Company: CFG-PE
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000759944-25-000013
Chunk: 786

Company: CITIZENS FINANCIAL GROUP INC/RI
Filing Date: 2025-02-13
Form: 10-K
Item: Item 5
Chunk 786
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 The consideration of these qualitative items results in adjustments to amounts included in our ACL for each loan portfolio. The qualitative component of the ACL as of December 31, 2024 did not change significantly from December 31, 2023.

Loans and leases that do not share similar risk characteristics are individually assessed for expected credit losses. Nonaccrual commercial and industrial, and commercial real estate loans with an outstanding balance of $5 million or greater are assessed on an individual basis. Generally, measurement of the ACL on an individual loan or lease is the present value of its future cash flows or the fair value of its underlying collateral, if the loan or lease is collateral dependent.

The Company estimates expected credit losses associated with off-balance sheet financial instruments such as standby letters of credit, financial guarantees and unfunded loan commitments that are not unconditionally cancellable. Off-balance sheet financial instruments are subject to individual reviews and are analyzed and segregated by risk according to the Company’s internal risk rating scale. These risk classifications, in conjunction with historical loss experience, current and future economic conditions, timing and amount of expected draws, and performance trends within specific portfolio segments, are considered to estimate the allowance for unfunded lending commitments. The Company does not recognize a reserve for future draws from credit lines that are unconditionally cancellable (e.g., credit cards).

For additional information regarding the ACL, see “Critical Accounting Estimates — Allowance for Credit Losses” and Note 6.

Citizens Financial Group, Inc. | 50

Table 11: Allocation of the ALLLDecember 31,20242023(dollars in millions)Allowance% of Total Loans and Leases(1)Allowance% of Total Loans and Leases(1)Commercial and industrial$480 31 %$587 31 %Commercial real estate660 19 663 20 Total commercial1,140 50 1,250 51 Residential mortgages194 24 181 22 Home equity112 12 100 10 Automobile24 3 57 6 Education292 8 259 8 Other retail 299 3 251 3 Total retail921 50 848 49 Total loans and leases$2,061 100 %$2,098 100 %

(1)    Represents the percentage of each loan category to total loans and leases.

Table 12: ACL and Related Coverage Ratios by PortfolioDecember 31,20242023