Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

The components of income tax expense are as follows:

Table 109: Components of Income Tax Expense                         

Year ended December 31 In millions	2024		2023		2022
Current
Federal	$	1,098	$	1,021	$	782
State	221		320		227
Total current	1,319		1,341		1,009
Deferred
Federal	(1)		(149)		307
State	(29)		(103)		44
Total deferred	(30)		(252)		351
Total	$	1,289	$	1,089	$	1,360

Deferred Tax Assets and Liabilities

Significant components of deferred tax assets and liabilities are as follows:

Table 110: Deferred Tax Assets and Liabilities                    

December 31 – in millions	2024		2023
Deferred tax assets
Net unrealized losses on securities and financial instruments	$	2,098	$	2,417
Allowance for loan and lease losses	1,105		1,147
Lease obligations	475		508
Compensation and benefits	312		261
Allowance for unfunded lending related commitments	177		161
Accrued expenses	188		209
Other	340		384
Total gross deferred tax assets	4,695		5,087
Valuation allowance	(23)		(26)
Total deferred tax assets	4,672		5,061
Deferred tax liabilities
Leasing	919		938
Fixed assets	397		477
Right of Use Assets	412		445
Mortgage servicing rights	434		359
Goodwill and intangibles	249		252
Other	472		461
Total deferred tax liabilities	2,883		2,932
Net deferred tax asset	$	1,789	$	2,129

Reconciliation of Statutory and Effective Tax Rates

A reconciliation between the statutory and effective tax rates follows:

Table 111: Reconciliation of Statutory and Effective Tax Rates

Year ended December 31	2024		2023		2022
Statutory tax rate	21.0	%	21.0	%	21.0	%
Increases (decreases) resulting from:
State taxes net of federal benefit	3.0		2.9		2.7
Tax-exempt interest	(1.4)		(1.7)		(1.2)
Life insurance	(0.9)		(0.9)		(0.8)
Tax credits	(5.0)		(5.2)		(3.2)
Other	1.1		0.1		(0.3)
Effective tax rate	17.8	%	16.2	%	18.2	%

Net Operating Loss Carryforwards

The net operating loss carryforwards at December 31, 2024 and 2023 follow

Table 112: Net Operating Loss Carryforwards

Dollars in millions	December 31, 2024		December 31, 2023		Expiration
Net Operating Loss Carryforwards (a):
State	$	585	$	624	2025-2036

(a)There were no federal net operating loss carryforwards at both December 31, 2024 and 2023.

Change in Unrecognized Tax Benefits

A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows:

Table 113: Change in Unrecognized Tax Benefits

In millions	2024		2023		2022
Balance of gross unrecognized tax benefits at January 1	$	368	$	318	$	275
Increases:
Positions taken during a current period	23		20
Positions taken during a prior period	35		35		46
Decreases:
Settlements with taxing authorities	(1)		(4)		(3)
Reductions resulting from lapse of statute of limitations	(60)		(1)
Balance of gross unrecognized tax benefits at December 31	$	365	$	368	$	318
Favorable impact if recognized	$	314	$	306	$	258

IRS Tax Examination Status

Table 114: IRS Tax Examination Status

	Year(s)		Status at December 31, 2024
	The PNC Financial Services Group, Inc.	BBVA USA Bancshares, Inc.
Federal	2020 2021	2018 2020	Under Exam