LOANS (Tables)

9 Months Ended

Sep. 30, 2018

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



In millions of dollars	September 30, 2018		December 31, 2017
In U.S. offices
Mortgage and real estate⁽¹⁾	$	61,048	$	65,467
Installment, revolving credit and other	3,515		3,398
Cards	137,051		139,006
Commercial and industrial	7,686		7,840
	$	209,300	$	215,711
In offices outside the U.S.
Mortgage and real estate⁽¹⁾	$	43,714	$	44,081
Installment, revolving credit and other	27,899		26,556
Cards	24,971		26,257
Commercial and industrial	18,821		20,238
Lease financing	52		76
	$	115,457	$	117,208
Total consumer loans	$	324,757	$	332,919
Net unearned income	$	712	$	737
Consumer loans, net of unearned income	$	325,469	$	333,656


(1)	Loans secured primarily by real estate.

Schedule of loan delinquency and non-accrual details

Consumer Loan Delinquency and Non-Accrual Details at September 30, 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
Residential first mortgages⁽⁵⁾	$	46,038	$	503	$	263	$	903	$	47,707	$	628	$	641
Home equity loans⁽⁶⁾⁽⁷⁾	11,693		174		264		—		12,131		561		—
Credit cards	134,721		1,612		1,539		—		137,872		—		1,539
Installment and other	3,473		40		14		—		3,527		20		—
Commercial banking loans	9,206		25		48		—		9,279		114		—
Total	$	205,131	$	2,354	$	2,128	$	903	$	210,516	$	1,323	$	2,180
In offices outside North America
Residential first mortgages⁽⁵⁾	$	35,919	$	217	$	146	$	—	$	36,282	$	397	$	—
Credit cards	23,638		420		356		—		24,414		314		223
Installment and other	25,192		267		108		—		25,567		163		—
Commercial banking loans	28,569		54		66		—		28,689		177		—
Total	$	113,318	$	958	$	676	$	—	$	114,952	$	1,051	$	223
Total GCB and Corporate/Other— Consumer	$	318,449	$	3,312	$	2,804	$	903	$	325,468	$	2,374	$	2,403
Other⁽⁸⁾	1		—		—		—		1		—		—
Total Citigroup	$	318,450	$	3,312	$	2,804	$	903	$	325,469	$	2,374	$	2,403


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


(2)	Includes $21 million of residential first mortgages recorded at fair value.


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


(4)	Consists of residential first mortgages that are guaranteed by U.S. government-sponsored entities that are 30–89 days past due of $0.2 billion and 90 days or more past due of $0.7 billion.


(5)	Includes approximately $0.1 billion of residential first mortgage loans in process of foreclosure.


(6)	Includes approximately $0.1 billion of home equity loans in process of foreclosure.


(7)	Fixed-rate home equity loans and loans extended under home equity lines of credit, which are typically in junior lien positions.


(8)	Represents loans classified as consumer loans on the Consolidated Balance Sheet that are not included in GCB or Corporate/Other consumer credit metrics.

Consumer Loan Delinquency and Non-Accrual Details at December 31, 2017



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
Residential first mortgages⁽⁵⁾	$	47,366	$	505	$	280	$	1,225	$	49,376	$	665	$	941
Home equity loans⁽⁶⁾⁽⁷⁾	14,268		207		352		—		14,827		750		—
Credit cards	136,588		1,528		1,613		—		139,729		—		1,596
Installment and other	3,395		45		16		—		3,456		22		1
Commercial banking loans	9,395		51		65		—		9,511		213		—
Total	$	211,012	$	2,336	$	2,326	$	1,225	$	216,899	$	1,650	$	2,538
In offices outside North America
Residential first mortgages⁽⁵⁾	$	37,062	$	209	$	148	$	—	$	37,419	$	400	$	—
Credit cards	24,934		427		366		—		25,727		323		259
Installment and other	25,634		275		123		—		26,032		157		—
Commercial banking loans	27,449		57		72		—		27,578		160		—
Total	$	115,079	$	968	$	709	$	—	$	116,756	$	1,040	$	259
Total GCB and Corporate/Other— Consumer	$	326,091	$	3,304	$	3,035	$	1,225	$	333,655	$	2,690	$	2,797
Other⁽⁸⁾	1		—		—		—		1		—		—
Total Citigroup	$	326,092	$	3,304	$	3,035	$	1,225	$	333,656	$	2,690	$	2,797


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


(2)	Includes $25 million of residential first mortgages recorded at fair value.


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


(4)	Consists of residential first mortgages that are guaranteed by U.S. government-sponsored entities that are 30–89 days past due of $0.2 billion and 90 days or more past due of $1.0 billion.


(5)	Includes approximately $0.1 billion of residential first mortgage loans in process of foreclosure.


(6)	Includes approximately $0.1 billion of home equity loans in process of foreclosure.


(7)	Fixed-rate home equity loans and loans extended under home equity lines of credit, which are typically in junior lien positions.


(8)	Represents loans classified as consumer loans on the Consolidated Balance Sheet that are not included in GCB or Corporate/Other consumer credit metrics.

Schedule of loans credit quality indicators

The following tables provide details on the FICO scores for Citi’s U.S. consumer loan portfolio based on end-of-period receivables (commercial banking loans are excluded from 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 for the remaining portfolio.



FICO score distribution in U.S. portfolio⁽¹⁾⁽²⁾	September 30, 2018
In millions of dollars	Less than 680		680 to 760		Greater than 760
Residential first mortgages	$	4,647	$	13,854	$	26,553
Home equity loans	2,575		4,495		4,692
Credit cards	31,379		56,636		47,675
Installment and other	624		1,080		1,189
Total	$	39,225	$	76,065	$	80,109



FICO score distribution in U.S. portfolio⁽¹⁾⁽²⁾	December 31, 2017
In millions of dollars	Less than 680		680 to 760		Greater than 760
Residential first mortgages	$	5,603	$	14,423	$	26,271
Home equity loans	3,347		5,439		5,650
Credit cards	30,875		56,443		48,989
Installment and other	716		1,020		1,275
Total	$	40,541	$	77,325	$	82,185


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

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⁾	September 30, 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	$	42,823	$	2,205	$	151
Home equity loans	9,884		1,366		446
Total	$	52,707	$	3,571	$	597



LTV distribution in U.S. portfolio⁽¹⁾⁽²⁾	December 31, 2017
In millions of dollars	Less than or equal to 80%		> 80% but less than or equal to 100%		Greater than 100%
Residential first mortgages	$	43,626	$	2,578	$	247
Home equity loans	11,403		2,147		800
Total	$	55,029	$	4,725	$	1,047


(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.

Schedule of impaired loans

The following tables present information about impaired consumer loans and interest income recognized on impaired consumer loans:



									Three Months Ended September 30,				Nine Months Ended September 30,
	Balance at September 30, 2018								2018		2017		2018		2017
In millions of dollars	Recorded investment⁽¹⁾⁽²⁾		Unpaid principal balance		Related specific allowance⁽³⁾		Average carrying value⁽⁴⁾		Interest income recognized⁽⁵⁾		Interest income recognized⁽⁵⁾		Interest income recognized⁽⁵⁾		Interest income recognized⁽⁵⁾
Mortgage and real estate
Residential first mortgages	$	2,294	$	2,508	$	197	$	2,670	$	21	$	29	$	63	$	97
Home equity loans	704		980		125		815		2		7		10		21
Credit cards	1,801		1,828		654		1,807		24		37		79		110
Installment and other
Individual installment and other	406		436		153		421		5		5		17		18
Commercial banking	296		441		46		306		2		4		10		18
Total	$	5,501	$	6,193	$	1,175	$	6,019	$	54	$	82	$	179	$	264


(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)	$529 million of residential first mortgages, $270 million of home equity loans and $25 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.



	Balance, December 31, 2017
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	$	2,877	$	3,121	$	278	$	3,155
Home equity loans	1,151		1,590		216		1,181
Credit cards	1,787		1,819		614		1,803
Installment and other
Individual installment and other	431		460		175		415
Commercial banking	334		541		51		429
Total	$	6,580	$	7,531	$	1,334	$	6,983


(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)	$607 million of residential first mortgages, $370 million of home equity loans and $10 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.

Schedule of troubled debt restructurings

Consumer Troubled Debt Restructurings



	For the Three Months Ended September 30, 2018
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	461	$	66	$	—	$	—	$	—	—	%
Home equity loans	261	26		1		—		—		1
Credit cards	61,508	253		—		—		—		18
Installment and other revolving	322	2		—		—		—		5
Commercial banking⁽⁶⁾	11	3		—		—		—		—
Total⁽⁸⁾	62,563	$	350	$	1	$	—	$	—
International
Residential first mortgages	660	$	22	$	—	$	—	$	—	—	%
Credit cards	18,413	77		—		—		2		17
Installment and other revolving	6,421	34		—		—		2		10
Commercial banking⁽⁶⁾	131	9		—		—		—		—
Total⁽⁸⁾	25,625	$	142	$	—	$	—	$	4



	For the Three Months Ended September 30, 2017
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	1,400	$	199	$	1	$	—	$	—	—	%
Home equity loans	830	70		5		—		—		1
Credit cards	59,285	225		—		—		—		17
Installment and other revolving	299	2		—		—		—		6
Commercial banking⁽⁶⁾	33	59		—		—		—		—
Total⁽⁸⁾	61,847	$	555	$	6	$	—	$	—
International
Residential first mortgages	703	$	25	$	—	$	—	$	—	—	%
Credit cards	28,254	103		—		—		2		11
Installment and other revolving	11,725	70		—		—		3		11
Commercial banking⁽⁶⁾	97	11		—		—		—		—
Total⁽⁸⁾	40,779	$	209	$	—	$	—	$	5


(1)	Post-modification balances include past due amounts that are capitalized at the modification date.

(2)

Post-modification balances in North America include $10 million of residential first mortgages and $2 million of home equity loans to borrowers who have gone through Chapter 7 bankruptcy in the three months ended September 30, 2018. These amounts include $7 million of residential first mortgages and $2 million of home equity loans that were newly classified as TDRs in the three months ended September 30, 2018, 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)	Commercial banking 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 include $12 million of residential first mortgages and $5 million of home equity loans to borrowers who have gone through Chapter 7 bankruptcy in the three months ended September 30, 2017. These amounts include $7 million of residential first mortgages and $5 million of home equity loans that were newly classified as TDRs in the three months ended September 30, 2017, based on previously received OCC guidance.


(8)	The above tables reflect activity for loans outstanding that were considered TDRs as of the end of the reporting period.



	For the Nine Months Ended September 30, 2018
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	1,544	$	233	$	2	$	—	$	—	—	%
Home equity loans	1,097	104		4		—		—		1
Credit cards	180,170	717		—		—		—		17
Installment and other revolving	956	7		—		—		—		5
Commercial banking⁽⁶⁾	37	5		—		—		—		—
Total⁽⁸⁾	183,804	$	1,066	$	6	$	—	$	—
International
Residential first mortgages	1,833	$	62	$	—	$	—	$	—	—	%
Credit cards	59,589	249		—		—		7		16
Installment and other revolving	22,918	136		—		—		6		10
Commercial banking⁽⁶⁾	433	60		—		—		—		1
Total⁽⁸⁾	84,773	$	507	$	—	$	—	$	13



	For the Nine Months Ended September 30, 2017
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	3,172	$	445	$	5	$	—	$	2	1	%
Home equity loans	2,186	185		13		—		—		1
Credit cards	171,702	659		—		—		—		17
Installment and other revolving	770	6		—		—		—		5
Commercial banking⁽⁶⁾	89	107		—		—		—		—
Total⁽⁸⁾	177,919	$	1,402	$	18	$	—	$	2
International
Residential first mortgages	2,071	$	80	$	—	$	—	$	—	—	%
Credit cards	82,042	286		—		—		6		12
Installment and other revolving	34,654	194		—		—		9		9
Commercial banking⁽⁶⁾	182	30		—		—		—		—
Total⁽⁸⁾	118,949	$	590	$	—	$	—	$	15


(1)	Post-modification balances include past due amounts that are capitalized at the modification date.

(2)

Post-modification balances in North America include $29 million of residential first mortgages and $10 million of home equity loans to borrowers who have gone through Chapter 7 bankruptcy in the nine months ended September 30, 2018. These amounts include $20 million of residential first mortgages and $9 million of home equity loans that were newly classified as TDRs in the nine months ended September 30, 2018, 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)	Commercial banking 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 include $42 million of residential first mortgages and $16 million of home equity loans to borrowers who have gone through Chapter 7 bankruptcy in the nine months ended September 30, 2017. These amounts include $28 million of residential first mortgages and $14 million of home equity loans that were newly classified as TDRs in the nine months ended September 30, 2017, based on previously received OCC guidance.


(8)	The above tables reflect activity for loans outstanding that were considered TDRs as of the end of the reporting period.

Schedule of troubled debt restructuring loans that defaulted

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, except for classifiably managed commercial banking loans, where default is defined as 90 days past due.



	Three Months Ended September 30,				Nine Months Ended September 30,
In millions of dollars	2018		2017		2018		2017
North America
Residential first mortgages	$	31	$	57	$	105	$	156
Home equity loans	5		8		21		25
Credit cards	57		54		173		163
Installment and other revolving	1		1		2		2
Commercial banking	1		—		22		2
Total	$	95	$	120	$	323	$	348
International
Residential first mortgages	$	2	$	3	$	6	$	8
Credit cards	48		48		156		136
Installment and other revolving	18		25		62		71
Commercial banking	7		—		17		—
Total	$	75	$	76	$	241	$	215

Corporate

Loans receivable

Schedule of loans

The following table presents information by corporate loan type:



In millions of dollars	September 30, 2018			December 31, 2017
In U.S. offices
Commercial and industrial	$	51,365		$	51,319
Financial institutions	46,255			39,128
Mortgage and real estate⁽¹⁾	47,629			44,683
Installment, revolving credit and other	32,201			33,181
Lease financing	1,445			1,470
	$	178,895		$	169,781
In offices outside the U.S.
Commercial and industrial	$	98,281		$	93,750
Financial institutions	37,851			35,273
Mortgage and real estate⁽¹⁾	7,344			7,309
Installment, revolving credit and other	22,827			22,638
Lease financing	131			190
Governments and official institutions	4,898			5,200
	$	171,332		$	164,360
Total corporate loans	$	350,227		$	334,141
Net unearned income	$	(787	)	$	(763	)
Corporate loans, net of unearned income	$	349,440		$	333,378


(1)	Loans secured primarily by real estate.

Schedule of loan delinquency and non-accrual details

Corporate Loan Delinquency and Non-Accrual Details at September 30, 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	$	430	$	30	$	460	$	1,123	$	145,612	$	147,195
Financial institutions	146		9		155		74		82,299		82,528
Mortgage and real estate	209		5		214		258		54,492		54,964
Leases	16		3		19		—		1,557		1,576
Other	79		41		120		85		58,754		58,959
Loans at fair value											4,218
Total	$	880	$	88	$	968	$	1,540	$	342,714	$	349,440

Corporate Loan Delinquency and Non-Accrual Details at December 31, 2017



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	$	249	$	13	$	262	$	1,506	$	139,554	$	141,322
Financial institutions	93		15		108		92		73,557		73,757
Mortgage and real estate	147		59		206		195		51,563		51,964
Leases	68		8		76		46		1,533		1,655
Other	70		13		83		103		60,145		60,331
Loans at fair value											4,349
Total	$	627	$	108	$	735	$	1,942	$	326,352	$	333,378


(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 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.

Schedule of loans credit quality indicators

Corporate Loans Credit Quality Indicators



	Recorded investment in loans⁽¹⁾
In millions of dollars	September 30, 2018		December 31, 2017
Investment grade⁽²⁾
Commercial and industrial	$	102,875	$	101,313
Financial institutions	70,435		60,404
Mortgage and real estate	24,351		23,213
Leases	1,054		1,090
Other	53,609		56,306
Total investment grade	$	252,324	$	242,326
Non-investment grade⁽²⁾
Accrual
Commercial and industrial	$	43,196	$	38,503
Financial institutions	12,019		13,261
Mortgage and real estate	3,240		2,881
Leases	523		518
Other	5,264		3,924
Non-accrual
Commercial and industrial	1,123		1,506
Financial institutions	74		92
Mortgage and real estate	258		195
Leases	—		46
Other	85		103
Total non-investment grade	$	65,782	$	61,029
Non-rated private bank loans managed on a delinquency basis⁽²⁾	$	27,116	$	25,674
Loans at fair value	4,218		4,349
Corporate loans, net of unearned income	$	349,440	$	333,378


(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.

Schedule of impaired loans

The following tables present non-accrual loan information by corporate loan type and interest income recognized on non-accrual corporate loans:



	September 30, 2018								Three Months Ended September 30, 2018		Nine Months Ended September 30, 2018
In millions of dollars	Recorded investment⁽¹⁾		Unpaid principal balance		Related specific allowance		Average carrying value⁽²⁾		Interest income recognized⁽³⁾		Interest income recognized⁽³⁾
Non-accrual corporate loans
Commercial and industrial	$	1,123	$	1,379	$	207	$	1,246	$	8	$	24
Financial institutions	74		90		39		97		—		—
Mortgage and real estate	258		423		45		228		—		1
Lease financing	—		39		—		33		—		—
Other	85		205		13		90		—		—
Total non-accrual corporate loans	$	1,540	$	2,136	$	304	$	1,694	$	8	$	25



	December 31, 2017
In millions of dollars	Recorded investment⁽¹⁾		Unpaid principal balance		Related specific allowance		Average carrying value⁽²⁾
Non-accrual corporate loans
Commercial and industrial	$	1,506	$	1,775	$	368	$	1,547
Financial institutions	92		102		41		212
Mortgage and real estate	195		324		11		183
Lease financing	46		46		4		59
Other	103		212		2		108
Total non-accrual corporate loans	$	1,942	$	2,459	$	426	$	2,109



	September 30, 2018				December 31, 2017
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	$	643	$	207	$	1,017	$	368
Financial institutions	72		39		88		41
Mortgage and real estate	122		45		51		11
Lease financing	—		—		46		4
Other	17		13		13		2
Total non-accrual corporate loans with specific allowance	$	854	$	304	$	1,215	$	426
Non-accrual corporate loans without specific allowance
Commercial and industrial	$	480			$	489
Financial institutions	2				4
Mortgage and real estate	136				144
Lease financing	—				—
Other	68				90
Total non-accrual corporate loans without specific allowance	$	686	N/A		$	727	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 three and nine months ended September 30, 2017 was $11 million and $30 million, respectively.

N/A Not applicable

Schedule of troubled debt restructurings

For the three months ended September 30, 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	$	62	$	1	$	4	$	57
Mortgage and real estate	3		—		—		3
Total	$	65	$	1	$	4	$	60

For the three months ended September 30, 2017:



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	$	175	$	99	$	—	$	76
Mortgage and real estate	14		—		—		14
Total	$	189	$	99	$	—	$	90

For the nine months ended September 30, 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	$	103	$	5	$	8	$	90
Mortgage and real estate	6		—		—		6
Total	$	109	$	5	$	8	$	96

For the nine months ended September 30, 2017:



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	$	463	$	131	$	—	$	332
Mortgage and real estate	15		—		—		15
Other	18		—		—		18
Total	$	496	$	131	$	—	$	365

(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.

Schedule of troubled debt restructuring loans that defaulted

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 September 30, 2018		TDR loans in payment default during the three months ended September 30, 2018		TDR loans in payment default nine months ended September 30, 2018		TDR balances at September 30, 2017		TDR loans in payment default during the three months ended September 30, 2017		TDR loans in payment default during the nine months ended September 30, 2017
Commercial and industrial	$	480	$	—	$	70	$	686	$	—	$	12
Financial institutions	21		—		—		24		—		3
Mortgage and real estate	71		—		—		84		—		—
Other	42		—		—		155		—		—
Total⁽¹⁾	$	614	$	—	$	70	$	949	$	—	$	15


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