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LOANS AND LEASES | 6 Months Ended
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Jun. 30, 2019
Receivables [Abstract] |
LOANS AND LEASES | NOTE 3 - LOANS AND LEASES The Company’s loans and leases are disclosed in portfolio segments and classes as reflected below.
(in millions) | June 30, 2019 |  | December 31, 2018
Commercial(1) |  | $41,156 |  |  |  | $40,857 |
Commercial real estate | 13,123 |  |  | 13,023 |
Leases | 2,684 |  |  | 2,903 |
Total commercial loans and leases | 56,963 |  |  | 56,783 |
Residential mortgages | 19,192 |  |  | 18,978 |
Home equity loans | 938 |  |  | 1,073 |
Home equity lines of credit | 12,266 |  |  | 12,710 |
Home equity loans serviced by others | 348 |  |  | 399 |
Home equity lines of credit serviced by others | 88 |  |  | 104 |
Automobile | 12,000 |  |  | 12,106 |
Education | 9,305 |  |  | 8,900 |
Credit cards | 2,046 |  |  | 1,991 |
Other retail | 3,692 |  |  | 3,616 |
Total retail loans(2) | 59,875 |  |  | 59,877 |
Total loans and leases(3) |  | $116,838 |  |  |  | $116,660 |
(1) SBA loans we service for others of $18 million are not included above. These loans represent the government guaranteed portion of SBA loans sold to outside investors as of June 30, 2019. There were no SBA loans we serviced for others at December 31, 2018. (2) Mortgage loans we service for others of $72.5 billion and $69.6 billion at June 30, 2019 and December 31, 2018, respectively, are not included above. (3) LHFS totaling $2.2 billion and $1.3 billion at June 30, 2019 and December 31, 2018, respectively, are not included above. The following table shows the composition of LHFS.
| June 30, 2019 |  | December 31, 2018
(in millions) | Residential Mortgages(1) | Commercial(2) | Total |  | Residential Mortgages(1) | Commercial(2) | Total
Loans held for sale at fair value |  | $1,615 |  |  | $135 |  |  | $1,750 |  |  |  | $967 |  |  | $252 |  |  | $1,219 |
Other loans held for sale | — |  | 455 |  | 455 |  |  | — |  | 101 |  | 101 |
(1) Originated for sale. (2) LHFS at fair value consist of loans managed by the Company’s commercial secondary loan desk. Other LHFS consist of commercial loans associated with the Company’s syndication business. Loans pledged as collateral for FHLB borrowed funds, primarily residential mortgages and home equity loans, totaled $24.4 billion and $25.6 billion at June 30, 2019 and December 31, 2018, respectively. Loans pledged as collateral to support the contingent ability to borrow at the FRB discount window, if necessary, were primarily comprised of auto, commercial and commercial real estate loans, and totaled $18.6 billion and $16.8 billion at June 30, 2019 and December 31, 2018, respectively. During the three months ended June 30, 2019 and 2018, the Company purchased $99 million and $223 million of education loans. During the six months ended June 30, 2019 and 2018, the Company purchased $300 million and $223 million of education loans, respectively. The Company sold $492 million of residential mortgages during the three months ended June 30, 2019. During the six months ended June 30, 2019, the Company sold $182 million of commercial loans and $628 million of retail loans, including $22 million of TDR sales. During the three and six months ended June 30, 2018 the Company had $353 million and $553 million of commercial loan sales, respectively. Citizens is engaged in the leasing of equipment for commercial use, primarily focused on Fortune 1000 companies for large capital equipment acquisitions including aircraft and railcars, among other equipment. The Company determines if an arrangement is a lease and the related lease classification at inception. Lease terms predominantly range from three years to seven years and may include options to terminate the lease early or purchase the leased property prior to the end of the lease term. Certain lease agreements include rental payments based on an index or are adjusted periodically for inflation. The Company does not have lease agreements which contain lease and nonlease components. A lessee is evaluated from a credit perspective using the same underwriting standards and procedures as for a loan borrower. A lessee is expected to make rental payments based on its cash flows and the viability of its operations. Leases are usually not evaluated as collateral-based transactions, and therefore the lessee’s overall financial strength is the most important credit evaluation factor. The components of the net investment in direct finance leases, before ALLL, are presented below:
(in millions) | June 30, 2019
Total future minimum lease rentals |  | $1,823 |
Estimated residual value of leased equipment (non-guaranteed) | 1,071 |
Initial direct costs | 12 |
Unearned income | (244 | )
Total leases |  | $2,662 |
Interest income on direct financing leases for the three months and six months ended June 30, 2019 was $20 million and $40 million, respectively, and is reported within interest and fees on loans and leases in the Consolidated Statements of Operations. A maturity analysis of direct financing lease receivables at June 30, 2019 is presented below:
(in millions) |
2019 |  | $290 |
2020 | 458 |
2021 | 345 |
2022 | 266 |
2023 | 191 |
Thereafter | 273 |
Total undiscounted future minimum lease rentals |  | $1,823 |

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- Definition The entire disclosure for claims held for amounts due a company, excluding disclosure for allowance for credit losses. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Also excludes disclosure for financing receivables. + References No definition available. + Details
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- References No definition available. + Details
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