Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.22.4
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Summary of provision (benefit) for income taxes
The following is a summary of the provision for income taxes:
  Year Ended December 31,
(dollar amounts in millions) 2022 2021 2020
Current tax provision (benefit)
Federal $ 129  $ 356  $ 236 
State 62  13  12 
Foreign — 
Total current tax provision 196  370  248 
Deferred tax provision (benefit)
Federal 319  (104) (103)
State —  28  10 
Total deferred tax provision (benefit) 319  (76) (93)
Provision for income taxes $ 515  $ 294  $ 155 
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) 2022 2021 2020
Provision for income taxes computed at the statutory rate $ 580  $ 334  $ 204 
Increases (decreases):
General business credits (164) (126) (99)
Capital loss (60) (32) (25)
Tax-exempt income (21) (18) (17)
Tax-exempt bank owned life insurance income (11) (14) (13)
Affordable housing investment amortization, net of tax benefits 129  102  78 
State income taxes, net 49  32  17 
Other 13  16  10 
Provision for income taxes $ 515  $ 294  $ 155 
Significant components of deferred tax assets and liabilities
The significant components of deferred tax assets and liabilities were as follows:
  At December 31,
(dollar amounts in millions) 2022 2021
Deferred tax assets:
Fair value adjustments $ 917  $ 65 
Allowances for credit losses 526  518 
Purchase accounting and other intangibles 167  107 
Net operating and other loss carryforward 136  143 
Lease liability 96  143 
Pension and other employee benefits 68  46 
Tax credit carryforward 59  194 
Other assets 13  14 
Total deferred tax assets 1,982  1,230 
Deferred tax liabilities:
Lease financing 955  712 
Operating assets 133  116 
Mortgage servicing rights 112  84 
Loan origination costs 97  115 
Right-of-use asset 67  113 
Securities adjustments 42  40 
Other liabilities 10  14 
Total deferred tax liabilities 1,416  1,194 
Net deferred tax asset (liability) before valuation allowance 566  36 
Valuation allowance (32) (35)
Net deferred tax asset $ 534  $
Reconciliation of gross unrecognized tax benefits
The following table provides a reconciliation of the beginning and ending amounts of gross unrecognized tax benefits:
Year Ended December 31,
(dollar amounts in millions) 2022 2021
Unrecognized tax benefits at beginning of year $ 93  $ 46 
Gross increases for tax positions taken during prior years 47 
Unrecognized tax benefits at end of year $ 94  $ 93