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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Significant Components of Provision for Income Taxes Attributable to Continuing Operations

The following table presents significant components of the provision for income taxes attributable to continuing operations for the years ended December 31, 2024, 2023 and 2022.

Table 16.1: Significant Components of the Provision for Income Taxes Attributable to Continuing Operations

						Year Ended December 31,
(Dollars in millions)						2024						2023						2022
Current income tax provision:
Federal taxes						$	1,598					$	1,423					$	2,125
State taxes						395						382						423
International taxes						23						76						104
Total current provision						$	2,016					$	1,881					$	2,652
Deferred income tax provision (benefit):
Federal taxes						$	(704)					$	(547)					$	(662)
State taxes						(178)						(145)						(112)
International taxes						29						(31)						2
Total deferred provision (benefit)						(853)						(723)						(772)
Total income tax provision						$	1,163					$	1,158					$	1,880

Schedule of Effective Income Tax Rate

The following table presents the reconciliation of the U.S. federal statutory income tax rate to the effective income tax rate applicable to income from continuing operations for the years ended December 31, 2024, 2023 and 2022.

Table 16.2: Effective Income Tax Rate

						Year Ended December 31,
						2024						2023						2022
Income tax at U.S. federal statutory tax rate						21.0		%				21.0		%				21.0		%
State taxes, net of federal benefit						3.5						3.4						3.1
Non-deductible expenses						1.6						1.4						0.6
Affordable housing, new markets and other tax credits						(6.2)						(6.8)						(4.2)
Tax-exempt interest and other nontaxable income						(0.9)						(0.8)						(0.4)
Changes in valuation allowance						0.6						0.8						1.0
Other, net						0.1						0.2						(0.8)
Effective income tax rate						19.7		%				19.2		%				20.3		%

Schedule of Significant Components of Deferred Tax Assets and Liabilities

The following table presents significant components of our deferred tax assets and liabilities as of December 31, 2024 and 2023. The valuation allowance below represents the adjustment of our foreign tax credit carryforward, certain state deferred tax assets and net operating loss carryforwards to the amount we have determined is more likely than not to be realized.

Table 16.3: Significant Components of Deferred Tax Assets and Liabilities

(Dollars in millions)						December 31, 2024						December 31, 2023
Deferred tax assets:
Allowance for credit losses						$	3,730					$	3,538
Net unrealized loss on securities						2,527						2,223
Rewards programs						898						801
Premises, equipment and software						607						278
Net operating loss and tax credit carryforwards						519						514
Net unrealized loss on derivatives						505						470
Compensation and employee benefits						479						444
Other assets						997						974
Subtotal						10,262						9,242
Valuation allowance						(529)						(496)
Total deferred tax assets						9,733						8,746
Deferred tax liabilities:
Right-of-use assets						248						253
Partnership investments						133						148
Goodwill and intangibles						116						57
Mortgage servicing rights						76						85
Loan Fees & Expenses						48						48
Original issue discount						0						121
Other liabilities						60						95
Total deferred tax liabilities						681						807
Net deferred tax assets						$	9,052					$	7,939

Schedule of Reconciliation of Change in Unrecognized Tax Benefits

The following table presents the accrued balance of tax, interest and penalties related to unrecognized tax benefits.

Table 16.4: Reconciliation of the Change in Unrecognized Tax Benefits

(Dollars in millions)						Gross Unrecognized Tax Benefits						Accrued Interest and Penalties						Gross Tax, Interest and Penalties
Balance as of January 1, 2022						$	405					$	14					$	419
Additions for tax positions related to the current year						3						0						3
Additions for tax positions related to prior years						14						6						20
Reductions for tax positions related to prior years due to IRS and other settlements						(381)						(10)						(391)
Balance as of December 31, 2022						41						10						51
Additions for tax positions related to the current year						2						0						2
Additions for tax positions related to prior years						10						4						14
Reductions for tax positions related to prior years due to IRS and other settlements						(20)						(7)						(27)
Balance as of December 31, 2023						33						7						40
Additions for tax positions related to the current year						12						0						12
Additions for tax positions related to prior years						28						5						33
Reductions for tax positions related to prior years due to IRS and other settlements						(8)						(1)						(9)
Balance as of December 31, 2024						$	65					$	11					$	76
Portion of balance at December 31, 2024 that, if recognized, would impact the effective income tax rate						$	60					$	9					$	69

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of the change in unrecognized tax benefits.

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