Company: CFG-PE
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0000759944-25-000108
Chunk: 147

Company: CITIZENS FINANCIAL GROUP INC/RI
Filing Date: 2025-08-04
Form: 10-Q
Item: Part II, Item 8
Chunk 147
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:Interest-bearing deposits in banks$173 $209 Net loans and leases2,815 3,843 Other assets20 21 Total assets$3,008 $4,073 Liabilities:Long-term borrowed funds$2,411 $3,375 Other liabilities6 8 Total liabilities$2,417 $3,383 Secured BorrowingsThe Company utilizes a portion of its auto loan portfolio to support certain secured borrowing arrangements, which provide a source of funding for the Company and involves the transfer of auto loans to bankruptcy remote SPEs. These SPEs then issue asset-backed notes to third parties collateralized by the transferred loans.The assets of a particular VIE are the primary source of funds to settle its obligations. Creditors of these VIEs do not have recourse to the general credit of the Company. The performance of the loans transferred is the most significant driver impacting the economic performance of the VIEs.Unconsolidated VIEsThe Company is involved with various VIEs that are not consolidated including lending to SPEs, investments in asset-backed securities, and investments in entities that sponsor affordable housing, renewable energy, and economic development projects. The Company’s maximum exposure to loss resulting from its involvement with these entities is limited to the balance sheet carrying amount of its investments, unfunded commitments, and the outstanding principal balance of loans to SPEs.A summary of these investments is presented below:(dollars in millions)June 30, 2025December 31, 2024Lending to SPEs included in Loans and leases$4,521 $4,215 LIHTC investments included in Other assets2,630 2,631 LIHTC unfunded commitments included in Other liabilities1,054 1,109 Asset-backed investments included in HTM securities 374 412 Renewable energy investments included in Other assets234 269 NMTC investments included in Other assets2 2 Lending to Special Purpose EntitiesThe Company provides lending facilities to third-party sponsored SPEs within its Capital Markets business. The SPEs are primarily funded through these lending facilities or a syndication in which the Company participates. The principal risk of these lending facilities is the credit risk related to the underlying assets in the SPE, in which the Company generally holds a priority position. The Company’s maximum exposure to loss is equal to the carrying amount of the loans and unfunded commitments to the SPEs. The Company’s outstanding loans to these SPEs are included in