Income taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

The components of income tax expense were as follows:

	Year Ended December 31,
(Dollars in millions)	2024		2023		2022
Current:
Federal	$	399	$	580	$	367
State and local	169		228		143
Total current	568		808		510
Deferred:
Federal	(21)		(64)		(18)
State and local	(6)		(33)		(12)
Total deferred	(27)		(97)		(30)
Amortization of investments in partnerships under proportional    amortization method	181		167		140
Total income taxes	$	722	$	878	$	620

Schedule of Income Tax Expense Benefit Reconciliation

Total income taxes differed from the amount computed by applying the statutory federal income tax rate to pre-tax income as follows:

	Year Ended December 31,
(Dollars in millions)	2024		2023		2022
Income taxes at statutory federal income tax rate	$	695	$	760	$	548
Increase (decrease) in taxes:
Tax-exempt income	(53)		(51)		(37)
State and local income taxes, net of federal income tax effect	136		161		110
Tax benefits for investments in partnerships under proportional amortization method, net	(38)		(26)		(22)
Other	(18)		34		21
Total income taxes	$	722	$	878	$	620

Deferred Tax Assets (Liabilities)

Deferred tax assets (liabilities) were comprised of the following at December 31:

(Dollars in millions)	2024		2023		2022
Deferred tax assets:
Losses on loans and other assets	$	671	$	686	$	641
Operating lease liabilities	170		182		183
Postretirement and other employee benefits	63		47		—
Incentive and other compensation plans	36		30		34
Unrealized losses	52		64		115
Interest on loans	28		42		54
Losses on cash flow hedges	34		52		87
Stock-based compensation	49		54		51
Other	139		153		81
Gross deferred tax assets	1,242		1,310		1,246
Deferred tax liabilities:
Retirement benefits	(304)		(198)		(88)
Leases	(150)		(171)		(204)
Right-of-use assets	(147)		(165)		(163)
Depreciation and amortization	(56)		(157)		(155)
Capitalized servicing rights	(36)		(38)		(51)
Postretirement and other employee benefits	—		—		(29)
Other	(68)		(59)		(69)
Gross deferred tax liabilities	(761)		(788)		(759)
Net deferred tax asset	$	481	$	522	$	487

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:

(Dollars in millions)	Federal, State and Local Tax		Accrued Interest		Unrecognized Income Tax Benefits
Gross unrecognized tax benefits at January 1, 2022	$	38	$	8	$	46
Increases as a result of tax positions taken in prior years	—		3		3
Unrecognized tax benefits assumed in a business combination	3		1		4
Decreases as a result of tax positions taken in prior years	(11)		(4)		(15)
Gross unrecognized tax benefits at December 31, 2022	30		8		38
Increases as a result of tax positions taken in prior years	5		1		6
Decreases as a result of tax positions taken in prior years	(13)		(3)		(16)
Gross unrecognized tax benefits at December 31, 2023	22		6		28
Increases as a result of tax positions taken in prior years	13		7		20
Decreases as a result of tax positions taken in prior years	(10)		(2)		(12)
Gross unrecognized tax benefits at December 31, 2024	$	25	$	11	$	36
Less: Federal, state and local income tax benefits					(7)
Net unrecognized tax benefits at December 31, 2024 that, if recognized, would impact the effective income tax rate					$	29