Company: CFG-PE
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000759944-25-000070
Chunk: 168

Company: CITIZENS FINANCIAL GROUP INC/RI
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 2
Chunk 168
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 spread628 bps632 bpsDecline in fair value from 10% adverse change$40$42Decline in fair value from 20% adverse change$79$84The Company has mortgage banking derivatives that include commitments to originate mortgages held for sale, certain loan sale agreements, and other financial instruments that meet the definition of a derivative. Refer to Note 8 for additional information.Other Serviced LoansThe Company engages in other servicing relationships from time to time. The following table presents the unpaid principal balance of other serviced loans:(dollars in millions)March 31, 2025December 31, 2024Education$397 $420 Commercial and industrial(1)90 92 

(1) Represents the government guaranteed portion of SBA loans sold to outside investors.

NOTE 6 - VARIABLE INTEREST ENTITIES The Company, in the normal course of business, engages in a variety of activities with entities that are considered VIEs, as defined by GAAP, with its variable interest arising from contractual, ownership or other monetary interests in the entity. A VIE typically does not have sufficient equity at risk to finance its activities without additional subordinated financial support from other parties.For more details regarding the Company’s involvement with VIEs see Note 11 in the Company’s 2024 Form 10-K.Consolidated VIEsThe Company has consolidated VIEs related to secured borrowings collateralized by auto loans. The following table summarizes the carrying amount of assets and liabilities for the Company’s consolidated VIEs:(dollars in millions)March 31, 2025December 31, 2024Assets:Interest-bearing deposits in banks$197 $209 Net loans and leases3,313 3,843 Other assets21 21 Total assets$3,531 $4,073 Liabilities:Long-term borrowed funds$2,885 $3,375 Other liabilities7 8 Total liabilities$2,892 $3,383 

Citizens Financial Group, Inc. | 53

Secured BorrowingsThe Company utilizes a portion of its auto loan portfolio to support certain secured borrowing arrangements, which provide a source of funding for the Company and involves the transfer of auto loans to bankruptcy remote special purpose entities (“SPEs”). These SPEs then issue asset-backed notes to third parties collateralized by the transferred loans.The assets of a particular VIE are the primary source of funds to settle its obligations. Creditors of these VIEs