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CITIZENS FINANCIAL GROUP, INC. is an American bank headquartered in Providence , Rhode Island , which operates in the states of Connecticut
Connecticut
, Delaware
Delaware
, Massachusetts
Massachusetts
, Michigan
Michigan
, New Hampshire , New Jersey , New York , Ohio
Ohio
, Pennsylvania
Pennsylvania
, Rhode Island and Vermont .

Between 1988 and its 2014 initial public offering , Citizens was a wholly owned subsidiary of The Royal Bank
Bank
of Scotland Group . RBS sold its remaining 20.9% stake in the company in October 2015.

Citizens operates more than 1,200 branches and approximately 3,200 ATMs across 11 states under the Citizens Bank
Bank
brand.

Citizens ranks 20th on the List of largest banks in the United States .

CONTENTS

* 1 History

* 1.1 Early history * 1.2 RBS ownership * 1.3 Charter One Financial * 1.4 Financial crisis * 1.5 The Road to IPO * 1.6 Misappropriation of depositor funds * 1.7 Paul Manafort investigation

* 2 Services * 3 See also * 4 References * 5 External links

HISTORY

EARLY HISTORY

Citizens was established in 1828 as the High Street Bank
Bank
in Providence, Rhode Island. In 1871, the Rhode Island legislature gave a second charter to establish the CITIZENS SAVINGS BANK which eventually acquired its parent group to form Citizens Trust Company. The bank then expanded through Rhode Island, opening a total of 29 branches in that state. It established Citizens Financial Group
Citizens Financial Group
as a holding company when the bank acquired The Greenville Trust Company in 1954.

In 1985, Citizens changed status from a mutual savings bank to a federal stock savings bank. Expansion into other states began with Massachusetts
Massachusetts
in 1986.

RBS OWNERSHIP

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Citizens Bank
Bank
headquarters in downtown Providence , constructed 1991.

In 1988, Royal Bank
Bank
of Scotland acquired Citizens. Under RBS ownership, Citizens acquired several smaller banks in New England
New England
to become the second largest bank in the region. In 1996, in conjunction with the acquisition of First NH Bank, the Bank
Bank
of Ireland gained a 23.5% stake in Citizens, which RBS then acquired two years later to resume 100% ownership.

Expansion outside New England
New England
began in 2001, when RBS purchased the retail banking division of Mellon Financial Corporation
Mellon Financial Corporation
in Pennsylvania, New Jersey and Delaware
Delaware
for $2 billion. This made Citizens Bank
Bank
the second-largest bank in Pennsylvania, and a major bank in both Philadelphia
Philadelphia
and Pittsburgh
Pittsburgh
.

In July 2003, the bank purchased the naming rights to the new home field of the Philadelphia
Philadelphia
Phillies and renamed it Citizens Bank
Bank
Park .

On January 17, 2003, Citizens Financial Group, Inc. purchased Commonwealth Bancorp, Inc., the holding company for Commonwealth Bank, based in Norristown, Pennsylvania
Pennsylvania
.

In 2004, RBS purchased the credit card division of Connecticut-based People's Bank. This purchase allowed Citizens to issue and market its own credit cards.

CHARTER ONE FINANCIAL

Charter One Bank
Bank
branch, downtown Ypsilanti , Michigan
Michigan

In August 2004, Citizens Financial acquired Cleveland
Cleveland
-based Charter One Financial, parent company of Charter One Bank, with branches in Illinois
Illinois
, Ohio
Ohio
, Indiana
Indiana
, Michigan
Michigan
, upstate New York , and Vermont for $10.5 billion. Because Citizens Republic Bancorp of Flint, Michigan
Michigan
already operated under the Citizens Bank
Bank
name in most of Charter One's territory, Citizens Financial elected to keep the Charter One name in Charter One's Midwestern footprint. However, it re-branded the New York and Vermont
Vermont
branches as Citizens Bank. This purchase made Citizens Financial the 12th largest bank in the United States with over $131 billion in assets and 1,530 branches across 13 states.

In early 2005, the Charter One name replaced the Citizens Bank
Bank
banner on seven branches in Butler County, Pennsylvania
Pennsylvania
. This rebranding resolved a 3½-year-old name dispute with Butler -based Citizens National Bank. By mid-2005, Citizens National and Citizens Financial agreed to a compromise. Citizens National Bank
Bank
changed its name to NexTier Bank
Bank
, while the Citizens Financial Group
Citizens Financial Group
branches reverted to the "Citizens Bank" name.

In July 2006, Citizens Bank
Bank
eliminated the mortgage department in Michigan
Michigan
and terminated over 100 employees.

On September 1, 2007, the individual banks under Citizens Financial Group, excluding Citizens Bank
Bank
of Pennsylvania, merged into RBS Citizens, N.A.

In November 2008, Charter One sold its network of 65 branches in Indiana
Indiana
to Old National Bank
Bank
which rebranded them under the Old National Bank
Bank
banner. The transaction closed in June 2010.

In 2014, Citizens sold 94 branches in metropolitan Chicago
Chicago
to U.S. Bancorp .

Citizens Republic Bancorp, which had a similar name as Citizens Financial, was acquired by FirstMerit Bank
Bank
in 2013 (which itself would be acquired by Huntington Bancshares
Huntington Bancshares
in 2016), and subsequently all branches were rebranded as FirstMerit banks. With conflicting names no longer an issue, Citizens Bank
Bank
announced June 30, 2014, that Charter One banks in Michigan
Michigan
and Ohio
Ohio
would be rebranded as Citizens Bank. The name change officially took place on April 27, 2015, bringing to an end the name Charter One in Cleveland, Ohio; the city in which it was founded.

FINANCIAL CRISIS

In May 2008, Citizens Financial Group
Citizens Financial Group
failed to publicly announce that it was under investigation by the SEC for its involvement in the sub-prime mortgage crisis that devastated the U.S. housing market and bond investors around the world. The SEC only investigated banks it suspected of involvement in the purchase and sale of subprime securities.

In 2008, the company lost $929 million and anticipated writing off $2 billion in bad loans. Royal Bank
Bank
of Scotland posted the biggest loss in British corporate history and announced cost cutting measures at Citizens.

A Philadelphia
Philadelphia
developer sued Citizens Bank
Bank
January 27, 2010, for $8 billion, under a claim that the bank used sham accusations of default to recall loans in an effort to prop up its failing parent companies, Citizens Financial Group
Citizens Financial Group
and "its ultimate parent, The Royal Bank
Bank
of Scotland Group."

THE ROAD TO IPO

Following the effective nationalization of RBS in 2008, speculation arose as to whether RBS would retain Citizens Bank. In 2012, public pressure in the United Kingdom grew for RBS to focus on its home market and sell foreign assets, including Citizens Bank, in order for UK taxpayers to earn their money back. Substantial interest in Citizens Bank
Bank
had been rumored from other foreign banks such as Brazil -based Itaú Unibanco and Canada
Canada
-based Toronto-Dominion Bank
Bank
, the latter of which already had an existing U.S. branch network that overlapped with the existing Citizen footprint east of the Appalachian Mountains . The Bank
Bank
of Montreal , with its existing U.S. presence , was also mentioned as a possible buyer. U.S. banks mentioned as potential Citizens buyers included JPMorgan Chase
JPMorgan Chase
, Wells Fargo , U.S. Bancorp , PNC Financial Services , and Fifth Third Bank
Bank
.

In February 2013, RBS confirmed at least a partial spinoff of Citizens through an initial public offering within the next two years. Then in October 2013, RBS announced it would sell its Chicago
Chicago
-area branches, which represented 6% of its U.S. deposits; Citizens later agreed to sell those branches to U.S. Bancorp
U.S. Bancorp
on January 7, 2014. Finally in November 2013, RBS announced that it would divest all of Citizens Financial Group.

The bank began trading on the New York Stock Exchange under the ticker symbol CFG on September 24, 2014, raising $3 billion. By April 2015, RBS Group's shareholding in the bank had dropped to 45.6%. A further sale in July 2015 reduced RBS' stake to 23.4%. RBS sold its remaining stake in the bank in October 2015.

In June 2016, it was announced that Citizen's Financial Group had joined the Fortune 500 for the first time.

MISAPPROPRIATION OF DEPOSITOR FUNDS

In August 2015, the CFPB and other federal regulators levied nearly $35 million in penalties against Citizens Bank
Bank
"for failing to credit to customers’ accounts the full amount of their deposits". The regulators declared that, from 2008 to 2013, "The bank’s actions resulted in consumers being shorted millions of dollars". Joint action by the CFPB, the FDIC , and the Comptroller of the Currency determined that Citizens Bank
Bank
had engaged in "deceptive practices" by "fail to give customers their full deposits at times when the size of the deposit didn’t match the number written on deposit slips", despite promising to correct such discrepancies, instead pocketing the difference. The bank was required to reimburse its customers for lost funds as well as pay roughly $20 million in fines to the three agencies. The New York Times said that Citizens Bank's misconduct "is appalling precisely because it is so basic", demonstrating that "regulators like the Consumer Financial Protection Bureau are a necessary defense against a system prone to abuses".

PAUL MANAFORT INVESTIGATION

On May 12, 2017, the Wall Street Journal reported that the United States Department of Justice requested from Citizens Trump 2016 campaign manager Paul Manafort\'s transaction records. According to the article, the request is related to the investigation into alleged Russian interference in the 2016 United States elections . Manafort reportedly secured a 2.7 million-dollar loan from Citizens in 2016.

SERVICES

Citizens' branch footprint

Like several other banks, Citizens has agreements with several supermarket chains to locate bank branches in the stores. The greatest number of these are in Pittsburgh
Pittsburgh
-based Giant Eagle
Giant Eagle
stores, most of which were acquired in the acquisition of Mellon Financial Corporation 's retail banking division. Citizens also operates branches inside many Stop -webkit-column-width: 30em; column-width: 30em; list-style-type: decimal;">

* ^ A B C D E F G Citizens Financial Group, Inc. 2016 Form 10-K Annual Report * ^ Strauss, Lawrence C. (March 21, 2015). "Citizens Financial: Ready to Rise After Spinoff From RBS". Barron\'s . * ^ A B "Timeline: A history of Citizens Bank". The Boston Globe . November 2, 2013. * ^ A B C Citizens: Our History * ^ Gotlieb, Andy (December 3, 2001). "Newcomer Citizens Bank promises return to PSFS roots". American City Business Journals
American City Business Journals
. * ^ Blumenthal, Jeff (April 9, 2014). "Citizens Bank
Bank
enters second decade as Phillies ball park name sponsor". American City Business Journals . * ^ "Citizens Bank
Bank
Completes Acquisition of Commonwealth Bancorp, Inc.; Growth and Momentum Continue" (Press release). PRNewswire
PRNewswire
. January 17, 2003. * ^ Higgins, Steve (February 4, 2004). "People\'s sells credit card division". New Haven Register . * ^ "RBS buys US credit card business". ]. February 3, 2004. (subscription required) * ^ GLATER, JONATHAN D. (May 5, 2004). "Citizens Financial Acquires Charter One". The New York Times . * ^ A B " Citizens Financial Group
Citizens Financial Group
Completes Charter One Acquisition; Transaction Makes Citizens One of the Top U.S. Bank Holding Companies" (Press release). Business Wire . August 31, 2004. * ^ Olsen, Thomas (7 May 2013). "NexTier, Farmers & Merchants to merge, with $1B combined assets, by 1stQ 2014". Pittsburgh Tribune-Review . Retrieved 2014-08-12. * ^ " Bank
Bank
Mergers and Acquisitions". Connecticut
Connecticut
Department of Banking. 26 June 2014. * ^ "Old National Bancorp to Acquire Charter One\'s Retail Branch Banking Network in Indiana" (Press release). GlobeNewswire . November 25, 2008. * ^ Corbin, Bryan (November 25, 2008). "ONB acquiring Charter One branches in Central Indiana". Evansville Courier & Press . * ^ " U.S. Bancorp
U.S. Bancorp
Acquires Chicago
Chicago
Branch Banking Operations of RBS Citizens Financial Group" (Press release). Business Wire . January 7, 2014. * ^ "U.S. Bank
Bank
Closes on Acquisition of Chicago-Area Charter One Bank
Bank
Franchise" (Press release). Business Wire . June 23, 2014. * ^ "FirstMerit Completes Acquisition of Citizens Republic Bancorp" (Press release). PRNewswire
PRNewswire
. April 12, 2013. * ^ Murray, Teresa Dixon (June 30, 2014). "Charter One is changing name to Citizens Bank
Bank
next year". The Plain Dealer . * ^ "Charter One name change to Citizens Bank
Bank
goes into effect". Crain Communications
Crain Communications
. April 27, 2015. * ^ Smith, Mark (12 May 2008). "Royal Bank
Bank
under investigation over US sub-prime loans". Glasgow
Glasgow
: The Herald . Retrieved 2014-08-12. * ^ Winnett, Robert (20 March 2009). "RBS traders hid toxic debt". The Daily Telegraph
The Daily Telegraph
. London. Retrieved 2014-08-12. * ^ Kerber, Ross (February 26, 2009). "Citizens loses $929m as bad loans proliferate". The Boston Globe . * ^ Hartley, Thomas (February 26, 2009). "Royal Bank: Changes coming at Citizens". American City Business Journals
American City Business Journals
. * ^ Hurdle, Jon (28 January 2010). "Developer sues RBS unit Citizens Bank
Bank
for $8 bln". Reuters
Reuters
. Retrieved 2014-08-12. * ^ Colchester, Max; Enrich, David (21 October 2012). "RBS, U.K. Wrestle Over Fate of Citizens". The Wall Street Journal. Retrieved 2014-08-12. * ^ A B Tascarella, Patty (24 October 2012). "Citizens Bank
Bank
sale would impact Pittsburgh". Pittsburgh
Pittsburgh
Business Times . Retrieved 2014-08-12. * ^ Wallack, Todd (11 August 2012). "Ailing parent RBS insists Citizens Bank
Bank
not for sale". The Boston Globe . Retrieved 2014-08-12. * ^ Sabatini, Patricia (13 October 2013). "30 Years: PNC eats up market share, boosts Downtown building". Pittsburgh
Pittsburgh
Post-Gazette . * ^ Bray, Chad (7 January 2014). "Citizens Financial to Sell Chicago-Area Branches to U.S. Bancorp". The New York Times . * ^ "RBS announces plans to accelerate partial IPO for RBS Citizens Financial Group and fully divest Citizens by 2016" (Press release). Citizens Financial Group. 1 November 2013. Retrieved 2014-08-12. * ^ Dexheimer, Elizabeth; Picke, Leslie (September 24, 2014). "Citizens Financial Climbs After $3 Billion IPO". Bloomberg L.P. * ^ Bray, Chad (2015-03-26). "R.B.S. Sells $3.2 Billion in Stock of Citizens Financial Group". The New York Times . The New York Times Company . Retrieved 2015-05-11. * ^ Bray, Chad (July 29, 2015). "R.B.S. Sells $2.2 Billion in Shares of Citizens Financial Group". The New York Times. Retrieved August 5, 2015. * ^ "RBS profits rise on Citizens sale". BBC News. October 30, 2015. Retrieved October 30, 2015. * ^ "Here Are The 15 New Companies Joining The Fortune 500". fortune.com. 2016-06-06. Retrieved 2016-06-07. * ^ A B Citizens Bank
Bank
Fined for Failing to Credit Consumers for Full Deposits * ^ Citizens Bank
Bank
Enforcement Action: Prepared Remarks of Richard Cordray Director, Consumer Financial Protection Bureau * ^ Citizens Bank
Bank
fined at least $34.5 million for pocketing customers’ cash * ^ Citizens Bank
Bank
Shortchanged Depositors (editorial, August 17, 2015) * ^ Rothfeld, Michael; Maremont, Mark; Davis O'Brien, Rebecca (12 May 2017). "Former Trump Adviser Paul Manafort\'s Bank
Bank
Records Sought in Probe". The Wall Street Journal. Retrieved 18 May 2017. * ^ "Huntington Bank, Giant Eagle
Giant Eagle
ink 15-year deal". Bloomberg BusinessWeek. Associated Press . 29 September 2012. Retrieved 2014-08-12. * ^ Heath, Dan (25 June 2008). "Community Bank
Bank
buying Citizens Bank branches". Press-Republican . Plattsburg, New York . Retrieved 2014-08-12. * ^ A