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INCOME TAXES
 6 Months Ended
Jun. 30, 2026
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 14.1
Three Months Ended
June 30,		Six Months Ended
June 30,
(dollars in millions)2026202520262025
Current income taxes:
Federal taxes$36 $34 $63 $53 
State taxes4 3 7 5 
Total current income taxes40 37 70 58 
Deferred income taxes:
Federal taxes(1)(1)5 8 
State taxes— — 1 1 
Total deferred income taxes(1)(1)6 9 
Total income taxes$39 $36 $76 $67 
Statutory federal tax rate21.0 %21.0 %21.0 %21.0 %
Effective tax rate20.9 21.5 21.1 21.2 
Income tax expense was higher for the six months ended June 30, 2026, primarily due to higher pre-tax income, offset slightly by higher deduction levels from employee stock compensation vesting.
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 liabilities were $11.1 million and $17.1 million at June 30, 2026 and December 31, 2025, respectively.