Company: CFG-PE
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0000759944-25-000153
Chunk: 202

Company: CITIZENS FINANCIAL GROUP INC/RI
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 2
Chunk 202
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 Total allowance for unfunded lending commitments229 198 Allowance for credit losses$140,870 $2,201 1.56 %$139,203 $2,259 1.62 %

(1) Coverage ratio includes total commercial allowance for unfunded lending commitments and total commercial allowance for loan and lease losses in the numerator and total commercial loans and leases in the denominator.

(2) Coverage ratio includes total retail allowance for unfunded lending commitments and total retail allowance for loan losses in the numerator and total retail loans in the denominator.

The ACL as of September 30, 2025 compared to December 31, 2024 decreased $58 million, driven by a $28 million decrease in retail, given the benefit of runoff of the Non-Core portfolio and improving loan mix, and a $30 million decrease in commercial.

Citizens Financial Group, Inc. | 15

The following table presents nonaccrual loans and leases:

Table 7: Nonaccrual Loans and Leases(dollars in millions)September 30, 2025December 31, 2024Change PercentCommercial and industrial$230 $241 ($11)(5%)Commercial real estate703 776 (73)(9)Total commercial933 1,017 (84)(8)Residential mortgages188 192 (4)(2)Home equity297 283 14 5Automobile31 48 (17)(35)Education20 56 (36)(64)Other retail49 68 (19)(28)Total retail585 647 (62)(10)Nonaccrual loans and leases$1,518 $1,664 ($146)(9%)Nonaccrual loans and leases to total loans and leases1.08%1.20%(12 bps)Allowance for loan and lease losses to nonaccrual loans and leases1301246%Allowance for credit losses to nonaccrual loans and leases1451369%

The decline in nonaccrual loans and leases as of September 30, 2025 compared to December 31, 2024 reflects a decrease in commercial primarily driven by the general office segment of CRE, and a decrease in retail driven by the sale of Non-Core education loans and continued runoff of the auto portfolio. See “Executive Summary” for more information regarding the sale of education loans.

The following tables present the net charge-off ratio for our loan and