INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

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)	2023		2022		2021
Current tax provision (benefit)
Federal	$	644	$	129	$	356
State	63		62		13
Foreign	8		5		1
Total current tax provision	715		196		370
Deferred tax provision (benefit)
Federal	(291)		319		(104)
State	(11)		—		28
Total deferred tax provision (benefit)	(302)		319		(76)
Provision for income taxes	$	413	$	515	$	294

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)	2023		2022		2021
Provision for income taxes computed at the statutory rate	$	501	$	580	$	334
Increases (decreases):
General business credits	(253)		(164)		(126)
Tax-exempt income	(28)		(21)		(18)
Capital loss	—		(60)		(32)
Affordable housing investment amortization, net of tax benefits	148		129		102
State income taxes, net	41		49		32
Other	4		2		2
Provision for income taxes	$	413	$	515	$	294

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)	2023		2022
Deferred tax assets:
Fair value adjustments	$	791	$	917
Allowances for credit losses	564		526
Tax credit carryforward	240		59
Net operating and other loss carryforward	101		136
Research and development expenses	91		—
Lease liability	89		96
Purchase accounting and other intangibles	82		167
Pension and other employee benefits	70		68
Accrued expense/prepaid	61		8
Other assets	4		5
Total deferred tax assets	2,093		1,982
Deferred tax liabilities:
Lease financing	873		955
Loan origination costs	155		97
Mortgage servicing rights	124		112
Operating assets	96		133
Right-of-use asset	62		67
Securities adjustments	40		42
Other liabilities	3		10
Total deferred tax liabilities	1,353		1,416
Net deferred tax asset (liability) before valuation allowance	740		566
Valuation allowance	(30)		(32)
Net deferred tax asset	$	710	$	534

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)	2023		2022
Unrecognized tax benefits at beginning of year	$	94	$	93
Gross increases for tax positions taken during prior years	8		1
Settlements with taxing authorities	(94)		—
Unrecognized tax benefits at end of year	$	8	$	94