Income Taxes

3 Months Ended

Mar. 31, 2020

Income Taxes

Income Taxes

20. Income Taxes

The applicable income tax expense was $14 million and $221 million for the three months ended March 31, 2020 and 2019, respectively. The effective tax rates for the three months ended March 31, 2020 and 2019 were 22.6% and 22.2%, respectively. The increase in the effective tax rate for the three months ended March 31, 2020 compared to the same period in the prior year was primarily related to an increase in state income tax expense, partially offset by certain other items.

While it is reasonably possible that the amount of the unrecognized tax benefits with respect to certain of the Bancorp’s uncertain tax positions could increase or decrease during the next 12 months, the Bancorp believes it is unlikely that its unrecognized tax benefits will change by a material amount during the next 12 months.