BUSINESS SEGMENTS

12 Months Ended

Dec. 31, 2025

Segment Reporting [Abstract]

BUSINESS SEGMENTS

NOTE 24 - BUSINESS SEGMENTS

The Company is managed by its CODM, the Chief Executive Officer, on a segment basis. The Company’s two reportable business segments are Consumer Banking and Commercial Banking. The business segments are determined based on the products and services provided, or the type of customer served. Each business segment has a segment head that reports directly to the Chief Executive Officer, who has final authority over resource allocation decisions and performance assessment. The business segments reflect this management structure and the manner in which financial information is currently evaluated by the Chief Executive Officer.

The CODM utilizes segment pretax profit or loss as the primary measure to allocate resources to the Company’s business segments during the annual budgeting and forecasting process. This measure is also used to assess the performance of each segment, with a focus on monitoring net interest income, noninterest income, and noninterest expense. To ensure effective oversight, the CODM participates in monthly business review meetings, where budget- and forecast-to-actual variances for pretax profit or loss and its components are analyzed. These evaluations inform the CODM’s decisions regarding the allocation of capital and resources across the business segments, ensuring alignment with the Company’s strategic objectives.

Developing and applying methodologies used to allocate items among the business segments is a dynamic process. Accordingly, financial results may be revised periodically as management systems are enhanced, methods of evaluating performance or product lines are updated, or organizational structure changes occur.

See Note 1 for information regarding segment changes made during the fourth quarter of 2025.

Reportable Business Segments

Segment results are determined based upon the Company’s organizational and management structure, with balance sheet and statement of operations items assigned to each of the business segments. The results are not necessarily comparable with similar information reported by other financial institutions. A description of each reportable business segment is presented below:

Consumer Banking

The Consumer Banking segment serves consumer customers and small businesses, offering traditional banking products and services including deposits, mortgage and home equity lending, credit cards, small business loans, education loans, point-of-sale finance loans, and wealth management solutions. Citizens Private Bank and Private Wealth integrate banking services and wealth management solutions to serve high- and ultra-high-net-worth individuals and families, as well as investors, entrepreneurs, and businesses.

The segment’s distribution channels include a branch network, ATMs, and a workforce of experienced specialists covering lending, savings, and investment needs as well as a broad range of small business products and services. The Company’s Consumer Banking value proposition is based on providing simple, easy to understand product offerings and a convenient banking experience with a more personalized approach.

Commercial Banking

The Commercial Banking segment primarily serves companies and institutions and strives to be a trusted advisor to its clients and preferred provider for their banking needs. A broad complement of financial products and solutions are offered, including lending and leasing, deposit and treasury management services, foreign exchange, interest rate and commodity risk management solutions, as well as loan syndication, corporate finance, merger and acquisition, and debt and equity capital markets capabilities.

The segment focuses on middle-market companies, large corporations, and institutions and has dedicated teams with industry and product expertise in targeted industry sectors. While the segment’s business development efforts are predominantly focused in the Company’s footprint, some of its specialized industry businesses also operate on a national basis. A key component of Commercial Banking’s growth strategy is to present clients with ideas that help their businesses thrive and, in doing so, expand the breadth and depth of the Company’s banking relationship with them.

Non-segment Operations

Other

Non-segment operations are classified as Other and consist primarily of treasury and community development, and include assets, liabilities, capital, revenues, provision (benefit) for credit losses, expenses, and income tax expense (benefit) not attributed to the Company’s reportable business segments.

Management accounting practices utilized by the Company to measure the performance and produce the results of its segments include the following:

Funds Transfer Pricing

The Company’s FTP, a component of net interest income, ensures consistent business segment pricing behavior by removing interest rate risk from business performance. This risk is centrally managed within the Treasury function and reported in Other non-segment operations. The Company employs a matched maturity FTP methodology for its business segments with rates based on a product’s repricing frequency and interest sensitivity, as well as other factors. Business segments are provided an interest credit for funding it generates and an interest charge for assets it holds. The sum of interest income/expense and FTP credits/charges for each business segment is its designated net interest income. The offset to FTP credits and charges is recorded in Other non-segment operations.

Provision for credit losses

The provision for credit losses for each business segment is based on actual net charge-offs recognized by the business segment. The difference between the consolidated provision (benefit) for credit losses and total net charge-offs for all business segments is reflected in Other non-segment operations.

Income taxes

Income taxes are assessed to each business segment at a standard tax rate with the residual income tax expense (benefit) to arrive at the consolidated effective tax rate included in Other non-segment operations.

Expenses

Noninterest expenses incurred by centrally-managed operations or business lines that directly support the operations of another business line are charged to the applicable business line based on its utilization of those services.

Goodwill

Goodwill is allocated to the Consumer Banking and Commercial Banking business segments for impairment testing purposes.

Substantially all revenues generated and long-lived assets held by the Company’s business segments are derived from customers that reside in the United States. No business segment earns revenue from a single external customer that represents ten percent or more of the Company’s total revenues.

The following tables present certain financial data of the Company’s business segments:

	Year Ended December 31, 2025
(dollars in millions)	Consumer Banking	Commercial Banking	Other	Consolidated
Net interest income	$4,972	$1,778	($897)	$5,853
Noninterest income	1,252	995	147	2,394
Total revenue	6,224	2,773	(750)	8,247
Direct expenses(1)(2)	2,741	911	1,659	5,311
Indirect expenses(3)	1,139	423	(1,562)	—
Noninterest expense	3,880	1,334	97	5,311
Profit (loss) before provision (benefit) for credit losses	2,344	1,439	(847)	2,936
Provision (benefit) for credit losses	328	309	(29)	608
Income (loss) before income tax expense (benefit)	2,016	1,130	(818)	2,328
Income tax expense (benefit)	510	265	(278)	497
Net income (loss)	$1,506	$865	($540)	$1,831
Total average assets	$79,925	$66,137	$72,535	$218,597

(1) Represents operating expenses incurred by the business segments and primarily includes salaries and employee benefits, equipment and software, outside services, and occupancy.

(2) Includes depreciation and amortization of $122 million, $20 million, and $305 million, respectively, for the Consumer Banking, Commercial Banking, and Other business segments.

(3) Represents allocated corporate overhead from support functions such as information technology, finance, risk, and human resources.

	Year Ended December 31, 2024
(dollars in millions)	Consumer Banking	Commercial Banking	Other	Consolidated
Net interest income	$4,564	$1,950	($881)	$5,633
Noninterest income	1,131	908	137	2,176
Total revenue	5,695	2,858	(744)	7,809
Direct expenses(1)(2)	2,609	842	1,783	5,234
Indirect expenses(3)	1,068	399	(1,467)	—
Noninterest expense	3,677	1,241	316	5,234
Profit (loss) before provision (benefit) for credit losses	2,018	1,617	(1,060)	2,575
Provision (benefit) for credit losses	331	353	3	687
Income (loss) before income tax expense (benefit)	1,687	1,264	(1,063)	1,888
Income tax expense (benefit)	434	291	(346)	379
Net income (loss)	$1,253	$973	($717)	$1,509
Total average assets	$75,064	$68,478	$75,482	$219,024

(1) Represents operating expenses incurred by the business segments and primarily includes salaries and employee benefits, equipment and software, outside services, and occupancy.

(2) Includes depreciation and amortization of $121 million, $26 million, and $304 million, respectively, for the Consumer Banking, Commercial Banking, and Other business segments.

(3) Represents allocated corporate overhead from support functions such as information technology, finance, risk, and human resources.

	Year Ended December 31, 2023
(dollars in millions)	Consumer Banking	Commercial Banking	Other	Consolidated
Net interest income	$4,187	$2,292	($238)	$6,241
Noninterest income	1,067	784	132	1,983
Total revenue	5,254	3,076	(106)	8,224
Direct expenses(1)(2)	2,519	884	2,104	5,507
Indirect expenses(3)	1,023	411	(1,434)	—
Noninterest expense	3,542	1,295	670	5,507
Profit (loss) before provision (benefit) for credit losses	1,712	1,781	(776)	2,717
Provision (benefit) for credit losses	280	250	157	687
Income (loss) before income tax expense (benefit)	1,432	1,531	(933)	2,030
Income tax expense (benefit)	373	378	(329)	422
Net income (loss)	$1,059	$1,153	($604)	$1,608
Total average assets	$72,721	$76,028	$73,472	$222,221

(1) Represents operating expenses incurred by the business segments and primarily includes salaries and employee benefits, equipment and software, outside services, and occupancy.

(2) Includes depreciation and amortization of $112 million, $30 million, and $285 million, respectively, for the Consumer Banking, Commercial Banking, and Other business segments.

(3) Represents allocated corporate overhead from support functions such as information technology, finance, risk, and human resources.