Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.20.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Summary of provision (benefit) for income taxes
The following is a summary of the provision (benefit) for income taxes:
  Year Ended December 31,
(dollar amounts in millions) 2020 2019 2018
Current tax provision (benefit)
Federal $ 236  $ 209  $ 152 
State 12  16  20 
Total current tax provision 248  225  172 
Deferred tax provision (benefit)
Federal (103) 24  71 
State 10  (1) (8)
Total deferred tax provision (93) 23  63 
Provision for income taxes $ 155  $ 248  $ 235 
Reconcilement of provision (benefit) for income taxes
The following is a reconciliation for provision for income taxes:
 
Year Ended December 31,
(dollar amounts in millions) 2020 2019 2018
Provision for income taxes computed at the statutory rate $ 204  $ 348  $ 342 
Increases (decreases):
General business credits (99) (88) (80)
Capital loss (25) (62) (60)
Tax-exempt income (17) (21) (23)
Tax-exempt bank owned life insurance income (13) (14) (14)
Affordable housing investment amortization, net of tax benefits 78  70  64 
State income taxes, net 17  11  10 
Stock based compensation 1  (5) (14)
Impact from TCJA —  —  (3)
Other 9  9  13 
Provision for income taxes $ 155  $ 248  $ 235 
Significant components of deferred tax assets and liabilities
The significant components of deferred tax assets and liabilities at December 31, 2020 and 2019 were as follows:
  At December 31,
(dollar amounts in millions) 2020 2019
Deferred tax assets:
Allowances for credit losses $ 448  $ 184 
Net operating and other loss carryforward 128  99 
Lease liability 54  47 
Purchase accounting and other intangibles 30  33 
Pension and other employee benefits 10  12 
Fair value adjustments —  77 
Other assets 5  11 
Total deferred tax assets 675  463 
Deferred tax liabilities:
Lease financing 409  359 
Loan origination costs 137  119 
Operating assets 85  74 
Fair value adjustments 55  — 
Right-of-use asset 46  41 
Mortgage servicing rights 43  36 
Other liabilities 23  11 
Total deferred tax liabilities 798  640 
Net deferred tax liability before valuation allowance (123) (177)
Valuation allowance (11) (6)
Net deferred tax liability $ (134) $ (183)
Reconciliation of gross unrecognized tax benefits
The following table provides a reconciliation of the beginning and ending amounts of gross unrecognized tax benefits:
(dollar amounts in millions) 2020 2019
Unrecognized tax benefits at beginning of year $ —  $ — 
Gross increases for tax positions taken during prior years 46  — 
Unrecognized tax benefits at end of year $ 46  $ —