Citizens Financial Group Files Q2 2024 10-Q

TL;DR

CFG dropped its Q2 10-Q. Financials look steady, no major red flags.

AI Summary

Citizens Financial Group, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter of 2024. Key financial data and disclosures relevant to investors are presented, reflecting the company's ongoing business activities and regulatory compliance.

Why It Matters

This filing provides investors with a detailed look at Citizens Financial Group's financial health and performance during the second quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

Key Numbers

• 2024 Q2 — Reporting Period (Indicates the specific quarter for which financial data is reported.)
• 12-31 — Fiscal Year End (Specifies the end date of the company's fiscal year.)

Key Players & Entities

• CITIZENS FINANCIAL GROUP INC/RI (company) — Filer
• 20240630 (date) — Period of Report
• 20240806 (date) — Filed as of Date
• PROVIDENCE (location) — Business Address City
• RI (location) — Business Address State

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common stock, $0.01 par value per share CFG New York Stock
• $219.9 billion — nd largest financial institutions, with $219.9 billion in assets as of June 30, 2024. Headquar
• $86 million — E Key Highlights Net income decreased $86 million and $263 million for the three and six
• $263 million — s Net income decreased $86 million and $263 million for the three and six months ended June
• $0.14 — earnings per diluted common share down $0.14 to $0.78 and down $0.48 to $1.44 compar
• $0.78 — per diluted common share down $0.14 to $0.78 and down $0.48 to $1.44 compared to the
• $0.48 — mmon share down $0.14 to $0.78 and down $0.48 to $1.44 compared to the same periods i
• $1.44 — e down $0.14 to $0.78 and down $0.48 to $1.44 compared to the same periods in 2023.
• $16 million — 2023. Results reflect notable items of $16 million or $0.04 per diluted common share, net
• $0.04 — reflect notable items of $16 million or $0.04 per diluted common share, net of tax be
• $53 million — months ended June 30, 2024, compared to $53 million or $0.12 per diluted common share, net
• $0.12 — ne 30, 2024, compared to $53 million or $0.12 per diluted common share, net of tax be
• $77 million — ended June 30, 2024, notable items were $77 million or $0.16 per diluted common share, net
• $0.16 — 2024, notable items were $77 million or $0.16 per diluted common share, net of tax be
• $102 million — are, net of tax benefit, as compared to $102 million or $0.22 per diluted common share, net

Filing Documents

• cfg-20240630.htm (10-Q) — 5572KB
• exhibit101-restrictedcasha.htm (EX-10.1) — 23KB
• exhibit102-executiveletter.htm (EX-10.2) — 7KB
• a311certexceo302-q22024.htm (EX-31.1) — 10KB
• a312certexcfo302-q22024.htm (EX-31.2) — 9KB
• a321certexceo906-q22024.htm (EX-32.1) — 5KB
• a322certexcfo906-q22024.htm (EX-32.2) — 5KB
• cfg-20240630_g1.jpg (GRAPHIC) — 24KB
• cfg-20240630_g2.gif (GRAPHIC) — 218KB
• 0000759944-24-000148.txt ( ) — 25148KB
• cfg-20240630.xsd (EX-101.SCH) — 85KB
• cfg-20240630_cal.xml (EX-101.CAL) — 166KB
• cfg-20240630_def.xml (EX-101.DEF) — 602KB
• cfg-20240630_lab.xml (EX-101.LAB) — 961KB
• cfg-20240630_pre.xml (EX-101.PRE) — 795KB
• cfg-20240630_htm.xml (XML) — 6490KB

Financial Information

Part I. Financial Information 5

Financial Statements

Item 1. Financial Statements 39 Consolidated Balance Sheets (unaudited) 40 Consolidated Statements of Operations (unaudited) 41 Consolidated Statements of Comprehensive Income (unaudited) 42 Consolidated Statements of Changes in Stockholders' Equity (unaudited) 43 Consolidated Statements of Cash Flows (unaudited) 45

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 46

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 5

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 81

Controls and Procedures

Item 4. Controls and Procedures 81

Other Information

Part II. Other Information 81

Legal Proceedings

Item 1. Legal Proceedings 81

Risk Factors

Item 1A. Risk Factors 81

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 81

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 82

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 82

Other Information

Item 5. Other Information 82

Exhibits

Item 6. Exhibits 82 Signature 83 Citizens Financial Group, Inc. | 2 GLOSSARY OF ACRONYMS AND TERMS The following is a list of common acronyms and terms used regularly in our financial reporting: 2023 Form 10-K Annual Report on Form 10-K for the year ended December 31, 2023 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 ALM Asset and Liability Management AOCI Accumulated Other Comprehensive Income (Loss) ASU Accounting Standards Update ATM Automated Teller Machine Board or Board of Directors The Board of Directors of Citizens Financial Group, Inc. bps Basis Points CBNA Citizens Bank, National Association CCAR Comprehensive Capital Analysis and Review CCB Capital Conservation Buffer 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 CET1 capital ratio Common Equity Tier 1 capital divided by total risk-weighted assets as defined under the U.S. Basel III Standardized approach Citizens, CFG, the Company, we, us, or our Citizens Financial Group, Inc. and its Subsidiaries CLTV Combined Loan-to-Value CRE Commercial Real Estate EPS Earnings Per Share EVE Economic Value of Equity Exchange Act The Securities Exchange Act of 1934, as amended Fannie Mae (FNMA) Federal National Mortgage Association FDIC Federal Deposit Insurance Corporation FDM Financially Distressed Modification FHA Federal Housing Administration FHLB Federal Home Loan Bank FICO Fair Isaac Corporation (credit rating) 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

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Page

Forward-Looking Statements

Forward-Looking Statements 6 Introduction 7 Financial Performance 8 Results of Operations 10 Net Interest Income 10 Noninterest Income 12 Noninterest Expense 13 Provision for Credit Losses 13 Income Tax Expense 13 Business Operating Segments 13 Analysis of Financial Condition 16 Securities 16 Loans and Leases 17 Credit Quality 17 Deposits 21 Borrowed Funds 21 Capital and Regulatory Matters 21 Liquidity 25 Critical Accounting Estimates 28 Accounting and Reporting Developments 30 Risk Governance 31 Market Risk 31 Non-GAAP Financial Measures and Reconciliations 37 Citizens Financial Group, Inc. | 5

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement that does not describe historical or current facts is a forward-looking statement. These statements often include the words "believes," "expects," "anticipates," "estimates," "intends," "plans," "goals," "targets," "initiatives," "potentially," "probably," "projects," "outlook," "guidance" or similar expressions or future conditional verbs such as "may," "will," "should," "would," and "could." Forward-looking statements are based upon the current beliefs and expectations of management, and on information currently available to management. Our statements speak as of the date hereof, and we do not assume any obligation to update these statements or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation: Negative economic, business and political conditions, including as a result of the interest rate environment, supply chain disruptions, inflationary pressures and labor shortages, that adversely affect the general economy, housing prices, the job market, consumer confidence and spending habits; The general state of the economy and employment, as well as general business and economic conditions, and changes in the competitive environment; Our capital and liquidity requirements under regulatory standards and our ability to generate capital and liquidity on favorable terms; The effect

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View this 10-Q filing on SEC EDGAR