v3.25.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Expense (Benefit)
The following schedule presents the primary components of income tax expense:
(In millions)202520242023
Federal:
Current$182 $194 $168 
Deferred23 (9)— 
Total federal205 185 168 
State:
Current47 41 47 
Deferred24 2 (9)
Total state71 43 38 
Total income tax expense$276 $228 $206 
Schedule of Statutory Federal Income Tax Rate Reconciles to Actual Income Tax Expense (Benefit)
The following schedule presents a reconciliation of income tax expense and the effective tax rate:
202520242023
(In millions)Income tax expenseEffective tax rateIncome tax expenseEffective tax rateIncome tax expenseEffective tax rate
U.S. federal statutory income tax$247 21.0 %$213 21.0 %$186 21.0 %
State and local income taxes, net of federal income tax effects 1
57 4.9 39 3.9 29 3.3 
Tax credits:
Low-income housing tax credit investments 2
(9)(0.8)(9)(0.9)(6)(0.6)
Other tax credits(2)(0.2)(1)(0.1)(2)(0.3)
Nontaxable or nondeductible items:
Disallowed interest expense10 0.9 14 1.4 11 1.2 
Tax-exempt interest(37)(3.2)(35)(3.5)(32)(3.5)
Nondeductible FDIC premium expense14 1.2 15 1.5 15 1.7 
Other nontaxable or nondeductible Items(4)(0.3)(3)(0.3)(4)(0.5)
Changes in unrecognized tax benefits(2)(0.2)(8)(0.8)4 0.5 
Other adjustments2 0.2 3 0.3 5 0.5 
Total$276 23.5 %$228 22.5 %$206 23.3 %
1 State taxes in California and Utah accounted for the majority of the tax effect within this category.
2 Low-income housing credits are presented net of related amortization.
Schedule of Income Taxes Paid, Net
The following schedule presents the disaggregated amounts of income taxes paid, net of refunds received, by federal and state jurisdictions:
(In millions)202520242023
Federal$143 $151 $204 
State:
California22 19 20 
Utah12 8 16 
Other19 14 15 
Total state53 41 51 
Total income taxes paid$196 $192 $255 
Schedule of Tax Effects of Deferred Tax Assets and Deferred Tax Liabilities The following schedule presents the tax effects of temporary differences that give rise to significant components of DTAs and DTLs:
(In millions)December 31,
20252024
Gross deferred tax assets:
Book loan loss deduction in excess of tax$179 $183 
Deferred compensation90 81 
Investment securities and derivative fair value adjustments620 775 
Lease liabilities64 60 
Capitalized costs9 30 
Other36 47 
Total deferred tax assets before valuation allowance998 1,176 
Valuation allowance— — 
Total deferred tax assets998 1,176 
Gross deferred tax liabilities:
Premises and equipment, due to differences in depreciation(91)(90)
Federal Home Loan Bank stock dividends(3)(3)
Leasing operations(40)(43)
Prepaid expenses(7)(8)
Mortgage servicing(6)(6)
Deferred loan costs(38)(36)
ROU assets(52)(47)
Qualified opportunity fund deferred gains(26)(26)
Equity investments(21)(13)
Total deferred tax liabilities(284)(272)
Net deferred tax assets (liabilities)$714 $904 
Schedule of Reconciliation of Gross Unrecognized Tax Benefits The following schedule presents a roll-forward of gross unrecognized tax benefits:
(In millions)202520242023
Balance at beginning of year$7 $15 $13 
Tax positions related to current year:
Additions— — 2 
Tax positions related to prior years:
Additions— — 10 
Settlements with taxing authorities— — (3)
Lapses in statutes of limitations(2)(8)(7)
Balance at end of year$5 $7 $15