Federal, State, and Local Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Deferred Tax Assets and Liabilities

The following table summarizes the components of the Company’s net deferred tax asset (liability) at December 31, 2024 and 2023:


	Year Ended December 31,
(in millions)	2024		2023
Deferred Tax Assets:
Allowance for credit losses on loans and leases	$	314	$	253
Acquisition accounting and fair value adjustments on securities (including OTTI)	177		188
Right of Use Liability	121		32
Compensation and related benefit obligations	54		30
Other	38		22
Unrealized gains and amortization of mortgage servicing rights	26		—


Accrued Expenses	16		19
Net operating loss carryforwards	12		8
Gross deferred tax assets	$	758	$	552
Valuation allowance	$	(4)	$	(5)
Net deferred tax asset after valuation allowance	$	754	$	547
Deferred Tax Liabilities:
Leases	$	(315)	$	(492)
Fair value adjustments on loans	(198)		(210)
Right of Use Asset	(109)		(32)
Amortizable intangibles	(95)		(127)
Prepaid pension cost	(37)		(35)
Premises and equipment	(29)		(44)
Other	(14)		(36)
Acquisition accounting and fair value adjustments on debt	(8)		(9)
Unrealized gains and amortization of mortgage servicing rights	—		(79)


Gross deferred tax liabilities	$	(805)	$	(1,064)
Net deferred tax liability	$	(51)	$	(517)

Schedule of Components of the Provision (Benefit) for Income Taxes

The following table summarizes the Company’s income tax expense for the years ended December 31, 2024, 2023, and 2022:


	Year Ended December 31,
(in millions)	2024		2023		2022
Federal – current	$	126	$	156	$	147
State and local – current	25		59		32
Total current	151		215		179
Federal – deferred	(336)		(137)		(10)
State and local – deferred	(75)		(49)		7
Total deferred	(411)		(186)		(3)
Income tax expense reported in net income	(260)		29		176
Income tax impact reported in stockholders’ equity related to:
Securities available-for-sale	(24)		15		(223)
Pension liability adjustments	(2)		6		(6)
Cash flow hedge	12		(14)		23

Total income taxes	$	(274)	$	36	$	(30)

Schedule of Differences Between the Effective Tax Rate and the Statutory Federal Tax Rate

The following table presents a reconciliation of statutory federal income tax expense (benefit) to combined actual income tax expense (benefit) reported in net income for the years ended December 31, 2024, 2023, and 2022:


	Year Ended December 31,
(in millions)	2024		2023		2022
Statutory federal income tax at 21%	$	(289)	$	(10)	$	174
State and local income taxes, net of federal income tax effect	(39)		8		31
Non-deductible FDIC deposit insurance premiums	66		16		10
Non-taxable or deductible bargain gain	25		(447)		(33)
Other, net	5		2		5
Effect of tax deductibility of deferred compensation	3		(3)		(3)
Tax exempt income	(8)		(6)		—
Non-taxable expense of bank-owned life insurance	(9)		(9)		(7)
Federal tax credits	(14)		(31)		(1)



Non-deductible goodwill impairment	—		509		—
Total income tax expense	$	(260)	$	29	$	176

Schedule of Unrecognized Tax Benefits

The following table summarizes changes in the liability for unrecognized gross tax benefits for the years ended December 31, 2024, 2023, and 2022:


	Year Ended December 31,
(in millions)	2024		2023		2022
Uncertain tax positions at beginning of year	$	42	$	40	$	39
Additions for tax positions relating to current-year operations	1		1		1
Additions for tax positions relating to prior tax years	—		2		—
Subtractions for tax positions relating to prior tax years	—		(1)		—
Uncertain tax positions at end of year	$	43	$	42	$	40