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Loans and Leases Receivable Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS | LOANSCitigroup loans are reported in two categories: corporate and consumer. These categories are classified primarily according to the operating segment and component that manage the loans in addition to the nature of the obligor, with corporate loans generally made for corporate institutional and public sector clients around the world and consumer loans to retail and small business customers. For additional information regarding Citi’s corporate and consumer loans, including related accounting policies, see Note 1 and Notes 1 and 14 to the Consolidated Financial Statements in Citi’s 2022 Form 10-K. Corporate Loans Corporate loans represent loans and leases managed by ICG and the Mexico SBMM component of Legacy Franchises. The following table presents information by corporate loan type:
(1)North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America. The classification between offices in North America and outside North America is based on the domicile of the booking unit. The difference between the domicile of the booking unit and the domicile of the managing unit is not material. (2)Loans secured primarily by real estate. (3)Corporate loans are net of unearned income of ($801) million and ($797) million at March 31, 2023 and December 31, 2022, respectively. Unearned income on corporate loans primarily represents interest received in advance, but not yet earned, on loans originated on a discounted basis. (4)Not included in the balances above is approximately $2 billion of accrued interest receivable at March 31, 2023 and December 31, 2022, which is included in Other assets on the Consolidated Balance Sheet. (5)Accrued interest receivable considered to be uncollectible is reversed through interest income. Amounts reversed were not material for the three months ended March 31, 2023 and 2022. The Company sold and/or reclassified to held-for-sale $0.9 billion and $0.3 billion of corporate loans during the three months ended March 31, 2023 and 2022, respectively. The Company did not have significant purchases of corporate loans classified as held-for-investment for the three months ended March 31, 2023 or 2022.Corporate Loan Delinquencies and Non-Accrual Details at March 31, 2023
Corporate Loan Delinquencies and Non-Accrual Details at December 31, 2022
(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 or more 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 and/or principal is doubtful. (3)Loans less than 30 days past due are presented as current. (4)The Total loans column includes loans at fair value, which are not included in the various delinquency columns, and therefore the tables’ total rows will not cross-foot. Corporate Loans Credit Quality Indicators
(1)Recorded investment in a loan includes net deferred loan fees and costs, unamortized premium or discount, less any direct write-downs. (2)There were no significant revolving line of credit arrangements that converted to term loans during the quarter. (3)Held-for-investment loans are accounted for on an amortized cost basis. (4)Includes certain short-term loans with less than one year in tenor. (5)Other includes installment and other, lease financing and loans to government and official institutions. (6)Loans at fair value include loans to commercial and industrial, financial institutions, mortgage and real estate and other. (7)In the first quarter of 2023, Citi identified that at December 31, 2022 certain loans originated prior to 2022 were disclosed as originating in 2022. The table above has been revised to reflect the correct origination year. Citi evaluated the effect of the revision, both qualitatively and quantitatively, and concluded that the impact of the revision was not material. The impact of the revision increased (decreased) the year of origination amounts as follows: $(24.9) billion, $2.0 billion, $3.2 billion, $4.6 billion, $4.1 billion and $11.0 billion for 2022, 2021, 2020, 2019, 2018 and prior, respectively. Gross Credit Losses The table below details gross credit losses recognized in the three months ended March 31, 2023, by year of loan origination:
(1) Other includes installment and other, lease financing and loans to government and official institutions. Non-Accrual Corporate Loans
(1)Recorded investment in a loan includes net deferred loan fees and costs, unamortized premium or discount, less any direct write-downs. (2)Interest income recognized for the three months ended March 31, 2023, December 31, 2022 and March 31, 2022 was $11 million, $15 million and $11 million, respectively. N/A Not applicable Corporate Loan Modifications to Borrowers Experiencing Financial Difficulty Citi seeks to modify certain corporate loans to borrowers experiencing financial difficulty to reduce Citi’s exposure to loss, often providing the borrower with an opportunity to work through financial difficulties. Each modification is unique to the borrower’s individual circumstances. The following table details corporate loan modifications granted during the three months ended March 31, 2023 to borrowers experiencing financial difficulty by type of modification granted and the financial effect of those modifications. Citi defines a corporate loan modification to a borrower experiencing financial difficulty as a modification of a loan classified as substandard or worse at the time of modification.
(1)The above table reflects activity for loans outstanding as of the end of the reporting period. The balances are not significant as a percentage of the total carrying values of loans by class of receivable as of March 31, 2023. (2)Commitments to lend to borrowers experiencing financial difficulty that were granted modifications totaled $368 million as of March 31, 2023. (3)The allowance for corporate loans, including modified loans, is based on the borrower’s overall financial performance. Charge-offs for amounts deemed uncollectible may be recorded at the time of the modification or may have already been recorded in prior periods such that no charge-off is required at the time of modification. (4)Other includes installment and other, lease financing and loans to government and official institutions. (5)Payment delays either for principal or interest payments were immaterial.
(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 uncollectible 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. (3) Other includes installment and other, lease financing and loans to government and official institutions. Performance of Modified Corporate Loans The following table presents the delinquencies of modified corporate loans to borrowers experiencing financial difficulty, including loans that were modified during the three months ended March 31, 2023:
(1)Corporate loans are generally not modified as a result of their delinquency status; rather, they are modified because of events that have impacted the overall financial performance of the borrower. Corporate loans, if past due, are re-aged to current status upon modification. (2)Other includes installment and other, lease financing and loans to government and official institutions. Defaults of Modified Corporate Loans No modified corporate loans to borrowers experiencing financial difficulty defaulted during the three months ended March 31, 2023. Default is defined as 60 days past due, except for classifiably managed commercial banking loans, where default is defined as 90 days past due. For a modified corporate loan that is not collateral dependent, expected default rates are considered in the loan’s individually assessed ACL.
(1) Other includes installment and other, lease financing and loans to government and official institutions. (2) The above table reflects activity for loans outstanding that were considered TDRs as of the end of the reporting period. Consumer Loans Consumer loans represent loans and leases managed primarily by PBWM and Legacy Franchises (except Mexico SBMM). The tables below present details about these loans, including the following loan categories: •Residential first mortgages and Home equity loans in North America offices primarily represent secured mortgage lending to customers of Retail banking and Global Wealth (primarily Private bank and Citigold). •Credit cards in North America offices primarily represent unsecured credit card lending to customers of Branded cards and Retail services. •Personal, small business and other loans in North America are primarily composed of classifiably managed loans to customers of Global Wealth (mostly within the Private bank) who are typically high credit quality borrowers that historically experienced minimal delinquencies and credit losses. Loans to these borrowers are generally well collateralized in the form of liquid securities and other forms of collateral. •Residential mortgage loans in offices outside North America primarily represent secured mortgage lending to customers of Global Wealth (primarily Private bank and Citigold) as well as customers of Legacy Franchises. •Credit cards in offices outside North America primarily represent unsecured credit card lending to customers of Legacy Franchises, primarily in Asia and Mexico. •Personal, small business and other loans in offices outside North America are primarily composed of secured and unsecured loans to customers of PBWM and Legacy Franchises. A significant portion of PBWM loans is classifiably managed and represents loans to high credit quality Private bank customers who historically experienced minimal delinquencies and credit losses. Loans to these borrowers are generally well collateralized in the form of liquid securities and other forms of collateral. The following tables provide Citi’s consumer loans by type: Consumer Loans, Delinquencies and Non-Accrual Status at March 31, 2023
(1)Loans less than 30 days past due are presented as current. (2)Includes $238 million of residential first mortgages recorded at fair value. (3)Excludes loans guaranteed by U.S. government-sponsored agencies. Excludes delinquencies on $31.5 billion and $17.8 billion of classifiably managed Private bank loans in North America and outside North America, respectively. (4)Loans modified under Citi’s COVID-19 consumer relief programs continue to be reported in the same delinquency bucket they were in at the time of modification. Most modified loans in North America would not be reported as 30–89 or 90+ days past due for the duration of the programs (which have various durations, and certain of which may be renewed). (5)Consists of loans that are guaranteed by U.S. government-sponsored agencies that are 30–89 days past due of $0.1 billion and 90 days or more past due of $0.1 billion. (6)North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America. (7)Includes approximately $0.1 billion and $0.0 billion of residential first mortgage loans in process of foreclosure in North America and outside North America, respectively, and $20.3 billion of residential mortgages outside North America related to the Global Wealth business. (8)Includes approximately $0.1 billion of home equity loans in process of foreclosure. (9)Fixed-rate home equity loans and loans extended under home equity lines of credit, which are typically in junior lien positions. (10)Includes loans related to the Global Wealth business: $33.9 billion in North America, approximately $31.5 billion of which are classifiably managed, and as of March 31, 2023 approximately 95% were rated investment grade; and $26.3 billion outside North America, approximately $17.8 billion of which are classifiably managed, and as of March 31, 2023 approximately 89% were rated investment grade. The classifiably managed portion of these loans is shown as “current” because the delinquency status is not applicable, since these loans are primarily evaluated for credit risk based on their internal risk classification. (11)Consumer loans are net of unearned income of $748 million. Unearned income on consumer loans primarily represents unamortized origination fees and costs, premiums and discounts. (12)Not included in the balances above is approximately $1 billion of accrued interest receivable at March 31, 2023, which is included in Other assets on the Consolidated Balance Sheet, except for credit card loans (which include accrued interest and fees). When a loan becomes non-accrual or, if not subject to a non-accrual policy, is charged off per the Company’s charge-off policy, any accrued interest receivable is also reversed against the interest income. During the three months ended March 31, 2023, the Company reversed accrued interest of approximately $0.2 billion, primarily related to credit card loans. Consumer Loans, Delinquencies and Non-Accrual Status at December 31, 2022
(1)Loans less than 30 days past due are presented as current. (2)Includes $237 million of residential first mortgages recorded at fair value. (3)Excludes loans guaranteed by U.S. government-sponsored agencies. Excludes $31.5 billion and $17.8 billion of classifiably managed Private bank loans in North America and outside North America, respectively. (4)Loans modified under Citi’s COVID-19 consumer relief programs continue to be reported in the same delinquency bucket they were in at the time of modification. Most modified loans in North America would not be reported as 30–89 or 90+ days past due for the duration of the programs (which have various durations, and certain of which may be renewed). (5)Consists of loans that are guaranteed by U.S. government-sponsored agencies that are 30–89 days past due of $0.1 billion and 90 days or more past due of $0.2 billion. (6)North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America. (7)Includes approximately $0.1 billion of residential first mortgage loans in process of foreclosure, and $19.8 billion of residential mortgages outside North America related to the Global Wealth business at December 31, 2022. (8)Includes approximately $0.1 billion of home equity loans in process of foreclosure. (9)Fixed-rate home equity loans and loans extended under home equity lines of credit, which are typically in junior lien positions. (10)Includes loans related to the Global Wealth business: $34.0 billion in North America, approximately $31.5 billion of which are classifiably managed, and as of December 31, 2022 approximately 98% were rated investment grade; and $26.6 billion outside North America, approximately $17.8 billion of which are classifiably managed, and as of December 31, 2022 approximately 94% were rated investment grade. The classifiably managed portion of these loans is shown as “current” because the delinquency status is not applicable, since these loans are primarily evaluated for credit risk based on their internal risk classification. (11)Consumer loans are net of unearned income of $712 million. Unearned income on consumer loans primarily represents unamortized origination fees and costs, premiums and discounts. (12)Not included in the balances above is approximately $1 billion of accrued interest receivable at December 31, 2022, which is included in Other assets on the Consolidated Balance Sheet, except for credit card loans (which include accrued interest and fees). When a loan becomes non-accrual or, if not subject to a non-accrual policy, is charged off per the Company’s charge-off policy, any accrued interest receivable is also reversed against the interest income. During the year ended December 31, 2022, the Company reversed accrued interest of approximately $0.6 billion, primarily related to credit card loans. Interest Income Recognized for Non-Accrual Consumer Loans
(1)North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America. The Company sold and/or reclassified to held-for-sale $1.8 billion and $7 million of consumer loans during the three months ended March 31, 2023 and 2022, respectively. The increase was due to the reclassification of a portfolio to HFS in the first quarter of 2023. Loans held by a business for sale are not included in the above. The Company did not have significant purchases of consumer loans classified as held-for-investment for the three months ended March 31, 2023 or 2022. See Note 2 for additional information regarding Citigroup’s businesses held-for-sale. Consumer Credit Scores (FICO) The following tables provide details on the Fair Isaac Corporation (FICO) scores for Citi’s U.S. consumer loan portfolio based on end-of-period receivables by year of origination. FICO scores are updated monthly for substantially all of the portfolio or, otherwise, on a quarterly basis for the remaining portfolio. For Citi’s $78.8 billion and $80.5 billion in the consumer loan portfolio outside of the U.S. as of March 31, 2023 and December 31, 2022, respectively, various country-specific or regional credit risk metrics and acquisition and behavior scoring models are leveraged as one of the factors to evaluate the credit quality of customers (for additional information on loans outside of the U.S., see “Consumer Loans and Ratios Outside of North America” below). As a result, details of relevant credit quality indicators for those loans are not comparable to the below FICO score distribution for the U.S. portfolio.
(1) The FICO bands in the tables are consistent with general industry peer presentations. (2) FICO scores are updated on either a monthly or quarterly basis. For updates that are made only quarterly, certain current-period loans by year of origination are greater than those disclosed in the prior periods. Loans that did not have FICO scores as of the prior period have been updated with FICO scores as they become available. (3) These personal, small business and other loans without a FICO score available include $31.5 billion and $31.5 billion of Private bank loans as of March 31, 2023 and December 31, 2022, respectively, which are classifiably managed within Global Wealth and are primarily evaluated for credit risk based on their internal risk ratings. As of March 31, 2023 and December 31, 2022, approximately 95% and 98% of these loans, respectively, were rated investment grade. (4) FICO scores not available related to loans guaranteed by government-sponsored enterprises for which FICO scores are generally not utilized. (5) Not included in the tables above are $48 million and $75 million of revolving credit card loans outside of the U.S. that were converted to term loans as of March 31, 2023 and December 31, 2022, respectively. (6) Excludes $520 million and $545 million of balances related to Canada for March 31, 2023 and December 31, 2022, respectively. (7) Excludes $935 million and $940 million of balances related to Canada for March 31, 2023 and December 31, 2022, respectively. (8) Includes approximately $56 million and $67 million of personal revolving loans that were converted to term loans for March 31, 2023 and December 31, 2022, respectively. Consumer Gross Credit Losses The following table provides details on gross credit losses recognized during the three months ended March 31, 2023, by year of loan origination:
Loan-to-Value (LTV) Ratios—U.S. Consumer Mortgages 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 for Citi’s U.S. consumer mortgage portfolios by year of origination. 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.
(1)Residential first mortgages with no LTV information available includes government-guaranteed loans that do not require LTV information for credit risk assessment and fair value loans. Loan-to-Value (LTV) Ratios—Outside of U.S. Consumer Mortgages The following tables provide details on the LTV ratios for Citi’s consumer mortgage portfolio outside of the U.S. by year of origination:
(1)Mortgage portfolios outside of the U.S. are primarily in Global Wealth. As of March 31, 2023 and December 31, 2022, mortgage portfolios outside of the U.S. had an average LTV of approximately 52% and 51%, respectively. Consumer Loans and Ratios Outside of North America
(1) Mexico is included in offices outside of North America. (2) Classifiably managed loans are primarily evaluated for credit risk based on their internal risk classification. As of March 31, 2023 and December 31, 2022, approximately 89% and 94% of these loans, respectively, were rated investment grade. (3) Includes $20.3 billion and $19.8 billion as of March 31, 2023 and December 31, 2022, respectively, of residential mortgages related to the Global Wealth business. (4) Includes $26.3 billion and $26.6 billion as of March 31, 2023 and December 31, 2022, respectively, of loans related to the Global Wealth business. Consumer Loan Modifications to Borrowers Experiencing Financial Difficulty Citi seeks to modify consumer loans to borrowers experiencing financial difficulty to minimize losses, avoid foreclosure or repossession of collateral, and ultimately maximize payments received from the borrowers. Citi uses various metrics to identify consumer borrowers experiencing financial difficulty, with the primary indicator being delinquency at the time of modification. Citi’s significant consumer modification programs are described below. Credit Cards Citi seeks to assist credit card borrowers who are experiencing financial difficulty by offering long-term loan modification programs. These modifications generally involve reducing the interest rate on the credit card, placing the customer on a fixed payment plan not to exceed 60 months and canceling the customer’s available line of credit. Citi also grants modifications to credit card borrowers working with third-party renegotiation agencies that seek to restructure customers’ entire unsecured debt. In both circumstances, if the cardholder does not comply with the modified payment terms, the credit card loan continues to age and will ultimately be charged off in accordance with Citi’s standard charge-off policy. Residential Mortgages Citi seeks to assist residential mortgage borrowers who are experiencing financial difficulty primarily by offering interest rate reductions, principal and/or interest forbearance, term extensions or combinations thereof. In the U.S., before permanently modifying a mortgage loan, Citi enters into a trial modification with the borrower. Trial modifications generally represent a three-month period during which the borrower makes monthly payments under the anticipated modified payment terms. Upon successful completion of the trial period, Citi and the borrower enter into a permanent modification. Citi expects most loans entering trial modifications to ultimately be granted permanent modifications. At March 31, 2023, $25 million of mortgage loans were enrolled in trial programs. At March 31, 2023, mortgage loans of $1 million had gone through Chapter 7 bankruptcy during the three months ended March 31, 2023. Types of Consumer Loan Modifications and Their Financial Effect The following table provides details on permanent consumer loan modifications granted during the three months ended March 31, 2023 to borrowers experiencing financial difficulty by type of modification granted and the financial effect of those modifications:
(1) The above table reflects activity for loans outstanding as of the end of the reporting period. During the three months ended March 31, 2023, Citi granted forgiveness of $9 million in credit card loans and $1 million in personal, small business and other loans that had no outstanding balance at March 31, 2023. (2) Commitments to lend to borrowers experiencing financial difficulty that were granted modifications included in the table above were immaterial at March 31, 2023. (3) For major consumer portfolios, the ACLL is based on macroeconomic-sensitive models that rely on historical performance and macroeconomic scenarios to forecast expected credit losses. Modifications of consumer loans impact expected credit losses by affecting the likelihood of default. (4) Residential mortgages in offices outside North America were granted four months of payment deferrals during the six months ended December 31, 2022. (5) North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America. (6) Excludes residential first mortgages discharged in Chapter 7 bankruptcy in the three months ended March 31, 2023. Consumer Troubled Debt Restructurings
(1)Post-modification balances include past due amounts that are capitalized at the modification date. (2)Post-modification balances in North America include $1 million of residential first mortgages to borrowers who have gone through Chapter 7 bankruptcy in the three months ended March 31, 2022. These amounts include $1 million of residential first mortgages that were newly classified as TDRs in the three months ended March 31, 2022, based on previously received OCC guidance. (3)Represents the 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 the portion of contractual loan principal that is non-interest bearing and, depending on borrower performance, eligible for forgiveness. (5)Represents the portion of contractual loan principal that was forgiven at the time of permanent modification. (6)North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America. (7) The above tables reflect activity for restructured loans that were considered TDRs during the reporting period. Performance of Modified Consumer Loans The following table presents the delinquencies and gross credit losses of permanently modified consumer loans to borrowers experiencing financial difficulty, including loans that were modified during the three months ended March 31, 2023:
(1) North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America. (2) Typically, upon modification a loan re-ages to current. However, FFIEC guidelines for re-aging certain loans require that at least three consecutive minimum monthly payments, or the equivalent amount, be received. In these cases, the loan will remain delinquent until the payment criteria for re-aging have been satisfied. (3) Loans modified under Citi’s COVID-19 consumer relief programs continue to be reported in the same delinquency bucket they were in at the time of modification. Defaults of Modified Consumer Loans The following table presents default activity for permanently modified consumer loans to borrowers experiencing financial difficulty by type of modification granted, including loans that were modified and subsequently defaulted during the three months ended March 31, 2023. Default is defined as 60 days past due:
(1) The above table reflects activity for loans outstanding as of the end of the reporting period. (2) Modified residential first mortgages that default are typically liquidated through foreclosure or a similar type of liquidation. (3) North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America. (4) Modified credit card loans that default continue to be charged off in accordance with Citi’s consumer charge-off policy. 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:
(1)North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America. Purchased Credit-Deteriorated Assets
(1) Includes loans sold to agencies that were bought back at par due to repurchase agreements.
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