Company: CFG-PE
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0000759944-25-000108
Chunk: 267

Company: CITIZENS FINANCIAL GROUP INC/RI
Filing Date: 2025-08-04
Form: 10-Q
Item: Part I, Item 2
Chunk 267
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 second quarter of 2025, the Company entered into at-the-market equity offering programs to facilitate capital market activities for customers. These programs involve the concurrent short sale of an equity security and the execution of a forward purchase contract for the same equity security. The forward purchase contract economically hedges the Company’s short sale position and will be closed against such position when a program concludes. Changes in fair value related to the forward purchase contracts are reported in Capital markets fees in the Consolidated Statements of Operations. Residential mortgage loans that will be sold in the secondary market and the related loan commitments, which are considered derivatives, are accounted for at fair value. Forward contracts to sell mortgage-backed securities are utilized to hedge the fair value of the loans and related commitments. Gains and losses on the loans and related commitments, and the derivatives used to economically hedge them, are reported in Mortgage banking fees in the Consolidated Statements of Operations.Residential MSRs are accounted for at fair value. Derivatives utilized to hedge the fair value of residential MSRs include interest rate futures, swaps, options, and forward contracts to purchase mortgage-backed securities. Gains and losses on residential MSRs and the related derivatives are reported in Mortgage banking fees in the Consolidated Statements of Operations.

Citizens Financial Group, Inc. | 65

The following table presents the effect of economic hedges on noninterest income:Amounts Recognized in Noninterest Income for theThree Months Ended June 30,Six Months Ended June 30,Affected Line Item in the Consolidated Statements of Operations(dollars in millions)2025202420252024Economic hedge type:Customer interest rate contracts$70 ($189)$235 ($683)Foreign exchange and derivative productsDerivatives hedging interest rate risk(62)197 (219)700 Foreign exchange and derivative productsCustomer foreign exchange contracts319 (23)417 (133)Foreign exchange and derivative productsDerivatives hedging foreign exchange risk(399)37 (530)182 Foreign exchange and derivative productsCustomer commodity contracts(302)32 41 67 Foreign exchange and derivative productsDerivatives hedging commodity price risk307 (25)(29)(57)Foreign exchange and derivative productsResidential loan commitments3 (5)9 (7)Mortgage banking feesDerivatives hedging residential loan commitments and mortgage loans held for sale, at fair value(1)6 (14)9 Mortgage banking feesDerivative contracts used to hedge residential MS