INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Components of Income Tax Provision (Benefit)

The provision (benefit) for income taxes for the year ended December 31, 2024, 2023 and 2022 is comprised of the following:

Provision (Benefit) for Income Taxes


dollars in millions	Year Ended December 31
	2024		2023		2022
Current U.S. federal income tax provision	$	649	$	400	$	58
Deferred U.S. federal income tax provision / (benefit)	68		46		170
Total federal income tax provision	717		446		228
Current state and local income tax provision	157		372		4
Deferred state and local income tax (benefit) / provision	(71)		(222)		23
Total state and local income tax provision	86		150		27
Total non-U.S. income tax provision	12		15		9
Total provision for income taxes	$	815	$	611	$	264

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation from the U.S. Federal statutory rate to BancShares’ actual effective income tax rate for the year ended December 31, 2024, 2023 and 2022 is presented below. Income tax expense (benefit) includes, if applicable, federal, state and foreign taxes.

Percentage of Pretax Income


dollars in millions	Effective Income Tax Rate
	2024						2023						2022
	Pretax Income		Income Tax Expense (Benefit)		Percentage of Pretax Income		Pretax Income		Income Tax Expense (Benefit)		Percentage of Pretax Income		Pretax Income	Income Tax Expense (Benefit)		Percentage of Pretax Income
Federal income taxes and rate	$	3,592	$	754	21.0	%	$	12,077	$	2,536	21.0	%	1,362	$	286	21.0	%
Increase (decrease) due to:
State and local income taxes, net of federal income tax benefit			118		3.3	%			804		6.7	%		53		3.9	%
Gain on acquisition			—		—	%			(2,703)		(22.4)	%		(105)		(7.7)	%
Tax credits			(44)		(1.2)	%			(26)		(0.2)	%		(20)		(1.5)	%
Effect of BOLI surrender			—		—	%			—		—	%		48		3.5	%
Adjustment to unrecognized tax benefits			44		1.2	%			2		—	%		—		—	%

Deferred tax liability adjustment			(78)		(2.2)	%			11		0.1	%		(8)		(0.6)	%
Difference in tax rates applicable to non-U.S. earnings			1		—	%			1		—	%		1		0.1	%

Valuation allowances			(11)		(0.3)	%			(40)		(0.3)	%		(5)		(0.4)	%
Other			31		0.9	%			26		0.2	%		14		1.1	%
Provision for income taxes and effective income tax rate			$	815	22.7	%			$	611	5.1	%		$	264	19.4	%

Schedule of Components of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to deferred income tax assets and liabilities at December 31, 2024 and 2023 are presented below:

Components of Deferred Income Tax Assets and Liabilities


dollars in millions	2024		2023
Deferred Tax Assets:
Allowance for loan and lease losses	$	500	$	542
Net unrealized loss on investment securities available for sale	226		235
Deferred compensation	128		152
Capitalized costs	110		75
Lease liabilities	84		115
Tax credits	79		21
Net operating loss carry forwards	76		118
Accrued liabilities and reserves	53		104


Other	59		63
Total gross deferred tax assets	1,315		1,425
Deferred Tax Liabilities:
Basis difference in loans	(2,243)		(2,598)
Operating leases	(1,847)		(1,729)
Loans and direct financing leases	(329)		(260)
Pension assets	(129)		(110)
Right of use assets for operating leases	(73)		(110)






Other	(149)		(169)
Total deferred tax liabilities	(4,770)		(4,976)
Total net deferred tax liability before valuation allowances	(3,455)		(3,551)
Less: valuation allowances	(17)		(28)
Net deferred tax liability after valuation allowances	$	(3,472)	$	(3,579)

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of UTBs is as follows:

Unrecognized Tax Benefits


	December 31, 2024						December 31, 2023		December 31, 2022
dollars in millions	Liabilities for Unrecognized Tax Benefits		Interest / Penalties		Total		Total		Total
Balance at beginning of period	$	28	$	3	$	31	$	30	$	31

Effect of CIT Merger	—		—		—		—		6
Additions for tax positions related to current year	8		—		8		—		—
Additions for tax positions related to prior years	42		6		48		5		1
Reductions for tax positions of prior years	—		—		—		—		(2)
Expiration of statutes of limitations	(1)		—		(1)		(2)		(1)
Settlements	—		—		—		(2)		(5)

Balance at end of period	$	77	$	9	$	86	$	31	$	30

Summary of Income Tax Audits

The table below presents the earliest tax years that remain subject to examination by major jurisdiction.


Jurisdiction			December 31, 2024
U.S. Federal			2021
New York State and City			2015
North Carolina			2016
California			2017
Canada			2017