Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense for the years ended December 31 were as follows:


	2023		2022		2021
	(In millions)
Current income tax expense:
Federal	$	417	$	493	$	456
State	84		116		73
Total current expense	$	501	$	609	$	529
Deferred income tax expense (benefit):
Federal	$	25	$	26	$	132
State	7		(4)		33
Total deferred expense	$	32	$	22	$	165
Total income tax expense	$	533	$	631	$	694

Reconciliation Of Continuing Operations Effective Income Tax Rate Table

Income taxes for financial reporting purposes differs from the amount computed by applying the statutory federal income tax rate of 21 percent as shown in the following table:


	2023			2022			2021
	(Dollars in millions)
Tax on income computed at statutory federal income tax rate	$	547		$	604		$	675
Increase (decrease) in taxes resulting from:
State income tax, net of federal tax effect	72			88			83
Non-deductible expenses	33			34			18
Tax-exempt interest	(38)			(33)			(30)
Affordable housing credits, net of amortization	(42)			(32)			(25)
Bank-owned life insurance	(19)			(16)			(20)





Other, net	(20)			(14)			(7)
Income tax expense(1)	$	533		$	631		$	694
Effective tax rate	20.5		%	22.0		%	21.6		%

__________

(1) Income tax expense includes gross amortization of affordable housing investments of $166 million, $149 million, and $139 million for 2023, 2022 and 2021, respectively.

Summary Of Significant Components Of Deferred Tax Assets And Liabilities

Significant components of the Company’s net deferred tax asset at December 31 are listed below:


	2023		2022
	(In millions)
Deferred tax assets:
Unrealized losses included in shareholders' equity	$	961	$	1,138
Allowance for credit losses	430		401
Right of use liability	129		136
Accrued expenses	87		61

Other	20		47

Federal and state net operating losses, net of federal tax effect	31		40
Total deferred tax assets	1,658		1,823
Less: valuation allowance	(21)		(21)
Total deferred tax assets less valuation allowance	1,637		1,802
Deferred tax liabilities:
Lease financing	439		403
Right of use asset	121		128
Mortgage servicing rights	95		122

Goodwill and intangibles	112		103
Fixed assets	30		52
Employee benefits and deferred compensation	37		29
Other	62		22

Total deferred tax liabilities	896		859
Net deferred tax asset	$	741	$	943

Summary Of Details Of Tax Carryforwards Table

The following table provides details of the Company’s net operating loss carryforwards at December 31, 2023, including the expiration dates and related valuation allowance:


	Expiration Dates	Deferred Tax Asset Balance		Valuation Allowance		Net Deferred Tax Asset Balance
	(In millions)

Net operating losses-federal	None	9		—		9
Net operating losses-states	2024-2028	13		13		—
Net operating losses-states	2029-2035	3		2		1
Net operating losses-states	2036-2043	3		2		1
Net operating losses-states	None	3		2		1
		$	31	$	19	$	12

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of UTB is as follows:


	2023		2022		2021
	(In millions)
Balance at beginning of year	$	8	$	9	$	12
Additions based on tax positions taken in a prior period	3		—		—


Settlements	—		—		(2)
Expiration of statute of limitations	—		(1)		(1)
Balance at end of year	$	11	$	8	$	9