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Federal, State And Local Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Components of Net Deferred Tax Asset (Liability) | The following table summarizes the components of the Company’s net deferred tax asset (liability) at December 31, 2022 and 2021:
|  | December 31, |
(in millions) |  | 2022 |  |  | 2021 |
Deferred Tax Assets: |  |  |  |  |  |
Allowance for credit losses on loans and leases |  | $ | 102 |  |  | $ | 55 |
Acquisition accounting and fair value adjustments on securities (including OTTI) |  |  | 227 |  |  |  | 21 |
Acquisition accounting and fair value adjustments on loans |  |  | 36 |  |  |  | — |
Capitalized loans costs |  |  | 46 |  |  |  | — |
Compensation and related benefit obligations |  |  | 23 |  |  |  | 17 |
Capitalized research and development costs |  |  | 10 |  |  |  | — |
Net operating loss carryforwards |  |  | 15 |  |  |  | 1 |
Other |  |  | 18 |  |  |  | 15 |
Gross deferred tax assets |  |  | 477 |  |  |  | 109 |
Valuation allowance |  |  | (5 | ) |  |  | — |
Net deferred tax asset after valuation allowance |  | $ | 472 |  |  | $ | 109 |
Deferred Tax Liabilities: |  |  |  |  |  |
Leases |  | $ | (328 | ) |  | $ | (360 | )
Mortgage servicing rights |  |  | (105 | ) |  | $ | — |
Premises and equipment |  |  | (18 | ) |  |  | (5 | )
Prepaid pension cost |  |  | (29 | ) |  |  | (35 | )
Fair value adjustments on loans |  |  | — |  |  |  | (81 | )
Amortizable intangibles |  |  | (71 | ) |  |  | (3 | )
Acquisition accounting and fair value adjustments on deposits |  |  | (9 | ) |  |  | — |
Acquisition accounting and fair value adjustments on debt |  |  | (10 | ) |  |  | — |
Other |  |  | (9 | ) |  |  | (9 | )
Gross deferred tax liabilities |  | $ | (579 | ) |  | $ | (493 | )
Net deferred tax liability |  | $ | (107 | ) |  | $ | (384 | )
Income Tax Expense (Benefit) | The following table summarizes the Company’s income tax expense for the years ended December 31, 2022, 2021, and 2020:
|  | December 31, |
(in millions) |  | 2022 |  |  | 2021 |  |  | 2020 |
Federal – current |  | $ | 147 |  |  | $ | 188 |  |  | $ | (148 | )
State and local – current |  |  | 32 |  |  |  | 35 |  |  |  | 5 |
Total current |  |  | 179 |  |  |  | 223 |  |  |  | (143 | )
Federal – deferred |  |  | (10 | ) |  |  | (28 | ) |  |  | 190 |
State and local – deferred |  |  | 7 |  |  |  | 15 |  |  |  | 29 |
Total deferred |  |  | (3 | ) |  |  | (13 | ) |  |  | 219 |
Income tax expense reported in net income |  |  | 176 |  |  |  | 210 |  |  |  | 77 |
Income tax expense reported in stockholders’ equity related to: |  |  |  |  |  |  |  |  |
Securities available-for-sale |  |  | (223 | ) |  |  | (42 | ) |  |  | 16 |
Pension liability adjustments |  |  | (6 | ) |  |  | 10 |  |  |  | — |
Cash flow hedge |  |  | 23 |  |  |  | 9 |  |  |  | (13 | )
Adoption of ASU 2016-13 |  |  | — |  |  |  | — |  |  |  | (4 | )
Total income taxes |  | $ | (30 | ) |  | $ | 187 |  |  | $ | 76 |
Reconciliation of Statutory Federal Income Tax Expense (Benefit) Reported in Net Income to Combined Actual Income Tax Expense (Benefit) | The following table presents a reconciliation of statutory federal income tax expense (benefit) to combined actual income tax expense (benefit) reported in net income for the years ended December 31, 2022, 2021, and 2020:
|  | December 31, |
(in millions) |  | 2022 |  |  | 2021 |  |  | 2020 |
Statutory federal income tax at 21% |  | $ | 174 |  |  | $ | 169 |  |  | $ | 123 |
State and local income taxes, net of federal income tax effect |  |  | 31 |  |  |  | 40 |  |  |  | 27 |
Effect of tax law changes |  |  | — |  |  |  | — |  |  |  | (73 | )
Non-taxable bargain gain |  |  | (33 | ) |  |  | — |  |  |  | — |
Non-deductible FDIC deposit insurance premiums |  |  | 10 |  |  |  | 9 |  |  |  | 8 |
Effect of tax deductibility of ESOP |  |  | (3 | ) |  |  | (3 | ) |  |  | (3 | )
Non-taxable income and expense of BOLI |  |  | (7 | ) |  |  | (6 | ) |  |  | (7 | )
Non-deductible merger expenses |  |  | 3 |  |  |  | 3 |  |  |  | — |
Non-deductible compensation expense |  |  | 4 |  |  |  | — |  |  |  | — |
Federal tax credits |  |  | (1 | ) |  |  | — |  |  |  | (1 | )
Adjustments relating to prior tax years |  |  | (1 | ) |  |  | (1 | ) |  |  | 1 |
Other, net |  |  | (1 | ) |  |  | (1 | ) |  |  | 2 |
Total income tax expense |  | $ | 176 |  |  | $ | 210 |  |  | $ | 77 |
Changes in Liability for Unrecognized Gross Tax Benefits | The following table summarizes changes in the liability for unrecognized gross tax benefits for the years ended December 31, 2022, 2021, and 2020:
|  | December 31, |
(in millions) |  | 2022 |  |  | 2021 |  |  | 2020 |
Uncertain tax positions at beginning of year |  | $ | 39 |  |  | $ | 38 |  |  | $ | 36 |
Additions for tax positions relating to current-year operations |  |  | 1 |  |  |  | 2 |  |  |  | 1 |
Additions for tax positions relating to prior tax years |  |  | — |  |  |  | 1 |  |  |  | 1 |
Subtractions for tax positions relating to prior tax years |  |  | — |  |  |  | (2 | ) |  |  | — |
Uncertain tax positions at end of year |  | $ | 40 |  |  | $ | 39 |  |  | $ | 38 |

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