Income Taxes

3 Months Ended

Mar. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 11 Income Taxes

The components of income tax expense were:

	Three Months Ended March 31
(Dollars in Millions)	2025		2024
Federal
Current	$	(1)	$	180
Deferred	328		133
Federal income tax	327		313
State
Current	97		21
Deferred	19		13
State income tax	116		34
Total income tax provision	$	443	$	347

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 March 31
(Dollars in Millions)	2025		2024
Tax at statutory rate	$	453	$	351
State income tax, at statutory rates, net of federal tax benefit	112		81
Tax effect of
Tax credits and benefits, net of related expenses	(123)		(61)
Exam resolutions	—		(65)
Tax-exempt income	(33)		(31)
Other items	34		72
Applicable income taxes	$	443	$	347

The Company’s income tax returns are subject to review and examination by federal, state, local and foreign government authorities. On an ongoing basis, numerous federal, state, local and foreign examinations are in progress and cover multiple tax years. As of March 31, 2025, federal tax examinations for all years ending through December 31, 2020 are completed and resolved. The Company’s tax returns for the years ended December 31, 2021 through December 31, 2022 are under examination by the Internal Revenue Service. The years open to examination by foreign, state and local government authorities vary by jurisdiction.

The Company’s net deferred tax asset was $5.7 billion at March 31, 2025 and $6.3 billion at December 31, 2024.