INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

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)	2024		2023		2022
Current tax provision
Federal	$	411	$	644	$	129
State	43		63		62
Foreign	15		8		5
Total current tax provision	469		715		196
Deferred tax (benefit) provision
Federal	(24)		(291)		319
State	(2)		(11)		—
Total deferred tax (benefit) provision	(26)		(302)		319
Provision for income taxes	$	443	$	413	$	515

Reconcilement of Provision (Benefit) for Income Taxes

The following is a reconciliation of the provision for income taxes.

	Year Ended December 31,
(dollar amounts in millions)	2024		2023		2022
Provision for income taxes computed at the statutory rate	$	505	$	501	$	580
Increases (decreases):
General business credits	(271)		(253)		(164)
Tax-exempt income	(29)		(28)		(21)
Capital loss	—		—		(60)
Affordable housing investment amortization, net of tax benefits	193		148		129
State income taxes, net	32		41		49
Other	13		4		2
Provision for income taxes	$	443	$	413	$	515

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)	2024		2023
Deferred tax assets:
Fair value adjustments	$	848	$	791
Allowances for credit losses	559		564
Tax credit carryforward	452		240
Research and development expenses	108		91
Net operating and other loss carryforward	90		101
Lease liability	88		89
Pension and other employee benefits	73		70
Accrued expense/prepaid	41		61
Purchase accounting and other intangibles	5		82
Other assets	4		4
Total deferred tax assets	2,268		2,093
Deferred tax liabilities:
Lease financing	968		873
Loan origination costs	162		155
Mortgage servicing rights	116		124
Operating assets	78		96
Right-of-use asset	64		62
Securities adjustments	48		40
Other liabilities	3		3
Total deferred tax liabilities	1,439		1,353
Net deferred tax asset before valuation allowance	829		740
Valuation allowance	(36)		(30)
Net deferred tax asset	$	793	$	710

Reconciliation of Gross Unrealized 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)	2024		2023
Unrecognized tax benefits at beginning of year	$	8	$	94
Gross increases for tax positions taken during prior years	7		8
Gross decreases for tax positions taken during prior years	(2)		—
Gross increases for tax positions taken during current year	6		—
Settlements with taxing authorities	—		(94)
Unrecognized tax benefits at end of year	$	19	$	8