Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Applicable Income Taxes Included in the Consolidated Statements Of Income

The following is a summary of applicable income taxes included in the Consolidated Statements of Income for the years ended December 31:

($ in millions)	2020		2019	2018
Current income tax expense:
U.S. Federal income taxes	$	463	788	463
State and local income taxes	69		148	71
Foreign income taxes	—		—	8
Total current income tax expense	532		936	542
Deferred income tax (benefit) expense:
U.S. Federal income taxes	(140)		(212)	24
State and local income taxes	(23)		(35)	4
Foreign income taxes	1		1	2
Total deferred income tax (benefit) expense	(162)		(246)	30
Applicable income tax expense	$	370	690	572

Reconciliation Between the Statutory U.S. Income Tax Rate and the Bancorp's Effective Tax Rate

The following is a reconciliation between the federal statutory corporate tax rate and the Bancorp’s effective tax rate for the years ended December 31:

	2020		2019	2018
Statutory tax rate	21.0	%	21.0	21.0
Increase (decrease) resulting from:
State taxes, net of federal benefit	2.0		2.8	2.1
Tax-exempt income	(1.5)		(1.2)	(0.8)
LIHTC investment and other tax benefits	(9.7)		(5.0)	(6.8)
LIHTC investment proportional amortization	8.3		4.4	5.6
Other tax credits	(0.4)		(0.2)	(0.1)
Other, net	0.9		(0.2)	(0.3)
Effective tax rate	20.6	%	21.6	20.7

Reconciliation of the Beginning and Ending Amounts of the Bancorp's Unrecognized Tax Benefits

The following table provides a reconciliation of the beginning and ending amounts of the Bancorp’s unrecognized tax benefits:

($ in millions)	2020		2019	2018
Unrecognized tax benefits at January 1	$	65	55	34
Gross increases for tax positions taken during prior period	29		25	20
Gross decreases for tax positions taken during prior period	(3)		(3)	(1)
Gross increases for tax positions taken during current period	12		6	8
Settlements with taxing authorities	(1)		(9)	(5)
Lapse of applicable statute of limitations	(2)		(9)	(1)
Unrecognized tax benefits at December 31(a)	$	100	65	55

(a)With the exception of $6, $6 and $5 in 2020, 2019 and 2018, respectively, all amounts represent unrecognized tax benefits that, if recognized, would affect the annual effective tax rate.

Deferred Income Taxes Included in Other Assets in the Consolidated Balance Sheets

Deferred income taxes are comprised of the following items at December 31:

($ in millions)	2020		2019
Deferred tax assets:
Allowance for loan and lease losses	$	515	252
Deferred compensation	107		103
Reserves	40		32
Reserve for unfunded commitments	36		30
State net operating loss carryforwards	3		9
State deferred taxes	1		—
Other	160		154
Total deferred tax assets	$	862	580
Deferred tax liabilities:
Other comprehensive income	$	779	352
Lease financing	638		650
MSRs and related economic hedges	120		144
Bank premises and equipment	91		73
Investments in joint ventures and partnership interests	58		25
State deferred taxes	—		47
Other	128		127
Total deferred tax liabilities	$	1,814	1,418
Total net deferred tax liability	$	(952)	(838)