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Income Taxes (Tables)
9 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]  
Components of Income Tax Expense
The components of income tax expense were:
 
    Three Months Ended
September 30
            Nine Months Ended
September 30
 
(Dollars in Millions)   2020     2019             2020     2019  
Federal
     
 
    
Current
  $ (53   $ 414    
 
   $ 966     $ 1,002  
Deferred
    306       (59  
 
 
 
     (459     26  
Federal income tax
    253       355    
 
     507       1,028  
State
     
 
    
Current
    92       140    
 
     298       280  
Deferred
    2       (28  
 
 
 
     (134     (14
 
State income tax
    94       112    
 
 
 
     164       266  
Total income tax provision
  $ 347     $ 467    
 
 
 
   $ 671     $ 1,294  
Reconciliation of Expected Income Tax Expense at Federal Statutory Rate of 21 Percent to Company's Applicable Income Tax Expense
A reconciliation of expected income tax expense at the federal statutory rate of 21 percent to the Company’s applicable income tax expense follows:
 
    Three Months Ended
September 30
            Nine Months Ended
September 30
 
(Dollars in Millions)   2020     2019             2020     2019  
Tax at statutory rate
  $ 406     $ 501    
 
   $ 867     $ 1,417  
State income tax, at statutory rates, net of federal tax benefit
    75       99    
 
     170       277  
Tax effect of
     
 
    
Tax credits and benefits, net of related expenses
    (82     (97  
 
     (280     (307
Exam resolutions
    (47        
 
     (47     (49
Tax-exempt
income
    (29     (29  
 
     (87     (92
Other items
    24       (7  
 
 
 
     48       48  
Applicable income taxes
  $ 347     $ 467    
 
 
 
   $ 671     $ 1,294