Delaware | 05-0412693 | |||||||
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
Common stock, $0.01 par value per share | CFG | New York Stock Exchange | ||||||
Depositary Shares, each representing a 1/40th interest in a share of 6.350% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D | CFG PrD | New York Stock Exchange | ||||||
Depositary Shares, each representing a 1/40th interest in a share of 5.000% Fixed-Rate Non-Cumulative Perpetual Preferred Stock, Series E | CFG PrE | New York Stock Exchange |
Large accelerated filer | ☑ | Accelerated filer | ☐ | ||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||
Emerging growth company | ☐ |
Table of Contents | ||||||||||||||
Page | ||||||||||||||
Part I. | ||||||||||||||
Item 1. Business | ||||||||||||||
Item 2. Properties | ||||||||||||||
Item 3. Legal Proceedings | ||||||||||||||
Item 4. Mine Safety Disclosures | ||||||||||||||
Part II. | ||||||||||||||
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | ||||||||||||||
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations | ||||||||||||||
Item 8. Financial Statements and Supplementary Data | ||||||||||||||
Notes to the Consolidated Financial Statements | ||||||||||||||
Part III. | ||||||||||||||
Item 10. Directors, Executive Officers and Corporate Governance | ||||||||||||||
Item 11. Executive Compensation | ||||||||||||||
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | ||||||||||||||
Item 13. Certain Relationships and Related Transactions, and Director Independence | ||||||||||||||
Item 14. Principal Accountant Fees and Services | ||||||||||||||
Part IV. | ||||||||||||||
Item 15. Exhibits and Financial Statement Schedules | ||||||||||||||
Signatures |
Citizens Financial Group, Inc. | 1 |
AACL | Adjusted Allowance for Credit Losses | |||||||
ACL | Allowance for Credit Losses: Allowance for Loan and Lease Losses plus Allowance for Unfunded Lending Commitments | |||||||
Acquisitions | Refers to acquisitions including Willamette Management Associates, Inc. and JMP Group LLC | |||||||
AFS | Available for Sale | |||||||
ALLL | Allowance for Loan and Lease Losses | |||||||
ALM | Asset and Liability Management | |||||||
AOCI | Accumulated Other Comprehensive Income (Loss) | |||||||
ARRC | Alternative Reference Rates Committee | |||||||
ASU | Accounting Standards Update | |||||||
ATM | Automated Teller Machine | |||||||
Bank Holding Company Act | The Bank Holding Company Act of 1956 | |||||||
Board or Board of Directors | The Board of Directors of Citizens Financial Group, Inc. | |||||||
bps | Basis Points | |||||||
Capital Plan Rule | Federal Reserve Regulation Y Capital Plan Rule | |||||||
CARES Act | The Coronavirus Aid, Relief, and Economic Security Act | |||||||
CBNA | Citizens Bank, National Association | |||||||
CCAR | Comprehensive Capital Analysis and Review | |||||||
CCB | Capital Conservation Buffer | |||||||
CCMI | Citizens Capital Markets, Inc. | |||||||
CECL | Current Expected Credit Losses (ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments) | |||||||
CET1 | Common Equity Tier 1 | |||||||
CEO | Chief Executive Officer | |||||||
CET1 capital ratio | Common Equity Tier 1 capital divided by total risk-weighted assets as defined under the U.S. Basel III Standardized approach | |||||||
CFPB | Consumer Financial Protection Bureau | |||||||
CFTC | Commodity Futures Trading Commission | |||||||
Citizens or CFG or the Company, we, us, or our | Citizens Financial Group, Inc. and its Subsidiaries | |||||||
CLO | Collateralized Loan Obligation | |||||||
CLTV | Combined Loan-to-Value | |||||||
CMO | Collateralized Mortgage Obligation | |||||||
COVID-19 pandemic | Coronavirus Disease 2019 Pandemic | |||||||
CRA | Community Reinvestment Act | |||||||
CRE | Commercial Real Estate | |||||||
DE&I | Diversity, Equity and Inclusion | |||||||
DIF | Deposit Insurance Fund | |||||||
Dodd-Frank Act | The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 | |||||||
EAD | Exposure at Default | |||||||
Elevated cash | Cash above targeted operating levels | |||||||
EPS | Earnings Per Share | |||||||
ERISA | Employee Retirement Income Security Act of 1974 | |||||||
ESPP | Employee Stock Purchase Program |
Citizens Financial Group, Inc. | 2 |
EVE | Economic Value of Equity | |||||||
Exchange Act | The Securities Exchange Act of 1934 | |||||||
Fannie Mae (FNMA) | Federal National Mortgage Association | |||||||
FASB | Financial Accounting Standards Board | |||||||
FCA | Financial Conduct Authority | |||||||
FDIA | Federal Deposit Insurance Act | |||||||
FDIC | Federal Deposit Insurance Corporation | |||||||
FFIEC | Federal Financial Institutions Examination Council | |||||||
FHA | Federal Housing Administration | |||||||
FHLB | Federal Home Loan Bank | |||||||
FICO | Fair Isaac Corporation (credit rating) | |||||||
FINRA | Financial Industry Regulation Authority | |||||||
FRB or Federal Reserve | Board of Governors of the Federal Reserve System and, as applicable, Federal Reserve Bank(s) | |||||||
Freddie Mac (FHLMC) | Federal Home Loan Mortgage Corporation | |||||||
FTE | Fully Taxable Equivalent | |||||||
FTP | Funds Transfer Pricing | |||||||
GAAP | Accounting Principles Generally Accepted in the United States of America | |||||||
GDP | Gross Domestic Product | |||||||
GLBA | Gramm-Leach-Bliley Act of 1999 | |||||||
Ginnie Mae (GNMA) | Government National Mortgage Association | |||||||
GRI | Global Reporting Initiative | |||||||
GSE | Government Sponsored Entity | |||||||
HSBC | HSBC Bank U.S.A., N.A. | |||||||
HSBC branch acquisition | Acquisition of 80 East Coast branches and national online business from HSBC | |||||||
HTM | Held To Maturity | |||||||
ICE | Intercontinental Exchange | |||||||
Investors | Investors Bancorp, Inc. and its subsidiaries | |||||||
Investors acquisition agreement | Citizens’ agreement and plan of merger, dated July 28, 2021, with Investors Bancorp, Inc. | |||||||
JMP | JMP Group LLC | |||||||
Last-of-Layer | Last-of-layer is a fair value hedge of the interest rate risk of a portfolio of similar prepayable assets whereby the last dollar amount within the portfolio of assets is identified as the hedged item | |||||||
LHFS | Loans Held for Sale | |||||||
LGD | Loss Given Default | |||||||
LIBOR | London Interbank Offered Rate | |||||||
LIHTC | Low Income Housing Tax Credit | |||||||
LTV | Loan to Value | |||||||
MBS | Mortgage-Backed Securities | |||||||
MD&A | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |||||||
Mid-Atlantic | District of Columbia, Delaware, Maryland, New Jersey, New York, Pennsylvania, Virginia, and West Virginia | |||||||
Midwest | Illinois, Indiana, Michigan, and Ohio | |||||||
Modified AACL Transition | The Day-1 CECL adoption entry booked on January 1, 2020 to ACL plus 25% of subsequent CECL ACL reserve build through December 31, 2021 | |||||||
Modified CECL Transition | The Day-1 CECL adoption entry booked on January 1, 2020 to retained earnings plus 25% of subsequent CECL ACL reserve build through December 31, 2021 |
Citizens Financial Group, Inc. | 3 |
MSRs | Mortgage Servicing Rights | |||||||
NCOs | Net charge-offs | |||||||
New England | Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont | |||||||
NM | Not meaningful | |||||||
NSFR | Net Stable Funding Ratio | |||||||
OCC | Office of the Comptroller of the Currency | |||||||
OCI | Other Comprehensive Income (Loss) | |||||||
OFAC | Office of Foreign Assets Control | |||||||
Operating Leverage | Period-over-period percent change in total revenue, less the period-over-period percent change in noninterest expense | |||||||
OTC | Over the Counter | |||||||
Parent Company | Citizens Financial Group, Inc. (the Parent Company of Citizens Bank, National Association and other subsidiaries) | |||||||
PD | Probability of Default | |||||||
peers or peer regional banks | Comerica, Fifth Third, Huntington, KeyCorp, M&T, PNC, Regions, Truist and U.S. Bancorp | |||||||
PPP | The U.S. Small Business Administration’s Paycheck Protection Program | |||||||
REIT | Real estate investment trust | |||||||
ROTCE | Return on Average Tangible Common Equity | |||||||
RPA | Risk Participation Agreement | |||||||
RWA | Risk-weighted Assets | |||||||
SASB | Sustainability Accounting Standards Board | |||||||
SBA | United States Small Business Administration | |||||||
SCB | Stress Capital Buffer | |||||||
SEC | United States Securities and Exchange Commission | |||||||
SOFR | Secured Overnight Financing Rate | |||||||
SVaR | Stressed Value at Risk | |||||||
Tailoring Rules | Rules establishing risk-based categories for determining prudential standards for large U.S. and foreign banking organizations, consistent with the Dodd-Frank Act, as amended by the Economic Growth, Regulatory Relief and Consumer Protection Act | |||||||
TBAs | To-Be-Announced Mortgage Securities | |||||||
TDR | Troubled Debt Restructuring | |||||||
Tier 1 capital ratio | Tier 1 capital, which includes Common Equity Tier 1 capital plus non-cumulative perpetual preferred equity that qualifies as additional tier 1 capital, divided by total risk-weighted assets as defined under the U.S. Basel III Standardized approach | |||||||
Tier 1 leverage ratio | Tier 1 capital, which includes Common Equity Tier 1 capital plus non-cumulative perpetual preferred equity that qualifies as additional tier 1 capital, divided by quarterly adjusted average assets as defined under the U.S. Basel III Standardized approach | |||||||
Total capital ratio | Total capital, which includes Common Equity Tier 1 capital, tier 1 capital and allowance for credit losses and qualifying subordinated debt that qualifies as tier 2 capital, divided by total risk-weighted assets as defined under the U.S. Basel III Standardized approach | |||||||
USDA | United States Department of Agriculture | |||||||
VA | United States Department of Veterans Affairs | |||||||
VaR | Value at Risk | |||||||
VIE | Variable Interest Entities | |||||||
Willamette | Willamette Management Associates, Inc. |
Citizens Financial Group, Inc. | 4 |
Citizens Financial Group, Inc. | 5 |
Citizens Financial Group, Inc. | 6 |
Citizens Financial Group, Inc. | 7 |
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Citizens Financial Group, Inc. | 31 |
Citizens Financial Group, Inc. | 32 |
Citizens Financial Group, Inc. | 33 |
Citizens Financial Group, Inc. | 34 |
Citizens Financial Group, Inc. | 35 |
12/31/2021 | 12/31/2020 | 12/31/2019 | 12/31/2018 | 12/31/2017 | 12/31/2016 | |||||||||||||||
CFG | $158 | $115 | $123 | $87 | $120 | $100 | ||||||||||||||
S&P 500 Index | 233 | 181 | 153 | 116 | 122 | 100 | ||||||||||||||
KBW BKX Index | 165 | 119 | 133 | 98 | 119 | 100 | ||||||||||||||
Peer Regional Bank Average | $158 | $117 | $130 | $97 | $115 | $100 |
Period | Total Number of Shares Repurchased | Weighted Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(1) | Maximum Dollar Amount of Shares That May Yet Be Purchased As Part of Publicly Announced Plans or Programs(1) | ||||||||||
October 1, 2021 - October 31, 2021 | — | — | — | $655,000,000 | ||||||||||
November 1, 2021 - November 30, 2021 | 3,426,728 | $47.50 | 3,426,728 | $492,237,598 | ||||||||||
December 1, 2021 - December 31, 2021 | 783,984 | $47.50 | 783,984 | $455,000,000 |
Citizens Financial Group, Inc. | 36 |
Page | ||||||||
Citizens Financial Group, Inc. | 37 |
Citizens Financial Group, Inc. | 38 |
Table 1: Notable Items | |||||||||||||||||
Year Ended December 31, 2021 | |||||||||||||||||
(in millions) | Noninterest expense | Income tax expense | Net Income | ||||||||||||||
Reported results (GAAP) | $4,081 | $658 | $2,319 | ||||||||||||||
Less: Notable items | |||||||||||||||||
Total integration costs | 35 | (9) | (26) | ||||||||||||||
Other notable items(1) | 70 | (18) | (52) | ||||||||||||||
Total notable items | 105 | (27) | (78) | ||||||||||||||
Underlying results (non-GAAP) | $3,976 | $685 | $2,397 |
Year Ended December 31, 2020 | |||||||||||||||||
(in millions) | Noninterest expense | Income tax expense | Net Income | ||||||||||||||
Reported results (GAAP) | $3,991 | $241 | $1,057 | ||||||||||||||
Less: Notable items | |||||||||||||||||
Total integration costs | 10 | (2) | (8) | ||||||||||||||
Other notable items(1) | 115 | (40) | (75) | ||||||||||||||
Total notable items | 125 | (42) | (83) | ||||||||||||||
Underlying results (non-GAAP) | $3,866 | $283 | $1,140 |
Citizens Financial Group, Inc. | 39 |
Citizens Financial Group, Inc. | 40 |
Citizens Financial Group, Inc. | 41 |
Table 2: Major Components of Net Interest Income | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2021 | 2020 | Change | ||||||||||||||||||||||||||||||
(dollars in millions) | Average Balances | Income/ Expense | Yields/ Rates | Average Balances | Income/ Expense | Yields/ Rates | Average Balances | Yields/ Rates (bps) | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Interest-bearing cash and due from banks and deposits in banks | $11,762 | $16 | 0.13 | % | $6,175 | $11 | 0.18 | % | $5,587 | (5) | bps | |||||||||||||||||||||
Taxable investment securities | 27,574 | 487 | 1.76 | 25,160 | 519 | 2.06 | 2,414 | (30) | ||||||||||||||||||||||||
Non-taxable investment securities | 3 | — | 2.60 | 4 | — | 2.60 | (1) | — | ||||||||||||||||||||||||
Total investment securities | 27,577 | 487 | 1.76 | 25,164 | 519 | 2.06 | 2,413 | (30) | ||||||||||||||||||||||||
Commercial and industrial | 43,512 | 1,399 | 3.17 | 46,255 | 1,582 | 3.36 | (2,743) | (19) | ||||||||||||||||||||||||
Commercial real estate | 14,515 | 380 | 2.58 | 14,452 | 438 | 2.98 | 63 | (40) | ||||||||||||||||||||||||
Leases | 1,742 | 49 | 2.79 | 2,365 | 64 | 2.71 | (623) | 8 | ||||||||||||||||||||||||
Total commercial | 59,769 | 1,828 | 3.02 | 63,072 | 2,084 | 3.25 | (3,303) | (23) | ||||||||||||||||||||||||
Residential mortgages | 20,636 | 613 | 2.97 | 19,178 | 618 | 3.22 | 1,458 | (25) | ||||||||||||||||||||||||
Home Equity | 11,901 | 370 | 3.11 | 12,607 | 461 | 3.66 | (706) | (55) | ||||||||||||||||||||||||
Automobile | 12,972 | 506 | 3.90 | 12,064 | 517 | 4.29 | 908 | (39) | ||||||||||||||||||||||||
Education | 12,666 | 536 | 4.23 | 11,165 | 560 | 5.02 | 1,501 | (79) | ||||||||||||||||||||||||
Other retail | 5,607 | 400 | 7.15 | 6,458 | 479 | 7.41 | (851) | (26) | ||||||||||||||||||||||||
Total retail | 63,782 | 2,425 | 3.80 | 61,472 | 2,635 | 4.29 | 2,310 | (49) | ||||||||||||||||||||||||
Total loans and leases | 123,551 | 4,253 | 3.42 | 124,544 | 4,719 | 3.76 | (993) | (34) | ||||||||||||||||||||||||
Loans held for sale, at fair value | 3,359 | 82 | 2.45 | 2,772 | 75 | 2.72 | 587 | (27) | ||||||||||||||||||||||||
Other loans held for sale | 262 | 13 | 4.87 | 620 | 33 | 5.22 | (358) | (35) | ||||||||||||||||||||||||
Interest-earning assets | 166,511 | 4,851 | 2.90 | 159,275 | 5,357 | 3.35 | 7,236 | (45) | ||||||||||||||||||||||||
Allowance for loan and lease losses | (2,104) | (2,218) | 114 | |||||||||||||||||||||||||||||
Goodwill | 7,062 | 7,049 | 13 | |||||||||||||||||||||||||||||
Other noninterest-earning assets | 13,637 | 12,336 | 1,301 | |||||||||||||||||||||||||||||
Total assets | $185,106 | $176,442 | $8,664 | |||||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||||||||
Checking with interest | $27,365 | $24 | 0.09 | % | $26,002 | $64 | 0.24 | % | $1,363 | (15) | ||||||||||||||||||||||
Money market accounts | 49,148 | 78 | 0.16 | 44,732 | 192 | 0.43 | 4,416 | (27) | ||||||||||||||||||||||||
Regular savings | 20,276 | 19 | 0.10 | 16,144 | 50 | 0.31 | 4,132 | (21) | ||||||||||||||||||||||||
Term deposits | 6,802 | 39 | 0.58 | 14,309 | 203 | 1.42 | (7,507) | (84) | ||||||||||||||||||||||||
Total interest-bearing deposits | 103,591 | 160 | 0.15 | 101,187 | 509 | 0.50 | 2,404 | (35) | ||||||||||||||||||||||||
Short-term borrowed funds | 66 | 1 | 1.13 | 334 | 2 | 0.52 | (268) | 61 | ||||||||||||||||||||||||
Long-term borrowed funds | 7,412 | 178 | 2.39 | 10,853 | 260 | 2.39 | (3,441) | — | ||||||||||||||||||||||||
Total borrowed funds | 7,478 | 179 | 2.38 | 11,187 | 262 | 2.33 | (3,709) | 5 | ||||||||||||||||||||||||
Total interest-bearing liabilities | 111,069 | 339 | 0.30 | 112,374 | 771 | 0.69 | (1,305) | (39) | ||||||||||||||||||||||||
Demand deposits | 46,898 | 37,553 | 9,345 | |||||||||||||||||||||||||||||
Other liabilities | 4,105 | 4,280 | (175) | |||||||||||||||||||||||||||||
Total liabilities | 162,072 | 154,207 | 7,865 | |||||||||||||||||||||||||||||
Stockholders’ equity | 23,034 | 22,235 | 799 | |||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $185,106 | $176,442 | $8,664 | |||||||||||||||||||||||||||||
Interest rate spread | 2.60 | % | 2.66 | % | (6) | |||||||||||||||||||||||||||
Net interest income and net interest margin | $4,512 | 2.71 | % | $4,586 | 2.88 | % | (17) | |||||||||||||||||||||||||
Net interest income and net interest margin, FTE(1) | $4,521 | 2.72 | % | $4,599 | 2.89 | % | (17) | |||||||||||||||||||||||||
Memo: Total deposits (interest-bearing and demand) | $150,489 | $160 | 0.11 | % | $138,740 | $509 | 0.37 | % | $11,749 | (26) | bps |
Citizens Financial Group, Inc. | 42 |
Citizens Financial Group, Inc. | 43 |
Table 4: Noninterest Income | |||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
(in millions) | 2021 | 2020 | Change | Percent | |||||||||||||||||||
Capital markets fees | $428 | $250 | $178 | 71 | % | ||||||||||||||||||
Service charges and fees | 409 | 403 | 6 | 1 | |||||||||||||||||||
Mortgage banking fees | 434 | 915 | (481) | (53) | |||||||||||||||||||
Card fees | 250 | 217 | 33 | 15 | |||||||||||||||||||
Trust and investment services fees | 239 | 203 | 36 | 18 | |||||||||||||||||||
Letter of credit and loan fees | 156 | 140 | 16 | 11 | |||||||||||||||||||
Foreign exchange and interest rate products | 120 | 120 | — | — | |||||||||||||||||||
Securities gains, net | 10 | 4 | 6 | 150 | |||||||||||||||||||
Other income(1) | 89 | 67 | 22 | 33 | |||||||||||||||||||
Noninterest income | $2,135 | $2,319 | ($184) | (8 | %) |
Table 5: Noninterest Expense | |||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
(in millions) | 2021 | 2020 | Change | Percent | |||||||||||||||||||
Salaries and employee benefits | $2,132 | $2,123 | $9 | 0 | % | ||||||||||||||||||
Equipment and software | 610 | 565 | 45 | 8 | |||||||||||||||||||
Outside services | 595 | 553 | 42 | 8 | |||||||||||||||||||
Occupancy | 333 | 331 | 2 | 1 | |||||||||||||||||||
Other operating expense | 411 | 419 | (8) | (2) | |||||||||||||||||||
Noninterest expense | $4,081 | $3,991 | $90 | 2 | % |
Citizens Financial Group, Inc. | 44 |
Citizens Financial Group, Inc. | 45 |
Citizens Financial Group, Inc. | 46 |
Table 7: Amortized Cost and Fair Value of AFS and HTM Securities | |||||||||||||||||
December 31, 2021 | December 31, 2020 | ||||||||||||||||
(in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
U.S. Treasury and other | $11 | $11 | $11 | $11 | |||||||||||||
State and political subdivisions | 2 | 2 | 3 | 3 | |||||||||||||
Mortgage-backed securities, at fair value: | |||||||||||||||||
Federal agencies and U.S. government sponsored entities | 24,607 | 24,442 | 21,954 | 22,506 | |||||||||||||
Other/non-agency | 397 | 405 | 396 | 422 | |||||||||||||
Total mortgage-backed securities, at fair value | 25,004 | 24,847 | 22,350 | 22,928 | |||||||||||||
Collateralized loan obligations, at fair value | 1,208 | 1,207 | — | — | |||||||||||||
Total debt securities available for sale, at fair value | $26,225 | $26,067 | $22,364 | $22,942 | |||||||||||||
Mortgage-backed securities, at cost: | |||||||||||||||||
Federal agencies and U.S. government sponsored entities | $1,505 | $1,557 | $2,342 | $2,464 | |||||||||||||
Total mortgage-backed securities, at cost | $1,505 | $1,557 | $2,342 | $2,464 | |||||||||||||
Asset-backed securities, at cost | $737 | $732 | $893 | $893 | |||||||||||||
Total debt securities held to maturity | $2,242 | $2,289 | $3,235 | $3,357 | |||||||||||||
Total debt securities available for sale and held to maturity | $28,467 | $28,356 | $25,599 | $26,299 | |||||||||||||
Equity securities, at fair value | $109 | $109 | $66 | $66 | |||||||||||||
Equity securities, at cost | 624 | 624 | 604 | 604 | |||||||||||||
Citizens Financial Group, Inc. | 47 |
Table 8: Amortized Cost of AFS and HTM Securities by Contractual Maturity | ||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Distribution of Maturities(1) | ||||||||||||||||||||||||||||||||||||||||||||
1 Year or Less | After 1 Year Through 5 Years | After 5 Years Through 10 Years | After 10 Years | Total | ||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | Amount | Yield(2) | Amount | Yield(2) | Amount | Yield(2) | Amount | Yield(2) | Amount | Yield(2) | ||||||||||||||||||||||||||||||||||
Amortized cost: | ||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and other | $11 | 0.34 | % | $— | — | % | $— | — | % | $— | — | % | $11 | 0.34 | % | |||||||||||||||||||||||||||||
State and political subdivisions | — | — | — | — | — | — | 2 | 2.60 | 2 | 2.60 | ||||||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | 7 | 2.91 | 66 | 2.08 | 1,914 | 2.27 | 22,620 | 2.40 | 24,607 | 2.39 | ||||||||||||||||||||||||||||||||||
Other/non-agency | — | — | — | — | — | — | 397 | 2.81 | 397 | 2.81 | ||||||||||||||||||||||||||||||||||
Collateralized loan obligations | — | — | — | — | 24 | 1.46 | 1,184 | 1.55 | 1,208 | 1.55 | ||||||||||||||||||||||||||||||||||
Total debt securities available for sale | 18 | 1.33 | 66 | 2.08 | 1,938 | 2.26 | 24,203 | 2.37 | 26,225 | 2.36 | ||||||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | — | — | — | — | — | — | 1,505 | 2.28 | 1,505 | 2.28 | ||||||||||||||||||||||||||||||||||
Asset-backed securities | — | — | — | — | 737 | 2.94 | — | — | 737 | 2.94 | ||||||||||||||||||||||||||||||||||
Total debt securities held to maturity | — | — | — | — | 737 | 2.94 | 1,505 | 2.28 | 2,242 | 2.49 | ||||||||||||||||||||||||||||||||||
Total debt securities | $18 | 1.33 | % | $66 | 2.08 | % | $2,675 | 2.44 | % | $25,708 | 2.36 | % | $28,467 | 2.37 | % |
Table 9: Composition of Loans and Leases, Excluding LHFS | |||||||||||||||||||||||
December 31, | Changes from 2021-2020 | ||||||||||||||||||||||
(in millions) | 2021 | 2020 | $ | % | |||||||||||||||||||
Commercial and industrial(1) | $44,500 | $44,173 | $327 | 1 | % | ||||||||||||||||||
Commercial real estate | 14,264 | 14,652 | (388) | (3) | |||||||||||||||||||
Leases | 1,586 | 1,968 | (382) | (19) | |||||||||||||||||||
Total commercial | 60,350 | 60,793 | (443) | (1) | |||||||||||||||||||
Residential mortgages | 22,822 | 19,539 | 3,283 | 17 | |||||||||||||||||||
Home equity | 12,015 | 12,149 | (134) | (1) | |||||||||||||||||||
Automobile | 14,549 | 12,153 | 2,396 | 20 | |||||||||||||||||||
Education | 12,997 | 12,308 | 689 | 6 | |||||||||||||||||||
Other retail | 5,430 | 6,148 | (718) | (12) | |||||||||||||||||||
Total retail | 67,813 | 62,297 | 5,516 | 9 | |||||||||||||||||||
Total loans and leases | $128,163 | $123,090 | $5,073 | 4 | % |
Citizens Financial Group, Inc. | 48 |
Table 10: Fixed and Variable Rate Loans and Leases by Maturity | |||||||||||||||||
December 31, 2021 | |||||||||||||||||
(in millions) | 1 Year or Less | After 1 Year Through 5 Years | After 5 Years Through 15 Years | After 15 Years | Total Loans and Leases | ||||||||||||
Fixed rate: | |||||||||||||||||
Commercial and industrial | $289 | $2,156 | $760 | $38 | $3,243 | ||||||||||||
Commercial real estate | 20 | 189 | 166 | 9 | 384 | ||||||||||||
Leases | 128 | 899 | 521 | — | 1,548 | ||||||||||||
Total commercial fixed rate | 437 | 3,244 | 1,447 | 47 | 5,175 | ||||||||||||
Variable rate: | |||||||||||||||||
Commercial and industrial | 6,483 | 30,020 | 4,746 | 8 | 41,257 | ||||||||||||
Commercial real estate | 3,514 | 9,690 | 675 | 1 | 13,880 | ||||||||||||
Leases | 14 | 21 | 3 | — | 38 | ||||||||||||
Total commercial variable rate(1) | 10,011 | 39,731 | 5,424 | 9 | 55,175 | ||||||||||||
Total commercial | 10,448 | 42,975 | 6,871 | 56 | 60,350 | ||||||||||||
Fixed rate: | |||||||||||||||||
Residential mortgages | 783 | 50 | 1,043 | 13,070 | 14,946 | ||||||||||||
Home equity | 85 | 77 | 276 | 186 | 624 | ||||||||||||
Automobile | 517 | 7,105 | 6,927 | — | 14,549 | ||||||||||||
Education | 247 | 1,160 | 7,569 | 3,067 | 12,043 | ||||||||||||
Other retail | 858 | 2,471 | 45 | 34 | 3,408 | ||||||||||||
Total retail fixed rate | 2,490 | 10,863 | 15,860 | 16,357 | 45,570 | ||||||||||||
Variable rate: | |||||||||||||||||
Residential mortgages | — | 6 | 107 | 7,763 | 7,876 | ||||||||||||
Home equity | 169 | 7 | 940 | 10,275 | 11,391 | ||||||||||||
Automobile | — | — | — | — | — | ||||||||||||
Education | 3 | 155 | 624 | 172 | 954 | ||||||||||||
Other retail | 2,017 | 4 | 1 | — | 2,022 | ||||||||||||
Total retail variable rate | 2,189 | 172 | 1,672 | 18,210 | 22,243 | ||||||||||||
Total retail | 4,679 | 11,035 | 17,532 | 34,567 | 67,813 | ||||||||||||
Total loans and leases | $15,127 | $54,010 | $24,403 | $34,623 | $128,163 |
Citizens Financial Group, Inc. | 49 |
Citizens Financial Group, Inc. | 50 |
Table 13: Nonaccrual Loans and Leases | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
(dollars in millions) | 2021 | 2020 | Change | Percent | |||||||||||||||||||
Commercial and industrial | $171 | $280 | ($109) | (39 | %) | ||||||||||||||||||
Commercial real estate | 11 | 176 | (165) | (94) | |||||||||||||||||||
Leases | 1 | 2 | (1) | (50) | |||||||||||||||||||
Total commercial | 183 | 458 | (275) | (60) | |||||||||||||||||||
Residential mortgages(1) | 201 | 167 | 34 | 20 | |||||||||||||||||||
Home equity | 220 | 276 | (56) | (20) | |||||||||||||||||||
Automobile | 55 | 72 | (17) | (24) | |||||||||||||||||||
Education | 23 | 18 | 5 | 28 | |||||||||||||||||||
Other retail | 20 | 28 | (8) | (29) | |||||||||||||||||||
Total retail | 519 | 561 | (42) | (7) | |||||||||||||||||||
Nonaccrual loans and leases | $702 | $1,019 | ($317) | (31 | %) | ||||||||||||||||||
Nonaccrual loans and leases to total loans and leases | 0.55 | % | 0.83 | % | (28 | bps) | |||||||||||||||||
Allowance for loan and lease losses to nonaccrual loans and leases | 251 | 240 | 11 | % | |||||||||||||||||||
Allowance for credit losses to nonaccrual loans and leases | 276 | 262 | 14 | % |
Citizens Financial Group, Inc. | 51 |
December 31, 2020 | |||||||||||||||||
Criticized | |||||||||||||||||
(in millions) | Pass | Special Mention | Substandard | Doubtful | Total | ||||||||||||
Commercial and industrial(1) | $40,878 | $1,583 | $1,464 | $248 | $44,173 | ||||||||||||
Commercial real estate | 13,356 | 804 | 416 | 76 | 14,652 | ||||||||||||
Leases | 1,922 | 33 | 12 | 1 | 1,968 | ||||||||||||
Total commercial | $56,156 | $2,420 | $1,892 | $325 | $60,793 |
Citizens Financial Group, Inc. | 52 |
Table 16: Commercial Loans and Leases by Industry Sector | |||||||||||||||||
December 31, 2021 | December 31, 2020 | ||||||||||||||||
(dollars in millions) | Balance | % of Total Loans | Balance | % of Total Loans | |||||||||||||
Finance and insurance | $9,301 | 7 | % | $6,473 | 5 | % | |||||||||||
Health, pharma, and social assistance | 2,912 | 2 | 3,253 | 3 | |||||||||||||
Accommodation and food services | 3,438 | 3 | 3,159 | 3 | |||||||||||||
Professional, scientific, and technical services | 2,665 | 2 | 2,804 | 2 | |||||||||||||
Other manufacturing | 4,087 | 3 | 3,686 | 3 | |||||||||||||
Technology | 4,220 | 3 | 3,546 | 3 | |||||||||||||
Retail trade | 2,237 | 2 | 2,312 | 2 | |||||||||||||
Energy and related | 2,017 | 2 | 2,237 | 2 | |||||||||||||
Wholesale trade | 2,358 | 2 | 1,976 | 2 | |||||||||||||
Arts, entertainment, and recreation | 1,189 | 1 | 1,383 | 1 | |||||||||||||
Other services | 2,051 | 2 | 1,360 | 1 | |||||||||||||
Administrative and waste management services | 1,396 | 1 | 1,327 | 1 | |||||||||||||
Transportation and warehousing | 1,147 | 1 | 1,169 | 1 | |||||||||||||
Consumer products manufacturing | 1,192 | 1 | 1,078 | 1 | |||||||||||||
Automotive | 1,172 | 1 | 1,057 | 1 | |||||||||||||
Educational services | 573 | — | 844 | — | |||||||||||||
Chemicals | 896 | 1 | 736 | — | |||||||||||||
Real estate and rental and leasing | 739 | — | 734 | — | |||||||||||||
All other(2) | 123 | — | 884 | 1 | |||||||||||||
Total commercial and industrial | 43,713 | 34 | 40,018 | 32 | |||||||||||||
Real estate and rental and leasing | 12,773 | 10 | 13,167 | 11 | |||||||||||||
Accommodation and food services | 605 | — | 749 | 1 | |||||||||||||
Finance and insurance | 624 | 1 | 498 | — | |||||||||||||
All other(2) | 262 | — | 238 | — | |||||||||||||
Total commercial real estate | 14,264 | 11 | 14,652 | 12 | |||||||||||||
Total leases | 1,586 | 1 | 1,968 | 2 | |||||||||||||
Total commercial(1)(3) | $59,563 | 46 | % | $56,638 | 46 | % |
Citizens Financial Group, Inc. | 53 |
Table 17: Retail Loan Portfolio Analysis | |||||||||||||||||||||||||||||||||||
December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||
Days Past Due and Accruing | Days Past Due and Accruing | ||||||||||||||||||||||||||||||||||
Current | 30-59 | 60-89 | 90+ | Nonaccrual(2) | Current | 30-59 | 60-89 | 90+ | Nonaccrual(2) | ||||||||||||||||||||||||||
Residential mortgages(1) | 96.03 | % | 0.45 | % | 0.23 | % | 2.41 | % | 0.88 | % | 98.64 | % | 0.28 | % | 0.08 | % | 0.15 | % | 0.85 | % | |||||||||||||||
Home equity | 97.75 | 0.32 | 0.10 | — | 1.83 | 97.13 | 0.44 | 0.16 | — | 2.27 | |||||||||||||||||||||||||
Automobile | 98.45 | 0.90 | 0.27 | — | 0.38 | 97.68 | 1.29 | 0.44 | — | 0.59 | |||||||||||||||||||||||||
Education | 99.45 | 0.26 | 0.10 | 0.01 | 0.18 | 99.48 | 0.25 | 0.10 | 0.02 | 0.15 | |||||||||||||||||||||||||
Other retail | 98.18 | 0.74 | 0.42 | 0.29 | 0.37 | 98.32 | 0.63 | 0.46 | 0.13 | 0.46 | |||||||||||||||||||||||||
Total retail | 97.69 | % | 0.51 | % | 0.20 | % | 0.83 | % | 0.77 | % | 98.29 | % | 0.54 | % | 0.21 | % | 0.06 | % | 0.90 | % |
Table 18: Retail Asset Quality Metrics | |||||||||||
December 31, 2021 | December 31, 2020 | ||||||||||
Average refreshed FICO for total portfolio | 768 | 771 | |||||||||
CLTV ratio for secured real estate(1) | 56 | % | 60 | % | |||||||
Nonaccrual retail loans as a percentage of total retail | 0.77 | % | 0.90 | % |
Citizens Financial Group, Inc. | 54 |
Table 19: Accruing and Nonaccrual Troubled Debt Restructurings | |||||||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||
As a % of Accruing TDRs | |||||||||||||||||||||||||||||
(dollars in millions) | Accruing | 30-89 Days Past Due | 90+ Days Past Due | Nonaccrual | Total | ||||||||||||||||||||||||
Commercial and industrial | $196 | — | % | — | % | $74 | $270 | ||||||||||||||||||||||
Commercial real estate | 1 | — | — | 9 | 10 | ||||||||||||||||||||||||
Total commercial | 197 | — | — | 83 | 280 | ||||||||||||||||||||||||
Residential mortgages(1) | 295 | 2.9 | 12.0 | 42 | 337 | ||||||||||||||||||||||||
Home equity | 183 | 0.6 | — | 74 | 257 | ||||||||||||||||||||||||
Automobile | 8 | 0.2 | — | 22 | 30 | ||||||||||||||||||||||||
Education | 112 | 0.5 | 0.1 | 11 | 123 | ||||||||||||||||||||||||
Other retail | 20 | 0.2 | — | 2 | 22 | ||||||||||||||||||||||||
Total retail | 618 | 4.5 | 12.1 | 151 | 769 | ||||||||||||||||||||||||
Total | $815 | 4.5 | % | 12.1 | % | $234 | $1,049 |
December 31, 2020 | |||||||||||||||||||||||||||||
As a % of Accruing TDRs | |||||||||||||||||||||||||||||
(dollars in millions) | Accruing | 30-89 Days Past Due | 90+ Days Past Due | Nonaccrual | Total | ||||||||||||||||||||||||
Commercial and industrial | $134 | 0.1 | % | — | % | $97 | $231 | ||||||||||||||||||||||
Commercial real estate | 26 | — | — | — | 26 | ||||||||||||||||||||||||
Total commercial | 160 | 0.1 | — | 97 | 257 | ||||||||||||||||||||||||
Residential mortgages(1) | 172 | 2.1 | 2.0 | 43 | 215 | ||||||||||||||||||||||||
Home equity loans | 221 | 1.0 | — | 83 | 304 | ||||||||||||||||||||||||
Automobile | 13 | 0.4 | — | 33 | 46 | ||||||||||||||||||||||||
Education | 116 | 0.5 | 0.3 | 10 | 126 | ||||||||||||||||||||||||
Other retail | 25 | 0.2 | — | 2 | 27 | ||||||||||||||||||||||||
Total retail | 547 | 4.2 | 2.3 | 171 | 718 | ||||||||||||||||||||||||
Total | $707 | 4.3 | % | 2.3 | % | $268 | $975 |
Table 20: Composition of Deposits | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
(in millions) | 2021 | 2020 | Change | Percent | |||||||||||||||||||
Demand | $49,443 | $43,831 | $5,612 | 13 | % | ||||||||||||||||||
Money market accounts | 47,216 | 48,569 | (1,353) | (3) | |||||||||||||||||||
Checking with interest | 30,409 | 27,204 | 3,205 | 12 | |||||||||||||||||||
Regular savings | 22,030 | 18,044 | 3,986 | 22 | |||||||||||||||||||
Term deposits | 5,263 | 9,516 | (4,253) | (45) | |||||||||||||||||||
Total deposits | $154,361 | $147,164 | $7,197 | 5 | % |
Citizens Financial Group, Inc. | 55 |
Table 21: Term Deposits in Excess of the FDIC Insurance Limit by Remaining Maturity | |||||
(in millions) | December 31, 2021 | ||||
Three months or less | $1,054 | ||||
After three months through six months | 57 | ||||
After six months through twelve months | 49 | ||||
After twelve months | 32 | ||||
Total term deposits(1) | $1,192 |
Table 22: Summary of Short-Term Borrowed Funds | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
(in millions) | 2021 | 2020 | Change | Percent | |||||||||||||||||||
Securities sold under agreements to repurchase | $1 | $231 | ($230) | (100 | %) | ||||||||||||||||||
Other short-term borrowed funds | 73 | 12 | 61 | NM | |||||||||||||||||||
Total short-term borrowed funds | $74 | $243 | ($169) | (70 | %) |
Citizens Financial Group, Inc. | 56 |
Table 23: Summary of Long-Term Borrowed Funds | |||||||||||
December 31, | |||||||||||
(in millions) | 2021 | 2020 | |||||||||
Parent Company: | |||||||||||
2.375% fixed-rate senior unsecured debt, due July 2021(1) | $— | $350 | |||||||||
4.150% fixed-rate subordinated debt, due September 2022(2)(3) | 168 | 182 | |||||||||
3.750% fixed-rate subordinated debt, due July 2024(2)(3) | 90 | 159 | |||||||||
4.023% fixed-rate subordinated debt, due October 2024(2)(3) | 17 | 25 | |||||||||
4.350% fixed-rate subordinated debt, due August 2025(2)(3) | 133 | 193 | |||||||||
4.300% fixed-rate subordinated debt, due December 2025(2)(3) | 336 | 450 | |||||||||
2.850% fixed-rate senior unsecured notes, due July 2026 | 498 | 497 | |||||||||
2.500% fixed-rate senior unsecured notes, due February 2030 | 298 | 297 | |||||||||
3.250% fixed-rate senior unsecured notes, due April 2030 | 745 | 745 | |||||||||
3.750% fixed-rate reset subordinated debt, due February 2031(2) | 69 | — | |||||||||
4.300% fixed-rate reset subordinated debt, due February 2031(2) | 135 | — | |||||||||
4.350% fixed-rate reset subordinated debt, due February 2031(2) | 60 | — | |||||||||
2.638% fixed-rate subordinated debt, due September 2032(3) | 550 | 543 | |||||||||
CBNA’s Global Note Program: | |||||||||||
2.550% senior unsecured notes, due May 2021 | — | 1,003 | |||||||||
3.250% senior unsecured notes, due February 2022 | 700 | 716 | |||||||||
0.845% floating-rate senior unsecured notes, due February 2022(4) | 300 | 299 | |||||||||
0.932% floating-rate senior unsecured notes, due May 2022(4) | 250 | 250 | |||||||||
2.650% senior unsecured notes, due May 2022 | 503 | 510 | |||||||||
3.700% senior unsecured notes, due March 2023 | 512 | 527 | |||||||||
1.170% floating-rate senior unsecured notes, due March 2023(4) | 250 | 249 | |||||||||
2.250% senior unsecured notes, due April 2025 | 746 | 746 | |||||||||
3.750% senior unsecured notes, due February 2026 | 524 | 551 | |||||||||
Additional Borrowings by CBNA and Other Subsidiaries: | |||||||||||
Federal Home Loan Bank advances, 0.852% weighted average rate, due through 2041 | 19 | 19 | |||||||||
Other | 29 | 35 | |||||||||
Total long-term borrowed funds | $6,932 | $8,346 |
Citizens Financial Group, Inc. | 57 |
Citizens Financial Group, Inc. | 58 |
Citizens Financial Group, Inc. | 59 |
Table 25: Capital Composition Under the U.S. Basel III Capital Framework | |||||||||||
(in millions) | December 31, 2021 | December 31, 2020 | |||||||||
Total common stockholders’ equity | $21,406 | $20,708 | |||||||||
Exclusions: | |||||||||||
Modified CECL transitional amount | 384 | 568 | |||||||||
Net unrealized (gains)/losses recorded in accumulated other comprehensive income (loss), net of tax: | |||||||||||
Debt and equity securities | 156 | (380) | |||||||||
Derivatives | 160 | 11 | |||||||||
Unamortized net periodic benefit costs | 349 | 429 | |||||||||
Deductions: | |||||||||||
Goodwill | (7,116) | (7,050) | |||||||||
Deferred tax liability associated with goodwill | 383 | 379 | |||||||||
Other intangible assets | (66) | (58) | |||||||||
Total common equity tier 1 | 15,656 | 14,607 | |||||||||
Qualifying preferred stock | 2,014 | 1,965 | |||||||||
Total tier 1 capital | 17,670 | 16,572 | |||||||||
Qualifying subordinated debt(1) | 1,138 | 1,204 | |||||||||
Allowance for credit losses | 1,934 | 2,670 | |||||||||
Exclusions from tier 2 capital: | |||||||||||
Modified AACL transitional amount | (498) | (682) | |||||||||
Excess allowance for credit losses(2) | — | (162) | |||||||||
Adjusted allowance for credit losses | $1,436 | $1,826 | |||||||||
Total capital | $20,244 | $19,602 |
Citizens Financial Group, Inc. | 60 |
Table 26: CBNA's Capital Ratios Under the U.S. Basel III Standardized Rules | |||||||||||||||||
December 31, 2021 | December 31, 2020 | ||||||||||||||||
(dollars in millions, except ratio data) | Amount | Ratio | Amount | Ratio | |||||||||||||
CET1 capital | $17,039 | 10.7 | % | $16,032 | 10.9 | % | |||||||||||
Tier 1 capital | 17,039 | 10.7 | 16,032 | 10.9 | |||||||||||||
Total capital | 19,600 | 12.4 | 18,980 | 13.0 | |||||||||||||
Tier 1 leverage | 17,039 | 9.4 | 16,032 | 9.2 | |||||||||||||
Risk-weighted assets | 158,550 | 146,558 | |||||||||||||||
Quarterly adjusted average assets | 181,268 | 174,954 |
Citizens Financial Group, Inc. | 61 |
Citizens Financial Group, Inc. | 62 |
Table 27: Credit Ratings | |||||||||||||||||
December 31, 2021 | |||||||||||||||||
Moody’s | Standard and Poor’s | Fitch | |||||||||||||||
Citizens Financial Group, Inc.: | |||||||||||||||||
Long-term issuer | NR | BBB+ | BBB+ | ||||||||||||||
Short-term issuer | NR | A-2 | F1 | ||||||||||||||
Subordinated debt | NR | BBB | BBB | ||||||||||||||
Preferred Stock | NR | BB+ | BB | ||||||||||||||
Citizens Bank, National Association: | |||||||||||||||||
Long-term issuer | Baa1 | A- | BBB+ | ||||||||||||||
Short-term issuer | NR | A-2 | F1 | ||||||||||||||
Long-term deposits | A1 | NR | A- | ||||||||||||||
Short-term deposits | P-1 | NR | F1 |
Citizens Financial Group, Inc. | 63 |
Citizens Financial Group, Inc. | 64 |
Citizens Financial Group, Inc. | 65 |
Citizens Financial Group, Inc. | 66 |
Citizens Financial Group, Inc. | 67 |
Citizens Financial Group, Inc. | 68 |
Citizens Financial Group, Inc. | 69 |
Citizens Financial Group, Inc. | 70 |
Table 28: Sensitivity of Net Interest Income | |||||||||||
Estimated % Change in Net Interest Income over 12 Months | |||||||||||
December 31, | |||||||||||
Basis points | 2021 | 2020 | |||||||||
Instantaneous Change in Interest Rates | |||||||||||
200 | 19.4 | % | 21.2 | % | |||||||
100 | 10.2 | 11.2 | |||||||||
-25 | (3.0) | (2.7) | |||||||||
Gradual Change in Interest Rates | |||||||||||
200 | 10.1 | % | 10.8 | % | |||||||
100 | 5.2 | 5.5 | |||||||||
-25 | (1.5) | (1.5) |
Citizens Financial Group, Inc. | 71 |
Citizens Financial Group, Inc. | 72 |
Citizens Financial Group, Inc. | 73 |
Citizens Financial Group, Inc. | 74 |
Table 31: Results of Modeled and Non-Modeled Measures for Regulatory Capital Calculations | ||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | For the Three Months Ended December 31, 2021 | For the Three Months Ended December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||
Market Risk Category | Period End | Average | High | Low | Period End | Average | High | Low | ||||||||||||||||||||||||||||||||||||||||||
Interest Rate | $2 | $1 | $2 | $— | $2 | $2 | $4 | $— | ||||||||||||||||||||||||||||||||||||||||||
Foreign Exchange Currency Rate | — | 1 | 2 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Credit Spread | 3 | 7 | 10 | 3 | 9 | 10 | 12 | 3 | ||||||||||||||||||||||||||||||||||||||||||
Commodity | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
General VaR | 6 | 8 | 10 | 5 | 9 | 8 | 13 | 4 | ||||||||||||||||||||||||||||||||||||||||||
Specific Risk VaR | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total VaR | $6 | $8 | $10 | $5 | $9 | $8 | $13 | $4 | ||||||||||||||||||||||||||||||||||||||||||
Stressed General VaR | $8 | $9 | $12 | $6 | $13 | $10 | $16 | $6 | ||||||||||||||||||||||||||||||||||||||||||
Stressed Specific Risk VaR | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total Stressed VaR | $8 | $9 | $12 | $6 | $13 | $10 | $16 | $6 | ||||||||||||||||||||||||||||||||||||||||||
Market Risk Regulatory Capital | $50 | $56 | ||||||||||||||||||||||||||||||||||||||||||||||||
Specific Risk Not Modeled Add-on | 20 | 14 | ||||||||||||||||||||||||||||||||||||||||||||||||
de Minimis Exposure Add-on | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Total Market Risk Regulatory Capital | $70 | $70 | ||||||||||||||||||||||||||||||||||||||||||||||||
Market Risk-Weighted Assets | $877 | $871 |
Citizens Financial Group, Inc. | 75 |
Citizens Financial Group, Inc. | 76 |
Year Ended December 31, | ||||||||||||||
(in millions, except share, per share and ratio data) | Ref. | 2021 | 2020 | |||||||||||
Total revenue, Underlying: | ||||||||||||||
Total revenue (GAAP) | A | $6,647 | $6,905 | |||||||||||
Less: Notable items | — | — | ||||||||||||
Total revenue, Underlying (non-GAAP) | B | $6,647 | $6,905 | |||||||||||
Noninterest expense, Underlying: | ||||||||||||||
Noninterest expense (GAAP) | C | $4,081 | $3,991 | |||||||||||
Less: Notable items | 105 | 125 | ||||||||||||
Noninterest expense, Underlying (non-GAAP) | D | $3,976 | $3,866 | |||||||||||
Pre-provision profit: | ||||||||||||||
Total revenue (GAAP) | A | $6,647 | $6,905 | |||||||||||
Less: Noninterest expense (GAAP) | C | 4,081 | 3,991 | |||||||||||
Pre-provision profit (GAAP) | $2,566 | $2,914 | ||||||||||||
Pre-provision profit, Underlying: | ||||||||||||||
Total revenue, Underlying (non-GAAP) | B | $6,647 | $6,905 | |||||||||||
Less: Noninterest expense, Underlying (non-GAAP) | D | 3,976 | 3,866 | |||||||||||
Pre-provision profit, Underlying (non-GAAP) | $2,671 | $3,039 | ||||||||||||
Income before income tax expense, Underlying: | ||||||||||||||
Income before income tax expense (GAAP) | E | $2,977 | $1,298 | |||||||||||
Less: Income (loss) before income tax expense (benefit) related to notable items | (105) | (125) | ||||||||||||
Income before income tax expense, Underlying (non-GAAP) | F | $3,082 | $1,423 | |||||||||||
Income tax expense and effective income tax rate, Underlying: | ||||||||||||||
Income tax expense (GAAP) | G | $658 | $241 | |||||||||||
Less: Income tax expense (benefit) related to notable items | (27) | (42) | ||||||||||||
Income tax expense, Underlying (non-GAAP) | H | $685 | $283 | |||||||||||
Effective income tax rate (GAAP) | G/E | 22.10 | % | 18.54 | % | |||||||||
Effective income tax rate, Underlying (non-GAAP) | H/F | 22.21 | 19.92 | |||||||||||
Net income, Underlying: | ||||||||||||||
Net income (GAAP) | I | $2,319 | $1,057 | |||||||||||
Add: Notable items, net of income tax benefit | 78 | 83 | ||||||||||||
Net income, Underlying (non-GAAP) | J | $2,397 | $1,140 | |||||||||||
Net income available to common stockholders, Underlying: | ||||||||||||||
Net income available to common stockholders (GAAP) | K | $2,206 | $950 | |||||||||||
Add: Notable items, net of income tax benefit | 78 | 83 | ||||||||||||
Net income available to common stockholders, Underlying (non-GAAP) | L | $2,284 | $1,033 | |||||||||||
Return on average common equity and return on average common equity, Underlying: | ||||||||||||||
Average common equity (GAAP) | M | $21,025 | $20,438 | |||||||||||
Return on average common equity | K/M | 10.49 | % | 4.65 | % | |||||||||
Return on average common equity, Underlying (non-GAAP) | L/M | 10.86 | 5.05 | |||||||||||
Return on average tangible common equity and return on average tangible common equity, Underlying: | ||||||||||||||
Average common equity (GAAP) | M | $21,025 | $20,438 | |||||||||||
Less: Average goodwill (GAAP) | 7,062 | 7,049 | ||||||||||||
Less: Average other intangibles (GAAP) | 54 | 64 | ||||||||||||
Add: Average deferred tax liabilities related to goodwill (GAAP) | 381 | 376 | ||||||||||||
Average tangible common equity | N | $14,290 | $13,701 | |||||||||||
Return on average tangible common equity | K/N | 15.44 | % | 6.93 | % | |||||||||
Return on average tangible common equity, Underlying (non-GAAP) | L/N | 15.98 | 7.53 |
Citizens Financial Group, Inc. | 77 |
Year Ended December 31, | ||||||||||||||
(in millions, except share, per share and ratio data) | Ref. | 2021 | 2020 | |||||||||||
Return on average total assets and return on average total assets, Underlying: | ||||||||||||||
Average total assets (GAAP) | O | $185,106 | $176,442 | |||||||||||
Return on average total assets | I/O | 1.25 | % | 0.60 | % | |||||||||
Return on average total assets, Underlying (non-GAAP) | J/O | 1.30 | 0.65 | |||||||||||
Return on average total tangible assets and return on average total tangible assets, Underlying: | ||||||||||||||
Average total assets (GAAP) | O | $185,106 | $176,442 | |||||||||||
Less: Average goodwill (GAAP) | 7,062 | 7,049 | ||||||||||||
Less: Average other intangibles (GAAP) | 54 | 64 | ||||||||||||
Add: Average deferred tax liabilities related to goodwill (GAAP) | 381 | 376 | ||||||||||||
Average tangible assets | P | $178,371 | $169,705 | |||||||||||
Return on average total tangible assets | I/P | 1.30 | % | 0.62 | % | |||||||||
Return on average total tangible assets, Underlying (non-GAAP) | J/P | 1.34 | 0.67 | |||||||||||
Efficiency ratio and efficiency ratio, Underlying: | ||||||||||||||
Efficiency ratio | C/A | 61.40 | % | 57.80 | % | |||||||||
Efficiency ratio, Underlying (non-GAAP) | D/B | 59.82 | 55.99 | |||||||||||
Operating leverage and operating leverage, Underlying: | ||||||||||||||
(Decrease) increase in total revenue | (3.74) | % | 6.38 | % | ||||||||||
Increase in noninterest expense | 2.25 | 3.73 | ||||||||||||
Operating Leverage | (5.99) | % | 2.65 | % | ||||||||||
(Decrease) increase in total revenue, Underlying (non-GAAP) | (3.74) | % | 6.39 | % | ||||||||||
Increase in noninterest expense, Underlying (non-GAAP) | 2.85 | 2.30 | ||||||||||||
Operating Leverage, Underlying (non-GAAP) | (6.59) | % | 4.09 | % | ||||||||||
Tangible book value per common share: | ||||||||||||||
Common shares - at period end (GAAP) | Q | 422,137,197 | 427,209,831 | |||||||||||
Common stockholders’ equity (GAAP) | $21,406 | $20,708 | ||||||||||||
Less: Goodwill (GAAP) | 7,116 | 7,050 | ||||||||||||
Less: Other intangible assets (GAAP) | 64 | 58 | ||||||||||||
Add: Deferred tax liabilities related to goodwill (GAAP) | 383 | 379 | ||||||||||||
Tangible common equity | R | $14,609 | $13,979 | |||||||||||
Tangible book value per common share | R/Q | $34.61 | $32.72 | |||||||||||
Net income per average common share - basic and diluted and net income per average common share - basic and diluted, Underlying: | ||||||||||||||
Average common shares outstanding - basic (GAAP) | S | 425,669,451 | 427,062,537 | |||||||||||
Average common shares outstanding - diluted (GAAP) | T | 427,435,818 | 428,157,780 | |||||||||||
Net income per average common share - basic (GAAP) | K/S | $5.18 | $2.22 | |||||||||||
Net income per average common share - diluted (GAAP) | K/T | 5.16 | 2.22 | |||||||||||
Net income per average common share-basic, Underlying (non-GAAP) | L/S | 5.37 | 2.42 | |||||||||||
Net income per average common share-diluted, Underlying (non-GAAP) | L/T | 5.34 | 2.41 | |||||||||||
Dividend payout ratio and dividend payout ratio, Underlying: | ||||||||||||||
Cash dividends declared and paid per common share | U | $1.56 | $1.56 | |||||||||||
Dividend payout ratio | U/(K/S) | 30 | % | 70 | % | |||||||||
Dividend payout ratio, Underlying (non-GAAP) | U/(L/S) | 29 | 65 | |||||||||||
Citizens Financial Group, Inc. | 78 |
Citizens Financial Group, Inc. | 79 |
Page | ||||||||
Citizens Financial Group, Inc. | 80 |
Citizens Financial Group, Inc. | 81 |
Citizens Financial Group, Inc. | 82 |
Citizens Financial Group, Inc. | 83 |
Citizens Financial Group, Inc. | 84 |
Citizens Financial Group, Inc. | 85 |
(in millions, except share data) | December 31, 2021 | December 31, 2020 | |||||||||
ASSETS: | |||||||||||
Cash and due from banks | $1,155 | $1,037 | |||||||||
Interest-bearing cash and due from banks | 8,003 | 11,696 | |||||||||
Interest-bearing deposits in banks | 316 | 306 | |||||||||
Debt securities available for sale, at fair value (including $640 and $549 pledged to creditors, respectively)(1) | 26,067 | 22,942 | |||||||||
Debt securities held to maturity (fair value of $2,289 and $3,357, respectively, and including $77 and $144 pledged to creditors, respectively)(1) | 2,242 | 3,235 | |||||||||
Loans held for sale, at fair value | 2,733 | 3,564 | |||||||||
Other loans held for sale | 735 | 439 | |||||||||
Loans and leases | 128,163 | 123,090 | |||||||||
Less: Allowance for loan and lease losses | (1,758) | (2,443) | |||||||||
Net loans and leases | 126,405 | 120,647 | |||||||||
Derivative assets | 1,216 | 1,915 | |||||||||
Premises and equipment, net | 768 | 759 | |||||||||
Bank-owned life insurance | 2,843 | 1,756 | |||||||||
Goodwill | 7,116 | 7,050 | |||||||||
Other assets | 8,810 | 8,003 | |||||||||
TOTAL ASSETS | $188,409 | $183,349 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY: | |||||||||||
LIABILITIES: | |||||||||||
Deposits: | |||||||||||
Noninterest-bearing | $49,443 | $43,831 | |||||||||
Interest-bearing | 104,918 | 103,333 | |||||||||
Total deposits | 154,361 | 147,164 | |||||||||
Short-term borrowed funds | 74 | 243 | |||||||||
Derivative liabilities | 197 | 128 | |||||||||
Deferred taxes, net | — | 629 | |||||||||
Long-term borrowed funds | 6,932 | 8,346 | |||||||||
Other liabilities | 3,425 | 4,166 | |||||||||
TOTAL LIABILITIES | 164,989 | 160,676 | |||||||||
Contingencies (refer to Note 19) | |||||||||||
STOCKHOLDERS’ EQUITY: | |||||||||||
Preferred Stock: | |||||||||||
$25.00 par value,100,000,000 shares authorized; 2,050,000 and 2,000,000 shares issued and outstanding at December 31, 2021 and 2020, respectively | 2,014 | 1,965 | |||||||||
Common stock: | |||||||||||
$0.01 par value, 1,000,000,000 shares authorized; 571,259,135 shares issued and 422,137,197 shares outstanding at December 31, 2021 and 569,876,133 shares issued and 427,209,831 shares outstanding at December 31, 2020 | 6 | 6 | |||||||||
Additional paid-in capital | 19,005 | 18,940 | |||||||||
Retained earnings | 7,978 | 6,445 | |||||||||
Treasury stock, at cost, 149,121,938 and 142,666,302 shares at December 31, 2021 and 2020, respectively | (4,918) | (4,623) | |||||||||
Accumulated other comprehensive income (loss) | (665) | (60) | |||||||||
TOTAL STOCKHOLDERS’ EQUITY | 23,420 | 22,673 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $188,409 | $183,349 |
Citizens Financial Group, Inc. | 86 |
Year Ended December 31, | |||||||||||
(in millions, except share and per share data) | 2021 | 2020 | 2019 | ||||||||
INTEREST INCOME: | |||||||||||
Interest and fees on loans and leases | $4,253 | $4,719 | $5,441 | ||||||||
Interest and fees on loans held for sale, at fair value | 82 | 75 | 63 | ||||||||
Interest and fees on other loans held for sale | 13 | 33 | 13 | ||||||||
Investment securities | 487 | 519 | 642 | ||||||||
Interest-bearing deposits in banks | 16 | 11 | 30 | ||||||||
Total interest income | 4,851 | 5,357 | 6,189 | ||||||||
INTEREST EXPENSE: | |||||||||||
Deposits | 160 | 509 | 1,155 | ||||||||
Short-term borrowed funds | 1 | 2 | 10 | ||||||||
Long-term borrowed funds | 178 | 260 | 410 | ||||||||
Total interest expense | 339 | 771 | 1,575 | ||||||||
Net interest income | 4,512 | 4,586 | 4,614 | ||||||||
Provision for credit losses | (411) | 1,616 | 393 | ||||||||
Net interest income after provision for credit losses | 4,923 | 2,970 | 4,221 | ||||||||
NONINTEREST INCOME: | |||||||||||
Capital markets fees | 428 | 250 | 216 | ||||||||
Service charges and fees | 409 | 403 | 505 | ||||||||
Mortgage banking fees | 434 | 915 | 302 | ||||||||
Card fees | 250 | 217 | 254 | ||||||||
Trust and investment services fees | 239 | 203 | 202 | ||||||||
Letter of credit and loan fees | 156 | 140 | 135 | ||||||||
Foreign exchange and interest rate products | 120 | 120 | 155 | ||||||||
Securities gains, net | 10 | 4 | 19 | ||||||||
Other income | 89 | 67 | 89 | ||||||||
Total noninterest income | 2,135 | 2,319 | 1,877 | ||||||||
NONINTEREST EXPENSE: | |||||||||||
Salaries and employee benefits | 2,132 | 2,123 | 2,026 | ||||||||
Equipment and software | 610 | 565 | 514 | ||||||||
Outside services | 595 | 553 | 498 | ||||||||
Occupancy | 333 | 331 | 333 | ||||||||
Other operating expense | 411 | 419 | 476 | ||||||||
Total noninterest expense | 4,081 | 3,991 | 3,847 | ||||||||
Income before income tax expense | 2,977 | 1,298 | 2,251 | ||||||||
Income tax expense | 658 | 241 | 460 | ||||||||
NET INCOME | $2,319 | $1,057 | $1,791 | ||||||||
Net income available to common stockholders | $2,206 | $950 | $1,718 | ||||||||
Weighted-average common shares outstanding: | |||||||||||
Basic | 425,669,451 | 427,062,537 | 449,731,453 | ||||||||
Diluted | 427,435,818 | 428,157,780 | 451,213,701 | ||||||||
Per common share information: | |||||||||||
Basic earnings | $5.18 | $2.22 | $3.82 | ||||||||
Diluted earnings | 5.16 | 2.22 | 3.81 |
Citizens Financial Group, Inc. | 87 |
Year Ended December 31, | |||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||
Net income | $2,319 | $1,057 | $1,791 | ||||||||
Other comprehensive income (loss): | |||||||||||
Net unrealized derivative instruments gains (losses) arising during the periods, net of income taxes of $(17), $33 and $35, respectively | (49) | 97 | 103 | ||||||||
Reclassification adjustment for net derivative (gains) losses included in net income, net of income taxes of ($34), ($38) and $14, respectively | (101) | (111) | 43 | ||||||||
Net unrealized debt securities gains (losses) arising during the periods, net of income taxes of $(172), $124 and $165, respectively | (528) | 382 | 501 | ||||||||
Reclassification of net debt securities (gains) losses to net income, net of income taxes of ($2), ($1) and ($8), respectively | (8) | (3) | (15) | ||||||||
Employee benefit plans: | |||||||||||
Actuarial gain (loss), net of income taxes of $19, $(10) and $12, respectively | 55 | (27) | 36 | ||||||||
Reclassification of actuarial loss to net income, net of income taxes of $7, $4 and $6, respectively | 26 | 13 | 13 | ||||||||
Amortization of prior service cost, net of income taxes of $0, $0 and $0, respectively | — | — | (1) | ||||||||
Total other comprehensive income (loss), net of income taxes | (605) | 351 | 680 | ||||||||
Total comprehensive income (loss) | $1,714 | $1,408 | $2,471 |
Citizens Financial Group, Inc. | 88 |
Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock, at Cost | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||
(in millions) | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||
Balance at December 31, 2018 | 1 | $840 | 466 | $6 | $18,815 | $5,385 | ($3,133) | ($1,096) | $20,817 | |||||||||||||||||||||||
Dividends to common stockholders | — | — | — | — | — | (617) | — | — | (617) | |||||||||||||||||||||||
Dividends to preferred stockholders | — | — | — | — | — | (73) | — | — | (73) | |||||||||||||||||||||||
Preferred stock issued | 1 | 730 | — | — | — | — | — | — | 730 | |||||||||||||||||||||||
Treasury stock purchased | — | — | (34) | — | — | — | (1,220) | — | (1,220) | |||||||||||||||||||||||
Share-based compensation plans | — | — | 1 | — | 59 | — | — | — | 59 | |||||||||||||||||||||||
Employee stock purchase plan purchased | — | — | — | — | 17 | — | — | — | 17 | |||||||||||||||||||||||
Cumulative effect of change in accounting principle | — | — | — | — | — | 12 | — | 5 | 17 | |||||||||||||||||||||||
Total comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 1,791 | — | — | 1,791 | |||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | 680 | 680 | |||||||||||||||||||||||
Total comprehensive income (loss) | — | — | — | — | — | 1,791 | — | 680 | 2,471 | |||||||||||||||||||||||
Balance at December 31, 2019 | 2 | $1,570 | 433 | $6 | $18,891 | $6,498 | ($4,353) | ($411) | $22,201 | |||||||||||||||||||||||
Dividends to common stockholders | — | — | — | — | — | (672) | — | — | (672) | |||||||||||||||||||||||
Dividends to preferred stockholders | — | — | — | — | — | (107) | — | — | (107) | |||||||||||||||||||||||
Preferred stock issued | — | 395 | — | — | — | — | — | — | 395 | |||||||||||||||||||||||
Treasury stock purchased | — | — | (8) | — | — | — | (270) | — | (270) | |||||||||||||||||||||||
Share-based compensation plans | — | — | 1 | — | 30 | — | — | — | 30 | |||||||||||||||||||||||
Employee stock purchase plan | — | — | 1 | — | 19 | — | — | — | 19 | |||||||||||||||||||||||
Cumulative effect of change in accounting principle | — | — | — | — | — | (331) | — | — | (331) | |||||||||||||||||||||||
Total comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 1,057 | — | — | 1,057 | |||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | 351 | 351 | |||||||||||||||||||||||
Total comprehensive income (loss) | — | — | — | — | — | 1,057 | — | 351 | 1,408 | |||||||||||||||||||||||
Balance at December 31, 2020 | 2 | $1,965 | 427 | $6 | $18,940 | $6,445 | ($4,623) | ($60) | $22,673 | |||||||||||||||||||||||
Dividends to common stockholders | — | — | — | — | — | (670) | — | — | (670) | |||||||||||||||||||||||
Dividends to preferred stockholders | — | — | — | — | — | (113) | — | — | (113) | |||||||||||||||||||||||
Preferred stock issued | — | 296 | — | — | — | — | — | — | 296 | |||||||||||||||||||||||
Preferred stock redemption | — | (247) | — | — | — | (3) | — | — | (250) | |||||||||||||||||||||||
Treasury stock purchased | — | — | (6) | — | — | — | (295) | — | (295) | |||||||||||||||||||||||
Share-based compensation plans | — | — | 1 | — | 43 | — | — | — | 43 | |||||||||||||||||||||||
Employee stock purchase plan | — | — | — | — | 22 | — | — | — | 22 | |||||||||||||||||||||||
Total comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 2,319 | — | — | 2,319 | |||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | (605) | (605) | |||||||||||||||||||||||
Total comprehensive income (loss) | — | — | — | — | — | 2,319 | — | (605) | 1,714 | |||||||||||||||||||||||
Balance at December 31, 2021 | 2 | $2,014 | 422 | $6 | $19,005 | $7,978 | ($4,918) | ($665) | $23,420 |
Citizens Financial Group, Inc. | 89 |
Year Ended December 31, | |||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||
OPERATING ACTIVITIES | |||||||||||
Net income | $2,319 | $1,057 | $1,791 | ||||||||
Adjustments to reconcile net income to net change in cash due to operating activities: | |||||||||||
Provision for credit losses | (411) | 1,616 | 393 | ||||||||
Net change in loans held for sale | 1,085 | 32 | (672) | ||||||||
Depreciation, amortization and accretion | 625 | 578 | 633 | ||||||||
Deferred income taxes | (429) | (238) | 64 | ||||||||
Share-based compensation | 59 | 48 | 41 | ||||||||
Net gain on sale of assets | (11) | (4) | (31) | ||||||||
Net (increase) decrease in other assets | (1,719) | (3,979) | (853) | ||||||||
Net increase (decrease) in other liabilities | 757 | 1,001 | 331 | ||||||||
Net change due to operating activities | 2,275 | 111 | 1,697 | ||||||||
INVESTING ACTIVITIES | |||||||||||
Investment securities: | |||||||||||
Purchases of debt securities available for sale | (12,406) | (9,271) | (8,422) | ||||||||
Proceeds from maturities and paydowns of debt securities available for sale | 7,810 | 6,943 | 3,946 | ||||||||
Proceeds from sales of debt securities available for sale | 790 | 585 | 5,016 | ||||||||
Proceeds from maturities and paydowns of debt securities held to maturity | 1,006 | 897 | 398 | ||||||||
Net (increase) decrease in interest-bearing deposits in banks | (10) | (9) | (149) | ||||||||
Acquisitions, net of cash acquired | (165) | (3) | (129) | ||||||||
Purchases of loans | (3,778) | (3,315) | (1,592) | ||||||||
Sales of loans | 934 | 3,014 | 1,082 | ||||||||
Net (increase) decrease in loans and leases | (3,177) | (4,794) | (3,824) | ||||||||
Capital expenditures, net | (124) | (118) | (95) | ||||||||
Purchases of bank-owned life insurance | (1,050) | — | — | ||||||||
Other | (316) | (65) | (106) | ||||||||
Net change due to investing activities | (10,486) | (6,136) | (3,875) | ||||||||
FINANCING ACTIVITIES | |||||||||||
Net increase (decrease) in deposits | 7,197 | 21,851 | 5,738 | ||||||||
Net increase (decrease) in short-term borrowed funds | (154) | (39) | (1,048) | ||||||||
Proceeds from issuance of long-term borrowed funds | — | 8,323 | 12,850 | ||||||||
Repayments of long-term borrowed funds | (1,352) | (14,022) | (14,857) | ||||||||
Treasury stock purchased | (295) | (270) | (1,220) | ||||||||
Net proceeds from issuance of preferred stock | 296 | 395 | 730 | ||||||||
Redemption of preferred stock | (250) | — | — | ||||||||
Dividends declared and paid to common stockholders | (670) | (672) | (617) | ||||||||
Dividends declared and paid to preferred stockholders | (113) | (98) | (65) | ||||||||
Premium paid to exchange debt | (1) | (80) | — | ||||||||
Payments of employee tax withholding for share-based compensation | (22) | (16) | (21) | ||||||||
Net change due to financing activities | 4,636 | 15,372 | 1,490 | ||||||||
Net change in cash and cash equivalents(a) | (3,575) | 9,347 | (688) | ||||||||
Cash and cash equivalents at beginning of period(a) | 12,733 | 3,386 | 4,074 | ||||||||
Cash and cash equivalents at end of period(a) | $9,158 | $12,733 | $3,386 | ||||||||
Supplemental disclosures: | |||||||||||
Interest paid | $347 | $837 | $1,560 | ||||||||
Income taxes paid | 1,247 | 261 | 326 | ||||||||
Non-cash items: | |||||||||||
Transfer of securities from available for sale to held to maturity | $— | $813 | $192 | ||||||||
Transfer of securities from held to maturity to available for sale | — | — | 734 | ||||||||
Loans securitized and transferred to securities available for sale | 260 | 956 | 150 | ||||||||
Loans securitized and transferred to securities held to maturity | — | 111 | — | ||||||||
Stock issued for share-based compensation plans | 43 | 30 | 59 | ||||||||
Stock issued for Employee Stock Purchase Plan | $22 | $19 | $17 |
Citizens Financial Group, Inc. | 90 |
Note | Page | |||||||
Cash and Due From Banks | ||||||||
Securities | ||||||||
Loans and Leases | ||||||||
Allowance for Credit Losses | ||||||||
Premises, Equipment and Software | ||||||||
Mortgage Servicing Rights | ||||||||
Leases | ||||||||
Goodwill and Intangible Assets | ||||||||
Variable Interest Entities | ||||||||
Derivative Instruments | ||||||||
Employee Benefits | ||||||||
Treasury Stock | ||||||||
Employee Share-Based Compensation | ||||||||
Fair Value Measurement | ||||||||
Revenue Recognition | ||||||||
Income Taxes | ||||||||
Earnings Per Share |
Citizens Financial Group, Inc. | 91 |
Citizens Financial Group, Inc. | 92 |
December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||
(in millions) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||
U.S. Treasury and other | $11 | $— | $— | $11 | $11 | $— | $— | $11 | |||||||||||||||||||||
State and political subdivisions | 2 | — | — | 2 | 3 | — | — | 3 | |||||||||||||||||||||
Mortgage-backed securities, at fair value: | |||||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | 24,607 | 210 | (375) | 24,442 | 21,954 | 571 | (19) | 22,506 | |||||||||||||||||||||
Other/non-agency | 397 | 9 | (1) | 405 | 396 | 26 | — | 422 | |||||||||||||||||||||
Total mortgage-backed securities, at fair value | 25,004 | 219 | (376) | 24,847 | 22,350 | 597 | (19) | 22,928 | |||||||||||||||||||||
Collateralized loan obligations, at fair value | 1,208 | — | (1) | 1,207 | — | — | — | — | |||||||||||||||||||||
Total debt securities available for sale, at fair value | $26,225 | $219 | ($377) | $26,067 | $22,364 | $597 | ($19) | $22,942 | |||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | $1,505 | $52 | $— | $1,557 | $2,342 | $122 | $— | $2,464 | |||||||||||||||||||||
Total mortgage-backed securities, at cost | 1,505 | 52 | — | 1,557 | 2,342 | 122 | — | 2,464 | |||||||||||||||||||||
Asset-backed securities, at cost | 737 | 2 | (7) | 732 | 893 | — | — | 893 | |||||||||||||||||||||
Total debt securities held to maturity | $2,242 | $54 | ($7) | $2,289 | $3,235 | $122 | $— | $3,357 | |||||||||||||||||||||
Equity securities, at fair value | $109 | $— | $— | $109 | $66 | $— | $— | $66 | |||||||||||||||||||||
Equity securities, at cost | 624 | — | — | 624 | 604 | — | — | 604 |
Citizens Financial Group, Inc. | 93 |
Distribution of Maturities | |||||||||||||||||
(in millions) | 1 Year or Less | After 1 Year through 5 Years | After 5 Years through 10 Years | After 10 Years | Total | ||||||||||||
Amortized cost: | |||||||||||||||||
U.S. Treasury and other | $11 | $— | $— | $— | $11 | ||||||||||||
State and political subdivisions | — | — | — | 2 | 2 | ||||||||||||
Mortgage-backed securities: | |||||||||||||||||
Federal agencies and U.S. government sponsored entities | 7 | 66 | 1,914 | 22,620 | 24,607 | ||||||||||||
Other/non-agency | — | — | — | 397 | 397 | ||||||||||||
Collateralized loan obligations | — | — | 24 | 1,184 | 1,208 | ||||||||||||
Total debt securities available for sale | 18 | 66 | 1,938 | 24,203 | 26,225 | ||||||||||||
Mortgage-backed securities: | |||||||||||||||||
Federal agencies and U.S. government sponsored entities | — | — | — | 1,505 | 1,505 | ||||||||||||
Asset-backed securities | — | — | 737 | — | 737 | ||||||||||||
Total debt securities held to maturity | — | — | 737 | 1,505 | 2,242 | ||||||||||||
Total amortized cost of debt securities | $18 | $66 | $2,675 | $25,708 | $28,467 | ||||||||||||
Fair value: | |||||||||||||||||
U.S. Treasury and other | $11 | $— | $— | $— | $11 | ||||||||||||
State and political subdivisions | — | — | — | 2 | 2 | ||||||||||||
Mortgage-backed securities: | |||||||||||||||||
Federal agencies and U.S. government sponsored entities | 7 | 68 | 1,957 | 22,410 | 24,442 | ||||||||||||
Other/non-agency | — | — | — | 405 | 405 | ||||||||||||
Collateralized loan obligations | — | — | 24 | 1,183 | 1,207 | ||||||||||||
Total debt securities available for sale | 18 | 68 | 1,981 | 24,000 | 26,067 | ||||||||||||
Mortgage-backed securities: | |||||||||||||||||
Federal agencies and U.S. government sponsored entities | — | — | — | 1,557 | 1,557 | ||||||||||||
Asset-backed securities | — | — | 732 | — | 732 | ||||||||||||
Total debt securities held to maturity | — | — | 732 | 1,557 | 2,289 | ||||||||||||
Total fair value of debt securities | $18 | $68 | $2,713 | $25,557 | $28,356 |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||||||||
Gains on sale of debt securities(1) | $15 | $6 | $41 | ||||||||||||||
Losses on sale of debt securities | (5) | (2) | (16) | ||||||||||||||
Debt securities gains, net | $10 | $4 | $25 | ||||||||||||||
Citizens Financial Group, Inc. | 94 |
December 31, 2021 | December 31, 2020 | ||||||||||||||||
(in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law | $4,816 | $4,782 | $3,818 | $3,937 | |||||||||||||
Pledged against FHLB borrowed funds | 325 | 333 | 394 | 423 | |||||||||||||
Pledged against repurchase agreements | 1 | 1 | 224 | 231 |
Citizens Financial Group, Inc. | 95 |
December 31, 2021 | ||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||
(dollars in millions) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | $14,131 | ($320) | $1,236 | ($55) | $15,367 | ($375) | ||||||||||||||||||||
Other/non-agency | 123 | (1) | — | — | 123 | (1) | ||||||||||||||||||||
Total mortgage-backed securities | 14,254 | (321) | 1,236 | (55) | 15,490 | (376) | ||||||||||||||||||||
Collateralized loan obligations, at fair value | 736 | (1) | — | — | 736 | (1) | ||||||||||||||||||||
Total | $14,990 | ($322) | $1,236 | ($55) | $16,226 | ($377) |
December 31, 2020 | ||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||
(dollars in millions) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | $1,991 | ($19) | $— | $— | $1,991 | ($19) | ||||||||||||||||||||
Citizens Financial Group, Inc. | 96 |
December 31, | |||||||||||
(in millions) | 2021 | 2020 | |||||||||
Commercial and industrial(1) | $44,500 | $44,173 | |||||||||
Commercial real estate | 14,264 | 14,652 | |||||||||
Leases | 1,586 | 1,968 | |||||||||
Total commercial | 60,350 | 60,793 | |||||||||
Residential mortgages | 22,822 | 19,539 | |||||||||
Home equity | 12,015 | 12,149 | |||||||||
Automobile | 14,549 | 12,153 | |||||||||
Education | 12,997 | 12,308 | |||||||||
Other retail | 5,430 | 6,148 | |||||||||
Total retail | 67,813 | 62,297 | |||||||||
Total loans and leases | $128,163 | $123,090 |
December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
(in millions) | Residential Mortgages(1) | Commercial(2) | Total | Residential Mortgages(1) | Commercial(2) | Total | |||||||||||||||||
Loans held for sale at fair value | $2,657 | $76 | $2,733 | $3,416 | $148 | $3,564 | |||||||||||||||||
Other loans held for sale | — | 735 | 735 | — | 439 | 439 |
(in millions) | December 31, 2021 | December 31, 2020 | |||||||||
Total future minimum lease rentals | $1,195 | $1,381 | |||||||||
Estimated residual value of leased equipment (non-guaranteed) | 521 | 746 | |||||||||
Initial direct costs | 6 | 7 | |||||||||
Unearned income | (136) | (166) | |||||||||
Total leases | $1,586 | $1,968 |
Citizens Financial Group, Inc. | 97 |
(in millions) | |||||
2022 | $315 | ||||
2023 | 267 | ||||
2024 | 203 | ||||
2025 | 151 | ||||
2026 | 105 | ||||
Thereafter | 154 | ||||
Total undiscounted future minimum lease rentals | $1,195 |
Citizens Financial Group, Inc. | 98 |
Citizens Financial Group, Inc. | 99 |
Citizens Financial Group, Inc. | 100 |
Year Ended December 31, 2021 | |||||||||||
(in millions) | Commercial | Retail | Total | ||||||||
Allowance for loan and lease losses, beginning of period | $1,233 | $1,210 | $2,443 | ||||||||
Charge-offs | (218) | (321) | (539) | ||||||||
Recoveries | 54 | 160 | 214 | ||||||||
Net charge-offs | (164) | (161) | (325) | ||||||||
Provision expense (benefit) for loans and leases | (248) | (112) | (360) | ||||||||
Allowance for loan and lease losses, end of period | 821 | 937 | 1,758 | ||||||||
Allowance for unfunded lending commitments, beginning of period | 186 | 41 | 227 | ||||||||
Provision expense (benefit) for unfunded lending commitments | (33) | (18) | (51) | ||||||||
Allowance for unfunded lending commitments, end of period | 153 | 23 | 176 | ||||||||
Total allowance for credit losses, end of period | $974 | $960 | $1,934 |
Citizens Financial Group, Inc. | 101 |
Year Ended December 31, 2020 | |||||||||||
(in millions) | Commercial | Retail | Total | ||||||||
Allowance for loan and lease losses, beginning of period | $674 | $578 | $1,252 | ||||||||
Cumulative effect of change in accounting principle | (176) | 629 | 453 | ||||||||
Allowance for loan and lease losses, beginning of period, adjusted | 498 | 1,207 | 1,705 | ||||||||
Charge-offs | (437) | (406) | (843) | ||||||||
Recoveries | 12 | 138 | 150 | ||||||||
Net charge-offs | (425) | (268) | (693) | ||||||||
Provision expense (benefit) for loans and leases | 1,160 | 271 | 1,431 | ||||||||
Allowance for loan and lease losses, end of period | 1,233 | 1,210 | 2,443 | ||||||||
Allowance for unfunded lending commitments, beginning of period | 44 | — | 44 | ||||||||
Cumulative effect of change in accounting principle | (3) | 1 | (2) | ||||||||
Allowance for unfunded lending commitments, beginning of period, adjusted | 41 | 1 | 42 | ||||||||
Provision expense (benefit) for unfunded lending commitments | 145 | 40 | 185 | ||||||||
Allowance for unfunded lending commitments, end of period | 186 | 41 | 227 | ||||||||
Total allowance for credit losses, end of period | $1,419 | $1,251 | $2,670 |
Year Ended December 31, 2019 | |||||||||||
(in millions) | Commercial | Retail | Total | ||||||||
Allowance for loan and lease losses, beginning of period | $690 | $552 | $1,242 | ||||||||
Charge-offs | (140) | (475) | (615) | ||||||||
Recoveries | 24 | 161 | 185 | ||||||||
Net charge-offs | (116) | (314) | (430) | ||||||||
Provision expense (benefit) for loans and leases | 100 | 340 | 440 | ||||||||
Allowance for loan and lease losses, end of period | 674 | 578 | 1,252 | ||||||||
Allowance for unfunded lending commitments, beginning of period | 91 | — | 91 | ||||||||
Provision expense (benefit) for unfunded lending commitments | (47) | — | (47) | ||||||||
Allowance for unfunded lending commitments, end of period | 44 | — | 44 | ||||||||
Total allowance for credit losses, end of period | $718 | $578 | $1,296 |
Citizens Financial Group, Inc. | 102 |
Citizens Financial Group, Inc. | 103 |
Term Loans by Origination Year | Revolving Loans | |||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior to 2017 | Within the Revolving Period | Converted to Term | Total | |||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass(1) | $10,218 | $3,336 | $3,599 | $2,284 | $1,426 | $1,863 | $19,406 | $122 | $42,254 | |||||||||||||||||||||||||||||||||||||||||
Special Mention | 47 | 71 | 155 | 114 | 41 | 64 | 316 | 1 | 809 | |||||||||||||||||||||||||||||||||||||||||
Substandard | 97 | 112 | 215 | 81 | 50 | 201 | 521 | 17 | 1,294 | |||||||||||||||||||||||||||||||||||||||||
Doubtful | 1 | 9 | 9 | 22 | 10 | 16 | 74 | 2 | 143 | |||||||||||||||||||||||||||||||||||||||||
Total commercial and industrial | 10,363 | 3,528 | 3,978 | 2,501 | 1,527 | 2,144 | 20,317 | 142 | 44,500 | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 2,766 | 2,417 | 3,181 | 1,756 | 626 | 1,119 | 1,451 | 3 | 13,319 | |||||||||||||||||||||||||||||||||||||||||
Special Mention | 45 | 42 | 113 | 100 | 27 | 79 | — | — | 406 | |||||||||||||||||||||||||||||||||||||||||
Substandard | 27 | — | 88 | 267 | 78 | 59 | 9 | — | 528 | |||||||||||||||||||||||||||||||||||||||||
Doubtful | 1 | 9 | — | — | — | 1 | — | — | 11 | |||||||||||||||||||||||||||||||||||||||||
Total commercial real estate | 2,839 | 2,468 | 3,382 | 2,123 | 731 | 1,258 | 1,460 | 3 | 14,264 | |||||||||||||||||||||||||||||||||||||||||
Leases | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 447 | 262 | 134 | 144 | 66 | 459 | — | — | 1,512 | |||||||||||||||||||||||||||||||||||||||||
Special Mention | 10 | 15 | — | 5 | 3 | 16 | — | — | 49 | |||||||||||||||||||||||||||||||||||||||||
Substandard | 1 | 16 | 5 | 2 | — | — | — | — | 24 | |||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | 1 | — | — | 1 | |||||||||||||||||||||||||||||||||||||||||
Total leases | 458 | 293 | 139 | 151 | 69 | 476 | — | — | 1,586 | |||||||||||||||||||||||||||||||||||||||||
Total commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass(1) | 13,431 | 6,015 | 6,914 | 4,184 | 2,118 | 3,441 | 20,857 | 125 | 57,085 | |||||||||||||||||||||||||||||||||||||||||
Special Mention | 102 | 128 | 268 | 219 | 71 | 159 | 316 | 1 | 1,264 | |||||||||||||||||||||||||||||||||||||||||
Substandard | 125 | 128 | 308 | 350 | 128 | 260 | 530 | 17 | 1,846 | |||||||||||||||||||||||||||||||||||||||||
Doubtful | 2 | 18 | 9 | 22 | 10 | 18 | 74 | 2 | 155 | |||||||||||||||||||||||||||||||||||||||||
Total commercial | $13,660 | $6,289 | $7,499 | $4,775 | $2,327 | $3,878 | $21,777 | $145 | $60,350 |
Citizens Financial Group, Inc. | 104 |
Term Loans by Origination Year | Revolving Loans | |||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | 2020 | 2019 | 2018 | 2017 | 2016 | Prior to 2016 | Within the Revolving Period | Converted to Term | Total | |||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass(1) | $8,036 | $5,730 | $4,180 | $2,174 | $1,157 | $1,980 | $17,281 | $340 | $40,878 | |||||||||||||||||||||||||||||||||||||||||
Special Mention | 34 | 264 | 163 | 84 | 60 | 173 | 771 | 34 | 1,583 | |||||||||||||||||||||||||||||||||||||||||
Substandard | 91 | 195 | 248 | 100 | 81 | 127 | 600 | 22 | 1,464 | |||||||||||||||||||||||||||||||||||||||||
Doubtful | 65 | 10 | 34 | 38 | 3 | 31 | 63 | 4 | 248 | |||||||||||||||||||||||||||||||||||||||||
Total commercial and industrial | 8,226 | 6,199 | 4,625 | 2,396 | 1,301 | 2,311 | 18,715 | 400 | 44,173 | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 1,848 | 2,836 | 2,810 | 1,106 | 566 | 919 | 3,271 | — | 13,356 | |||||||||||||||||||||||||||||||||||||||||
Special Mention | 19 | 130 | 121 | 92 | 94 | 48 | 300 | — | 804 | |||||||||||||||||||||||||||||||||||||||||
Substandard | 116 | 2 | 65 | 5 | 53 | 26 | 149 | — | 416 | |||||||||||||||||||||||||||||||||||||||||
Doubtful | 16 | 26 | 8 | — | — | 2 | 24 | — | 76 | |||||||||||||||||||||||||||||||||||||||||
Total commercial real estate | 1,999 | 2,994 | 3,004 | 1,203 | 713 | 995 | 3,744 | — | 14,652 | |||||||||||||||||||||||||||||||||||||||||
Leases | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 455 | 246 | 229 | 139 | 180 | 673 | — | — | 1,922 | |||||||||||||||||||||||||||||||||||||||||
Special Mention | 3 | 4 | 2 | 4 | 2 | 18 | — | — | 33 | |||||||||||||||||||||||||||||||||||||||||
Substandard | — | 2 | 2 | 4 | 4 | — | — | — | 12 | |||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | 1 | — | — | 1 | |||||||||||||||||||||||||||||||||||||||||
Total leases | 458 | 252 | 233 | 147 | 186 | 692 | — | — | 1,968 | |||||||||||||||||||||||||||||||||||||||||
Total commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass(1) | 10,339 | 8,812 | 7,219 | 3,419 | 1,903 | 3,572 | 20,552 | 340 | 56,156 | |||||||||||||||||||||||||||||||||||||||||
Special Mention | 56 | 398 | 286 | 180 | 156 | 239 | 1,071 | 34 | 2,420 | |||||||||||||||||||||||||||||||||||||||||
Substandard | 207 | 199 | 315 | 109 | 138 | 153 | 749 | 22 | 1,892 | |||||||||||||||||||||||||||||||||||||||||
Doubtful | 81 | 36 | 42 | 38 | 3 | 34 | 87 | 4 | 325 | |||||||||||||||||||||||||||||||||||||||||
Total commercial | $10,683 | $9,445 | $7,862 | $3,746 | $2,200 | $3,998 | $22,459 | $400 | $60,793 |
Citizens Financial Group, Inc. | 105 |
Term Loans by Origination Year | Revolving Loans | |||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior to 2017 | Within the Revolving Period | Converted to Term | Total | |||||||||||||||||||||||||||||||||||||||||
Residential mortgages | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | $2,431 | $3,017 | $1,230 | $342 | $672 | $2,139 | $— | $— | $9,831 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 4,015 | 1,876 | 746 | 246 | 360 | 1,086 | — | — | 8,329 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 1,116 | 572 | 335 | 152 | 172 | 585 | — | — | 2,932 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 111 | 130 | 161 | 93 | 107 | 276 | — | — | 878 | |||||||||||||||||||||||||||||||||||||||||
<620 | 24 | 66 | 164 | 162 | 157 | 257 | — | — | 830 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 3 | 8 | 1 | — | — | 10 | — | — | 22 | |||||||||||||||||||||||||||||||||||||||||
Total residential mortgages | 7,700 | 5,669 | 2,637 | 995 | 1,468 | 4,353 | — | — | 22,822 | |||||||||||||||||||||||||||||||||||||||||
Home equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | — | 2 | 5 | 5 | 3 | 134 | 4,394 | 281 | 4,824 | |||||||||||||||||||||||||||||||||||||||||
740-799 | — | 1 | 4 | 5 | 7 | 122 | 3,514 | 278 | 3,931 | |||||||||||||||||||||||||||||||||||||||||
680-739 | — | 1 | 7 | 14 | 16 | 134 | 1,738 | 243 | 2,153 | |||||||||||||||||||||||||||||||||||||||||
620-679 | — | 3 | 11 | 19 | 17 | 112 | 363 | 167 | 692 | |||||||||||||||||||||||||||||||||||||||||
<620 | — | 2 | 16 | 23 | 20 | 87 | 91 | 176 | 415 | |||||||||||||||||||||||||||||||||||||||||
Total home equity | — | 9 | 43 | 66 | 63 | 589 | 10,100 | 1,145 | 12,015 | |||||||||||||||||||||||||||||||||||||||||
Automobile | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 1,887 | 829 | 538 | 244 | 148 | 57 | — | — | 3,703 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 2,418 | 1,051 | 615 | 288 | 156 | 58 | — | — | 4,586 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 1,968 | 827 | 500 | 234 | 123 | 48 | — | — | 3,700 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 1,029 | 378 | 257 | 131 | 72 | 32 | — | — | 1,899 | |||||||||||||||||||||||||||||||||||||||||
<620 | 164 | 142 | 155 | 103 | 62 | 32 | — | — | 658 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 3 | — | — | — | — | — | — | — | 3 | |||||||||||||||||||||||||||||||||||||||||
Total automobile | 7,469 | 3,227 | 2,065 | 1,000 | 561 | 227 | — | — | 14,549 | |||||||||||||||||||||||||||||||||||||||||
Education | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 1,361 | 1,771 | 840 | 514 | 470 | 880 | — | — | 5,836 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 1,555 | 1,577 | 672 | 371 | 275 | 514 | — | — | 4,964 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 512 | 474 | 229 | 140 | 107 | 262 | — | — | 1,724 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 50 | 66 | 45 | 34 | 28 | 99 | — | — | 322 | |||||||||||||||||||||||||||||||||||||||||
<620 | 5 | 11 | 12 | 12 | 10 | 45 | — | — | 95 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 4 | — | — | — | — | 52 | — | — | 56 | |||||||||||||||||||||||||||||||||||||||||
Total education | 3,487 | 3,899 | 1,798 | 1,071 | 890 | 1,852 | — | — | 12,997 | |||||||||||||||||||||||||||||||||||||||||
Other retail | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 233 | 214 | 122 | 65 | 30 | 29 | 386 | — | 1,079 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 323 | 296 | 173 | 84 | 38 | 26 | 764 | 2 | 1,706 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 246 | 240 | 122 | 56 | 23 | 12 | 709 | 5 | 1,413 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 149 | 119 | 43 | 19 | 7 | 4 | 299 | 5 | 645 | |||||||||||||||||||||||||||||||||||||||||
<620 | 32 | 37 | 17 | 10 | 3 | 2 | 100 | 6 | 207 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 44 | 5 | — | — | — | — | 330 | 1 | 380 | |||||||||||||||||||||||||||||||||||||||||
Total other retail | 1,027 | 911 | 477 | 234 | 101 | 73 | 2,588 | 19 | 5,430 | |||||||||||||||||||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 5,912 | 5,833 | 2,735 | 1,170 | 1,323 | 3,239 | 4,780 | 281 | 25,273 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 8,311 | 4,801 | 2,210 | 994 | 836 | 1,806 | 4,278 | 280 | 23,516 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 3,842 | 2,114 | 1,193 | 596 | 441 | 1,041 | 2,447 | 248 | 11,922 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 1,339 | 696 | 517 | 296 | 231 | 523 | 662 | 172 | 4,436 | |||||||||||||||||||||||||||||||||||||||||
<620 | 225 | 258 | 364 | 310 | 252 | 423 | 191 | 182 | 2,205 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 54 | 13 | 1 | — | — | 62 | 330 | 1 | 461 | |||||||||||||||||||||||||||||||||||||||||
Total retail | $19,683 | $13,715 | $7,020 | $3,366 | $3,083 | $7,094 | $12,688 | $1,164 | $67,813 |
Citizens Financial Group, Inc. | 106 |
Term Loans by Origination Year | Revolving Loans | |||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | 2020 | 2019 | 2018 | 2017 | 2016 | Prior to 2016 | Within the Revolving Period | Converted to Term | Total | |||||||||||||||||||||||||||||||||||||||||
Residential mortgages | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | $2,687 | $1,885 | $638 | $1,129 | $1,615 | $1,755 | $— | $— | $9,709 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 2,931 | 1,133 | 398 | 527 | 743 | 904 | — | — | 6,636 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 784 | 351 | 162 | 172 | 295 | 458 | — | — | 2,222 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 97 | 94 | 44 | 56 | 66 | 223 | — | — | 580 | |||||||||||||||||||||||||||||||||||||||||
<620 | 12 | 28 | 35 | 58 | 50 | 185 | — | — | 368 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 1 | 2 | 1 | 5 | 1 | 14 | — | — | 24 | |||||||||||||||||||||||||||||||||||||||||
Total residential mortgages | 6,512 | 3,493 | 1,278 | 1,947 | 2,770 | 3,539 | — | — | 19,539 | |||||||||||||||||||||||||||||||||||||||||
Home equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 2 | 8 | 10 | 7 | 5 | 216 | 4,319 | 344 | 4,911 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 2 | 6 | 7 | 6 | 5 | 180 | 3,234 | 331 | 3,771 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 1 | 6 | 10 | 15 | 8 | 179 | 1,632 | 284 | 2,135 | |||||||||||||||||||||||||||||||||||||||||
620-679 | — | 10 | 18 | 21 | 14 | 136 | 402 | 195 | 796 | |||||||||||||||||||||||||||||||||||||||||
<620 | 1 | 17 | 30 | 29 | 18 | 122 | 105 | 214 | 536 | |||||||||||||||||||||||||||||||||||||||||
Total home equity | 6 | 47 | 75 | 78 | 50 | 833 | 9,692 | 1,368 | 12,149 | |||||||||||||||||||||||||||||||||||||||||
Automobile | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 1,056 | 812 | 424 | 312 | 169 | 62 | — | — | 2,835 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 1,514 | 1,022 | 531 | 344 | 172 | 59 | — | — | 3,642 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 1,347 | 889 | 461 | 282 | 138 | 47 | — | — | 3,164 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 669 | 484 | 259 | 157 | 84 | 32 | — | — | 1,685 | |||||||||||||||||||||||||||||||||||||||||
<620 | 140 | 242 | 189 | 137 | 79 | 34 | — | — | 821 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 2 | — | — | — | — | 4 | — | — | 6 | |||||||||||||||||||||||||||||||||||||||||
Total automobile | 4,728 | 3,449 | 1,864 | 1,232 | 642 | 238 | — | — | 12,153 | |||||||||||||||||||||||||||||||||||||||||
Education | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 1,817 | 1,363 | 849 | 781 | 578 | 777 | — | — | 6,165 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 1,797 | 1,009 | 541 | 387 | 251 | 423 | — | — | 4,408 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 450 | 294 | 173 | 127 | 90 | 221 | — | — | 1,355 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 26 | 35 | 33 | 28 | 25 | 95 | — | — | 242 | |||||||||||||||||||||||||||||||||||||||||
<620 | 2 | 5 | 10 | 10 | 8 | 41 | — | — | 76 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 2 | — | — | — | — | 60 | — | — | 62 | |||||||||||||||||||||||||||||||||||||||||
Total education | 4,094 | 2,706 | 1,606 | 1,333 | 952 | 1,617 | — | — | 12,308 | |||||||||||||||||||||||||||||||||||||||||
Other retail | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 461 | 380 | 163 | 77 | 15 | 44 | 341 | — | 1,481 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 620 | 460 | 184 | 81 | 19 | 31 | 638 | 2 | 2,035 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 495 | 302 | 111 | 48 | 10 | 13 | 561 | 5 | 1,545 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 248 | 104 | 37 | 14 | 3 | 5 | 174 | 7 | 592 | |||||||||||||||||||||||||||||||||||||||||
<620 | 24 | 30 | 17 | 6 | 1 | 3 | 77 | 8 | 166 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 54 | 1 | — | — | — | — | 272 | 2 | 329 | |||||||||||||||||||||||||||||||||||||||||
Total other retail | 1,902 | 1,277 | 512 | 226 | 48 | 96 | 2,063 | 24 | 6,148 | |||||||||||||||||||||||||||||||||||||||||
Total retail | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 6,023 | 4,448 | 2,084 | 2,306 | 2,382 | 2,854 | 4,660 | 344 | 25,101 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 6,864 | 3,630 | 1,661 | 1,345 | 1,190 | 1,597 | 3,872 | 333 | 20,492 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 3,077 | 1,842 | 917 | 644 | 541 | 918 | 2,193 | 289 | 10,421 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 1,040 | 727 | 391 | 276 | 192 | 491 | 576 | 202 | 3,895 | |||||||||||||||||||||||||||||||||||||||||
<620 | 179 | 322 | 281 | 240 | 156 | 385 | 182 | 222 | 1,967 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 59 | 3 | 1 | 5 | 1 | 78 | 272 | 2 | 421 | |||||||||||||||||||||||||||||||||||||||||
Total retail | $17,242 | $10,972 | $5,335 | $4,816 | $4,462 | $6,323 | $11,755 | $1,392 | $62,297 |
Citizens Financial Group, Inc. | 107 |
Citizens Financial Group, Inc. | 108 |
December 31, 2021 | |||||||||||||||||||||||
Days Past Due and Accruing | |||||||||||||||||||||||
(in millions) | Current | 30-59 | 60-89 | 90+ | Nonaccrual(2) | Total | Nonaccrual with no related ACL | ||||||||||||||||
Commercial and industrial | $44,247 | $47 | $26 | $9 | $171 | $44,500 | $36 | ||||||||||||||||
Commercial real estate | 14,247 | 6 | — | — | 11 | 14,264 | 1 | ||||||||||||||||
Leases | 1,570 | 14 | 1 | — | 1 | 1,586 | — | ||||||||||||||||
Total commercial | 60,064 | 67 | 27 | 9 | 183 | 60,350 | 37 | ||||||||||||||||
Residential mortgages(1) | 21,918 | 102 | 52 | 549 | 201 | 22,822 | 137 | ||||||||||||||||
Home equity | 11,745 | 38 | 12 | — | 220 | 12,015 | 186 | ||||||||||||||||
Automobile | 14,324 | 131 | 39 | — | 55 | 14,549 | 22 | ||||||||||||||||
Education | 12,926 | 34 | 13 | 1 | 23 | 12,997 | 2 | ||||||||||||||||
Other retail | 5,331 | 40 | 23 | 16 | 20 | 5,430 | 2 | ||||||||||||||||
Total retail | 66,244 | 345 | 139 | 566 | 519 | 67,813 | 349 | ||||||||||||||||
Total | $126,308 | $412 | $166 | $575 | $702 | $128,163 | $386 |
December 31, 2020 | |||||||||||||||||||||||
Days Past Due and Accruing | |||||||||||||||||||||||
(in millions) | Current | 30-59 | 60-89 | 90+ | Nonaccrual(2) | Total | Nonaccrual with no related ACL | ||||||||||||||||
Commercial and industrial | $43,666 | $198 | $9 | $20 | $280 | $44,173 | $56 | ||||||||||||||||
Commercial real estate | 14,475 | 1 | — | — | 176 | 14,652 | 2 | ||||||||||||||||
Leases | 1,956 | 9 | — | 1 | 2 | 1,968 | — | ||||||||||||||||
Total commercial | 60,097 | 208 | 9 | 21 | 458 | 60,793 | 58 | ||||||||||||||||
Residential mortgages(1) | 19,272 | 55 | 15 | 30 | 167 | 19,539 | 96 | ||||||||||||||||
Home equity | 11,799 | 54 | 20 | — | 276 | 12,149 | 207 | ||||||||||||||||
Automobile | 11,870 | 157 | 54 | — | 72 | 12,153 | 17 | ||||||||||||||||
Education | 12,245 | 31 | 12 | 2 | 18 | 12,308 | 2 | ||||||||||||||||
Other retail | 6,045 | 39 | 28 | 8 | 28 | 6,148 | — | ||||||||||||||||
Total retail | 61,231 | 336 | 129 | 40 | 561 | 62,297 | 322 | ||||||||||||||||
Total | $121,328 | $544 | $138 | $61 | $1,019 | $123,090 | $380 |
Citizens Financial Group, Inc. | 109 |
Citizens Financial Group, Inc. | 110 |
December 31, 2021 | |||||||||||||||||||||||||||||
Amortized Cost Basis | |||||||||||||||||||||||||||||
(dollars in millions) | Number of Contracts | Interest Rate Reduction(1) | Maturity Extension(2) | Other(3) | Total | ||||||||||||||||||||||||
Commercial and industrial | 44 | $— | $44 | $123 | $167 | ||||||||||||||||||||||||
Total commercial | 44 | — | 44 | 123 | 167 | ||||||||||||||||||||||||
Residential mortgages | 922 | 21 | 137 | 60 | 218 | ||||||||||||||||||||||||
Home equity | 412 | 5 | 11 | 13 | 29 | ||||||||||||||||||||||||
Automobile | 1,463 | 2 | — | 15 | 17 | ||||||||||||||||||||||||
Education | 807 | — | — | 26 | 26 | ||||||||||||||||||||||||
Other retail | 2,291 | 9 | — | 2 | 11 | ||||||||||||||||||||||||
Total retail | 5,895 | 37 | 148 | 116 | 301 | ||||||||||||||||||||||||
Total | 5,939 | $37 | $192 | $239 | $468 |
December 31, 2020 | |||||||||||||||||||||||||||||
Amortized Cost Basis | |||||||||||||||||||||||||||||
(dollars in millions) | Number of Contracts | Interest Rate Reduction(1) | Maturity Extension(2) | Other(3) | Total | ||||||||||||||||||||||||
Commercial and industrial | 70 | $— | $107 | $325 | $432 | ||||||||||||||||||||||||
Commercial real estate | 1 | — | 7 | — | 7 | ||||||||||||||||||||||||
Total commercial | 71 | — | 114 | 325 | 439 | ||||||||||||||||||||||||
Residential mortgages | 473 | 39 | 34 | 13 | 86 | ||||||||||||||||||||||||
Home equity | 723 | 12 | 12 | 23 | 47 | ||||||||||||||||||||||||
Automobile | 3,236 | 2 | 1 | 47 | 50 | ||||||||||||||||||||||||
Education | 465 | — | — | 10 | 10 | ||||||||||||||||||||||||
Other retail | 2,591 | 10 | — | 2 | 12 | ||||||||||||||||||||||||
Total retail | 7,488 | 63 | 47 | 95 | 205 | ||||||||||||||||||||||||
Total | 7,559 | $63 | $161 | $420 | $644 |
December 31, 2019 | |||||||||||||||||||||||||||||
Amortized Cost Basis | |||||||||||||||||||||||||||||
(dollars in millions) | Number of Contracts | Interest Rate Reduction(1) | Maturity Extension(2) | Other(3) | Total | ||||||||||||||||||||||||
Commercial and industrial | 85 | $— | $5 | $210 | $215 | ||||||||||||||||||||||||
Commercial real estate | 1 | — | — | — | — | ||||||||||||||||||||||||
Total commercial | 86 | — | 5 | 210 | 215 | ||||||||||||||||||||||||
Residential mortgages | 242 | 12 | 10 | 17 | 39 | ||||||||||||||||||||||||
Home equity | 722 | 20 | 11 | 26 | 57 | ||||||||||||||||||||||||
Automobile | 1,431 | 3 | — | 17 | 20 | ||||||||||||||||||||||||
Education | 272 | — | — | 7 | 7 | ||||||||||||||||||||||||
Other retail | 3,739 | 18 | — | 2 | 20 | ||||||||||||||||||||||||
Total retail | 6,406 | 53 | 21 | 69 | 143 | ||||||||||||||||||||||||
Total | 6,492 | $53 | $26 | $279 | $358 |
Citizens Financial Group, Inc. | 111 |
Year Ended December 31, | |||||||||||||||||
(dollars in millions) | 2021 | 2020 | 2019 | ||||||||||||||
Commercial TDRs | $23 | $54 | $1 | ||||||||||||||
Retail TDRs(1) | 95 | 46 | 37 | ||||||||||||||
Total | $118 | $100 | $38 |
December 31, | |||||||||||||||||
(dollars in millions) | Useful Lives (years) | 2021 | 2020 | ||||||||||||||
Land and land improvements | 10 - 75 | $101 | $102 | ||||||||||||||
Buildings and leasehold improvements | 5 - 60 | 805 | 800 | ||||||||||||||
Furniture, fixtures and equipment | 4 - 20 | 589 | 644 | ||||||||||||||
Construction in progress | 77 | 50 | |||||||||||||||
Total premises and equipment, gross | 1,572 | 1,596 | |||||||||||||||
Accumulated depreciation | (804) | (837) | |||||||||||||||
Total premises and equipment, net | $768 | $759 |
Citizens Financial Group, Inc. | 112 |
Year | (in millions) | ||||
2022 | $209 | ||||
2023 | 180 | ||||
2024 | 153 | ||||
2025 | 112 | ||||
2026 | 45 | ||||
Thereafter | 22 | ||||
Total(1) | $721 |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||||||||
Cash proceeds from residential mortgage loans sold with servicing retained | $37,039 | $33,221 | $20,430 | ||||||||||||||
Repurchased residential mortgages(1) | 1,381 | — | — | ||||||||||||||
Gain on sales(2) | 382 | 895 | 251 | ||||||||||||||
Contractually specified servicing, late and other ancillary fees(2) | 247 | 227 | 208 |
Citizens Financial Group, Inc. | 113 |
As of and for the Year Ended December 31, | |||||||||||
(in millions) | 2021 | 2020 | |||||||||
Fair value as of beginning of the period | $658 | $642 | |||||||||
Transfers upon election of fair value method(1) | — | 190 | |||||||||
Fair value as of beginning of the period, adjusted | 658 | 832 | |||||||||
Amounts capitalized | 419 | 324 | |||||||||
Changes in unpaid principal balance during the period(2) | (212) | (196) | |||||||||
Changes in fair value during the period(3) | 164 | (302) | |||||||||
Fair value at end of the period | $1,029 | $658 |
(dollars in millions) | December 31, 2021 | December 31, 2020 | |||||||||
Fair value | $1,029 | $658 | |||||||||
Weighted average life (years) | 6.4 | 4.2 | |||||||||
Weighted average constant prepayment rate | 10.7% | 17.3% | |||||||||
Decline in fair value from 10% adverse change | $45 | $43 | |||||||||
Decline in fair value from 20% adverse change | $87 | $92 | |||||||||
Weighted average option adjusted spread | 596 bps | 595 bps | |||||||||
Decline in fair value from 10% adverse change | $25 | $14 | |||||||||
Decline in fair value from 20% adverse change | $50 | $29 |
(in millions) | December 31, 2021 | December 31, 2020 | |||||||||||||||
Education | $761 | $974 | |||||||||||||||
Commercial and industrial(1) | 80 | 51 | |||||||||||||||
Citizens Financial Group, Inc. | 114 |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||||||||
Operating lease cost | $161 | $165 | $165 | ||||||||||||||
Short-term lease cost | 1 | 4 | 10 | ||||||||||||||
Variable lease cost | 8 | 8 | 7 | ||||||||||||||
Sublease income | (4) | (4) | (3) | ||||||||||||||
Total | $166 | $173 | $179 |
(in millions) | December 31, 2021 | December 31, 2020 | Affected Line Item in Consolidated Balance Sheets | |||||||||||
Operating lease right-of-use assets | $766 | $800 | Other assets | |||||||||||
Operating lease liabilities | 800 | 835 | Other liabilities |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||||||||
Cash paid for amounts included in measurement of liabilities: | |||||||||||||||||
Operating cash flows from operating leases | $163 | $167 | $164 | ||||||||||||||
Right-of-use assets in exchange for new operating lease liabilities | 79 | 268 | 117 |
Citizens Financial Group, Inc. | 115 |
(in millions) | Operating Leases | ||||
2022 | $157 | ||||
2023 | 151 | ||||
2024 | 129 | ||||
2025 | 106 | ||||
2026 | 78 | ||||
Thereafter | 258 | ||||
Total lease payments | 879 | ||||
Less: Interest | 79 | ||||
Present value of lease liabilities | $800 |
Citizens Financial Group, Inc. | 116 |
(in millions) | Consumer Banking | Commercial Banking | Total | ||||||||||||||
Balance at December 31, 2019 | $2,258 | $4,786 | $7,044 | ||||||||||||||
Business acquisition | — | 6 | 6 | ||||||||||||||
Balance at December 31, 2020 | $2,258 | $4,792 | $7,050 | ||||||||||||||
Business acquisitions | — | 66 | 66 | ||||||||||||||
Balance at December 31, 2021 | $2,258 | $4,858 | $7,116 |
December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||
(in millions) | Amortizable Lives (years) | Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||||||
Acquired technology | 5 - 7 | $21 | $11 | $10 | $21 | $7 | $14 | |||||||||||||||||||
Acquired relationships | 2 - 15 | 53 | 14 | 39 | 38 | 10 | 28 | |||||||||||||||||||
Naming Rights | 10 | 10 | 3 | 7 | 11 | 2 | 9 | |||||||||||||||||||
Other | 2 - 7 | 13 | 5 | 8 | 13 | 6 | 7 | |||||||||||||||||||
Total | $97 | $33 | $64 | $83 | $25 | $58 |
(in millions) | Total | ||||
2022 | $20 | ||||
2023 | 12 | ||||
2024 | 7 | ||||
2025 | 7 | ||||
2026 | 6 |
Citizens Financial Group, Inc. | 117 |
December 31, | |||||||||||
(in millions) | 2021 | 2020 | |||||||||
Lending to special purpose entities included in loans and leases | $2,646 | $1,295 | |||||||||
LIHTC investment included in other assets | 1,978 | 1,687 | |||||||||
LIHTC unfunded commitments included in other liabilities | 927 | 875 | |||||||||
Investment in asset-backed securities included in HTM securities | 737 | 893 | |||||||||
Renewable energy investments included in other assets | 429 | 403 |
Citizens Financial Group, Inc. | 118 |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||||||||
Tax credits included in income tax expense | $202 | $159 | $128 | ||||||||||||||
Other tax benefits included in income tax expense | 48 | 38 | 32 | ||||||||||||||
Total tax benefits included in income tax expense | 250 | 197 | 160 | ||||||||||||||
Less: Amortization included in income tax expense | 208 | 168 | 137 | ||||||||||||||
Net benefit from affordable housing tax credit investments included in income tax expense | $42 | $29 | $23 |
December 31, | |||||||||||
(in millions) | 2021 | 2020 | |||||||||
Demand | $49,443 | $43,831 | |||||||||
Money market accounts | 47,216 | 48,569 | |||||||||
Checking with interest | 30,409 | 27,204 | |||||||||
Regular savings | 22,030 | 18,044 | |||||||||
Term deposits | 5,263 | 9,516 | |||||||||
Total deposits | $154,361 | $147,164 |
Citizens Financial Group, Inc. | 119 |
(in millions) | |||||
2022 | $4,420 | ||||
2023 | 484 | ||||
2024 | 215 | ||||
2025 | 116 | ||||
2026 | 25 | ||||
2027 and thereafter | 3 | ||||
Total | $5,263 |
(in millions) | |||||
Three months or less | $1,298 | ||||
After three months through six months | 140 | ||||
After six months through twelve months | 154 | ||||
After twelve months | 101 | ||||
Total term deposits | $1,693 |
December 31, | |||||||||||
(in millions) | 2021 | 2020 | |||||||||
Securities sold under agreements to repurchase | $1 | $231 | |||||||||
Other short-term borrowed funds | 73 | 12 | |||||||||
Total short-term borrowed funds | $74 | $243 |
Citizens Financial Group, Inc. | 120 |
December 31, | |||||||||||
(in millions) | 2021 | 2020 | |||||||||
Parent Company: | |||||||||||
2.375% fixed-rate senior unsecured debt, due July 2021(1) | $— | $350 | |||||||||
4.150% fixed-rate subordinated debt, due September 2022(2)(3) | 168 | 182 | |||||||||
3.750% fixed-rate subordinated debt, due July 2024(2)(3) | 90 | 159 | |||||||||
4.023% fixed-rate subordinated debt, due October 2024(2)(3) | 17 | 25 | |||||||||
4.350% fixed-rate subordinated debt, due August 2025(2)(3) | 133 | 193 | |||||||||
4.300% fixed-rate subordinated debt, due December 2025(2)(3) | 336 | 450 | |||||||||
2.850% fixed-rate senior unsecured notes, due July 2026 | 498 | 497 | |||||||||
2.500% fixed-rate senior unsecured notes, due February 2030 | 298 | 297 | |||||||||
3.250% fixed-rate senior unsecured notes, due April 2030 | 745 | 745 | |||||||||
3.750% fixed-rate reset subordinated debt, due February 2031(2) | 69 | — | |||||||||
4.300% fixed-rate reset subordinated debt, due February 2031(2) | 135 | — | |||||||||
4.350% fixed-rate reset subordinated debt, due February 2031(2) | 60 | — | |||||||||
2.638% fixed-rate subordinated debt, due September 2032(3) | 550 | 543 | |||||||||
CBNA’s Global Note Program: | |||||||||||
2.550% senior unsecured notes, due May 2021 | — | 1,003 | |||||||||
3.250% senior unsecured notes, due February 2022 | 700 | 716 | |||||||||
0.845% floating-rate senior unsecured notes, due February 2022(4) | 300 | 299 | |||||||||
0.932% floating-rate senior unsecured notes, due May 2022(4) | 250 | 250 | |||||||||
2.650% senior unsecured notes, due May 2022 | 503 | 510 | |||||||||
3.700% senior unsecured notes, due March 2023 | 512 | 527 | |||||||||
1.170% floating-rate senior unsecured notes, due March 2023(4) | 250 | 249 | |||||||||
2.250% senior unsecured notes, due April 2025 | 746 | 746 | |||||||||
3.750% senior unsecured notes, due February 2026 | 524 | 551 | |||||||||
Additional Borrowings by CBNA and Other Subsidiaries: | |||||||||||
Federal Home Loan Bank advances, 0.852% weighted average rate, due through 2041 | 19 | 19 | |||||||||
Other | 29 | 35 | |||||||||
Total long-term borrowed funds | $6,932 | $8,346 |
Citizens Financial Group, Inc. | 121 |
(in millions) | Parent Company | CBNA and Other Subsidiaries | Consolidated | ||||||||
Year | |||||||||||
2022 | $168 | $1,763 | $1,931 | ||||||||
2023 | — | 765 | 765 | ||||||||
2024 | 107 | 1 | 108 | ||||||||
2025 | 469 | 760 | 1,229 | ||||||||
2026 | 498 | 524 | 1,022 | ||||||||
2027 and thereafter | 1,857 | 20 | 1,877 | ||||||||
Total | $3,099 | $3,833 | $6,932 |
Citizens Financial Group, Inc. | 122 |
December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
(in millions) | Notional Amount(1) | Derivative Assets | Derivative Liabilities | Notional Amount(1) | Derivative Assets | Derivative Liabilities | |||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||
Interest rate contracts | $23,450 | $12 | $2 | $22,300 | $1 | $3 | |||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Interest rate contracts | 142,987 | 680 | 174 | 149,021 | 1,565 | 214 | |||||||||||||||||
Foreign exchange contracts | 21,336 | 263 | 231 | 16,789 | 320 | 291 | |||||||||||||||||
Commodities contracts | 514 | 508 | 505 | 246 | 62 | 61 | |||||||||||||||||
TBA contracts | 7,776 | 8 | 8 | 11,149 | 8 | 65 | |||||||||||||||||
Other contracts | 3,555 | 38 | 2 | 8,051 | 197 | — | |||||||||||||||||
Total derivatives not designated as hedging instruments | 1,497 | 920 | 2,152 | 631 | |||||||||||||||||||
Gross derivative fair values | 1,509 | 922 | 2,153 | 634 | |||||||||||||||||||
Less: Gross amounts offset in the Consolidated Balance Sheets(2) | (235) | (235) | (182) | (182) | |||||||||||||||||||
Less: Cash collateral applied(2) | (58) | (490) | (56) | (324) | |||||||||||||||||||
Total net derivative fair values presented in the Consolidated Balance Sheets | $1,216 | $197 | $1,915 | $128 |
Citizens Financial Group, Inc. | 123 |
Year Ended December 31, | ||||||||||||||||||||
(in millions) | 2021 | 2020 | 2019 | Affected Line Item in the Consolidated Statements of Operations | ||||||||||||||||
Interest rate swaps hedging borrowed funds | ($72) | $65 | $107 | Interest expense - long-term borrowed funds | ||||||||||||||||
Hedged long-term debt attributable to the risk being hedged | 71 | (63) | (107) | Interest expense - long-term borrowed funds | ||||||||||||||||
Interest rate swaps hedging fixed rate loans | — | 17 | (17) | Interest and fees on loans and leases | ||||||||||||||||
Hedged fixed rate loans attributable to the risk being hedged | — | (17) | 17 | Interest and fees on loans and leases | ||||||||||||||||
Interest rate swaps hedging debt securities available for sale | 68 | (104) | 8 | Interest income - investment securities | ||||||||||||||||
Hedged debt securities available for sale attributable to risk being hedged | (68) | 104 | (8) | Interest income - investment securities |
December 31, 2021 | December 31, 2020 | ||||||||||||||||
(in millions) | Debt securities available for sale(1) | Long-term borrowed funds | Debt securities available for sale(1) | Long-term borrowed funds | |||||||||||||
Carrying amount of hedged assets | $6,042 | $— | $10,869 | $— | |||||||||||||
Carrying amount of hedged liabilities | — | 2,239 | — | 3,307 | |||||||||||||
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items | 29 | 42 | 96 | 112 |
Amounts Recognized for the Year Ended December 31, | |||||||||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||||||||
Amount of pre-tax net gains (losses) recognized in OCI | ($66) | $130 | $138 | ||||||||||||||
Amount of pre-tax net gains (losses) reclassified from OCI into interest income | 183 | 184 | (68) | ||||||||||||||
Amount of pre-tax net gains (losses) reclassified from OCI into interest expense | (48) | (35) | 11 |
Citizens Financial Group, Inc. | 124 |
Amounts Recognized in Noninterest Income for the Year Ended December 31, | Affected Line Item in the Consolidated Statements of Operations | |||||||||||||||||||
(in millions) | 2021 | 2020 | 2019 | |||||||||||||||||
Economic hedge type: | ||||||||||||||||||||
Customer interest rate contracts | ($374) | $1,234 | $687 | Foreign exchange and interest rate products | ||||||||||||||||
Derivatives hedging interest rate risk | 401 | (1,188) | (620) | Foreign exchange and interest rate products | ||||||||||||||||
Customer foreign exchange contracts | (207) | 216 | (166) | Foreign exchange and interest rate products | ||||||||||||||||
Derivatives hedging foreign exchange risk | 305 | (263) | 200 | Foreign exchange and interest rate products | ||||||||||||||||
Customer commodity contracts | 779 | (9) | — | Foreign exchange and interest rate products | ||||||||||||||||
Derivatives hedging commodity price risk | (770) | 13 | — | Foreign exchange and interest rate products | ||||||||||||||||
Residential loan commitments | (208) | 179 | 8 | Mortgage banking fees | ||||||||||||||||
Derivatives hedging residential loan commitments and mortgage loans held for sale, at fair value | 152 | (50) | 20 | Mortgage banking fees | ||||||||||||||||
Derivative contracts used to hedge residential MSRs(1) | (150) | 311 | 134 | Mortgage banking fees | ||||||||||||||||
Total | ($72) | $443 | $263 |
Citizens Financial Group, Inc. | 125 |
Year Ended December 31, | |||||||||||||||||||||||
Qualified Plan | Non-Qualified Plan | ||||||||||||||||||||||
(in millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Fair value of plan assets as of January 1 | $1,343 | $1,246 | $— | $— | |||||||||||||||||||
Actual return on plan assets | 125 | 165 | — | — | |||||||||||||||||||
Employer contributions | — | — | 8 | 8 | |||||||||||||||||||
Benefits and administrative expenses paid | (78) | (68) | (8) | (8) | |||||||||||||||||||
Fair value of plan assets as of December 31 | 1,390 | 1,343 | — | — | |||||||||||||||||||
Projected benefit obligation | 1,083 | 1,157 | 99 | 105 | |||||||||||||||||||
Pension asset (obligation) | $307 | $186 | ($99) | ($105) | |||||||||||||||||||
Accumulated benefit obligation | $1,083 | $1,157 | $99 | $105 |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||||||||
Net periodic pension cost (income) | ($31) | ($22) | ($5) | ||||||||||||||
Net actuarial loss (gain) | (74) | 37 | (49) | ||||||||||||||
Amortization of prior service credit | — | — | — | ||||||||||||||
Amortization of net actuarial loss | (17) | (17) | (19) | ||||||||||||||
Settlement | (15) | — | — | ||||||||||||||
Total gain (loss) recognized in other comprehensive income (loss) | (106) | 20 | (68) | ||||||||||||||
Total (loss) gain recognized in net periodic pension cost (income) and other comprehensive income (loss) | ($137) | ($2) | ($73) |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Qualified Plan | Non-Qualified Plan | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Service cost | $3 | $3 | $3 | $— | $— | $— | $3 | $3 | $3 | ||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 31 | 37 | 41 | 3 | 3 | 4 | 34 | 40 | 45 | ||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (85) | (82) | (72) | — | — | — | (85) | (82) | (72) | ||||||||||||||||||||||||||||||||||||||||||||
Amortization of actuarial loss | 14 | 14 | 17 | 3 | 3 | 2 | 17 | 17 | 19 | ||||||||||||||||||||||||||||||||||||||||||||
Settlement | 15 | — | — | — | — | — | 15 | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Net periodic pension (income) cost(1) | ($22) | ($28) | ($11) | $6 | $6 | $6 | ($16) | ($22) | ($5) |
Citizens Financial Group, Inc. | 126 |
(in millions) | |||||
Expected benefit payments by fiscal year ending: | |||||
December 31, 2022 | $70 | ||||
December 31, 2023 | 68 | ||||
December 31, 2024 | 68 | ||||
December 31, 2025 | 69 | ||||
December 31, 2026 | 69 | ||||
December 31, 2027 - 2031 | 339 |
(in millions) | Net Unrealized Gains (Losses) on Derivatives | Net Unrealized Gains (Losses) on Debt Securities | Employee Benefit Plans | Total AOCI | |||||||||||||||||||||||||
Balance at January 1, 2019 | ($143) | ($490) | ($463) | ($1,096) | |||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 103 | 501 | — | 604 | |||||||||||||||||||||||||
Amounts reclassified to the Consolidated Statements of Operations | 43 | (15) | 48 | 76 | |||||||||||||||||||||||||
Net other comprehensive income (loss) | 146 | 486 | 48 | 680 | |||||||||||||||||||||||||
Cumulative effect of change in accounting principle | — | 5 | — | 5 | |||||||||||||||||||||||||
Balance at December 31, 2019 | $3 | $1 | ($415) | ($411) | |||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 97 | 382 | — | 479 | |||||||||||||||||||||||||
Amounts reclassified to the Consolidated Statements of Operations | (111) | (3) | (14) | (128) | |||||||||||||||||||||||||
Net other comprehensive income (loss) | (14) | 379 | (14) | 351 | |||||||||||||||||||||||||
Balance at December 31, 2020 | ($11) | $380 | ($429) | ($60) | |||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (49) | (528) | — | (577) | |||||||||||||||||||||||||
Amounts reclassified to the Consolidated Statements of Operations | (101) | (8) | 81 | (28) | |||||||||||||||||||||||||
Net other comprehensive income (loss) | (150) | (536) | 81 | (605) | |||||||||||||||||||||||||
Balance at December 31, 2021 | ($161) | ($156) | ($348) | ($665) | |||||||||||||||||||||||||
Primary location in the Consolidated Statement of Operations of amounts reclassified from AOCI | Net interest income | Securities gains, net | Other operating expense |
Citizens Financial Group, Inc. | 127 |
December 31, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
(in millions, except per share and share data) | Liquidation value per share | Preferred Shares | Carrying Amount | Preferred Shares | Carrying Amount | |||||||||||||||||||||
Authorized ($25 par value per share) | 100,000,000 | 100,000,000 | ||||||||||||||||||||||||
Issued and outstanding: | ||||||||||||||||||||||||||
Series A | $1,000 | — | $— | 250,000 | $247 | |||||||||||||||||||||
Series B | 1,000 | 300,000 | 296 | 300,000 | 296 | |||||||||||||||||||||
Series C | 1,000 | 300,000 | 297 | 300,000 | 297 | |||||||||||||||||||||
Series D | 1,000 | (1) | 300,000 | (2) | 293 | 300,000 | 293 | |||||||||||||||||||
Series E | 1,000 | (1) | 450,000 | (3) | 437 | 450,000 | 437 | |||||||||||||||||||
Series F | 1,000 | 400,000 | 395 | 400,000 | 395 | |||||||||||||||||||||
Series G | 1,000 | 300,000 | 296 | — | — | |||||||||||||||||||||
Total | 2,050,000 | $2,014 | 2,000,000 | $1,965 |
Citizens Financial Group, Inc. | 128 |
(in millions, except per share and share data) | |||||||||||||||||
Preferred Stock(1) | Issue Date | Number of Shares Issued | Dividend Dates(2) | Annual Per Share Dividend Rate | Optional Redemption Date(3) | ||||||||||||
Series B | May 24, 2018 | 300,000 | Semi-annually beginning January 6, 2019 until July 6, 2023 | 6.000% until July 6, 2023 | July 6, 2023 | ||||||||||||
Quarterly beginning October 6, 2023 | 3 Mo. LIBOR plus 3.003% beginning July 6, 2023 | ||||||||||||||||
Series C | October 25, 2018 | 300,000 | Quarterly beginning January 6, 2019 until April 6, 2024 | 6.375% until April 6, 2024 | April 6, 2024 | ||||||||||||
Quarterly beginning July 6, 2024 | 3 Mo. LIBOR plus 3.157% beginning April 6, 2024 | ||||||||||||||||
Series D | January 29, 2019 | 300,000(4) | Quarterly beginning April 6, 2019 until April 6, 2024 | 6.350% until April 6, 2024 | April 6, 2024 | ||||||||||||
Quarterly beginning July 6, 2024 | 3 Mo. LIBOR plus 3.642% beginning April 6, 2024 | ||||||||||||||||
Series E | October 28, 2019 | 450,000(5) | Quarterly beginning January 6, 2020 | 5.000% | January 6, 2025 | ||||||||||||
Series F | June 4, 2020 | 400,000 | Quarterly beginning October 6, 2020 until October 6, 2025 | 5.650% until October 6, 2025 | October 6, 2025 | ||||||||||||
Quarterly beginning January 6, 2026 | 5 Yr. US Treasury rate plus 5.313% beginning October 6, 2025 | ||||||||||||||||
Series G | June 11, 2021 | 300,000 | Quarterly beginning October 6, 2021 until October 6, 2026 | 4.000% until October 6, 2026 | October 6, 2026 | ||||||||||||
Quarterly beginning January 6, 2027 | 5 Yr. US Treasury rate plus 3.215% beginning October 6, 2026 |
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||
(in millions, except per share data) | Dividends Declared per Share | Dividends Declared | Dividends Paid | Dividends Declared per Share | Dividends Declared | Dividends Paid | Dividends Declared per Share | Dividends Declared | Dividends Paid | |||||||||||||||||||||||||||||
Common stock | $1.56 | $670 | $670 | $1.56 | $672 | $672 | $1.36 | $617 | $617 | |||||||||||||||||||||||||||||
Preferred stock | ||||||||||||||||||||||||||||||||||||||
Series A | $20.99 | $5 | $8 | $62.59 | $15 | $13 | $55.00 | $14 | $14 | |||||||||||||||||||||||||||||
Series B | 60.00 | 18 | 18 | 60.00 | 18 | 18 | 60.00 | 18 | 20 | |||||||||||||||||||||||||||||
Series C | 63.75 | 19 | 19 | 63.75 | 19 | 19 | 63.75 | 19 | 18 | |||||||||||||||||||||||||||||
Series D | 63.50 | 18 | 18 | 63.50 | 19 | 19 | 59.45 | 18 | 13 | |||||||||||||||||||||||||||||
Series E | 50.00 | 23 | 23 | 50.00 | 23 | 21 | 9.44 | 4 | — | |||||||||||||||||||||||||||||
Series F | 56.50 | 23 | 23 | 33.27 | 13 | 8 | — | — | — | |||||||||||||||||||||||||||||
Series G | 22.78 | 7 | 4 | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Total preferred stock | $113 | $113 | $107 | $98 | $73 | $65 | ||||||||||||||||||||||||||||||||
Citizens Financial Group, Inc. | 129 |
Citizens Financial Group, Inc. | 130 |
Number of Options | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (in millions) | ||||||||||||||||||||
Outstanding at January 1. 2021 | — | $— | — | $— | |||||||||||||||||||
Assumed | 249,861 | 19.45 | — | — | |||||||||||||||||||
Granted | — | — | — | — | |||||||||||||||||||
Exercised | (4,000) | 19.45 | — | — | |||||||||||||||||||
Forfeited or expired | — | — | — | — | |||||||||||||||||||
Outstanding at December 31, 2021 | 245,861 | 19.45 | 3.1 | 7 | |||||||||||||||||||
Exercisable at December 31, 2021 | 34,856 | $19.45 | 3.1 | $1 |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Units | Weighted-Average Grant Price | Units | Weighted-Average Grant Price | Units | Weighted-Average Grant Price | ||||||||||||||||||||||||||||||
Outstanding, January 1 | 3,496,231 | $34.37 | 3,000,224 | $36.71 | 2,893,281 | $34.04 | |||||||||||||||||||||||||||||
Assumed | 82,013 | 49.95 | — | — | — | — | |||||||||||||||||||||||||||||
Granted | 1,417,370 | 44.97 | 1,947,902 | 32.64 | 1,677,167 | 36.21 | |||||||||||||||||||||||||||||
Vested & Distributed | (1,400,722) | 38.88 | (1,384,091) | 38.59 | (1,518,836) | 32.21 | |||||||||||||||||||||||||||||
Forfeited | (91,936) | 35.00 | (67,804) | 35.89 | (51,388) | 38.29 | |||||||||||||||||||||||||||||
Outstanding, December 31 | 3,502,956 | $38.23 | 3,496,231 | $34.37 | 3,000,224 | $36.71 |
Citizens Financial Group, Inc. | 131 |
December 31, | |||||||||||
(in millions) | 2021 | 2020 | |||||||||
Commitments to extend credit | $84,206 | $74,160 | |||||||||
Letters of credit | 1,998 | 2,239 | |||||||||
Risk participation agreements | 39 | 98 | |||||||||
Loans sold with recourse | 82 | 54 | |||||||||
Marketing rights | 26 | 29 | |||||||||
Total | $86,351 | $76,580 |
Citizens Financial Group, Inc. | 132 |
Citizens Financial Group, Inc. | 133 |
December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
(in millions) | Aggregate Fair Value | Aggregate Unpaid Principal | Aggregate Fair Value Greater (Less) Than Aggregate Unpaid Principal | Aggregate Fair Value | Aggregate Unpaid Principal | Aggregate Fair Value Greater (Less) Than Aggregate Unpaid Principal | |||||||||||||||||
Residential mortgage loans held for sale, at fair value | $2,657 | $2,591 | $66 | $3,416 | $3,260 | $156 | |||||||||||||||||
Commercial and industrial, and commercial real estate loans held for sale, at fair value | 76 | 79 | (3) | 148 | 153 | (5) |
Citizens Financial Group, Inc. | 134 |
Citizens Financial Group, Inc. | 135 |
Citizens Financial Group, Inc. | 136 |
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||
Debt securities available for sale: | ||||||||||||||
Mortgage-backed securities | $24,847 | $— | $24,847 | $— | ||||||||||
Collateralized loan obligations | 1,207 | — | 1,207 | — | ||||||||||
State and political subdivisions | 2 | — | 2 | — | ||||||||||
U.S. Treasury and other | 11 | 11 | — | — | ||||||||||
Total debt securities available for sale | 26,067 | 11 | 26,056 | — | ||||||||||
Loans held for sale, at fair value: | ||||||||||||||
Residential loans held for sale | 2,657 | — | 2,657 | — | ||||||||||
Commercial loans held for sale | 76 | — | 76 | — | ||||||||||
Total loans held for sale, at fair value | 2,733 | — | 2,733 | — | ||||||||||
Mortgage servicing rights | 1,029 | — | — | 1,029 | ||||||||||
Derivative assets: | ||||||||||||||
Interest rate contracts | 692 | — | 692 | — | ||||||||||
Foreign exchange contracts | 263 | — | 263 | — | ||||||||||
Commodities contracts | 508 | — | 508 | — | ||||||||||
TBA contracts | 8 | — | 8 | — | ||||||||||
Other contracts | 38 | — | — | 38 | ||||||||||
Total derivative assets | 1,509 | — | 1,471 | 38 | ||||||||||
Equity securities, at fair value(1) | 102 | 95 | 7 | — | ||||||||||
Total assets | $31,440 | $106 | $30,267 | $1,067 | ||||||||||
Derivative liabilities: | ||||||||||||||
Interest rate contracts | $176 | $— | $176 | $— | ||||||||||
Foreign exchange contracts | 231 | — | 231 | — | ||||||||||
Commodities contracts | 505 | — | 505 | — | ||||||||||
TBA contracts | 8 | — | 8 | — | ||||||||||
Other contracts | 2 | — | 2 | — | ||||||||||
Total derivative liabilities | 922 | — | 922 | — | ||||||||||
Total liabilities | $922 | $— | $922 | $— |
Citizens Financial Group, Inc. | 137 |
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||
Debt securities available for sale: | ||||||||||||||
Mortgage-backed securities | $22,928 | $— | $22,928 | $— | ||||||||||
State and political subdivisions | 3 | — | 3 | — | ||||||||||
U.S. Treasury and other | 11 | 11 | — | — | ||||||||||
Total debt securities available for sale | 22,942 | 11 | 22,931 | — | ||||||||||
Loans held for sale, at fair value: | ||||||||||||||
Residential loans held for sale | 3,416 | — | 3,416 | — | ||||||||||
Commercial loans held for sale | 148 | — | 148 | — | ||||||||||
Total loans held for sale, at fair value | 3,564 | — | 3,564 | — | ||||||||||
Mortgage servicing rights | 658 | — | — | 658 | ||||||||||
Derivative assets: | ||||||||||||||
Interest rate contracts | 1,566 | — | 1,566 | — | ||||||||||
Foreign exchange contracts | 320 | — | 320 | — | ||||||||||
Commodities contracts | 62 | — | 62 | — | ||||||||||
TBA contracts | 8 | — | 8 | — | ||||||||||
Other contracts | 197 | — | — | 197 | ||||||||||
Total derivative assets | 2,153 | — | 1,956 | 197 | ||||||||||
Equity securities, at fair value | 66 | 66 | — | — | ||||||||||
Total assets | $29,383 | $77 | $28,451 | $855 | ||||||||||
Derivative liabilities: | ||||||||||||||
Interest rate contracts | $217 | $— | $217 | $— | ||||||||||
Foreign exchange contracts | 291 | — | 291 | — | ||||||||||
Commodities contracts | 61 | — | 61 | — | ||||||||||
TBA contracts | 65 | — | 65 | — | ||||||||||
Total derivative liabilities | 634 | — | 634 | — | ||||||||||
Total liabilities | $634 | $— | $634 | $— |
For the Year Ended December 31, | |||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||
(in millions) | Mortgage Servicing Rights | Other Derivative Contracts | Mortgage Servicing Rights | Asset-Backed Securities | Other Derivative Contracts | ||||||||||||||||||||||||
Beginning balance | $658 | $197 | $642 | $— | $19 | ||||||||||||||||||||||||
Transfers upon election of fair value method(1) | — | — | 190 | — | — | ||||||||||||||||||||||||
Beginning balance, adjusted | 658 | 197 | 832 | — | 19 | ||||||||||||||||||||||||
Purchases | — | — | — | 813 | — | ||||||||||||||||||||||||
Issuances | 419 | 377 | 324 | — | 900 | ||||||||||||||||||||||||
Settlements(2) | (212) | (328) | (196) | — | (1,133) | ||||||||||||||||||||||||
Changes in fair value during the period recognized in earnings(3) | 164 | (208) | (302) | — | 411 | ||||||||||||||||||||||||
Transfer from AFS to HTM(4) | — | — | — | (813) | — | ||||||||||||||||||||||||
Ending balance | $1,029 | $38 | $658 | $— | $197 |
Citizens Financial Group, Inc. | 138 |
As of December 31, 2021 | |||||||||||
Valuation Technique | Unobservable Input | Range (Weighted Average) | |||||||||
Mortgage servicing rights | Discounted Cash Flow | Constant prepayment rate | 9.40-26.32% CPR (10.70% CPR) | ||||||||
Option adjusted spread | 370-1,228 bps (596 bps) | ||||||||||
Other derivative contracts | Internal Model | Pull through rate | 9.39-100.00% (77.51%) | ||||||||
MSR value | (17.00)-168.75 bps (96.13 bps) |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||||||||
Collateral-dependent loans | ($27) | ($82) | ($34) |
December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Collateral-dependent loans | $645 | $— | $645 | $— | $758 | $— | $758 | $— |
December 31, 2021 | |||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||
(in millions) | Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||||||
Debt securities held to maturity | $2,242 | $2,289 | $— | $— | $1,505 | $1,557 | $737 | $732 | |||||||||||||||||||||||||||
Other loans held for sale | 735 | 735 | — | — | — | — | 735 | 735 | |||||||||||||||||||||||||||
Loans and leases | 128,163 | 128,156 | — | — | 645 | 645 | 127,518 | 127,511 | |||||||||||||||||||||||||||
Other assets | 624 | 624 | — | — | 609 | 609 | 15 | 15 | |||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||
Deposits | 154,361 | 154,366 | — | — | 154,361 | 154,366 | — | — | |||||||||||||||||||||||||||
Short-term borrowed funds | 74 | 74 | — | — | 74 | 74 | — | — | |||||||||||||||||||||||||||
Long-term borrowed funds | 6,932 | 7,188 | — | — | 6,932 | 7,188 | — | — |
Citizens Financial Group, Inc. | 139 |
December 31, 2020 | |||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||
(in millions) | Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||||||
Debt securities held to maturity | $3,235 | $3,357 | $— | $— | $2,342 | $2,464 | $893 | $893 | |||||||||||||||||||||||||||
Other loans held for sale | 439 | 439 | — | — | — | — | 439 | 439 | |||||||||||||||||||||||||||
Loans and leases | 123,090 | 123,678 | — | — | 758 | 758 | 122,332 | 122,920 | |||||||||||||||||||||||||||
Other assets | 604 | 604 | — | — | 596 | 596 | 8 | 8 | |||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||
Deposits | 147,164 | 147,223 | — | — | 147,164 | 147,223 | — | — | |||||||||||||||||||||||||||
Short-term borrowed funds | 243 | 243 | — | — | 243 | 243 | — | — | |||||||||||||||||||||||||||
Long-term borrowed funds | 8,346 | 8,850 | — | — | 8,346 | 8,850 | — | — |
Year Ended December 31, 2021 | ||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | ||||||||||
Service charges and fees | $302 | $105 | $— | $407 | ||||||||||
Card fees | 216 | 32 | — | 248 | ||||||||||
Capital markets fees | — | 419 | — | 419 | ||||||||||
Trust and investment services fees | 239 | — | — | 239 | ||||||||||
Other banking fees | — | 12 | — | 12 | ||||||||||
Total revenue from contracts with customers | $757 | $568 | $— | $1,325 | ||||||||||
Total revenue from other sources | 466 | 241 | 103 | 810 | ||||||||||
Total noninterest income | $1,223 | $809 | $103 | $2,135 |
Year Ended December 31, 2020 | ||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | ||||||||||
Service charges and fees | $301 | $100 | $— | $401 | ||||||||||
Card fees | 185 | 31 | — | 216 | ||||||||||
Capital markets fees | — | 249 | — | 249 | ||||||||||
Trust and investment services fees | 203 | — | — | 203 | ||||||||||
Other banking fees | 1 | 10 | — | 11 | ||||||||||
Total revenue from contracts with customers | $690 | $390 | $— | $1,080 | ||||||||||
Total revenue from other sources | 965 | 205 | 69 | 1,239 | ||||||||||
Total noninterest income | $1,655 | $595 | $69 | $2,319 |
Citizens Financial Group, Inc. | 140 |
Year Ended December 31, 2019 | ||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | ||||||||||
Service charges and fees | $400 | $103 | $— | $503 | ||||||||||
Card fees | 215 | 39 | — | 254 | ||||||||||
Capital markets fees | — | 202 | — | 202 | ||||||||||
Trust and investment services fees | 202 | — | — | 202 | ||||||||||
Other banking fees | 1 | 10 | — | 11 | ||||||||||
Total revenue from contracts with customers | $818 | $354 | $— | $1,172 | ||||||||||
Total revenue from other sources | 338 | 253 | 114 | 705 | ||||||||||
Total noninterest income | $1,156 | $607 | $114 | $1,877 |
Citizens Financial Group, Inc. | 141 |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||||||||
Marketing | $111 | $100 | $112 | ||||||||||||||
Other | 300 | 319 | 364 | ||||||||||||||
Other operating expense | $411 | $419 | $476 |
Citizens Financial Group, Inc. | 142 |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||||||||
Income tax expense | $658 | $241 | $460 | ||||||||||||||
Tax effect of changes in OCI | (199) | 112 | 225 | ||||||||||||||
Total comprehensive income tax expense | $459 | $353 | $685 |
(in millions) | Current | Deferred | Total | ||||||||
Year Ended December 31, 2021 | |||||||||||
U.S. federal | $871 | ($345) | $526 | ||||||||
State and local | 216 | (84) | 132 | ||||||||
Total | $1,087 | ($429) | $658 | ||||||||
Year Ended December 31, 2020 | |||||||||||
U.S. federal | $377 | ($181) | $196 | ||||||||
State and local | 102 | (57) | 45 | ||||||||
Total | $479 | ($238) | $241 | ||||||||
Year Ended December 31, 2019 | |||||||||||
U.S. federal | $323 | $64 | $387 | ||||||||
State and local | 73 | — | 73 | ||||||||
Total | $396 | $64 | $460 |
Year Ended December 31, | ||||||||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||||||||
(in millions, except ratio data) | Amount | Rate | Amount | Rate | Amount | Rate | ||||||||||||||||||||
U.S. federal income tax expense and tax rate | $625 | 21.0 | % | $273 | 21.0 | % | $473 | 21.0 | % | |||||||||||||||||
Increase (decrease) resulting from: | ||||||||||||||||||||||||||
State and local income taxes (net of federal benefit) | 126 | 4.2 | 54 | 4.2 | 73 | 3.2 | ||||||||||||||||||||
Bank-owned life insurance | (14) | (0.5) | (12) | (0.9) | (12) | (0.5) | ||||||||||||||||||||
Tax-exempt interest | (7) | (0.2) | (10) | (0.7) | (15) | (0.7) | ||||||||||||||||||||
Tax advantaged investments (including related credits) | (95) | (3.2) | (68) | (5.3) | (50) | (2.3) | ||||||||||||||||||||
Other tax credits | (7) | (0.2) | (6) | (0.5) | (10) | (0.4) | ||||||||||||||||||||
Adjustments for uncertain tax positions | 3 | 0.1 | (1) | (0.1) | — | — | ||||||||||||||||||||
Non-deductible FDIC premiums | 14 | 0.5 | 14 | 1.1 | 13 | 0.6 | ||||||||||||||||||||
Legacy tax matters | — | — | (4) | (0.3) | (19) | (0.8) | ||||||||||||||||||||
Other | 13 | 0.4 | 1 | — | 7 | 0.3 | ||||||||||||||||||||
Total income tax expense and tax rate | $658 | 22.1 | % | $241 | 18.5 | % | $460 | 20.4 | % |
Citizens Financial Group, Inc. | 143 |
December 31, | |||||||||||
(in millions) | 2021 | 2020 | |||||||||
Deferred tax assets: | |||||||||||
Other comprehensive income | $227 | $29 | |||||||||
Allowance for credit losses | 448 | 622 | |||||||||
State net operating loss carryforwards | 50 | 71 | |||||||||
Accrued expenses not currently deductible | 676 | 77 | |||||||||
Investment and other tax credit carryforwards | 110 | 99 | |||||||||
Total deferred tax assets | 1,511 | 898 | |||||||||
Valuation allowance | (103) | (98) | |||||||||
Deferred tax assets, net of valuation allowance | 1,408 | 800 | |||||||||
Deferred tax liabilities: | |||||||||||
Leasing transactions | 331 | 459 | |||||||||
Amortization of intangibles | 379 | 376 | |||||||||
Depreciation | 256 | 262 | |||||||||
Pension and other employee compensation plans | 132 | 107 | |||||||||
Partnerships | 95 | 76 | |||||||||
Deferred Income | 85 | 62 | |||||||||
MSRs | 130 | 87 | |||||||||
Total deferred tax liabilities | 1,408 | 1,429 | |||||||||
Net deferred tax liability | $— | $629 |
Citizens Financial Group, Inc. | 144 |
December 31, | |||||||||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||||||||
Balance at the beginning of the year | $4 | $5 | $8 | ||||||||||||||
Gross increase for tax positions related to current year | 1 | — | — | ||||||||||||||
Gross increase for tax positions related to prior years | 3 | — | — | ||||||||||||||
Gross decrease for tax positions related to prior years | — | — | (2) | ||||||||||||||
Decrease for tax positions as a result of the lapse of the statutes of limitations | (1) | (1) | (1) | ||||||||||||||
Decrease for tax positions related to settlements with taxing authorities | — | — | — | ||||||||||||||
Balance at end of year | $7 | $4 | $5 |
Year Ended December 31, | |||||||||||||||||
(in millions, except share and per share data) | 2021 | 2020 | 2019 | ||||||||||||||
Numerator (basic and diluted): | |||||||||||||||||
Net income | $2,319 | $1,057 | $1,791 | ||||||||||||||
Less: Preferred stock dividends | 113 | 107 | 73 | ||||||||||||||
Net income available to common stockholders | $2,206 | $950 | $1,718 | ||||||||||||||
Denominator: | |||||||||||||||||
Weighted-average common shares outstanding - basic | 425,669,451 | 427,062,537 | 449,731,453 | ||||||||||||||
Dilutive common shares: share-based awards | 1,766,367 | 1,095,243 | 1,482,248 | ||||||||||||||
Weighted-average common shares outstanding - diluted | 427,435,818 | 428,157,780 | 451,213,701 | ||||||||||||||
Earnings per common share: | |||||||||||||||||
Basic | $5.18 | $2.22 | $3.82 | ||||||||||||||
Diluted(1) | 5.16 | 2.22 | 3.81 |
Citizens Financial Group, Inc. | 145 |
Actual | Minimum Capital Adequacy | ||||||||||||||||
(in millions, except ratio data) | Amount | Ratio | Amount | Ratio(1) | |||||||||||||
As of December 31, 2021 | |||||||||||||||||
CET1 capital | $15,656 | 9.9 | % | $12,548 | 7.9 | % | |||||||||||
Tier 1 capital | 17,670 | 11.1 | 14,930 | 9.4 | |||||||||||||
Total capital | 20,244 | 12.7 | 18,107 | 11.4 | |||||||||||||
Tier 1 leverage | 17,670 | 9.7 | 7,272 | 4.0 | |||||||||||||
As of December 31, 2020 | |||||||||||||||||
CET1 capital | $14,607 | 10.0 | % | $11,596 | 7.9 | % | |||||||||||
Tier 1 capital | 16,572 | 11.3 | 13,797 | 9.4 | |||||||||||||
Total capital | 19,602 | 13.4 | 16,733 | 11.4 | |||||||||||||
Tier 1 leverage | 16,572 | 9.4 | 7,015 | 4.0 |
Citizens Financial Group, Inc. | 146 |
Citizens Financial Group, Inc. | 147 |
As of and for the Year Ended December 31, 2021 | |||||||||||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | |||||||||||||||||||
Net interest income | $3,562 | $1,706 | ($756) | $4,512 | |||||||||||||||||||
Noninterest income | 1,223 | 809 | 103 | 2,135 | |||||||||||||||||||
Total revenue | 4,785 | 2,515 | (653) | 6,647 | |||||||||||||||||||
Noninterest expense | 2,987 | 973 | 121 | 4,081 | |||||||||||||||||||
Profit (loss) before provision for credit losses | 1,798 | 1,542 | (774) | 2,566 | |||||||||||||||||||
Provision for credit losses | 185 | 156 | (752) | (411) | |||||||||||||||||||
Income (loss) before income tax expense (benefit) | 1,613 | 1,386 | (22) | 2,977 | |||||||||||||||||||
Income tax expense (benefit) | 410 | 300 | (52) | 658 | |||||||||||||||||||
Net income (loss) | $1,203 | $1,086 | $30 | $2,319 | |||||||||||||||||||
Total average assets | $75,509 | $57,617 | $51,980 | $185,106 |
As of and for the Year Ended December 31, 2020 | |||||||||||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | |||||||||||||||||||
Net interest income | $3,311 | $1,643 | ($368) | $4,586 | |||||||||||||||||||
Noninterest income | 1,655 | 595 | 69 | 2,319 | |||||||||||||||||||
Total revenue | 4,966 | 2,238 | (299) | 6,905 | |||||||||||||||||||
Noninterest expense | 2,964 | 860 | 167 | 3,991 | |||||||||||||||||||
Profit (loss) before provision for credit losses | 2,002 | 1,378 | (466) | 2,914 | |||||||||||||||||||
Provision for credit losses | 288 | 398 | 930 | 1,616 | |||||||||||||||||||
Income (loss) before income tax expense (benefit) | 1,714 | 980 | (1,396) | 1,298 | |||||||||||||||||||
Income tax expense (benefit) | 429 | 206 | (394) | 241 | |||||||||||||||||||
Net income (loss) | $1,285 | $774 | ($1,002) | $1,057 | |||||||||||||||||||
Total average assets | $72,022 | $60,839 | $43,581 | $176,442 |
Citizens Financial Group, Inc. | 148 |
As of and for the Year Ended December 31, 2019 | |||||||||||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | |||||||||||||||||||
Net interest income | $3,182 | $1,466 | ($34) | $4,614 | |||||||||||||||||||
Noninterest income | 1,156 | 607 | 114 | 1,877 | |||||||||||||||||||
Total revenue | 4,338 | 2,073 | 80 | 6,491 | |||||||||||||||||||
Noninterest expense | 2,851 | 858 | 138 | 3,847 | |||||||||||||||||||
Profit (loss) before provision for credit losses | 1,487 | 1,215 | (58) | 2,644 | |||||||||||||||||||
Provision for credit losses | 325 | 97 | (29) | 393 | |||||||||||||||||||
Income (loss) before income tax expense (benefit) | 1,162 | 1,118 | (29) | 2,251 | |||||||||||||||||||
Income tax expense (benefit) | 287 | 248 | (75) | 460 | |||||||||||||||||||
Net income (loss) | $875 | $870 | $46 | $1,791 | |||||||||||||||||||
Total average assets | $66,240 | $55,947 | $39,989 | $162,176 |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||||||||
OPERATING INCOME: | |||||||||||||||||
Income from consolidated subsidiaries and excluding equity in undistributed earnings: | |||||||||||||||||
Dividends from banking subsidiaries | $1,120 | $900 | $1,130 | ||||||||||||||
Interest | 35 | 42 | 48 | ||||||||||||||
Management and service fees | 64 | 54 | 42 | ||||||||||||||
Income from nonbank subsidiaries and excluding equity in undistributed earnings: | |||||||||||||||||
Dividends from nonbank subsidiaries | 57 | 40 | 8 | ||||||||||||||
Interest | 2 | 4 | 4 | ||||||||||||||
All other operating income | 1 | 1 | 1 | ||||||||||||||
Total operating income | 1,279 | 1,041 | 1,233 | ||||||||||||||
OPERATING EXPENSE: | |||||||||||||||||
Salaries and employee benefits | 36 | 27 | 35 | ||||||||||||||
Interest expense | 119 | 120 | 87 | ||||||||||||||
All other expenses | 28 | 30 | 27 | ||||||||||||||
Total operating expense | 183 | 177 | 149 | ||||||||||||||
Income before taxes and undistributed income | 1,096 | 864 | 1,084 | ||||||||||||||
Income taxes | (16) | (16) | (10) | ||||||||||||||
Income before undistributed earnings of subsidiaries | 1,112 | 880 | 1,094 | ||||||||||||||
Equity in undistributed earnings of subsidiaries: | |||||||||||||||||
Bank | 1,188 | 170 | 682 | ||||||||||||||
Nonbank | 19 | 7 | 15 | ||||||||||||||
Net income | $2,319 | $1,057 | $1,791 | ||||||||||||||
Other comprehensive income (loss), net of income taxes: | |||||||||||||||||
Net pension plan activity arising during the period | $4 | ($3) | ($5) | ||||||||||||||
Net unrealized derivative instrument gains (losses) arising during the period | 1 | 2 | 2 | ||||||||||||||
Other comprehensive income (loss) activity of the Parent Company, net of income taxes | 5 | (1) | (3) | ||||||||||||||
Other comprehensive income activity of Bank subsidiaries, net of income taxes | (610) | 352 | 683 | ||||||||||||||
Total other comprehensive income (loss), net of income taxes | (605) | 351 | 680 | ||||||||||||||
Total comprehensive income | $1,714 | $1,408 | $2,471 |
Citizens Financial Group, Inc. | 149 |
(in millions) | December 31, 2021 | December 31, 2020 | |||||||||
ASSETS: | |||||||||||
Cash and due from banks | $2,266 | $2,680 | |||||||||
Loans and advances to: | |||||||||||
Bank subsidiary | 1,148 | 1,148 | |||||||||
Nonbank subsidiaries | 150 | 105 | |||||||||
Investments in subsidiaries: | |||||||||||
Bank subsidiary | 22,742 | 22,164 | |||||||||
Nonbank subsidiaries | 325 | 106 | |||||||||
Other assets | 140 | 152 | |||||||||
TOTAL ASSETS | $26,771 | $26,355 | |||||||||
LIABILITIES: | |||||||||||
Long-term borrowed funds due to unaffiliated companies | $3,099 | $3,441 | |||||||||
Other liabilities | 252 | 241 | |||||||||
TOTAL LIABILITIES | 3,351 | 3,682 | |||||||||
TOTAL STOCKHOLDERS’ EQUITY | 23,420 | 22,673 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $26,771 | $26,355 |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||||||||
OPERATING ACTIVITIES | |||||||||||||||||
Net income | $2,319 | $1,057 | $1,791 | ||||||||||||||
Adjustments to reconcile net income to net change in cash due to operating activities: | |||||||||||||||||
Deferred income taxes | — | 17 | (8) | ||||||||||||||
Equity in undistributed earnings of subsidiaries | (1,207) | (177) | (697) | ||||||||||||||
Increase (decrease) in other liabilities | 34 | 43 | 50 | ||||||||||||||
(Increase) decrease in other assets | 12 | (41) | 7 | ||||||||||||||
Other operating, net | 67 | 48 | 58 | ||||||||||||||
Net change due to operating activities | 1,225 | 947 | 1,201 | ||||||||||||||
INVESTING ACTIVITIES | |||||||||||||||||
Investments in and advances to subsidiaries | (196) | (190) | (105) | ||||||||||||||
Repayment of investments in and advances to subsidiaries | 125 | 205 | 55 | ||||||||||||||
Acquisitions, net of cash acquired | (165) | — | — | ||||||||||||||
Other investing, net | (1) | (1) | (1) | ||||||||||||||
Net change due to investing activities | (237) | 14 | (51) | ||||||||||||||
FINANCING ACTIVITIES | |||||||||||||||||
Proceeds from issuance of long-term borrowed funds | — | 1,053 | 500 | ||||||||||||||
Repayments of long-term borrowed funds | (350) | (12) | — | ||||||||||||||
Treasury stock purchased | (295) | (270) | (1,220) | ||||||||||||||
Net proceeds from issuance of preferred stock | 296 | 395 | 730 | ||||||||||||||
Redemption of preferred stock | (250) | — | — | ||||||||||||||
Dividends declared and paid to common stockholders | (670) | (672) | (617) | ||||||||||||||
Dividends declared and paid to preferred stockholders | (113) | (98) | (65) | ||||||||||||||
Other financing, net | (20) | (95) | (21) | ||||||||||||||
Net change due to financing activities | (1,402) | 301 | (693) | ||||||||||||||
Net change in cash and due from banks | (414) | 1,262 | 457 | ||||||||||||||
Cash and due from banks at beginning of year | 2,680 | 1,418 | 961 | ||||||||||||||
Cash and due from banks at end of year | $2,266 | $2,680 | $1,418 |
Citizens Financial Group, Inc. | 150 |
Citizens Financial Group, Inc. | 151 |
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (#)(2) | Weighted-average exercise price of outstanding options, warrants and rights ($)(3) | Number of securities remaining available (excluding securities reflected in first column) (#)(4) | ||||||||
Equity compensation plans approved by security holders | 3,462,593 | — | 49,459,410 | ||||||||
Equity compensation plans not approved by security holders | — | — | — | ||||||||
Total(1) | 3,462,593 | — | 49,459,410 |
Citizens Financial Group, Inc. | 152 |
Citizens Financial Group, Inc. | 153 |
Citizens Financial Group, Inc. | 154 |
Citizens Financial Group, Inc. | 155 |
Citizens Financial Group, Inc. | 156 |
CITIZENS FINANCIAL GROUP, INC. | |||||
(Registrant) | |||||
By: | /s/ Bruce Van Saun | ||||
Name: Bruce Van Saun | |||||
Title: Chairman of the Board and Chief Executive Officer | |||||
(Principal Executive Officer) | |||||
Citizens Financial Group, Inc. | 157 |
Signature | Title | Date | |||||||||||||||
/s/ Bruce Van Saun | |||||||||||||||||
Bruce Van Saun | Chairman of the Board and Chief Executive Officer | February 23, 2022 | |||||||||||||||
(Principal Executive Officer and Director) | |||||||||||||||||
/s/ John F. Woods | |||||||||||||||||
John F. Woods | Vice Chairman and Chief Financial Officer | February 23, 2022 | |||||||||||||||
(Principal Financial Officer) | |||||||||||||||||
/s/ C. Jack Read | |||||||||||||||||
C. Jack Read | Executive Vice President, Chief Accounting Officer and Controller | February 23, 2022 | |||||||||||||||
(Principal Accounting Officer) | |||||||||||||||||
/s/ Lee Alexander | |||||||||||||||||
Lee Alexander | Director | February 23, 2022 | |||||||||||||||
/s/ Christine M. Cumming | |||||||||||||||||
Christine M. Cumming | Director | February 23, 2022 | |||||||||||||||
/s/ William P. Hankowsky | |||||||||||||||||
William P. Hankowsky | Director | February 23, 2022 | |||||||||||||||
/s/ Leo I. Higdon, Jr. | |||||||||||||||||
Leo I. Higdon, Jr. | Director | February 23, 2022 | |||||||||||||||
/s/ Edward J. Kelly III | |||||||||||||||||
Edward J. Kelly III | Director | February 23, 2022 | |||||||||||||||
/s/ Charles J. Koch | |||||||||||||||||
Charles J. Koch | Director | February 23, 2022 | |||||||||||||||
/s/ Robert G. Leary | |||||||||||||||||
Robert G. Leary | Director | February 23, 2022 | |||||||||||||||
/s/ Terrance J. Lillis | |||||||||||||||||
Terrance J. Lillis | Director | February 23, 2022 | |||||||||||||||
/s/ Shivan S. Subramaniam | |||||||||||||||||
Shivan S. Subramaniam | Director | February 23, 2022 | |||||||||||||||
/s/ Christopher J. Swift | |||||||||||||||||
Christopher J. Swift | Director | February 23, 2022 | |||||||||||||||
/s/ Wendy A. Watson | |||||||||||||||||
Wendy A. Watson | Director | February 23, 2022 | |||||||||||||||
/s/ Marita Zuraitis | |||||||||||||||||
Marita Zuraitis | Director | February 23, 2022 |
Citizens Financial Group, Inc. | 158 |
David Lindenauer Executive Vice President and Treasurer Citizens Financial Group, Inc. 1 Citizens Plaza Providence, Rhode Island 02903 |
Subject: | Citizens Financial Group, Inc. Annual Report on Form 10-K for the fiscal year ended December 31, 2021 – File No. 001-36636 |
/s/ David Lindenauer | |||||
David Lindenauer | |||||
Executive Vice President and Treasurer |
Name of Subsidiary | Jurisdiction of Organization | ||||
1215 Financial Center Associates, Ltd. | OH | ||||
CFG Service Corp. | DE | ||||
Citizens Asset Finance, Inc. | NY | ||||
Citizens Bank, National Association | United States | ||||
Citizens Capital Markets, Inc. | MA | ||||
Citizens Charitable Foundation | RI | ||||
Citizens Funding Corp. | NH | ||||
Citizens Insurance Holdings, Inc. | RI | ||||
Citizens One Community Development Corporation | NY | ||||
Citizens One NMTC CDE Corp. | DE | ||||
Citizens One NMTC CDE, LLC II | DE | ||||
Citizens One NMTC CDE, LLC III | DE | ||||
Citizens One NMTC CDE, LLC IV | DE | ||||
Citizens One NMTC CDE, LLC V | DE | ||||
Citizens RI Investment Corp. IV | RI | ||||
Citizens Securities, Inc. | RI | ||||
Citizens Ventures, Incorporated | MA | ||||
Clarfeld Financial Advisors, LLC | DE | ||||
Connecticut Realty Investors, Inc. | CT | ||||
CSB Investment Corp. | RI | ||||
Estate Preservation Services, LLC | NY | ||||
Harvest Capital Strategies Holdings LLC | DE | ||||
Harvest Capital Strategies LLC | DE | ||||
Harvest Enterprise GP I, LLC | DE | ||||
Harvest Growth Capital Manager LLC | DE | ||||
HCAP Advisors LLC | DE | ||||
HCS Strategic Investments LLC | DE | ||||
HIC-JMP RP I Managing Member LLC | DE | ||||
ICX Corporation | OH | ||||
JMP Asset Management Inc. | TX | ||||
JMP Asset Management LLC | TX | ||||
JMP Capital I Managing Member LLC | DE | ||||
JMP Capital LLC | DE | ||||
JMP Group Inc. | DE | ||||
JMP Group LLC | DE | ||||
JMP Holdings LLC | DE | ||||
JMP Investment Holdings LLC | DE | ||||
JMP Realty I LLC | DE | ||||
JMP Realty II LLC | DE | ||||
JMP Realty III LLC | DE | ||||
JMP Securities LLC | DE | ||||
Mass Investment Corp. | RI | ||||
Minuteman Investments Corporation | MA | ||||
Montgomery Service Corporation | PA |
New England Acceptance Corporation | NH | ||||
PA Investment Corp. I | RI | ||||
PA Investment Corp. II | RI | ||||
PA Investment Corp. V | DE | ||||
PCHC NMTC Investment Fund, LLC | DE | ||||
RBS Citizens Insurance Agency, Inc. | OH | ||||
RI Realty Trust, Inc. | MA | ||||
Servco, Inc. | OH | ||||
Thistle Group Holding Co. | PA | ||||
Willamette Management Associates, Inc. | OR |
/s/ Bruce Van Saun | ||
Bruce Van Saun | ||
Chief Executive Officer |
/s/ John F. Woods | ||
John F. Woods | ||
Chief Financial Officer |
/s/ Bruce Van Saun | ||
Bruce Van Saun | ||
Chief Executive Officer |
/s/ John F. Woods | ||
John F. Woods | ||
Chief Financial Officer |