INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Summary of provision (benefit) for income taxes

The following is a summary of the provision for income taxes:

	Year Ended December 31,
(dollar amounts in millions)	2022		2021		2020
Current tax provision (benefit)
Federal	$	129	$	356	$	236
State	62		13		12
Foreign	5		1		—
Total current tax provision	196		370		248
Deferred tax provision (benefit)
Federal	319		(104)		(103)
State	—		28		10
Total deferred tax provision (benefit)	319		(76)		(93)
Provision for income taxes	$	515	$	294	$	155

Reconcilement of provision (benefit) for income taxes

The following is a reconciliation for provision for income taxes:

	Year Ended December 31,
(dollar amounts in millions)	2022		2021		2020
Provision for income taxes computed at the statutory rate	$	580	$	334	$	204
Increases (decreases):
General business credits	(164)		(126)		(99)
Capital loss	(60)		(32)		(25)
Tax-exempt income	(21)		(18)		(17)
Tax-exempt bank owned life insurance income	(11)		(14)		(13)
Affordable housing investment amortization, net of tax benefits	129		102		78
State income taxes, net	49		32		17
Other	13		16		10
Provision for income taxes	$	515	$	294	$	155

Significant components of deferred tax assets and liabilities

The significant components of deferred tax assets and liabilities were as follows:

	At December 31,
(dollar amounts in millions)	2022		2021
Deferred tax assets:
Fair value adjustments	$	917	$	65
Allowances for credit losses	526		518
Purchase accounting and other intangibles	167		107
Net operating and other loss carryforward	136		143
Lease liability	96		143
Pension and other employee benefits	68		46
Tax credit carryforward	59		194
Other assets	13		14
Total deferred tax assets	1,982		1,230
Deferred tax liabilities:
Lease financing	955		712
Operating assets	133		116
Mortgage servicing rights	112		84
Loan origination costs	97		115
Right-of-use asset	67		113
Securities adjustments	42		40
Other liabilities	10		14
Total deferred tax liabilities	1,416		1,194
Net deferred tax asset (liability) before valuation allowance	566		36
Valuation allowance	(32)		(35)
Net deferred tax asset	$	534	$	1

Reconciliation of gross unrecognized tax benefits

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

	Year Ended December 31,
(dollar amounts in millions)	2022		2021
Unrecognized tax benefits at beginning of year	$	93	$	46
Gross increases for tax positions taken during prior years	1		47
Unrecognized tax benefits at end of year	$	94	$	93