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 II. | ||||||||||||||
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 | |||||||
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 | |||||||
BHC | Bank Holding Company | |||||||
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 | 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, CFG, 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 | Coronavirus Disease | |||||||
CRA | Community Reinvestment Act | |||||||
CRE | Commercial Real Estate | |||||||
DE&I | Diversity, Equity and Inclusion | |||||||
DH Capital | DH Capital, LLC | |||||||
DIF | Deposit Insurance Fund | |||||||
Dodd-Frank Act | The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 | |||||||
EAD | Exposure at Default | |||||||
EPS | Earnings Per Share | |||||||
ERISA | Employee Retirement Income Security Act of 1974 | |||||||
ESG | Environmental, Social, and Governance | |||||||
ESPP | Employee Stock Purchase Program |
Citizens Financial Group, Inc. | 2 |
EVE | Economic Value of Equity | |||||||
Exchange Act | The Securities Exchange Act of 1934, as amended | |||||||
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 | |||||||
Federal Banking Regulators | Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency | |||||||
FFIEC | Federal Financial Institutions Examination Council | |||||||
FHA | Federal Housing Administration | |||||||
FHC | Financial Holding Company | |||||||
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 | |||||||
GSE | Government Sponsored Entity | |||||||
HSBC | HSBC Bank U.S.A., N.A. | |||||||
HSBC transaction | Acquisition of HSBC East Coast branches and national online deposit business | |||||||
HTM | Held To Maturity | |||||||
ICE | Intercontinental Exchange | |||||||
Investors | Investors Bancorp, Inc. and its subsidiaries | |||||||
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 | |||||||
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 to ACL plus 25% of subsequent CECL ACL reserve build | |||||||
Modified CECL Transition | The Day-1 CECL adoption entry booked to retained earnings plus 25% of subsequent CECL ACL reserve build | |||||||
MSRs | Mortgage Servicing Rights |
Citizens Financial Group, Inc. | 3 |
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) | |||||||
PCD | Purchased Credit Deteriorated | |||||||
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 | |||||||
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 | |||||||
TOP | Tapping Our Potential | |||||||
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 |
Citizens Financial Group, Inc. | 4 |
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Citizens Financial Group, Inc. | 34 |
Citizens Financial Group, Inc. | 35 |
12/31/2022 | 12/31/2021 | 12/31/2020 | 12/31/2019 | 12/31/2018 | 12/31/2017 | |||||||||||||||
CFG | $114 | $132 | $96 | $103 | $73 | $100 | ||||||||||||||
S&P 500 Index | 157 | 191 | 149 | 126 | 96 | 100 | ||||||||||||||
KBW BKX Index | 109 | 139 | 100 | 112 | 82 | 100 | ||||||||||||||
Peer Regional Bank Average | 113 | 137 | 102 | 114 | 85 | 100 |
Period | Total Number of Shares Repurchased(1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2) | Maximum Dollar Amount of Shares That May Yet Be Purchased as Part of Publicly Announced Plans or Programs(2) | ||||||||||
October 1, 2022 - October 31, 2022 | 3,366,139 | $40.18 | 3,360,569 | $864,930,346 | ||||||||||
November 1, 2022 - November 30, 2022 | 5,597 | $39.49 | — | $864,930,346 | ||||||||||
December 1, 2022 - December 31, 2022 | 373,120 | $40.02 | 371,471 | $850,000,000 |
Citizens Financial Group, Inc. | 36 |
Citizens Financial Group, Inc. | 37 |
Page | ||||||||
Citizens Financial Group, Inc. | 38 |
Citizens Financial Group, Inc. | 39 |
Table 1: Notable Items | |||||||||||||||||
Year Ended December 31, 2022 | |||||||||||||||||
Less: notable items | |||||||||||||||||
(in millions) | Reported results (GAAP) | Integration related costs(1) | TOP and other(2) | Provision(3) | Underlying results (non-GAAP) | ||||||||||||
Provision (benefit) for credit losses | $474 | $— | $— | $169 | $305 | ||||||||||||
Noninterest income | 2,009 | (31) | — | — | 2,040 | ||||||||||||
Noninterest expense | 4,892 | 213 | 49 | — | 4,630 | ||||||||||||
Income tax expense | 582 | (58) | (9) | (43) | 692 |
Year Ended December 31, 2021 | |||||||||||||||||
Less: notable items | |||||||||||||||||
(in millions) | Reported results (GAAP) | Integration related costs(1) | TOP and other(2) | Provision | Underlying results (non-GAAP) | ||||||||||||
Provision (benefit) for credit losses | ($411) | $— | $— | $— | ($411) | ||||||||||||
Noninterest income | 2,135 | — | — | — | 2,135 | ||||||||||||
Noninterest expense | 4,081 | 35 | 70 | — | 3,976 | ||||||||||||
Income tax expense | 658 | (9) | (18) | — | 685 |
Citizens Financial Group, Inc. | 40 |
Citizens Financial Group, Inc. | 41 |
Table 2: Major Components of Net Interest Income | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2022 | 2021 | 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 | $6,195 | $128 | 2.04 | % | $11,762 | $16 | 0.13 | % | ($5,567) | 191 | bps | |||||||||||||||||||||
Taxable investment securities | 35,639 | 840 | 2.35 | 27,574 | 487 | 1.76 | 8,065 | 59 | ||||||||||||||||||||||||
Non-taxable investment securities | 3 | — | 2.33 | 3 | — | 2.60 | — | (27) | ||||||||||||||||||||||||
Total investment securities | 35,642 | 840 | 2.35 | 27,577 | 487 | 1.76 | 8,065 | 59 | ||||||||||||||||||||||||
Commercial and industrial | 50,002 | 1,942 | 3.83 | 43,512 | 1,399 | 3.17 | 6,490 | 66 | ||||||||||||||||||||||||
Commercial real estate | 24,746 | 1,026 | 4.09 | 14,515 | 380 | 2.58 | 10,231 | 151 | ||||||||||||||||||||||||
Leases | 1,521 | 46 | 3.00 | 1,742 | 49 | 2.79 | (221) | 21 | ||||||||||||||||||||||||
Total commercial | 76,269 | 3,014 | 3.90 | 59,769 | 1,828 | 3.02 | 16,500 | 88 | ||||||||||||||||||||||||
Residential mortgages | 27,759 | 876 | 3.16 | 20,636 | 613 | 2.97 | 7,123 | 19 | ||||||||||||||||||||||||
Home Equity | 13,057 | 555 | 4.25 | 11,901 | 370 | 3.11 | 1,156 | 114 | ||||||||||||||||||||||||
Automobile | 13,729 | 507 | 3.69 | 12,972 | 506 | 3.90 | 757 | (21) | ||||||||||||||||||||||||
Education | 13,047 | 560 | 4.29 | 12,666 | 536 | 4.23 | 381 | 6 | ||||||||||||||||||||||||
Other retail | 5,483 | 456 | 8.31 | 5,607 | 400 | 7.15 | (124) | 116 | ||||||||||||||||||||||||
Total retail | 73,075 | 2,954 | 4.04 | 63,782 | 2,425 | 3.80 | 9,293 | 24 | ||||||||||||||||||||||||
Total loans and leases | 149,344 | 5,968 | 3.97 | 123,551 | 4,253 | 3.42 | 25,793 | 55 | ||||||||||||||||||||||||
Loans held for sale, at fair value | 1,767 | 67 | 3.77 | 3,359 | 82 | 2.45 | (1,592) | 132 | ||||||||||||||||||||||||
Other loans held for sale | 1,188 | 57 | 4.71 | 262 | 13 | 4.87 | 926 | (16) | ||||||||||||||||||||||||
Interest-earning assets | 194,136 | 7,060 | 3.61 | 166,511 | 4,851 | 2.90 | 27,625 | 71 | ||||||||||||||||||||||||
Noninterest-earning assets | 20,925 | 18,595 | 2,330 | |||||||||||||||||||||||||||||
Total assets | $215,061 | $185,106 | $29,955 | |||||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||||||||
Checking with interest | $36,127 | $142 | 0.39 | % | $27,365 | $24 | 0.09 | % | $8,762 | 30 | ||||||||||||||||||||||
Money market | 48,410 | 320 | 0.66 | 49,148 | 78 | 0.16 | (738) | 50 | ||||||||||||||||||||||||
Savings | 27,524 | 100 | 0.37 | 20,276 | 19 | 0.10 | 7,248 | 27 | ||||||||||||||||||||||||
Term | 8,330 | 89 | 1.07 | 6,802 | 39 | 0.58 | 1,528 | 49 | ||||||||||||||||||||||||
Total interest-bearing deposits | 120,391 | 651 | 0.54 | 103,591 | 160 | 0.15 | 16,800 | 39 | ||||||||||||||||||||||||
Short-term borrowed funds | 1,584 | 23 | 1.47 | 66 | 1 | 1.13 | 1,518 | 34 | ||||||||||||||||||||||||
Long-term borrowed funds | 12,078 | 374 | 3.07 | 7,412 | 178 | 2.39 | 4,666 | 68 | ||||||||||||||||||||||||
Total borrowed funds | 13,662 | 397 | 2.88 | 7,478 | 179 | 2.38 | 6,184 | 50 | ||||||||||||||||||||||||
Total interest-bearing liabilities | 134,053 | 1,048 | 0.78 | 111,069 | 339 | 0.30 | 22,984 | 48 | ||||||||||||||||||||||||
Demand deposits | 51,717 | 46,898 | 4,819 | |||||||||||||||||||||||||||||
Other noninterest-bearing liabilities | 5,553 | 4,105 | 1,448 | |||||||||||||||||||||||||||||
Total liabilities | 191,323 | 162,072 | 29,251 | |||||||||||||||||||||||||||||
Stockholders’ equity | 23,738 | 23,034 | 704 | |||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $215,061 | $185,106 | $29,955 | |||||||||||||||||||||||||||||
Interest rate spread | 2.83 | % | 2.60 | % | 23 | |||||||||||||||||||||||||||
Net interest income and net interest margin | $6,012 | 3.10 | % | $4,512 | 2.71 | % | 39 | |||||||||||||||||||||||||
Net interest income and net interest margin, FTE(1) | $6,023 | 3.10 | % | $4,521 | 2.72 | % | 38 | |||||||||||||||||||||||||
Memo: Total deposits (interest-bearing and demand) | $172,108 | $651 | 0.38 | % | $150,489 | $160 | 0.11 | % | $21,619 | 27 |
Citizens Financial Group, Inc. | 42 |
Citizens Financial Group, Inc. | 43 |
Table 4: Noninterest Income | |||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
(dollars in millions) | 2022 | 2021 | Change | Percent | |||||||||||||||||||
Service charges and fees | $420 | $409 | $11 | 3 | % | ||||||||||||||||||
Capital markets fees | 368 | 428 | (60) | (14) | |||||||||||||||||||
Card fees | 273 | 250 | 23 | 9 | |||||||||||||||||||
Mortgage banking fees | 261 | 434 | (173) | (40) | |||||||||||||||||||
Trust and investment services fees | 249 | 239 | 10 | 4 | |||||||||||||||||||
Foreign exchange and derivative products | 188 | 120 | 68 | 57 | |||||||||||||||||||
Letter of credit and loan fees | 159 | 156 | 3 | 2 | |||||||||||||||||||
Securities gains, net | 9 | 10 | (1) | (10) | |||||||||||||||||||
Other income(1) | 82 | 89 | (7) | (8) | |||||||||||||||||||
Noninterest income | $2,009 | $2,135 | ($126) | (6 | %) |
Table 5: Noninterest Expense | |||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
(dollars in millions) | 2022 | 2021 | Change | Percent | |||||||||||||||||||
Salaries and employee benefits | $2,549 | $2,132 | $417 | 20 | % | ||||||||||||||||||
Outside services | 700 | 595 | 105 | 18 | |||||||||||||||||||
Equipment and software | 648 | 610 | 38 | 6 | |||||||||||||||||||
Occupancy | 410 | 333 | 77 | 23 | |||||||||||||||||||
Other operating expense | 585 | 411 | 174 | 42 | |||||||||||||||||||
Noninterest expense | $4,892 | $4,081 | $811 | 20 | % |
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, 2022 | December 31, 2021 | ||||||||||||||||
(in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
U.S. Treasury and other | $3,678 | $3,486 | $11 | $11 | |||||||||||||
State and political subdivisions | 2 | 2 | 2 | 2 | |||||||||||||
Mortgage-backed securities: | |||||||||||||||||
Federal agencies and U.S. government sponsored entities | 21,250 | 19,062 | 24,607 | 24,442 | |||||||||||||
Other/non-agency | 280 | 251 | 397 | 405 | |||||||||||||
Total mortgage-backed securities | 21,530 | 19,313 | 25,004 | 24,847 | |||||||||||||
Collateralized loan obligations | 1,248 | 1,206 | 1,208 | 1,207 | |||||||||||||
Total debt securities available for sale, at fair value | $26,458 | $24,007 | $26,225 | $26,067 | |||||||||||||
Mortgage-backed securities: | |||||||||||||||||
Federal agencies and U.S. government sponsored entities | $9,253 | $8,506 | $1,505 | $1,557 | |||||||||||||
Total mortgage-backed securities | 9,253 | 8,506 | 1,505 | 1,557 | |||||||||||||
Asset-backed securities | 581 | 536 | 737 | 732 | |||||||||||||
Total debt securities held to maturity | $9,834 | $9,042 | $2,242 | $2,289 | |||||||||||||
Total debt securities available for sale and held to maturity | $36,292 | $33,049 | $28,467 | $28,356 | |||||||||||||
Equity securities, at cost | $1,058 | $1,058 | $624 | $624 | |||||||||||||
Equity securities, at fair value | 153 | 153 | 109 | 109 | |||||||||||||
Citizens Financial Group, Inc. | 47 |
Table 8: Amortized Cost of AFS and HTM Securities by Contractual Maturity | ||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
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 | $— | — | % | $2,114 | 2.44 | % | $1,564 | 2.76 | % | $— | — | % | $3,678 | 2.58 | % | |||||||||||||||||||||||||||||
State and political subdivisions | — | 5.25 | — | — | — | — | 2 | 2.60 | 2 | 2.68 | ||||||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | 1 | 1.98 | 1,149 | 3.16 | 2,889 | 2.98 | 17,211 | 2.87 | 21,250 | 2.90 | ||||||||||||||||||||||||||||||||||
Other/non-agency | — | — | — | — | — | — | 280 | 2.60 | 280 | 2.60 | ||||||||||||||||||||||||||||||||||
Collateralized loan obligations | — | — | — | — | 24 | 5.79 | 1,224 | 5.43 | 1,248 | 5.44 | ||||||||||||||||||||||||||||||||||
Total debt securities available for sale | 1 | 2.10 | 3,263 | 2.70 | 4,477 | 2.92 | 18,717 | 3.03 | 26,458 | 2.97 | ||||||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | — | — | — | — | — | — | 9,253 | 2.33 | 9,253 | 2.33 | ||||||||||||||||||||||||||||||||||
Asset-backed securities | — | — | 581 | 3.80 | — | — | — | — | 581 | 3.80 | ||||||||||||||||||||||||||||||||||
Total debt securities held to maturity | — | — | 581 | 3.80 | — | — | 9,253 | 2.33 | 9,834 | 2.44 | ||||||||||||||||||||||||||||||||||
Total debt securities | $1 | 2.10 | % | $3,844 | 2.86 | % | $4,477 | 2.92 | % | $27,970 | 2.80 | % | $36,292 | 2.82 | % |
Table 9: Composition of Loans and Leases, Excluding LHFS | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
(dollars in millions) | 2022 | 2021 | Change | Percent | |||||||||||||||||||
Commercial and industrial | $51,836 | $44,500 | $7,336 | 16 | % | ||||||||||||||||||
Commercial real estate | 28,865 | 14,264 | 14,601 | 102 | |||||||||||||||||||
Leases | 1,479 | 1,586 | (107) | (7) | |||||||||||||||||||
Total commercial | 82,180 | 60,350 | 21,830 | 36 | |||||||||||||||||||
Residential mortgages | 29,921 | 22,822 | 7,099 | 31 | |||||||||||||||||||
Home equity | 14,043 | 12,015 | 2,028 | 17 | |||||||||||||||||||
Automobile | 12,292 | 14,549 | (2,257) | (16) | |||||||||||||||||||
Education | 12,808 | 12,997 | (189) | (1) | |||||||||||||||||||
Other retail | 5,418 | 5,430 | (12) | — | |||||||||||||||||||
Total retail | 74,482 | 67,813 | 6,669 | 10 | |||||||||||||||||||
Total loans and leases | $156,662 | $128,163 | $28,499 | 22 | % |
Citizens Financial Group, Inc. | 48 |
Table 10: Fixed and Variable Rate Loans and Leases by Maturity | |||||||||||||||||
December 31, 2022 | |||||||||||||||||
(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 | $153 | $1,858 | $1,728 | $77 | $3,816 | ||||||||||||
Commercial real estate | 275 | 1,702 | 4,921 | 51 | 6,949 | ||||||||||||
Leases | 230 | 720 | 478 | — | 1,428 | ||||||||||||
Total commercial fixed rate | 658 | 4,280 | 7,127 | 128 | 12,193 | ||||||||||||
Variable rate: | |||||||||||||||||
Commercial and industrial | 7,499 | 34,748 | 5,693 | 80 | 48,020 | ||||||||||||
Commercial real estate | 5,111 | 11,848 | 4,777 | 180 | 21,916 | ||||||||||||
Leases | 5 | 46 | — | — | 51 | ||||||||||||
Total commercial variable rate(1) | 12,615 | 46,642 | 10,470 | 260 | 69,987 | ||||||||||||
Total commercial | 13,273 | 50,922 | 17,597 | 388 | 82,180 | ||||||||||||
Fixed rate: | |||||||||||||||||
Residential mortgages | 1,245 | 138 | 1,640 | 17,258 | 20,281 | ||||||||||||
Home equity | 73 | 52 | 268 | 160 | 553 | ||||||||||||
Automobile | 440 | 7,514 | 4,338 | — | 12,292 | ||||||||||||
Education | 192 | 1,054 | 7,061 | 3,187 | 11,494 | ||||||||||||
Other retail | 1,139 | 1,486 | 11 | 239 | 2,875 | ||||||||||||
Total retail fixed rate | 3,089 | 10,244 | 13,318 | 20,844 | 47,495 | ||||||||||||
Variable rate: | |||||||||||||||||
Residential mortgages | 1 | 6 | 161 | 9,472 | 9,640 | ||||||||||||
Home equity | 250 | 9 | 875 | 12,356 | 13,490 | ||||||||||||
Automobile | — | — | — | — | — | ||||||||||||
Education | 6 | 244 | 876 | 188 | 1,314 | ||||||||||||
Other retail | 2,541 | 2 | — | — | 2,543 | ||||||||||||
Total retail variable rate | 2,798 | 261 | 1,912 | 22,016 | 26,987 | ||||||||||||
Total retail | 5,887 | 10,505 | 15,230 | 42,860 | 74,482 | ||||||||||||
Total loans and leases | $19,160 | $61,427 | $32,827 | $43,248 | $156,662 |
Citizens Financial Group, Inc. | 49 |
Citizens Financial Group, Inc. | 50 |
Table 13: Nonaccrual Loans and Leases | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
(dollars in millions) | 2022 | 2021 | Change | Percent | |||||||||||||||||||
Commercial and industrial | $249 | $171 | $78 | 46 | % | ||||||||||||||||||
Commercial real estate | 103 | 11 | 92 | NM | |||||||||||||||||||
Leases | — | 1 | (1) | (100) | |||||||||||||||||||
Total commercial | 352 | 183 | 169 | 92 | |||||||||||||||||||
Residential mortgages(1) | 234 | 201 | 33 | 16 | |||||||||||||||||||
Home equity | 241 | 220 | 21 | 10 | |||||||||||||||||||
Automobile | 56 | 55 | 1 | 2 | |||||||||||||||||||
Education | 33 | 23 | 10 | 43 | |||||||||||||||||||
Other retail | 28 | 20 | 8 | 40 | |||||||||||||||||||
Total retail | 592 | 519 | 73 | 14 | |||||||||||||||||||
Nonaccrual loans and leases | $944 | $702 | $242 | 34 | % | ||||||||||||||||||
Nonaccrual loans and leases to total loans and leases | 0.60 | % | 0.55 | % | 5 | bps | |||||||||||||||||
Allowance for loan and lease losses to nonaccrual loans and leases | 210 | 251 | (41 | %) | |||||||||||||||||||
Allowance for credit losses to nonaccrual loans and leases | 237 | 276 | (39 | %) |
Citizens Financial Group, Inc. | 51 |
December 31, 2021 | |||||||||||||||||
Criticized | |||||||||||||||||
(in millions) | Pass | Special Mention | Substandard | Doubtful | Total | ||||||||||||
Commercial and industrial | $42,254 | $809 | $1,294 | $143 | $44,500 | ||||||||||||
Commercial real estate | 13,319 | 406 | 528 | 11 | 14,264 | ||||||||||||
Leases | 1,512 | 49 | 24 | 1 | 1,586 | ||||||||||||
Total commercial | $57,085 | $1,264 | $1,846 | $155 | $60,350 |
Citizens Financial Group, Inc. | 52 |
Table 16: Commercial Loans and Leases | |||||||||||||||||
December 31, 2022 | December 31, 2021 | ||||||||||||||||
(dollars in millions) | Balance | % of Total Loans and Leases | Balance | % of Total Loans and Leases | |||||||||||||
Sector | |||||||||||||||||
Finance and insurance | |||||||||||||||||
Capital call facilities | $6,753 | 4 | % | $5,633 | 4 | % | |||||||||||
Other | 5,310 | 3 | 3,668 | 3 | |||||||||||||
Other manufacturing | 4,474 | 3 | 4,087 | 3 | |||||||||||||
Technology | 4,367 | 3 | 4,220 | 3 | |||||||||||||
Accommodation and food services | 3,572 | 2 | 3,438 | 3 | |||||||||||||
Health, pharma, and social assistance | 3,056 | 2 | 2,912 | 2 | |||||||||||||
Professional, scientific, and technical services | 3,067 | 2 | 2,665 | 2 | |||||||||||||
Wholesale trade | 2,955 | 2 | 2,358 | 2 | |||||||||||||
Retail trade | 2,391 | 2 | 2,237 | 2 | |||||||||||||
Other services | 2,713 | 2 | 2,051 | 2 | |||||||||||||
Energy and related | 2,299 | 1 | 2,017 | 2 | |||||||||||||
Real estate and rental and leasing | 1,542 | 1 | 739 | — | |||||||||||||
Consumer products manufacturing | 1,511 | 1 | 1,192 | 1 | |||||||||||||
Administrative and waste management services | 1,710 | 1 | 1,396 | 1 | |||||||||||||
Arts, entertainment, and recreation | 1,587 | 1 | 1,189 | 1 | |||||||||||||
Automotive | 1,316 | 1 | 1,172 | 1 | |||||||||||||
All other(1) | 3,091 | 2 | 2,739 | 2 | |||||||||||||
Total commercial and industrial | 51,715 | 33 | 43,713 | 34 | |||||||||||||
Property type | |||||||||||||||||
Multi-family | 8,696 | 6 | 2,253 | 2 | |||||||||||||
Office | 6,253 | 4 | 5,234 | 4 | |||||||||||||
Retail | 3,208 | 2 | 1,433 | 1 | |||||||||||||
Industrial | 3,344 | 2 | 1,753 | 1 | |||||||||||||
Co-op | 1,824 | 1 | — | — | |||||||||||||
Data centers | 870 | 1 | 204 | — | |||||||||||||
Hospitality | 638 | — | 471 | — | |||||||||||||
All other(1) | 4,032 | 2 | 2,916 | 3 | |||||||||||||
Total commercial real estate | 28,865 | 18 | 14,264 | 11 | |||||||||||||
Total leases | 1,479 | 1 | 1,586 | 1 | |||||||||||||
Total commercial(2) | $82,059 | 52 | % | $59,563 | 46 | % |
Citizens Financial Group, Inc. | 53 |
Table 17: Retail Loan Portfolio Analysis | |||||||||||||||||||||||||||||||||||
December 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
Days Past Due and Accruing | Days Past Due and Accruing | ||||||||||||||||||||||||||||||||||
Current | 30-59 | 60-89 | 90+ | Nonaccrual | Current | 30-59 | 60-89 | 90+ | Nonaccrual | ||||||||||||||||||||||||||
Residential mortgages(1) | 97.68 | % | 0.32 | % | 0.15 | % | 1.07 | % | 0.78 | % | 96.03 | % | 0.45 | % | 0.23 | % | 2.41 | % | 0.88 | % | |||||||||||||||
Home equity | 97.68 | 0.46 | 0.14 | — | 1.72 | 97.75 | 0.32 | 0.10 | — | 1.83 | |||||||||||||||||||||||||
Automobile | 97.93 | 1.24 | 0.37 | — | 0.46 | 98.45 | 0.90 | 0.27 | — | 0.38 | |||||||||||||||||||||||||
Education | 99.30 | 0.28 | 0.13 | 0.03 | 0.26 | 99.45 | 0.26 | 0.10 | 0.01 | 0.18 | |||||||||||||||||||||||||
Other retail | 97.71 | 0.81 | 0.55 | 0.41 | 0.52 | 98.18 | 0.74 | 0.42 | 0.29 | 0.37 | |||||||||||||||||||||||||
Total retail | 98.02 | % | 0.52 | % | 0.21 | % | 0.46 | % | 0.79 | % | 97.69 | % | 0.51 | % | 0.20 | % | 0.83 | % | 0.77 | % |
Table 18: Retail Asset Quality Metrics | |||||||||||
December 31, 2022 | December 31, 2021 | ||||||||||
Average refreshed FICO for total portfolio | 770 | 768 | |||||||||
CLTV ratio for secured real estate(1) | 50 | % | 56 | % | |||||||
Nonaccrual retail loans as a percentage of total retail | 0.79 | % | 0.77 | % |
Citizens Financial Group, Inc. | 54 |
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 loans | 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 |
Table 20: Composition of Deposits | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
(dollars in millions) | 2022 | 2021 | Change | Percent | |||||||||||||||||||
Demand | $49,283 | $49,443 | ($160) | — | % | ||||||||||||||||||
Money market | 49,905 | 47,216 | 2,689 | 6 | |||||||||||||||||||
Checking with interest | 39,721 | 30,409 | 9,312 | 31 | |||||||||||||||||||
Savings | 29,805 | 22,030 | 7,775 | 35 | |||||||||||||||||||
Term | 12,010 | 5,263 | 6,747 | 128 | |||||||||||||||||||
Total deposits | $180,724 | $154,361 | $26,363 | 17 | % |
Citizens Financial Group, Inc. | 55 |
Citizens Financial Group, Inc. | 56 |
Citizens Financial Group, Inc. | 57 |
Table 23: Capital Composition Under the U.S. Basel III Capital Framework | |||||||||||
(in millions) | December 31, 2022 | December 31, 2021 | |||||||||
Total common stockholders’ equity | $21,676 | $21,406 | |||||||||
Exclusions: | |||||||||||
Modified CECL transitional amount | 288 | 384 | |||||||||
Net unrealized (gains)/losses recorded in accumulated other comprehensive income (loss), net of tax: | |||||||||||
Debt and equity securities | 2,771 | 156 | |||||||||
Derivatives | 1,416 | 160 | |||||||||
Unamortized net periodic benefit costs | 373 | 349 | |||||||||
Deductions: | |||||||||||
Goodwill, net of deferred tax liability | (7,780) | (6,733) | |||||||||
Other intangible assets, net of deferred tax liability | (170) | (66) | |||||||||
Deferred tax assets that arise from tax loss and credit carryforwards | — | — | |||||||||
Total common equity tier 1 capital | 18,574 | 15,656 | |||||||||
Qualifying preferred stock | 2,014 | 2,014 | |||||||||
Total tier 1 capital | 20,588 | 17,670 | |||||||||
Qualifying subordinated debt(1) | 1,427 | 1,138 | |||||||||
Allowance for credit losses | 2,240 | 1,934 | |||||||||
Exclusions from tier 2 capital: | |||||||||||
Modified AACL transitional amount | (374) | (498) | |||||||||
Allowance on PCD assets | (126) | — | |||||||||
Adjusted allowance for credit losses | $1,740 | $1,436 | |||||||||
Total capital | $23,755 | $20,244 |
Citizens Financial Group, Inc. | 58 |
Table 24: CBNA's Capital Ratios Under the U.S. Basel III Standardized Rules | |||||||||||||||||
December 31, 2022 | December 31, 2021 | ||||||||||||||||
(in millions, except ratio data) | Amount | Ratio | Amount | Ratio | |||||||||||||
CET1 capital | $20,669 | 11.2 | % | $17,039 | 10.7 | % | |||||||||||
Tier 1 capital | 20,669 | 11.2 | 17,039 | 10.7 | |||||||||||||
Total capital | 23,534 | 12.7 | 19,600 | 12.4 | |||||||||||||
Tier 1 leverage | 20,669 | 9.4 | 17,039 | 9.4 | |||||||||||||
Risk-weighted assets | 184,781 | 158,550 | |||||||||||||||
Quarterly adjusted average assets(1) | 220,182 | 181,268 |
Citizens Financial Group, Inc. | 59 |
Citizens Financial Group, Inc. | 60 |
Table 25: Credit Ratings | |||||||||||||||||
December 31, 2022 | |||||||||||||||||
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. | 61 |
Citizens Financial Group, Inc. | 62 |
Citizens Financial Group, Inc. | 63 |
Pronouncement | Summary of Guidance | Effects on Financial Statements | ||||||
Troubled Debt Restructurings and Vintage Disclosures Issued March 2022 | •Eliminates the separate recognition and measurement guidance for TDRs. •Requires evaluation of all modifications to borrowers experiencing financial difficulty to determine whether the modification results in a new loan or continuation of an existing loan. •Requires expected credit losses measured under a discounted cash flow method to be determined using an effective interest rate based on the modified (not original) contractual terms of the loan. •Enhances disclosures by creditors for modifications of receivables from borrowers experiencing financial difficulty in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay or a term extension. •Requires disclosure of current period gross charge-offs by vintage year for loans and net investments in leases. •Transition is prospective, with an option to adopt the recognition and measurement guidance for TDRs on a modified retrospective basis, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. | •Required effective date: January 1, 2023, with early adoption permitted. We did not early adopt this Pronouncement. •Adoption is not expected to have a material financial impact on our Consolidated Financial Statements, but is expected to have a meaningful impact on our required disclosures in the Notes to our Consolidated Financial Statements. | ||||||
Derivatives and Hedging - Fair Value Hedging - Portfolio Layer Method Issued March 2022 | •Replaces the ‘last-of-layer’ method. •Allows the designation of multiple layers in a closed portfolio of financial assets. •Permits hedging of non-prepayable as well as prepayable assets. •Prohibits the consideration of basis adjustments when measuring expected credit losses of assets in the closed portfolio or determining whether an AFS security is impaired. •The guidance on hedging multiple layers in a closed portfolio is applied prospectively. The guidance on the accounting for fair value basis adjustments is applied on a modified retrospective basis. | •Required effective date: January 1, 2023, with early adoption permitted. We did not early adopt this Pronouncement. •Adoption is not expected to have a material impact on our Consolidated Financial Statements. |
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 |
Table 26: Sensitivity of Net Interest Income | |||||||||||
Estimated % Change in Net Interest Income over 12 Months | |||||||||||
December 31, | |||||||||||
Basis points | 2022 | 2021 | |||||||||
Instantaneous Change in Interest Rates | |||||||||||
+200 | 4.8 | % | 19.4 | % | |||||||
+100 | 2.4 | 10.2 | |||||||||
-100 | (2.5) | (8.5) | |||||||||
-200 | (5.6) | (8.5) | |||||||||
Gradual Change in Interest Rates | |||||||||||
+200 | 2.7 | % | 10.1 | % | |||||||
+100 | 1.4 | 5.2 | |||||||||
-100 | (1.4) | (6.0) | |||||||||
-200 | (3.0) | (7.7) |
Citizens Financial Group, Inc. | 69 |
Table 28: Pre-Tax Gains (Losses) Recorded in the Consolidated Statements of Operations and the Consolidated Statements of Comprehensive Income on Cash Flow Hedges | ||||||||||||||
Year Ended December 31, | ||||||||||||||
(in millions) | 2022 | 2021 | ||||||||||||
Amount of pre-tax net gains (losses) recognized in OCI | ($1,806) | ($66) | ||||||||||||
Amount of pre-tax net gains (losses) reclassified from OCI into interest income | (111) | 183 | ||||||||||||
Amount of pre-tax net gains (losses) reclassified from OCI into interest expense | (4) | (48) |
Citizens Financial Group, Inc. | 70 |
Citizens Financial Group, Inc. | 71 |
Citizens Financial Group, Inc. | 72 |
Table 29: Results of Modeled and Non-Modeled Measures for Regulatory Capital Calculations | ||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | For the Three Months Ended December 31, 2022 | For the Three Months Ended December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||
Market Risk Category | Period End | Average | High | Low | Period End | Average | High | Low | ||||||||||||||||||||||||||||||||||||||||||
Interest Rate | $3 | $2 | $3 | $1 | $2 | $1 | $2 | $— | ||||||||||||||||||||||||||||||||||||||||||
Foreign Exchange Currency Rate | — | — | — | — | — | 1 | 2 | — | ||||||||||||||||||||||||||||||||||||||||||
Credit Spread | 2 | 2 | 2 | 2 | 3 | 7 | 10 | 3 | ||||||||||||||||||||||||||||||||||||||||||
Commodity | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
General VaR | 5 | 3 | 5 | 2 | 6 | 8 | 10 | 5 | ||||||||||||||||||||||||||||||||||||||||||
Specific Risk VaR | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total VaR | $5 | $3 | $5 | $2 | $6 | $8 | $10 | $5 | ||||||||||||||||||||||||||||||||||||||||||
Stressed General VaR | $12 | $10 | $15 | $6 | $8 | $9 | $12 | $6 | ||||||||||||||||||||||||||||||||||||||||||
Stressed Specific Risk VaR | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total Stressed VaR | $12 | $10 | $15 | $6 | $8 | $9 | $12 | $6 | ||||||||||||||||||||||||||||||||||||||||||
Market Risk Regulatory Capital | $39 | $50 | ||||||||||||||||||||||||||||||||||||||||||||||||
Specific Risk Not Modeled Add-on | 20 | 20 | ||||||||||||||||||||||||||||||||||||||||||||||||
de Minimis Exposure Add-on | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Total Market Risk Regulatory Capital | $59 | $70 | ||||||||||||||||||||||||||||||||||||||||||||||||
Market Risk-Weighted Assets | $739 | $877 |
Citizens Financial Group, Inc. | 73 |
Citizens Financial Group, Inc. | 74 |
Citizens Financial Group, Inc. | 75 |
Year Ended December 31, | ||||||||||||||
(in millions, except share, per share and ratio data) | Ref. | 2022 | 2021 | |||||||||||
Noninterest income, Underlying: | ||||||||||||||
Noninterest income (GAAP) | A | $2,009 | $2,135 | |||||||||||
Less: Notable items | (31) | — | ||||||||||||
Noninterest income, Underlying (non-GAAP) | B | $2,040 | $2,135 | |||||||||||
Total revenue, Underlying: | ||||||||||||||
Total revenue (GAAP) | C | $8,021 | $6,647 | |||||||||||
Less: Notable items | (31) | — | ||||||||||||
Total revenue, Underlying (non-GAAP) | D | $8,052 | $6,647 | |||||||||||
Noninterest expense, Underlying: | ||||||||||||||
Noninterest expense (GAAP) | E | $4,892 | $4,081 | |||||||||||
Less: Notable items | 262 | 105 | ||||||||||||
Noninterest expense, Underlying (non-GAAP) | F | $4,630 | $3,976 | |||||||||||
Pre-provision profit: | ||||||||||||||
Total revenue (GAAP) | C | $8,021 | $6,647 | |||||||||||
Less: Noninterest expense (GAAP) | E | 4,892 | 4,081 | |||||||||||
Pre-provision profit (GAAP) | $3,129 | $2,566 | ||||||||||||
Pre-provision profit, Underlying: | ||||||||||||||
Total revenue, Underlying (non-GAAP) | D | $8,052 | $6,647 | |||||||||||
Less: Noninterest expense, Underlying (non-GAAP) | F | 4,630 | 3,976 | |||||||||||
Pre-provision profit, Underlying (non-GAAP) | $3,422 | $2,671 | ||||||||||||
Provision (benefit) for credit losses, Underlying: | ||||||||||||||
Provision (benefit) for credit losses (GAAP) | $474 | ($411) | ||||||||||||
Less: Notable items | 169 | — | ||||||||||||
Provision (benefit) for credit losses, Underlying (non-GAAP) | $305 | ($411) | ||||||||||||
Income before income tax expense, Underlying: | ||||||||||||||
Income before income tax expense (GAAP) | G | $2,655 | $2,977 | |||||||||||
Less: Income (loss) before income tax expense (benefit) related to notable items | (462) | (105) | ||||||||||||
Income before income tax expense, Underlying (non-GAAP) | H | $3,117 | $3,082 | |||||||||||
Income tax expense and effective income tax rate, Underlying: | ||||||||||||||
Income tax expense (GAAP) | I | $582 | $658 | |||||||||||
Less: Income tax expense (benefit) related to notable items | (110) | (27) | ||||||||||||
Income tax expense, Underlying (non-GAAP) | J | $692 | $685 | |||||||||||
Effective income tax rate (GAAP) | I/G | 21.93 | % | 22.10 | % | |||||||||
Effective income tax rate, Underlying (non-GAAP) | J/H | 22.19 | 22.21 | |||||||||||
Net income, Underlying: | ||||||||||||||
Net income (GAAP) | K | $2,073 | $2,319 | |||||||||||
Add: Notable items, net of income tax benefit | 352 | 78 | ||||||||||||
Net income, Underlying (non-GAAP) | L | $2,425 | $2,397 | |||||||||||
Net income available to common stockholders, Underlying: | ||||||||||||||
Net income available to common stockholders (GAAP) | M | $1,960 | $2,206 | |||||||||||
Add: Notable items, net of income tax benefit | 352 | 78 | ||||||||||||
Net income available to common stockholders, Underlying (non-GAAP) | N | $2,312 | $2,284 | |||||||||||
Return on average common equity and return on average common equity, Underlying: | ||||||||||||||
Average common equity (GAAP) | O | $21,724 | $21,025 | |||||||||||
Return on average common equity | M/O | 9.02 | % | 10.49 | % | |||||||||
Return on average common equity, Underlying (non-GAAP) | N/O | 10.64 | 10.86 |
Citizens Financial Group, Inc. | 76 |
Year Ended December 31, | ||||||||||||||
(in millions, except share, per share and ratio data) | Ref. | 2022 | 2021 | |||||||||||
Return on average tangible common equity and return on average tangible common equity, Underlying: | ||||||||||||||
Average common equity (GAAP) | O | $21,724 | $21,025 | |||||||||||
Less: Average goodwill (GAAP) | 7,872 | 7,062 | ||||||||||||
Less: Average other intangibles (GAAP) | 181 | 54 | ||||||||||||
Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP) | 413 | 381 | ||||||||||||
Average tangible common equity | P | $14,084 | $14,290 | |||||||||||
Return on average tangible common equity | M/P | 13.91 | % | 15.44 | % | |||||||||
Return on average tangible common equity, Underlying (non-GAAP) | N/P | 16.41 | 15.98 | |||||||||||
Return on average total assets and return on average total assets, Underlying: | ||||||||||||||
Average total assets (GAAP) | Q | $215,061 | $185,106 | |||||||||||
Return on average total assets | K/Q | 0.96 | % | 1.25 | % | |||||||||
Return on average total assets, Underlying (non-GAAP) | L/Q | 1.13 | 1.30 | |||||||||||
Return on average total tangible assets and return on average total tangible assets, Underlying: | ||||||||||||||
Average total assets (GAAP) | Q | $215,061 | $185,106 | |||||||||||
Less: Average goodwill (GAAP) | 7,872 | 7,062 | ||||||||||||
Less: Average other intangibles (GAAP) | 181 | 54 | ||||||||||||
Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP) | 413 | 381 | ||||||||||||
Average tangible assets | R | $207,421 | $178,371 | |||||||||||
Return on average total tangible assets | K/R | 1.00 | % | 1.30 | % | |||||||||
Return on average total tangible assets, Underlying (non-GAAP) | L/R | 1.17 | 1.34 | |||||||||||
Efficiency ratio and efficiency ratio, Underlying: | ||||||||||||||
Efficiency ratio | E/C | 60.99 | % | 61.40 | % | |||||||||
Efficiency ratio, Underlying (non-GAAP) | F/D | 57.51 | 59.82 | |||||||||||
Noninterest income as a % of total revenue, Underlying: | ||||||||||||||
Noninterest income as a % of total revenue | A/C | 25.04 | % | 32.11 | % | |||||||||
Noninterest income as a % of total revenue, Underlying (non-GAAP) | B/D | 25.33 | 32.11 | |||||||||||
Operating leverage and operating leverage, Underlying: | ||||||||||||||
Increase (decrease) in total revenue | 20.68 | % | (3.74 | %) | ||||||||||
Increase in noninterest expense | 19.88 | 2.25 | ||||||||||||
Operating Leverage | 0.80 | % | (5.99) | % | ||||||||||
Increase (decrease) in total revenue, Underlying (non-GAAP) | 21.15 | % | (3.74) | % | ||||||||||
Increase in noninterest expense, Underlying (non-GAAP) | 16.46 | 2.85 | ||||||||||||
Operating Leverage, Underlying (non-GAAP) | 4.69 | % | (6.59) | % | ||||||||||
Tangible book value per common share: | ||||||||||||||
Common shares - at period end (GAAP) | S | 492,282,158 | 422,137,197 | |||||||||||
Common stockholders’ equity (GAAP) | $21,676 | $21,406 | ||||||||||||
Less: Goodwill (GAAP) | 8,173 | 7,116 | ||||||||||||
Less: Other intangible assets (GAAP) | 197 | 64 | ||||||||||||
Add: Deferred tax liabilities related to goodwill and other intangible assets (GAAP) | 422 | 383 | ||||||||||||
Tangible common equity | T | $13,728 | $14,609 | |||||||||||
Tangible book value per common share | T/S | $27.88 | $34.61 | |||||||||||
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) | U | 475,959,815 | 425,669,451 | |||||||||||
Average common shares outstanding - diluted (GAAP) | V | 477,803,142 | 427,435,818 | |||||||||||
Net income per average common share - basic (GAAP) | M/U | $4.12 | $5.18 | |||||||||||
Net income per average common share - diluted (GAAP) | M/V | 4.10 | 5.16 | |||||||||||
Net income per average common share-basic, Underlying (non-GAAP) | N/U | 4.86 | 5.37 | |||||||||||
Net income per average common share-diluted, Underlying (non-GAAP) | N/V | 4.84 | 5.34 |
Citizens Financial Group, Inc. | 77 |
Year Ended December 31, | ||||||||||||||
(in millions, except share, per share and ratio data) | Ref. | 2022 | 2021 | |||||||||||
Dividend payout ratio and dividend payout ratio, Underlying: | ||||||||||||||
Cash dividends declared and paid per common share | W | $1.62 | $1.56 | |||||||||||
Dividend payout ratio | W/(M/U) | 39 | % | 30 | % | |||||||||
Dividend payout ratio, Underlying (non-GAAP) | W/(N/U) | 33 | 29 | |||||||||||
Citizens Financial Group, Inc. | 78 |
Page | ||||||||
Citizens Financial Group, Inc. | 79 |
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 |
December 31, | |||||||||||
(in millions, except share data) | 2022 | 2021 | |||||||||
ASSETS: | |||||||||||
Cash and due from banks | $1,489 | $1,155 | |||||||||
Interest-bearing cash and due from banks | 9,058 | 8,003 | |||||||||
Interest-bearing deposits in banks | 303 | 316 | |||||||||
Debt securities available for sale, at fair value (including $270 and $640 pledged to creditors, respectively)(1) | 24,007 | 26,067 | |||||||||
Debt securities held to maturity (fair value of $9,042 and $2,289, respectively, and including $110 and $77 pledged to creditors, respectively)(1) | 9,834 | 2,242 | |||||||||
Loans held for sale, at fair value | 774 | 2,733 | |||||||||
Other loans held for sale | 208 | 735 | |||||||||
Loans and leases | 156,662 | 128,163 | |||||||||
Less: Allowance for loan and lease losses | (1,983) | (1,758) | |||||||||
Net loans and leases | 154,679 | 126,405 | |||||||||
Derivative assets | 842 | 1,216 | |||||||||
Premises and equipment, net | 844 | 768 | |||||||||
Bank-owned life insurance | 3,236 | 2,843 | |||||||||
Goodwill | 8,173 | 7,116 | |||||||||
Other intangible assets(2) | 197 | 64 | |||||||||
Other assets | 13,089 | 8,746 | |||||||||
TOTAL ASSETS | $226,733 | $188,409 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY: | |||||||||||
LIABILITIES: | |||||||||||
Deposits: | |||||||||||
Noninterest-bearing | $49,283 | $49,443 | |||||||||
Interest-bearing | 131,441 | 104,918 | |||||||||
Total deposits | 180,724 | 154,361 | |||||||||
Short-term borrowed funds | 3 | 74 | |||||||||
Derivative liabilities | 1,909 | 197 | |||||||||
Long-term borrowed funds | 15,887 | 6,932 | |||||||||
Other liabilities | 4,520 | 3,425 | |||||||||
TOTAL LIABILITIES | 203,043 | 164,989 | |||||||||
Commitments and Contingencies (refer to Note 19) | |||||||||||
STOCKHOLDERS’ EQUITY: | |||||||||||
Preferred Stock: | |||||||||||
$25.00 par value,100,000,000 shares authorized; 2,050,000 shares issued and outstanding at December 31, 2022 and 2021 | 2,014 | 2,014 | |||||||||
Common stock: | |||||||||||
$0.01 par value, 1,000,000,000 shares authorized; 645,220,018 shares issued and 492,282,158 shares outstanding at December 31, 2022 and 571,259,135 shares issued and 422,137,197 shares outstanding at December 31, 2021 | 6 | 6 | |||||||||
Additional paid-in capital | 22,142 | 19,005 | |||||||||
Retained earnings | 9,159 | 7,978 | |||||||||
Treasury stock, at cost, 152,937,860 and 149,121,938 shares at December 31, 2022 and 2021, respectively | (5,071) | (4,918) | |||||||||
Accumulated other comprehensive income (loss) | (4,560) | (665) | |||||||||
TOTAL STOCKHOLDERS’ EQUITY | 23,690 | 23,420 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $226,733 | $188,409 |
Citizens Financial Group, Inc. | 86 |
Year Ended December 31, | |||||||||||
(in millions, except share and per share data) | 2022 | 2021 | 2020 | ||||||||
INTEREST INCOME: | |||||||||||
Interest and fees on loans and leases | $5,968 | $4,253 | $4,719 | ||||||||
Interest and fees on loans held for sale | 67 | 82 | 75 | ||||||||
Interest and fees on other loans held for sale | 57 | 13 | 33 | ||||||||
Investment securities | 840 | 487 | 519 | ||||||||
Interest-bearing deposits in banks | 128 | 16 | 11 | ||||||||
Total interest income | 7,060 | 4,851 | 5,357 | ||||||||
INTEREST EXPENSE: | |||||||||||
Deposits | 651 | 160 | 509 | ||||||||
Short-term borrowed funds | 23 | 1 | 2 | ||||||||
Long-term borrowed funds | 374 | 178 | 260 | ||||||||
Total interest expense | 1,048 | 339 | 771 | ||||||||
Net interest income | 6,012 | 4,512 | 4,586 | ||||||||
Provision (benefit) for credit losses | 474 | (411) | 1,616 | ||||||||
Net interest income after provision (benefit) for credit losses | 5,538 | 4,923 | 2,970 | ||||||||
NONINTEREST INCOME: | |||||||||||
Service charges and fees | 420 | 409 | 403 | ||||||||
Capital markets fees | 368 | 428 | 250 | ||||||||
Card fees | 273 | 250 | 217 | ||||||||
Mortgage banking fees | 261 | 434 | 915 | ||||||||
Trust and investment services fees | 249 | 239 | 203 | ||||||||
Foreign exchange and derivative products | 188 | 120 | 120 | ||||||||
Letter of credit and loan fees | 159 | 156 | 140 | ||||||||
Securities gains, net | 9 | 10 | 4 | ||||||||
Other income | 82 | 89 | 67 | ||||||||
Total noninterest income | 2,009 | 2,135 | 2,319 | ||||||||
NONINTEREST EXPENSE: | |||||||||||
Salaries and employee benefits | 2,549 | 2,132 | 2,123 | ||||||||
Outside services | 700 | 595 | 553 | ||||||||
Equipment and software | 648 | 610 | 565 | ||||||||
Occupancy | 410 | 333 | 331 | ||||||||
Other operating expense | 585 | 411 | 419 | ||||||||
Total noninterest expense | 4,892 | 4,081 | 3,991 | ||||||||
Income before income tax expense | 2,655 | 2,977 | 1,298 | ||||||||
Income tax expense | 582 | 658 | 241 | ||||||||
NET INCOME | $2,073 | $2,319 | $1,057 | ||||||||
Net income available to common stockholders | $1,960 | $2,206 | $950 | ||||||||
Weighted-average common shares outstanding: | |||||||||||
Basic | 475,959,815 | 425,669,451 | 427,062,537 | ||||||||
Diluted | 477,803,142 | 427,435,818 | 428,157,780 | ||||||||
Per common share information: | |||||||||||
Basic earnings | $4.12 | $5.18 | $2.22 | ||||||||
Diluted earnings | 4.10 | 5.16 | 2.22 |
Citizens Financial Group, Inc. | 87 |
Year Ended December 31, | |||||||||||
(in millions) | 2022 | 2021 | 2020 | ||||||||
Net income | $2,073 | $2,319 | $1,057 | ||||||||
Other comprehensive income (loss): | |||||||||||
Net unrealized derivative instruments gains (losses) arising during the periods, net of income taxes of ($466), ($17) and $33, respectively | (1,340) | (49) | 97 | ||||||||
Reclassification adjustment for net derivative (gains) losses included in net income, net of income taxes of $30, ($34) and ($38), respectively | 85 | (101) | (111) | ||||||||
Net unrealized debt securities gains (losses) arising during the periods, net of income taxes of ($868), ($172) and $124, respectively | (2,608) | (528) | 382 | ||||||||
Reclassification of net debt securities (gains) losses to net income, net of income taxes of ($2), ($2) and ($1), respectively | (7) | (8) | (3) | ||||||||
Employee benefit plans: | |||||||||||
Actuarial gain (loss), net of income taxes of ($15), $19 and ($10), respectively | (37) | 55 | (27) | ||||||||
Reclassification of actuarial (gain) loss to net income, net of income taxes of $2, $7 and $4, respectively | 12 | 26 | 13 | ||||||||
Total other comprehensive income (loss), net of income taxes | (3,895) | (605) | 351 | ||||||||
Total comprehensive income (loss) | ($1,822) | $1,714 | $1,408 |
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, 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 | |||||||||||||||||||||||
Dividends to common stockholders | — | — | — | — | — | (779) | — | — | (779) | |||||||||||||||||||||||
Dividends to preferred stockholders | — | — | — | — | — | (113) | — | — | (113) | |||||||||||||||||||||||
Issuance of common stock - business acquisition | — | — | 72 | — | 3,036 | — | — | — | 3,036 | |||||||||||||||||||||||
Treasury stock purchased | — | — | (4) | — | — | — | (153) | — | (153) | |||||||||||||||||||||||
Share-based compensation plans | — | — | 2 | — | 77 | — | — | — | 77 | |||||||||||||||||||||||
Employee stock purchase plan | — | — | — | — | 24 | — | — | — | 24 | |||||||||||||||||||||||
Total comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 2,073 | — | — | 2,073 | |||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | (3,895) | (3,895) | |||||||||||||||||||||||
Total comprehensive income (loss) | — | — | — | — | — | 2,073 | — | (3,895) | (1,822) | |||||||||||||||||||||||
Balance at December 31, 2022 | 2 | $2,014 | 492 | $6 | $22,142 | $9,159 | ($5,071) | ($4,560) | $23,690 |
Citizens Financial Group, Inc. | 89 |
Year Ended December 31, | |||||||||||
(in millions) | 2022 | 2021 | 2020 | ||||||||
OPERATING ACTIVITIES | |||||||||||
Net income | $2,073 | $2,319 | $1,057 | ||||||||
Adjustments to reconcile net income to net change in cash due to operating activities: | |||||||||||
Provision (benefit) for credit losses | 474 | (411) | 1,616 | ||||||||
Net change in loans held for sale | 1,733 | 1,085 | 32 | ||||||||
Depreciation, amortization and accretion | 565 | 625 | 578 | ||||||||
Deferred income taxes | 57 | (429) | (238) | ||||||||
Share-based compensation | 84 | 59 | 48 | ||||||||
Net gain on sale of assets | (9) | (11) | (4) | ||||||||
Net (increase) decrease in other assets | (1,894) | (1,719) | (3,979) | ||||||||
Net increase (decrease) in other liabilities | 1,036 | 757 | 1,001 | ||||||||
Net change due to operating activities | 4,119 | 2,275 | 111 | ||||||||
INVESTING ACTIVITIES | |||||||||||
Investment securities: | |||||||||||
Purchases of debt securities available for sale | (10,776) | (12,406) | (9,271) | ||||||||
Proceeds from maturities and paydowns of debt securities available for sale | 3,422 | 7,810 | 6,943 | ||||||||
Proceeds from sales of debt securities available for sale | 1,178 | 790 | 585 | ||||||||
Proceeds from maturities and paydowns of debt securities held to maturity | 1,035 | 1,006 | 897 | ||||||||
Net (increase) decrease in interest-bearing deposits in banks | 13 | (10) | (9) | ||||||||
Acquisitions, net of cash acquired(1) | (255) | (165) | (3) | ||||||||
Purchases of loans | (1,007) | (3,778) | (3,315) | ||||||||
Sales of loans | 2,677 | 934 | 3,014 | ||||||||
Net (increase) decrease in loans and leases | (7,927) | (3,177) | (4,794) | ||||||||
Capital expenditures, net | (126) | (124) | (118) | ||||||||
Purchases of bank-owned life insurance | (100) | (1,050) | — | ||||||||
Other | (771) | (316) | (65) | ||||||||
Net change due to investing activities | (12,637) | (10,486) | (6,136) | ||||||||
FINANCING ACTIVITIES | |||||||||||
Net increase (decrease) in deposits | 6,146 | 7,197 | 21,851 | ||||||||
Net increase (decrease) in short-term borrowed funds | (95) | (154) | (39) | ||||||||
Proceeds from issuance of long-term borrowed funds | 24,617 | — | 8,323 | ||||||||
Repayments of long-term borrowed funds | (19,691) | (1,352) | (14,022) | ||||||||
Treasury stock purchased | (153) | (295) | (270) | ||||||||
Net proceeds from issuance of preferred stock | — | 296 | 395 | ||||||||
Redemption of preferred stock | — | (250) | — | ||||||||
Dividends declared and paid to common stockholders | (779) | (670) | (672) | ||||||||
Dividends declared and paid to preferred stockholders | (113) | (113) | (98) | ||||||||
Premium paid to exchange debt | — | (1) | (80) | ||||||||
Payments of employee tax withholding for share-based compensation | (25) | (22) | (16) | ||||||||
Net change due to financing activities | 9,907 | 4,636 | 15,372 | ||||||||
Net change in cash and cash equivalents(2) | 1,389 | (3,575) | 9,347 | ||||||||
Cash and cash equivalents at beginning of period(2) | 9,158 | 12,733 | 3,386 | ||||||||
Cash and cash equivalents at end of period(2) | $10,547 | $9,158 | $12,733 | ||||||||
Citizens Financial Group, Inc. | 90 |
Year Ended December 31, | |||||||||||
(in millions) | 2022 | 2021 | 2020 | ||||||||
Supplemental disclosures: | |||||||||||
Interest paid | $989 | $347 | $837 | ||||||||
Income taxes paid | 183 | 1,247 | 261 | ||||||||
Non-cash items: | |||||||||||
Transfer of securities from available for sale to held to maturity | $8,563 | $— | $813 | ||||||||
Loans securitized and transferred to securities available for sale | 143 | 260 | 956 | ||||||||
Loans securitized and transferred to securities held to maturity | — | — | 111 | ||||||||
Stock issued for share-based compensation plans | 77 | 43 | 30 | ||||||||
Stock issued for Employee Stock Purchase Plan | 24 | 22 | 19 | ||||||||
Investors Acquisition: | |||||||||||
Fair value of assets acquired, excluding cash and cash equivalents | 27,113 | — | — | ||||||||
Goodwill and other intangible assets | 992 | — | — | ||||||||
Fair value of liabilities assumed | 24,982 | — | — | ||||||||
Common stock issued | 3,036 | — | — | ||||||||
Replacement equity awards | 19 | — | — |
Citizens Financial Group, Inc. | 91 |
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 |
Pronouncement | Summary of Guidance | Effects on Financial Statements | ||||||
Reference Rate Reform - Deferral of the Sunset Date December 2022 | •This standard was effective upon issuance. •Deferred the sunset date of the temporary relief provided by ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting from December 31, 2022 to December 31, 2024. | •The Company adopted this standard upon issuance. •Adoption did not have a material impact on the Company’s Consolidated Financial Statements. |
Citizens Financial Group, Inc. | 92 |
Citizens Financial Group, Inc. | 93 |
(in millions, except share and per share data) | April 6, 2022 | ||||
Consideration | |||||
CFG common shares issued | 72,148,855 | ||||
CFG share price on April 6, 2022 | $42.08 | ||||
Fair value of consideration for outstanding common stock | $3,036 | ||||
Cash paid | 355 | ||||
Consideration related to equity awards | 19 | ||||
Fair value of merger consideration | 3,410 | ||||
Assets acquired | |||||
Cash and equivalents | 287 | ||||
Investment securities | 3,826 | ||||
Loans held for sale | 2,162 | ||||
Net loans and leases | 20,139 | ||||
Premises and equipment | 62 | ||||
Core deposit intangible and other intangible assets | 119 | ||||
Other assets | 924 | ||||
Total assets acquired | 27,519 | ||||
Liabilities assumed | |||||
Deposits | 20,217 | ||||
Borrowed funds | 4,097 | ||||
Other liabilities | 668 | ||||
Total liabilities assumed | 24,982 | ||||
Less: Net assets | 2,537 | ||||
Goodwill | $873 |
April 6, 2022 | ||||||||
(in millions) | Unpaid Principal Balance | Fair Value | ||||||
Commercial and industrial | $3,021 | $2,899 | ||||||
Commercial real estate | 13,310 | 13,065 | ||||||
Leases | 9 | 9 | ||||||
Total commercial | 16,340 | 15,973 | ||||||
Residential mortgages | 3,949 | 3,889 | ||||||
Home equity | 267 | 273 | ||||||
Other retail | 4 | 4 | ||||||
Total retail | 4,220 | 4,166 | ||||||
Net loans and leases | $20,560 | $20,139 |
Citizens Financial Group, Inc. | 94 |
Citizens Financial Group, Inc. | 95 |
(in millions) | April 6, 2022 through December 31, 2022 | ||||
Net interest income | $627 | ||||
Noninterest income | 37 | ||||
Net income | 287 |
Year Ended December 31, | ||||||||
(in millions) | 2022 | 2021 | ||||||
Net interest income | $6,226 | $5,342 | ||||||
Noninterest income | 2,055 | 2,168 | ||||||
Net income(1) | 2,408 | 2,376 |
(in millions) | Year Ended December 31, 2022 | ||||
Provision for credit losses(1) | $145 | ||||
Salaries and employee benefits(2) | 83 | ||||
Outside services(3) | 61 | ||||
Mark-to-market losses on LHFS portfolio(4) | 31 | ||||
Other operating expense | 15 | ||||
Total acquisition-related costs | $335 |
Citizens Financial Group, Inc. | 96 |
(in millions) | April 6, 2022 | ||||
Principal balance | $4,685 | ||||
ALLL at acquisition | (101) | ||||
Non-credit discount | (72) | ||||
Purchase price | $4,512 |
Citizens Financial Group, Inc. | 97 |
December 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||
(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 | $3,678 | $1 | ($193) | $3,486 | $11 | $— | $— | $11 | |||||||||||||||||||||
State and political subdivisions | 2 | — | — | 2 | 2 | — | — | 2 | |||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | 21,250 | 10 | (2,198) | 19,062 | 24,607 | 210 | (375) | 24,442 | |||||||||||||||||||||
Other/non-agency | 280 | — | (29) | 251 | 397 | 9 | (1) | 405 | |||||||||||||||||||||
Total mortgage-backed securities | 21,530 | 10 | (2,227) | 19,313 | 25,004 | 219 | (376) | 24,847 | |||||||||||||||||||||
Collateralized loan obligations | 1,248 | — | (42) | 1,206 | 1,208 | — | (1) | 1,207 | |||||||||||||||||||||
Total debt securities available for sale, at fair value | $26,458 | $11 | ($2,462) | $24,007 | $26,225 | $219 | ($377) | $26,067 | |||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | $9,253 | $4 | ($751) | $8,506 | $1,505 | $52 | $— | $1,557 | |||||||||||||||||||||
Total mortgage-backed securities | 9,253 | 4 | (751) | 8,506 | 1,505 | 52 | — | 1,557 | |||||||||||||||||||||
Asset-backed securities | 581 | — | (45) | 536 | 737 | 2 | (7) | 732 | |||||||||||||||||||||
Total debt securities held to maturity | $9,834 | $4 | ($796) | $9,042 | $2,242 | $54 | ($7) | $2,289 | |||||||||||||||||||||
Equity securities, at cost | $1,058 | $— | $— | $1,058 | $624 | $— | $— | $624 | |||||||||||||||||||||
Equity securities, at fair value | 153 | — | — | 153 | 109 | — | — | 109 |
Citizens Financial Group, Inc. | 98 |
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 | $— | $2,114 | $1,564 | $— | $3,678 | ||||||||||||
State and political subdivisions | — | — | — | 2 | 2 | ||||||||||||
Mortgage-backed securities: | |||||||||||||||||
Federal agencies and U.S. government sponsored entities | 1 | 1,149 | 2,889 | 17,211 | 21,250 | ||||||||||||
Other/non-agency | — | — | — | 280 | 280 | ||||||||||||
Collateralized loan obligations | — | — | 24 | 1,224 | 1,248 | ||||||||||||
Total debt securities available for sale | 1 | 3,263 | 4,477 | 18,717 | 26,458 | ||||||||||||
Mortgage-backed securities: | |||||||||||||||||
Federal agencies and U.S. government sponsored entities | — | — | — | 9,253 | 9,253 | ||||||||||||
Asset-backed securities | — | 581 | — | — | 581 | ||||||||||||
Total debt securities held to maturity | — | 581 | — | 9,253 | 9,834 | ||||||||||||
Total amortized cost of debt securities | $1 | $3,844 | $4,477 | $27,970 | $36,292 | ||||||||||||
Fair value: | |||||||||||||||||
U.S. Treasury and other | $— | $2,010 | $1,476 | $— | $3,486 | ||||||||||||
State and political subdivisions | — | — | — | 2 | 2 | ||||||||||||
Mortgage-backed securities: | |||||||||||||||||
Federal agencies and U.S. government sponsored entities | 1 | 1,097 | 2,691 | 15,273 | 19,062 | ||||||||||||
Other/non-agency | — | — | — | 251 | 251 | ||||||||||||
Collateralized loan obligations | — | — | 23 | 1,183 | 1,206 | ||||||||||||
Total debt securities available for sale | 1 | 3,107 | 4,190 | 16,709 | 24,007 | ||||||||||||
Mortgage-backed securities: | |||||||||||||||||
Federal agencies and U.S. government sponsored entities | — | — | — | 8,506 | 8,506 | ||||||||||||
Asset-backed securities | — | 536 | — | — | 536 | ||||||||||||
Total debt securities held to maturity | — | 536 | — | 8,506 | 9,042 | ||||||||||||
Total fair value of debt securities | $1 | $3,643 | $4,190 | $25,215 | $33,049 |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | ||||||||||||||
Gains | $13 | $15 | $6 | ||||||||||||||
Losses | (4) | (5) | (2) | ||||||||||||||
Securities gains, net | $9 | $10 | $4 | ||||||||||||||
Citizens Financial Group, Inc. | 99 |
December 31, 2022 | December 31, 2021 | ||||||||||||||||
(in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
Pledged against derivatives, to qualify for fiduciary powers, or to secure public and other deposits as required by law | $3,966 | $3,527 | $4,816 | $4,782 | |||||||||||||
Pledged as collateral for FHLB borrowing capacity | 244 | 217 | 325 | 333 | |||||||||||||
Pledged against repurchase agreements | — | — | 1 | 1 |
Citizens Financial Group, Inc. | 100 |
December 31, 2022 | ||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||
(in millions) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||||
US Treasury and other | $3,356 | ($193) | $— | $— | $3,356 | ($193) | ||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | 13,353 | (1,136) | 5,042 | (1,062) | 18,395 | (2,198) | ||||||||||||||||||||
Other/non-agency | 80 | (8) | 171 | (21) | 251 | (29) | ||||||||||||||||||||
Total mortgage-backed securities | 13,433 | (1,144) | 5,213 | (1,083) | 18,646 | (2,227) | ||||||||||||||||||||
Collateralized loan obligations | 785 | (26) | 421 | (16) | 1,206 | (42) | ||||||||||||||||||||
Total | $17,574 | ($1,363) | $5,634 | ($1,099) | $23,208 | ($2,462) |
December 31, 2021 | ||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||
(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 | 736 | (1) | — | — | 736 | (1) | ||||||||||||||||||||
Total | $14,990 | ($322) | $1,236 | ($55) | $16,226 | ($377) |
Citizens Financial Group, Inc. | 101 |
December 31, | |||||||||||
(in millions) | 2022 | 2021 | |||||||||
Commercial and industrial | $51,836 | $44,500 | |||||||||
Commercial real estate | 28,865 | 14,264 | |||||||||
Leases | 1,479 | 1,586 | |||||||||
Total commercial | 82,180 | 60,350 | |||||||||
Residential mortgages | 29,921 | 22,822 | |||||||||
Home equity | 14,043 | 12,015 | |||||||||
Automobile | 12,292 | 14,549 | |||||||||
Education | 12,808 | 12,997 | |||||||||
Other retail | 5,418 | 5,430 | |||||||||
Total retail | 74,482 | 67,813 | |||||||||
Total loans and leases | $156,662 | $128,163 |
December 31, 2022 | December 31, 2021 | ||||||||||||||||||||||
(in millions) | Residential Mortgages(1) | Commercial(2) | Total | Residential Mortgages(1) | Commercial(2) | Total | |||||||||||||||||
Loans held for sale at fair value | $666 | $108 | $774 | $2,657 | $76 | $2,733 | |||||||||||||||||
Other loans held for sale | — | 208 | 208 | — | 735 | 735 |
Citizens Financial Group, Inc. | 102 |
(in millions) | December 31, 2022 | December 31, 2021 | |||||||||
Total future minimum lease rentals | $1,193 | $1,195 | |||||||||
Estimated residual value of leased equipment (non-guaranteed) | 413 | 521 | |||||||||
Initial direct costs | 5 | 6 | |||||||||
Unearned income | (132) | (136) | |||||||||
Total leases | $1,479 | $1,586 |
(in millions) | |||||
2023 | $334 | ||||
2024 | 247 | ||||
2025 | 193 | ||||
2026 | 144 | ||||
2027 | 122 | ||||
Thereafter | 153 | ||||
Total undiscounted future minimum lease rentals | $1,193 |
Citizens Financial Group, Inc. | 103 |
Citizens Financial Group, Inc. | 104 |
Citizens Financial Group, Inc. | 105 |
Year Ended December 31, 2022 | |||||||||||
(in millions) | Commercial | Retail | Total | ||||||||
Allowance for loan and lease losses, beginning of period | $821 | $937 | $1,758 | ||||||||
Allowance on PCD loans and leases at acquisition | 99 | 2 | 101 | ||||||||
Charge-offs(1) | (70) | (364) | (434) | ||||||||
Recoveries | 18 | 146 | 164 | ||||||||
Net charge-offs | (52) | (218) | (270) | ||||||||
Provision expense (benefit) for loans and leases(2) | 192 | 202 | 394 | ||||||||
Allowance for loan and lease losses, end of period | 1,060 | 923 | 1,983 | ||||||||
Allowance for unfunded lending commitments, beginning of period | 153 | 23 | 176 | ||||||||
Provision expense (benefit) for unfunded lending commitments | 53 | 27 | 80 | ||||||||
Allowance on PCD unfunded lending commitments at acquisition | 1 | — | 1 | ||||||||
Allowance for unfunded lending commitments, end of period | 207 | 50 | 257 | ||||||||
Total allowance for credit losses, end of period | $1,267 | $973 | $2,240 |
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. | 106 |
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 |
Citizens Financial Group, Inc. | 107 |
Term Loans by Origination Year | Revolving Loans | |||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior to 2018 | Within the Revolving Period | Converted to Term | Total | |||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $8,304 | $8,469 | $2,224 | $2,074 | $1,334 | $1,952 | $24,211 | $148 | $48,716 | |||||||||||||||||||||||||||||||||||||||||
Special Mention | 124 | 189 | 120 | 74 | 48 | 153 | 364 | — | 1,072 | |||||||||||||||||||||||||||||||||||||||||
Substandard | 150 | 218 | 203 | 255 | 99 | 349 | 597 | 14 | 1,885 | |||||||||||||||||||||||||||||||||||||||||
Doubtful | 10 | 14 | 1 | 5 | 41 | 14 | 76 | 2 | 163 | |||||||||||||||||||||||||||||||||||||||||
Total commercial and industrial | 8,588 | 8,890 | 2,548 | 2,408 | 1,522 | 2,468 | 25,248 | 164 | 51,836 | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 5,767 | 6,442 | 3,639 | 3,066 | 2,145 | 3,536 | 1,888 | 3 | 26,486 | |||||||||||||||||||||||||||||||||||||||||
Special Mention | 1 | 119 | 103 | 390 | 99 | 113 | 62 | — | 887 | |||||||||||||||||||||||||||||||||||||||||
Substandard | 92 | 18 | 79 | 253 | 350 | 610 | 23 | — | 1,425 | |||||||||||||||||||||||||||||||||||||||||
Doubtful | — | 2 | 9 | 55 | — | 1 | — | — | 67 | |||||||||||||||||||||||||||||||||||||||||
Total commercial real estate | 5,860 | 6,581 | 3,830 | 3,764 | 2,594 | 4,260 | 1,973 | 3 | 28,865 | |||||||||||||||||||||||||||||||||||||||||
Leases | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 263 | 363 | 250 | 99 | 128 | 345 | — | — | 1,448 | |||||||||||||||||||||||||||||||||||||||||
Special Mention | 4 | 5 | 2 | 6 | 1 | 3 | — | — | 21 | |||||||||||||||||||||||||||||||||||||||||
Substandard | — | 4 | 3 | 3 | — | — | — | — | 10 | |||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Total leases | 267 | 372 | 255 | 108 | 129 | 348 | — | — | 1,479 | |||||||||||||||||||||||||||||||||||||||||
Total commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 14,334 | 15,274 | 6,113 | 5,239 | 3,607 | 5,833 | 26,099 | 151 | 76,650 | |||||||||||||||||||||||||||||||||||||||||
Special Mention | 129 | 313 | 225 | 470 | 148 | 269 | 426 | — | 1,980 | |||||||||||||||||||||||||||||||||||||||||
Substandard | 242 | 240 | 285 | 511 | 449 | 959 | 620 | 14 | 3,320 | |||||||||||||||||||||||||||||||||||||||||
Doubtful | 10 | 16 | 10 | 60 | 41 | 15 | 76 | 2 | 230 | |||||||||||||||||||||||||||||||||||||||||
Total commercial | $14,715 | $15,843 | $6,633 | $6,280 | $4,245 | $7,076 | $27,221 | $167 | $82,180 |
Citizens Financial Group, Inc. | 108 |
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 | $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 | 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. | 109 |
Term Loans by Origination Year | Revolving Loans | |||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior to 2018 | Within the Revolving Period | Converted to Term | Total | |||||||||||||||||||||||||||||||||||||||||
Residential mortgages | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | $2,132 | $4,943 | $3,143 | $1,180 | $363 | $3,081 | $— | $— | $14,842 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 2,376 | 2,991 | 1,660 | 638 | 257 | 1,635 | — | — | 9,557 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 769 | 899 | 502 | 308 | 149 | 851 | — | — | 3,478 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 125 | 168 | 135 | 138 | 99 | 422 | — | — | 1,087 | |||||||||||||||||||||||||||||||||||||||||
<620 | 17 | 68 | 77 | 165 | 147 | 455 | — | — | 929 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 2 | 2 | 2 | 3 | 2 | 17 | — | — | 28 | |||||||||||||||||||||||||||||||||||||||||
Total residential mortgages | 5,421 | 9,071 | 5,519 | 2,432 | 1,017 | 6,461 | — | — | 29,921 | |||||||||||||||||||||||||||||||||||||||||
Home equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 4 | 5 | 2 | 5 | 6 | 110 | 4,958 | 267 | 5,357 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 2 | 2 | 1 | 4 | 6 | 97 | 4,350 | 274 | 4,736 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 1 | 1 | 1 | 6 | 11 | 114 | 2,296 | 234 | 2,664 | |||||||||||||||||||||||||||||||||||||||||
620-679 | — | 1 | 2 | 9 | 16 | 93 | 558 | 143 | 822 | |||||||||||||||||||||||||||||||||||||||||
<620 | — | — | 2 | 12 | 18 | 82 | 178 | 172 | 464 | |||||||||||||||||||||||||||||||||||||||||
Total home equity | 7 | 9 | 8 | 36 | 57 | 496 | 12,340 | 1,090 | 14,043 | |||||||||||||||||||||||||||||||||||||||||
Automobile | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 650 | 1,453 | 584 | 324 | 120 | 54 | — | — | 3,185 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 962 | 1,606 | 649 | 343 | 134 | 56 | — | — | 3,750 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 920 | 1,187 | 460 | 254 | 102 | 44 | — | — | 2,967 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 554 | 586 | 205 | 133 | 62 | 28 | — | — | 1,568 | |||||||||||||||||||||||||||||||||||||||||
<620 | 188 | 309 | 130 | 106 | 56 | 31 | — | — | 820 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 2 | — | — | — | — | — | — | — | 2 | |||||||||||||||||||||||||||||||||||||||||
Total automobile | 3,276 | 5,141 | 2,028 | 1,160 | 474 | 213 | — | — | 12,292 | |||||||||||||||||||||||||||||||||||||||||
Education | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 548 | 1,720 | 1,567 | 694 | 410 | 1,068 | — | — | 6,007 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 735 | 1,351 | 1,126 | 486 | 267 | 609 | — | — | 4,574 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 363 | 423 | 356 | 170 | 103 | 288 | — | — | 1,703 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 54 | 76 | 62 | 38 | 29 | 102 | — | — | 361 | |||||||||||||||||||||||||||||||||||||||||
<620 | 6 | 16 | 20 | 12 | 11 | 50 | — | — | 115 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 6 | — | — | — | — | 42 | — | — | 48 | |||||||||||||||||||||||||||||||||||||||||
Total education | 1,712 | 3,586 | 3,131 | 1,400 | 820 | 2,159 | — | — | 12,808 | |||||||||||||||||||||||||||||||||||||||||
Other retail | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 182 | 105 | 93 | 48 | 25 | 27 | 491 | — | 971 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 230 | 134 | 121 | 68 | 31 | 25 | 974 | 1 | 1,584 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 175 | 109 | 103 | 52 | 21 | 14 | 993 | 4 | 1,471 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 108 | 65 | 52 | 18 | 8 | 4 | 435 | 4 | 694 | |||||||||||||||||||||||||||||||||||||||||
<620 | 35 | 30 | 25 | 9 | 4 | 2 | 190 | 6 | 301 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 12 | 1 | 3 | — | — | — | 380 | 1 | 397 | |||||||||||||||||||||||||||||||||||||||||
Total other retail | 742 | 444 | 397 | 195 | 89 | 72 | 3,463 | 16 | 5,418 | |||||||||||||||||||||||||||||||||||||||||
Total retail | ||||||||||||||||||||||||||||||||||||||||||||||||||
800+ | 3,516 | 8,226 | 5,389 | 2,251 | 924 | 4,340 | 5,449 | 267 | 30,362 | |||||||||||||||||||||||||||||||||||||||||
740-799 | 4,305 | 6,084 | 3,557 | 1,539 | 695 | 2,422 | 5,324 | 275 | 24,201 | |||||||||||||||||||||||||||||||||||||||||
680-739 | 2,228 | 2,619 | 1,422 | 790 | 386 | 1,311 | 3,289 | 238 | 12,283 | |||||||||||||||||||||||||||||||||||||||||
620-679 | 841 | 896 | 456 | 336 | 214 | 649 | 993 | 147 | 4,532 | |||||||||||||||||||||||||||||||||||||||||
<620 | 246 | 423 | 254 | 304 | 236 | 620 | 368 | 178 | 2,629 | |||||||||||||||||||||||||||||||||||||||||
No FICO available(1) | 22 | 3 | 5 | 3 | 2 | 59 | 380 | 1 | 475 | |||||||||||||||||||||||||||||||||||||||||
Total retail | $11,158 | $18,251 | $11,083 | $5,223 | $2,457 | $9,401 | $15,803 | $1,106 | $74,482 |
Citizens Financial Group, Inc. | 110 |
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 | |||||||||||||||||||||||||||||||||||||||||
Total 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. | 111 |
Citizens Financial Group, Inc. | 112 |
December 31, 2022 | |||||||||||||||||||||||
Days Past Due and Accruing | |||||||||||||||||||||||
(in millions) | Current | 30-59 | 60-89 | 90+ | Nonaccrual | Total | Nonaccrual with no related ACL | ||||||||||||||||
Commercial and industrial | $51,389 | $152 | $25 | $21 | $249 | $51,836 | $64 | ||||||||||||||||
Commercial real estate | 28,665 | 51 | 45 | 1 | 103 | 28,865 | 7 | ||||||||||||||||
Leases | 1,475 | 4 | — | — | — | 1,479 | — | ||||||||||||||||
Total commercial | 81,529 | 207 | 70 | 22 | 352 | 82,180 | 71 | ||||||||||||||||
Residential mortgages(1) | 29,228 | 95 | 45 | 319 | 234 | 29,921 | 187 | ||||||||||||||||
Home equity | 13,719 | 64 | 19 | — | 241 | 14,043 | 185 | ||||||||||||||||
Automobile | 12,039 | 152 | 45 | — | 56 | 12,292 | 9 | ||||||||||||||||
Education | 12,718 | 36 | 17 | 4 | 33 | 12,808 | 3 | ||||||||||||||||
Other retail | 5,294 | 44 | 30 | 22 | 28 | 5,418 | 1 | ||||||||||||||||
Total retail | 72,998 | 391 | 156 | 345 | 592 | 74,482 | 385 | ||||||||||||||||
Total | $154,527 | $598 | $226 | $367 | $944 | $156,662 | $456 |
December 31, 2021 | |||||||||||||||||||||||
Days Past Due and Accruing | |||||||||||||||||||||||
(in millions) | Current | 30-59 | 60-89 | 90+ | Nonaccrual | 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 |
Citizens Financial Group, Inc. | 113 |
Citizens Financial Group, Inc. | 114 |
December 31, 2022 | |||||||||||||||||||||||||||||
Amortized Cost Basis | |||||||||||||||||||||||||||||
(dollars in millions) | Number of Contracts | Interest Rate Reduction(1) | Maturity Extension(2) | Other(3) | Total | ||||||||||||||||||||||||
Commercial and industrial | 29 | $— | $26 | $— | $26 | ||||||||||||||||||||||||
Total commercial | 29 | — | 26 | — | 26 | ||||||||||||||||||||||||
Residential mortgages | 1,884 | 52 | 96 | 260 | 408 | ||||||||||||||||||||||||
Home equity | 381 | 4 | 2 | 19 | 25 | ||||||||||||||||||||||||
Automobile | 601 | 2 | — | 4 | 6 | ||||||||||||||||||||||||
Education | 631 | — | — | 25 | 25 | ||||||||||||||||||||||||
Other retail | 2,320 | 10 | — | 1 | 11 | ||||||||||||||||||||||||
Total retail | 5,817 | 68 | 98 | 309 | 475 | ||||||||||||||||||||||||
Total | 5,846 | $68 | $124 | $309 | $501 |
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 |
Citizens Financial Group, Inc. | 115 |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | ||||||||||||||
Commercial TDRs | $— | $23 | $54 | ||||||||||||||
Retail TDRs(1) | 242 | 95 | 46 | ||||||||||||||
Total | $242 | $118 | $100 |
December 31, | |||||||||||||||||
(dollars in millions) | Useful Lives (years) | 2022 | 2021 | ||||||||||||||
Land and land improvements | 10 - 75 | $144 | $101 | ||||||||||||||
Buildings and leasehold improvements | 5 - 60 | 879 | 805 | ||||||||||||||
Furniture, fixtures and equipment | 4 - 20 | 622 | 589 | ||||||||||||||
Construction in progress | 61 | 77 | |||||||||||||||
Total premises and equipment, gross | 1,706 | 1,572 | |||||||||||||||
Accumulated depreciation | (862) | (804) | |||||||||||||||
Total premises and equipment, net | $844 | $768 |
Citizens Financial Group, Inc. | 116 |
Year | (in millions) | ||||
2023 | $226 | ||||
2024 | 199 | ||||
2025 | 158 | ||||
2026 | 90 | ||||
2027 | 33 | ||||
Thereafter | 7 | ||||
Total(1) | $713 |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | ||||||||||||||
Cash proceeds from residential mortgage loans sold with servicing retained | $17,025 | $37,039 | $33,221 | ||||||||||||||
Repurchased residential mortgages(1) | 87 | 1,381 | — | ||||||||||||||
Gain on sales(2) | 86 | 382 | 895 | ||||||||||||||
Contractually specified servicing, late and other ancillary fees(2) | 287 | 247 | 227 |
Citizens Financial Group, Inc. | 117 |
As of and for the Year Ended December 31, | |||||||||||
(in millions) | 2022 | 2021 | |||||||||
Fair value as of beginning of the period | $1,029 | $658 | |||||||||
Amounts capitalized | 279 | 419 | |||||||||
Servicing rights acquired(1) | 16 | — | |||||||||
Changes in unpaid principal balance during the period(2) | (137) | (212) | |||||||||
Changes in fair value during the period(3) | 343 | 164 | |||||||||
Fair value at end of the period | $1,530 | $1,029 |
(dollars in millions) | December 31, 2022 | December 31, 2021 | |||||||||
Fair value | $1,530 | $1,029 | |||||||||
Weighted average life (years) | 9.1 | 6.4 | |||||||||
Weighted average constant prepayment rate | 6.8% | 10.7% | |||||||||
Decline in fair value from 10% adverse change | $34 | $45 | |||||||||
Decline in fair value from 20% adverse change | $66 | $87 | |||||||||
Weighted average option adjusted spread | 629 bps | 596 bps | |||||||||
Decline in fair value from 10% adverse change | $43 | $25 | |||||||||
Decline in fair value from 20% adverse change | $86 | $50 |
(in millions) | December 31, 2022 | December 31, 2021 | |||||||||
Education | $602 | $761 | |||||||||
Commercial and industrial(1) | 91 | 80 |
Citizens Financial Group, Inc. | 118 |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | ||||||||||||||
Operating lease cost | $216 | $161 | $165 | ||||||||||||||
Short-term lease cost | 2 | 1 | 4 | ||||||||||||||
Variable lease cost | 7 | 8 | 8 | ||||||||||||||
Sublease income | (1) | (4) | (4) | ||||||||||||||
Total | $224 | $166 | $173 |
(dollars in millions) | December 31, 2022 | December 31, 2021 | Affected Line Item in Consolidated Balance Sheets | |||||||||||
Operating lease right-of-use assets | $1,019 | $766 | ||||||||||||
Operating lease liabilities | 1,066 | 800 | ||||||||||||
Weighted average remaining lease term (years) | 7 | 7 | — | |||||||||||
Weighted average discount rate | 2.74 | % | 2.34 | % | — |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | ||||||||||||||
Cash paid for amounts included in measurement of liabilities: | |||||||||||||||||
Operating cash flows from operating leases | $219 | $163 | $167 | ||||||||||||||
Supplemental non-cash information on lease liabilities arising from obtaining right-of-use assets: | |||||||||||||||||
Right-of-use assets in exchange for new operating lease liabilities | 408 | 79 | 268 |
Citizens Financial Group, Inc. | 119 |
(in millions) | Operating Leases | ||||
2023 | $207 | ||||
2024 | 206 | ||||
2025 | 178 | ||||
2026 | 142 | ||||
2027 | 123 | ||||
Thereafter | 324 | ||||
Total lease payments | 1,180 | ||||
Less: Interest | 114 | ||||
Present value of lease liabilities | $1,066 |
Citizens Financial Group, Inc. | 120 |
(in millions) | Consumer Banking | Commercial Banking | Total | ||||||||||||||
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 | ||||||||||||||
Business acquisitions | 415 | 642 | 1,057 | ||||||||||||||
Balance at December 31, 2022 | $2,673 | $5,500 | $8,173 |
Citizens Financial Group, Inc. | 121 |
(in millions) | Total | ||||
2023 | $41 | ||||
2024 | 34 | ||||
2025 | 31 | ||||
2026 | 28 | ||||
2027 | 24 |
December 31, | |||||||||||
(in millions) | 2022 | 2021 | |||||||||
Lending to special purpose entities included in loans and leases | $4,578 | $2,646 | |||||||||
LIHTC investment included in other assets | 2,230 | 1,978 | |||||||||
LIHTC unfunded commitments included in other liabilities | 1,046 | 927 | |||||||||
Asset-backed investments included in HTM securities | 581 | 737 | |||||||||
Renewable energy investments included in other assets | 374 | 429 |
Citizens Financial Group, Inc. | 122 |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | ||||||||||||||
Tax credits included in income tax expense | $236 | $202 | $159 | ||||||||||||||
Other tax benefits included in income tax expense | 59 | 48 | 38 | ||||||||||||||
Total tax benefits included in income tax expense | 295 | 250 | 197 | ||||||||||||||
Less: Amortization included in income tax expense | 247 | 208 | 168 | ||||||||||||||
Net benefit from affordable housing tax credit investments included in income tax expense | $48 | $42 | $29 |
Citizens Financial Group, Inc. | 123 |
December 31, | |||||||||||
(in millions) | 2022 | 2021 | |||||||||
Demand | $49,283 | $49,443 | |||||||||
Money market | 49,905 | 47,216 | |||||||||
Checking with interest | 39,721 | 30,409 | |||||||||
Savings | 29,805 | 22,030 | |||||||||
Term | 12,010 | 5,263 | |||||||||
Total deposits | $180,724 | $154,361 |
(in millions) | |||||
2023 | $10,723 | ||||
2024 | 991 | ||||
2025 | 156 | ||||
2026 | 74 | ||||
2027 | 63 | ||||
2028 and thereafter | 3 | ||||
Total | $12,010 |
(in millions) | |||||
Three months or less | $995 | ||||
After three months through six months | 101 | ||||
After six months through twelve months | 630 | ||||
After twelve months | 249 | ||||
Total term deposits | $1,975 |
December 31, | |||||||||||
(in millions) | 2022 | 2021 | |||||||||
Securities sold under agreements to repurchase | $— | $1 | |||||||||
Other short-term borrowed funds | 3 | 73 | |||||||||
Total short-term borrowed funds | $3 | $74 |
Citizens Financial Group, Inc. | 124 |
December 31, | |||||||||||
(in millions) | 2022 | 2021 | |||||||||
Parent Company: | |||||||||||
4.150% fixed-rate subordinated debt, due September 2022 | $— | $168 | |||||||||
3.750% fixed-rate subordinated debt, due July 2024 | 90 | 90 | |||||||||
4.023% fixed-rate subordinated debt, due October 2024 | 17 | 17 | |||||||||
4.350% fixed-rate subordinated debt, due August 2025 | 133 | 133 | |||||||||
4.300% fixed-rate subordinated debt, due December 2025 | 336 | 336 | |||||||||
2.850% fixed-rate senior unsecured notes, due July 2026 | 498 | 498 | |||||||||
2.500% fixed-rate senior unsecured notes, due February 2030 | 298 | 298 | |||||||||
3.250% fixed-rate senior unsecured notes, due April 2030 | 746 | 745 | |||||||||
3.750% fixed-rate reset subordinated debt, due February 2031 | 69 | 69 | |||||||||
4.300% fixed-rate reset subordinated debt, due February 2031 | 135 | 135 | |||||||||
4.350% fixed-rate reset subordinated debt, due February 2031 | 61 | 60 | |||||||||
2.638% fixed-rate subordinated debt, due September 2032 | 556 | 550 | |||||||||
5.641% fixed-rate reset subordinated debt, due May 2037 | 397 | — | |||||||||
CBNA’s Global Note Program: | |||||||||||
3.250% senior unsecured notes, due February 2022 | — | 700 | |||||||||
0.845% floating-rate senior unsecured notes, due February 2022(1) | — | 300 | |||||||||
1.318% floating-rate senior unsecured notes, due May 2022(1) | — | 250 | |||||||||
2.650% senior unsecured notes, due May 2022 | — | 503 | |||||||||
3.700% senior unsecured notes, due March 2023 | 497 | 512 | |||||||||
5.676% floating-rate senior unsecured notes, due March 2023(1) | 250 | 250 | |||||||||
2.250% senior unsecured notes, due April 2025 | 748 | 746 | |||||||||
4.119% fixed/floating-rate senior unsecured notes, due May 2025 | 648 | — | |||||||||
6.064% fixed/floating-rate senior unsecured notes, due October 2025 | 598 | — | |||||||||
3.750% senior unsecured notes, due February 2026 | 475 | 524 | |||||||||
4.575% fixed/floating-rate senior unsecured notes, due August 2028 | 797 | — | |||||||||
Additional Borrowings by CBNA and Other Subsidiaries: | |||||||||||
Federal Home Loan Bank advances, 4.283% weighted average rate, due through 2041(2) | 8,519 | 19 | |||||||||
Other | 19 | 29 | |||||||||
Total long-term borrowed funds | $15,887 | $6,932 |
Citizens Financial Group, Inc. | 125 |
(in millions) | Parent Company | CBNA and Other Subsidiaries | Consolidated | ||||||||
Year | |||||||||||
2023 | $— | $751 | $751 | ||||||||
2024 | 107 | 8,501 | 8,608 | ||||||||
2025 | 469 | 2,008 | 2,477 | ||||||||
2026 | 498 | 475 | 973 | ||||||||
2027 | — | 1 | 1 | ||||||||
2028 and thereafter | 2,262 | 815 | 3,077 | ||||||||
Total | 3,336 | 12,551 | 15,887 |
December 31, 2022 | December 31, 2021 | ||||||||||||||||||||||
(in millions) | Notional Amount | Derivative Assets | Derivative Liabilities | Notional Amount | Derivative Assets | Derivative Liabilities | |||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||
Interest rate contracts | $42,250 | $16 | $53 | $23,450 | $12 | $2 | |||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Interest rate contracts | 174,384 | 331 | 1,579 | 142,987 | 680 | 174 | |||||||||||||||||
Foreign exchange contracts | 29,475 | 527 | 519 | 21,336 | 263 | 231 | |||||||||||||||||
Commodities contracts | 1,103 | 953 | 942 | 514 | 508 | 505 | |||||||||||||||||
TBA contracts | 2,370 | 7 | 14 | 7,776 | 8 | 8 | |||||||||||||||||
Other contracts | 913 | 5 | 4 | 3,555 | 38 | 2 | |||||||||||||||||
Total derivatives not designated as hedging instruments | 1,823 | 3,058 | 1,497 | 920 | |||||||||||||||||||
Gross derivative fair values | 1,839 | 3,111 | 1,509 | 922 | |||||||||||||||||||
Less: Gross amounts offset in the Consolidated Balance Sheets(1) | (623) | (623) | (235) | (235) | |||||||||||||||||||
Less: Cash collateral applied(1) | (374) | (579) | (58) | (490) | |||||||||||||||||||
Total net derivative fair values presented in the Consolidated Balance Sheets | $842 | $1,909 | $1,216 | $197 |
Citizens Financial Group, Inc. | 126 |
Year Ended December 31, | ||||||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | Affected Line Item in the Consolidated Statements of Operations | ||||||||||||||||
Interest rate swaps hedging borrowed funds | ($69) | ($72) | $65 | Interest expense - long-term borrowed funds | ||||||||||||||||
Hedged long-term borrowed funds attributable to the risk being hedged | 68 | 71 | (63) | Interest expense - long-term borrowed funds | ||||||||||||||||
Interest rate swaps hedging loans held for sale | 13 | — | 17 | Interest and fees on other loans held for sale | ||||||||||||||||
Hedged loans held for sale attributable to the risk being hedged | (13) | — | (17) | Interest and fees on other loans held for sale | ||||||||||||||||
Interest rate swaps hedging debt securities available for sale | 29 | 68 | (104) | Interest income - investment securities | ||||||||||||||||
Hedged debt securities available for sale attributable to risk being hedged | (29) | (68) | 104 | Interest income - investment securities |
December 31, 2022 | December 31, 2021 | ||||||||||||||||
(in millions) | Debt securities available for sale | Long-term borrowed funds | Debt securities available for sale(1) | Long-term borrowed funds | |||||||||||||
Carrying amount of hedged assets | $— | $— | $6,042 | $— | |||||||||||||
Carrying amount of hedged liabilities | — | 972 | — | 2,239 | |||||||||||||
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items | — | (27) | 29 | 42 |
Citizens Financial Group, Inc. | 127 |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | ||||||||||||||
Amount of pre-tax net gains (losses) recognized in OCI | ($1,806) | ($66) | $130 | ||||||||||||||
Amount of pre-tax net gains (losses) reclassified from AOCI into interest income | (111) | 183 | 184 | ||||||||||||||
Amount of pre-tax net gains (losses) reclassified from AOCI into interest expense | (4) | (48) | (35) |
Amounts Recognized in Noninterest Income for the Year Ended December 31, | ||||||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | |||||||||||||||||
Economic hedge type: | ||||||||||||||||||||
Customer interest rate contracts | ($2,027) | ($374) | $1,234 | Foreign exchange and derivative products | ||||||||||||||||
Derivatives hedging interest rate risk | 2,090 | 401 | (1,188) | Foreign exchange and derivative products | ||||||||||||||||
Customer foreign exchange contracts | (180) | (207) | 216 | Foreign exchange and derivative products | ||||||||||||||||
Derivatives hedging foreign exchange risk | 313 | 305 | (263) | Foreign exchange and derivative products | ||||||||||||||||
Customer commodity contracts | 1,121 | 779 | (9) | Foreign exchange and derivative products | ||||||||||||||||
Derivatives hedging commodity price risk | (1,097) | (770) | 13 | Foreign exchange and derivative products | ||||||||||||||||
Residential loan commitments | (284) | (208) | 179 | Mortgage banking fees | ||||||||||||||||
Derivatives hedging residential loan commitments and mortgage loans held for sale, at fair value | 489 | 152 | (50) | Mortgage banking fees | ||||||||||||||||
Derivative contracts used to hedge residential MSRs | (313) | (150) | 311 | Mortgage banking fees | ||||||||||||||||
Total | $112 | ($72) | $443 |
Citizens Financial Group, Inc. | 128 |
Year Ended December 31, | |||||||||||||||||||||||
Qualified Plans | Non-Qualified Plans | ||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Fair value of plan assets as of January 1 | $1,390 | $1,343 | $— | $— | |||||||||||||||||||
Actual return on plan assets | (262) | 125 | — | — | |||||||||||||||||||
Employer contributions | — | — | 8 | 8 | |||||||||||||||||||
Benefits and administrative expenses paid | (76) | (78) | (8) | (8) | |||||||||||||||||||
Fair value of plan assets from Investors acquisition | 130 | — | — | — | |||||||||||||||||||
Fair value of plan assets as of December 31 | 1,182 | 1,390 | — | — | |||||||||||||||||||
Projected benefit obligation | 868 | 1,083 | 94 | 99 | |||||||||||||||||||
Pension asset (obligation) | $314 | $307 | ($94) | ($99) | |||||||||||||||||||
Accumulated benefit obligation | $868 | $1,083 | $94 | $99 |
Citizens Financial Group, Inc. | 129 |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
Qualified Plans | Non-Qualified Plans | Total | |||||||||||||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | ||||||||||||||||||||||||||
Service cost | $3 | $3 | $3 | $— | $— | $— | $3 | $3 | $3 | ||||||||||||||||||||||||||
Interest cost | 34 | 31 | 37 | 3 | 3 | 3 | 37 | 34 | 40 | ||||||||||||||||||||||||||
Expected return on plan assets | (93) | (85) | (82) | — | — | — | (93) | (85) | (82) | ||||||||||||||||||||||||||
Amortization of actuarial loss | 11 | 14 | 14 | 3 | 3 | 3 | 14 | 17 | 17 | ||||||||||||||||||||||||||
Settlement | — | 15 | — | — | — | — | — | 15 | — | ||||||||||||||||||||||||||
Net periodic pension (income) cost(1) | (45) | (22) | (28) | 6 | 6 | 6 | (39) | (16) | (22) | ||||||||||||||||||||||||||
Net actuarial loss (gain) | 71 | (73) | 29 | (19) | (1) | 8 | 52 | (74) | 37 | ||||||||||||||||||||||||||
Amortization of net actuarial loss | (11) | (14) | (14) | (3) | (3) | (3) | (14) | (17) | (17) | ||||||||||||||||||||||||||
Settlement | — | (15) | — | — | — | — | — | (15) | — | ||||||||||||||||||||||||||
Total gain (loss) recognized in other comprehensive income (loss) | 60 | (102) | 15 | (22) | (4) | 5 | 38 | (106) | 20 | ||||||||||||||||||||||||||
Total (loss) gain recognized in net periodic pension (income) cost and other comprehensive income (loss) | $15 | ($124) | ($13) | ($16) | $2 | $11 | ($1) | ($122) | ($2) |
(in millions) | |||||
Expected benefit payments by fiscal year ending: | |||||
December 31, 2023 | $70 | ||||
December 31, 2024 | 71 | ||||
December 31, 2025 | 73 | ||||
December 31, 2026 | 74 | ||||
December 31, 2027 | 75 | ||||
December 31, 2028 - 2032 | 369 |
Citizens Financial Group, Inc. | 130 |
(in millions) | Net Unrealized Gains (Losses) on Derivatives | Net Unrealized Gains (Losses) on Debt Securities | Employee Benefit Plans | Total AOCI | |||||||||||||||||||||||||
Balance at January 1, 2020 | $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) | |||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (1,340) | (2,608) | (37) | (3,985) | |||||||||||||||||||||||||
Amounts reclassified to the Consolidated Statements of Operations | 85 | (7) | 12 | 90 | |||||||||||||||||||||||||
Net other comprehensive income (loss) | (1,255) | (2,615) | (25) | (3,895) | |||||||||||||||||||||||||
Balance at December 31, 2022 | ($1,416) | ($2,771) | ($373) | ($4,560) | |||||||||||||||||||||||||
Primary location in the Consolidated Statements of Operations of amounts reclassified from AOCI | Net interest income | Securities gains, net | Other operating expense |
December 31, | ||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||
(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 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 | 300,000 | 296 | |||||||||||||||||||||
Total | 2,050,000 | $2,014 | 2,050,000 | $2,014 |
Citizens Financial Group, Inc. | 131 |
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, | ||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||
(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 | $1.62 | $779 | $779 | $1.56 | $670 | $670 | $1.56 | $672 | $672 | |||||||||||||||||||||||||||||
Preferred stock | ||||||||||||||||||||||||||||||||||||||
Series A | $— | $— | $— | $20.99 | $5 | $8 | $62.59 | $15 | $13 | |||||||||||||||||||||||||||||
Series B | 60.00 | 18 | 18 | 60.00 | 18 | 18 | 60.00 | 18 | 18 | |||||||||||||||||||||||||||||
Series C | 63.75 | 19 | 19 | 63.75 | 19 | 19 | 63.75 | 19 | 19 | |||||||||||||||||||||||||||||
Series D | 63.50 | 19 | 19 | 63.50 | 18 | 18 | 63.50 | 19 | 19 | |||||||||||||||||||||||||||||
Series E | 50.00 | 22 | 22 | 50.00 | 23 | 23 | 50.00 | 23 | 21 | |||||||||||||||||||||||||||||
Series F | 56.50 | 23 | 23 | 56.50 | 23 | 23 | 33.27 | 13 | 8 | |||||||||||||||||||||||||||||
Series G | 40.00 | 12 | 12 | 22.78 | 7 | 4 | — | — | — | |||||||||||||||||||||||||||||
Total preferred stock | $113 | $113 | $113 | $113 | $107 | $98 | ||||||||||||||||||||||||||||||||
Citizens Financial Group, Inc. | 132 |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||
Units | Weighted-Average Grant Price | Units | Weighted-Average Grant Price | Units | Weighted-Average Grant Price | ||||||||||||||||||||||||||||||
Outstanding, January 1 | 3,502,956 | $38.23 | 3,496,231 | $34.37 | 3,000,224 | $36.71 | |||||||||||||||||||||||||||||
Assumed | — | — | 82,013 | 49.95 | — | — | |||||||||||||||||||||||||||||
Granted | 1,844,352 | 48.12 | 1,417,370 | 44.97 | 1,947,902 | 32.64 | |||||||||||||||||||||||||||||
Vested & Distributed | (1,359,543) | 37.47 | (1,400,722) | 38.88 | (1,384,091) | 38.59 | |||||||||||||||||||||||||||||
Forfeited | (111,164) | 43.36 | (91,936) | 35.00 | (67,804) | 35.89 | |||||||||||||||||||||||||||||
Outstanding, December 31 | 3,876,601 | $43.06 | 3,502,956 | $38.23 | 3,496,231 | $34.37 |
Citizens Financial Group, Inc. | 133 |
December 31, | |||||||||||
(in millions) | 2022 | 2021 | |||||||||
Commitments to extend credit | $96,076 | $84,206 | |||||||||
Letters of credit | 2,119 | 1,998 | |||||||||
Risk participation agreements | 4 | 39 | |||||||||
Loans sold with recourse | 92 | 82 | |||||||||
Marketing rights | 23 | 26 | |||||||||
Total | $98,314 | $86,351 |
Citizens Financial Group, Inc. | 134 |
Citizens Financial Group, Inc. | 135 |
December 31, 2022 | December 31, 2021 | ||||||||||||||||||||||
(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 | $666 | $656 | $10 | $2,657 | $2,591 | $66 | |||||||||||||||||
Commercial and industrial, and commercial real estate loans held for sale, at fair value | 108 | 127 | (19) | 76 | 79 | (3) |
Citizens Financial Group, Inc. | 136 |
Citizens Financial Group, Inc. | 137 |
Citizens Financial Group, Inc. | 138 |
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||
Debt securities available for sale: | ||||||||||||||
Mortgage-backed securities | $19,313 | $— | $19,313 | $— | ||||||||||
Collateralized loan obligations | 1,206 | — | 1,206 | — | ||||||||||
State and political subdivisions | 2 | — | 2 | — | ||||||||||
U.S. Treasury and other | 3,486 | 3,486 | — | — | ||||||||||
Total debt securities available for sale | 24,007 | 3,486 | 20,521 | — | ||||||||||
Loans held for sale, at fair value: | ||||||||||||||
Residential loans held for sale | 666 | — | 666 | — | ||||||||||
Commercial loans held for sale | 108 | — | 108 | — | ||||||||||
Total loans held for sale, at fair value | 774 | — | 774 | — | ||||||||||
Mortgage servicing rights | 1,530 | — | — | 1,530 | ||||||||||
Derivative assets: | ||||||||||||||
Interest rate contracts | 347 | — | 347 | — | ||||||||||
Foreign exchange contracts | 527 | — | 527 | — | ||||||||||
Commodities contracts | 953 | — | 953 | — | ||||||||||
TBA contracts | 7 | — | 7 | — | ||||||||||
Other contracts | 5 | — | — | 5 | ||||||||||
Total derivative assets | 1,839 | — | 1,834 | 5 | ||||||||||
Equity securities, at fair value(1) | 110 | 110 | — | — | ||||||||||
Total assets | $28,260 | $3,596 | $23,129 | $1,535 | ||||||||||
Derivative liabilities: | ||||||||||||||
Interest rate contracts | $1,632 | $— | $1,632 | $— | ||||||||||
Foreign exchange contracts | 519 | — | 519 | — | ||||||||||
Commodities contracts | 942 | — | 942 | — | ||||||||||
TBA contracts | 14 | — | 14 | — | ||||||||||
Other contracts | 4 | — | — | 4 | ||||||||||
Total derivative liabilities | 3,111 | — | 3,107 | 4 | ||||||||||
Total liabilities | $3,111 | $— | $3,107 | $4 |
Citizens Financial Group, Inc. | 139 |
(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 | $— |
For the Year Ended December 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
(in millions) | Mortgage Servicing Rights | Other Derivative Contracts | Mortgage Servicing Rights | Other Derivative Contracts | |||||||||||||||||||
Beginning balance | $1,029 | $38 | $658 | $197 | |||||||||||||||||||
Issuances | 279 | 93 | 419 | 377 | |||||||||||||||||||
Acquisitions(1) | 16 | — | — | — | |||||||||||||||||||
Settlements(2) | (137) | 154 | (212) | (328) | |||||||||||||||||||
Changes in fair value during the period recognized in earnings(3) | 343 | (284) | 164 | (208) | |||||||||||||||||||
Ending balance | $1,530 | $1 | $1,029 | $38 |
Citizens Financial Group, Inc. | 140 |
As of December 31, 2022 | |||||||||||
Valuation Technique | Unobservable Input | Range (Weighted Average) | |||||||||
Mortgage servicing rights | Discounted Cash Flow | Constant prepayment rate | 6.19-17.80% CPR (6.80% CPR) | ||||||||
Option adjusted spread | 398-1,058 bps (629 bps) | ||||||||||
Other derivative contracts | Internal Model | Pull through rate | 28.62-99.90% (83.71%) | ||||||||
MSR value | (1.60)-144.84 bps (95.80 bps) |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | ||||||||||||||
Collateral-dependent loans | ($4) | ($27) | ($82) |
December 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Collateral-dependent loans | $582 | $— | $582 | $— | $645 | $— | $645 | $— |
December 31, 2022 | |||||||||||||||||||||||||||||||||||
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 | $9,834 | $9,042 | $— | $— | $9,253 | $8,506 | $581 | $536 | |||||||||||||||||||||||||||
Other loans held for sale | 208 | 208 | — | — | — | — | 208 | 208 | |||||||||||||||||||||||||||
Loans and leases | 156,662 | 151,601 | — | — | 582 | 582 | 156,080 | 151,019 | |||||||||||||||||||||||||||
Other assets | 1,058 | 1,058 | — | — | 1,038 | 1,038 | 20 | 20 | |||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||
Deposits | 180,724 | 180,566 | — | — | 180,724 | 180,566 | — | — | |||||||||||||||||||||||||||
Short-term borrowed funds | 3 | 3 | — | — | 3 | 3 | — | — | |||||||||||||||||||||||||||
Long-term borrowed funds | 15,887 | 15,469 | — | — | 15,887 | 15,469 | — | — |
Citizens Financial Group, Inc. | 141 |
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 | — | — |
Year Ended December 31, 2022 | ||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | ||||||||||
Service charges and fees | $291 | $124 | $3 | $418 | ||||||||||
Card fees | 228 | 43 | — | 271 | ||||||||||
Capital markets fees | — | 341 | — | 341 | ||||||||||
Trust and investment services fees | 249 | 1 | — | 250 | ||||||||||
Other banking fees | 1 | 17 | 1 | 19 | ||||||||||
Total revenue from contracts with customers | $769 | $526 | $4 | $1,299 | ||||||||||
Total revenue from other sources(1) | 294 | 319 | 97 | 710 | ||||||||||
Total noninterest income | $1,063 | $845 | $101 | $2,009 |
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(1) | 466 | 241 | 103 | 810 | ||||||||||
Total noninterest income | $1,223 | $809 | $103 | $2,135 |
Citizens Financial Group, Inc. | 142 |
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(1) | 965 | 205 | 69 | 1,239 | ||||||||||
Total noninterest income | $1,655 | $595 | $69 | $2,319 |
Citizens Financial Group, Inc. | 143 |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | ||||||||||||||
Marketing | $166 | $111 | $100 | ||||||||||||||
Deposit insurance | 96 | 66 | 66 | ||||||||||||||
Other | 323 | 234 | 253 | ||||||||||||||
Other operating expense | $585 | $411 | $419 |
Citizens Financial Group, Inc. | 144 |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | ||||||||||||||
Income tax expense | $582 | $658 | $241 | ||||||||||||||
Tax effect of changes in OCI | (1,319) | (199) | 112 | ||||||||||||||
Total comprehensive income tax expense (benefit) | ($737) | $459 | $353 |
(in millions) | Current | Deferred | Total | ||||||||
Year Ended December 31, 2022 | |||||||||||
U.S. federal | $355 | $88 | $443 | ||||||||
State and local | 170 | (31) | 139 | ||||||||
Total | $525 | $57 | $582 | ||||||||
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, | ||||||||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||||||||
(in millions, except ratio data) | Amount | Rate | Amount | Rate | Amount | Rate | ||||||||||||||||||||
U.S. federal income tax expense and tax rate | $558 | 21.0 | % | $625 | 21.0 | % | $273 | 21.0 | % | |||||||||||||||||
Increase (decrease) resulting from: | ||||||||||||||||||||||||||
State and local income taxes (net of federal benefit) | 133 | 5.0 | 126 | 4.2 | 54 | 4.2 | ||||||||||||||||||||
Bank-owned life insurance | (19) | (0.7) | (14) | (0.5) | (12) | (0.9) | ||||||||||||||||||||
Tax-exempt interest | (8) | (0.3) | (7) | (0.2) | (10) | (0.7) | ||||||||||||||||||||
Tax advantaged investments (including related credits) | (102) | (3.8) | (95) | (3.2) | (68) | (5.3) | ||||||||||||||||||||
Other tax credits | (9) | (0.3) | (7) | (0.2) | (6) | (0.5) | ||||||||||||||||||||
Adjustments for uncertain tax positions | 1 | — | 3 | 0.1 | (1) | (0.1) | ||||||||||||||||||||
Non-deductible FDIC premiums | 20 | 0.7 | 14 | 0.5 | 14 | 1.1 | ||||||||||||||||||||
Legacy tax matters | 3 | 0.1 | — | — | (4) | (0.3) | ||||||||||||||||||||
Other | 5 | 0.2 | 13 | 0.4 | 1 | — | ||||||||||||||||||||
Total income tax expense and tax rate | $582 | 21.9 | % | $658 | 22.1 | % | $241 | 18.5 | % |
Citizens Financial Group, Inc. | 145 |
December 31, | |||||||||||
(in millions) | 2022 | 2021 | |||||||||
Deferred tax assets: | |||||||||||
Other comprehensive income | $1,546 | $227 | |||||||||
Allowance for credit losses | 511 | 448 | |||||||||
Federal and state net operating and capital loss carryforwards | 77 | 50 | |||||||||
Accrued expenses not currently deductible | 863 | 676 | |||||||||
Investment and other tax credit carryforwards | 131 | 110 | |||||||||
Other | 19 | — | |||||||||
Total deferred tax assets | 3,147 | 1,511 | |||||||||
Valuation allowance | (133) | (103) | |||||||||
Deferred tax assets, net of valuation allowance | 3,014 | 1,408 | |||||||||
Deferred tax liabilities: | |||||||||||
Leasing transactions | 287 | 331 | |||||||||
Amortization of intangibles | 413 | 379 | |||||||||
Depreciation | 470 | 256 | |||||||||
Pension and other employee compensation plans | 128 | 132 | |||||||||
Partnerships | 87 | 95 | |||||||||
Deferred Income | 12 | 85 | |||||||||
MSRs | 203 | 130 | |||||||||
Total deferred tax liabilities | 1,600 | 1,408 | |||||||||
Net deferred tax asset (liability) | $1,414 | $— |
Citizens Financial Group, Inc. | 146 |
December 31, | |||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | ||||||||||||||
Balance at the beginning of the year | $7 | $4 | $5 | ||||||||||||||
Gross increase for tax positions related to current year | — | 1 | — | ||||||||||||||
Gross increase for tax positions related to prior years | — | 3 | — | ||||||||||||||
Decrease for tax positions as a result of the lapse of the statutes of limitations | — | (1) | (1) | ||||||||||||||
Decrease for tax positions related to settlements with taxing authorities | (1) | — | — | ||||||||||||||
Balance at end of year | $6 | $7 | $4 |
Year Ended December 31, | |||||||||||||||||
(in millions, except share and per share data) | 2022 | 2021 | 2020 | ||||||||||||||
Numerator (basic and diluted): | |||||||||||||||||
Net income | $2,073 | $2,319 | $1,057 | ||||||||||||||
Less: Preferred stock dividends | 113 | 113 | 107 | ||||||||||||||
Net income available to common stockholders | $1,960 | $2,206 | $950 | ||||||||||||||
Denominator: | |||||||||||||||||
Weighted-average common shares outstanding - basic | 475,959,815 | 425,669,451 | 427,062,537 | ||||||||||||||
Dilutive common shares: share-based awards | 1,843,327 | 1,766,367 | 1,095,243 | ||||||||||||||
Weighted-average common shares outstanding - diluted | 477,803,142 | 427,435,818 | 428,157,780 | ||||||||||||||
Earnings per common share: | |||||||||||||||||
Basic | $4.12 | $5.18 | $2.22 | ||||||||||||||
Diluted(1) | 4.10 | 5.16 | 2.22 |
Citizens Financial Group, Inc. | 147 |
Actual | Required Minimum Capital | ||||||||||||||||
(in millions, except ratio data) | Amount | Ratio | Amount | Ratio(1) | |||||||||||||
As of December 31, 2022 | |||||||||||||||||
CET1 capital | |||||||||||||||||
CFG | $18,574 | 10.0 | % | $14,633 | 7.9 | % | |||||||||||
CBNA | 20,669 | 11.2 | 12,935 | 7.0 | |||||||||||||
Tier 1 capital | |||||||||||||||||
CFG | 20,588 | 11.1 | 17,411 | 9.4 | |||||||||||||
CBNA | 20,669 | 11.2 | 15,706 | 8.5 | |||||||||||||
Total capital | |||||||||||||||||
CFG | 23,755 | 12.8 | 21,116 | 11.4 | |||||||||||||
CBNA | 23,534 | 12.7 | 19,402 | 10.5 | |||||||||||||
Tier 1 leverage | |||||||||||||||||
CFG | 20,588 | 9.3 | 8,831 | 4.0 | |||||||||||||
CBNA | 20,669 | 9.4 | 8,807 | 4.0 | |||||||||||||
As of December 31, 2021 | |||||||||||||||||
CET1 capital | |||||||||||||||||
CFG | $15,656 | 9.9 | % | $12,548 | 7.9 | % | |||||||||||
CBNA | 17,039 | 10.7 | 11,099 | 7.0 | |||||||||||||
Tier 1 capital | |||||||||||||||||
CFG | 17,670 | 11.1 | 14,930 | 9.4 | |||||||||||||
CBNA | 17,039 | 10.7 | 13,477 | 8.5 | |||||||||||||
Total capital | |||||||||||||||||
CFG | 20,244 | 12.7 | 18,107 | 11.4 | |||||||||||||
CBNA | 19,600 | 12.4 | 16,648 | 10.5 | |||||||||||||
Tier 1 leverage | |||||||||||||||||
CFG | 17,670 | 9.7 | 7,272 | 4.0 | |||||||||||||
CBNA | 17,039 | 9.4 | 7,251 | 4.0 |
Citizens Financial Group, Inc. | 148 |
Citizens Financial Group, Inc. | 149 |
As of and for the Year Ended December 31, 2022 | |||||||||||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | |||||||||||||||||||
Net interest income | $4,043 | $2,103 | ($134) | $6,012 | |||||||||||||||||||
Noninterest income | 1,063 | 845 | 101 | 2,009 | |||||||||||||||||||
Total revenue | 5,106 | 2,948 | (33) | 8,021 | |||||||||||||||||||
Noninterest expense | 3,391 | 1,223 | 278 | 4,892 | |||||||||||||||||||
Profit (loss) before provision (benefit) for credit losses | 1,715 | 1,725 | (311) | 3,129 | |||||||||||||||||||
Provision (benefit) for credit losses | 226 | 46 | 202 | 474 | |||||||||||||||||||
Income (loss) before income tax expense (benefit) | 1,489 | 1,679 | (513) | 2,655 | |||||||||||||||||||
Income tax expense (benefit) | 381 | 375 | (174) | 582 | |||||||||||||||||||
Net income (loss) | $1,108 | $1,304 | ($339) | $2,073 | |||||||||||||||||||
Total average assets | $86,147 | $74,919 | $53,995 | $215,061 |
Citizens Financial Group, Inc. | 150 |
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 (benefit) for credit losses | 1,798 | 1,542 | (774) | 2,566 | |||||||||||||||||||
Provision (benefit) 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 (benefit) for credit losses | 2,002 | 1,378 | (466) | 2,914 | |||||||||||||||||||
Provision (benefit) 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. | 151 |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | ||||||||||||||
OPERATING INCOME: | |||||||||||||||||
Income from bank subsidiaries, excluding equity in undistributed income: | |||||||||||||||||
Dividends | $450 | $1,120 | $900 | ||||||||||||||
Interest | 39 | 35 | 42 | ||||||||||||||
Management and service fees | 69 | 64 | 54 | ||||||||||||||
Income from nonbank subsidiaries, excluding equity in undistributed income: | |||||||||||||||||
Dividends | 43 | 57 | 40 | ||||||||||||||
Interest | 3 | 2 | 4 | ||||||||||||||
All other operating income | 1 | 1 | 1 | ||||||||||||||
Total operating income | 605 | 1,279 | 1,041 | ||||||||||||||
OPERATING EXPENSE: | |||||||||||||||||
Salaries and employee benefits | 43 | 36 | 27 | ||||||||||||||
Interest expense | 125 | 119 | 120 | ||||||||||||||
All other expenses | 28 | 28 | 30 | ||||||||||||||
Total operating expense | 196 | 183 | 177 | ||||||||||||||
Income (loss) before taxes and undistributed income | 409 | 1,096 | 864 | ||||||||||||||
Income tax expense (benefit) | (13) | (16) | (16) | ||||||||||||||
Income before undistributed income of subsidiaries | 422 | 1,112 | 880 | ||||||||||||||
Equity in undistributed income (losses) of subsidiaries: | |||||||||||||||||
Bank | 1,724 | 1,188 | 170 | ||||||||||||||
Nonbank | (73) | 19 | 7 | ||||||||||||||
Net income | $2,073 | $2,319 | $1,057 | ||||||||||||||
Total other comprehensive income (loss), net of income taxes(1) | (3,895) | (605) | 351 | ||||||||||||||
Total comprehensive income (loss) | ($1,822) | $1,714 | $1,408 |
(in millions) | December 31, 2022 | December 31, 2021 | |||||||||
ASSETS: | |||||||||||
Cash and due from banks | $1,821 | $2,266 | |||||||||
Loans and advances to: | |||||||||||
Bank subsidiary | 1,153 | 1,148 | |||||||||
Nonbank subsidiaries | 135 | 150 | |||||||||
Investments in subsidiaries: | |||||||||||
Bank subsidiary | 23,674 | 22,742 | |||||||||
Nonbank subsidiaries | 302 | 325 | |||||||||
Other assets | 182 | 140 | |||||||||
Total assets | $27,267 | $26,771 | |||||||||
LIABILITIES: | |||||||||||
Long-term borrowed funds | $3,336 | $3,099 | |||||||||
Other liabilities | 241 | 252 | |||||||||
Total liabilities | 3,577 | 3,351 | |||||||||
Total stockholders’ equity | 23,690 | 23,420 | |||||||||
Total liabilities and stockholders’ equity | $27,267 | $26,771 |
Citizens Financial Group, Inc. | 152 |
Year Ended December 31, | |||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | ||||||||||||||
OPERATING ACTIVITIES | |||||||||||||||||
Net income | $2,073 | $2,319 | $1,057 | ||||||||||||||
Adjustments to reconcile net income to net change in cash due to operating activities: | |||||||||||||||||
Deferred income taxes | (11) | — | 17 | ||||||||||||||
Equity in undistributed income of subsidiaries | (1,651) | (1,207) | (177) | ||||||||||||||
Net increase (decrease) in other liabilities | (7) | 34 | 43 | ||||||||||||||
Net (increase) decrease in other assets | (44) | 12 | (41) | ||||||||||||||
Other operating, net | 92 | 67 | 48 | ||||||||||||||
Net change due to operating activities | 452 | 1,225 | 947 | ||||||||||||||
INVESTING ACTIVITIES | |||||||||||||||||
Investments in and advances to subsidiaries | (156) | (196) | (190) | ||||||||||||||
Repayment of investments in and advances to subsidiaries | 121 | 125 | 205 | ||||||||||||||
Acquisitions, net of cash acquired | (23) | (165) | — | ||||||||||||||
Other investing, net | (1) | (1) | (1) | ||||||||||||||
Net change due to investing activities | (59) | (237) | 14 | ||||||||||||||
FINANCING ACTIVITIES | |||||||||||||||||
Proceeds from issuance of long-term borrowed funds | 414 | — | 1,053 | ||||||||||||||
Repayments of long-term borrowed funds | (182) | (350) | (12) | ||||||||||||||
Treasury stock purchased | (153) | (295) | (270) | ||||||||||||||
Net proceeds from issuance of preferred stock | — | 296 | 395 | ||||||||||||||
Redemption of preferred stock | — | (250) | — | ||||||||||||||
Dividends declared and paid to common stockholders | (779) | (670) | (672) | ||||||||||||||
Dividends declared and paid to preferred stockholders | (113) | (113) | (98) | ||||||||||||||
Other financing, net | (25) | (20) | (95) | ||||||||||||||
Net change due to financing activities | (838) | (1,402) | 301 | ||||||||||||||
Net change in cash and due from banks | (445) | (414) | 1,262 | ||||||||||||||
Cash and due from banks at beginning of year | 2,266 | 2,680 | 1,418 | ||||||||||||||
Cash and due from banks at end of year | $1,821 | $2,266 | $2,680 |
Citizens Financial Group, Inc. | 153 |
Citizens Financial Group, Inc. | 154 |
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (#)(3) | Weighted-average exercise price of outstanding options, warrants and rights ($)(4) | Number of securities remaining available (excluding securities reflected in first column) (#)(5) | ||||||||
Equity compensation plans approved by security holders | 3,864,001 | — | 47,080,139 | ||||||||
Equity compensation plans not approved by security holders | — | — | — | ||||||||
Total(1)(2) | 3,864,001 | — | 47,080,139 |
Citizens Financial Group, Inc. | 155 |
Citizens Financial Group, Inc. | 156 |
Citizens Financial Group, Inc. | 157 |
Citizens Financial Group, Inc. | 158 |
Citizens Financial Group, Inc. | 159 |
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. | 160 |
Signature | Title | Date | |||||||||||||||
/s/ Bruce Van Saun | |||||||||||||||||
Bruce Van Saun | Chairman of the Board and Chief Executive Officer | February 17, 2023 | |||||||||||||||
(Principal Executive Officer and Director) | |||||||||||||||||
/s/ John F. Woods | |||||||||||||||||
John F. Woods | Vice Chairman and Chief Financial Officer | February 17, 2023 | |||||||||||||||
(Principal Financial Officer) | |||||||||||||||||
/s/ C. Jack Read | |||||||||||||||||
C. Jack Read | Executive Vice President, Chief Accounting Officer and Controller | February 17, 2023 | |||||||||||||||
(Principal Accounting Officer) | |||||||||||||||||
/s/ Lee Alexander | |||||||||||||||||
Lee Alexander | Director | February 17, 2023 | |||||||||||||||
/s/ Christine M. Cumming | |||||||||||||||||
Christine M. Cumming | Director | February 17, 2023 | |||||||||||||||
/s/ Kevin Cummings | |||||||||||||||||
Kevin Cummings | Director | February 17, 2023 | |||||||||||||||
/s/ William P. Hankowsky | |||||||||||||||||
William P. Hankowsky | Director | February 17, 2023 | |||||||||||||||
/s/ Edward J. Kelly III | |||||||||||||||||
Edward J. Kelly III | Director | February 17, 2023 | |||||||||||||||
/s/ Robert G. Leary | |||||||||||||||||
Robert G. Leary | Director | February 17, 2023 | |||||||||||||||
/s/ Terrance J. Lillis | |||||||||||||||||
Terrance J. Lillis | Director | February 17, 2023 | |||||||||||||||
/s/ Michele N. Siekerka | |||||||||||||||||
Michele N. Siekerka | Director | February 17, 2023 | |||||||||||||||
/s/ Shivan S. Subramaniam | |||||||||||||||||
Shivan S. Subramaniam | Director | February 17, 2023 | |||||||||||||||
/s/ Christopher J. Swift | |||||||||||||||||
Christopher J. Swift | Director | February 17, 2023 | |||||||||||||||
/s/ Wendy A. Watson | |||||||||||||||||
Wendy A. Watson | Director | February 17, 2023 | |||||||||||||||
/s/ Marita Zuraitis | |||||||||||||||||
Marita Zuraitis | Director | February 17, 2023 |
Citizens Financial Group, Inc. | 161 |
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, 2022 – 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 | ||||
College Raptor, Inc. | 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 | ||||
ICX Corporation | OH | ||||
Investor Financial Group Insurance Agency, Inc. | NJ | ||||
Investors Financial Group, Inc. | NJ | ||||
Investors Financial Services, Inc. | NJ | ||||
Investors Investment Corp. | NJ | ||||
JMP Asset Management Inc. | TX | ||||
JMP Asset Management LLC | TX | ||||
JMP Capital I Managing Member LLC | DE | ||||
JMP Group Inc. | DE | ||||
JMP Group LLC | DE | ||||
JMP Holding LLC | DE | ||||
JMP Investment Holdings LLC | DE | ||||
JMP Securities LLC | DE | ||||
Marathon Realty Investors, Inc. | RI | ||||
Mass Investment Corp. | RI |
Minuteman Investments Corporation | MA | ||||
MNBNY Holdings, Inc. | NY | ||||
Montgomery Service Corporation | PA | ||||
My Way Development, LLC | NJ | ||||
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 |