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INCOME TAXES
 6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Income Tax Expense
Federal and state income tax expense and the statutory tax rate and the actual effective tax rate consist of the following:
TABLE 13.1
Three Months Ended
June 30,		Six Months Ended
June 30,
(dollars in millions)2025202420252024
Current income taxes:
Federal taxes$34 $30 $53 $47 
State taxes3 2 5 4 
Total current income taxes37 32 58 51 
Deferred income taxes:
Federal taxes(1)1 8 14 
State taxes— 1 1 3 
Total deferred income taxes(1)2 9 17 
Total income taxes$36 $34 $67 $68 
Statutory federal tax rate21.0 %21.0 %21.0 %21.0 %
Effective tax rate21.5 21.6 21.2 21.6 
Although pretax income increased slightly for the six months ended June 30, 2025, the impact on income tax expense was partially offset by the recognition of tax-exempt benefits associated with BOLI and increased net LIHTC.
Deferred Income Taxes
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and tax purposes. Deferred tax assets and liabilities are measured based on the enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. Net deferred tax assets were $27.8 million and $57.9 million at June 30, 2025 and December 31, 2024, respectively, with the decline primarily from lower unrealized losses on investment securities available for sale.
Other
On July 4, 2025, the One Big Beautiful Bill (the Act) was signed into law in the U.S. We are currently evaluating income tax implications of the Act. We do not expect the Act to have a material impact on our Consolidated Financial Statements.