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Income Taxes (Tables)
9 Months Ended
Sep. 30, 2021
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)
 
    2021
 
  
    2020
 
 
  
 
  
2021
 
  
2020
 
Federal
 
     
  
     
 
   
 
  
     
  
     
Current
 
$
354
 
  
$
(53
 
   
 
  
$
1,057
 
  
$
966
 
Deferred
 
 
99
 
  
 
306
 
 
 
 
 
  
 
305
 
  
 
(459
Federal income tax
 
 
453
 
  
 
253
 
 
   
 
  
 
1,362
 
  
 
507
 
State
 
     
  
     
 
   
 
  
     
  
     
Current
 
 
94
 
  
 
92
 
 
   
 
  
 
297
 
  
 
298
 
Deferred
 
 
17
 
  
 
2
 
 
 
 
 
  
 
63
 
  
 
(134
     
 
   
State income tax
 
 
111
 
  
 
94
 
 
 
 
 
  
 
360
 
  
 
164
 
Total income tax provision
 
$
564
 
  
$
347
 
 
 
 
 
  
$
1,722
 
  
$
671
 
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)
 
    2021
 
 
    2020
 
 
  
 
  
2021
 
 
2020
 
Tax at statutory rate
 
$
546
 
 
$
406
 
 
   
 
  
$
1,686
 
 
$
867
 
State income tax, at statutory rates, net of federal tax benefit
 
 
108
 
 
 
75
 
 
   
 
  
 
327
 
 
 
170
 
Tax effect of
 
     
 
     
 
   
 
  
     
 
     
Tax credits and benefits, net of related expenses
 
 
(91
 
 
(82
 
   
 
  
 
(267
 
 
(280
Exam resolutions
 
 
 
 
 
(47
 
   
 
  
 
 
 
 
(47
Tax-exempt income
 
 
(28
 
 
(29
 
   
 
  
 
(85
 
 
(87
Other items
 
 
29
 
 
 
24
 
 
 
 
 
  
 
61
 
 
 
48
 
Applicable income taxes
 
$
564
 
 
$
347
 
 
 
 
 
  
$
1,722
 
 
$
671