Company: CFG-PE
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000759944-25-000070
Chunk: 74

Company: CITIZENS FINANCIAL GROUP INC/RI
Filing Date: 2025-05-01
Form: 10-Q
Item: Part II, Item 8
Chunk 74
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 as the primary servicer for the sold loans and receives a servicing fee. A third-party servicer is responsible for all loans that become significantly delinquent.Low Income Housing Tax Credit Partnerships The purpose of the Company’s LIHTC investments is to assist in achieving the goals of the Community Reinvestment Act and to earn an adequate return of capital.Renewable Energy EntitiesThe Company’s investments in certain renewable energy entities provide benefits from government incentives and other tax attributes (e.g., tax depreciation).Contingent commitments related to the Company’s renewable energy investments were $44 million at March 31, 2025, and are expected to be paid in varying amounts through 2027. These payments are contingent upon the level of electricity production attained by the renewable energy entity relative to its targeted threshold, changes in the production tax credit rates set by the Internal Revenue Service, and the achievement of commercial operation for a certain renewable energy project under its power purchase agreement.New Markets Tax Credit ProgramThe Company participates in the NMTC program which provides a tax incentive for private sector investment into economic development projects and businesses located in low-income communities.

Citizens Financial Group, Inc. | 54

The following table summarizes the impact to the Consolidated Statements of Operations relative to the Company’s tax credit programs for which it has elected to apply the proportional amortization method of accounting:Three Months Ended March 31,(dollars in millions)20252024Tax credits recognized$106 $97 Other tax benefits recognized23 23 Amortization(102)(99)Net benefit (expense) included in income tax expense27 21 Other income2 1 Allocated income (loss) on investments(3)(3)Net benefit (expense) included in noninterest income(1)(2)Net benefit (expense) included in the Consolidated Statements of Operations(1)$26 $19 (1) Includes the impact of tax credit investments when the election to apply the proportional amortization method was in effect during the periods presented. For 2025 and 2024, this includes LIHTC, renewable energy and NMTC investments.The Company did not recognize impairment losses resulting from the forfeiture or ineligibility of income tax credits or other circumstances during the three months ended March 31, 2025 and 2024.

NOTE 7 - BORROWED FUNDS Short-term borrowed fundsBorrowings with original maturities of one year or less are classified as short-term and were comprised of the following.(dollars in