Federal, State And Local Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Components of Net Deferred Tax Asset (Liability)

The following table summarizes the components of the Company’s net deferred tax asset (liability) at December 31, 2022 and 2021:

	December 31,
(in millions)	2022			2021
Deferred Tax Assets:
Allowance for credit losses on loans and leases	$	102		$	55
Acquisition accounting and fair value adjustments on securities (including OTTI)		227			21
Acquisition accounting and fair value adjustments on loans		36			—
Capitalized loans costs		46			—
Compensation and related benefit obligations		23			17
Capitalized research and development costs		10			—
Net operating loss carryforwards		15			1
Other		18			15
Gross deferred tax assets		477			109
Valuation allowance		(5	)		—
Net deferred tax asset after valuation allowance	$	472		$	109
Deferred Tax Liabilities:
Leases	$	(328	)	$	(360	)
Mortgage servicing rights		(105	)	$	—
Premises and equipment		(18	)		(5	)
Prepaid pension cost		(29	)		(35	)
Fair value adjustments on loans		—			(81	)
Amortizable intangibles		(71	)		(3	)
Acquisition accounting and fair value adjustments on deposits		(9	)		—
Acquisition accounting and fair value adjustments on debt		(10	)		—
Other		(9	)		(9	)
Gross deferred tax liabilities	$	(579	)	$	(493	)
Net deferred tax liability	$	(107	)	$	(384	)

Income Tax Expense (Benefit)

The following table summarizes the Company’s income tax expense for the years ended December 31, 2022, 2021, and 2020:

	December 31,
(in millions)	2022			2021			2020
Federal – current	$	147		$	188		$	(148	)
State and local – current		32			35			5
Total current		179			223			(143	)
Federal – deferred		(10	)		(28	)		190
State and local – deferred		7			15			29
Total deferred		(3	)		(13	)		219
Income tax expense reported in net income		176			210			77
Income tax expense reported in stockholders’ equity related to:
Securities available-for-sale		(223	)		(42	)		16
Pension liability adjustments		(6	)		10			—
Cash flow hedge		23			9			(13	)
Adoption of ASU 2016-13		—			—			(4	)
Total income taxes	$	(30	)	$	187		$	76

Reconciliation of Statutory Federal Income Tax Expense (Benefit) Reported in Net Income to Combined Actual Income Tax Expense (Benefit)

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, 2022, 2021, and 2020:

	December 31,
(in millions)	2022			2021			2020
Statutory federal income tax at 21%	$	174		$	169		$	123
State and local income taxes, net of federal income tax effect		31			40			27
Effect of tax law changes		—			—			(73	)
Non-taxable bargain gain		(33	)		—			—
Non-deductible FDIC deposit insurance premiums		10			9			8
Effect of tax deductibility of ESOP		(3	)		(3	)		(3	)
Non-taxable income and expense of BOLI		(7	)		(6	)		(7	)
Non-deductible merger expenses		3			3			—
Non-deductible compensation expense		4			—			—
Federal tax credits		(1	)		—			(1	)
Adjustments relating to prior tax years		(1	)		(1	)		1
Other, net		(1	)		(1	)		2
Total income tax expense	$	176		$	210		$	77

Changes in Liability for Unrecognized Gross Tax Benefits

The following table summarizes changes in the liability for unrecognized gross tax benefits for the years ended December 31, 2022, 2021, and 2020:

	December 31,
(in millions)	2022		2021			2020
Uncertain tax positions at beginning of year	$	39	$	38		$	36
Additions for tax positions relating to current-year operations		1		2			1
Additions for tax positions relating to prior tax years		—		1			1
Subtractions for tax positions relating to prior tax years		—		(2	)		—
Uncertain tax positions at end of year	$	40	$	39		$	38