Company: CFG-PE
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0000759944-25-000153
Chunk: 33

Company: CITIZENS FINANCIAL GROUP INC/RI
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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.The following table summarizes activity related to residential mortgage loans sold with servicing rights retained:Three Months Ended September 30,Nine Months Ended September 30,(dollars in millions)2025202420252024Cash proceeds from residential mortgage loans sold with servicing retained$2,528 $2,137 $6,920 $5,432 Gain on sales(1)19 17 56 47 Contractually specified servicing, late, and other ancillary fees(1)70 79 209 235 (1) Reported in Mortgage banking fees in the Consolidated Statements of Operations.The unpaid principal balance of residential mortgage loans related to our MSRs was $95.2 billion and $95.6 billion at September 30, 2025 and December 31, 2024, respectively. The Company manages the risk associated with changes in the fair value of the MSRs with an active economic hedging strategy, which includes the purchase of freestanding derivatives.

Citizens Financial Group, Inc. | 59

The following table summarizes changes in MSRs recorded using the fair value method:As of and for the Three Months Ended September 30,As of and for the Nine Months Ended September 30,(dollars in millions)2025202420252024Fair value as of beginning of the period$1,426 $1,568 $1,491 $1,552 Amounts capitalized42 28 117 71 Sales(1)— — (72)— Changes in unpaid principal balance(2)(41)(46)(120)(135)Changes in fair value(3)3 (49)14 13 Fair value at end of the period$1,430 $1,501 $1,430 $1,501 (1) For the nine months ended September 30, 2025, represents the sale of the excess servicing yield on MSRs related to certain FNMA mortgages with a total unpaid principal balance of $10.5 billion at the time of sale.(2) Represents changes in value of the MSRs due to i) the passage of time including the impact from both regularly scheduled loan principal payments and partial    paydowns, and ii) loans that paid off during the period. (3) Represents changes in fair value primarily driven by market conditions. These changes are recorded in Mortgage banking fees in the Consolidated Statements of Operations.The fair value of MSRs is estimated by using the present value of estimated