Noninterest income increased $47 million (8%) for the three months and $74 million (7%) for the six months ended June 30, 2025. This growth was primarily driven by higher mortgage banking, wealth, and service charge fees, reflecting successful execution of Private Bank and Private Wealth build-out initiatives.

The company completed the sale of $1.9 billion of Non-Core education loans in the first quarter of 2025, with $800 million settled to date. This strategic runoff, along with an improving loan mix, contributed to a decrease in provision expense by $18 million (3M) and $36 million (6M) YoY.

Total loans and leases remained stable at $139.3 billion as of June 30, 2025, compared to December 31, 2024. This was a net effect of a $1.9 billion increase in commercial loans, driven by higher line of credit utilization, partially offset by Commercial Real Estate (CRE) paydowns.

Noninterest expense decreased $26 million (1%) for the six months ended June 30, 2025, compared to the same period in 2024. This was primarily driven by efficiency efforts and lower FDIC deposit insurance costs, demonstrating effective cost management.

Salaries and employee benefits increased $36 million (6%) for the three months and $41 million (3%) for the six months ended June 30, 2025. This increase is attributed to hiring related to the Private Bank and Private Wealth build-out, indicating management's commitment to investing in key strategic initiatives.

Provision expense decreased by $18 million (3M) and $36 million (6M) YoY, reflecting Non-Core portfolio runoff and an improving loan mix. This suggests management's effective strategies in managing credit quality and reducing potential losses.

Total commercial criticized balances increased by $403 million to $7.5 billion at June 30, 2025, compared to December 31, 2024. Commercial real estate criticized balances specifically rose to $5.0 billion from $4.5 billion, primarily due to the Multi-family sector, indicating increased risk exposure in this segment.

The Allowance for Credit Losses (ACL) economic forecast for June 30, 2025, anticipates a shallow two-quarter contraction with peak unemployment projected at 5.2% (up from 5.1% in Dec 2024) and a real GDP decline of 0.5% (up from 0.4% in Dec 2024). More severe scenarios are applied to the CRE portfolio, with peak unemployment of 9.3% and GDP decline of 4.4%.

The SEC's climate disclosure rule remains stayed with ongoing litigation, and federal regulators have proposed rescinding the October 2023 Community Reinvestment Act (CRA) final rule. These developments create an uncertain regulatory environment that could impact compliance costs and strategic planning.

Wealth fees increased by $13 million (17%) for the three months and $26 million (18%) for the six months ended June 30, 2025, reflecting growth in assets under management, primarily from the Private Bank. Mortgage banking fees also saw significant increases of $19 million (35%) and $29 million (28%) for the respective periods, indicating competitive strength in these areas.

Capital markets fees decreased by $29 million (22%) for the three months and $47 million (19%) for the six months ended June 30, 2025. This decline was primarily driven by lower M&A and bond underwriting fees, partially offset by higher equity underwriting and loan syndication fees, indicating potential competitive pressures or a slowdown in these market segments.

The average refreshed FICO score for the total retail portfolio remained stable at 775, and the Combined Loan-to-Value (CLTV) ratio for secured real estate held steady at 50% as of June 30, 2025, compared to December 31, 2024. This stability in key credit quality indicators suggests a solid and consistent performance in the retail lending market.

Other operating expense decreased by $20 million (11%) for the three months and $66 million (17%) for the six months ended June 30, 2025, compared to the same periods in 2024. This reduction was primarily driven by lower FDIC deposit insurance costs and reduced fraud losses, reflecting successful efficiency initiatives.

The company's efficiency ratio improved to 64.76% for the three months and 66.29% for the six months ended June 30, 2025, down from 66.27% and 67.79% in the prior year periods, respectively. This indicates that the company is generating more revenue per dollar of expense, a positive sign of operational improvement.

Salaries and employee benefits increased by $36 million (6%) for the three months and $41 million (3%) for the six months ended June 30, 2025. This rise is attributed to strategic hiring for the Private Bank and Private Wealth build-out, indicating a deliberate investment in human capital to support long-term growth objectives.

The Company maintains a comprehensive Cybersecurity Program (CSP) designed to protect customers, assets, and information, with continuous assessment and mitigation of threats. This program is regularly reviewed and tested, demonstrating ongoing commitment to technological resilience and security.

Equipment and software expense increased by $3 million (2%) for the three months and $5 million (1%) for the six months ended June 30, 2025, compared to the same periods in 2024. This sustained investment indicates ongoing efforts to maintain and enhance the company's technological capabilities.

Service charges and fees increased by $5 million (5%) for the three months and $18 million (9%) for the six months ended June 30, 2025, primarily driven by higher overdraft and cash management fees. This suggests effective digital transformation efforts and enhanced customer engagement with online banking services.

The Board of Directors increased the common share repurchase program capacity by $1.2 billion, bringing the total authorization to $1.5 billion. The company repurchased $400 million of common stock during the six months ended June 30, 2025, reflecting management's view of share undervaluation and commitment to shareholder returns.

The company declared quarterly common stock dividends of $0.42 per share, totaling $371 million for the six months ended June 30, 2025. Preferred stock dividends aggregated to $67 million for the same period, demonstrating a stable commitment to returning capital to shareholders.

Citizens Financial Group's (CFG) CET1, Tier 1, and Total capital ratios decreased compared to December 31, 2024, primarily due to a $2.3 billion increase in Risk-Weighted Assets (RWA). This RWA growth was largely driven by higher commercial and industrial loans, indicating increased asset utilization but also a slight pressure on capital ratios.

The SEC has ended its defense of several court challenges to its climate disclosure rule, which remains stayed until litigation is resolved. This creates ongoing uncertainty for companies regarding the scope and timing of required climate-related disclosures, impacting environmental reporting strategies.

The FDIC, FRB, and OCC issued a joint notice of proposed rulemaking to rescind the Community Reinvestment Act (CRA) final rule issued in October 2023 and replace it with prior 1995 regulations. This move is intended to restore certainty in the CRA regulatory framework and limit regulatory burden on financial institutions.

The company continues to make equity investments in Low Income Housing Tax Credit (LIHTC) partnerships and renewable energy entities. These investments aim to generate satisfactory returns while supporting affordable housing development and clean energy initiatives, aligning with social and environmental objectives.

The company's ACL economic forecast for June 30, 2025, projects a shallow two-quarter contraction. This includes a projected peak unemployment of 5.2% and a start-to-trough real GDP decline of 0.5%, a slight deterioration compared to the December 31, 2024 forecast, reflecting ongoing macroeconomic pressures.

The filing highlights geopolitical instability, including conflicts in Ukraine and the Middle East, as well as inflationary pressures and the interest rate environment, as important factors that could adversely affect economic and market conditions, posing ongoing risks to the company's operations.

The 'One Big Beautiful Bill Act,' signed into law on July 4, 2025, includes a broad range of tax reform provisions affecting individuals and businesses. The company will continue to monitor these legislative developments and evaluate their associated impact on its revenue and operations.