Company: CFG-PE
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0000759944-25-000108
Chunk: 126

Company: CITIZENS FINANCIAL GROUP INC/RI
Filing Date: 2025-08-04
Form: 10-Q
Item: Part II, Item 8
Chunk 126
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348 $2,093 $633 $225 $858 (1) Residential mortgage LHFS at fair value are originated for sale.(2) Other retail LHFS consist of education loans.

(3) Commercial LHFS at fair value consist of loans managed by the Company’s commercial secondary loan desk. Other commercial LHFS primarily consist of loans associated with the Company’s syndication business.

NOTE 4 - CREDIT QUALITY AND THE ALLOWANCE FOR CREDIT LOSSES Allowance for Credit Losses    The Company’s estimate of expected credit losses in its loan and lease portfolios is recorded in the ACL and considers extensive historical loss experience, including the impact of loss mitigation and restructuring programs that the Company offers to borrowers experiencing financial difficulty, as well as projected loss severity as a result of loan default. For a detailed discussion of the ACL reserve methodology and estimation techniques as of December 31, 2024, see Note 6 in the Company’s 2024 Form 10-K. There were no significant changes to the ACL reserve methodology during the six months ended June 30, 2025.

Citizens Financial Group, Inc. | 46

The following table presents a summary of changes in the ACL for the three and six months ended June 30, 2025:Three Months Ended June 30, 2025Six Months Ended June 30, 2025(dollars in millions)CommercialRetailTotalCommercialRetailTotalAllowance for loan and lease losses, beginning of period$1,148 $866 $2,014 $1,140 $921 $2,061 Charge-offs(93)(108)(201)(178)(257)(435)Recoveries1 33 34 5 63 68 Net charge-offs(92)(75)(167)(173)(194)(367)Provision expense (benefit) for loans and leases50 111 161 139 175 314 Allowance for loan and lease losses, end of period1,106 902 2,008 1,106 902 2,008 Allowance for unfunded lending commitments, beginning of period164 34 198 155 43 198 Provision expense (benefit) for unfunded lending commitments(1)4 3 8 (5)3 Allowance for unfunded lending commitments, end of period163 38 201 163 38 201 Total allowance for credit losses, end of period