INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

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, 2025
Federal	$472	($78)	$394
State and local	107	(4)	103
Total	$579	($82)	$497
Year Ended December 31, 2024
Federal	$447	($127)	$320
State and local	109	(50)	59
Total	$556	($177)	$379
Year Ended December 31, 2023
Federal	$497	($135)	$362
State and local	167	(107)	60
Total	$664	($242)	$422

Schedule of effective income tax rate reconciliation

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

	Year Ended December 31,
	2025			2024			2023
(dollars in millions)	Amount	Rate		Amount	Rate		Amount	Rate
U.S. federal statutory tax rate	$489	21.0	%	$396	21.0	%	$426	21.0	%
State and local income taxes, net of federal income tax effect(1)	82	3.5		46	2.5		58	2.9
Tax credits
Low income housing tax-advantaged investments(2)	(56)	(2.4)		(52)	(2.8)		(56)	(2.8)
Renewable energy tax-advantaged investments(2)	(19)	(0.8)		(30)	(1.6)		(21)	(1.0)
Other	(2)	(0.1)		(2)	(0.1)		(3)	(0.1)
Changes in valuation allowances	1	—		3	0.1		—	—
Nontaxable or nondeductible items
FDIC insurance premiums	32	1.3		34	1.8		35	1.7
Bank-owned life insurance	(24)	(1.0)		(22)	(1.2)		(20)	(1.0)
Other	(3)	(0.1)		(3)	(0.1)		(3)	(0.2)
Changes in unrecognized tax benefits	—	—		—	—		5	0.2
Other adjustments	(3)	(0.1)		9	0.5		1	0.1
Effective tax rate	$497	21.3	%	$379	20.1	%	$422	20.8	%

(1) States and local jurisdictions that make up the majority (greater than 50 percent) of the tax effect in this category include Massachusetts, New York, and New York City for 2025, 2024, and 2023.

(2) Includes tax credits, other tax benefits, and certain costs associated with tax-advantaged investments.

Schedule of income taxes paid

The following table presents income taxes paid by the Company:

	Year Ended December 31,
(dollars in millions)	2025	2024	2023
Federal	$25	$74	$173
State or jurisdiction(1)
California	11	12	—
Massachusetts	—	—	31
New Jersey	16	11	—
New York	17	19	37
New York City	24	23	23
Rhode Island	17	18	21
Other	41	51	90
Total income taxes paid	$151	$208	$375

(1) The amount of income taxes paid to a particular state or jurisdiction is disclosed only for those states and jurisdictions that meet the 5% disaggregation threshold in a given year. Taxes paid to states and jurisdictions that do not meet the 5% disaggregation threshold in a given year are included in Other.

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)	2025	2024
Deferred tax assets:
Other comprehensive income	$669	$1,242
Allowance for credit losses	517	552
Federal and state net operating and capital loss carryforwards	58	69
Accrued expenses	1,193	1,198
Investment and other tax credit carryforwards	342	214
Partnerships	26	4
Other	10	10
Total deferred tax assets	2,815	3,289
Valuation allowance	(105)	(120)
Deferred tax assets, net of valuation allowance	2,710	3,169
Deferred tax liabilities:
Leasing transactions	207	208
Amortization of intangibles	424	425
Depreciation	521	570
Pension and other employee compensation plans	148	146
Partnerships	—	—
Deferred Income	62	24
MSRs	252	243
Total deferred tax liabilities	1,614	1,616
Net deferred tax asset (liability)	$1,096	$1,553

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)	2025	2024	2023
Balance at the beginning of the year	$5	$7	$6
Gross increase for tax positions related to current year	10	1	1
Gross increase for tax positions related to prior years	—	1	1
Decrease for tax positions as a result of the lapse of the statutes of limitations	(1)	(1)	—
Decrease for tax positions related to settlements with taxing authorities	(9)	(3)	(1)
Balance at end of year(1)	$5	$5	$7

(1) All amounts represent unrecognized tax benefits that, if recognized, would affect the Company’s effective tax rate.