INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of comprehensive income tax

The following table presents total income tax expense:

	Year Ended December 31,
(dollars in millions)	2023	2022	2021
Income tax expense	$422	$582	$658
Tax effect of changes in OCI	289	(1,319)	(199)
Total comprehensive income tax expense (benefit)	$711	($737)	$459

Schedule of components of income tax expense

The following table presents the components of income tax expense:

(dollars in millions)	Current	Deferred	Total
Year Ended December 31, 2023
U.S. federal	$497	($135)	$362
State and local	167	(107)	60
Total	$664	($242)	$422
Year Ended December 31, 2022
U.S. federal	$355	$88	$443
State and local	170	(31)	139
Total	$525	$57	$582
Year Ended December 31, 2021
U.S. federal	$871	($345)	$526
State and local	216	(84)	132
Total	$1,087	($429)	$658

Schedule of effective income tax rate reconciliation

The following table presents a reconciliation between the U.S. federal income tax rate and the Company’s effective income tax rate:

	Year Ended December 31,
	2023			2022			2021
(dollars in millions)	Amount	Rate		Amount	Rate		Amount	Rate
U.S. federal income tax expense and tax rate	$426	21.0	%	$558	21.0	%	$625	21.0	%
Increase (decrease) resulting from:
State and local income taxes (net of federal benefit)	58	2.9		133	5.0		126	4.2
Bank-owned life insurance	(20)	(1.0)		(19)	(0.7)		(14)	(0.5)
Tax-exempt interest	(12)	(0.6)		(8)	(0.3)		(7)	(0.2)
Tax advantaged investments (including related credits)	(77)	(3.8)		(102)	(3.8)		(95)	(3.2)
Other tax credits	(3)	(0.1)		(9)	(0.3)		(7)	(0.2)
Adjustments for uncertain tax positions	5	0.2		1	—		3	0.1
Non-deductible FDIC insurance premiums	35	1.7		20	0.7		14	0.5
Legacy tax matters	—	—		3	0.1		—	—
Other	10	0.5		5	0.2		13	0.4
Total income tax expense and effective tax rate	$422	20.8	%	$582	21.9	%	$658	22.1	%

Schedule of deferred tax assets and liabilities

The following table presents the significant components of the Company’s deferred tax assets and liabilities:

	December 31,
(dollars in millions)	2023	2022
Deferred tax assets:
Other comprehensive income	$1,291	$1,546
Allowance for credit losses	555	511
Federal and state net operating and capital loss carryforwards	79	77
Accrued expenses	1,152	863
Investment and other tax credit carryforwards	130	131
Other	9	19
Total deferred tax assets	3,216	3,147
Valuation allowance	(137)	(133)
Deferred tax assets, net of valuation allowance	3,079	3,014
Deferred tax liabilities:
Leasing transactions	297	287
Amortization of intangibles	421	413
Depreciation	532	470
Pension and other employee compensation plans	130	128
Partnerships	12	87
Deferred Income	3	12
MSRs	252	203
Total deferred tax liabilities	1,647	1,600
Net deferred tax asset (liability)	$1,432	$1,414

Schedule of unrecognized tax benefits roll forward

The following table presents a reconciliation of the beginning and ending amount of unrecognized tax benefits:

	December 31,
(dollars in millions)	2023	2022	2021
Balance at the beginning of the year	$6	$7	$4
Gross increase for tax positions related to current year	1	—	1
Gross increase for tax positions related to prior years	1	—	3
Decrease for tax positions as a result of the lapse of the statutes of limitations	—	—	(1)
Decrease for tax positions related to settlements with taxing authorities	(1)	(1)	—
Balance at end of year	$7	$6	$7