Citibank 2014 Annual Report Download - page 223

206
Corporate Loans
Corporate loans represent loans and leases managed by the Institutional
Clients Group in Citicorp or, to a much lesser extent, in Citi Holdings.
The following table presents information by corporate loan type as of
December 31, 2014 and December 31, 2013:
In millions of dollars
December 31,
2014
December 31,
2013
Corporate
In U.S. offices
Commercial and industrial $ 35,055 $ 32,704
Financial institutions 36,272 25,102
Mortgage and real estate (1) 32,537 29,425
Installment, revolving credit and other 29,207 34,434
Lease financing 1,758 1,647
$134,829 $123,312
In offices outside the U.S.
Commercial and industrial $ 79,239 $ 82,663
Financial institutions 33,269 38,372
Mortgage and real estate (1) 6,031 6,274
Installment, revolving credit and other 19,259 18,714
Lease financing 356 527
Governments and official institutions 2,236 2,341
$140,390 $148,891
Total Corporate loans $275,219 $272,203
Net unearned income (554) (562)
Corporate loans, net of unearned income $274,665 $271,641
(1) Loans secured primarily by real estate.
The Company sold and/or reclassified (to held-for-sale) $4.8 billion and
$5.8 billion of corporate loans during the years ended December 31, 2014
and 2013, respectively. The Company did not have significant purchases
of corporate loans classified as held-for-investment for the years ended
December 31, 2014 or 2013.
Corporate loans are identified as impaired and placed on a cash (non-
accrual) basis when it is determined, 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 or when interest or principal
is 90 days past due, except when the loan is well collateralized and in the
process of collection. Any interest accrued on impaired corporate loans
and leases is reversed at 90 days and charged against current earnings,
and interest is thereafter included in earnings only to the extent actually
received in cash. When there is doubt regarding the ultimate collectability
of principal, all cash receipts are thereafter applied to reduce the recorded
investment in the loan. While corporate loans are generally managed based
on their internally assigned risk rating (see further discussion below), the
following tables present delinquency information by corporate loan type as
of December 31, 2014 and December 31, 2013.
Corporate Loan Delinquency and Non-Accrual Details at December 31, 2014
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 $ 50 $— $ 50 $ 575 $109,764 $110,389
Financial institutions 2 — 2 250 67,580 67,832
Mortgage and real estate 86 — 86 252 38,135 38,473
Leases — — — 51 2,062 2,113
Other 49 1 50 55 49,844 49,949
Loans at fair value 5,858
Purchased Distressed Loans 51
Total $187 $ 1 $188 $1,183 $267,385 $274,665
(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) Citi generally does not manage corporate loans on a delinquency basis. 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) Corporate loans are past due when principal or interest is contractually due but unpaid. 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.