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INCOME TAXES
 9 Months Ended
Sep. 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
September 30,		Nine Months Ended
September 30,
(dollars in millions)2026202520262025
Current income taxes:
Federal taxes$37 $29 $100 $82 
State taxes3 3 10 8 
Total current income taxes40 32 110 90 
Deferred income taxes:
Federal taxes— 8 5 16 
State taxes— — 1 1 
Total deferred income taxes— 8 6 17 
Total income taxes$40 $40 $116 $107 
Statutory federal tax rate21.0 %21.0 %21.0 %21.0 %
Effective tax rate20.6 21.3 20.9 21.2 
Income tax expense was higher for the nine months ended September 30, 2026, primarily due to higher pre-tax income, offset slightly by higher deduction levels from employee stock compensation vesting and the recognition of a deferred tax benefit related to a capital loss.
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 $14.3 million at September 30, 2026, compared with net deferred tax liabilities of $17.1 million at December 31, 2025.