Company: CFG-PE
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000759944-25-000070
Chunk: 174

Company: CITIZENS FINANCIAL GROUP INC/RI
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 2
Chunk 174
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 attributable to the risk being hedged are recognized in the same income statement line item in the Consolidated Statements of Operations when the changes in fair value occur. At March 31, 2025 and December 31, 2024, the Company has designated $4.7 billion of interest rate swaps as fair value hedges of its fixed-rate prepayable AFS securities using the portfolio layer method. This approach allows the Company to designate as the hedged item a stated amount of the assets that are not expected to be affected by prepayments, defaults and other factors affecting the timing and amount of cash flows. At March 31, 2025 and December 31, 2024, the Company has also designated $3.2 billion and $3.1 billion, respectively, of interest rate swaps as fair value hedges to manage interest rate risk within its nonprepayable fixed-rate AFS securities portfolio.

Citizens Financial Group, Inc. | 57

The following table presents the effect of fair value hedges on the Consolidated Statements of Operations and the respective line items affected for each hedged item:Location and Amount of Gains (Losses) RecognizedInterest IncomeInterest Expense(dollars in millions)Investment SecuritiesLong-Term Borrowed FundsThree Months Ended March 31, 2025Gains (losses) on fair value hedges recognized on:Hedged items$116 ($2)Derivatives(118)2 Amounts related to interest settlements on derivatives11 (2)Total net interest income recognized on fair value hedges$9 ($2)Three Months Ended March 31, 2024Gains (losses) on fair value hedges recognized on:Hedged items($135)$3 Derivatives139 (3)Amounts related to interest settlements on derivatives25 (4)Total net interest income recognized on fair value hedges$29 ($4)The following table reflects amounts recorded in the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges:    (dollars in millions)March 31, 2025December 31, 2024Debt securities available for sale(1)Long-term borrowed fundsDebt securities available for sale(1)Long-term borrowed fundsCarrying amount of hedged assets(2)$9,623 $— $9,557 $— Carrying amount of hedged liabilities— 494 — 491 Cumulative amount