Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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)	2021		2020	2019
Current income tax expense:
U.S. Federal income taxes	$	657	463	788
State and local income taxes	102		69	148
Foreign income taxes	2		—	—
Total current income tax expense	761		532	936
Deferred income tax (benefit) expense:
U.S. Federal income taxes	(21)		(140)	(212)
State and local income taxes	8		(23)	(35)
Foreign income taxes	(1)		1	1
Total deferred income tax benefit	(14)		(162)	(246)
Applicable income tax expense	$	747	370	690

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

The following is a reconciliation between the statutory U.S. Federal income tax rate and the Bancorp’s effective tax rate for the years ended December 31:

	2021		2020	2019
Statutory tax rate	21.0	%	21.0	21.0
Increase (decrease) resulting from:
State taxes, net of federal benefit	2.5		2.0	2.8
Tax-exempt income	(0.6)		(1.5)	(1.2)
LIHTC investment and other tax benefits	(5.5)		(9.7)	(5.0)
LIHTC investment proportional amortization	4.6		8.3	4.4
Other tax credits	(0.2)		(0.4)	(0.2)
Other, net	(0.6)		0.9	(0.2)
Effective tax rate	21.2	%	20.6	21.6

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)	2021		2020	2019
Unrecognized tax benefits at January 1	$	100	65	55
Gross increases for tax positions taken during prior period	10		29	25
Gross decreases for tax positions taken during prior period	(4)		(3)	(3)
Gross increases for tax positions taken during current period	11		12	6
Settlements with taxing authorities	—		(1)	(9)
Lapse of applicable statute of limitations	(15)		(2)	(9)
Unrecognized tax benefits at December 31(a)	$	102	100	65

(a)With the exception of $6 in 2020 and 2019, 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)	2021		2020
Deferred tax assets:
Allowance for loan and lease losses	$	397	$	515
Deferred compensation	106		107
Reserve for unfunded commitments	38		36
Reserves	30		40
State net operating loss carryforwards	3		3
State deferred taxes	—		1
Other	202		160
Total deferred tax assets	$	776	$	862
Deferred tax liabilities:
Lease financing	$	553	$	638
Other comprehensive income	367		779
MSRs and related economic hedges	116		120
Goodwill and intangible assets	68		62
Bank premises and equipment	65		91
Investments in joint ventures and partnership interests	61		58
State deferred taxes	6		—
Other	51		66
Total deferred tax liabilities	$	1,287	$	1,814
Total net deferred tax liability	$	(511)	$	(952)