Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Applicable Income Taxes Included in the Consolidated Statements Of Income

The following is a summary of applicable income taxes included in the Consolidated Statements of Income for the years ended December 31:


($ in millions)	2024		2023	2022
Current income tax expense:
U.S. Federal income taxes	$	452	647	570
State and local income taxes	75		96	126
Foreign income taxes	3		2	11
Total current income tax expense	530		745	707
Deferred income tax expense (benefit):
U.S. Federal income taxes	84		(81)	(31)
State and local income taxes	(13)		(23)	(29)
Foreign income taxes	1		(2)	—
Total deferred income tax expense (benefit)	72		(106)	(60)
Applicable income tax expense	$	602	639	647

Reconciliation Between the Statutory U.S. Income Tax Rate and the Bancorp's Effective Tax Rate

The following is a reconciliation between the statutory U.S. Federal income tax rate and the Bancorp’s effective tax rate for the years ended December 31:


	2024		2023	2022
Statutory tax rate	21.0	%	21.0	21.0
Increase (decrease) resulting from:
State taxes, net of federal benefit	1.7		1.9	2.5
Tax-exempt income	(0.9)		(0.8)	(0.8)
Tax credits and other tax benefits from CDC investments	(8.5)		(7.7)	(7.1)
Proportional amortization of qualifying CDC investments	6.8		6.7	6.1
Other tax credits	(0.1)		(0.7)	(0.4)
Other, net	0.6		1.0	(0.3)
Effective tax rate	20.6	%	21.4	21.0

Reconciliation of the Beginning and Ending Amounts of the Bancorp's Unrecognized Tax Benefits

The following table provides a reconciliation of the beginning and ending amounts of the Bancorp’s unrecognized tax benefits:


($ in millions)	2024		2023	2022
Unrecognized tax benefits at January 1	$	97	94	102
Gross increases for tax positions taken during prior period	12		14	3
Gross decreases for tax positions taken during prior period	(7)		(5)	(5)
Gross increases for tax positions taken during current period	21		15	11
Settlements with taxing authorities	(1)		(1)	—
Lapse of applicable statute of limitations	(21)		(20)	(17)
Unrecognized tax benefits at December 31(a)	$	101	97	94

(a)All amounts represent unrecognized tax benefits that, if recognized, would affect the annual effective tax rate.

Deferred Income Taxes Included in Other Assets in the Consolidated Balance Sheets

Deferred income taxes are comprised of the following items at December 31:


($ in millions)	2024		2023
Deferred tax assets:
Other comprehensive income	$	1,459	1,395
Allowance for loan and lease losses	494		488
Loan origination fees and costs	199		195
Deferred compensation	115		114
Reserves	38		33
State deferred taxes	35		43
Reserves for unfunded commitments	28		35
Federal net operating loss carryforwards	7		19
State net operating loss carryforwards	6		11
Other	138		135
Total deferred tax assets	$	2,519	2,468
Deferred tax liabilities:
Lease financing	$	583	551
MSRs and related economic hedges	153		141
Bank premises and equipment	76		68
Goodwill and intangible assets	64		70
Investments in joint ventures and partnership interests	48		58
Other	168		143
Total deferred tax liabilities	$	1,092	1,031
Total net deferred tax asset	$	1,427	1,437