Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Income Tax Expense (Benefit)

The following schedule presents the major components of our income tax expense:


(In millions)	2023		2022		2021
Federal:
Current	$	168	$	236	$	230
Deferred	—		(38)		27
Total Federal	168		198		257
State:
Current	47		52		55
Deferred	(9)		(5)		5
Total State	38		47		60
Total income tax expense	$	206	$	245	$	317

Schedule of Statutory Federal Income Tax Rate Reconciles to Actual Income Tax Expense (Benefit)

The following schedule presents a reconciliation of income tax expense computed at the statutory federal income tax rate of 21% and the actual income tax expense:


(In millions)	2023		2022		2021

Income tax expense at statutory federal rate	$	186	$	242	$	304
State income taxes including credits, net	31		38		48
Other nondeductible expenses	29		13		8
Nontaxable income	(41)		(40)		(36)
Share-based compensation	(1)		(4)		(3)
Other	2		(4)		(4)


Total income tax expense	$	206	$	245	$	317

Schedule of Tax Effects of Deferred Tax Assets and Deferred Tax Liabilities

The following schedule presents the tax effects of temporary differences that give rise to significant portions of DTAs and DTLs:


(In millions)	December 31,
	2023		2022
Gross deferred tax assets:
Book loan loss deduction in excess of tax	$	181	$	157

Deferred compensation	81		83


Security investments and derivative fair value adjustments	879		1,011
Lease liabilities	50		49
Capitalized costs	37		82
Other	48		29
Total deferred tax assets before valuation allowance	1,276		1,411
Valuation allowance	—		—
Total deferred tax assets	1,276		1,411
Gross deferred tax liabilities:

Premises and equipment, due to differences in depreciation	(101)		(99)
Federal Home Loan Bank stock dividends	(3)		(2)
Leasing operations	(49)		(49)
Prepaid expenses	(5)		(5)
Prepaid pension reserves	—		(3)
Mortgage servicing	(5)		(12)

Deferred loan costs	(34)		(34)
ROU assets	(43)		(44)
Qualified opportunity fund deferred gains	(27)		(26)
Equity investments	(10)		(9)
Total deferred tax liabilities	(277)		(283)
Net deferred tax assets (liabilities)	$	999	$	1,128

Schedule of Reconciliation of Gross Unrecognized Tax Benefits

The following schedule presents a roll-forward of gross unrecognized tax benefits:


(In millions)	2023		2022		2021

Balance at beginning of year	$	13	$	14	$	11
Tax positions related to current year:
Additions	2		2		2

Tax positions related to prior years:
Additions	10		—		1
Reductions	—		(1)		—
Settlements with taxing authorities	(3)		—		—
Lapses in statutes of limitations	(7)		(2)		—
Balance at end of year	$	15	$	13	$	14