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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Expense | Federal and state income tax expense consist of the following: TABLE 19.1
Year Ended December 31 | 2025 |  | 2024 |  | 2023
(in millions) |  |  |  |  |
Current income taxes: |  |  |  |  |
Federal taxes | $ | 48 |  |  | $ | 39 |  |  | $ | 93 |
State taxes | 10 |  |  | 6 |  |  | 12 |
Total current income taxes | 58 |  |  | 45 |  |  | 105 |
Deferred income taxes: |  |  |  |  |
Federal taxes | 43 |  |  | 41 |  |  | (8) |
State taxes | 3 |  |  | 4 |  |  | 2 |
Total deferred income taxes | 46 |  |  | 45 |  |  | (6) |
Total income taxes | $ | 104 |  |  | $ | 90 |  |  | $ | 99 |
Schedule of Reconciliation Between the Statutory Tax Rate and Actual Effective Tax Rate | The following table for the year ended December 31, 2025 is presented using both percentages and reporting currency amounts. The disclosure is presented only for the current year, as the FASB does not require retroactive application or comparative disclosure for prior periods. TABLE 19.2
Year Ended December 31 | 2025 |  |  |  |
(dollars in millions) | Amount |  | Percent |  |  |  |  |  |  |  |
Statutory federal tax rate | $ | 141 |  |  | 21.0 | % |  |  |  |  |  |  |  |
State and local income taxes, net of federal income tax effect | 10 |  |  | 1.6 |  |  |  |  |  |  |  |  |
Tax credits: |  |  |  |  |  |  |  |  |  |  |
Renewable energy investment tax credits | (37) |  |  | (5.6) |  |  |  |  |  |  |  |  |
LIHTC | (21) |  |  | (3.2) |  |  |  |  |  |  |  |  |
Other tax credits | (5) |  |  | (0.7) |  |  |  |  |  |  |  |  |
Non-taxable or non-deductible items: |  |  |  |  |  |  |  |  |  |  |
Tax-exempt interest | (9) |  |  | (1.3) |  |  |  |  |  |  |  |  |
Cash surrender value on BOLI | (4) |  |  | (0.6) |  |  |  |  |  |  |  |  |
Tax credit cost amortization, net of tax benefits | 20 |  |  | 2.9 |  |  |  |  |  |  |  |  |
FDIC premium disallowance | 7 |  |  | 1.1 |  |  |  |  |  |  |  |  |
Other non-taxable or non-deductible items | 3 |  |  | 0.4 |  |  |  |  |  |  |  |  |
Other | (1) |  |  | (0.1) |  |  |  |  |  |  |  |  |
Total income taxes / effective tax rate | $ | 104 |  |  | 15.5 | % |  |  |  |  |  |  |  |
The following table provides a reconciliation between the statutory tax rate and the actual effective tax rate: TABLE 19.3
Year Ended December 31 | 2024 |  | 2023
Statutory federal tax rate | 21.0 | % |  | 21.0 | %
State taxes, net of federal benefit | 1.5 |  |  | 1.9 |
Tax-exempt interest | (1.5) |  |  | (1.6) |
Cash surrender value on BOLI | (0.6) |  |  | (0.5) |
Tax credits | (9.0) |  |  | (7.3) |
Tax credit cost amortization, net of tax benefits | 3.2 |  |  | 2.3 |
FDIC premium disallowance | 1.3 |  |  | 1.0 |
Other items | 0.4 |  |  | 0.1 |
Effective tax rate | 16.3 | % |  | 16.9 | %
Schedule of Supplemental Cash Flow Information | Net income tax refunds totaled $22.6 million for the year ended December 31, 2025 and are disaggregated by jurisdiction as follows: TABLE 19.4
(in millions) | Amount Paid
Jurisdiction |
Federal | $ | (33) |
State |
Maryland | 4 |
North Carolina | 3 |
Other | 3 |
Total state | 10 |
Total income taxes paid (refunded) | $ | (23) |
Following is a summary of supplemental cash flow information: TABLE 23.1
Year Ended December 31 | 2025 |  | 2024 |  | 2023
(in millions) |  |  |  |  |
Interest paid on deposits and other borrowings | $ | 942 |  |  | $ | 973 |  |  | $ | 619 |
Income taxes (refunded) paid | (23) |  |  | 58 |  |  | 94 |
Transfers of loans to other real estate owned | 2 |  |  | 2 |  |  | 2 |
Loans transferred to held for sale from portfolio | 239 |  |  | 431 |  |  | 355 |
Loans transferred to portfolio from held for sale | 43 |  |  | 20 |  |  | 38 |
Schedule of Deferred Tax Assets and Liabilities from Tax Effects of Temporary Differences | The following table presents the tax effects of significant temporary differences that give rise to federal and state DTAs and DTLs: TABLE 19.5
December 31 | 2025 |  | 2024
(in millions) |  |  |
Deferred tax assets: |  |  |
Allowance for credit losses | $ | 98 |  |  | $ | 95 |
Discounts on loans acquired in a business combination | 6 |  |  | 8 |
Net operating loss/tax credit carryforwards | 40 |  |  | 44 |
Deferred compensation | 19 |  |  | 17 |
Securities impairment | 2 |  |  | 2 |
Lease liability | 66 |  |  | 68 |
Net unrealized securities losses | 10 |  |  | 39 |
Other | 20 |  |  | 22 |
Total | 261 |  |  | 295 |
Valuation allowance | (31) |  |  | (34) |
Total deferred tax assets | 230 |  |  | 261 |
Deferred tax liabilities: |  |  |
Loan costs | (16) |  |  | (13) |
Depreciation | (29) |  |  | (16) |
Prepaid expenses | (2) |  |  | (2) |
Amortizable intangibles | (13) |  |  | (16) |
Pension and other defined benefit plans | (17) |  |  | (13) |
Equipment financing | (98) |  |  | (68) |
Mortgage servicing rights | (16) |  |  | (16) |
Lease ROU asset | (55) |  |  | (58) |
Other | (1) |  |  | (1) |
Total deferred tax liabilities | (247) |  |  | (203) |
Net deferred tax assets (liabilities) | $ | (17) |  |  | $ | 58 |

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