Citibank 2011 Annual Report Download - page 219

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Impaired Consumer Loans
Impaired loans are those for which Citigroup believes it is probable that it
will not collect all amounts due according to the original contractual terms
of the loan. Impaired Consumer loans include non-accrual commercial
market loans as well as smaller-balance homogeneous loans whose terms
have been modified due to the borrower’s financial difficulties and Citigroup
has granted a concession to the borrower. These modifications may include
interest rate reductions and/or principal forgiveness. Impaired Consumer
loans exclude smaller-balance homogeneous loans that have not been
modified and are carried on a non-accrual basis. In addition, Impaired
Consumer loans exclude substantially all loans modified pursuant to Citi’s
short-term modification programs (i.e., for periods of 12 months or less) that
were modified prior to January 1, 2011. At December 31, 2011, loans included
in these short-term programs amounted to approximately $3 billion.
Effective in the third quarter of 2011, as a result of adopting ASU 2011-02,
certain loans modified under short-term programs since January 1, 2011 that
were previously measured for impairment under ASC 450 are now measured
for impairment under ASC 310-10-35. At the end of the first interim period
of adoption (September 30, 2011), the recorded investment in receivables
previously measured under ASC 450 was $1,170 million and the allowance
for credit losses associated with those loans was $467 million. See Note 1 to
the Consolidated Financial Statements for a discussion of this change.
The following tables present information about total impaired Consumer loans at and for the periods ending December 31, 2011 and December 31, 2010, respectively:
Impaired Consumer Loans
At and for the period ended December 31, 2011
In millions of dollars
Recorded
investment (1)(2)
Unpaid
principal balance
Related specific
allowance (3)
Average
carrying value (4)
Interest income
recognized (5)(6)
-ORTGAGEæANDæREALæESTATE
2ESIDENTIALæFIRSTæMORTGAGES $19,616 $20,803 $ 3,404 $18,642 $ 888
(OMEæEQUITYæLOANS 1,771 1,823 1,252 1,680 72
#REDITæCARDS 6,695 6,743 3,122 6,542 387
)NSTALLMENTæANDæOTHER
)NDIVIDUALæINSTALLMENTæANDæOTHER 2,264 2,267 1,032 2,644 343
#OMMERCIALæMARKETæLOANS 517 782 75 572 21
Total (7) $30,863 $32,418 $ 8,885 $30,080 $ 1,711
ææ 2ECORDEDæINVESTMENTæINæAæLOANæINCLUDESæNETæDEFERREDæLOANæFEESæANDæCOSTSæUNAMORTIZEDæPREMIUMæORæDISCOUNTæANDæDIRECTæWRITEDOWNSæANDæINCLUDESæACCRUEDæINTERESTæONLYæONæCREDITæCARDæLOANS
ææ æMILLIONæOFæRESIDENTIALæFIRSTæMORTGAGESææMILLIONæOFæHOMEæEQUITYæLOANSæANDææMILLIONæOFæCOMMERCIALæMARKETæLOANSæDOæNOTæHAVEæAæSPECIFICæALLOWANCE
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