XML 46 R28.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Taxes [Abstract] |
Income Taxes | NOTE 19. INCOME TAXES The components of income tax expense for the years ended December 31 were as follows:
| 2023 |  | 2022 |  | 2021
| (In millions)
Current income tax expense: |  |  |  |  |
Federal | $ | 417 |  |  | $ | 493 |  |  | $ | 456 |
State | 84 |  |  | 116 |  |  | 73 |
Total current expense | $ | 501 |  |  | $ | 609 |  |  | $ | 529 |
Deferred income tax expense (benefit): |  |  |  |  |
Federal | $ | 25 |  |  | $ | 26 |  |  | $ | 132 |
State | 7 |  |  | (4) |  |  | 33 |
Total deferred expense | $ | 32 |  |  | $ | 22 |  |  | $ | 165 |
Total income tax expense | $ | 533 |  |  | $ | 631 |  |  | $ | 694 |
Income tax expense does not reflect the tax effects of unrealized losses on securities transferred to held to maturity, unrealized gains and losses on securities available for sale, unrealized gains and losses on derivative instruments and the net change from defined benefit pension plans and other postretirement benefits. Refer to Note 14 for additional information on shareholders' equity and accumulated other comprehensive income (loss). The Company accounts for investment tax credits using the deferral method. Investment tax credits generated totaled $94 million, $67 million and $64 million for 2023, 2022, and 2021, respectively. Income taxes for financial reporting purposes differs from the amount computed by applying the statutory federal income tax rate of 21 percent as shown in the following table:
| 2023 |  | 2022 |  | 2021
| (Dollars in millions)
Tax on income computed at statutory federal income tax rate | $ | 547 |  |  | $ | 604 |  |  | $ | 675 |
Increase (decrease) in taxes resulting from: |  |  |  |  |
State income tax, net of federal tax effect | 72 |  |  | 88 |  |  | 83 |
Non-deductible expenses | 33 |  |  | 34 |  |  | 18 |
Tax-exempt interest | (38) |  |  | (33) |  |  | (30) |
Affordable housing credits, net of amortization | (42) |  |  | (32) |  |  | (25) |
Bank-owned life insurance | (19) |  |  | (16) |  |  | (20) |
Other, net | (20) |  |  | (14) |  |  | (7) |
Income tax expense(1) | $ | 533 |  |  | $ | 631 |  |  | $ | 694 |
Effective tax rate | 20.5 | % |  | 22.0 | % |  | 21.6 | %
__________ (1) Income tax expense includes gross amortization of affordable housing investments of $166 million, $149 million, and $139 million for 2023, 2022 and 2021, respectively. Significant components of the Company’s net deferred tax asset at December 31 are listed below:
| 2023 |  | 2022
| (In millions)
Deferred tax assets: |  |  |
Unrealized losses included in shareholders' equity | $ | 961 |  |  | $ | 1,138 |
Allowance for credit losses | 430 |  |  | 401 |
Right of use liability | 129 |  |  | 136 |
Accrued expenses | 87 |  |  | 61 |
Other | 20 |  |  | 47 |
Federal and state net operating losses, net of federal tax effect | 31 |  |  | 40 |
Total deferred tax assets | 1,658 |  |  | 1,823 |
Less: valuation allowance | (21) |  |  | (21) |
Total deferred tax assets less valuation allowance | 1,637 |  |  | 1,802 |
Deferred tax liabilities: |  |  |
Lease financing | 439 |  |  | 403 |
Right of use asset | 121 |  |  | 128 |
Mortgage servicing rights | 95 |  |  | 122 |
Goodwill and intangibles | 112 |  |  | 103 |
Fixed assets | 30 |  |  | 52 |
Employee benefits and deferred compensation | 37 |  |  | 29 |
Other | 62 |  |  | 22 |
Total deferred tax liabilities | 896 |  |  | 859 |
Net deferred tax asset | $ | 741 |  |  | $ | 943 |
The following table provides details of the Company’s net operating loss carryforwards at December 31, 2023, including the expiration dates and related valuation allowance:
| Expiration Dates |  | Deferred Tax Asset Balance |  | Valuation Allowance |  | Net Deferred Tax Asset Balance |  |
| (In millions)
Net operating losses-federal | None |  | 9 |  |  | — |  |  | 9 |  |  |
Net operating losses-states | 2024-2028 |  | 13 |  |  | 13 |  |  | — |  |  |
Net operating losses-states | 2029-2035 |  | 3 |  |  | 2 |  |  | 1 |  |  |
Net operating losses-states | 2036-2043 |  | 3 |  |  | 2 |  |  | 1 |  |  |
Net operating losses-states | None |  | 3 |  |  | 2 |  |  | 1 |  |  |
|  |  | $ | 31 |  |  | $ | 19 |  |  | $ | 12 |  |  |
The Company believes that a portion of the state net operating loss carryforwards will not be realized due to certain state statutory limitations. Accordingly, a valuation allowance has been established in the amount of $19 million against such benefits at December 31, 2023 compared to $21 million at December 31, 2022. A reconciliation of the beginning and ending amount of UTB is as follows:
| 2023 |  | 2022 |  | 2021
| (In millions)
Balance at beginning of year | $ | 8 |  |  | $ | 9 |  |  | $ | 12 |
Additions based on tax positions taken in a prior period | 3 |  |  | — |  |  | — |
Settlements | — |  |  | — |  |  | (2) |
Expiration of statute of limitations | — |  |  | (1) |  |  | (1) |
Balance at end of year | $ | 11 |  |  | $ | 8 |  |  | $ | 9 |
The Company files U.S. federal, state, and local income tax returns. The Company is in the IRS’s Compliance Assurance Process program and examinations of the U.S federal consolidated income tax return for tax years through 2021 have been completed. With limited exceptions, the Company is no longer subject to state and local tax examinations for tax years prior to 2019. Currently, there are no material disputed tax positions with federal or state taxing authorities. Accordingly, the Company does not anticipate that any adjustments relating to federal or state tax examinations will result in material changes to its business, financial position, results of operations or cash flows. There are no expected decreases to the potential liability for UTBs during the next twelve months. As of December 31, 2023, 2022 and 2021, the balances of the Company’s UTBs that would reduce the effective tax rates, if recognized, were $11 million, $8 million and $7 million, respectively. Interest and penalties related to UTBs are recorded in the provision for income taxes. During the years ended December 31, 2023, 2022 and 2021, the Company recognized an immaterial expense (benefit) for gross interest and penalties. As of December 31, 2023 and 2022, the Company had an immaterial gross liability for interest and penalties related to UTBs.

X
- Definition Income Taxes [Abstract] + References No definition available. + Details
Name: | rf_IncomeTaxesAbstract
Namespace Prefix: | rf_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration