Company: CFG-PE
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000759944-25-000070
Chunk: 72

Company: CITIZENS FINANCIAL GROUP INC/RI
Filing Date: 2025-05-01
Form: 10-Q
Item: Part II, Item 8
Chunk 72
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 may result in changes in another (e.g., changes in interest rates that drive changes in prepayment rates could result in changes in discount rates) and may amplify or counteract the sensitivities. The primary risk inherent in the Company’s MSRs is an increase in prepayments of the underlying mortgage loans serviced, which is largely dependent upon movements in market interest rates.(dollars in millions)March 31, 2025December 31, 2024Fair value$1,397$1,491Weighted average life (years)8.58.7Weighted average constant prepayment rate7.1%6.7%Decline in fair value from 10% adverse change$35$35Decline in fair value from 20% adverse change$67$67Weighted average option adjusted spread628 bps632 bpsDecline in fair value from 10% adverse change$40$42Decline in fair value from 20% adverse change$79$84The Company has mortgage banking derivatives that include commitments to originate mortgages held for sale, certain loan sale agreements, and other financial instruments that meet the definition of a derivative. Refer to Note 8 for additional information.Other Serviced LoansThe Company engages in other servicing relationships from time to time. The following table presents the unpaid principal balance of other serviced loans:(dollars in millions)March 31, 2025December 31, 2024Education$397 $420 Commercial and industrial(1)90 92 

(1) Represents the government guaranteed portion of SBA loans sold to outside investors.

NOTE 6 - VARIABLE INTEREST ENTITIES The Company, in the normal course of business, engages in a variety of activities with entities that are considered VIEs, as defined by GAAP, with its variable interest arising from contractual, ownership or other monetary interests in the entity. A VIE typically does not have sufficient equity at risk to finance its activities without additional subordinated financial support from other parties.For more details regarding the Company’s involvement with VIEs see Note 11 in the Company’s 2024 Form 10-K.Consolidated VIEsThe Company has consolidated VIEs related to secured borrowings collateralized by auto loans. The following table summarizes the carrying amount of assets and liabilities for the Company’s consolidated VIEs:(dollars in millions)March 31, 2025December 31, 2024Assets:Interest-bearing deposits in banks$197 $209 Net loans and