Company: CFG-PE
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0000759944-25-000108
Chunk: 237

Company: CITIZENS FINANCIAL GROUP INC/RI
Filing Date: 2025-08-04
Form: 10-Q
Item: Part I, Item 2
Chunk 237
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 and December 31, 2024, respectively.Interest income on direct financing and sales-type leases for the three months ended June 30, 2025 and 2024 was $11 million and $9 million, respectively, and is reported within interest and fees on loans and leases in the Consolidated Statements of Operations. For the six months ended June 30, 2025 and 2024, this interest income was $22 million and $20 million, respectively.The following table presents the composition of LHFS:June 30, 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$766 $— $169 $935 $633 $192 $825 Other loans held for sale— 979 179 1,158 — 33 33 Total loans held for sale$766 $979 $348 $2,093 $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. Other commercial LHFS primarily consist of loans associated with the Company’s syndication business.

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 the ACL reserve methodology during the six months ended June 30, 2025.

Citizens Financial Group, Inc. | 46

The following table presents a summary of changes in the ACL for the three and six months ended June 30, 2025:Three Months Ended June 30, 2025Six Months Ended June 30, 2025(dollars in millions)CommercialRetailTotalCommercialRetailTotalAllow