CITIZENS FINANCIAL GROUP, INC.  BUSINESS 8 ?
Corporate Finance provides advisory services to Middle Market and Mid-corporate companies, including mergers and acquisitions and capital structure advisory.
The team works closely with industry-sector specialists within debt capital markets to structure and originate deal flow in multiple bank products.  ?
Global Markets is a customer-facing business providing foreign exchange and interest rate risk management services.
The lines of business include the centralized leveraged finance team, which provides underwriting and portfolio management expertise for all leveraged transactions and relationships; the private equity team, which serves the unique and time-sensitive needs of private equity firms, management companies and funds; and the sponsor finance team, which provides acquisition and follow-on financing for new and recapitalized portfolio companies of key sponsors.
Treasury Solutions: Supports Commercial Banking and Business Banking clients with treasury management solutions, including domestic and international cash management, commercial credit cards and trade finance.
Treasury Solutions provides products to solve client needs related to receivables, payables, information reporting and liquidity management.
Our Competitive Strengths Our long operating history, through a range of challenging economic cycles, forms the basis of our competitive strengths.
From our community bank roots, we bring a commitment to strong customer relationships, local service and an active involvement in the communities we serve.
Our acquisitions enabled us to develop significant scale in highly desirable markets and broad product capabilities.
The actions taken since the global financial crisis have resulted in a business model with solid asset quality, a stable core deposit mix and a superior capital position.
In particular, we believe that the following strengths differentiate us from our competitors and provide a strong foundation from which to execute our strategy to deliver enhanced growth, profitability and returns.  ?
Significant Scale with Strong Market Penetration in Attractive Geographic Markets: We believe our market share and scale in our footprint is central to our success and growth.
With approximately 1,200 branches, approximately 3,200 ATMs, approximately 17,600 colleagues, and more than 100 non-branch offices as well as our online, telephone and mobile banking platforms, we serve more than five million individuals, institutions and companies.
As of June 30, 2016, we ranked second by retail deposit market share in the New England region (Maine, New Hampshire, Vermont, Massachusetts, Rhode Island and Connecticut) and we ranked in the top five in nine of our ten key MSAs, including Providence, Boston, Pittsburgh, Philadelphia and Cleveland.
(1) We believe this strong market share in our core regions, which have relatively diverse economies and affluent demographics, will help us achieve our long-term growth objectives.
The following table sets forth information regarding our competitive position in our principal MSAs:
## Table 0 ##
Source: FDIC, June 2016.
Excludes “non-retail banks” as defined by SNL Financial.
The scope of “non-retail banks” is subject to the discretion of SNL Financial, but typically includes: industrial bank and non-depository trust charters, institutions with more than 20% brokered deposits (of total deposits), institutions with more than 20% credit card loans (of total loans), institutions deemed not to broadly participate in the banking services market and other nonretail competitor banks.
CITIZENS FINANCIAL GROUP, INC.  MANAGEMENT’S DISCUSSION AND ANALYSIS
## Table 1 ##
(1) As discussed in Note 1 “Significant Accounting Policies” to our audited Consolidated Financial Statements in Part II, Item 8 — Financial Statements and Supplementary Data, included in this report, the ALLL is reviewed separately for commercial and retail loans, and the ALLL for each includes an adjustment for qualitative allowance that includes certain risks, factors and events that might not be measured in the statistical analysis.
As a result of this adjustment, the unallocated allowance was absorbed into the separately measured commercial and retail qualitative allowance during 2013.
(2) During December 2016, changes to the incurred loss period were reflected as components of the provision for retail property secured products.
During December 2013, we updated our estimate of the incurred loss period for certain residential mortgages.
This change reflected an analysis of defaulted borrowers and aligned to management’s view that incurred but unrealized losses emerge differently during various points of an economic/business cycle.
Allocation of the Allowance for Loan and Lease Losses The following table presents an allocation of the ALLL by class and the percent of each class of loans and leases to the total loans and leases:
## Table 2 ##
The allowance for credit losses totaled $1.3 billion at December 31, 2016 and 2015.
Our ALLL was 1.15% of total loans and leases and 118% of nonperforming loans and leases as of December 31, 2016 compared with 1.23% and 115%, respectively, as of December 31, 2015.
There were no material changes in assumptions or estimation techniques compared with prior periods that impacted the determination of the current period’s ALLL and the reserve for unfunded lending commitments.
However, as part of the annual review of loss emergence periods, the incurred loss periods for retail property secured loans were extended.
Overall credit quality continued to improve reflecting growth in lower risk retail loans and modest increases in commercial categories.
Nonperforming loans and leases of $1.0 billion as of December 31, 2016 decreased $15 million from December 31, 2015, reflecting improvements in retail real estate secured categories offset by an increase in commercial nonperforming assets, largely driven by commodities-related businesses.
Net charge-offs of $335 million increased $51 million, or 18%, from $284 million in 2015, as a $59 million increase in commercial, largely tied to commodities-related businesses, and a reduction in commercial real estate recoveries more than offset an $8 million decrease in retail.
Net charge-offs of 0.32% of average total loans and leases remained relatively stable with 0.30% in 2015.
See Note 5 “Allowance for Credit Losses, Nonperforming Assets, and Concentrations of Credit Risk” to our audited Consolidated Financial Statements in Part II, Item 8 — Financial Statements and Supplementary Data, included in this report.
Other Long Term Debt In December 2012, the Company entered into a $50.0 million recourse loan collateralized by the land, buildings and tenant improvements comprising the Company’s corporate headquarters.
The loan has a seven year term and maturity date of December 2019.
The loan bears interest at one month LIBOR plus a margin of 1.50%, and allows for prepayment without penalty.
The loan includes covenants and events of default substantially consistent with the Company’s credit agreement discussed above.
The loan also requires prior approval of the lender for certain matters related to the property, including transfers of any interest in the property.
As of December 31, 2017 and 2016, the outstanding balance on the loan was $40.0 million and $42.0 million, respectively.
The weighted average interest rate on the loan was 2.5% and 2.0% for the years ended December 31, 2017 and 2016, respectively.
The following are the scheduled maturities of long term debt as of December 31, 2017:
## Table 3 ##
Interest expense, net was $34.5 million, $26.4 million, and $14.6 million for the years ended December 31, 2017, 2016 and 2015, respectively.
Interest expense includes the amortization of deferred financing costs, bank fees, capital and built-to-suit lease interest and interest expense under the credit and other long term debt facilities.
Amortization of deferred financing costs was $1.3 million, $1.2 million, and $0.8 million for the years ended December 31, 2017, 2016 and 2015, respectively.
The Company monitors the financial health and stability of its lenders under the credit and other long term debt facilities, however during any period of significant instability in the credit markets lenders could be negatively impacted in their ability to perform under these facilities.7.
Commitments and Contingencies Obligations Under Operating Leases The Company leases warehouse space, office facilities, space for its brand and factory house stores and certain equipment under non-cancelable operating leases.
The leases expire at various dates through 2033, excluding extensions at the Company’s option, and include provisions for rental adjustments.
The table below includes executed lease agreements for brand and factory house stores that the Company did not yet occupy as of December 31, 2017 and does not include contingent rent the Company may incur at its stores based on future sales above a specified minimum or payments made for maintenance, insurance and real estate taxes.
The following is a schedule of future minimum lease payments for non-cancelable real property operating leases as of December 31, 2017 as well as

Tables referenced above, in order (Table 0 first):
<table><tr><td>(dollars in millions)</td><td></td><td rowspan="2">Total Deposits</td><td rowspan="2">Total Deposit Rank<sup></sup></td><td rowspan="2">Deposit Market Share</td></tr><tr><td>MSA</td><td>Total Branches</td></tr><tr><td>Boston, MA</td><td>204</td><td>$30,837</td><td>2</td><td>15.1%</td></tr><tr><td>Philadelphia, PA</td><td>180</td><td>16,994</td><td>5</td><td>4.9</td></tr><tr><td>Providence, RI</td><td>99</td><td>11,050</td><td>1</td><td>28.8</td></tr><tr><td>Pittsburgh, PA</td><td>123</td><td>9,362</td><td>2</td><td>8.9</td></tr><tr><td>Cleveland, OH</td><td>55</td><td>7,667</td><td>4</td><td>12.0</td></tr><tr><td>Detroit, MI</td><td>90</td><td>4,959</td><td>8</td><td>4.1</td></tr><tr><td>Manchester, NH</td><td>22</td><td>4,733</td><td>1</td><td>42.5</td></tr><tr><td>Albany, NY</td><td>24</td><td>2,401</td><td>3</td><td>14.4</td></tr><tr><td>Buffalo, NY</td><td>41</td><td>1,648</td><td>5</td><td>4.0</td></tr><tr><td>Rochester, NY</td><td>33</td><td>1,583</td><td>5</td><td>9.3</td></tr></table>
<table><tr><td></td><td colspan="5">As of and for the Year Ended December 31,</td></tr><tr><td>(dollars in millions)</td><td>2016</td><td>2015</td><td>2014</td><td>2013</td><td>2012</td></tr><tr><td>Reserve for Unfunded Lending Commitments—Beginning</td><td>$58</td><td>$61</td><td>$39</td><td>$40</td><td>$61</td></tr><tr><td>Provision for unfunded lending commitments</td><td>14</td><td>-3</td><td>22</td><td>-1</td><td>-21</td></tr><tr><td>Reserve for unfunded lending commitments—ending</td><td>$72</td><td>$58</td><td>$61</td><td>$39</td><td>$40</td></tr><tr><td>Total Allowance for Credit Losses—Ending</td><td>$1,308</td><td>$1,274</td><td>$1,256</td><td>$1,260</td><td>$1,295</td></tr></table>
<table><tr><td></td><td colspan="10">December 31,</td></tr><tr><td>(dollars in millions)</td><td colspan="2">2016</td><td colspan="2">2015</td><td colspan="2">2014</td><td colspan="2">2013</td><td colspan="2">2012</td></tr><tr><td>Commercial</td><td>$458</td><td>35%</td><td>$376</td><td>34%</td><td>$388</td><td>34%</td><td>$361</td><td>33%</td><td>$379</td><td>33%</td></tr><tr><td>Commercial real estate</td><td>92</td><td>10</td><td>111</td><td>9</td><td>61</td><td>8</td><td>78</td><td>8</td><td>111</td><td>7</td></tr><tr><td>Leases</td><td>48</td><td>3</td><td>23</td><td>4</td><td>23</td><td>4</td><td>24</td><td>5</td><td>19</td><td>4</td></tr><tr><td>Qualitative</td><td>65</td><td>N/A</td><td>86</td><td>N/A</td><td>72</td><td>N/A</td><td>35</td><td>N/A</td><td>—</td><td>N/A</td></tr><tr><td>Total commercial</td><td>663</td><td>48</td><td>596</td><td>47</td><td>544</td><td>46</td><td>498</td><td>46</td><td>509</td><td>44</td></tr><tr><td>Residential mortgages</td><td>42</td><td>14</td><td>46</td><td>13</td><td>63</td><td>13</td><td>104</td><td>11</td><td>74</td><td>11</td></tr><tr><td>Home equity loans</td><td>19</td><td>2</td><td>39</td><td>3</td><td>50</td><td>4</td><td>85</td><td>5</td><td>82</td><td>6</td></tr><tr><td>Home equity lines of credit</td><td>116</td><td>13</td><td>132</td><td>15</td><td>152</td><td>16</td><td>159</td><td>18</td><td>107</td><td>19</td></tr><tr><td>Home equity loans serviced by others</td><td>9</td><td>1</td><td>29</td><td>1</td><td>47</td><td>1</td><td>85</td><td>2</td><td>146</td><td>2</td></tr><tr><td>Home equity lines of credit serviced by others</td><td>3</td><td>—</td><td>3</td><td>—</td><td>11</td><td>1</td><td>18</td><td>1</td><td>32</td><td>1</td></tr><tr><td>Automobile</td><td>110</td><td>13</td><td>106</td><td>14</td><td>58</td><td>14</td><td>23</td><td>11</td><td>30</td><td>10</td></tr><tr><td>Student</td><td>76</td><td>6</td><td>96</td><td>4</td><td>93</td><td>2</td><td>83</td><td>3</td><td>75</td><td>3</td></tr><tr><td>Credit cards</td><td>63</td><td>1</td><td>60</td><td>2</td><td>68</td><td>2</td><td>72</td><td>2</td><td>65</td><td>2</td></tr><tr><td>Other retail</td><td>27</td><td>2</td><td>28</td><td>1</td><td>32</td><td>1</td><td>34</td><td>1</td><td>46</td><td>2</td></tr><tr><td>Qualitative</td><td>108</td><td>N/A</td><td>81</td><td>N/A</td><td>77</td><td>N/A</td><td>60</td><td>N/A</td><td>—</td><td>N/A</td></tr><tr><td>Total retail</td><td>573</td><td>52</td><td>620</td><td>53</td><td>651</td><td>54</td><td>723</td><td>54</td><td>657</td><td>56</td></tr><tr><td>Unallocated</td><td>N/A</td><td>N/A</td><td>N/A</td><td>N/A</td><td>N/A</td><td>N/A</td><td>N/A</td><td>N/A</td><td>89</td><td>N/A</td></tr><tr><td>Total loans and leases</td><td>$1,236</td><td>100%</td><td>$1,216</td><td>100%</td><td>$1,195</td><td>100%</td><td>$1,221</td><td>100%</td><td>$1,255</td><td>100%</td></tr></table>
<table><tr><td>2018</td><td>$27,000</td></tr><tr><td>2019</td><td>63,000</td></tr><tr><td>2020</td><td>25,000</td></tr><tr><td>2021</td><td>86,250</td></tr><tr><td>2022</td><td>—</td></tr><tr><td>2023 and thereafter</td><td>600,000</td></tr><tr><td>Total scheduled maturities of long term debt</td><td>$801,250</td></tr><tr><td>Current maturities of long term debt</td><td>$27,000</td></tr></table>

Question: Does Reserve for Unfunded Lending Commitments—Beginning keeps increasing each year between 2014 and 2016?
Answer: no