Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Components of Income Tax Provision

The components of the income tax provision are as follows:



Year Ended December 31, (Dollars in millions)	2018			2017		2016
Current expense:
Federal	$	629		$	539	$	959
State	151			80		97
Total current expense	780			619		1,056
Deferred expense:
Federal	26			253		(14		)
State	(3		)	39		16
Total deferred expense	23			292		2
Provision for income taxes	$	803		$	911	$	1,058

Schedule of Reconciliation Between Provision for Income Taxes and Amount Computed by Applying Federal Statutory Income Tax Rate

The reasons for the difference between the provision for income taxes and the amount computed by applying the statutory Federal income tax rate to income before income taxes were as follows:



Year Ended December 31, (Dollars in millions)	2018			2017			2016
Federal income taxes at statutory rate	$	853		$	1,164		$	1,225
Increase (decrease) in provision for income taxes as a result of:
State income taxes, net of federal tax benefit	117			77			73
Affordable housing projects proportional amortization	260			236			205
Affordable housing projects tax credits and other tax benefits	(317		)	(319		)	(279		)
Tax-exempt income	(90		)	(139		)	(151		)
Federal tax reform impact	(27		)	(43		)	—
Excess tax benefits for equity-based compensation	(17		)	(52		)	—
Other, net	24			(13		)	(15		)
Provision for income taxes	$	803		$	911		$	1,058
Effective income tax rate	19.8		%	27.4		%	30.2		%
Statutory federal tax rate	21.0		%	35.0		%	35.0		%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that gave rise to deferred tax assets and liabilities are reflected in the table below:



December 31, (Dollars in millions)	2018			2017
Deferred tax assets:
ALLL	$	374		$	359
Postretirement plans	360			311
Net unrealized loss on AFS securities	156			112
Equity-based compensation	82			66
Reserves and expense accruals	203			114
Partnerships	77			70
Other	158			160
Total deferred tax assets	1,410			1,192
Deferred tax liabilities:
Prepaid pension plan expense	453			436
MSRs	248			234
Lease financing	376			366
Loan fees and expenses	169			114
Identifiable intangible assets	183			163
Other	82			31
Total deferred tax liabilities	1,511			1,344
Net deferred tax asset (liability)	$	(101	)	$	(152	)