Less: allowance for credit losses	14		29
Total commercial mortgage loans held for investment	1,629		2,696
Commercial mortgage loans held for sale (1)	1,023		—
Total commercial mortgage loans	$	2,652	$	2,696


	Loans				Percentage
	June 30, 2021		December 31, 2020		June 30, 2021		December 31, 2020
	(in millions)
Apartments	$	476	$	713	29	%	26	%
Hotel	15		50		1		2
Industrial	268		427		17		16
Mixed use	54		87		3		3
Office	217		372		13		14
Retail	509		881		31		32
Other	104		195		6		7
	1,643		2,725		100	%	100	%
Less: allowance for credit losses	14		29
Total commercial mortgage loans held for investment	1,629		2,696
Commercial mortgage loans held for sale (1)	1,023		—
Total commercial mortgage loans	$	2,652	$	2,696

The recorded investment in syndicated loans as of June 30, 2021 and December 31, 2020 were $539 million and $595 million, respectively, and included $174 million and $595 million of loans that are classified as held for investment as of June 30, 2021 and December 31, 2020, respectively. The Company’s syndicated loan portfolio is diversified across industries and issuers. Total syndicated loans past due were nil and $3 million as of June 30, 2021 and December 31, 2020, 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 tables below present the amortized cost basis of syndicated loans by origination year and internal risk rating (excludes loans held for sale of $365 million and nil as of June 30, 2021 and December 31, 2020, respectively):


	June 30, 2021
Internal Risk Rating	2021		2020		2019		2018		2017		Prior		Total
	(in millions)
Risk 5	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk 4	—		—		1		—		1		2		4
Risk 3	—		—		3		6		5		8		22
Risk 2	15		9		11		12		15		11		73
Risk 1	10		4		10		13		19		19		75
Total	$	25	$	13	$	25	$	31	$	40	$	40	$	174


	December 31, 2020
Internal Risk Rating	2020		2019		2018		2017		2016		Prior		Total
	(in millions)
Risk 5	$	—	$	—	$	—	$	—	$	—	$	3	$	3
Risk 4	—		—		4		9		—		10		23
Risk 3	—		9		8		25		13		25		80
Risk 2	30		57		62		69		14		41		273
Risk 1	17		32		47		58		22		40		216
Total	$	47	$	98	$	121	$	161	$	49	$	119	$	595

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 $8 million and $7 million as of June 30, 2021 and December 31, 2020, respectively.


	June 30, 2021
Termination Status	2021		2020		2019		2018		2017		Prior		Total
	(in millions)
Active	$	67	$	160	$	128	$	95	$	122	$	141	$	713
Terminated	1		—		—		—		1		8		10
Total	$	68	$	160	$	128	$	95	$	123	$	149	$	723


	December 31, 2020
Termination Status	2020		2019		2018		2017		2016		Prior		Total
	(in millions)
Active	$	171	$	137	$	101	$	127	$	83	$	86	$	705
Terminated	—		—		—		1		1		8		10
Total	$	171	$	137	$	101	$	128	$	84	$	94	$	715

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 based on the number of days past due. Credit card receivables over 30 days past due were 1% of total credit card receivables as of both June 30, 2021 and December 31, 2020.

The margin loans balance was $1.1 billion and $1.0 billion as of June 30, 2021 and December 31, 2020, respectively. 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, 2021 and December 31, 2020, the allowance for credit losses on margin loans was not material.

The pledged asset lines of credit balance was $350 million and $224 million as of June 30, 2021 and December 31, 2020, respectively. The Company monitors collateral supporting pledged asset lines of credit and requests additional collateral when necessary in order to mitigate the risk of loss. As of June 30, 2021 and December 31, 2020, there was no allowance for credit losses on pledged asset lines of credit.

The deposit receivable was $1.4 billion as of both June 30, 2021 and December 31, 2020. 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, there was no allowance for credit losses for the deposit receivable as of both June 30, 2021 and December 31, 2020.