Citibank 2015 Annual Report Download - page 102

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Non-Accrual Loans and Assets and Renegotiated Loans
There is a certain amount of overlap among non-accrual loans and
assets and renegotiated loans. The following summary provides a general
description of each category:
Non-Accrual Loans and Assets:
• Corporate and consumer (commercial market) non-accrual status
is based on the determination that payment of interest or principal
is doubtful.
• A corporate loan may be classified as non-accrual and still be performing
under the terms of the loan structure. Payments received on corporate
non-accrual loans are generally applied to loan principal and not
reflected as interest income. Approximately 45% and 40% of Citi’s
corporate non-accrual loans were performing at December 31, 2015 and
September 30, 2015, respectively.
• Consumer non-accrual status is generally based on aging, i.e., the
borrower has fallen behind on payments.
• Mortgage loans in regulated bank entities discharged through Chapter 7
bankruptcy, other than FHA insured loans, are classified as non-accrual.
Non-bank mortgage loans discharged through Chapter 7 bankruptcy are
classified as non-accrual at 90 days or more past due. In addition, home
equity loans in regulated bank entities are classified as non-accrual if the
related residential first mortgage loan is 90 days or more past due.
• North America Citi-branded cards and Citi retail services are not included
because, under industry standards, credit card loans accrue interest
until such loans are charged off, which typically occurs at 180 days
contractual delinquency.
Renegotiated Loans:
• Includes both corporate and consumer loans whose terms have been
modified in a troubled debt restructuring (TDR).
• Includes both accrual and non-accrual TDRs.