Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.25.0.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2024
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) 2024 2023 2022
Current tax provision
Federal $ 411  $ 644  $ 129 
State 43  63  62 
Foreign 15  8  5 
Total current tax provision 469  715  196 
Deferred tax (benefit) provision
Federal (24) (291) 319 
State (2) (11) — 
Total deferred tax (benefit) provision (26) (302) 319 
Provision for income taxes $ 443  $ 413  $ 515 
Reconcilement of Provision (Benefit) for Income Taxes
The following is a reconciliation of the provision for income taxes.
 
Year Ended December 31,
(dollar amounts in millions) 2024 2023 2022
Provision for income taxes computed at the statutory rate $ 505  $ 501  $ 580 
Increases (decreases):
General business credits (271) (253) (164)
Tax-exempt income (29) (28) (21)
Capital loss —  —  (60)
Affordable housing investment amortization, net of tax benefits 193  148  129 
State income taxes, net 32  41  49 
Other 13  4  2 
Provision for income taxes $ 443  $ 413  $ 515 
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) 2024 2023
Deferred tax assets:
Fair value adjustments $ 848  $ 791 
Allowances for credit losses 559  564 
Tax credit carryforward 452  240 
Research and development expenses 108  91 
Net operating and other loss carryforward 90  101 
Lease liability 88  89 
Pension and other employee benefits 73  70 
Accrued expense/prepaid 41  61 
Purchase accounting and other intangibles 5  82 
Other assets 4  4 
Total deferred tax assets 2,268  2,093 
Deferred tax liabilities:
Lease financing 968  873 
Loan origination costs 162  155 
Mortgage servicing rights 116  124 
Operating assets 78  96 
Right-of-use asset 64  62 
Securities adjustments 48  40 
Other liabilities 3  3 
Total deferred tax liabilities 1,439  1,353 
Net deferred tax asset before valuation allowance
 829  740 
Valuation allowance (36) (30)
Net deferred tax asset $ 793  $ 710 
Reconciliation of Gross Unrealized 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) 2024 2023
Unrecognized tax benefits at beginning of year $ 8  $ 94 
Gross increases for tax positions taken during prior years 7  8 
Gross decreases for tax positions taken during prior years (2) — 
Gross increases for tax positions taken during current year 6  — 
Settlements with taxing authorities —  (94)
Unrecognized tax benefits at end of year $ 19  $ 8