Citibank 2014 Annual Report Download - page 227

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Corporate Troubled Debt Restructurings
The following table presents corporate TDR activity at and for the year ended December 31, 2014.
In millions of dollars
Carrying
Value
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 $ 48 $30 $17 $ 1
Financial institutions — — — —
Mortgage and real estate 8 5 1 2
Other — — — —
Total $ 56 $35 $18 $ 3
(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 commercial
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 loan. 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.
The following table presents corporate TDR activity at and for the year ended December 31, 2013.
In millions of dollars
Carrying
Value
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 $130 $ 55 $58 $17
Financial institutions — — — —
Mortgage and real estate 34 19 14 1
Other 5 — — 5
Total $169 $ 74 $72 $23
(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 commercial
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 loan. 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.
The following table presents total corporate loans modified in a TDR at December 31, 2014 and 2013, as well as those TDRs that defaulted during the three
months ended December 31, 2014 and 2013 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 markets loans, where default is defined as 90 days past due.
In millions of dollars
TDR balances at
December 31, 2014
TDR loans
in payment default
during the year ended
December 31, 2014
TDR balances at
December 31, 2013
TDR loans
in payment default
during the year ended
December 31, 2013
Commercial and industrial $117 $— $197 $27
Loans to financial institutions — — 14 —
Mortgage and real estate 107 — 161 17
Other 355 — 422 —
Total $579 $— $794 $44