Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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)	2023		2022	2021
Current income tax expense:
U.S. Federal income taxes	$	647	570	657
State and local income taxes	96		126	102
Foreign income taxes	2		11	2
Total current income tax expense	745		707	761
Deferred income tax (benefit) expense:
U.S. Federal income taxes	(81)		(31)	(21)
State and local income taxes	(23)		(29)	8
Foreign income taxes	(2)		—	(1)
Total deferred income tax benefit	(106)		(60)	(14)
Applicable income tax expense	$	639	647	747

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:


	2023		2022	2021
Statutory tax rate	21.0	%	21.0	21.0
Increase (decrease) resulting from:
State taxes, net of federal benefit	1.9		2.5	2.5
Tax-exempt income	(0.8)		(0.8)	(0.6)
LIHTC investment and other tax benefits	(7.7)		(7.1)	(5.5)
LIHTC investment proportional amortization	6.7		6.1	4.6
Other tax credits	(0.7)		(0.4)	(0.2)
Other, net	1.0		(0.3)	(0.6)
Effective tax rate	21.4	%	21.0	21.2

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)	2023		2022	2021
Unrecognized tax benefits at January 1	$	94	102	100
Gross increases for tax positions taken during prior period	14		3	10
Gross decreases for tax positions taken during prior period	(5)		(5)	(4)
Gross increases for tax positions taken during current period	15		11	11
Settlements with taxing authorities	(1)		—	—
Lapse of applicable statute of limitations	(20)		(17)	(15)
Unrecognized tax benefits at December 31(a)	$	97	94	102

(a)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)	2023		2022
Deferred tax assets:
Other comprehensive income	$	1,395	$	1,595
Allowance for loan and lease losses	488		461
Loan origination fees and costs	195		95
Deferred compensation	114		105
State deferred taxes	43		20
Reserves for unfunded commitments	35		45
Reserves	33		34
Federal net operating loss carryforwards	19		31
State net operating loss carryforwards	11		14
Other	135		136
Total deferred tax assets	$	2,468	$	2,536
Deferred tax liabilities:
Lease financing	$	551	$	561
MSRs and related economic hedges	141		120
Goodwill and intangible assets	70		78
Bank premises and equipment	68		66
Investments in joint ventures and partnership interests	58		61
Other	143		101
Total deferred tax liabilities	$	1,031	$	987
Total net deferred tax asset	$	1,437	$	1,549