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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

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, 2025, 2024 and 2023.

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

						Year Ended December 31,
(Dollars in millions)						2025						2024						2023
Income (loss) from continuing operations before income tax expense (benefit)
US						$	1,918					$	5,644					$	5,815
International						363						266						230
Total income (loss) from continuing operations before income tax expense (benefit)						$	2,281					$	5,910					$	6,045
Income tax expense (benefit) from continuing operations
Current income tax provision:
Federal taxes						1,483						1,598						1,423
State taxes						527						395						382
International taxes						90						23						76
Total current provision						2,100						2,016						1,881
Deferred income tax provision (benefit):
Federal taxes						(1,450)						(704)						(547)
State taxes						(449)						(178)						(145)
International taxes						(8)						29						(31)
Total deferred provision (benefit)						(1,907)						(853)						(723)
Total income Tax provision (benefit)
Federal taxes						33						894						876
State taxes						78						217						237
International taxes						82						52						45
Total income tax provision						$	193					$	1,163					$	1,158

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, 2025, 2024 and 2023.

Table 16.2: Effective Income Tax Rate

						Year Ended December 31,
						2025									2024									2023
						Amount			Percentage						Amount			Percentage						Amount			Percentage
Income tax at U.S. federal statutory tax rate						$	479		21.0		%				$	1,241		21.0		%				$	1,269		21.0		%
Tax credits
Low Income Housing						(165)			(7.2)						(151)			(2.6)						(168)			(2.8)
New Markets						(131)			(5.7)						(112)			(1.9)						(116)			(1.9)
Other						(103)			(4.5)						(78)			(1.3)						(133)			(2.2)
Nontaxable and nondeductible items
Nondeductible FDIC Premiums						68			3.0						51			0.9						46			0.8
Other						26			1.1						(8)			(0.1)						(3)			(0.1)
Cross-border taxes						(6)			(0.2)						6			0.1						7			0.1
Changes in valuation allowance						20			0.9						7			0.1						41			0.7
All other						(41)			(1.8)						(1)			0.0						4			0.1
Domestic state and local taxes, net of federal effect(1)						32			1.4						191			3.2						197			3.3
Foreign tax effects						4			0.2						1			0.0						7			0.1
Worldwide changes in prior year unrecognized tax benefits						(12)			(0.6)						35			0.6						8			0.1
Other						22			0.9						(19)			(0.3)						(1)			0.0
Effective income tax rate						$	193		8.5		%				$	1,163		19.7		%				$	1,158		19.2		%

__________

(1)    The jurisdictions that comprise the majority of the domestic state and local income taxes are California, Illinois, New Jersey, New York, New York City and Texas.

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, 2025 and 2024. 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, 2025						December 31, 2024
Deferred tax assets:
Allowance for credit losses						$	5,469					$	3,730
Net unrealized loss on securities						1,909						2,527
Rewards programs						1,013						898
Premises, equipment and software						105						607
Net operating loss and tax credit carryforwards						371						519
Net unrealized loss on derivatives						128						505
Compensation and employee benefits						646						479
Lease Liabilities						300						305
Partnership Investments						334						290
Other assets						839						402
Subtotal						11,114						10,262
Valuation allowance						(320)						(529)
Total deferred tax assets						10,794						9,733
Deferred tax liabilities:
Right-of-use assets						242						248
Partnership investments						173						133
Goodwill and intangibles						$	4,264					116
Mortgage servicing rights						69						76
Loan Fees & Expenses						63						48
Other liabilities						43						60
Total deferred tax liabilities						4,854						681
Net deferred tax assets						$	5,940					$	9,052

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, 2023						$	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
Additions for tax positions related to the current year						12						12						24
Additions for tax positions related to prior years						63						7						70
Reductions for tax positions related to prior years due to IRS and other settlements						(11)						(3)						(14)
Other reductions for tax positions related to prior years						$	(10)					$	(4)					$	(14)
Balance as of December 31, 2025						$	119					$	23					$	142
Portion of balance at December 31, 2025 that, if recognized, would impact the effective income tax rate						$	107					$	18					$	125

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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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