Income Taxes |
6 Months Ended |
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Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 14. INCOME TAXES The Company's effective tax rate was 19.0% and 18.4% for the three months ended June 30, 2026 and 2025, respectively, and 18.7% and 18.8% for the six months ended June 30, 2026 and 2025, respectively. The increase in the effective tax rate for the three months ended June 30, 2026 compared to the same period in 2025 was primarily attributable to an increase in pretax income and a decrease in investment tax credits. For the six months ended June 30, 2026 and 2025, the effective tax rate remained substantially consistent. As of June 30, 2026, the net DTA balance totaled $425 million, an increase of $76 million from $349 million at December 31, 2025. The overall increase in the net DTA was primarily the result of an increase in credit carryovers and a decrease in the fair market value of AFS securities. Although realization is not assured, the Company believes realization of the recognized net DTA of $425 million at June 30, 2026 is more-likely-than-not based on expectations regarding future taxable income and based on available tax planning strategies that could be implemented if necessary to prevent a carryover from expiring. At June 30, 2026 and December 31, 2025, the Company had no deferred tax valuation allowance. LIHTC and renewable energy projects The Company holds ownership interests in limited partnerships and limited liability companies that invest in affordable housing and renewable energy projects. These investments are designed to generate a return primarily through the realization of federal tax credits and deductions. Investments in LIHTC and renewable energy totaled $571 million and $593 million as of June 30, 2026 and December 31, 2025, respectively. Unfunded LIHTC and renewable energy obligations are included in Other liabilities on the Consolidated Balance Sheet and totaled $263 million and $329 million as of June 30, 2026 and December 31, 2025, respectively. The Company recognized tax credits related to LIHTC investments of $21.5 million and $22.1 million during the three months ended June 30, 2026 and 2025, respectively, and $36.1 million and $39.7 million during the six months ended June 30, 2026 and 2025, respectively. For the three months ended June 30, 2026 and 2025, amortization related to LIHTC investments of $19.2 million and $19.0 million, respectively, was included as a component of income tax expense, compared to $32.1 million and $34.1 million for the six months ended June 30, 2026 and 2025, respectively.
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