Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Income Tax Expense (Benefit)

Income tax expense is summarized as follows:


(In millions)	2020		2019		2018
Federal:
Current	$	153	$	195	$	210
Deferred	(47)		(1)		(1)
Total Federal	106		194		209
State:
Current	38		44		49
Deferred	(11)		(1)		1
Total State	27		43		50
Total	$	133	$	237	$	259

Schedule of Statutory Federal Income Tax Rate Reconciles to Actual Income Tax Expense (Benefit)


(In millions)	2020		2019		2018

Income tax expense at statutory federal rate	$	141	$	221	$	240
State income taxes including credits, net	21		34		40
Other nondeductible expenses	8		13		15
Nontaxable income	(32)		(28)		(24)
Share-based compensation	(1)		(4)		(7)
Tax credits and other taxes	(4)		1		(5)


Total	$	133	$	237	$	259

Schedule of Tax Effects of Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets (“DTA”) and deferred tax liabilities (“DTL”) are presented below:


(In millions)	December 31,
	2020		2019
Gross deferred tax assets:
Book loan loss deduction in excess of tax	$	205	$	137
Pension and postretirement	1		5
Deferred compensation	71		72




Lease liabilities	59		61
Other	24		35
Total deferred tax assets before valuation allowance	360		310
Valuation allowance	—		—
Total deferred tax assets	360		310
Gross deferred tax liabilities:

Premises and equipment, due to differences in depreciation	(81)		(66)
Federal Home Loan Bank stock dividends	(2)		(2)
Leasing operations	(55)		(52)
Prepaid expenses	(6)		(6)
Prepaid pension reserves	(6)		(12)
Mortgage servicing	(8)		(7)
Security investments and derivative fair value adjustments	(102)		(17)
Deferred loan fees	(32)		(30)
ROU assets	(53)		(55)
Equity investments	(18)		(26)
Total deferred tax liabilities	(363)		(273)
Net deferred tax assets (liabilities)	$	(3)	$	37

Schedule of Reconciliation of Gross Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:


(In millions)	2020		2019		2018

Balance at beginning of year	$	14	$	8	$	6
Tax positions related to current year:
Additions	2		2		1
Reductions	—		—		—
Tax positions related to prior years:
Additions	—		4		1
Reductions	(5)		—		—
Settlements with taxing authorities	—		—		—
Lapses in statutes of limitations	—		—		—
Balance at end of year	$	11	$	14	$	8