
	Commercial Loans		Consumer Loans		Total
	(in millions)


Balance at January 1, 2023	$	54	$	5	$	59
Provisions	1		3		4
Charge-offs	(1)		(1)		(2)


Balance at June 30, 2023	$	54	$	7	$	61



Balance at January 1, 2022	$	47	$	3	$	50
Provisions	2		1		3
Charge-offs	—		(1)		(1)


Balance at June 30, 2022	$	49	$	3	$	52

As of June 30, 2023 and December 31, 2022, accrued interest on commercial loans was $18 million and $17 million, respectively, and is recorded in Receivables and excluded from the amortized cost basis of commercial loans.

During the three months ended June 30, 2023 and 2022, the Company purchased nil and $57 million, respectively, of syndicated loans, and sold $2 million and $1 million, respectively, of syndicated loans. During the six months ended June 30, 2023 and 2022, the Company purchased $1 million and $57 million, respectively, of syndicated loans, and sold $3 million and $1 million, respectively, of syndicated loans.

During the three months ended June 30, 2023 and 2022, the Company purchased $52 million and $22 million, respectively, of residential mortgage loans. During the six months ended June 30, 2023 and 2022, the Company purchased $95 million and $23 million, respectively, of residential mortgage loans. The allowance for credit losses for residential mortgage loans was not material as of both June 30, 2023 and December 31, 2022.

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, 2023 and December 31, 2022. 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. There were no commercial mortgage loans past due as of both June 30, 2023 and December 31, 2022.

The tables below present the amortized cost basis of commercial mortgage loans by the year of origination and loan-to-value ratio:


	June 30, 2023
Loan-to-Value Ratio	2023		2022		2021		2020		2019		Prior		Total
	(in millions)
> 100%	$	—	$	—	$	—	$	—	$	2	$	23	$	25
80% - 100%	—		5		—		2		11		53		71
60% - 80%	16		27		8		14		41		122		228
40% - 60%	4		47		133		54		70		395		703
< 40%	7		32		51		41		82		603		816
Total	$	27	$	111	$	192	$	111	$	206	$	1,196	$	1,843


	December 31, 2022
Loan-to-Value Ratio	2022		2021		2020		2019		2018		Prior		Total
	(in millions)
> 100%	$	—	$	—	$	2	$	2	$	3	$	39	$	46
80% - 100%	7		9		2		20		8		29		75
60% - 80%	39		87		17		52		9		107		311
40% - 60%	48		89		69		90		57		435		788
< 40%	18		12		30		46		85		471		662
Total	$	112	$	197	$	120	$	210	$	162	$	1,081	$	1,882

Loan-to-value ratio is based on income and expense data provided by borrowers at least annually and long-term capitalization rate assumptions based on property type. For the six months ended June 30, 2023, the Company did not have any write-offs of commercial mortgage loans.

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, 2023		December 31, 2022		June 30, 2023		December 31, 2022
	(in millions)
East North Central	$	195	$	201	11	%	11	%
East South Central	52		54		3		3
Middle Atlantic	114		114		6		6
Mountain	134		129		7		7
New England	22		23		1		1
Pacific	640		638		35		34
South Atlantic	451		479		25		25
West North Central	116		120		6		6
West South Central	119		124		6		7
	1,843		1,882		100	%	100	%
Less: allowance for credit losses	11		11
Total	$	1,832	$	1,871


	Loans				Percentage
	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
	(in millions)
Apartments	$	489	$	495	27	%	26	%
Hotel	14		14		1		1
Industrial	309		321		17		17
Mixed use	67		66		4		4
Office	250		259		13		14
Retail	575		594		31		31
Other	139		133		7		7
	1,843		1,882		100	%	100	%
Less: allowance for credit losses	11		11
Total	$	1,832	$	1,871

The investment in syndicated loans as of June 30, 2023 and December 31, 2022 was $154 million and $175 million, respectively. The Company’s syndicated loan portfolio is diversified across industries and issuers. Syndicated loans past due were not material as of June 30, 2023 and no syndicated loans were past due as of December 31, 2022. 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. For the six months ended June 30, 2023, the Company did not have any write-offs of syndicated loans.


	June 30, 2023
Internal Risk Rating	2023		2022		2021		2020		2019		Prior		Total
	(in millions)
Risk 5	$	—	$	1	$	—	$	—	$	—	$	—	$	1
Risk 4	—		—		—		1		2		1		4
Risk 3	—		—		8		1		2		13		24
Risk 2	—		8		19		6		11		23		67
Risk 1	5		5		9		4		9		26		58
Total	$	5	$	14	$	36	$	12	$	24	$	63	$	154


	December 31, 2022
Internal Risk Rating	2022		2021		2020		2019		2018		Prior		Total
	(in millions)
Risk 5	$	1	$	—	$	—	$	—	$	—	$	—	$	1
Risk 4	—		—		—		2		—		2		4
Risk 3	—		9		1		6		5		8		29
Risk 2	8		21		7		12		5		28		81
Risk 1	6		9		4		6		13		22		60
Total	$	15	$	39	$	12	$	26	$	23	$	60	$	175

The Company offers loans to financial advisors for transitional cost assistance and practice operations. 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 $7 million and $6 million as of June 30, 2023 and December 31, 2022, respectively. For the six months ended June 30, 2023, write-offs of advisor loans were not material.


	June 30, 2023
Termination Status	2023		2022		2021		2020		2019		Prior		Total
	(in millions)
Active	$	191	$	336	$	163	$	120	$	91	$	194	$	1,095
Terminated	—		—		1		2		2		6		11
Total	$	191	$	336	$	164	$	122	$	93	$	200	$	1,106


	December 31, 2022
Termination Status	2022		2021		2020		2019		2018		Prior		Total
	(in millions)
Active	$	359	$	178	$	133	$	99	$	76	$	158	$	1,003
Terminated	—		1		1		2		1		5		10
Total	$	359	$	179	$	134	$	101	$	77	$	163	$	1,013

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, 2023 and December 31, 2022.


	June 30, 2023		December 31, 2022
	(in millions)
> 800	$	30	$	32
750 - 799	27		27
700 - 749	28		28
650 - 699	17		17
< 650	7		6
Total	$	109	$	110

Policy loans do not exceed the cash surrender value at origination. As there is minimal risk of loss related to policy loans, there is no allowance for credit losses.

The margin loans balance was $1.1 billion and $1.2 billion as of June 30, 2023 and December 31, 2022, 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, 2023 and December 31, 2022, there was no allowance for credit losses on margin loans.

The pledged asset lines of credit balance was $513 million and $589 million as of June 30, 2023 and December 31, 2022, 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 both June 30, 2023 and December 31, 2022, there was no allowance for credit losses on pledged asset lines of credit.

Deposit receivables were $6.9 billion and $7.4 billion as of June 30, 2023 and December 31, 2022, respectively. Deposit receivables are collateralized by the fair value of the assets held in trusts. Based on management’s evaluation of the collateral value relative to the deposit receivables, the allowance for credit losses for deposit receivables was not material as of both June 30, 2023 and December 31, 2022.