Company: CFG-PE
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000759944-25-000070
Chunk: 138

Company: CITIZENS FINANCIAL GROUP INC/RI
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 2
Chunk 138
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 institutions and assess the efficiency of their capital utilization without the impact of intangible assets, net of deferred taxes.

Citizens Financial Group, Inc. | 31

Table 26: Reconciliation of Net Interest Income and Net Interest Margin on an FTE Basis (non-GAAP) Three Months Ended March 31,(dollars in millions)20252024Net interest income (annualized)$5,637 $5,796 Average interest-earning assets195,058 200,068 Net interest margin(1)2.89 %2.90 %Net interest income$1,391 $1,442 FTE adjustment4 4 Net interest income on an FTE basis (non-GAAP)(2)$1,395 $1,446 Net interest income on an FTE basis (annualized) (non-GAAP)(2)5,653 5,814 Net interest margin on an FTE basis (non-GAAP)(2)(3)2.90 %2.91 %

(1) Represents the most directly comparable GAAP financial measure to net interest margin on an FTE basis and is calculated based on annualized net interest income divided by average interest-earnings assets.

(2) FTE basis financial measures and ratios are adjusted for the tax-exempt status of income from certain assets held by the Company using the federal statutory tax rate of 21% and are considered non-GAAP financial measures. We believe this allows management to better assess the comparability of revenue from both taxable and tax-exempt sources.

(3) Calculated based on annualized net interest income on an FTE basis divided by average interest-earnings assets.

Citizens Financial Group, Inc. | 32

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

PageConsolidated Balance Sheets34Consolidated Statements of Operations35Consolidated Statements of Comprehensive Income36Consolidated Statements of Changes in Stockholders’ Equity37Consolidated Statements of Cash Flows38Notes to Consolidated Financial Statements39Note 1 - Significant Accounting Policies39Note 2 - Securities39Note 3 - Loans and Leases42Note 4 - Credit Quality and the Allowance for Credit Losses42Note 5 - Mortgage Banking and Other Serviced Loans52Note 6 - Variable Interest Entities53Note 7 - Borrowed Funds55Note 8 - Derivatives56Note 9 - Accumulated Other Comprehensive Income (Loss)60