Citibank 2015 Annual Report Download - page 226

208
Corporate Troubled Debt Restructurings
The following table presents corporate TDR activity at and for the year ended December 31, 2015:
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 $120 $67 $— $53
Mortgage and real estate 47 3 — 44
Total $167 $70 $— $97
(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 loans. 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, 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
Mortgage and real estate 8 5 1 2
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 loans. 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 as well as those TDRs that defaulted 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, 2015
TDR loans
in payment default
during the year ended
December 31, 2015
TDR balances at
December 31, 2014
TDR loans
in payment default
during the year ended
December 31, 2014
Commercial and industrial $135 $— $117 $—
Loans to financial institutions 5 1 — —
Mortgage and real estate 138 — 107 —
Other 308 — 355 —
Total (1) $586 $ 1 $579 $—
(1) The above tables reflect activity for loans outstanding as of the end of the reporting period that were considered TDRs.