CFGCitizens Financial Group

As of December 31, 2024, the 2025, our ACL economic forecast over a two-year reasonable and supportable period was consistent with December 31, 2023, with reflects the economy going into a shallow two-quarter contraction inclusive of uncertainties related to the implementation of tariffs and protectionist trade policies, inflationary pressures, and geopolitical tensions. This forecast is generally applied to the retail and commercial and industrial portfolios and projects peak unemployment of approximately 5.3% and a start-to-trough real GDP decline of approximately 0.5%, compared to peak unemployment of approximately 5.1% and a start-to-trough real GDP decline of approximately 0.4%. These forecasts reflect 0.4% at December 31, 2024. More severe economic scenarios are applied within the CRE portfolio, such as general office, with peak unemployment of approximately 9.4% and a mild recession over the two-year reasonable start-to-trough real GDP decline of approximately 4.4%, compared to peak unemployment of approximately 9.3% and supportable period. a start-to-trough real GDP decline of approximately 4.4% at December 31, 2024.

Pronouncement Summary of Guidance Effects on Financial Statements Improvements to Reportable Segment Income Tax Disclosures •Requires disclosure a tabular income tax rate reconciliation that includes specific categories and other significant categories, disaggregated by nature, that exceed 5% of significant segment expenses regularly provided to income tax expense at the CODM statutory tax rate •The Company adopted the new standard ASU on January 1, 2024, 2025 on a retrospective basis, effective for annual financial statements for the year ended December 31, 2024 2025 Issued December 2023 •Requires disclosure of income taxes paid, net of refunds received, disaggregated by federal, state, and subsequent interim periods beginning foreign taxes, and further disaggregated by individual jurisdictions that exceed 5% of total income taxes paid, net of refunds received •Required disclosures for income taxes are included in 2025. Note 21 •Requires disclosure of pre-tax income disaggregated between domestic and foreign, and income tax expense disaggregated by federal, state, and foreign

We are heavily regulated by multiple banking, consumer protection, securities securities, and other regulatory authorities at the federal and state levels. This regulatory oversight is primarily established to protect depositors, the DIF, consumers of financial products, and the financial system as a whole, not for the protection of shareholders or other investors. Changes to statutes, regulations, rules rules, or policies, including their interpretation, implementation implementation, or enforcement, could affect us in substantial and unpredictable ways, including by, for example, subjecting us to additional costs, limiting the types of financial services and other products we may offer, limiting our ability to pursue acquisitions acquisitions, and increasing the ability of third parties, including non-banks, to offer competing financial services and products. In recent years, we, together with the rest of the financial services industry, have faced particularly intense scrutiny, with many new regulatory initiatives and vigorous oversight and enforcement on the part of numerous regulatory and governmental authorities. Legislatures and regulators have pursued a broad array of initiatives intended to promote the safety and soundness of financial institutions, financial market stability, the transparency and liquidity of financial markets, and consumer and investor protection. Certain regulators and law enforcement authorities have also recently required admissions of wrongdoing and, in some cases, criminal pleas as part of the resolutions of matters brought by them against financial institutions. Any such resolution of a matter involving us could lead to increased exposure to civil litigation, could adversely affect our reputation, could result in penalties or limitations on our ability to do business or engage in certain activities activities, and could have other negative effects. In addition, a single event or issue may give rise to numerous and overlapping investigations and proceedings, including by multiple federal and state regulators and other governmental authorities.

Letters of credit in the table above reflect commercial, standby financial financial, and standby performance letters of credit. Financial and performance standby letters of credit are issued by the Company for the benefit of its customers. They are used as conditional guarantees of payment to a third party in the event the customer either fails to make specific payments (financial) or fails to complete a specific project or activity (performance). The Company’s exposure to credit loss in the event of counterparty nonperformance in connection with the above instruments is represented by the contractual amount of those instruments. Letters of credit are generally secured, secured according to the creditworthiness of the counterparty, with collateral including, but not limited to, cash, accounts receivable, inventory inventory, or investment securities. Credit risk associated with letters of credit is considered in determining the appropriate amount of allowances the allowance for unfunded commitments. Standby letters of credit and commercial letters of credit are issued for terms of up to no more than two years and one year, respectively.