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Financing Receivables | 3 Months Ended
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Mar. 31, 2022
Receivables [Abstract] |
Financing Receivables | Financing Receivables Financing receivables are comprised of commercial loans, consumer loans, and deposit receivables. Allowance for Credit Losses The following tables present a rollforward of the allowance for credit losses:
| Commercial Loans |  | Consumer Loans |  | Total
(in millions)
Balance, January 1, 2022 | $ | 47 |  |  | $ | 3 |  |  | $ | 50 |
Provisions | (2) |  |  | — |  |  | (2) |
Balance, March 31, 2022 | $ | 45 |  |  | $ | 3 |  |  | $ | 48 |
| Commercial Loans |  | Consumer Loans |  | Total
(in millions)
Balance, January 1, 2021 | $ | 66 |  |  | $ | 2 |  |  | $ | 68 |
Provisions | — |  |  | 1 |  |  | 1 |
Charge-offs | (1) |  |  | — |  |  | (1) |
Balance, March 31, 2021 | $ | 65 |  |  | $ | 3 |  |  | $ | 68 |
Accrued interest on commercial loans was $12 million and $13 million as of March 31, 2022 and December 31, 2021, respectively, and is recorded in Receivables and excluded from the amortized cost basis of commercial loans. Purchases and Sales During the three months ended March 31, 2022 and 2021, the Company purchased nil and $13 million, respectively, of syndicated loans, and sold nil and $4 million, respectively, of syndicated loans. During the three months ended March 31, 2022 and 2021, the Company purchased $1 million and $2 million, respectively, of residential mortgage loans. The allowance for credit losses for residential mortgage loans was not material as of both March 31, 2022 and 2021. The Company has not acquired any loans with deteriorated credit quality as of the acquisition date. Credit Quality Information Nonperforming loans were $8 million and $9 million as of March 31, 2022 and December 31, 2021, respectively. All other loans were considered to be performing. Commercial Loans Commercial Mortgage Loans The Company reviews the credit worthiness of the borrower and the performance of the underlying properties in order to determine the risk of loss on commercial mortgage loans. Loan-to-value ratio is the primary credit quality indicator included in this review. Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates when credit risk changes. Commercial mortgage loans which management has assigned its highest risk rating were less than 1% of total commercial mortgage loans as of both March 31, 2022 and December 31, 2021. Loans with the highest risk rating represent distressed loans which the Company has identified as impaired or expects to become delinquent or enter into foreclosure within the next six months. Total commercial mortgage loans past due were nil as of March 31, 2022 and December 31, 2021, respectively. The tables below present the amortized cost basis of commercial mortgage loans by the year of origination and loan-to-value ratio :
|  | March 31, 2022
Loan-to-Value Ratio |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | Prior |  | Total
| (in millions)
> 100% |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 11 |  |  | $ | 10 |  |  | $ | 15 |  |  | $ | 36 |
80% - 100% |  | — |  |  | 9 |  |  | — |  |  | 26 |  |  | 2 |  |  | 39 |  |  | 76 |
60% - 80% |  | 21 |  |  | 99 |  |  | 66 |  |  | 48 |  |  | 22 |  |  | 164 |  |  | 420 |
40% - 60% |  | 17 |  |  | 81 |  |  | 30 |  |  | 87 |  |  | 63 |  |  | 478 |  |  | 756 |
< 40% |  | 4 |  |  | 14 |  |  | 26 |  |  | 2 |  |  | 71 |  |  | 529 |  |  | 646 |
Total |  | $ | 42 |  |  | $ | 203 |  |  | $ | 122 |  |  | $ | 174 |  |  | $ | 168 |  |  | $ | 1,225 |  |  | $ | 1,934 |
|  | December 31, 2021
Loan-to-Value Ratio |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | Prior |  | Total
| (in millions)
> 100% |  | $ | — |  |  | $ | — |  |  | $ | 20 |  |  | $ | 10 |  |  | $ | — |  |  | $ | 29 |  |  | $ | 59 |
80% - 100% |  | 9 |  |  | 2 |  |  | 9 |  |  | 2 |  |  | — |  |  | 29 |  |  | 51 |
60% - 80% |  | 142 |  |  | 80 |  |  | 60 |  |  | 23 |  |  | 61 |  |  | 138 |  |  | 504 |
40% - 60% |  | 42 |  |  | 33 |  |  | 86 |  |  | 74 |  |  | 57 |  |  | 401 |  |  | 693 |
< 40% |  | 11 |  |  | 8 |  |  | 48 |  |  | 6 |  |  | 58 |  |  | 478 |  |  | 609 |
Total |  | $ | 204 |  |  | $ | 123 |  |  | $ | 223 |  |  | $ | 115 |  |  | $ | 176 |  |  | $ | 1,075 |  |  | $ | 1,916 |
Loan-to-value ratio is based on income and expense data provided by borrowers at least annually and long-term capitalization rate assumptions based on property type. In addition, the Company reviews the concentrations of credit risk by region and property type. Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows:
| Loans |  | Percentage
March 31, 2022 |  | December 31, 2021 | March 31, 2022 |  | December 31, 2021
(in millions) |  |  |  |
East North Central | $ | 205 |  |  | $ | 194 |  |  | 11 | % |  | 10 | %
East South Central | 56 |  |  | 57 |  |  | 3 |  |  | 3 |
Middle Atlantic | 121 |  |  | 122 |  |  | 6 |  |  | 6 |
Mountain | 118 |  |  | 119 |  |  | 6 |  |  | 6 |
New England | 27 |  |  | 28 |  |  | 1 |  |  | 2 |
Pacific | 637 |  |  | 627 |  |  | 33 |  |  | 33 |
South Atlantic | 503 |  |  | 497 |  |  | 26 |  |  | 26 |
West North Central | 139 |  |  | 141 |  |  | 7 |  |  | 7 |
West South Central | 128 |  |  | 131 |  |  | 7 |  |  | 7 |
| 1,934 |  |  | 1,916 |  |  | 100 | % |  | 100 | %
Less: allowance for credit losses | 12 |  |  | 12 |  |  |  |  |
Total | $ | 1,922 |  |  | $ | 1,904 |  |  |  |  |
Concentrations of credit risk of commercial mortgage loans by property type were as follows:
| Loans |  | Percentage
March 31, 2022 |  | December 31, 2021 | March 31, 2022 |  | December 31, 2021
(in millions) |  |  |  |
Apartments | $ | 512 |  |  | $ | 496 |  |  | 26 | % |  | 26 | %
Hotel | 15 |  |  | 14 |  |  | 1 |  |  | 1 |
Industrial | 321 |  |  | 319 |  |  | 17 |  |  | 17 |
Mixed use | 67 |  |  | 68 |  |  | 3 |  |  | 3 |
Office | 266 |  |  | 271 |  |  | 14 |  |  | 14 |
Retail | 617 |  |  | 617 |  |  | 32 |  |  | 32 |
Other | 136 |  |  | 131 |  |  | 7 |  |  | 7 |
| 1,934 |  |  | 1,916 |  |  | 100 | % |  | 100 | %
Less: allowance for credit losses | 12 |  |  | 12 |  |  |  |  |
Total | $ | 1,922 |  |  | $ | 1,904 |  |  |  |  |
Syndicated Loans The recorded investment in syndicated loans as of March 31, 2022 and December 31, 2021 was $146 million and $149 million, respectively. The Company’s syndicated loan portfolio is diversified across industries and issuers. Total syndicated loans past due were nil as of March 31, 2022 and December 31, 2021. The Company assigns an internal risk rating to each syndicated loan in its portfolio ranging from 1 through 5, with 5 reflecting the lowest quality. The tables below present the amortized cost basis of syndicated loans by origination year and internal risk rating:
|  | March 31, 2022
Internal Risk Rating |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | Prior |  | Total
| (in millions)
Risk 5 |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |
Risk 4 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3 |  |  | 3 |
Risk 3 |  | — |  |  | 4 |  |  | — |  |  | 9 |  |  | 5 |  |  | 12 |  |  | 30 |
Risk 2 |  | — |  |  | 15 |  |  | 6 |  |  | 7 |  |  | 7 |  |  | 32 |  |  | 67 |
Risk 1 |  | — |  |  | 5 |  |  | 1 |  |  | 3 |  |  | 12 |  |  | 24 |  |  | 45 |
Total |  | $ | 1 |  |  | $ | 24 |  |  | $ | 7 |  |  | $ | 19 |  |  | $ | 24 |  |  | $ | 71 |  |  | $ | 146 |
|  | December 31, 2021
Internal Risk Rating |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | Prior |  | Total
| (in millions)
Risk 5 |  | $ | — |  |  | $ | — |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |
Risk 4 |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 2 |  |  | 3 |
Risk 3 |  | — |  |  | — |  |  | 4 |  |  | 5 |  |  | 5 |  |  | 6 |  |  | 20 |
Risk 2 |  | 15 |  |  | 4 |  |  | 12 |  |  | 10 |  |  | 18 |  |  | 12 |  |  | 71 |
Risk 1 |  | 8 |  |  | 3 |  |  | 3 |  |  | 11 |  |  | 16 |  |  | 13 |  |  | 54 |
Total |  | $ | 23 |  |  | $ | 7 |  |  | $ | 20 |  |  | $ | 26 |  |  | $ | 40 |  |  | $ | 33 |  |  | $ | 149 |
Financial Advisor Loans The Company offers loans to financial advisors for transitional cost assistance. Repayment of the loan is highly dependent on the retention of the financial advisor. In the event a financial advisor is no longer affiliated with the Company, any unpaid balances become immediately due. Accordingly, the primary risk factor for advisor loans is termination status. The allowance for credit losses related to loans to advisors that have terminated their relationship with the Company was $5 million as of both March 31, 2022 and December 31, 2021. The tables below present the amortized cost basis of advisor loans by origination year and termination status:
|  | March 31, 2022
Termination Status |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | Prior |  | Total
| (in millions)
Active |  | $ | 40 |  |  | $ | 131 |  |  | $ | 142 |  |  | $ | 114 |  |  | $ | 86 |  |  | $ | 212 |  |  | $ | 725 |
Terminated |  | — |  |  | — |  |  | 1 |  |  | 1 |  |  | — |  |  | 6 |  |  | 8 |
Total |  | $ | 40 |  |  | $ | 131 |  |  | $ | 143 |  |  | $ | 115 |  |  | $ | 86 |  |  | $ | 218 |  |  | $ | 733 |
|  | December 31, 2021
Termination Status |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | Prior |  | Total
| (in millions)
Active |  | $ | 136 |  |  | $ | 147 |  |  | $ | 119 |  |  | $ | 89 |  |  | $ | 116 |  |  | $ | 113 |  |  | $ | 720 |
Terminated |  | 1 |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 6 |  |  | 8 |
Total |  | $ | 137 |  |  | $ | 148 |  |  | $ | 119 |  |  | $ | 89 |  |  | $ | 116 |  |  | $ | 119 |  |  | $ | 728 |
Consumer Loans Credit Card Receivables The credit cards are co-branded with Ameriprise Financial, Inc. and issued to the Company’s customers by a third party. FICO scores and delinquency rates are the primary credit quality indicators for the credit card portfolio. Delinquency rates are measured based on the number of days past due. Credit card receivables over 30 days past due were 1% of total credit card receivables as of both March 31, 2022 and December 31, 2021. The table below presents the amortized cost basis of credit card receivables by FICO score:
| March 31, 2022 |  | December 31, 2021
(in millions)
> 800 | $ | 28 |  |  | $ | 30 |
750 - 799 | 23 |  |  | 24 |
700 - 749 | 23 |  |  | 25 |
650 - 699 | 14 |  |  | 14 |
< 650 | 5 |  |  | 5 |
Total | $ | 93 |  |  | $ | 98 |
Policy Loans Policy loans do not exceed the cash surrender value at origination. As there is minimal risk of loss related to policy loans, there is no allowance for credit losses. Margin Loans The margin loans balance was $1.2 billion as of both March 31, 2022 and December 31, 2021. The Company monitors collateral supporting margin loans and requests additional collateral when necessary in order to mitigate the risk of loss. As of both March 31, 2022 and December 31, 2021, the allowance for credit losses on margin loans was not material. Pledged Asset Lines of Credit The pledged asset lines of credit balance was $520 million and $467 million as of March 31, 2022 and December 31, 2021, respectively. The Company monitors collateral supporting pledged asset lines of credit and requests additional collateral when necessary in order to mitigate the risk of loss. As of March 31, 2022 and December 31, 2021, there w as no allowance for credit losses on pledged asset lines of credit. Deposit Receivables Deposit receivables were $7.8 billion and $7.9 billion as of March 31, 2022 and December 31, 2021, respectively. Deposit receivables are fully collateralized by the fair value of the assets held in trusts. Based on management’s evaluation of the nature of the underlying assets and the potential for changes in the collateral value, there was no allowance for credit losses for the deposit receivables as of March 31, 2022 and December 31, 2021. Troubled Debt Restructurings There were no loans accounted for as a troubled debt restructuring by the Company during the three months ended March 31, 2022 and 2021. There are no commitments to lend additional funds to borrowers whose loans have been restructured.

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- Definition The entire disclosure for financing receivable. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2196816 + Details
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