Company: CFG-PE
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000759944-25-000070
Chunk: 54

Company: CITIZENS FINANCIAL GROUP INC/RI
Filing Date: 2025-05-01
Form: 10-Q
Item: Part II, Item 8
Chunk 54
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31, 2025 and December 31, 2024, respectively, and is included in other assets in the Consolidated Balance Sheets.Loans pledged as collateral for FHLB borrowing capacity, primarily residential mortgages and home equity products, totaled $38.6 billion and $37.5 billion at March 31, 2025 and December 31, 2024, respectively. Loans pledged as collateral to support the contingent ability to borrow at the FRB discount window, if necessary, were primarily comprised of education, commercial and industrial, and commercial real estate loans, and totaled $22.3 billion and $22.9 billion at March 31, 2025 and December 31, 2024, respectively.Interest income on direct financing and sales-type leases for the three months ended March 31, 2025 and 2024 was $11 million and is reported within interest and fees on loans and leases in the Consolidated Statements of Operations.The following table presents the composition of LHFS:March 31, 2025December 31, 2024(dollars in millions)Residential Mortgages(1)Other retail(2)Commercial(3)TotalResidential Mortgages(1)Commercial(3)TotalLoans held for sale at fair value$922 $— $215 $1,137 $633 $192 $825 Other loans held for sale— 1,644 39 1,683 — 33 33 Total loans held for sale$922 $1,644 $254 $2,820 $633 $225 $858 (1) Residential mortgage LHFS at fair value are originated for sale.(2) Other retail LHFS consist of education loans.(3) Commercial LHFS at fair value consist of loans managed by the Company’s commercial secondary loan desk.

NOTE 4 - CREDIT QUALITY AND THE ALLOWANCE FOR CREDIT LOSSES Allowance for Credit Losses    The Company’s estimate of expected credit losses in its loan and lease portfolios is recorded in the ACL and considers extensive historical loss experience, including the impact of loss mitigation and restructuring programs that the Company offers to borrowers experiencing financial difficulty, as well as projected loss severity as a result of loan default. For a detailed discussion of the ACL reserve methodology and estimation techniques as of December 31, 2024, see Note 6 in the Company’s 2024 Form 10-K. There were no significant changes to