Income Taxes (Tables)

3 Months Ended

Mar. 31, 2025

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

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

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 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