08/12/2015

Citizens Financial Group, Inc. Reaches Deposit Reconciliation Agreements

Agreements cover practices related to the handling of inaccurate deposit slips from 2008-2013

PROVIDENCE, R.I.--(BUSINESS WIRE)-- Citizens Financial Group, Inc. (NYSE: “CFG” or “Citizens”) today announced settlements with the Consumer Financial Protection Bureau (“CFPB”), the Office of the Comptroller of the Currency (“OCC”), and the Federal Deposit Insurance Corporation (“FDIC”) (collectively “the Regulators”) in connection with certain operational practices related to its handling of deposits in the period 2008 to 2013.

Like many other peer banks, Citizens employed certain practices to ensure the next-day crediting of deposits in situations when deposit slips contained mathematical errors. However, these past practices and disclosures, principally prior to early 2011, could have been better. Our implementation of a new teller system in the fourth quarter of 2013 has automated this reconciliation process, and we believe our process is now considered among the best in the industry.

Over this period, the over- and under-credits to customers were approximately equal. Customers who were over-credited will keep the excess funds applied to their accounts and customers who were under-credited will be reimbursed. In addition to customer remediation, the company also agreed to pay fines totaling $20.5 million to the CFPB, the OCC and the FDIC.

The company issued the following statement:

“As we continue to improve our performance as a company, we are pleased to have resolved this matter from an earlier era. We strive to do our best for our customers every day and to do right by customers when issues like this come to light. We are now working with our regulators to make appropriate redress as quickly as possible. As previously disclosed, we have adequate reserves to cover the redress and fines.”

About Citizens Financial Group, Inc.
Citizens Financial Group, Inc. (NYSE: CFG) is one of the nation’s oldest and largest financial institutions, with $137.3 billion in assets as of June 30, 2015. Headquartered in Providence, Rhode Island, Citizens offers a broad range of retail and commercial banking products and services to individuals, small businesses, middle‐market companies, large corporations and institutions. In Consumer Banking, Citizens helps its retail customers “bank better” with mobile and online banking, a 24/7 customer contact center and the convenience of approximately 3,200 ATMs and approximately 1,200 Citizens Bank branches in 11 states in the New England, Mid‐Atlantic and Midwest regions. Citizens also provides mortgage lending, auto lending, student lending and commercial banking services in select markets nationwide. In Commercial Banking, Citizens offers corporate, institutional and not‐for‐profit clients a full range of wholesale banking products and services including lending and deposits, capital markets, treasury services, foreign exchange and interest hedging, leasing and asset finance, specialty finance and trade finance. Citizens operates through its subsidiaries Citizens Bank, N.A., and Citizens Bank of Pennsylvania. Additional information about Citizens and its full line of products and services can be found at www.citizensbank.com.

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Citizens Financial Group, Inc.
Media:
Jim Hughes,781-751-5404
or
Investors:
Ellen Taylor, 203-900-6854

Source: Citizens Financial Group, Inc.