v3.25.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit) The following table displays the components of our provision for U.S. federal income
taxes.
For the Year Ended December 31,
2025
2024
2023
(Dollars in millions)
Current income tax benefit (provision)
$(2,900)
$(3,154)
$(3,317)
Deferred income tax benefit (provision)(1)
(719)
(1,137)
(1,231)
Provision for federal income taxes
$(3,619)
$(4,291)
$(4,548)
(1)Amount excludes the current income tax effect of items recognized directly in “Total stockholders' equity.”
Schedule of Effective Income Tax Rate Reconciliation The following table displays the difference between the statutory corporate tax rate and our effective tax rate.
For the Year Ended December 31,
2025
2024
2023
(Dollars in millions)
Income before U.S. federal income taxes
$17,983
$21,269
$21,956
U.S. federal statutory corporate tax rate
3,776
21.0%
4,467
21.0%
4,611
21.0%
Tax credits
LIHTC investments
(417)
(2.3)
(311)
(1.4)
(213)
(1.0)
Research and development
(47)
(0.3)
(85)
(0.4)
(29)
(0.1)
Valuation allowance
(9)
(18)
(0.1)
30
0.1
Other adjustments
Proportional amortization, net of other tax
benefits, on LIHTC investments
331
1.8
255
1.2
166
0.8
Other
(15)
(0.1)
(17)
(0.1)
(17)
(0.1)
Provision for U.S. federal income taxes and
effective tax rate
$3,619
20.1%
$4,291
20.2%
$4,548
20.7%
Schedule of Deferred Tax Assets and Liabilities The following table displays our deferred tax assets and deferred tax liabilities.
As of December 31,
2025
2024
(Dollars in millions)
Deferred tax assets:
Mortgage and mortgage-related assets
$4,293
$5,060
Allowance for loan losses and basis in acquired property, net
1,621
1,392
Derivative instruments
160
291
Partnership and other equity investments
1
9
Interest-only securities
3,901
3,982
Other, net
531
749
Total deferred tax assets
10,507
11,483
Deferred tax liabilities:
Debt instruments
561
811
Valuation allowance
(118)
(127)
Deferred tax assets, net
$9,828
$10,545