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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Expense | The provision (benefit) for income taxes for the year ended December 31, 2022, 2021 and 2020 is comprised of the following: Provision (Benefit) for Income Taxes
dollars in millions | Year ended December 31
| 2022 |  | 2021 |  | 2020
Current U.S. federal income tax provision | $ | 58 |  |  | $ | 140 |  |  | $ | 137 |
Deferred U.S. federal income tax provision / (benefit) | 170 |  | (6) |  |  | (29) |
Total federal income tax provision | 228 |  |  | 134 |  |  | 108 |
Current state and local income tax provision | 4 |  |  | 21 |  |  | 15 |
Deferred state and local income tax provision / (benefit) | 23 |  |  | (1) |  |  | 3 |
Total state and local income tax provision | 27 |  |  | 20 |  |  | 18 |
Total non-U.S. income tax provision | 9 |  |  | — |  |  | — |
Total provision for income taxes | $ | 264 |  |  | $ | 154 |  |  | $ | 126 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation from the U.S. Federal statutory rate to BancShares’ actual effective income tax rate for the year ended December 31, 2022, 2021 and 2020 is the following: Percentage of Pretax Income
dollars in millions | Effective Tax Rate
| 2022 |  | 2021 |  | 2020
| Pretax Income |  | Income Tax Expense (Benefit) |  | Percentage of Pretax Income |  | Pretax Income |  | Income Tax Expense (Benefit) |  | Percentage of Pretax Income |  | Pretax Income |  | Income Tax Expense (Benefit) |  | Percentage of Pretax Income
Federal income taxes and rate | $ | 1,362 |  |  | $ | 286 |  |  | 21.0 | % |  | $ | 701 |  |  | $ | 147 |  |  | 21.0 | % |  | $ | 618 |  |  | $ | 130 |  |  | 21.0 | %
Increase (decrease) due to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State and local income taxes, net of federal income tax benefit |  |  | 53 |  |  | 3.9 | % |  |  |  | 16 |  |  | 2.2 | % |  |  |  | 14 |  |  | 2.2 | %
Non-taxable bargain purchase gain (1) |  |  | (105) |  |  | (7.7) | % |  |  |  | — |  |  | — | % |  |  |  | — |  |  | — | %
Domestic tax credits |  |  | (20) |  |  | (1.5) | % |  |  |  | (5) |  |  | (0.7) | % |  |  |  | (5) |  |  | (0.9) | %
Effect of BOLI surrender (1) |  |  | 48 |  |  | 3.5 | % |  |  |  | — |  |  | — | % |  |  |  | — |  |  | — | %
Deferred tax liability adjustment |  |  | (8) |  |  | (0.6) | % |  |  |  | — |  |  | — | % |  |  |  | — |  |  | — | %
Difference in tax rates applicable to non-U.S. earnings |  |  | 1 |  |  | 0.1 | % |  |  |  | — |  |  | — | % |  |  |  | — |  |  | — | %
Repayment of claim of right income |  |  | — |  |  | — | % |  |  |  | (2) |  |  | (0.3) | % |  |  |  | (14) |  |  | (2.2) | %
Valuation allowances |  |  | (5) |  |  | (0.4) | % |  |  |  | — |  |  | — | % |  |  |  | — |  |  | — | %
Other |  |  | 14 |  |  | 1.1 | % |  |  |  | (2) |  |  | (0.2) | % |  |  |  | 1 |  |  | 0.3 | %
Provision for income taxes and effective tax rate |  |  | $ | 264 |  |  | 19.4 | % |  |  |  | $ | 154 |  |  | 22.0 | % |  |  |  | $ | 126 |  |  | 20.4 | %
(1) Income tax expense (benefit) includes, if applicable, federal, state, foreign and penalty taxes.
Schedule of Components of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to deferred income tax assets and liabilities at December 31, 2022 and 2021 are presented below: Components of Deferred Income Tax Assets and Liabilities
dollars in millions | 2022 |  | 2021
Deferred Tax Assets: |  |  |
Net operating loss (NOL) carry forwards | $ | 358 |  |  | $ | 8 |
Basis difference in loans | 57 |  |  | — |
Allowance for credit losses | 252 |  |  | 40 |
Accrued liabilities and reserves | 37 |  |  | 6 |
Deferred compensation | 51 |  |  | 19 |
Right of use - lease liability | 92 |  |  | 14 |
Domestic tax credits | 176 |  |  | — |
Mark to market adjustments | 28 |  |  | — |
Capitalized costs | 15 |  |  | — |
Unrealized net loss on securities AFS | 275 |  |  | 5 |
Other | 48 |  |  | 17 |
Total gross deferred tax assets | 1,389 |  |  | 109 |
Deferred Tax Liabilities: |  |  |
Operating leases | (1,311) |  |  | — |
Right of use - lease asset | (86) |  |  | (14) |
Loans and direct financing leases | (43) |  |  | (8) |
Deferred BOLI Gain | (15) |  |  | — |
Pension | (54) |  |  | (64) |
Prepaid expenses | (14) |  |  | — |
Market discount accretion | (35) |  |  | — |
Other | (47) |  |  | (56) |
Total deferred tax liabilities | (1,605) |  |  | (142) |
Total net deferred tax liability before valuation allowances | (216) |  |  | (33) |
Less: valuation allowances | (70) |  |  | — |
Net deferred tax liability after valuation allowances | $ | (286) |  |  | $ | (33) |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits ("UTBs") is as follows: Unrecognized Tax Benefits (1)
dollars in millions | Liabilities for Unrecognized Tax Benefits |  | Interest / Penalties |  | Total
Balance at December 31, 2021 | $ | 30 |  |  | $ | 1 |  |  | $ | 31 |
Effect of CIT Merger | 4 |  |  | 2 |  |  | 6 |
Additions for tax positions related to prior years | 1 |  |  | — |  |  | 1 |
Reductions for tax positions of prior years | (2) |  |  | — |  |  | (2) |
Expiration of statutes of limitations | (1) |  |  | — |  |  | (1) |
Settlements | (5) |  |  | — |  |  | (5) |
Balance at December 31, 2022 | $ | 27 |  |  | $ | 3 |  |  | $ | 30 |
(1) Tabular rollforward does not present the comparable data for the prior years, as activity in the prior years was not material.
Summary of Income Tax Audits | The table below presents the earliest tax years that remain subject to examination by major jurisdiction.
Jurisdiction | December 31, 2022
U.S. Federal | 2019
New York State and City | 2015
North Carolina | 2019
California | 2017
Canada | 2015

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