Income Taxes (Tables)

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

The components of income tax expense were:

	Three Months Ended September 30				Nine Months Ended September 30
(Dollars in Millions)	2024		2023		2024		2023
Federal
Current	$	144	$	416	$	645	$	1,076
Deferred	79		(51)		261		(50)
Federal income tax	223		365		906		1,026
State
Current	105		62		214		277
Deferred	22		4		22		(35)
State income tax	127		66		236		242
Total income tax provision	$	350	$	431	$	1,142	$	1,268

Reconciliation of Expected Income Tax Expense at Federal Statutory Rate to the Applicable Income Tax Expense

A reconciliation of expected income tax expense at the federal statutory rate of 21 percent to the Company’s applicable income tax expense follows:

	Three Months Ended September 30				Nine Months Ended September 30
(Dollars in Millions)	2024		2023		2024		2023
Tax at statutory rate	$	435	$	411	$	1,218	$	1,232
State income tax, at statutory rates, net of federal tax benefit	106		85		289		270
Tax effect of
Tax credits and benefits, net of related expenses	(140)		(96)		(284)		(236)
Exam resolutions	(1)		—		(98)		—
Tax-exempt income	(38)		(40)		(105)		(115)
Other items	(12)		71		122		117
Applicable income taxes	$	350	$	431	$	1,142	$	1,268