v3.25.4
Federal, State, and Local Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Deferred Tax Assets and Liabilities
The following table summarizes the components of our net deferred tax asset (liability):

December 31,
20252024
Deferred Tax Assets:
Allowance for credit losses on loans and leases$273 $314 
Acquisition accounting and fair value adjustments on securities (including OTTI)133177 
Right of use liability
113121 
Non-accrual interest 7011 
Compensation and related benefit obligations4754 
Other2927 
Unrealized gains and amortization of mortgage servicing rights
—26 
Accrued expenses
1516 
Net operating loss carryforwards812 
Gross deferred tax assets$688 $758 
Valuation allowance$(4)$(4)
Net deferred tax asset after valuation allowance$684 $754 
Deferred Tax Liabilities:
Leases$(281)$(315)
Fair value adjustments on loans(161)(198)
Right of use asset
(101)(109)
Amortizable intangibles(72)(95)
Prepaid pension cost(44)(37)
Premises and equipment(38)(29)
Other(22)(14)
Acquisition accounting and fair value adjustments on debt(7)(8)
Gross deferred tax liabilities$(726)$(805)
Net deferred tax liability$(42)$(51)
Schedule of Components of the Provision (Benefit) for Income Taxes
The following table presents our income tax (benefit)/expense:

Year Ended December 31,
202520242023
Federal – current$26 $126 $156 
State and local – current16 25 59 
Total current42 151 215 
Federal – deferred(45)(336)(137)
State and local – deferred(18)(75)(49)
Total deferred(63)(411)(186)
Income tax (benefit)/expense reported in net income
(21)(260)29 
Income tax impact reported in stockholders’ equity related to:
Securities available-for-sale66 (24)15 
Pension liability adjustments5 (2)6 
Cash flow hedge(17)12 (14)
Total income taxes$33 $(274)$36 
Schedule of Differences Between the Effective Tax Rate and the Statutory Federal Tax Rate
The following table presents a reconciliation of statutory federal income tax (benefit)/expense to income tax (benefit)/expense reported in net income for the periods indicated:
Year Ended December 31,
202520242023
Statutory federal income tax at 21%
$(42)21.0 %$(289)20.9 %$(10)21.0 %
State and local income taxes, net of federal income tax effect(1)
(2)1.1 %(39)2.9 %8 (16.5)%
Federal tax credits(7)3.4 %(14)1.0 %(31)63.8 %
Nontaxable or nondeductible items
Non-deductible FDIC deposit insurance premiums37 (18.8)%66 (4.8)%16 (33.0)%
Non-taxable or deductible bargain gain— — %25 (1.8)%(447)909.0 %
Non-taxable expense of bank-owned life insurance(10)5.2 %(9)0.7 %(9)18.5 %
Tax exempt income (8)4.2 %(8)0.6 %(6)11.3 %
Effect of tax deductibility of deferred compensation3 (1.4)%3 (0.2)%(3)6.2 %
Non-deductible executive compensation7 (3.5)%— — %— — %
Non-deductible goodwill impairment— — %— — %509 (1035.1)%
Other
— — %6 (0.5)%— (0.8)%
Other, net1 (0.6)%(1)0.1 %2 (4.0)%
Total income tax (benefit)/expense
$(21)10.6 %$(260)18.9 %$29 (59.6)%
(1)States taxes in the following states made up the majority of the category or greater than 50% of the tax effected category:
2025-New York State, New York City, New Jersey, California and Texas
2024-New York State and New York City
2023-New York State, New York City, New Jersey, California, Georgia, Illinois, Florida, Virginia and Arizona
Schedule of Income Taxes Paid
The amount of income taxes paid (net of refunds) is as follows:

Year Ended December 31,
202520242023
US Federal
$— $(8)$9 
US State and Local
State Taxes:
New York State
10 9 13 
New Jersey
(1)1 (2)
California
*1 8 
Illinois
*1 2 
Florida
*2 2 
Maryland
*1 *
Massachusetts
*1 *
Texas
2 2 *
Indiana
*1 1 
Other
— 4 11 
Local Taxes:
New York City
2 **
Total state and local
$13 $23 $35 
Total $13 $15 $44 
*The amount of income taxes paid during the year does not meet the 5% disaggregation threshold.
Schedule of Unrecognized Tax Benefits
The following table summarizes changes in the liability for unrecognized gross tax benefits:

Year Ended December 31,
202520242023
Uncertain tax positions at beginning of year$43 $42 $40 
Additions for tax positions relating to current-year operations1 1 1 
Additions for tax positions relating to prior tax years— — 2 
Subtractions for tax positions relating to prior tax years(1)— (1)
Uncertain tax positions at end of year$43 $43 $42 
Schedule of Income Tax Filings are Currently Under Examination
The following notable income tax filings are currently under examination:

Jurisdiction
Period
Federal income tax
2019-2021
New York State income tax
2010-2021
New York City income tax
2011-2014, 2016-2021
Illinois income tax
2018-2019, 2020-2023
California
2021-2022