Income Taxes And Tax-Related Items Income Taxes And Tax-Related Items (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Current and Deferred Components of the Provision for Income Taxes

The current and deferred components of the provision for income taxes were as follows:

(in millions)
December 31	2023		2022		2021
Current:
Federal	$	297	$	296	$	212
Foreign	9		6		5
State and local	49		50		26
Total current	355		352		243
Deferred:
Federal	(83)		(24)		62
State and local	(9)		(3)		17
Total deferred	(92)		(27)		79
Total	$	263	$	325	$	322

Reconciliation of Expected Income Tax Expense at the Federal Statutory Rate to the Provision for Income Taxes

A reconciliation of expected income tax expense at the federal statutory rate to the Corporation’s provision for income taxes and effective tax rate follows:

(dollar amounts in millions)	2023				2022				2021
Years Ended December 31	Amount		Rate		Amount		Rate		Amount		Rate
Tax based on federal statutory rate	$	240	21.0	%	$	310	21.0	%	$	313	21.0	%
State income taxes	35		3.1		36		2.5		35		2.4
Affordable housing and historic credits	(16)		(1.4)		(13)		(0.9)		(13)		(0.9)
Bank-owned life insurance	(10)		(0.9)		(10)		(0.7)		(10)		(0.6)
FDIC insurance expense	15		1.3		6		0.4		5		0.3
Employee stock transactions	(1)		(0.1)		(3)		(0.2)		(3)		(0.2)
Tax-related interest and penalties	(4)		(0.4)		—		—		—		—
Other	4		0.4		(1)		(0.1)		(5)		(0.4)
Provision for income taxes	$	263	23.0	%	$	325	22.0	%	$	322	21.6	%

Reconciliation of Beginning and Ending Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of net unrecognized tax benefits follows:

(in millions)	2023		2022		2021
Balance at January 1	$	16	$	18	$	19
(Decrease) increase as a result of tax positions taken during a prior period	—		(2)		1
Increase as a result of tax positions taken during the current period	1		3		3
Decreases related to settlements with tax authorities	(10)		(3)		(3)
Reduction as a result of expiration of statute of limitations	—		—		(2)
Balance at December 31	$	7	$	16	$	18

Tax Years Remaining Open for Examination for Significant Tax Jurisdictions

The following tax years for significant jurisdictions remain subject to examination as of December 31, 2023:

Jurisdiction	Tax Years
Federal	2020-2022
New York	2018-2022
California	2020-2022

Principal Components of Deferred Tax Assets and Liabilities

The principal components of deferred tax assets and liabilities were as follows:

(in millions)
December 31	2023		2022
Deferred tax assets:
Allowance for loan losses	$	145	$	128
Deferred compensation	77		84
Deferred loan origination fees and costs	11		12
Net hedging losses	186		290
Net unrealized losses on investment securities available-for-sale	628		713
Operating lease liabilities	81		85
Other temporary differences, net	124		42
Total deferred tax assets before valuation allowance	1,252		1,354
Valuation allowance	(6)		(5)
Total deferred tax assets	1,246		1,349
Deferred tax liabilities:
Lease financing transactions	(20)		(31)
Defined benefit plans	(159)		(123)
Allowance for depreciation	(5)		(4)
Leasing right of use assets	(67)		(71)
Total deferred tax liabilities	(251)		(229)
Net deferred tax assets	$	995	$	1,120