XML 95 R52.htm IDEA: XBRL DOCUMENT
v3.25.4

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Schedule of Income Taxes Included in Income Statement | Income taxes included in the income statement are summarized below. We file a consolidated federal income tax return.
Year ended December 31, Dollars in millions | 2025 | 2024 | 2023
Currently payable: |  |  |
Federal | $ | 391 |  | $ | 211 |  | $ | 257 |
State | 82 |  | (3) |  | 48 |
Total currently payable | $ | 473 |  | $ | 208 |  | $ | 305 |
Deferred: |  |  |
Federal | $ | (10) |  | $ | (307) |  | $ | (84) |
State | 13 |  | (44) |  | (25) |
Total deferred | 3 |  | (351) |  | (109) |
Total income tax (benefit) expense (a) | $ | 476 |  | $ | (143) |  | $ | 196 |
(a)There was income tax (benefit) expense on securities transactions of $(1) million in 2025, $(445) million in 2024, and $(3) million in 2023. Income tax expense excludes equity- and gross receipts-based taxes, which are assessed in lieu of an income tax in certain states in which we operate. These non-income taxes, which are recorded in “noninterest expense” on the income statement, totaled $43 million in 2025, $32 million in 2024, and $34 million in 2023.
Schedule of Significant Components of Deferred Tax Assets and Liabilities Included in Accrued Income and Other Assets | Significant components of our deferred tax assets and liabilities included in “accrued income and other assets” on our Consolidated Balance Sheets, are as follows:
December 31, Dollars in millions | 2025 | 2024
Allowance for loan and lease losses | $ | 422 |  | $ | 411 |
Employee benefits | 212 |  | 209 |
Net unrealized securities losses | 566 |  | 1,045 |
Federal tax credits | 226 |  | 303 |
Non-tax accruals | 79 |  | 109 |
Operating lease liabilities | 121 |  | 127 |
State net operating losses and credits | 5 |  | 20 |
Partnership investments | 91 |  | 79 |
Other | 137 |  | 149 |
Gross deferred tax assets | 1,859 |  | 2,452 |
Less: Valuation Allowance | 5 |  | 15 |
Total deferred tax assets | $ | 1,854 |  | $ | 2,437 |
Leasing transactions | $ | 306 |  | $ | 378 |
State taxes | 25 |  | 76 |
Operating lease right-of-use assets | 112 |  | 114 |
Goodwill | 195 |  | 178 |
Other | 67 |  | 68 |
Total deferred tax liabilities | 705 |  | 814 |
Net deferred tax assets (liabilities) (a) | $ | 1,149 |  | $ | 1,623 |
(a)From continuing operations.
Schedule of Total Income Tax Expense (Benefit) and Resulting Effective Tax Rate | The following table shows how our total income tax expense (benefit) and the resulting effective tax rate were derived:
Year ended December 31, Dollars in millions | 2025 |  | 2024 |  | 2023
Amount | Rate |  | Amount | Rate |  | Amount | Rate
Income (loss) before income taxes times 21% statutory federal tax rate | $ | 484 |  | 21.0 | % |  | $ | (64) |  | 21.0 | % |  | $ | 244 |  | 21.0 | %
State and local income taxes, net of federal income tax effect(a) | 75 |  | 3.3 |  |  | (33) |  | 10.8 |  |  | 13 |  | 1.1 |
Tax credits |  |  |  |  |  |  |  |
Low-income housing/New markets | (252) |  | (10.9) |  |  | (211) |  | 69.1 |  |  | (196) |  | (16.9) |
Change in valuation allowances | (2) |  | (.1) |  |  | 3 |  | (1.0) |  |  | — |  | — |
Nontaxable or nondeductible items |  |  |  |  |  |  |  |
Tax-exempt interest income | (27) |  | (1.2) |  |  | (27) |  | 8.8 |  |  | (35) |  | (3.0) |
Corporate-owned life insurance income | (29) |  | (1.3) |  |  | (29) |  | 9.5 |  |  | (28) |  | (2.4) |
Share-based compensation expense | (2) |  | (.1) |  |  | 5 |  | (1.6) |  |  | 1 |  | .1 |
Federal deposit insurance | 20 |  | .9 |  |  | 25 |  | (8.2) |  |  | 22 |  | 1.9 |
Amortization of tax-advantaged investments | 212 |  | 9.2 |  |  | 185 |  | (60.5) |  |  | 171 |  | 14.7 |
Other permanent differences | (3) |  | (.1) |  |  | 7 |  | (2.4) |  |  | (1) |  | (.1) |
Changes in reserves of tax positions | — |  | — |  |  | (4) |  | 1.3 |  |  | 5 |  | .4 |
Total income tax expense (benefit) | $ | 476 |  | 20.7 | % |  | $ | (143) |  | 46.6 | % |  | $ | 196 |  | 16.9 | %
(a)In 2025, New York, New York City, California, and Illinois comprised the majority of the state and local income taxes, net of federal income tax effect. In 2024, New York, New York City, California, Illinois, and Oregon comprised the majority of this category. In 2023, New York, New York City, California, and Illinois comprised the majority of this category.
Schedule of Income Taxes Paid, Net of Refunds | The following table shows income taxes paid, net of refunds. Amounts presented for individual jurisdictions represented 5% or more of total income taxes paid, net of refunds, for each respective year.
Year ended December 31, Dollars in millions | 2025 | 2024 | 2023
U.S. Federal | $ | 51 |  | $ | 30 |  | $ | 119 |
U.S. state and local |  |  |
California | 5 |  | — |  | 11 |
Illinois | — |  | 4 |  | — |
New Jersey | — |  | 6 |  | — |
New York City | 7 |  | — |  | 9 |
New York State | — |  | — |  | (16) |
Other | 8 |  | 28 |  | 33 |
Total | $ | 71 |  | $ | 68 |  | $ | 156 |
Schedule of Change in Liability for Unrecognized Tax Benefits | The change in our liability for unrecognized tax benefits is as follows:
Year ended December 31, Dollars in millions | 2025 | 2024 | 2023
Balance at beginning of year | $ | 39 |  | $ | 45 |  | $ | 40 |
Increase for other tax positions of prior years | — |  | — |  | 5 |
Decrease for payments and settlements | — |  | (3) |  | — |
Decrease related to tax positions taken in prior years | (36) |  | (3) |  | — |
Balance at end of year | $ | 3 |  | $ | 39 |  | $ | 45 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of supplemental cash flow information for the periods presented. + References No definition available. + Details
Name: | us-gaap_ScheduleOfCashFlowSupplementalDisclosuresTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-9 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-2 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12A -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12A Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 217 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-217 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-15A + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration