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x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
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36-2723087
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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50 South LaSalle Street
Chicago, Illinois
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60603
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
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x
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Accelerated filer
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¨
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|
|
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Non-accelerated filer
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¨
(Do not check if a smaller reporting company)
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Smaller reporting company
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¨
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|
|
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Page
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|
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Three Months Ended September 30,
|
|
Nine Months Ended September 30,
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||||||||||||||||||
CONDENSED INCOME STATEMENTS (In Millions)
|
2015
|
|
2014
|
|
% Change (*)
|
|
2015
|
|
2014
|
|
% Change (*)
|
||||||||||
Noninterest Income
|
$
|
886.6
|
|
|
$
|
829.6
|
|
|
7
|
%
|
|
$
|
2,765.2
|
|
|
$
|
2,459.5
|
|
|
12
|
%
|
Net Interest Income
|
268.9
|
|
|
249.3
|
|
|
8
|
|
|
780.7
|
|
|
741.6
|
|
|
5
|
|
||||
Provision for Credit Losses
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(10.0
|
)
|
|
—
|
|
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N/M
|
|
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(24.5
|
)
|
|
3.0
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|
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N/M
|
|
||||
Noninterest Expense
|
812.3
|
|
|
774.7
|
|
|
5
|
|
|
2,455.8
|
|
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2,353.7
|
|
|
4
|
|
||||
Income before Income Taxes
|
353.2
|
|
|
304.2
|
|
|
16
|
|
|
1,114.6
|
|
|
844.4
|
|
|
32
|
|
||||
Provision for Income Taxes
|
118.6
|
|
|
99.7
|
|
|
19
|
|
|
380.1
|
|
|
276.6
|
|
|
37
|
|
||||
Net Income
|
$
|
234.6
|
|
|
$
|
204.5
|
|
|
15
|
%
|
|
$
|
734.5
|
|
|
$
|
567.8
|
|
|
29
|
%
|
PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
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||||||||||
Net Income — Basic
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$
|
0.97
|
|
|
$
|
0.85
|
|
|
14
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%
|
|
$
|
3.03
|
|
|
$
|
2.36
|
|
|
28
|
%
|
— Diluted
|
0.96
|
|
|
0.84
|
|
|
14
|
|
|
3.00
|
|
|
2.34
|
|
|
28
|
|
||||
Cash Dividends Declared Per Common Share
|
0.36
|
|
|
0.33
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|
|
9
|
|
|
1.05
|
|
|
0.97
|
|
|
8
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|
||||
Book Value — End of Period (EOP)
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36.31
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|
|
34.62
|
|
|
5
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|
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36.31
|
|
|
34.62
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|
|
5
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|
||||
Market Price — EOP
|
68.16
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|
|
68.03
|
|
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—
|
|
|
68.16
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|
|
68.03
|
|
|
—
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|
SELECTED BALANCE SHEET DATA (In Millions)
|
|
|
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|||||
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September 30, 2015
|
|
December 31, 2014
|
|
% Change (*)
|
|
|||||
End of Period:
|
|
|
|
|
|
|
|||||
Assets
|
$
|
119,995.2
|
|
|
$
|
109,946.5
|
|
|
9
|
%
|
|
Earning Assets
|
110,565.5
|
|
|
100,889.8
|
|
|
10
|
|
|
||
Deposits
|
99,935.9
|
|
|
90,757.0
|
|
|
10
|
|
|
||
Stockholders’ Equity
|
8,784.5
|
|
|
8,448.9
|
|
|
4
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||||||||
|
2015
|
|
2014
|
|
% Change (*)
|
|
2015
|
|
2014
|
|
% Change (*)
|
||||||||||
Average Balances:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
$
|
109,924.1
|
|
|
$
|
105,244.7
|
|
|
4
|
%
|
|
$
|
109,718.3
|
|
|
$
|
102,955.8
|
|
|
7
|
%
|
Earning Assets
|
100,809.2
|
|
|
96,967.5
|
|
|
4
|
|
|
101,110.5
|
|
|
94,773.8
|
|
|
7
|
|
||||
Deposits
|
91,027.0
|
|
|
85,717.2
|
|
|
6
|
|
|
89,979.2
|
|
|
83,721.6
|
|
|
7
|
|
||||
Stockholders’ Equity
|
8,710.5
|
|
|
8,285.5
|
|
|
5
|
|
|
8,597.9
|
|
|
8,054.3
|
|
|
7
|
|
CLIENT ASSETS (In Billions)
|
September 30, 2015
|
|
December 31, 2014
|
|
% Change (*)
|
|
|||||
Assets Under Custody
|
$
|
5,956.4
|
|
|
$
|
5,968.8
|
|
|
—
|
%
|
|
Assets Under Management
|
886.8
|
|
|
934.1
|
|
|
(5
|
)
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||||
|
2015
|
|
2014
|
|
% Change (*)
|
|
2015
|
|
2014
|
|
% Change (*)
|
||||||
Financial Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Return on Average Common Equity
|
10.91
|
%
|
|
10.09
|
%
|
|
8
|
%
|
|
11.68
|
%
|
|
9.52
|
%
|
|
23
|
%
|
Return on Average Assets
|
0.85
|
|
|
0.77
|
|
|
10
|
|
|
0.90
|
|
|
0.74
|
|
|
22
|
|
Dividend Payout Ratio
|
37.5
|
|
|
39.3
|
|
|
(5
|
)
|
|
35.0
|
|
|
41.5
|
|
|
(16
|
)
|
Net Interest Margin (**)
|
1.08
|
|
|
1.05
|
|
|
3
|
|
|
1.06
|
|
|
1.08
|
|
|
(2
|
)
|
|
September 30, 2015
|
|
December 31, 2014
|
||||||||
|
Advanced
Approach
|
|
Standardized
Approach (a)
|
|
Advanced
Approach
|
|
Standardized
Approach (a)
|
||||
Capital Ratios:
|
|
|
|
|
|
|
|
||||
Northern Trust Corporation
|
|
|
|
|
|
|
|
||||
Common Equity Tier 1
|
12.4
|
%
|
|
10.4
|
%
|
|
12.4
|
%
|
|
12.5
|
%
|
Tier 1
|
13.0
|
|
|
11.0
|
|
|
13.2
|
|
|
13.3
|
|
Total
|
14.8
|
|
|
12.8
|
|
|
15.0
|
|
|
15.5
|
|
Tier 1 Leverage
|
7.8
|
|
|
7.8
|
|
|
n/a
|
|
|
7.8
|
|
Supplementary Leverage (b)
|
6.4
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
|
|
|
|
|
|
|
||||
The Northern Trust Company
|
|
|
|
|
|
|
|
||||
Common Equity Tier 1
|
12.0
|
%
|
|
9.9
|
%
|
|
12.0
|
%
|
|
11.8
|
%
|
Tier 1
|
12.0
|
|
|
9.9
|
|
|
12.0
|
|
|
11.8
|
|
Total
|
13.6
|
|
|
11.6
|
|
|
13.8
|
|
|
14.0
|
|
Tier 1 Leverage
|
7.0
|
|
|
7.0
|
|
|
n/a
|
|
|
6.9
|
|
Supplementary Leverage (b)
|
5.7
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
(*)
|
Percentage calculations are based on actual balances rather than the rounded amounts presented in the Consolidated Financial Highlights.
|
(**)
|
Net interest margin is presented on a fully taxable equivalent (FTE) basis, a non-generally-accepted-accounting-principle (GAAP) financial measure that facilitates the analysis of asset yields. The net interest margin on a GAAP basis and a reconciliation of net interest income on a GAAP basis to net interest income on an FTE basis are presented on page 25.
|
(a)
|
In 2014, Standardized Approach risk-weighted assets were determined by Basel I requirements. Effective with the first quarter of 2015, risk-weighted assets are calculated in accordance with the Basel III Standardized Approach final rules.
|
(b)
|
Beginning with the first quarter of 2015, advanced approaches banking organizations must calculate and report their supplementary leverage ratio. Effective January 1, 2018, advanced approaches institutions, such as the Corporation, will be subject to a minimum supplementary leverage ratio of 3 percent.
|
Noninterest Income
|
Three Months Ended September 30,
|
|
|
|
|
|||||||||
($ In Millions)
|
2015
|
|
2014
|
|
Change
|
|||||||||
Trust, Investment and Other Servicing Fees
|
$
|
749.1
|
|
|
$
|
718.2
|
|
|
$
|
30.9
|
|
|
4
|
%
|
Foreign Exchange Trading Income
|
62.9
|
|
|
46.4
|
|
|
16.5
|
|
|
36
|
|
|||
Treasury Management Fees
|
16.1
|
|
|
16.4
|
|
|
(0.3
|
)
|
|
(2
|
)
|
|||
Security Commissions and Trading Income
|
20.4
|
|
|
14.2
|
|
|
6.2
|
|
|
44
|
|
|||
Other Operating Income
|
38.1
|
|
|
34.1
|
|
|
4.0
|
|
|
12
|
|
|||
Investment Security Gains, net
|
—
|
|
|
0.3
|
|
|
(0.3
|
)
|
|
(100
|
)
|
|||
Total Noninterest Income
|
$
|
886.6
|
|
|
$
|
829.6
|
|
|
$
|
57.0
|
|
|
7
|
%
|
Assets Under Custody
|
September 30, 2015
|
|
June 30, 2015
|
|
September 30, 2014
|
|
Change Q3-15/Q2-15
|
|
Change Q3-15/Q3-14
|
||||||||
($ In Billions)
|
|||||||||||||||||
Corporate & Institutional
|
$
|
5,460.6
|
|
|
$
|
5,652.6
|
|
|
$
|
5,403.1
|
|
|
(3
|
)%
|
|
1
|
%
|
Wealth Management
|
495.8
|
|
|
524.4
|
|
|
507.2
|
|
|
(5
|
)
|
|
(2
|
)
|
|||
Total Assets Under Custody
|
$
|
5,956.4
|
|
|
$
|
6,177.0
|
|
|
$
|
5,910.3
|
|
|
(4
|
)%
|
|
1
|
%
|
|
September 30, 2015
|
|
June 30, 2015
|
|
September 30, 2014
|
|||||||||||||||||||||
Assets Under Custody
|
C&IS
|
|
WM
|
|
Total
|
|
C&IS
|
|
WM
|
|
Total
|
|
C&IS
|
|
WM
|
|
Total
|
|||||||||
Equities
|
43
|
%
|
|
53
|
%
|
|
44
|
%
|
|
45
|
%
|
|
55
|
%
|
|
46
|
%
|
|
44
|
%
|
|
55
|
%
|
|
45
|
%
|
Fixed Income Securities
|
38
|
|
|
24
|
|
|
37
|
|
|
37
|
|
|
23
|
|
|
35
|
|
|
37
|
|
|
22
|
|
|
36
|
|
Cash and Other Assets
|
19
|
|
|
23
|
|
|
19
|
|
|
18
|
|
|
22
|
|
|
19
|
|
|
19
|
|
|
23
|
|
|
19
|
|
Assets Under Management
|
September 30, 2015
|
|
June 30, 2015
|
|
September 30, 2014
|
|
Change Q3-15/Q2-15
|
|
Change Q3-15/Q3-14
|
||||||||
($ In Billions)
|
|||||||||||||||||
Corporate & Institutional
|
$
|
661.5
|
|
|
$
|
713.6
|
|
|
$
|
702.9
|
|
|
(7
|
)%
|
|
(6
|
)%
|
Wealth Management
|
225.3
|
|
|
232.0
|
|
|
220.4
|
|
|
(3
|
)
|
|
2
|
|
|||
Total Assets Under Management
|
$
|
886.8
|
|
|
$
|
945.6
|
|
|
$
|
923.3
|
|
|
(6
|
)%
|
|
(4
|
)%
|
($ In Billions)
|
September 30, 2015
|
|
June 30, 2015
|
|
September 30, 2014
|
||||||
Equities
|
$
|
437.8
|
|
|
$
|
487.7
|
|
|
$
|
477.1
|
|
Fixed Income Securities
|
150.1
|
|
|
167.7
|
|
|
154.2
|
|
|||
Cash and Other Assets
|
176.9
|
|
|
169.9
|
|
|
170.9
|
|
|||
Securities Lending Collateral
|
122.0
|
|
|
120.3
|
|
|
121.1
|
|
|||
Total Assets Under Management
|
$
|
886.8
|
|
|
$
|
945.6
|
|
|
$
|
923.3
|
|
|
September 30, 2015
|
|
June 30, 2015
|
|
September 30, 2014
|
|||||||||||||||||||||
Assets Under Management
|
C&IS
|
|
WM
|
|
Total
|
|
C&IS
|
|
WM
|
|
Total
|
|
C&IS
|
|
WM
|
|
Total
|
|||||||||
Equities
|
51
|
%
|
|
44
|
%
|
|
49
|
%
|
|
53
|
%
|
|
47
|
%
|
|
51
|
%
|
|
53
|
%
|
|
48
|
%
|
|
52
|
%
|
Fixed Income Securities
|
13
|
|
|
29
|
|
|
17
|
|
|
14
|
|
|
28
|
|
|
18
|
|
|
13
|
|
|
28
|
|
|
17
|
|
Securities Lending Collateral
|
18
|
|
|
—
|
|
|
14
|
|
|
17
|
|
|
—
|
|
|
13
|
|
|
17
|
|
|
—
|
|
|
13
|
|
Cash and Other Assets
|
18
|
|
|
27
|
|
|
20
|
|
|
16
|
|
|
25
|
|
|
18
|
|
|
17
|
|
|
24
|
|
|
18
|
|
Other Operating Income
|
Three Months Ended September 30,
|
|
|
|
|
|||||||||
($ In Millions)
|
2015
|
|
2014
|
|
Change
|
|||||||||
Loan Service Fees
|
$
|
14.8
|
|
|
$
|
15.3
|
|
|
$
|
(0.5
|
)
|
|
(3
|
)%
|
Banking Service Fees
|
11.9
|
|
|
12.3
|
|
|
(0.4
|
)
|
|
(3
|
)
|
|||
Other Income
|
11.4
|
|
|
6.5
|
|
|
4.9
|
|
|
75
|
|
|||
Total Other Operating Income
|
$
|
38.1
|
|
|
$
|
34.1
|
|
|
$
|
4.0
|
|
|
12
|
%
|
Table 8: AVERAGE CONSOLIDATED BALANCE SHEETS WITH ANALYSIS OF NET INTEREST INCOME
(INTEREST AND RATE ON A FULLY TAXABLE EQUIVALENT BASIS)
|
NORTHERN TRUST CORPORATION
|
||||||||||||||||||||
Third Quarter
|
|||||||||||||||||||||
2015
|
|
2014
|
|||||||||||||||||||
($ In Millions)
|
Interest
|
|
Average
Balance
|
|
Rate (4)
|
|
Interest
|
|
Average
Balance
|
|
Rate (4)
|
||||||||||
Average Earning Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal Funds Sold and Securities Purchased under
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agreements to Resell
|
$
|
1.3
|
|
|
$
|
1,080.4
|
|
|
0.49
|
%
|
|
$
|
1.0
|
|
|
$
|
923.1
|
|
|
0.44
|
%
|
Interest-Bearing Due from and Deposits with Banks (1)
|
27.0
|
|
|
15,828.1
|
|
|
0.68
|
|
|
30.9
|
|
|
16,288.3
|
|
|
0.75
|
|
||||
Federal Reserve Deposits
|
8.1
|
|
|
12,721.3
|
|
|
0.25
|
|
|
10.4
|
|
|
15,914.3
|
|
|
0.26
|
|
||||
Securities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government
|
14.1
|
|
|
5,034.6
|
|
|
1.11
|
|
|
7.9
|
|
|
3,031.9
|
|
|
1.03
|
|
||||
Obligations of States and Political Subdivisions
|
1.8
|
|
|
103.3
|
|
|
6.80
|
|
|
2.5
|
|
|
148.5
|
|
|
6.74
|
|
||||
Government Sponsored Agency
|
34.9
|
|
|
16,198.2
|
|
|
0.86
|
|
|
34.2
|
|
|
17,385.6
|
|
|
0.78
|
|
||||
Other (2)
|
36.4
|
|
|
16,705.0
|
|
|
0.86
|
|
|
27.5
|
|
|
13,019.4
|
|
|
0.84
|
|
||||
Total Securities
|
87.2
|
|
|
38,041.1
|
|
|
0.91
|
|
|
72.1
|
|
|
33,585.4
|
|
|
0.85
|
|
||||
Loans and Leases (3)
|
188.2
|
|
|
33,138.3
|
|
|
2.25
|
|
|
186.3
|
|
|
30,256.4
|
|
|
2.44
|
|
||||
Total Earning Assets
|
311.8
|
|
|
100,809.2
|
|
|
1.23
|
|
|
300.7
|
|
|
96,967.5
|
|
|
1.23
|
|
||||
Allowance for Credit Losses Assigned to Loans and Leases
|
—
|
|
|
(256.0
|
)
|
|
—
|
|
|
—
|
|
|
(273.4
|
)
|
|
—
|
|
||||
Cash and Due from Banks
|
—
|
|
|
2,683.5
|
|
|
—
|
|
|
—
|
|
|
2,783.0
|
|
|
—
|
|
||||
Buildings and Equipment
|
—
|
|
|
435.6
|
|
|
—
|
|
|
—
|
|
|
445.6
|
|
|
—
|
|
||||
Client Security Settlement Receivables
|
—
|
|
|
1,031.8
|
|
|
—
|
|
|
—
|
|
|
820.8
|
|
|
—
|
|
||||
Goodwill
|
—
|
|
|
532.4
|
|
|
—
|
|
|
—
|
|
|
541.9
|
|
|
—
|
|
||||
Other Assets
|
—
|
|
|
4,687.6
|
|
|
—
|
|
|
—
|
|
|
3,959.3
|
|
|
—
|
|
||||
Total Assets
|
$
|
—
|
|
|
$
|
109,924.1
|
|
|
—
|
%
|
|
$
|
—
|
|
|
$
|
105,244.7
|
|
|
—
|
%
|
Average Source of Funds
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Savings and Money Market
|
$
|
2.4
|
|
|
$
|
15,168.4
|
|
|
0.06
|
%
|
|
$
|
2.5
|
|
|
$
|
15,019.0
|
|
|
0.07
|
%
|
Savings Certificates and Other Time
|
2.2
|
|
|
1,487.0
|
|
|
0.57
|
|
|
1.4
|
|
|
1,902.9
|
|
|
0.30
|
|
||||
Non-U.S. Offices — Interest-Bearing
|
13.3
|
|
|
50,107.9
|
|
|
0.11
|
|
|
17.7
|
|
|
48,725.5
|
|
|
0.14
|
|
||||
Total Interest-Bearing Deposits
|
17.9
|
|
|
66,763.3
|
|
|
0.11
|
|
|
21.6
|
|
|
65,647.4
|
|
|
0.13
|
|
||||
Short-Term Borrowings
|
1.1
|
|
|
3,878.5
|
|
|
0.11
|
|
|
1.5
|
|
|
4,860.3
|
|
|
0.12
|
|
||||
Senior Notes
|
11.7
|
|
|
1,497.2
|
|
|
3.10
|
|
|
11.6
|
|
|
1,496.8
|
|
|
3.10
|
|
||||
Long-Term Debt
|
5.5
|
|
|
1,374.3
|
|
|
1.60
|
|
|
9.2
|
|
|
1,636.5
|
|
|
2.23
|
|
||||
Floating Rate Capital Debt
|
0.6
|
|
|
277.3
|
|
|
0.86
|
|
|
0.6
|
|
|
277.2
|
|
|
0.81
|
|
||||
Total Interest-Related Funds
|
36.8
|
|
|
73,790.6
|
|
|
0.20
|
|
|
44.5
|
|
|
73,918.2
|
|
|
0.24
|
|
||||
Interest Rate Spread
|
—
|
|
|
—
|
|
|
1.03
|
|
|
—
|
|
|
—
|
|
|
0.99
|
|
||||
Demand and Other Noninterest-Bearing Deposits
|
—
|
|
|
24,263.7
|
|
|
—
|
|
|
—
|
|
|
20,069.8
|
|
|
—
|
|
||||
Other Liabilities
|
—
|
|
|
3,159.3
|
|
|
—
|
|
|
—
|
|
|
2,971.2
|
|
|
—
|
|
||||
Stockholders’ Equity
|
—
|
|
|
8,710.5
|
|
|
—
|
|
|
—
|
|
|
8,285.5
|
|
|
—
|
|
||||
Total Liabilities and Stockholders’ Equity
|
$
|
—
|
|
|
$
|
109,924.1
|
|
|
—
|
%
|
|
$
|
—
|
|
|
$
|
105,244.7
|
|
|
—
|
%
|
Net Interest Income/Margin (FTE Adjusted)
|
$
|
275.0
|
|
|
$
|
—
|
|
|
1.08
|
%
|
|
$
|
256.2
|
|
|
$
|
—
|
|
|
1.05
|
%
|
Net Interest Income/Margin (Unadjusted)
|
$
|
268.9
|
|
|
$
|
—
|
|
|
1.06
|
%
|
|
$
|
249.3
|
|
|
$
|
—
|
|
|
1.02
|
%
|
|
Three Months Ended September 30, 2015/2014
|
||||||||||
|
Change Due To
|
||||||||||
(In Millions)
|
Average
Balance
|
|
Rate
|
|
Total
|
||||||
Earning Assets (FTE)
|
$
|
11.1
|
|
|
$
|
—
|
|
|
$
|
11.1
|
|
Interest-Related Funds
|
(0.1
|
)
|
|
(7.6
|
)
|
|
(7.7
|
)
|
|||
Net Interest Income (FTE)
|
$
|
11.2
|
|
|
$
|
7.6
|
|
|
$
|
18.8
|
|
(1)
|
Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets.
|
(2)
|
Other securities include certain community development investments and Federal Home Loan Bank and Federal Reserve stock, which are classified in other assets in the consolidated balance sheets as of
September 30, 2015
and
2014
.
|
(3)
|
Average balances include nonaccrual loans. Lease financing receivable balances are reduced by deferred income.
|
(4)
|
Rate calculations are based on actual balances rather than the rounded amounts presented in the Average Consolidated Balance Sheets with Analysis of Net Interest Income.
|
Notes:
|
Net Interest Income (FTE Adjusted) includes adjustments to a fully taxable equivalent basis for loans and securities. Such adjustments are based on a blended federal and state tax rate of 37.6% and 37.8% for the three months ended
September 30, 2015
and
2014
, respectively. Total taxable equivalent interest adjustments amounted to
$6.1 million
and
$6.9 million
for the three months ended
September 30, 2015
and
2014
, respectively.
|
Noninterest Expense
|
Three Months Ended September 30,
|
|
|
|
|
|||||||||
($ In Millions)
|
2015
|
|
2014
|
|
Change
|
|||||||||
Compensation
|
$
|
361.6
|
|
|
$
|
348.0
|
|
|
$
|
13.6
|
|
|
4
|
%
|
Employee Benefits
|
69.8
|
|
|
70.6
|
|
|
(0.8
|
)
|
|
(1
|
)
|
|||
Outside Services
|
158.3
|
|
|
142.4
|
|
|
15.9
|
|
|
11
|
|
|||
Equipment and Software
|
113.6
|
|
|
100.5
|
|
|
13.1
|
|
|
13
|
|
|||
Occupancy
|
43.7
|
|
|
43.8
|
|
|
(0.1
|
)
|
|
—
|
|
|||
Other Operating Expense
|
65.3
|
|
|
69.4
|
|
|
(4.1
|
)
|
|
(6
|
)
|
|||
Total Noninterest Expense
|
$
|
812.3
|
|
|
$
|
774.7
|
|
|
$
|
37.6
|
|
|
5
|
%
|
Other Operating Expense
|
Three Months Ended September 30,
|
|
|
|
|
|||||||||
($ In Millions)
|
2015
|
|
2014
|
|
Change
|
|||||||||
Business Promotion
|
$
|
20.4
|
|
|
$
|
19.1
|
|
|
$
|
1.3
|
|
|
7
|
%
|
Staff Related
|
8.9
|
|
|
10.8
|
|
|
(1.9
|
)
|
|
(18
|
)
|
|||
FDIC Insurance Premiums
|
6.6
|
|
|
5.8
|
|
|
0.8
|
|
|
14
|
|
|||
Other Intangibles Amortization
|
2.1
|
|
|
4.8
|
|
|
(2.7
|
)
|
|
(56
|
)
|
|||
Other Expenses
|
27.3
|
|
|
28.9
|
|
|
(1.6
|
)
|
|
(6
|
)
|
|||
Total Other Operating Expense
|
$
|
65.3
|
|
|
$
|
69.4
|
|
|
$
|
(4.1
|
)
|
|
(6
|
)%
|
Three Months Ended September 30,
|
Corporate &
Institutional Services
|
|
Wealth
Management
|
|
Treasury and
Other
|
|
Total
Consolidated
|
||||||||||||||||||||||||
($ In Millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||||||||
Noninterest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Trust, Investment and Other Servicing Fees
|
$
|
429.7
|
|
|
$
|
399.9
|
|
|
$
|
319.4
|
|
|
$
|
318.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
749.1
|
|
|
$
|
718.2
|
|
Foreign Exchange Trading Income
|
60.0
|
|
|
44.4
|
|
|
2.9
|
|
|
2.0
|
|
|
—
|
|
|
—
|
|
|
62.9
|
|
|
46.4
|
|
||||||||
Other Noninterest Income
|
45.9
|
|
|
42.8
|
|
|
28.3
|
|
|
20.9
|
|
|
0.4
|
|
|
1.3
|
|
|
74.6
|
|
|
65.0
|
|
||||||||
Net Interest Income (FTE)*
|
108.6
|
|
|
78.4
|
|
|
142.5
|
|
|
131.2
|
|
|
23.9
|
|
|
46.6
|
|
|
275.0
|
|
|
256.2
|
|
||||||||
Revenue*
|
644.2
|
|
|
565.5
|
|
|
493.1
|
|
|
472.4
|
|
|
24.3
|
|
|
47.9
|
|
|
1,161.6
|
|
|
1,085.8
|
|
||||||||
Provision for Credit Losses
|
(2.8
|
)
|
|
0.9
|
|
|
(7.2
|
)
|
|
(0.9
|
)
|
|
—
|
|
|
—
|
|
|
(10.0
|
)
|
|
—
|
|
||||||||
Noninterest Expense
|
464.6
|
|
|
429.6
|
|
|
316.3
|
|
|
312.1
|
|
|
31.4
|
|
|
33.0
|
|
|
812.3
|
|
|
774.7
|
|
||||||||
Income before Income Taxes*
|
182.4
|
|
|
135.0
|
|
|
184.0
|
|
|
161.2
|
|
|
(7.1
|
)
|
|
14.9
|
|
|
359.3
|
|
|
311.1
|
|
||||||||
Provision for Income Taxes*
|
58.3
|
|
|
42.4
|
|
|
69.0
|
|
|
60.7
|
|
|
(2.6
|
)
|
|
3.5
|
|
|
124.7
|
|
|
106.6
|
|
||||||||
Net Income
|
$
|
124.1
|
|
|
$
|
92.6
|
|
|
$
|
115.0
|
|
|
$
|
100.5
|
|
|
$
|
(4.5
|
)
|
|
$
|
11.4
|
|
|
$
|
234.6
|
|
|
$
|
204.5
|
|
Percentage of Consolidated Net Income
|
53
|
%
|
|
45
|
%
|
|
49
|
%
|
|
49
|
%
|
|
(2
|
)%
|
|
6
|
%
|
|
100
|
%
|
|
100
|
%
|
||||||||
Average Assets
|
$
|
41,305.7
|
|
|
$
|
59,907.1
|
|
|
$
|
25,274.6
|
|
|
$
|
26,061.8
|
|
|
$
|
43,343.8
|
|
|
$
|
19,275.8
|
|
|
$
|
109,924.1
|
|
|
$
|
105,244.7
|
|
Nine Months Ended September 30,
|
Corporate &
Institutional Services
|
|
Wealth
Management
|
|
Treasury and
Other
|
|
Total
Consolidated
|
||||||||||||||||||||||||
($ In Millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||||||||
Noninterest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Trust, Investment and Other Servicing Fees
|
$
|
1,269.0
|
|
|
$
|
1,174.5
|
|
|
$
|
964.4
|
|
|
$
|
930.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,233.4
|
|
|
$
|
2,104.6
|
|
Foreign Exchange Trading Income
|
199.3
|
|
|
143.2
|
|
|
10.0
|
|
|
6.2
|
|
|
—
|
|
|
—
|
|
|
209.3
|
|
|
149.4
|
|
||||||||
Other Noninterest Income
|
131.0
|
|
|
134.3
|
|
|
83.9
|
|
|
66.7
|
|
|
107.6
|
|
|
4.5
|
|
|
322.5
|
|
|
205.5
|
|
||||||||
Net Interest Income (FTE)*
|
297.3
|
|
|
228.8
|
|
|
421.8
|
|
|
398.8
|
|
|
80.3
|
|
|
136.4
|
|
|
799.4
|
|
|
764.0
|
|
||||||||
Revenue*
|
1,896.6
|
|
|
1,680.8
|
|
|
1,480.1
|
|
|
1,401.8
|
|
|
187.9
|
|
|
140.9
|
|
|
3,564.6
|
|
|
3,223.5
|
|
||||||||
Provision for Credit Losses
|
(3.0
|
)
|
|
4.5
|
|
|
(21.5
|
)
|
|
(1.5
|
)
|
|
—
|
|
|
—
|
|
|
(24.5
|
)
|
|
3.0
|
|
||||||||
Noninterest Expense
|
1,387.7
|
|
|
1,299.5
|
|
|
960.9
|
|
|
960.3
|
|
|
107.2
|
|
|
93.9
|
|
|
2,455.8
|
|
|
2,353.7
|
|
||||||||
Income before Income Taxes*
|
511.9
|
|
|
376.8
|
|
|
540.7
|
|
|
443.0
|
|
|
80.7
|
|
|
47.0
|
|
|
1,133.3
|
|
|
866.8
|
|
||||||||
Provision for Income Taxes*
|
160.9
|
|
|
113.3
|
|
|
203.2
|
|
|
166.9
|
|
|
34.7
|
|
|
18.8
|
|
|
398.8
|
|
|
299.0
|
|
||||||||
Net Income
|
$
|
351.0
|
|
|
$
|
263.5
|
|
|
$
|
337.5
|
|
|
$
|
276.1
|
|
|
$
|
46.0
|
|
|
$
|
28.2
|
|
|
$
|
734.5
|
|
|
$
|
567.8
|
|
Percentage of Consolidated Net Income
|
48
|
%
|
|
46
|
%
|
|
46
|
%
|
|
49
|
%
|
|
6
|
%
|
|
5
|
%
|
|
100
|
%
|
|
100
|
%
|
||||||||
Average Assets
|
$
|
41,461.6
|
|
|
$
|
59,061.3
|
|
|
$
|
24,806.8
|
|
|
$
|
23,613.4
|
|
|
$
|
43,449.9
|
|
|
$
|
20,281.1
|
|
|
$
|
109,718.3
|
|
|
$
|
102,955.8
|
|
|
Three Months Ended
September 30, |
|
|
|
|
|||||||||
($ In Millions)
|
2015
|
|
2014
|
|
Change
|
|||||||||
Custody and Fund Administration
|
$
|
293.9
|
|
|
$
|
275.0
|
|
|
$
|
18.9
|
|
|
7
|
%
|
Investment Management
|
82.6
|
|
|
75.4
|
|
|
7.2
|
|
|
10
|
|
|||
Securities Lending
|
19.8
|
|
|
22.0
|
|
|
(2.2
|
)
|
|
(10
|
)
|
|||
Other
|
33.4
|
|
|
27.5
|
|
|
5.9
|
|
|
21
|
|
|||
Total C&IS Trust, Investment and Other Servicing Fees
|
$
|
429.7
|
|
|
$
|
399.9
|
|
|
$
|
29.8
|
|
|
7
|
%
|
|
Three Months Ended
September 30, |
|
|
|
|
|||||||||
($ In Millions)
|
2015
|
|
2014
|
|
Change
|
|||||||||
Central
|
$
|
126.8
|
|
|
$
|
129.5
|
|
|
$
|
(2.7
|
)
|
|
(2
|
)%
|
East
|
82.1
|
|
|
83.2
|
|
|
(1.1
|
)
|
|
(1
|
)
|
|||
West
|
66.8
|
|
|
67.5
|
|
|
(0.7
|
)
|
|
(1
|
)
|
|||
Global Family Office
|
43.7
|
|
|
38.1
|
|
|
5.6
|
|
|
15
|
|
|||
Total Wealth Management Trust, Investment and Other Servicing Fees
|
$
|
319.4
|
|
|
$
|
318.3
|
|
|
$
|
1.1
|
|
|
—
|
%
|
Noninterest Income
|
Nine Months Ended September 30,
|
|
|
|
|
|||||||||
($ In Millions)
|
2015
|
|
2014
|
|
Change
|
|||||||||
Trust, Investment and Other Servicing Fees
|
$
|
2,233.4
|
|
|
$
|
2,104.6
|
|
|
$
|
128.8
|
|
|
6
|
%
|
Foreign Exchange Trading Income
|
209.3
|
|
|
149.4
|
|
|
59.9
|
|
|
40
|
|
|||
Treasury Management Fees
|
48.5
|
|
|
49.8
|
|
|
(1.3
|
)
|
|
(3
|
)
|
|||
Security Commissions and Trading Income
|
60.2
|
|
|
46.7
|
|
|
13.5
|
|
|
29
|
|
|||
Other Operating Income
|
214.1
|
|
|
112.3
|
|
|
101.8
|
|
|
91
|
|
|||
Investment Security Losses, net
|
(0.3
|
)
|
|
(3.3
|
)
|
|
3.0
|
|
|
(91
|
)
|
|||
Total Noninterest Income
|
$
|
2,765.2
|
|
|
$
|
2,459.5
|
|
|
$
|
305.7
|
|
|
12
|
%
|
C&IS Trust, Investment and Other Servicing Fees
|
Nine Months Ended September 30,
|
|
|
|
|
|||||||||
($ In Millions)
|
2015
|
|
2014
|
|
Change
|
|||||||||
Custody and Fund Administration
|
$
|
864.6
|
|
|
$
|
788.3
|
|
|
$
|
76.3
|
|
|
10
|
%
|
Investment Management
|
239.6
|
|
|
228.1
|
|
|
11.5
|
|
|
5
|
|
|||
Securities Lending
|
68.2
|
|
|
74.7
|
|
|
(6.5
|
)
|
|
(9
|
)
|
|||
Other
|
96.6
|
|
|
83.4
|
|
|
13.2
|
|
|
16
|
|
|||
Total
|
$
|
1,269.0
|
|
|
$
|
1,174.5
|
|
|
$
|
94.5
|
|
|
8
|
%
|
|
Nine Months Ended September 30,
|
|
|
|
|
|||||||||
($ In Millions)
|
2015
|
|
2014
|
|
Change
|
|||||||||
Wealth Management Trust, Investment and Other Servicing Fees
|
|
|
|
|
|
|
|
|||||||
Central
|
$
|
385.8
|
|
|
$
|
379.8
|
|
|
$
|
6.0
|
|
|
2
|
%
|
East
|
250.4
|
|
|
242.9
|
|
|
7.5
|
|
|
3
|
|
|||
West
|
202.1
|
|
|
194.9
|
|
|
7.2
|
|
|
4
|
|
|||
Global Family Office
|
126.1
|
|
|
112.5
|
|
|
13.6
|
|
|
12
|
|
|||
Total
|
$
|
964.4
|
|
|
$
|
930.1
|
|
|
$
|
34.3
|
|
|
4
|
%
|
Other Operating Income
|
Nine Months Ended September 30,
|
|
|
|
|
|||||||||
($ In Millions)
|
2015
|
|
2014
|
|
Change
|
|||||||||
Loan Service Fees
|
$
|
44.3
|
|
|
$
|
47.0
|
|
|
$
|
(2.7
|
)
|
|
(6
|
)%
|
Banking Service Fees
|
35.6
|
|
|
37.2
|
|
|
(1.6
|
)
|
|
(4
|
)
|
|||
Other Income
|
134.2
|
|
|
28.1
|
|
|
106.1
|
|
|
N/M
|
|
|||
Total Other Operating Income
|
$
|
214.1
|
|
|
$
|
112.3
|
|
|
$
|
101.8
|
|
|
91
|
%
|
Table 18: AVERAGE CONSOLIDATED BALANCE SHEETS WITH ANALYSIS OF NET INTEREST INCOME
(INTEREST AND RATE ON A FULLY TAXABLE EQUIVALENT BASIS)
|
NORTHERN TRUST CORPORATION
|
||||||||||||||||||||
Nine Months Ended September 30,
|
|||||||||||||||||||||
2015
|
|
2014
|
|||||||||||||||||||
($ In Millions)
|
Interest
|
|
Average
Balance
|
|
Rate (4)
|
|
Interest
|
|
Average
Balance
|
|
Rate (4)
|
||||||||||
Average Earning Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal Funds Sold and Securities Purchased under
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agreements to Resell
|
$
|
3.7
|
|
|
$
|
1,052.2
|
|
|
0.47
|
%
|
|
$
|
2.3
|
|
|
$
|
670.6
|
|
|
0.47
|
%
|
Interest-Bearing Due from and Deposits with Banks (1)
|
82.3
|
|
|
16,006.0
|
|
|
0.69
|
|
|
96.6
|
|
|
16,879.0
|
|
|
0.77
|
|
||||
Federal Reserve Deposits
|
26.8
|
|
|
14,065.9
|
|
|
0.25
|
|
|
26.9
|
|
|
13,967.6
|
|
|
0.26
|
|
||||
Securities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government
|
40.2
|
|
|
4,802.9
|
|
|
1.12
|
|
|
21.0
|
|
|
2,574.0
|
|
|
1.09
|
|
||||
Obligations of States and Political Subdivisions
|
5.7
|
|
|
112.3
|
|
|
6.77
|
|
|
8.8
|
|
|
176.4
|
|
|
6.68
|
|
||||
Government Sponsored Agency
|
106.6
|
|
|
16,509.5
|
|
|
0.86
|
|
|
108.3
|
|
|
17,858.3
|
|
|
0.81
|
|
||||
Other (2)
|
100.6
|
|
|
15,838.1
|
|
|
0.85
|
|
|
83.5
|
|
|
12,815.0
|
|
|
0.87
|
|
||||
Total Securities
|
253.1
|
|
|
37,262.8
|
|
|
0.91
|
|
|
221.6
|
|
|
33,423.7
|
|
|
0.89
|
|
||||
Loans and Leases (3)
|
546.1
|
|
|
32,723.6
|
|
|
2.23
|
|
|
558.0
|
|
|
29,832.9
|
|
|
2.50
|
|
||||
Total Earning Assets
|
912.0
|
|
|
101,110.5
|
|
|
1.21
|
|
|
905.4
|
|
|
94,773.8
|
|
|
1.28
|
|
||||
Allowance for Credit Losses Assigned to Loans and Leases
|
—
|
|
|
(260.6
|
)
|
|
—
|
|
|
—
|
|
|
(276.0
|
)
|
|
—
|
|
||||
Cash and Due from Banks
|
—
|
|
|
2,137.3
|
|
|
—
|
|
|
—
|
|
|
2,814.6
|
|
|
—
|
|
||||
Buildings and Equipment
|
—
|
|
|
443.0
|
|
|
—
|
|
|
—
|
|
|
451.3
|
|
|
—
|
|
||||
Client Security Settlement Receivables
|
—
|
|
|
979.1
|
|
|
—
|
|
|
—
|
|
|
835.1
|
|
|
—
|
|
||||
Goodwill
|
—
|
|
|
531.1
|
|
|
—
|
|
|
—
|
|
|
541.9
|
|
|
—
|
|
||||
Other Assets
|
—
|
|
|
4,777.9
|
|
|
—
|
|
|
—
|
|
|
3,815.1
|
|
|
—
|
|
||||
Total Assets
|
$
|
—
|
|
|
$
|
109,718.3
|
|
|
—
|
%
|
|
$
|
—
|
|
|
$
|
102,955.8
|
|
|
—
|
%
|
Average Source of Funds
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Savings and Money Market
|
$
|
7.3
|
|
|
$
|
15,410.9
|
|
|
0.06
|
%
|
|
$
|
7.3
|
|
|
$
|
14,854.9
|
|
|
0.07
|
%
|
Savings Certificates and Other Time
|
5.5
|
|
|
1,668.5
|
|
|
0.44
|
|
|
4.8
|
|
|
1,908.5
|
|
|
0.34
|
|
||||
Non-U.S. Offices — Interest-Bearing
|
40.2
|
|
|
48,943.0
|
|
|
0.11
|
|
|
52.0
|
|
|
48,101.2
|
|
|
0.14
|
|
||||
Total Interest-Bearing Deposits
|
53.0
|
|
|
66,022.4
|
|
|
0.11
|
|
|
64.1
|
|
|
64,864.6
|
|
|
0.13
|
|
||||
Short-Term Borrowings
|
3.9
|
|
|
4,485.5
|
|
|
0.12
|
|
|
3.8
|
|
|
4,544.5
|
|
|
0.11
|
|
||||
Senior Notes
|
35.2
|
|
|
1,497.1
|
|
|
3.14
|
|
|
42.8
|
|
|
1,716.5
|
|
|
3.34
|
|
||||
Long-Term Debt
|
18.8
|
|
|
1,441.4
|
|
|
1.75
|
|
|
29.0
|
|
|
1,668.9
|
|
|
2.32
|
|
||||
Floating Rate Capital Debt
|
1.7
|
|
|
277.3
|
|
|
0.84
|
|
|
1.7
|
|
|
277.2
|
|
|
0.81
|
|
||||
Total Interest-Related Funds
|
112.6
|
|
|
73,723.7
|
|
|
0.20
|
|
|
141.4
|
|
|
73,071.7
|
|
|
0.26
|
|
||||
Interest Rate Spread
|
—
|
|
|
—
|
|
|
1.01
|
|
|
—
|
|
|
—
|
|
|
1.02
|
|
||||
Demand and Other Noninterest-Bearing Deposits
|
—
|
|
|
23,956.8
|
|
|
—
|
|
|
—
|
|
|
18,857.0
|
|
|
—
|
|
||||
Other Liabilities
|
—
|
|
|
3,439.9
|
|
|
—
|
|
|
—
|
|
|
2,972.8
|
|
|
—
|
|
||||
Stockholders’ Equity
|
—
|
|
|
8,597.9
|
|
|
—
|
|
|
—
|
|
|
8,054.3
|
|
|
—
|
|
||||
Total Liabilities and Stockholders’ Equity
|
$
|
—
|
|
|
$
|
109,718.3
|
|
|
—
|
%
|
|
$
|
—
|
|
|
$
|
102,955.8
|
|
|
—
|
%
|
Net Interest Income/Margin (FTE Adjusted)
|
$
|
799.4
|
|
|
$
|
—
|
|
|
1.06
|
%
|
|
$
|
764.0
|
|
|
$
|
—
|
|
|
1.08
|
%
|
Net Interest Income/Margin (Unadjusted)
|
$
|
780.7
|
|
|
$
|
—
|
|
|
1.03
|
%
|
|
$
|
741.6
|
|
|
$
|
—
|
|
|
1.05
|
%
|
|
Nine Months ended September 30, 2015/2014
|
||||||||||
|
Change Due To
|
||||||||||
(In Millions)
|
Average
Balance
|
|
Rate
|
|
Total
|
||||||
Earning Assets (FTE)
|
$
|
58.2
|
|
|
$
|
(51.6
|
)
|
|
$
|
6.6
|
|
Interest-Related Funds
|
1.4
|
|
|
(30.2
|
)
|
|
(28.8
|
)
|
|||
Net Interest Income (FTE)
|
$
|
56.8
|
|
|
$
|
(21.4
|
)
|
|
$
|
35.4
|
|
(1)
|
Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets.
|
(2)
|
Other securities include certain community development investments and Federal Home Loan Bank and Federal Reserve stock, which are classified in other assets in the consolidated balance sheets as of
September 30, 2015
and
2014
.
|
(3)
|
Average balances include nonaccrual loans. Lease financing receivable balances are reduced by deferred income.
|
(4)
|
Rate calculations are based on actual balances rather than the rounded amounts presented in the Average Consolidated Balance Sheets with Analysis of Net Interest Income.
|
Notes:
|
Net Interest Income (FTE Adjusted) includes adjustments to a fully taxable equivalent basis for loans and securities. Such adjustments are based on a blended federal and state tax rate of 37.6% and 37.8% for the nine months ended
September 30, 2015
and
2014
, respectively. Total taxable equivalent interest adjustments amounted to $18.7 million and $22.5 million for the nine months ended
September 30, 2015
and
2014
, respectively.
|
Noninterest Expense
|
Nine Months Ended September 30,
|
|
|
|
|
|||||||||
($ In Millions)
|
2015
|
|
2014
|
|
Change
|
|||||||||
Compensation
|
$
|
1,077.8
|
|
|
$
|
1,062.2
|
|
|
$
|
15.6
|
|
|
1
|
%
|
Employee Benefits
|
215.9
|
|
|
206.0
|
|
|
9.9
|
|
|
5
|
|
|||
Outside Services
|
440.6
|
|
|
431.4
|
|
|
9.2
|
|
|
2
|
|
|||
Equipment and Software
|
338.3
|
|
|
317.9
|
|
|
20.4
|
|
|
6
|
|
|||
Occupancy
|
129.7
|
|
|
135.2
|
|
|
(5.5
|
)
|
|
(4
|
)
|
|||
Other Operating Expense
|
253.5
|
|
|
201.0
|
|
|
52.5
|
|
|
26
|
|
|||
Total Noninterest Expense
|
$
|
2,455.8
|
|
|
$
|
2,353.7
|
|
|
$
|
102.1
|
|
|
4
|
%
|
Other Operating Expense
|
Nine Months Ended September 30,
|
|
|
|
|
|||||||||
($ In Millions)
|
2015
|
|
2014
|
|
Change
|
|||||||||
Business Promotion
|
$
|
69.5
|
|
|
$
|
66.6
|
|
|
$
|
2.9
|
|
|
4
|
%
|
Staff Related
|
28.0
|
|
|
30.3
|
|
|
(2.3
|
)
|
|
(8
|
)
|
|||
FDIC Insurance Premiums
|
18.2
|
|
|
16.4
|
|
|
1.8
|
|
|
11
|
|
|||
Other Intangibles Amortization
|
8.8
|
|
|
14.7
|
|
|
(5.9
|
)
|
|
(40
|
)
|
|||
Other Expenses
|
129.0
|
|
|
73.0
|
|
|
56.0
|
|
|
77
|
|
|||
Total Other Operating Expense
|
$
|
253.5
|
|
|
$
|
201.0
|
|
|
$
|
52.5
|
|
|
26
|
%
|
Capital Ratios — Northern Trust Corporation
|
September 30, 2015
|
|
June 30, 2015
|
|
September 30, 2014
|
||||||||||||
Advanced
Approach
|
|
Standardized
Approach (a)
|
|
Advanced
Approach
|
|
Standardized
Approach (a)
|
|
Advanced
Approach
|
|
Standardized
Approach (a)
|
|||||||
Common Equity Tier 1
|
12.4
|
%
|
|
10.4
|
%
|
|
12.0
|
%
|
|
10.7
|
%
|
|
12.7
|
%
|
|
12.8
|
%
|
Tier 1
|
13.0
|
%
|
|
11.0
|
%
|
|
12.6
|
%
|
|
11.2
|
%
|
|
13.4
|
%
|
|
13.6
|
%
|
Total
|
14.8
|
%
|
|
12.8
|
%
|
|
14.4
|
%
|
|
13.2
|
%
|
|
15.3
|
%
|
|
16.0
|
%
|
Tier 1 Leverage
|
7.8
|
%
|
|
7.8
|
%
|
|
7.6
|
%
|
|
7.6
|
%
|
|
n/a
|
|
|
7.9
|
%
|
Supplementary Leverage (b)
|
6.4
|
%
|
|
n/a
|
|
|
6.3
|
%
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
Capital Ratios — The Northern Trust Company
|
September 30, 2015
|
|
June 30, 2015
|
|
September 30, 2014
|
||||||||||||
Advanced
Approach
|
|
Standardized
Approach (a)
|
|
Advanced
Approach
|
|
Standardized
Approach (a)
|
|
Advanced
Approach
|
|
Standardized
Approach (a)
|
|||||||
Common Equity Tier 1
|
12.0
|
%
|
|
9.9
|
%
|
|
11.6
|
%
|
|
10.1
|
%
|
|
11.7
|
%
|
|
11.6
|
%
|
Tier 1
|
12.0
|
%
|
|
9.9
|
%
|
|
11.6
|
%
|
|
10.1
|
%
|
|
11.7
|
%
|
|
11.6
|
%
|
Total
|
13.6
|
%
|
|
11.6
|
%
|
|
13.2
|
%
|
|
11.9
|
%
|
|
13.7
|
%
|
|
14.0
|
%
|
Tier 1 Leverage
|
7.0
|
%
|
|
7.0
|
%
|
|
6.8
|
%
|
|
6.8
|
%
|
|
n/a
|
|
|
6.8
|
%
|
Supplementary Leverage (b)
|
5.7
|
%
|
|
n/a
|
|
|
5.6
|
%
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
(a)
|
In 2014, Standardized Approach risk-weighted assets were determined by Basel I requirements. Effective with the first quarter of 2015, risk-weighted assets are calculated in accordance with the Basel III Standardized Approach final rules.
|
(b)
|
Beginning with the first quarter of 2015, advanced approaches banking organizations must calculate and report their supplementary leverage ratio.
Effective January 1, 2018, advanced approaches institutions, such as the Corporation, will be subject to a minimum supplementary leverage ratio of 3 percent.
|
($ In Millions)
|
September 30, 2015
|
|
June 30, 2015
|
|
September 30, 2014
|
||||||
Nonperforming Loans and Leases
|
|
|
|
|
|
||||||
Commercial
|
|
|
|
|
|
||||||
Commercial and Institutional
|
$
|
20.3
|
|
|
$
|
23.4
|
|
|
$
|
31.7
|
|
Commercial Real Estate
|
25.2
|
|
|
26.0
|
|
|
39.9
|
|
|||
Total Commercial
|
45.5
|
|
|
49.4
|
|
|
71.6
|
|
|||
Personal
|
|
|
|
|
|
||||||
Residential Real Estate
|
152.6
|
|
|
158.2
|
|
|
147.3
|
|
|||
Private Client
|
0.5
|
|
|
1.1
|
|
|
1.6
|
|
|||
Total Personal
|
153.1
|
|
|
159.3
|
|
|
148.9
|
|
|||
Total Nonperforming Loans and Leases
|
198.6
|
|
|
208.7
|
|
|
220.5
|
|
|||
Other Real Estate Owned
|
8.9
|
|
|
10.1
|
|
|
10.7
|
|
|||
Total Nonperforming Assets
|
207.5
|
|
|
218.8
|
|
|
231.2
|
|
|||
90 Day Past Due Loans Still Accruing
|
$
|
2.3
|
|
|
$
|
14.9
|
|
|
$
|
25.1
|
|
Nonperforming Loans and Leases to Total Loans and Leases
|
0.59
|
%
|
|
0.63
|
%
|
|
0.72
|
%
|
|||
Coverage of Loan and Lease Allowance to Nonperforming Loans and Leases
|
1.2x
|
|
|
1.2x
|
|
|
1.2x
|
|
|
September 30, 2015
|
|
June 30, 2015
|
|
September 30, 2014
|
|||||||||||||||
($ In Millions)
|
Allowance
Amount
|
|
Percent of
Loans to
Total
Loans
|
|
Allowance
Amount
|
|
Percent of
Loans to
Total
Loans
|
|
Allowance
Amount
|
|
Percent of
Loans to
Total
Loans
|
|||||||||
Specific Allowance
|
$
|
4.0
|
|
|
—
|
%
|
|
$
|
15.3
|
|
|
—
|
%
|
|
$
|
24.0
|
|
|
—
|
%
|
Allocated Inherent Allowance
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial and Institutional
|
66.1
|
|
|
28
|
|
|
66.7
|
|
|
27
|
|
|
71.9
|
|
|
27
|
|
|||
Commercial Real Estate
|
63.5
|
|
|
12
|
|
|
67.8
|
|
|
11
|
|
|
68.3
|
|
|
10
|
|
|||
Lease Financing, net
|
3.6
|
|
|
2
|
|
|
3.6
|
|
|
3
|
|
|
3.7
|
|
|
3
|
|
|||
Non-U.S.
|
2.3
|
|
|
4
|
|
|
2.2
|
|
|
5
|
|
|
2.1
|
|
|
5
|
|
|||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|||
Total Commercial
|
135.5
|
|
|
46
|
|
|
140.3
|
|
|
47
|
|
|
146.0
|
|
|
45
|
|
|||
Personal
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Residential Real Estate
|
95.9
|
|
|
27
|
|
|
99.2
|
|
|
28
|
|
|
110.4
|
|
|
32
|
|
|||
Private Client
|
19.3
|
|
|
27
|
|
|
19.4
|
|
|
25
|
|
|
17.9
|
|
|
23
|
|
|||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total Personal
|
115.2
|
|
|
54
|
|
|
118.6
|
|
|
53
|
|
|
128.3
|
|
|
55
|
|
|||
Total Allocated Inherent Allowance
|
$
|
250.7
|
|
|
100
|
%
|
|
$
|
258.9
|
|
|
100
|
%
|
|
$
|
274.3
|
|
|
100
|
%
|
Total Allowance for Credit Losses
|
$
|
254.7
|
|
|
|
|
$
|
274.2
|
|
|
|
|
$
|
298.3
|
|
|
|
|||
Allowance Assigned to
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Loans and Leases
|
$
|
242.2
|
|
|
|
|
$
|
257.3
|
|
|
|
|
$
|
269.4
|
|
|
|
|||
Undrawn Commitments and Standby Letters of Credit
|
12.5
|
|
|
|
|
16.9
|
|
|
|
|
28.9
|
|
|
|
||||||
Total Allowance for Credit Losses
|
$
|
254.7
|
|
|
|
|
$
|
274.2
|
|
|
|
|
$
|
298.3
|
|
|
|
|||
Allowance Assigned to Loans and Leases to Total Loans and Leases
|
0.73
|
%
|
|
|
|
0.78
|
%
|
|
|
|
0.88
|
%
|
|
|
($ In Millions)
|
Increase/(Decrease)
Estimated Impact on
Next Twelve Months of
Pre-Tax Earnings
|
||
Increase in Interest Rates Above Market-Implied Forward Rates
|
|
||
100 Basis Points
|
$
|
17
|
|
200 Basis Points
|
$
|
(2
|
)
|
($ In Millions)
|
Increase/(Decrease)
Estimated Impact on
Economic Value of Equity
|
||
Increase in Interest Rates Above Market Rates
|
|
||
100 Basis Points
|
$
|
(38
|
)
|
200 Basis Points
|
$
|
(286
|
)
|
|
Total VaR
(Spot and Forward)
|
|
Foreign Exchange Spot
VaR
|
|
Foreign Exchange
Forward VaR
|
||||||||||||||||||
($ In Millions)
|
September 30, 2015
|
|
June 30, 2015
|
|
September 30, 2015
|
|
June 30, 2015
|
|
September 30, 2015
|
|
June 30, 2015
|
||||||||||||
High
|
$
|
0.8
|
|
|
$
|
0.7
|
|
|
$
|
0.8
|
|
|
$
|
0.7
|
|
|
$
|
0.3
|
|
|
$
|
0.2
|
|
Low
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
||||||
Average
|
0.3
|
|
|
0.2
|
|
|
0.1
|
|
|
0.1
|
|
|
0.2
|
|
|
0.1
|
|
||||||
Quarter-End
|
0.6
|
|
|
0.3
|
|
|
0.2
|
|
|
0.2
|
|
|
0.1
|
|
|
0.2
|
|
|
Three Months Ended
|
||||||||||||||||||||||
|
September 30, 2015
|
|
September 30, 2014
|
||||||||||||||||||||
($ In Millions)
|
Reported
|
|
FTE Adj.
|
|
FTE
|
|
Reported
|
|
FTE Adj.
|
|
FTE
|
||||||||||||
Interest Income
|
$
|
305.7
|
|
|
$
|
6.1
|
|
|
$
|
311.8
|
|
|
$
|
293.8
|
|
|
$
|
6.9
|
|
|
$
|
300.7
|
|
Interest Expense
|
36.8
|
|
|
—
|
|
|
36.8
|
|
|
44.5
|
|
|
—
|
|
|
44.5
|
|
||||||
Net Interest Income
|
$
|
268.9
|
|
|
$
|
6.1
|
|
|
$
|
275.0
|
|
|
$
|
249.3
|
|
|
$
|
6.9
|
|
|
$
|
256.2
|
|
Net Interest Margin
|
1.06
|
%
|
|
|
|
1.08
|
%
|
|
1.02
|
%
|
|
|
|
1.05
|
%
|
|
Nine Months Ended
|
||||||||||||||||||||||
|
September 30, 2015
|
|
September 30, 2014
|
||||||||||||||||||||
($ In Millions)
|
Reported
|
|
FTE Adj.
|
|
FTE
|
|
Reported
|
|
FTE Adj.
|
|
FTE
|
||||||||||||
Interest Income
|
$
|
893.3
|
|
|
$
|
18.7
|
|
|
$
|
912.0
|
|
|
$
|
883.0
|
|
|
$
|
22.4
|
|
|
$
|
905.4
|
|
Interest Expense
|
112.6
|
|
|
—
|
|
|
112.6
|
|
|
141.4
|
|
|
—
|
|
|
141.4
|
|
||||||
Net Interest Income
|
$
|
780.7
|
|
|
$
|
18.7
|
|
|
$
|
799.4
|
|
|
$
|
741.6
|
|
|
$
|
22.4
|
|
|
$
|
764.0
|
|
Net Interest Margin
|
1.03
|
%
|
|
|
|
1.06
|
%
|
|
1.05
|
%
|
|
|
|
1.08
|
%
|
•
|
the health and soundness of the financial institutions and other counterparties with which Northern Trust conducts business;
|
•
|
financial market disruptions or economic recession, whether in the United States, Europe, the Middle East, Asia Pacific or other regions;
|
•
|
the downgrade of U.S. government-issued and other securities;
|
•
|
changes in financial markets, including debt and equity markets, that impact the value, liquidity, or credit ratings of financial assets in general, or financial assets in particular investment funds or client portfolios including those funds, portfolios, and other financial assets with respect to which Northern Trust has taken, or may in the future take, actions to provide asset value stability or additional liquidity;
|
•
|
the impact of stress in the financial markets, the effectiveness of governmental actions taken in response, and the effect of such governmental actions on Northern Trust, its competitors and counterparties, financial markets generally and availability of credit specifically, and the U.S. and international economies;
|
•
|
a significant downgrade of any of Northern Trust’s debt ratings;
|
•
|
changes in foreign exchange trading client volumes and volatility in foreign currency exchange rates, and Northern Trust’s success in assessing and mitigating the risks arising from such changes and volatility;
|
•
|
a decline in the value of securities held in Northern Trust’s investment portfolio, particularly asset-backed securities, the liquidity and pricing of which may be negatively impacted by periods of economic turmoil and financial market disruptions;
|
•
|
uncertainties inherent in the complex and subjective judgments required to assess credit risk and establish appropriate allowances therefor;
|
•
|
geopolitical risks and the risks of extraordinary events such as natural disasters, terrorist events and war, and the responses of the United States and other countries to those events;
|
•
|
the pace and extent of continued globalization of investment activity and growth in worldwide financial assets;
|
•
|
regulatory and monetary policy developments;
|
•
|
failure to satisfy regulatory standards or to obtain regulatory approvals when required, including for the use and distribution of capital;
|
•
|
changes in tax laws, accounting requirements or interpretations and other legislation in the United States or other countries that could affect Northern Trust or its clients;
|
•
|
changes in the nature and activities of Northern Trust’s competition;
|
•
|
Northern Trust’s success in maintaining existing business and continuing to generate new business in existing and targeted markets and its ability to deploy deposits in a profitable manner consistent with its liquidity requirements;
|
•
|
the impact of equity markets on fee revenue;
|
•
|
Northern Trust’s ability to address the complex needs of a global client base and manage compliance with legal, tax, regulatory and other requirements;
|
•
|
Northern Trust’s ability to maintain a product mix that achieves acceptable margins;
|
•
|
Northern Trust’s ability to continue to generate investment results that satisfy clients and to develop an array of investment products;
|
•
|
Northern Trust’s success in recruiting and retaining the necessary personnel to support business growth and expansion and maintain sufficient expertise to support increasingly complex products and services;
|
•
|
Northern Trust’s success in controlling expenses and implementing revenue enhancement initiatives;
|
•
|
uncertainties inherent in Northern Trust’s assumptions concerning its pension plan, including discount rates and expected contributions, returns and payouts;
|
•
|
Northern Trust’s ability to address operating risks, including those presented by human errors or omissions, data security breaches, pricing or valuation of securities, fraud, systems performance or defects, systems interruptions, and breakdowns in processes or internal controls;
|
•
|
Northern Trust’s success in improving risk management practices and controls and managing risks inherent in its businesses, including credit risk, operational risk, market and liquidity risk, fiduciary risk, compliance risk and strategic risk;
|
•
|
increased costs of compliance and other risks associated with changes in regulation, the current regulatory environment, and areas of increased regulatory emphasis and oversight in the United States and other countries such as anti-money laundering, anti-bribery, and client privacy;
|
•
|
the potential for substantial changes in the legal, regulatory and enforcement framework and oversight applicable to financial institutions, including changes that may affect leverage limits and risk-based capital and liquidity requirements, require financial institutions to pay higher assessments, expose financial institutions to certain liabilities of their subsidiary depository institutions, and restrict or increase the regulation of certain activities, including foreign exchange, carried on by financial institutions, including Northern Trust;
|
•
|
risks and uncertainties inherent in the litigation and regulatory process, including the adequacy of contingent liability, tax, and other accruals;
|
•
|
risks associated with being a holding company, including Northern Trust’s dependence on dividends from its principal subsidiary;
|
•
|
the risk of damage to Northern Trust’s reputation which may undermine the confidence of clients, counterparties, rating agencies, and stockholders; and
|
•
|
other factors identified elsewhere in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2014, including those factors described in Item 1A, “Risk Factors,” and other filings with the SEC, all of which are available on Northern Trust’s website.
|
CONSOLIDATED BALANCE SHEETS
|
NORTHERN TRUST CORPORATION
|
(In Millions Except Share Information)
|
September 30, 2015
|
|
December 31, 2014
|
||||
|
(Unaudited)
|
|
|
||||
Assets
|
|
|
|
||||
Cash and Due from Banks
|
$
|
4,485.9
|
|
|
$
|
3,050.6
|
|
Federal Funds Sold and Securities Purchased under Agreements to Resell
|
1,255.6
|
|
|
1,062.7
|
|
||
Interest-Bearing Deposits with Banks
|
13,935.0
|
|
|
14,928.3
|
|
||
Federal Reserve Deposits
|
22,252.0
|
|
|
17,386.3
|
|
||
Securities
|
|
|
|
||||
Available for Sale
|
31,091.7
|
|
|
29,558.5
|
|
||
Held to Maturity (Fair value of $5,832.6 and $4,176.1)
|
5,846.5
|
|
|
4,170.8
|
|
||
Trading Account
|
0.5
|
|
|
4.7
|
|
||
Total Securities
|
36,938.7
|
|
|
33,734.0
|
|
||
Loans and Leases
|
|
|
|
||||
Commercial
|
15,517.4
|
|
|
14,353.6
|
|
||
Personal
|
17,861.0
|
|
|
17,286.6
|
|
||
Total Loans and Leases (Net of unearned income of $246.4 and $287.7)
|
33,378.4
|
|
|
31,640.2
|
|
||
Allowance for Credit Losses Assigned to Loans and Leases
|
(242.2
|
)
|
|
(267.0
|
)
|
||
Buildings and Equipment
|
427.7
|
|
|
444.3
|
|
||
Client Security Settlement Receivables
|
1,918.4
|
|
|
1,568.8
|
|
||
Goodwill
|
529.7
|
|
|
533.2
|
|
||
Other Assets
|
5,116.0
|
|
|
5,865.1
|
|
||
Total Assets
|
$
|
119,995.2
|
|
|
$
|
109,946.5
|
|
Liabilities
|
|
|
|
||||
Deposits
|
|
|
|
||||
Demand and Other Noninterest-Bearing
|
$
|
23,667.6
|
|
|
$
|
22,815.0
|
|
Savings and Money Market
|
15,153.5
|
|
|
15,916.4
|
|
||
Savings Certificates and Other Time
|
1,457.1
|
|
|
1,757.4
|
|
||
Non U.S. Offices — Noninterest-Bearing
|
5,833.9
|
|
|
2,723.2
|
|
||
— Interest-Bearing
|
53,823.8
|
|
|
47,545.0
|
|
||
Total Deposits
|
99,935.9
|
|
|
90,757.0
|
|
||
Federal Funds Purchased
|
343.5
|
|
|
932.9
|
|
||
Securities Sold Under Agreements to Repurchase
|
484.5
|
|
|
885.1
|
|
||
Other Borrowings
|
4,080.6
|
|
|
1,685.2
|
|
||
Senior Notes
|
1,497.3
|
|
|
1,497.0
|
|
||
Long-Term Debt
|
1,394.3
|
|
|
1,615.1
|
|
||
Floating Rate Capital Debt
|
277.3
|
|
|
277.2
|
|
||
Other Liabilities
|
3,197.3
|
|
|
3,848.1
|
|
||
Total Liabilities
|
111,210.7
|
|
|
101,497.6
|
|
||
Stockholders’ Equity
|
|
|
|
||||
Preferred Stock, No Par Value; Authorized 10,000,000 shares:
|
|
|
|
||||
Series C, outstanding shares of 16,000
|
388.5
|
|
|
388.5
|
|
||
Common Stock, $1.66 2/3 Par Value; Authorized 560,000,000 shares;
|
|
|
|
||||
Outstanding shares of 231,220,304 and 233,390,705
|
408.6
|
|
|
408.6
|
|
||
Additional Paid-In Capital
|
1,058.7
|
|
|
1,050.9
|
|
||
Retained Earnings
|
8,093.7
|
|
|
7,625.4
|
|
||
Accumulated Other Comprehensive Loss
|
(273.7
|
)
|
|
(319.7
|
)
|
||
Treasury Stock (13,951,220 and 11,780,819 shares, at cost)
|
(891.3
|
)
|
|
(704.8
|
)
|
||
Total Stockholders’ Equity
|
8,784.5
|
|
|
8,448.9
|
|
||
Total Liabilities and Stockholders’ Equity
|
$
|
119,995.2
|
|
|
$
|
109,946.5
|
|
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
|
NORTHERN TRUST CORPORATION
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In Millions Except Share Information)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Noninterest Income
|
|
|
|
|
|
|
|
||||||||
Trust, Investment and Other Servicing Fees
|
$
|
749.1
|
|
|
$
|
718.2
|
|
|
$
|
2,233.4
|
|
|
$
|
2,104.6
|
|
Foreign Exchange Trading Income
|
62.9
|
|
|
46.4
|
|
|
209.3
|
|
|
149.4
|
|
||||
Treasury Management Fees
|
16.1
|
|
|
16.4
|
|
|
48.5
|
|
|
49.8
|
|
||||
Security Commissions and Trading Income
|
20.4
|
|
|
14.2
|
|
|
60.2
|
|
|
46.7
|
|
||||
Other Operating Income
|
38.1
|
|
|
34.1
|
|
|
214.1
|
|
|
112.3
|
|
||||
Investment Security Gains (Losses), net (Note)
|
—
|
|
|
0.3
|
|
|
(0.3
|
)
|
|
(3.3
|
)
|
||||
Total Noninterest Income
|
886.6
|
|
|
829.6
|
|
|
2,765.2
|
|
|
2,459.5
|
|
||||
Net Interest Income
|
|
|
|
|
|
|
|
||||||||
Interest Income
|
305.7
|
|
|
293.8
|
|
|
893.3
|
|
|
883.0
|
|
||||
Interest Expense
|
36.8
|
|
|
44.5
|
|
|
112.6
|
|
|
141.4
|
|
||||
Net Interest Income
|
268.9
|
|
|
249.3
|
|
|
780.7
|
|
|
741.6
|
|
||||
Provision for Credit Losses
|
(10.0
|
)
|
|
—
|
|
|
(24.5
|
)
|
|
3.0
|
|
||||
Net Interest Income after Provision for Credit Losses
|
278.9
|
|
|
249.3
|
|
|
805.2
|
|
|
738.6
|
|
||||
Noninterest Expense
|
|
|
|
|
|
|
|
||||||||
Compensation
|
361.6
|
|
|
348.0
|
|
|
1,077.8
|
|
|
1,062.2
|
|
||||
Employee Benefits
|
69.8
|
|
|
70.6
|
|
|
215.9
|
|
|
206.0
|
|
||||
Outside Services
|
158.3
|
|
|
142.4
|
|
|
440.6
|
|
|
431.4
|
|
||||
Equipment and Software
|
113.6
|
|
|
100.5
|
|
|
338.3
|
|
|
317.9
|
|
||||
Occupancy
|
43.7
|
|
|
43.8
|
|
|
129.7
|
|
|
135.2
|
|
||||
Other Operating Expense
|
65.3
|
|
|
69.4
|
|
|
253.5
|
|
|
201.0
|
|
||||
Total Noninterest Expense
|
812.3
|
|
|
774.7
|
|
|
2,455.8
|
|
|
2,353.7
|
|
||||
Income before Income Taxes
|
353.2
|
|
|
304.2
|
|
|
1,114.6
|
|
|
844.4
|
|
||||
Provision for Income Taxes
|
118.6
|
|
|
99.7
|
|
|
380.1
|
|
|
276.6
|
|
||||
Net Income
|
$
|
234.6
|
|
|
$
|
204.5
|
|
|
$
|
734.5
|
|
|
$
|
567.8
|
|
Preferred Stock Dividends
|
5.8
|
|
|
—
|
|
|
17.5
|
|
|
—
|
|
||||
Net Income Applicable to Common Stock
|
$
|
228.8
|
|
|
$
|
204.5
|
|
|
$
|
717.0
|
|
|
$
|
567.8
|
|
Per Common Share
|
|
|
|
|
|
|
|
||||||||
Net Income — Basic
|
$
|
0.97
|
|
|
$
|
0.85
|
|
|
$
|
3.03
|
|
|
$
|
2.36
|
|
— Diluted
|
0.96
|
|
|
0.84
|
|
|
3.00
|
|
|
2.34
|
|
||||
Average Number of Common Shares Outstanding
— Basic
|
232,231,720
|
|
|
235,701,076
|
|
|
232,916,425
|
|
|
236,301,789
|
|
||||
— Diluted
|
234,163,190
|
|
|
237,737,129
|
|
|
234,890,782
|
|
|
238,175,696
|
|
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (UNAUDITED) |
NORTHERN TRUST CORPORATION
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In Millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Net Income
|
$
|
234.6
|
|
|
$
|
204.5
|
|
|
$
|
734.5
|
|
|
$
|
567.8
|
|
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications)
|
|
|
|
|
|
|
|
||||||||
Net Unrealized Gains (Losses) on Securities Available for Sale
|
(7.0
|
)
|
|
(5.7
|
)
|
|
24.7
|
|
|
32.3
|
|
||||
Net Unrealized Gains (Losses) on Cash Flow Hedges
|
3.2
|
|
|
(7.4
|
)
|
|
5.3
|
|
|
(6.4
|
)
|
||||
Foreign Currency Translation Adjustments
|
(2.3
|
)
|
|
(3.6
|
)
|
|
(2.4
|
)
|
|
(10.5
|
)
|
||||
Pension and Other Postretirement Benefit Adjustments
|
6.1
|
|
|
3.5
|
|
|
18.4
|
|
|
10.5
|
|
||||
Other Comprehensive Income (Loss)
|
—
|
|
|
(13.2
|
)
|
|
46.0
|
|
|
25.9
|
|
||||
Comprehensive Income
|
$
|
234.6
|
|
|
$
|
191.3
|
|
|
$
|
780.5
|
|
|
$
|
593.7
|
|
Note: Changes in Other-Than-Temporary-Impairment (OTTI) Losses
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(4.6
|
)
|
Noncredit-related OTTI Losses Recorded in/(Reclassified from) OCI
|
—
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
||||
Other Security Gains (Losses), net
|
—
|
|
|
0.3
|
|
|
(0.3
|
)
|
|
0.6
|
|
||||
Investment Security Gains (Losses), net
|
$
|
—
|
|
|
$
|
0.3
|
|
|
$
|
(0.3
|
)
|
|
$
|
(3.3
|
)
|
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(UNAUDITED)
|
NORTHERN TRUST CORPORATION
|
|
Nine Months Ended
September 30, |
||||||
(In Millions)
|
2015
|
|
2014
|
||||
Preferred Stock
|
|
|
|
||||
Balance at January 1 and September 30
|
$
|
388.5
|
|
|
$
|
—
|
|
Issuance of Preferred Stock, Series C
|
—
|
|
|
388.5
|
|
||
Balance at September 30
|
388.5
|
|
|
388.5
|
|
||
Common Stock
|
|
|
|
||||
Balance at January 1 and September 30
|
408.6
|
|
|
408.6
|
|
||
Additional Paid-in Capital
|
|
|
|
||||
Balance at January 1
|
1,050.9
|
|
|
1,035.7
|
|
||
Treasury Stock Transactions — Stock Options and Awards
|
(69.7
|
)
|
|
(55.0
|
)
|
||
Stock Options and Awards — Amortization
|
59.9
|
|
|
60.4
|
|
||
Stock Options and Awards — Tax Benefits
|
17.6
|
|
|
14.4
|
|
||
Balance at September 30
|
1,058.7
|
|
|
1,055.5
|
|
||
Retained Earnings
|
|
|
|
||||
Balance at January 1
|
7,625.4
|
|
|
7,134.8
|
|
||
Net Income
|
734.5
|
|
|
567.8
|
|
||
Dividends Declared — Common Stock
|
(248.7
|
)
|
|
(233.2
|
)
|
||
Dividends Declared — Preferred Stock
|
(17.5
|
)
|
|
—
|
|
||
Balance at September 30
|
8,093.7
|
|
|
7,469.4
|
|
||
Accumulated Other Comprehensive Income (Loss)
|
|
|
|
||||
Balance at January 1
|
(319.7
|
)
|
|
(244.3
|
)
|
||
Net Unrealized Gains on Securities Available for Sale
|
24.7
|
|
|
32.3
|
|
||
Net Unrealized Gains (Losses) on Cash Flow Hedges
|
5.3
|
|
|
(6.4
|
)
|
||
Foreign Currency Translation Adjustments
|
(2.4
|
)
|
|
(10.5
|
)
|
||
Pension and Other Postretirement Benefit Adjustments
|
18.4
|
|
|
10.5
|
|
||
Balance at September 30
|
(273.7
|
)
|
|
(218.4
|
)
|
||
Treasury Stock
|
|
|
|
||||
Balance at January 1
|
(704.8
|
)
|
|
(422.8
|
)
|
||
Stock Options and Awards
|
157.9
|
|
|
177.0
|
|
||
Stock Purchased
|
(344.4
|
)
|
|
(315.2
|
)
|
||
Balance at September 30
|
(891.3
|
)
|
|
(561.0
|
)
|
||
Total Stockholders’ Equity at September 30
|
$
|
8,784.5
|
|
|
$
|
8,542.6
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
NORTHERN TRUST CORPORATION
|
|
Nine Months Ended
September 30, |
||||||
(In Millions)
|
2015
|
|
2014
|
||||
Cash Flows from Operating Activities:
|
|
|
|
||||
Net Income
|
$
|
734.5
|
|
|
$
|
567.8
|
|
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
|
|
|
|
||||
Investment Security Losses, net
|
0.3
|
|
|
3.3
|
|
||
Amortization and Accretion of Securities and Unearned Income, net
|
43.0
|
|
|
30.1
|
|
||
Provision for Credit Losses
|
(24.5
|
)
|
|
3.0
|
|
||
Depreciation on Buildings and Equipment
|
67.4
|
|
|
68.0
|
|
||
Amortization of Computer Software
|
185.9
|
|
|
167.9
|
|
||
Amortization of Intangibles
|
8.8
|
|
|
14.7
|
|
||
Pension Plan Contributions
|
(16.5
|
)
|
|
(13.9
|
)
|
||
Change in Receivables
|
(13.3
|
)
|
|
42.1
|
|
||
Change in Interest Payable
|
(5.9
|
)
|
|
(2.9
|
)
|
||
Change in Collateral With Derivative Counterparties, net
|
(165.7
|
)
|
|
163.1
|
|
||
Other Operating Activities, net
|
(330.2
|
)
|
|
230.3
|
|
||
Net Cash Provided by Operating Activities
|
483.8
|
|
|
1,273.5
|
|
||
Cash Flows from Investing Activities:
|
|
|
|
||||
Net Change in Federal Funds Sold and Securities Purchased under Agreements to Resell
|
(192.9
|
)
|
|
(480.4
|
)
|
||
Change in Interest-Bearing Deposits with Banks
|
238.7
|
|
|
3,498.1
|
|
||
Net Change in Federal Reserve Deposits
|
(4,865.7
|
)
|
|
(8,416.5
|
)
|
||
Purchases of Securities — Held to Maturity
|
(7,216.7
|
)
|
|
(5,596.9
|
)
|
||
Proceeds from Maturity and Redemption of Securities — Held to Maturity
|
5,288.3
|
|
|
3,505.4
|
|
||
Purchases of Securities — Available for Sale
|
(7,633.7
|
)
|
|
(8,969.2
|
)
|
||
Proceeds from Sale, Maturity and Redemption of Securities — Available for Sale
|
6,103.4
|
|
|
9,254.9
|
|
||
Change in Loans and Leases
|
(1,764.9
|
)
|
|
(1,352.0
|
)
|
||
Purchases of Buildings and Equipment
|
(55.3
|
)
|
|
(51.0
|
)
|
||
Purchases and Development of Computer Software
|
(229.0
|
)
|
|
(235.2
|
)
|
||
Change in Client Security Settlement Receivables
|
(364.2
|
)
|
|
(181.8
|
)
|
||
Other Investing Activities, net
|
181.4
|
|
|
(41.3
|
)
|
||
Net Cash Used in Investing Activities
|
(10,510.6
|
)
|
|
(9,065.9
|
)
|
||
Cash Flows from Financing Activities:
|
|
|
|
||||
Change in Deposits
|
10,940.6
|
|
|
8,556.6
|
|
||
Change in Federal Funds Purchased
|
(589.4
|
)
|
|
(178.7
|
)
|
||
Change in Securities Sold under Agreements to Repurchase
|
(400.6
|
)
|
|
(50.5
|
)
|
||
Change in Short-Term Other Borrowings
|
2,346.1
|
|
|
33.4
|
|
||
Repayments of Senior Notes and Long-Term Debt
|
(229.5
|
)
|
|
(638.7
|
)
|
||
Contingent Consideration Liability Payment
|
—
|
|
|
(55.3
|
)
|
||
Proceeds from Issuance of Preferred Stock - Series C
|
—
|
|
|
388.5
|
|
||
Treasury Stock Purchased
|
(344.4
|
)
|
|
(315.2
|
)
|
||
Net Proceeds from Stock Options
|
88.2
|
|
|
122.0
|
|
||
Cash Dividends Paid on Common Stock
|
(237.8
|
)
|
|
(225.4
|
)
|
||
Cash Dividends Paid on Preferred Stock
|
(21.2
|
)
|
|
—
|
|
||
Other Financing Activities, net
|
17.4
|
|
|
(145.6
|
)
|
||
Net Cash Provided by Financing Activities
|
11,569.4
|
|
|
7,491.1
|
|
||
Effect of Foreign Currency Exchange Rates on Cash
|
(107.3
|
)
|
|
57.8
|
|
||
Increase in Cash and Due from Banks
|
1,435.3
|
|
|
(243.5
|
)
|
||
Cash and Due from Banks at Beginning of Year
|
3,050.6
|
|
|
3,162.4
|
|
||
Cash and Due from Banks at End of Period
|
$
|
4,485.9
|
|
|
$
|
2,918.9
|
|
Supplemental Disclosures of Cash Flow Information:
|
|
|
|
||||
Interest Paid
|
$
|
120.0
|
|
|
$
|
146.4
|
|
Income Taxes Paid
|
526.9
|
|
|
159.7
|
|
||
Transfers from Loans to OREO
|
10.4
|
|
|
10.0
|
|
Financial Instrument
|
Fair Value
|
|
Valuation
Technique
|
|
Unobservable Inputs
|
|
Range of Lives
and Rates
|
|||||
Auction Rate Securities
|
$
|
16.2
|
million
|
|
Discounted Cash Flow
|
|
Remaining lives
|
|
0.67
|
|
—
|
8.64 years
|
|
|
|
|
Discount rates
|
|
0.01
|
%
|
—
|
8.48%
|
|||
Swap Related to Sale of Certain Visa Class B Common Shares
|
$
|
10.9
|
million
|
|
Discounted Cash Flow
|
|
Visa Class A Appreciation
|
|
9.5
|
%
|
—
|
15.0%
|
|
|
|
Conversion Rate
|
|
1.61x
|
|
—
|
1.65x
|
||||
|
|
|
|
Expected Conversion Rate
|
|
1.75
|
|
—
|
5.00 years
|
(In Millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting
|
|
Assets/Liabilities
at Fair Value
|
||||||||||
September 30, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities
|
|
|
|
|
|
|
|
|
|
||||||||||
Available for Sale
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government
|
$
|
5,125.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,125.1
|
|
Obligations of States and Political Subdivisions
|
—
|
|
|
4.5
|
|
|
—
|
|
|
—
|
|
|
4.5
|
|
|||||
Government Sponsored Agency
|
—
|
|
|
15,705.9
|
|
|
—
|
|
|
—
|
|
|
15,705.9
|
|
|||||
Non-U.S. Government
|
—
|
|
|
311.0
|
|
|
—
|
|
|
—
|
|
|
311.0
|
|
|||||
Corporate Debt
|
—
|
|
|
3,794.6
|
|
|
—
|
|
|
—
|
|
|
3,794.6
|
|
|||||
Covered Bonds
|
—
|
|
|
2,073.5
|
|
|
—
|
|
|
—
|
|
|
2,073.5
|
|
|||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
—
|
|
|
836.1
|
|
|
—
|
|
|
—
|
|
|
836.1
|
|
|||||
Other Asset-Backed
|
—
|
|
|
2,815.7
|
|
|
—
|
|
|
—
|
|
|
2,815.7
|
|
|||||
Auction Rate
|
—
|
|
|
—
|
|
|
16.2
|
|
|
—
|
|
|
16.2
|
|
|||||
Commercial Mortgage-Backed
|
—
|
|
|
299.4
|
|
|
—
|
|
|
—
|
|
|
299.4
|
|
|||||
Other
|
—
|
|
|
109.7
|
|
|
—
|
|
|
—
|
|
|
109.7
|
|
|||||
Total Available for Sale
|
5,125.1
|
|
|
25,950.4
|
|
|
16.2
|
|
|
—
|
|
|
31,091.7
|
|
|||||
Trading Account
|
—
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|||||
Total Available for Sale and Trading Securities
|
5,125.1
|
|
|
25,950.9
|
|
|
16.2
|
|
|
—
|
|
|
31,092.2
|
|
|||||
Other Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
—
|
|
|
2,818.3
|
|
|
—
|
|
|
—
|
|
|
2,818.3
|
|
|||||
Interest Rate Contracts
|
—
|
|
|
282.8
|
|
|
—
|
|
|
—
|
|
|
282.8
|
|
|||||
Total Derivative Assets
|
—
|
|
|
3,101.1
|
|
|
—
|
|
|
(1,167.0
|
)
|
|
1,934.1
|
|
|||||
Other Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
—
|
|
|
2,774.6
|
|
|
—
|
|
|
—
|
|
|
2,774.6
|
|
|||||
Interest Rate Contracts
|
—
|
|
|
165.5
|
|
|
—
|
|
|
—
|
|
|
165.5
|
|
|||||
Other Financial Derivatives (1)
|
—
|
|
|
—
|
|
|
10.9
|
|
|
—
|
|
|
10.9
|
|
|||||
Total Derivative Liabilities
|
$
|
—
|
|
|
$
|
2,940.1
|
|
|
$
|
10.9
|
|
|
$
|
(2,261.3
|
)
|
|
$
|
689.7
|
|
(1)
|
This line includes a swap related to the sale of certain Visa Class B common shares.
|
(In Millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting
|
|
Assets/Liabilities
at Fair Value
|
||||||||||
December 31, 2014
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities
|
|
|
|
|
|
|
|
|
|
||||||||||
Available for Sale
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government
|
$
|
4,506.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,506.9
|
|
Obligations of States and Political Subdivisions
|
—
|
|
|
4.6
|
|
|
—
|
|
|
—
|
|
|
4.6
|
|
|||||
Government Sponsored Agency
|
—
|
|
|
16,389.2
|
|
|
—
|
|
|
—
|
|
|
16,389.2
|
|
|||||
Non-U.S. Government
|
—
|
|
|
310.4
|
|
|
—
|
|
|
—
|
|
|
310.4
|
|
|||||
Corporate Debt
|
—
|
|
|
3,577.7
|
|
|
—
|
|
|
—
|
|
|
3,577.7
|
|
|||||
Covered Bonds
|
—
|
|
|
1,907.5
|
|
|
—
|
|
|
—
|
|
|
1,907.5
|
|
|||||
Supranational and Non-U.S. Agency Bonds
|
—
|
|
|
360.6
|
|
|
—
|
|
|
—
|
|
|
360.6
|
|
|||||
Residential Mortgage-Backed
|
—
|
|
|
6.4
|
|
|
—
|
|
|
—
|
|
|
6.4
|
|
|||||
Other Asset-Backed
|
—
|
|
|
2,321.3
|
|
|
—
|
|
|
—
|
|
|
2,321.3
|
|
|||||
Auction Rate
|
—
|
|
|
—
|
|
|
18.1
|
|
|
—
|
|
|
18.1
|
|
|||||
Other
|
—
|
|
|
155.8
|
|
|
—
|
|
|
—
|
|
|
155.8
|
|
|||||
Total Available for Sale
|
4,506.9
|
|
|
25,033.5
|
|
|
18.1
|
|
|
—
|
|
|
29,558.5
|
|
|||||
Trading Account
|
—
|
|
|
4.7
|
|
|
—
|
|
|
—
|
|
|
4.7
|
|
|||||
Total Available for Sale and Trading Securities
|
4,506.9
|
|
|
25,038.2
|
|
|
18.1
|
|
|
—
|
|
|
29,563.2
|
|
|||||
Other Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
—
|
|
|
4,275.2
|
|
|
—
|
|
|
—
|
|
|
4,275.2
|
|
|||||
Interest Rate Contracts
|
—
|
|
|
232.3
|
|
|
—
|
|
|
—
|
|
|
232.3
|
|
|||||
Total Derivative Assets
|
—
|
|
|
4,507.5
|
|
|
—
|
|
|
(2,257.1
|
)
|
|
2,250.4
|
|
|||||
Other Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
—
|
|
|
4,095.5
|
|
|
—
|
|
|
—
|
|
|
4,095.5
|
|
|||||
Interest Rate Contracts
|
—
|
|
|
131.8
|
|
|
—
|
|
|
—
|
|
|
131.8
|
|
|||||
Total Derivative Liabilities
|
$
|
—
|
|
|
$
|
4,227.3
|
|
|
$
|
—
|
|
|
$
|
(3,173.3
|
)
|
|
$
|
1,054.0
|
|
Level 3 Assets
(In Millions)
|
Auction Rate Securities
|
||||||
Three Months Ended September 30,
|
2015
|
|
2014
|
||||
Fair Value at July 1
|
$
|
16.6
|
|
|
$
|
98.8
|
|
Total Gains (Losses):
|
|
|
|
||||
Included in Earnings
|
—
|
|
|
0.7
|
|
||
Included in Other Comprehensive Income (2)
|
(0.4
|
)
|
|
0.1
|
|
||
Purchases, Issues, Sales, and Settlements
|
|
|
|
||||
Sales
|
—
|
|
|
(14.4
|
)
|
||
Settlements
|
—
|
|
|
—
|
|
||
Fair Value at September 30
|
$
|
16.2
|
|
|
$
|
85.2
|
|
Nine Months Ended September 30,
|
2015
|
|
2014
|
||||
Fair Value at January 1
|
$
|
18.1
|
|
|
$
|
98.9
|
|
Total Gains (Losses):
|
|
|
|
||||
Included in Earnings (1)
|
—
|
|
|
0.7
|
|
||
Included in Other Comprehensive Income (2)
|
(0.2
|
)
|
|
0.4
|
|
||
Purchases, Issues, Sales, and Settlements
|
|
|
|
||||
Sales
|
(1.2
|
)
|
|
(14.4
|
)
|
||
Settlements
|
(0.5
|
)
|
|
(0.4
|
)
|
||
Fair Value at September 30
|
$
|
16.2
|
|
|
$
|
85.2
|
|
(1)
|
Realized gains for the
nine
-month period ended
September 30, 2014
of
$0.7 million
represent gains from redemptions by issues. Gains on sales are recorded in investment security gains (losses) and gains on redemptions are recorded in interest income, within the consolidated statements of income.
|
(2)
|
Unrealized gains (losses) are included in net unrealized gains (losses) on securities available for sale in the consolidated statements of comprehensive income.
|
Level 3 Liabilities
(In Millions)
|
Contingent
Consideration
|
|
Swap Related to Sale of
Certain Visa Class B
Common Shares
|
||||||||||||
Three Months Ended September 30,
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Fair Value at July 1
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11.3
|
|
|
$
|
—
|
|
Total (Gains) Losses:
|
|
|
|
|
|
|
|
||||||||
Included in Earnings (1)
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
||||
Included in Other Comprehensive Income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Purchases, Issues, Sales, and Settlements
|
|
|
|
|
|
|
|
||||||||
Purchases
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Settlements
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
|
—
|
|
||||
Fair Value at September 30
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10.9
|
|
|
$
|
—
|
|
Nine Months Ended September 30,
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Fair Value at January 1
|
$
|
—
|
|
|
$
|
55.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total (Gains) Losses:
|
|
|
|
|
|
|
|
||||||||
Included in Earnings (1)
|
—
|
|
|
(0.1
|
)
|
|
11.5
|
|
|
—
|
|
||||
Included in Other Comprehensive Income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Purchases, Issues, Sales, and Settlements
|
|
|
|
|
|
|
|
||||||||
Purchases
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Settlements
|
—
|
|
|
(55.3
|
)
|
|
(0.6
|
)
|
|
—
|
|
||||
Fair Value at September 30
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10.9
|
|
|
$
|
—
|
|
(1)
|
(Gains) losses are recorded in other operating income (expense) in the consolidated statements of income.
|
Financial Instrument
|
|
Fair Value
|
|
Valuation
Technique
|
|
Unobservable Input
|
|
Range of Discounts
Applied
|
|||
Loans
|
|
$10.9 million
|
|
Market Approach
|
|
Discount to reflect realizable value
|
|
15
|
%
|
-
|
25%
|
OREO
|
|
$0.3 million
|
|
Market Approach
|
|
Discount to reflect realizable value
|
|
15
|
%
|
-
|
20%
|
(In Millions)
|
September 30, 2015
|
||||||||||||||||||
|
Book
Value
|
|
Total
Fair Value
|
|
Fair Value
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||||
Assets
|
|
|
|
|
|
||||||||||||||
Cash and Due from Banks
|
$
|
4,485.9
|
|
|
$
|
4,485.9
|
|
|
$
|
4,485.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Federal Funds Sold and Resell Agreements
|
1,255.6
|
|
|
1,255.6
|
|
|
—
|
|
|
1,255.6
|
|
|
—
|
|
|||||
Interest-Bearing Deposits with Banks
|
13,935.0
|
|
|
13,935.0
|
|
|
—
|
|
|
13,935.0
|
|
|
—
|
|
|||||
Federal Reserve Deposits
|
22,252.0
|
|
|
22,252.0
|
|
|
—
|
|
|
22,252.0
|
|
|
—
|
|
|||||
Securities
|
|
|
|
|
|
||||||||||||||
Available for Sale (1)
|
31,091.7
|
|
|
31,091.7
|
|
|
5,125.1
|
|
|
25,950.4
|
|
|
16.2
|
|
|||||
Held to Maturity
|
5,846.5
|
|
|
5,832.6
|
|
|
—
|
|
|
5,832.6
|
|
|
—
|
|
|||||
Trading Account
|
0.5
|
|
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|||||
Loans (excluding Leases)
|
|
|
|
|
|
||||||||||||||
Held for Investment
|
31,997.3
|
|
|
32,245.0
|
|
|
—
|
|
|
—
|
|
|
32,245.0
|
|
|||||
Held for Sale
|
335.3
|
|
|
335.3
|
|
|
—
|
|
|
—
|
|
|
335.3
|
|
|||||
Client Security Settlement Receivables
|
1,918.4
|
|
|
1,918.4
|
|
|
—
|
|
|
1,918.4
|
|
|
—
|
|
|||||
Other Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal Reserve and Federal Home Loan Bank Stock
|
253.1
|
|
|
253.1
|
|
|
—
|
|
|
253.1
|
|
|
—
|
|
|||||
Community Development Investments
|
176.5
|
|
|
178.7
|
|
|
—
|
|
|
178.7
|
|
|
—
|
|
|||||
Employee Benefit and Deferred Compensation
|
155.5
|
|
|
154.3
|
|
|
106.2
|
|
|
48.1
|
|
|
—
|
|
|||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
|
|
|
|
||||||||||||||
Demand, Noninterest-Bearing, Savings and Money Market
|
$
|
44,655.0
|
|
|
$
|
44,655.0
|
|
|
$
|
44,655.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Savings Certificates and Other Time
|
1,457.1
|
|
|
1,469.3
|
|
|
—
|
|
|
1,469.3
|
|
|
—
|
|
|||||
Non U.S. Offices Interest-Bearing
|
53,823.8
|
|
|
53,823.8
|
|
|
—
|
|
|
53,823.8
|
|
|
—
|
|
|||||
Federal Funds Purchased
|
343.5
|
|
|
343.5
|
|
|
—
|
|
|
343.5
|
|
|
—
|
|
|||||
Securities Sold under Agreements to Repurchase
|
484.5
|
|
|
484.5
|
|
|
—
|
|
|
484.5
|
|
|
—
|
|
|||||
Other Borrowings
|
4,080.6
|
|
|
4,085.4
|
|
|
—
|
|
|
4,085.4
|
|
|
—
|
|
|||||
Senior Notes
|
1,497.3
|
|
|
1,544.5
|
|
|
—
|
|
|
1,544.5
|
|
|
—
|
|
|||||
Long Term Debt (excluding Leases)
|
|
|
|
|
|
|
|
|
|
||||||||||
Subordinated Debt
|
1,363.2
|
|
|
1,342.9
|
|
|
—
|
|
|
1,342.9
|
|
|
—
|
|
|||||
Floating Rate Capital Debt
|
277.3
|
|
|
238.4
|
|
|
—
|
|
|
238.4
|
|
|
—
|
|
|||||
Other Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Standby Letters of Credit
|
38.1
|
|
|
38.1
|
|
|
—
|
|
|
—
|
|
|
38.1
|
|
|||||
Loan Commitments
|
24.6
|
|
|
24.6
|
|
|
—
|
|
|
—
|
|
|
24.6
|
|
|||||
Derivative Instruments
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset/Liability Management
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
$
|
39.3
|
|
|
$
|
39.3
|
|
|
$
|
—
|
|
|
$
|
39.3
|
|
|
$
|
—
|
|
Liabilities
|
22.7
|
|
|
22.7
|
|
|
—
|
|
|
22.7
|
|
|
—
|
|
|||||
Interest Rate Contracts
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
143.7
|
|
|
143.7
|
|
|
—
|
|
|
143.7
|
|
|
—
|
|
|||||
Liabilities
|
29.4
|
|
|
29.4
|
|
|
—
|
|
|
29.4
|
|
|
—
|
|
|||||
Other Financial Derivatives (2)
|
|
|
|
|
|
|
|
||||||||||||
Liabilities
|
10.9
|
|
|
10.9
|
|
|
—
|
|
|
—
|
|
|
10.9
|
|
|||||
Client-Related and Trading
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
2,779.0
|
|
|
2,779.0
|
|
|
—
|
|
|
2,779.0
|
|
|
—
|
|
|||||
Liabilities
|
2,751.9
|
|
|
2,751.9
|
|
|
—
|
|
|
2,751.9
|
|
|
—
|
|
|||||
Interest Rate Contracts
|
|
|
|
|
|
|
|
||||||||||||
Assets
|
139.1
|
|
|
139.1
|
|
|
—
|
|
|
139.1
|
|
|
—
|
|
|||||
Liabilities
|
136.1
|
|
|
136.1
|
|
|
—
|
|
|
136.1
|
|
|
—
|
|
(1)
|
Refer to the table located on page 35 for the disaggregation of available for sale securities.
|
(2)
|
This line includes a swap related to the sale of certain Visa Class B common shares.
|
(In Millions)
|
December 31, 2014
|
||||||||||||||||||
|
Book
Value
|
|
Total
Fair Value
|
|
Fair Value
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and Due from Banks
|
$
|
3,050.6
|
|
|
$
|
3,050.6
|
|
|
$
|
3,050.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Federal Funds Sold and Resell Agreements
|
1,062.7
|
|
|
1,062.7
|
|
|
—
|
|
|
1,062.7
|
|
|
—
|
|
|||||
Interest-Bearing Deposits with Banks
|
14,928.3
|
|
|
14,928.3
|
|
|
—
|
|
|
14,928.3
|
|
|
—
|
|
|||||
Federal Reserve Deposits
|
17,386.3
|
|
|
17,386.3
|
|
|
—
|
|
|
17,386.3
|
|
|
—
|
|
|||||
Securities
|
|
|
|
|
|
|
|
|
|
||||||||||
Available for Sale (1)
|
29,558.5
|
|
|
29,558.5
|
|
|
4,506.9
|
|
|
25,033.5
|
|
|
18.1
|
|
|||||
Held to Maturity
|
4,170.8
|
|
|
4,176.1
|
|
|
—
|
|
|
4,176.1
|
|
|
—
|
|
|||||
Trading Account
|
4.7
|
|
|
4.7
|
|
|
—
|
|
|
4.7
|
|
|
—
|
|
|||||
Loans (excluding Leases)
|
|
|
|
|
|
|
|
|
|
||||||||||
Held for Investment
|
30,458.0
|
|
|
30,600.4
|
|
|
—
|
|
|
—
|
|
|
30,600.4
|
|
|||||
Held for Sale
|
2.5
|
|
|
2.5
|
|
|
—
|
|
|
—
|
|
|
2.5
|
|
|||||
Client Security Settlement Receivables
|
1,568.8
|
|
|
1,568.8
|
|
|
—
|
|
|
1,568.8
|
|
|
—
|
|
|||||
Other Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal Reserve and Federal Home Loan Bank Stock
|
207.5
|
|
|
207.5
|
|
|
—
|
|
|
207.5
|
|
|
—
|
|
|||||
Community Development Investments
|
209.9
|
|
|
210.8
|
|
|
—
|
|
|
210.8
|
|
|
—
|
|
|||||
Employee Benefit and Deferred Compensation
|
143.2
|
|
|
146.7
|
|
|
96.7
|
|
|
50.0
|
|
|
—
|
|
|||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
|
|
|
|
|
|
|
|
||||||||||
Demand, Noninterest-Bearing, Savings and Money Market
|
$
|
41,454.6
|
|
|
$
|
41,454.6
|
|
|
$
|
41,454.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Savings Certificates and Other Time
|
1,757.4
|
|
|
1,757.0
|
|
|
—
|
|
|
1,757.0
|
|
|
—
|
|
|||||
Non U.S. Offices Interest-Bearing
|
47,545.0
|
|
|
47,545.0
|
|
|
—
|
|
|
47,545.0
|
|
|
—
|
|
|||||
Federal Funds Purchased
|
932.9
|
|
|
932.9
|
|
|
—
|
|
|
932.9
|
|
|
—
|
|
|||||
Securities Sold under Agreements to Repurchase
|
885.1
|
|
|
885.1
|
|
|
—
|
|
|
885.1
|
|
|
—
|
|
|||||
Other Borrowings
|
1,685.2
|
|
|
1,686.2
|
|
|
—
|
|
|
1,686.2
|
|
|
—
|
|
|||||
Senior Notes
|
1,497.0
|
|
|
1,541.8
|
|
|
—
|
|
|
1,541.8
|
|
|
—
|
|
|||||
Long Term Debt (excluding Leases)
|
|
|
|
|
|
|
|
|
|
||||||||||
Subordinated Debt
|
1,583.3
|
|
|
1,583.4
|
|
|
—
|
|
|
1,583.4
|
|
|
—
|
|
|||||
Floating Rate Capital Debt
|
277.2
|
|
|
242.8
|
|
|
—
|
|
|
242.8
|
|
|
—
|
|
|||||
Other Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Standby Letters of Credit
|
60.1
|
|
|
60.1
|
|
|
—
|
|
|
—
|
|
|
60.1
|
|
|||||
Loan Commitments
|
28.3
|
|
|
28.3
|
|
|
—
|
|
|
—
|
|
|
28.3
|
|
|||||
Derivative Instruments
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset/Liability Management
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
$
|
125.7
|
|
|
$
|
125.7
|
|
|
$
|
—
|
|
|
$
|
125.7
|
|
|
$
|
—
|
|
Liabilities
|
23.5
|
|
|
23.5
|
|
|
—
|
|
|
23.5
|
|
|
—
|
|
|||||
Interest Rate Contracts
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
126.8
|
|
|
126.8
|
|
|
—
|
|
|
126.8
|
|
|
—
|
|
|||||
Liabilities
|
30.5
|
|
|
30.5
|
|
|
—
|
|
|
30.5
|
|
|
—
|
|
|||||
Client-Related and Trading
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
4,149.5
|
|
|
4,149.5
|
|
|
—
|
|
|
4,149.5
|
|
|
—
|
|
|||||
Liabilities
|
4,072.0
|
|
|
4,072.0
|
|
|
—
|
|
|
4,072.0
|
|
|
—
|
|
|||||
Interest Rate Contracts
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
105.5
|
|
|
105.5
|
|
|
—
|
|
|
105.5
|
|
|
—
|
|
|||||
Liabilities
|
101.3
|
|
|
101.3
|
|
|
—
|
|
|
101.3
|
|
|
—
|
|
(1)
|
Refer to the table located on page 36 for the disaggregation of available for sale securities.
|
Securities Available for Sale
|
September 30, 2015
|
||||||||||||||
|
Amortized
Cost
|
|
Gross Unrealized
|
|
Fair
Value
|
||||||||||
(In Millions)
|
Gains
|
|
Losses
|
|
|||||||||||
U.S. Government
|
$
|
5,094.0
|
|
|
$
|
31.1
|
|
|
$
|
—
|
|
|
$
|
5,125.1
|
|
Obligations of States and Political Subdivisions
|
4.5
|
|
|
—
|
|
|
—
|
|
|
4.5
|
|
||||
Government Sponsored Agency
|
15,637.4
|
|
|
81.2
|
|
|
12.7
|
|
|
15,705.9
|
|
||||
Non-U.S. Government
|
310.8
|
|
|
0.2
|
|
|
—
|
|
|
311.0
|
|
||||
Corporate Debt
|
3,810.7
|
|
|
4.0
|
|
|
20.1
|
|
|
3,794.6
|
|
||||
Covered Bonds
|
2,073.2
|
|
|
3.3
|
|
|
3.0
|
|
|
2,073.5
|
|
||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
834.8
|
|
|
1.5
|
|
|
0.2
|
|
|
836.1
|
|
||||
Other Asset-Backed
|
2,817.2
|
|
|
0.6
|
|
|
2.1
|
|
|
2,815.7
|
|
||||
Auction Rate
|
16.7
|
|
|
0.5
|
|
|
1.0
|
|
|
16.2
|
|
||||
Commercial Mortgage-Backed
|
298.8
|
|
|
0.7
|
|
|
0.1
|
|
|
299.4
|
|
||||
Other
|
109.5
|
|
|
0.2
|
|
|
—
|
|
|
109.7
|
|
||||
Total
|
$
|
31,007.6
|
|
|
$
|
123.3
|
|
|
$
|
39.2
|
|
|
$
|
31,091.7
|
|
Securities Available for Sale
|
December 31, 2014
|
||||||||||||||
|
Amortized
Cost
|
|
Gross Unrealized
|
|
Fair
Value
|
||||||||||
(In Millions)
|
Gains
|
|
Losses
|
|
|||||||||||
U.S. Government
|
$
|
4,493.5
|
|
|
$
|
15.1
|
|
|
$
|
1.7
|
|
|
$
|
4,506.9
|
|
Obligations of States and Political Subdivisions
|
4.5
|
|
|
0.1
|
|
|
—
|
|
|
4.6
|
|
||||
Government Sponsored Agency
|
16,326.4
|
|
|
82.3
|
|
|
19.5
|
|
|
16,389.2
|
|
||||
Non-U.S. Government
|
309.5
|
|
|
0.9
|
|
|
—
|
|
|
310.4
|
|
||||
Corporate Debt
|
3,617.5
|
|
|
1.8
|
|
|
41.6
|
|
|
3,577.7
|
|
||||
Covered Bonds
|
1,899.9
|
|
|
7.9
|
|
|
0.3
|
|
|
1,907.5
|
|
||||
Supranational and Non-U.S. Agency Bonds
|
360.0
|
|
|
1.5
|
|
|
0.9
|
|
|
360.6
|
|
||||
Residential Mortgage-Backed
|
6.9
|
|
|
—
|
|
|
0.5
|
|
|
6.4
|
|
||||
Other Asset-Backed
|
2,321.8
|
|
|
0.5
|
|
|
1.0
|
|
|
2,321.3
|
|
||||
Auction Rate
|
18.4
|
|
|
0.5
|
|
|
0.8
|
|
|
18.1
|
|
||||
Other
|
155.7
|
|
|
0.3
|
|
|
0.2
|
|
|
155.8
|
|
||||
Total
|
$
|
29,514.1
|
|
|
$
|
110.9
|
|
|
$
|
66.5
|
|
|
$
|
29,558.5
|
|
Securities Held to Maturity
|
September 30, 2015
|
||||||||||||||
|
Amortized
Cost
|
|
Gross Unrealized
|
|
Fair
Value
|
||||||||||
(In Millions)
|
Gains
|
|
Losses
|
|
|||||||||||
Obligations of States and Political Subdivisions
|
$
|
97.2
|
|
|
$
|
5.8
|
|
|
$
|
—
|
|
|
$
|
103.0
|
|
Government Sponsored Agency
|
10.6
|
|
|
0.7
|
|
|
—
|
|
|
11.3
|
|
||||
Covered Bonds
|
408.9
|
|
|
0.3
|
|
|
0.6
|
|
|
408.6
|
|
||||
Non-U.S. Government
|
1,187.1
|
|
|
6.6
|
|
|
0.4
|
|
|
1,193.3
|
|
||||
Certificates of Deposit
|
1,732.5
|
|
|
0.2
|
|
|
0.2
|
|
|
1,732.5
|
|
||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
2,314.6
|
|
|
8.1
|
|
|
0.3
|
|
|
2,322.4
|
|
||||
Other
|
95.6
|
|
|
—
|
|
|
34.1
|
|
|
61.5
|
|
||||
Total
|
$
|
5,846.5
|
|
|
$
|
21.7
|
|
|
$
|
35.6
|
|
|
$
|
5,832.6
|
|
Securities Held to Maturity
|
December 31, 2014
|
||||||||||||||
|
Amortized
Cost
|
|
Gross Unrealized
|
|
Fair
Value
|
||||||||||
(In Millions)
|
Gains
|
|
Losses
|
|
|||||||||||
Obligations of States and Political Subdivisions
|
$
|
121.9
|
|
|
$
|
7.4
|
|
|
$
|
—
|
|
|
$
|
129.3
|
|
Government Sponsored Agency
|
18.4
|
|
|
1.1
|
|
|
—
|
|
|
19.5
|
|
||||
Non-U.S. Government
|
1,281.6
|
|
|
6.6
|
|
|
0.4
|
|
|
1,287.8
|
|
||||
Certificates of Deposit
|
924.3
|
|
|
0.1
|
|
|
0.1
|
|
|
924.3
|
|
||||
Supranational and Non-U.S. Agency Bonds
|
1,745.8
|
|
|
10.9
|
|
|
0.5
|
|
|
1,756.2
|
|
||||
Other
|
78.8
|
|
|
0.3
|
|
|
20.1
|
|
|
59.0
|
|
||||
Total
|
$
|
4,170.8
|
|
|
$
|
26.4
|
|
|
$
|
21.1
|
|
|
$
|
4,176.1
|
|
|
September 30, 2015
|
||||||
(In Millions)
|
Amortized
Cost
|
|
Fair
Value
|
||||
Available for Sale
|
|
|
|
||||
Due in One Year or Less
|
$
|
8,454.1
|
|
|
$
|
8,478.9
|
|
Due After One Year Through Five Years
|
17,915.3
|
|
|
17,971.4
|
|
||
Due After Five Years Through Ten Years
|
3,677.6
|
|
|
3,678.8
|
|
||
Due After Ten Years
|
960.6
|
|
|
962.6
|
|
||
Total
|
31,007.6
|
|
|
31,091.7
|
|
||
Held to Maturity
|
|
|
|
||||
Due in One Year or Less
|
2,499.8
|
|
|
2,501.3
|
|
||
Due After One Year Through Five Years
|
3,278.4
|
|
|
3,292.3
|
|
||
Due After Five Years Through Ten Years
|
15.5
|
|
|
12.2
|
|
||
Due After Ten Years
|
52.8
|
|
|
26.8
|
|
||
Total
|
$
|
5,846.5
|
|
|
$
|
5,832.6
|
|
Securities with Unrealized Losses as of September 30, 2015
|
|
Less than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
(In Millions)
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
Government Sponsored Agency
|
|
4,502.5
|
|
|
7.8
|
|
|
701.0
|
|
|
4.9
|
|
|
5,203.5
|
|
|
12.7
|
|
||||||
Non-U.S. Government
|
|
132.3
|
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|
132.3
|
|
|
0.4
|
|
||||||
Corporate Debt
|
|
1,244.0
|
|
|
6.0
|
|
|
1,022.0
|
|
|
14.1
|
|
|
2,266.0
|
|
|
20.1
|
|
||||||
Covered Bonds
|
|
842.0
|
|
|
3.6
|
|
|
—
|
|
|
—
|
|
|
842.0
|
|
|
3.6
|
|
||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
|
494.3
|
|
|
0.4
|
|
|
223.3
|
|
|
0.1
|
|
|
717.6
|
|
|
0.5
|
|
||||||
Other Asset-Backed
|
|
1,657.6
|
|
|
2.0
|
|
|
179.5
|
|
|
0.1
|
|
|
1,837.1
|
|
|
2.1
|
|
||||||
Certificates of Deposit
|
|
555.1
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
555.1
|
|
|
0.2
|
|
||||||
Auction Rate
|
|
1.4
|
|
|
0.2
|
|
|
4.3
|
|
|
0.8
|
|
|
5.7
|
|
|
1.0
|
|
||||||
Commercial Mortgage-Backed
|
|
57.7
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
57.7
|
|
|
0.1
|
|
||||||
Other
|
|
37.3
|
|
|
16.7
|
|
|
46.9
|
|
|
17.4
|
|
|
84.2
|
|
|
34.1
|
|
||||||
Total
|
|
$
|
9,524.2
|
|
|
$
|
37.4
|
|
|
$
|
2,177.0
|
|
|
$
|
37.4
|
|
|
$
|
11,701.2
|
|
|
$
|
74.8
|
|
Securities with Unrealized Losses as of December 31, 2014
|
|
Less than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
(In Millions)
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
U.S. Government
|
|
$
|
998.2
|
|
|
$
|
1.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
998.2
|
|
|
$
|
1.7
|
|
Government Sponsored Agency
|
|
2,344.9
|
|
|
6.6
|
|
|
1,730.0
|
|
|
12.9
|
|
|
4,074.9
|
|
|
19.5
|
|
||||||
Non-U.S. Government
|
|
292.9
|
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|
292.9
|
|
|
0.4
|
|
||||||
Corporate Debt
|
|
1,244.5
|
|
|
3.9
|
|
|
1,338.8
|
|
|
37.7
|
|
|
2,583.3
|
|
|
41.6
|
|
||||||
Covered Bonds
|
|
142.3
|
|
|
0.2
|
|
|
10.0
|
|
|
0.1
|
|
|
152.3
|
|
|
0.3
|
|
||||||
Supranational and Non-U.S. Agency Bonds
|
|
313.2
|
|
|
0.3
|
|
|
175.5
|
|
|
1.1
|
|
|
488.7
|
|
|
1.4
|
|
||||||
Residential Mortgage-Backed
|
|
—
|
|
|
—
|
|
|
4.5
|
|
|
0.5
|
|
|
4.5
|
|
|
0.5
|
|
||||||
Other Asset-Backed
|
|
1,297.6
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
1,297.6
|
|
|
1.0
|
|
||||||
Certificates of Deposit
|
|
438.6
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
438.6
|
|
|
0.1
|
|
||||||
Auction Rate
|
|
2.4
|
|
|
0.2
|
|
|
4.7
|
|
|
0.6
|
|
|
7.1
|
|
|
0.8
|
|
||||||
Other
|
|
27.1
|
|
|
12.1
|
|
|
45.6
|
|
|
8.2
|
|
|
72.7
|
|
|
20.3
|
|
||||||
Total
|
|
$
|
7,101.7
|
|
|
$
|
26.5
|
|
|
$
|
3,309.1
|
|
|
$
|
61.1
|
|
|
$
|
10,410.8
|
|
|
$
|
87.6
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In Millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Changes in OTTI Losses*
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(4.6
|
)
|
Noncredit-related Losses Recorded in / (Reclassified from) OCI**
|
—
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
||||
Net Impairment Losses Recognized in Earnings
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(3.9
|
)
|
*
|
For initial OTTI in the applicable period, the balance includes the excess of the amortized cost over the fair value of the impaired securities. For subsequent impairments of the same security, the balance includes any additional changes in fair value of the security subsequent to its most recently recorded OTTI.
|
**
|
For initial OTTI in the applicable period, the balance includes the portion of the excess of amortized cost over the fair value of the impaired securities that was recorded in other comprehensive income (OCI). For subsequent impairments of the same security, the balance includes additional changes in OCI for that security subsequent to its most recently recorded OTTI.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In Millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Cumulative Credit-Related Losses on Securities Held — Beginning of Period
|
$
|
5.2
|
|
|
$
|
12.7
|
|
|
$
|
5.2
|
|
|
$
|
8.8
|
|
Plus: Losses on Newly Identified Impairments
|
—
|
|
|
—
|
|
|
—
|
|
|
1.8
|
|
||||
Additional Losses on Previously Identified Impairments
|
—
|
|
|
—
|
|
|
—
|
|
|
2.1
|
|
||||
Less: Current and Prior Period Losses on Securities Sold During the Period
|
—
|
|
|
(1.8
|
)
|
|
—
|
|
|
(1.8
|
)
|
||||
Cumulative Credit-Related Losses on Securities Held — End of Period
|
$
|
5.2
|
|
|
$
|
10.9
|
|
|
$
|
5.2
|
|
|
$
|
10.9
|
|
|
September 30, 2015
|
||
(In Millions)
|
Remaining Contractual
Maturity of the
Agreements
|
||
Repurchase Agreements
|
Overnight and
Continuous
|
||
U.S. Treasury and Agency Securities
|
$
|
484.5
|
|
Total Borrowings
|
$
|
484.5
|
|
Gross Amount of Recognized Liabilities for Repurchase Agreements in footnote 21
|
$
|
484.5
|
|
Amounts related to agreements not included in footnote 21
|
$
|
—
|
|
(In Millions)
|
September 30,
2015 |
|
December 31,
2014 |
||||
Commercial
|
|
|
|
||||
Commercial and Institutional
|
$
|
9,478.6
|
|
|
$
|
8,381.9
|
|
Commercial Real Estate
|
3,814.6
|
|
|
3,333.3
|
|
||
Lease Financing, net
|
807.2
|
|
|
916.3
|
|
||
Non-U.S.
|
1,250.2
|
|
|
1,530.6
|
|
||
Other
|
166.8
|
|
|
191.5
|
|
||
Total Commercial
|
15,517.4
|
|
|
14,353.6
|
|
||
Personal
|
|
|
|
||||
Residential Real Estate
|
9,077.5
|
|
|
9,782.6
|
|
||
Private Client
|
8,751.3
|
|
|
7,466.9
|
|
||
Other
|
32.2
|
|
|
37.1
|
|
||
Total Personal
|
17,861.0
|
|
|
17,286.6
|
|
||
Total Loans and Leases
|
33,378.4
|
|
|
31,640.2
|
|
||
Allowance for Credit Losses Assigned to Loans and Leases
|
(242.2
|
)
|
|
(267.0
|
)
|
||
Net Loans and Leases
|
$
|
33,136.2
|
|
|
$
|
31,373.2
|
|
•
|
Commercial and Institutional: leverage, profit margin, liquidity, asset size and capital levels;
|
•
|
Commercial Real Estate: debt service coverage, loan-to-value ratio, leasing status and guarantor support;
|
•
|
Lease Financing and Commercial-Other: leverage, profit margin, liquidity, asset size and capital levels;
|
•
|
Non-U.S.: leverage, profit margin, liquidity, return on assets and capital levels;
|
•
|
Residential Real Estate: payment history, credit bureau scores and loan-to-value ratio;
|
•
|
Private Client: cash-flow-to-debt and net worth ratios, leverage and liquidity; and
|
•
|
Personal-Other: cash-flow-to-debt and net worth ratios.
|
|
September 30, 2015
|
|
December 31, 2014
|
||||||||||||||||||||||||||||
(In Millions)
|
1 to 3
Category
|
|
4 to 5
Category
|
|
6 to 9
Category
(Watch List)
|
|
Total
|
|
1 to 3
Category
|
|
4 to 5
Category
|
|
6 to 9
Category
(Watch List)
|
|
Total
|
||||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial and Institutional
|
$
|
6,472.1
|
|
|
$
|
2,932.1
|
|
|
$
|
74.4
|
|
|
$
|
9,478.6
|
|
|
$
|
5,340.9
|
|
|
$
|
2,947.3
|
|
|
$
|
93.7
|
|
|
$
|
8,381.9
|
|
Commercial Real Estate
|
1,648.0
|
|
|
2,113.5
|
|
|
53.1
|
|
|
3,814.6
|
|
|
1,371.7
|
|
|
1,861.8
|
|
|
99.8
|
|
|
3,333.3
|
|
||||||||
Lease Financing, net
|
458.5
|
|
|
345.9
|
|
|
2.8
|
|
|
807.2
|
|
|
552.5
|
|
|
360.3
|
|
|
3.5
|
|
|
916.3
|
|
||||||||
Non-U.S.
|
435.4
|
|
|
814.6
|
|
|
0.2
|
|
|
1,250.2
|
|
|
636.8
|
|
|
892.9
|
|
|
0.9
|
|
|
1,530.6
|
|
||||||||
Other
|
99.0
|
|
|
67.8
|
|
|
—
|
|
|
166.8
|
|
|
108.1
|
|
|
83.4
|
|
|
—
|
|
|
191.5
|
|
||||||||
Total Commercial
|
9,113.0
|
|
|
6,273.9
|
|
|
130.5
|
|
|
15,517.4
|
|
|
8,010.0
|
|
|
6,145.7
|
|
|
197.9
|
|
|
14,353.6
|
|
||||||||
Personal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential Real Estate
|
3,092.5
|
|
|
5,631.4
|
|
|
353.6
|
|
|
9,077.5
|
|
|
3,148.0
|
|
|
6,207.0
|
|
|
427.6
|
|
|
9,782.6
|
|
||||||||
Private Client
|
5,641.4
|
|
|
3,098.9
|
|
|
11.0
|
|
|
8,751.3
|
|
|
5,143.8
|
|
|
2,311.7
|
|
|
11.4
|
|
|
7,466.9
|
|
||||||||
Other
|
19.0
|
|
|
13.2
|
|
|
—
|
|
|
32.2
|
|
|
21.1
|
|
|
16.0
|
|
|
—
|
|
|
37.1
|
|
||||||||
Total Personal
|
8,752.9
|
|
|
8,743.5
|
|
|
364.6
|
|
|
17,861.0
|
|
|
8,312.9
|
|
|
8,534.7
|
|
|
439.0
|
|
|
17,286.6
|
|
||||||||
Total Loans and Leases
|
$
|
17,865.9
|
|
|
$
|
15,017.4
|
|
|
$
|
495.1
|
|
|
$
|
33,378.4
|
|
|
$
|
16,322.9
|
|
|
$
|
14,680.4
|
|
|
$
|
636.9
|
|
|
$
|
31,640.2
|
|
December 31, 2014
|
|||||||||||||||||||||||||||
(In Millions)
|
Current
|
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
90 Days or
More Past
Due
|
|
Total
Performing
|
|
Nonperforming
|
|
Total Loans
and Leases
|
||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and Institutional
|
$
|
8,340.5
|
|
|
$
|
14.5
|
|
|
$
|
4.0
|
|
|
$
|
7.9
|
|
|
$
|
8,366.9
|
|
|
$
|
15.0
|
|
|
$
|
8,381.9
|
|
Commercial Real Estate
|
3,274.3
|
|
|
9.6
|
|
|
9.8
|
|
|
2.5
|
|
|
3,296.2
|
|
|
37.1
|
|
|
3,333.3
|
|
|||||||
Lease Financing, net
|
916.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
916.3
|
|
|
—
|
|
|
916.3
|
|
|||||||
Non-U.S.
|
1,530.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,530.6
|
|
|
—
|
|
|
1,530.6
|
|
|||||||
Other
|
191.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
191.5
|
|
|
—
|
|
|
191.5
|
|
|||||||
Total Commercial
|
14,253.2
|
|
|
24.1
|
|
|
13.8
|
|
|
10.4
|
|
|
14,301.5
|
|
|
52.1
|
|
|
14,353.6
|
|
|||||||
Personal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential Real Estate
|
9,556.3
|
|
|
49.5
|
|
|
9.9
|
|
|
4.5
|
|
|
9,620.2
|
|
|
162.4
|
|
|
9,782.6
|
|
|||||||
Private Client
|
7,396.0
|
|
|
56.0
|
|
|
5.9
|
|
|
7.8
|
|
|
7,465.7
|
|
|
1.2
|
|
|
7,466.9
|
|
|||||||
Other
|
37.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37.1
|
|
|
—
|
|
|
37.1
|
|
|||||||
Total Personal
|
16,989.4
|
|
|
105.5
|
|
|
15.8
|
|
|
12.3
|
|
|
17,123.0
|
|
|
163.6
|
|
|
17,286.6
|
|
|||||||
Total Loans and Leases
|
$
|
31,242.6
|
|
|
$
|
129.6
|
|
|
$
|
29.6
|
|
|
$
|
22.7
|
|
|
$
|
31,424.5
|
|
|
$
|
215.7
|
|
|
$
|
31,640.2
|
|
|
Other Real Estate Owned
|
|
|
16.6
|
|
|
|
||||||||||||||||||||
|
Total Nonperforming Assets
|
|
|
$
|
232.3
|
|
|
|
|
As of September 30, 2015
|
|
As of December 31, 2014
|
||||||||||||||||||||
(In Millions)
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Specific
Allowance
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Specific
Allowance
|
||||||||||||
With No Related Specific Allowance
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and Institutional
|
$
|
9.8
|
|
|
$
|
12.3
|
|
|
$
|
—
|
|
|
$
|
9.0
|
|
|
$
|
12.0
|
|
|
$
|
—
|
|
Commercial Real Estate
|
25.2
|
|
|
30.6
|
|
|
—
|
|
|
47.0
|
|
|
52.4
|
|
|
—
|
|
||||||
Lease Financing, net
|
—
|
|
|
—
|
|
|
—
|
|
|
4.2
|
|
|
4.2
|
|
|
—
|
|
||||||
Residential Real Estate
|
151.7
|
|
|
199.4
|
|
|
—
|
|
|
160.9
|
|
|
204.8
|
|
|
—
|
|
||||||
Private Client
|
0.2
|
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|
0.5
|
|
|
—
|
|
||||||
With a Related Specific Allowance
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and Institutional
|
6.5
|
|
|
6.6
|
|
|
1.5
|
|
|
6.5
|
|
|
6.6
|
|
|
2.9
|
|
||||||
Commercial Real Estate
|
3.9
|
|
|
6.3
|
|
|
0.7
|
|
|
12.2
|
|
|
18.3
|
|
|
2.9
|
|
||||||
Lease Financing, net
|
2.8
|
|
|
2.8
|
|
|
1.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Residential Real Estate
|
—
|
|
|
1.8
|
|
|
0.4
|
|
|
1.4
|
|
|
1.4
|
|
|
0.4
|
|
||||||
Private Client
|
1.8
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
|
0.8
|
|
|
0.4
|
|
||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
48.2
|
|
|
58.6
|
|
|
3.6
|
|
|
78.9
|
|
|
93.5
|
|
|
5.8
|
|
||||||
Personal
|
153.7
|
|
|
201.4
|
|
|
0.4
|
|
|
163.3
|
|
|
207.5
|
|
|
0.8
|
|
||||||
Total
|
$
|
201.9
|
|
|
$
|
260.0
|
|
|
$
|
4.0
|
|
|
$
|
242.2
|
|
|
$
|
301.0
|
|
|
$
|
6.6
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||||||||||||||||
(In Millions)
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||||||||||
With No Related Specific Allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial and Institutional
|
$
|
9.4
|
|
|
$
|
—
|
|
|
$
|
12.6
|
|
|
$
|
0.1
|
|
|
$
|
8.9
|
|
|
$
|
—
|
|
|
$
|
11.5
|
|
|
$
|
0.1
|
|
Commercial Real Estate
|
25.1
|
|
|
—
|
|
|
48.5
|
|
|
0.2
|
|
|
35.8
|
|
|
0.4
|
|
|
46.0
|
|
|
0.7
|
|
||||||||
Lease Financing, net
|
—
|
|
|
—
|
|
|
4.3
|
|
|
0.1
|
|
|
1.1
|
|
|
0.1
|
|
|
4.3
|
|
|
0.2
|
|
||||||||
Residential Real Estate
|
154.0
|
|
|
0.5
|
|
|
172.0
|
|
|
0.8
|
|
|
157.0
|
|
|
1.3
|
|
|
180.8
|
|
|
2.1
|
|
||||||||
Private Client
|
0.2
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
||||||||
With a Related Specific Allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial and Institutional
|
6.4
|
|
|
—
|
|
|
11.9
|
|
|
—
|
|
|
9.0
|
|
|
—
|
|
|
10.6
|
|
|
—
|
|
||||||||
Commercial Real Estate
|
5.1
|
|
|
—
|
|
|
13.7
|
|
|
—
|
|
|
9.1
|
|
|
—
|
|
|
20.9
|
|
|
—
|
|
||||||||
Lease Financing, net
|
2.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Residential Real Estate
|
6.6
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
|
5.4
|
|
|
—
|
|
|
4.1
|
|
|
—
|
|
||||||||
Private Client
|
0.2
|
|
|
—
|
|
|
0.9
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial
|
48.8
|
|
|
—
|
|
|
91.0
|
|
|
0.4
|
|
|
66.0
|
|
|
0.5
|
|
|
93.3
|
|
|
1.0
|
|
||||||||
Personal
|
161.0
|
|
|
0.5
|
|
|
174.5
|
|
|
0.8
|
|
|
163.4
|
|
|
1.3
|
|
|
186.0
|
|
|
2.1
|
|
||||||||
Total
|
$
|
209.8
|
|
|
$
|
0.5
|
|
|
$
|
265.5
|
|
|
$
|
1.2
|
|
|
$
|
229.4
|
|
|
$
|
1.8
|
|
|
$
|
279.3
|
|
|
$
|
3.1
|
|
($ In Millions)
|
Three Months Ended September 30, 2015
|
|
Nine Months Ended September 30, 2015
|
||||||||||||||||||
|
Number of
Loans and Leases
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Number of
Loans and Leases
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and Institutional
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
2
|
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
Commercial Real Estate
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
0.8
|
|
|
0.8
|
|
||||
Total Commercial
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
0.9
|
|
|
0.9
|
|
||||
Personal
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential Real Estate
|
26
|
|
|
7.6
|
|
|
9.4
|
|
|
102
|
|
|
23.2
|
|
|
29.0
|
|
||||
Private Client
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
0.6
|
|
|
0.6
|
|
||||
Total Personal
|
26
|
|
|
7.6
|
|
|
9.4
|
|
|
103
|
|
|
23.8
|
|
|
29.6
|
|
||||
Total Loans and Leases
|
26
|
|
|
$
|
7.6
|
|
|
$
|
9.4
|
|
|
106
|
|
|
$
|
24.7
|
|
|
$
|
30.5
|
|
($ In Millions)
|
Three Months Ended September 30, 2014
|
|
Nine Months Ended September 30, 2014
|
||||||||||||||||||
|
Number of
Loans and Leases
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Number of
Loans and Leases
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and Institutional
|
1
|
|
|
$
|
0.4
|
|
|
$
|
0.4
|
|
|
3
|
|
|
$
|
0.7
|
|
|
$
|
0.8
|
|
Commercial Real Estate
|
5
|
|
|
2.9
|
|
|
3.4
|
|
|
6
|
|
|
3.5
|
|
|
4.1
|
|
||||
Total Commercial
|
6
|
|
|
3.3
|
|
|
3.8
|
|
|
9
|
|
|
4.2
|
|
|
4.9
|
|
||||
Personal
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential Real Estate
|
28
|
|
|
18.0
|
|
|
18.7
|
|
|
96
|
|
|
25.3
|
|
|
27.1
|
|
||||
Private Client
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
0.3
|
|
||||
Total Personal
|
28
|
|
|
18.0
|
|
|
18.7
|
|
|
99
|
|
|
25.3
|
|
|
27.4
|
|
||||
Total Loans and Leases
|
34
|
|
|
$
|
21.3
|
|
|
$
|
22.5
|
|
|
108
|
|
|
$
|
29.5
|
|
|
$
|
32.3
|
|
|
Three Months Ended September 30,
|
||||||||||||||||||||||
|
2015
|
|
2014
|
||||||||||||||||||||
(In Millions)
|
Commercial
|
|
Personal
|
|
Total
|
|
Commercial
|
|
Personal
|
|
Total
|
||||||||||||
Balance at Beginning of Period
|
$
|
152.7
|
|
|
$
|
121.5
|
|
|
$
|
274.2
|
|
|
$
|
168.7
|
|
|
$
|
134.8
|
|
|
$
|
303.5
|
|
Charge-Offs
|
(7.7
|
)
|
|
(4.2
|
)
|
|
(11.9
|
)
|
|
(2.5
|
)
|
|
(6.1
|
)
|
|
(8.6
|
)
|
||||||
Recoveries
|
0.5
|
|
|
2.0
|
|
|
2.5
|
|
|
1.9
|
|
|
1.5
|
|
|
3.4
|
|
||||||
Net (Charge-Offs) Recoveries
|
(7.2
|
)
|
|
(2.2
|
)
|
|
(9.4
|
)
|
|
(0.6
|
)
|
|
(4.6
|
)
|
|
(5.2
|
)
|
||||||
Provision for Credit Losses
|
(6.2
|
)
|
|
(3.8
|
)
|
|
(10.0
|
)
|
|
1.0
|
|
|
(1.0
|
)
|
|
—
|
|
||||||
Effect of Foreign Exchange Rates
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Balance at End of Period
|
$
|
139.2
|
|
|
$
|
115.5
|
|
|
$
|
254.7
|
|
|
$
|
169.1
|
|
|
$
|
129.2
|
|
|
$
|
298.3
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||
|
2015
|
|
2014
|
||||||||||||||||||||
(In Millions)
|
Commercial
|
|
Personal
|
|
Total
|
|
Commercial
|
|
Personal
|
|
Total
|
||||||||||||
Balance at Beginning of Period
|
$
|
169.7
|
|
|
$
|
126.2
|
|
|
$
|
295.9
|
|
|
$
|
168.0
|
|
|
$
|
139.9
|
|
|
$
|
307.9
|
|
Charge-Offs
|
(12.9
|
)
|
|
(12.6
|
)
|
|
(25.5
|
)
|
|
(8.8
|
)
|
|
(19.1
|
)
|
|
(27.9
|
)
|
||||||
Recoveries
|
4.6
|
|
|
4.3
|
|
|
8.9
|
|
|
10.7
|
|
|
4.6
|
|
|
15.3
|
|
||||||
Net (Charge-Offs) Recoveries
|
(8.3
|
)
|
|
(8.3
|
)
|
|
(16.6
|
)
|
|
1.9
|
|
|
(14.5
|
)
|
|
(12.6
|
)
|
||||||
Provision for Credit Losses
|
(22.1
|
)
|
|
(2.4
|
)
|
|
(24.5
|
)
|
|
(0.8
|
)
|
|
3.8
|
|
|
3.0
|
|
||||||
Effect of Foreign Exchange Rates
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Balance at End of Period
|
$
|
139.2
|
|
|
$
|
115.5
|
|
|
$
|
254.7
|
|
|
$
|
169.1
|
|
|
$
|
129.2
|
|
|
$
|
298.3
|
|
|
September 30, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
(In Millions)
|
Commercial
|
|
Personal
|
|
Total
|
|
Commercial
|
|
Personal
|
|
Total
|
||||||||||||
Loans and Leases
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Specifically Evaluated for Impairment
|
$
|
48.2
|
|
|
$
|
153.7
|
|
|
$
|
201.9
|
|
|
$
|
78.9
|
|
|
$
|
163.3
|
|
|
$
|
242.2
|
|
Evaluated for Inherent Impairment
|
15,469.2
|
|
|
17,707.3
|
|
|
33,176.5
|
|
|
14,274.7
|
|
|
17,123.3
|
|
|
31,398.0
|
|
||||||
Total Loans and Leases
|
15,517.4
|
|
|
17,861.0
|
|
|
33,378.4
|
|
|
14,353.6
|
|
|
17,286.6
|
|
|
31,640.2
|
|
||||||
Allowance for Loans and Leases
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Specifically Evaluated for Impairment
|
3.6
|
|
|
0.4
|
|
|
4.0
|
|
|
5.8
|
|
|
0.8
|
|
|
6.6
|
|
||||||
Evaluated for Inherent Impairment
|
126.4
|
|
|
111.8
|
|
|
238.2
|
|
|
138.0
|
|
|
122.4
|
|
|
260.4
|
|
||||||
Allowance Assigned to Loans and Leases
|
130.0
|
|
|
112.2
|
|
|
242.2
|
|
|
143.8
|
|
|
123.2
|
|
|
267.0
|
|
||||||
Allowance for Unfunded Exposures
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commitments and Standby Letters of Credit
|
9.2
|
|
|
3.3
|
|
|
12.5
|
|
|
25.9
|
|
|
3.0
|
|
|
28.9
|
|
||||||
Total Allowance for Credit Losses
|
$
|
139.2
|
|
|
$
|
115.5
|
|
|
$
|
254.7
|
|
|
$
|
169.7
|
|
|
$
|
126.2
|
|
|
$
|
295.9
|
|
(In Millions)
|
September 30,
2015 |
|
December 31,
2014 |
||||
Corporate & Institutional Services
|
$
|
458.3
|
|
|
$
|
461.8
|
|
Wealth Management
|
71.4
|
|
|
71.4
|
|
||
Total Goodwill
|
$
|
529.7
|
|
|
$
|
533.2
|
|
(In Millions)
|
September 30,
2015 |
|
December 31,
2014 |
||||
Gross Carrying Amount
|
$
|
184.8
|
|
|
$
|
189.5
|
|
Less: Accumulated Amortization
|
135.6
|
|
|
129.5
|
|
||
Net Book Value
|
$
|
49.2
|
|
|
$
|
60.0
|
|
Three Months Ended September 30,
|
Corporate &
Institutional Services |
|
Wealth
Management |
|
Treasury and
Other |
|
Total
Consolidated |
||||||||||||||||||||||||
($ In Millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||||||||
Noninterest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Trust, Investment and Other Servicing Fees
|
$
|
429.7
|
|
|
$
|
399.9
|
|
|
$
|
319.4
|
|
|
$
|
318.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
749.1
|
|
|
$
|
718.2
|
|
Foreign Exchange Trading Income
|
60.0
|
|
|
44.4
|
|
|
2.9
|
|
|
2.0
|
|
|
—
|
|
|
—
|
|
|
62.9
|
|
|
46.4
|
|
||||||||
Other Noninterest Income
|
45.9
|
|
|
42.8
|
|
|
28.3
|
|
|
20.9
|
|
|
0.4
|
|
|
1.3
|
|
|
74.6
|
|
|
65.0
|
|
||||||||
Net Interest Income (FTE)*
|
108.6
|
|
|
78.4
|
|
|
142.5
|
|
|
131.2
|
|
|
23.9
|
|
|
46.6
|
|
|
275.0
|
|
|
256.2
|
|
||||||||
Revenue*
|
644.2
|
|
|
565.5
|
|
|
493.1
|
|
|
472.4
|
|
|
24.3
|
|
|
47.9
|
|
|
1,161.6
|
|
|
1,085.8
|
|
||||||||
Provision for Credit Losses
|
(2.8
|
)
|
|
0.9
|
|
|
(7.2
|
)
|
|
(0.9
|
)
|
|
—
|
|
|
—
|
|
|
(10.0
|
)
|
|
—
|
|
||||||||
Noninterest Expense
|
464.6
|
|
|
429.6
|
|
|
316.3
|
|
|
312.1
|
|
|
31.4
|
|
|
33.0
|
|
|
812.3
|
|
|
774.7
|
|
||||||||
Income before Income Taxes*
|
182.4
|
|
|
135.0
|
|
|
184.0
|
|
|
161.2
|
|
|
(7.1
|
)
|
|
14.9
|
|
|
359.3
|
|
|
311.1
|
|
||||||||
Provision for Income Taxes*
|
58.3
|
|
|
42.4
|
|
|
69.0
|
|
|
60.7
|
|
|
(2.6
|
)
|
|
3.5
|
|
|
124.7
|
|
|
106.6
|
|
||||||||
Net Income
|
$
|
124.1
|
|
|
$
|
92.6
|
|
|
$
|
115.0
|
|
|
$
|
100.5
|
|
|
$
|
(4.5
|
)
|
|
$
|
11.4
|
|
|
$
|
234.6
|
|
|
$
|
204.5
|
|
Percentage of Consolidated Net Income
|
53
|
%
|
|
45
|
%
|
|
49
|
%
|
|
49
|
%
|
|
(2
|
)%
|
|
6
|
%
|
|
100
|
%
|
|
100
|
%
|
||||||||
Average Assets
|
$
|
41,305.7
|
|
|
$
|
59,907.1
|
|
|
$
|
25,274.6
|
|
|
$
|
26,061.8
|
|
|
$
|
43,343.8
|
|
|
$
|
19,275.8
|
|
|
$
|
109,924.1
|
|
|
$
|
105,244.7
|
|
*
|
Stated on a fully taxable equivalent basis (FTE). Total consolidated includes FTE adjustments of
$6.1 million
for
2015
and
$6.9 million
for
2014
.
|
Nine Months Ended September 30,
|
Corporate &
Institutional Services |
|
Wealth
Management |
|
Treasury and
Other |
|
Total
Consolidated |
||||||||||||||||||||||||
($ In Millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||||||||
Noninterest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Trust, Investment and Other Servicing Fees
|
$
|
1,269.0
|
|
|
$
|
1,174.5
|
|
|
$
|
964.4
|
|
|
$
|
930.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,233.4
|
|
|
$
|
2,104.6
|
|
Foreign Exchange Trading Income
|
199.3
|
|
|
143.2
|
|
|
10.0
|
|
|
6.2
|
|
|
—
|
|
|
—
|
|
|
209.3
|
|
|
149.4
|
|
||||||||
Other Noninterest Income
|
131.0
|
|
|
134.3
|
|
|
83.9
|
|
|
66.7
|
|
|
107.6
|
|
|
4.5
|
|
|
322.5
|
|
|
205.5
|
|
||||||||
Net Interest Income (FTE)*
|
297.3
|
|
|
228.8
|
|
|
421.8
|
|
|
398.8
|
|
|
80.3
|
|
|
136.4
|
|
|
799.4
|
|
|
764.0
|
|
||||||||
Revenue*
|
1,896.6
|
|
|
1,680.8
|
|
|
1,480.1
|
|
|
1,401.8
|
|
|
187.9
|
|
|
140.9
|
|
|
3,564.6
|
|
|
3,223.5
|
|
||||||||
Provision for Credit Losses
|
(3.0
|
)
|
|
4.5
|
|
|
(21.5
|
)
|
|
(1.5
|
)
|
|
—
|
|
|
—
|
|
|
(24.5
|
)
|
|
3.0
|
|
||||||||
Noninterest Expense
|
1,387.7
|
|
|
1,299.5
|
|
|
960.9
|
|
|
960.3
|
|
|
107.2
|
|
|
93.9
|
|
|
2,455.8
|
|
|
2,353.7
|
|
||||||||
Income before Income Taxes*
|
511.9
|
|
|
376.8
|
|
|
540.7
|
|
|
443.0
|
|
|
80.7
|
|
|
47.0
|
|
|
1,133.3
|
|
|
866.8
|
|
||||||||
Provision for Income Taxes*
|
160.9
|
|
|
113.3
|
|
|
203.2
|
|
|
166.9
|
|
|
34.7
|
|
|
18.8
|
|
|
398.8
|
|
|
299.0
|
|
||||||||
Net Income
|
$
|
351.0
|
|
|
$
|
263.5
|
|
|
$
|
337.5
|
|
|
$
|
276.1
|
|
|
$
|
46.0
|
|
|
$
|
28.2
|
|
|
$
|
734.5
|
|
|
$
|
567.8
|
|
Percentage of Consolidated Net Income
|
48
|
%
|
|
46
|
%
|
|
46
|
%
|
|
49
|
%
|
|
6
|
%
|
|
5
|
%
|
|
100
|
%
|
|
100
|
%
|
||||||||
Average Assets
|
$
|
41,461.6
|
|
|
$
|
59,061.3
|
|
|
$
|
24,806.8
|
|
|
$
|
23,613.4
|
|
|
$
|
43,449.9
|
|
|
20,281.1
|
|
|
$
|
109,718.3
|
|
|
$
|
102,955.8
|
|
*
|
Stated on a fully taxable equivalent basis (FTE). Total consolidated includes FTE adjustments of
$18.7 million
for
2015
and
$22.4 million
for
2014
.
|
(In Millions)
|
Balance at September 30, 2015
|
|
Net Change
|
|
Balance at December 31, 2014
|
||||||
Net Unrealized Gains (Losses) on Securities Available for Sale
|
$
|
52.3
|
|
|
$
|
24.7
|
|
|
$
|
27.6
|
|
Net Unrealized Gains (Losses) on Cash Flow Hedges
|
0.6
|
|
|
5.3
|
|
|
(4.7
|
)
|
|||
Net Foreign Currency Adjustments
|
(4.1
|
)
|
|
(2.4
|
)
|
|
(1.7
|
)
|
|||
Net Pension and Other Postretirement Benefit Adjustments
|
(322.5
|
)
|
|
18.4
|
|
|
(340.9
|
)
|
|||
Total
|
$
|
(273.7
|
)
|
|
$
|
46.0
|
|
|
$
|
(319.7
|
)
|
(In Millions)
|
Balance at September 30, 2014
|
|
Net Change
|
|
Balance at December 31, 2013
|
||||||
Net Unrealized Gains (Losses) on Securities Available for Sale
|
$
|
38.3
|
|
|
$
|
32.3
|
|
|
$
|
6.0
|
|
Net Unrealized Gains (Losses) on Cash Flow Hedges
|
(3.5
|
)
|
|
(6.4
|
)
|
|
2.9
|
|
|||
Net Foreign Currency Adjustments
|
(3.4
|
)
|
|
(10.5
|
)
|
|
7.1
|
|
|||
Net Pension and Other Postretirement Benefit Adjustments
|
(249.8
|
)
|
|
10.5
|
|
|
(260.3
|
)
|
|||
Total
|
$
|
(218.4
|
)
|
|
$
|
25.9
|
|
|
$
|
(244.3
|
)
|
|
Three Months Ended September 30,
|
||||||||||||||||||||||
|
2015
|
|
2014
|
||||||||||||||||||||
(In Millions)
|
Before Tax
|
|
Tax Effect
|
|
After Tax
|
|
Before Tax
|
|
Tax Effect
|
|
After Tax
|
||||||||||||
Unrealized Gains (Losses) on Securities Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Noncredit-Related Unrealized Losses on Securities OTTI
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5.5
|
|
|
$
|
(2.1
|
)
|
|
$
|
3.4
|
|
Other Unrealized Gains (Losses) on Securities Available for Sale
|
(11.0
|
)
|
|
4.0
|
|
|
(7.0
|
)
|
|
(14.2
|
)
|
|
5.4
|
|
|
(8.8
|
)
|
||||||
Reclassification Adjustment for (Gains) Losses Included in Net Income
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
|
(0.3
|
)
|
||||||
Net Change
|
(11.0
|
)
|
|
4.0
|
|
|
(7.0
|
)
|
|
(9.0
|
)
|
|
3.3
|
|
|
(5.7
|
)
|
||||||
Unrealized Gains (Losses) on Cash Flow Hedges
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized Gains (Losses) on Cash Flow Hedges
|
6.4
|
|
|
(3.3
|
)
|
|
3.1
|
|
|
(7.6
|
)
|
|
2.5
|
|
|
(5.1
|
)
|
||||||
Reclassification Adjustment for (Gains) Losses Included in Net Income
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
(3.7
|
)
|
|
1.4
|
|
|
(2.3
|
)
|
||||||
Net Change
|
6.5
|
|
|
(3.3
|
)
|
|
3.2
|
|
|
(11.3
|
)
|
|
3.9
|
|
|
(7.4
|
)
|
||||||
Foreign Currency Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign Currency Translation Adjustments
|
(32.6
|
)
|
|
—
|
|
|
(32.6
|
)
|
|
(77.1
|
)
|
|
3.6
|
|
|
(73.5
|
)
|
||||||
Long-Term Intra-Entity Foreign Currency Transaction Gains (Losses)
|
(0.3
|
)
|
|
0.1
|
|
|
(0.2
|
)
|
|
(7.4
|
)
|
|
3.0
|
|
|
(4.4
|
)
|
||||||
Net Investment Hedge Gains (Losses)
|
49.1
|
|
|
(18.6
|
)
|
|
30.5
|
|
|
119.9
|
|
|
(45.6
|
)
|
|
74.3
|
|
||||||
Reclassification Adjustment for (Gains) Losses Included in Net Income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net Change
|
16.2
|
|
|
(18.5
|
)
|
|
(2.3
|
)
|
|
35.4
|
|
|
(39.0
|
)
|
|
(3.6
|
)
|
||||||
Pension and Other Postretirement Benefit Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net Actuarial Gain (Loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Reclassification Adjustment for (Gains) Losses Included in Net Income
|
9.6
|
|
|
(3.5
|
)
|
|
6.1
|
|
|
6.5
|
|
|
(3.0
|
)
|
|
3.5
|
|
||||||
Net Change
|
$
|
9.6
|
|
|
$
|
(3.5
|
)
|
|
$
|
6.1
|
|
|
$
|
6.5
|
|
|
$
|
(3.0
|
)
|
|
$
|
3.5
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||
|
2015
|
|
2014
|
||||||||||||||||||||
(In Millions)
|
Before Tax
|
|
Tax Effect
|
|
After Tax
|
|
Before Tax
|
|
Tax Effect
|
|
After Tax
|
||||||||||||
Unrealized Gains (Losses) on Securities Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Noncredit-Related Unrealized Losses on
Securities OTTI
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3.7
|
|
|
$
|
(1.4
|
)
|
|
$
|
2.3
|
|
Other Unrealized Gains (Losses) on Securities Available for Sale
|
39.4
|
|
|
(14.9
|
)
|
|
24.5
|
|
|
48.8
|
|
|
(18.2
|
)
|
|
30.6
|
|
||||||
Reclassification Adjustment for (Gains) Losses Included in Net Income
|
0.3
|
|
|
(0.1
|
)
|
|
0.2
|
|
|
(0.6
|
)
|
|
—
|
|
|
(0.6
|
)
|
||||||
Net Change
|
39.7
|
|
|
(15.0
|
)
|
|
24.7
|
|
|
51.9
|
|
|
(19.6
|
)
|
|
32.3
|
|
||||||
Unrealized Gains (Losses) on Cash Flow Hedges
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized Gains (Losses) on Cash Flow Hedges
|
6.5
|
|
|
(2.7
|
)
|
|
3.8
|
|
|
(6.5
|
)
|
|
2.2
|
|
|
(4.3
|
)
|
||||||
Reclassification Adjustment for (Gains) Losses Included in Net Income
|
2.4
|
|
|
(0.9
|
)
|
|
1.5
|
|
|
(3.3
|
)
|
|
1.2
|
|
|
(2.1
|
)
|
||||||
Net Change
|
8.9
|
|
|
(3.6
|
)
|
|
5.3
|
|
|
(9.8
|
)
|
|
3.4
|
|
|
(6.4
|
)
|
||||||
Foreign Currency Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign Currency Translation Adjustments
|
(69.7
|
)
|
|
14.6
|
|
|
(55.1
|
)
|
|
(57.2
|
)
|
|
3.0
|
|
|
(54.2
|
)
|
||||||
Long-Term Intra-Entity Foreign Currency Transaction Gains (Losses)
|
0.2
|
|
|
(0.1
|
)
|
|
0.1
|
|
|
(9.0
|
)
|
|
3.0
|
|
|
(6.0
|
)
|
||||||
Net Investment Hedge Gains (Losses)
|
84.6
|
|
|
(32.0
|
)
|
|
52.6
|
|
|
79.7
|
|
|
(30.0
|
)
|
|
49.7
|
|
||||||
Reclassification Adjustment for (Gains) Losses Included in Net Income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net Change
|
15.1
|
|
|
(17.5
|
)
|
|
(2.4
|
)
|
|
13.5
|
|
|
(24.0
|
)
|
|
(10.5
|
)
|
||||||
Pension and Other Postretirement Benefit Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net Actuarial Gain (Loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Reclassification Adjustment for (Gains) Losses Included in Net Income
|
28.8
|
|
|
(10.4
|
)
|
|
18.4
|
|
|
19.0
|
|
|
(8.5
|
)
|
|
10.5
|
|
||||||
Net Change
|
$
|
28.8
|
|
|
$
|
(10.4
|
)
|
|
$
|
18.4
|
|
|
$
|
19.0
|
|
|
$
|
(8.5
|
)
|
|
$
|
10.5
|
|
(In Millions)
|
Location of
Reclassification Adjustments Recognized
in Income
|
Amount of Reclassification
Adjustments Recognized
in Income
|
||||||
Three Months Ended
|
|
Nine Months Ended
|
||||||
September 30, 2015
|
||||||||
Securities Available for Sale
|
|
|
|
|
||||
Realized Losses on Securities Available for Sale
|
Investment Security Gains (Losses), net
|
$
|
—
|
|
|
$
|
0.3
|
|
Realized Losses on Cash Flow Hedges
|
|
|
|
|
||||
Foreign Exchange Contracts
|
Other Operating Income/Expense
|
0.1
|
|
|
2.4
|
|
||
Pension and Other Postretirement Benefit Adjustments
|
|
|
|
|
||||
Amortization of Net Actuarial Loss
|
Employee Benefits
|
9.7
|
|
|
29.0
|
|
||
Amortization of Prior Service Cost
|
Employee Benefits
|
(0.1
|
)
|
|
(0.2
|
)
|
||
Gross Reclassification Adjustment
|
|
$
|
9.6
|
|
|
$
|
28.8
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
($ In Millions Except Per Common Share Information)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Basic Net Income Per Common Share
|
|
|
|
|
|
|
|
||||||||
Average Number of Common Shares Outstanding
|
232,231,720
|
|
|
235,701,076
|
|
|
232,916,425
|
|
|
236,301,789
|
|
||||
Net Income
|
$
|
234.6
|
|
|
$
|
204.5
|
|
|
$
|
734.5
|
|
|
$
|
567.8
|
|
Less: Dividends on Preferred Stock
|
5.8
|
|
|
—
|
|
|
17.5
|
|
|
—
|
|
||||
Net Income Applicable to Common Stock
|
228.8
|
|
|
204.5
|
|
|
717.0
|
|
|
567.8
|
|
||||
Less: Earnings Allocated to Participating Securities
|
3.8
|
|
|
3.5
|
|
|
11.6
|
|
|
9.5
|
|
||||
Earnings Allocated to Common Shares Outstanding
|
225.0
|
|
|
201.0
|
|
|
705.4
|
|
|
558.3
|
|
||||
Basic Net Income Per Common Share
|
$
|
0.97
|
|
|
$
|
0.85
|
|
|
$
|
3.03
|
|
|
$
|
2.36
|
|
Diluted Net Income Per Common Share
|
|
|
|
|
|
|
|
||||||||
Average Number of Common Shares Outstanding
|
232,231,720
|
|
|
235,701,076
|
|
|
232,916,425
|
|
|
236,301,789
|
|
||||
Plus: Dilutive Effect of Share-based Compensation
|
1,931,470
|
|
|
2,036,053
|
|
|
1,974,357
|
|
|
1,873,907
|
|
||||
Average Common and Potential Common Shares
|
234,163,190
|
|
|
237,737,129
|
|
|
234,890,782
|
|
|
238,175,696
|
|
||||
Earnings Allocated to Common and Potential Common Shares
|
$
|
225.0
|
|
|
$
|
201.0
|
|
|
$
|
705.4
|
|
|
$
|
558.4
|
|
Diluted Net Income Per Common Share
|
0.96
|
|
|
0.84
|
|
|
3.00
|
|
|
2.34
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In Millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Interest Income
|
|
|
|
|
|
|
|
||||||||
Loans and Leases
|
$
|
186.7
|
|
|
$
|
184.8
|
|
|
$
|
541.6
|
|
|
$
|
553.5
|
|
Securities — Taxable
|
81.5
|
|
|
65.1
|
|
|
235.2
|
|
|
198.0
|
|
||||
— Non-Taxable
|
1.1
|
|
|
1.6
|
|
|
3.7
|
|
|
5.7
|
|
||||
Interest-Bearing Due from and Deposits with Banks (1)
|
27.0
|
|
|
30.9
|
|
|
82.3
|
|
|
96.6
|
|
||||
Federal Reserve Deposits and Other
|
9.4
|
|
|
11.4
|
|
|
30.5
|
|
|
29.2
|
|
||||
Total Interest Income
|
305.7
|
|
|
293.8
|
|
|
893.3
|
|
|
883.0
|
|
||||
Interest Expense
|
|
|
|
|
|
|
|
||||||||
Deposits
|
17.9
|
|
|
21.6
|
|
|
53.0
|
|
|
64.1
|
|
||||
Federal Funds Purchased
|
0.1
|
|
|
0.5
|
|
|
0.4
|
|
|
1.1
|
|
||||
Securities Sold Under Agreements to Repurchase
|
—
|
|
|
0.1
|
|
|
0.2
|
|
|
0.3
|
|
||||
Other Borrowings
|
1.0
|
|
|
0.9
|
|
|
3.3
|
|
|
2.4
|
|
||||
Senior Notes
|
11.7
|
|
|
11.6
|
|
|
35.2
|
|
|
42.8
|
|
||||
Long-Term Debt
|
5.5
|
|
|
9.2
|
|
|
18.8
|
|
|
29.0
|
|
||||
Floating Rate Capital Debt
|
0.6
|
|
|
0.6
|
|
|
1.7
|
|
|
1.7
|
|
||||
Total Interest Expense
|
36.8
|
|
|
44.5
|
|
|
112.6
|
|
|
141.4
|
|
||||
Net Interest Income
|
$
|
268.9
|
|
|
$
|
249.3
|
|
|
$
|
780.7
|
|
|
$
|
741.6
|
|
Net Periodic Pension Expense
U.S. Plan
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In Millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Service Cost
|
$
|
9.5
|
|
|
$
|
8.2
|
|
|
$
|
28.4
|
|
|
$
|
24.6
|
|
Interest Cost
|
11.1
|
|
|
11.1
|
|
|
33.5
|
|
|
33.3
|
|
||||
Expected Return on Plan Assets
|
(24.1
|
)
|
|
(24.4
|
)
|
|
(72.3
|
)
|
|
(73.3
|
)
|
||||
Amortization
|
|
|
|
|
|
|
|
||||||||
Net Actuarial Loss
|
7.5
|
|
|
5.4
|
|
|
22.3
|
|
|
16.1
|
|
||||
Prior Service Cost
|
(0.1
|
)
|
|
(0.1
|
)
|
|
(0.3
|
)
|
|
(0.3
|
)
|
||||
Net Periodic Pension Expense
|
$
|
3.9
|
|
|
$
|
0.2
|
|
|
$
|
11.6
|
|
|
$
|
0.4
|
|
Net Periodic Pension Expense (Benefit)
Non-U.S. Plans
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In Millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Interest Cost
|
$
|
1.4
|
|
|
$
|
1.8
|
|
|
$
|
4.2
|
|
|
$
|
5.3
|
|
Expected Return on Plan Assets
|
(1.5
|
)
|
|
(1.8
|
)
|
|
(4.4
|
)
|
|
(5.3
|
)
|
||||
Net Actuarial Loss Amortization
|
0.4
|
|
|
(0.4
|
)
|
|
1.2
|
|
|
(1.2
|
)
|
||||
Net Periodic Pension Expense (Benefit)
|
$
|
0.3
|
|
|
$
|
(0.4
|
)
|
|
$
|
1.0
|
|
|
$
|
(1.2
|
)
|
Net Periodic Pension Expense
Supplemental Plan
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In Millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Service Cost
|
$
|
0.9
|
|
|
$
|
0.8
|
|
|
$
|
2.7
|
|
|
$
|
2.3
|
|
Interest Cost
|
1.3
|
|
|
1.2
|
|
|
3.8
|
|
|
3.6
|
|
||||
Amortization
|
|
|
|
|
|
|
|
||||||||
Net Actuarial Loss
|
1.8
|
|
|
1.5
|
|
|
5.5
|
|
|
4.4
|
|
||||
Prior Service Cost
|
—
|
|
|
0.2
|
|
|
0.1
|
|
|
0.4
|
|
||||
Net Periodic Pension Expense
|
$
|
4.0
|
|
|
$
|
3.7
|
|
|
$
|
12.1
|
|
|
$
|
10.7
|
|
Net Periodic Postretirement Expense (Benefit)
Postretirement Health Care Plan
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In Millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Service Cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
Interest Cost
|
0.3
|
|
|
0.4
|
|
|
1.0
|
|
|
1.1
|
|
||||
Amortization
|
|
|
|
|
|
|
|
||||||||
Net Actuarial (Gain)
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(0.4
|
)
|
||||
Net Periodic Postretirement Expense
|
$
|
0.3
|
|
|
$
|
0.3
|
|
|
$
|
1.1
|
|
|
$
|
0.8
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In Millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Restricted Stock Unit Awards
|
$
|
11.8
|
|
|
$
|
12.7
|
|
|
$
|
38.7
|
|
|
$
|
41.7
|
|
Stock Options
|
1.3
|
|
|
2.2
|
|
|
9.0
|
|
|
10.7
|
|
||||
Performance Stock Units
|
3.7
|
|
|
3.1
|
|
|
11.2
|
|
|
8.9
|
|
||||
Total Share-Based Compensation Expense
|
16.8
|
|
|
18.0
|
|
|
58.9
|
|
|
61.3
|
|
||||
Tax Benefits Recognized
|
$
|
6.4
|
|
|
$
|
6.8
|
|
|
$
|
22.2
|
|
|
$
|
23.0
|
|
|
September 30, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
|
Notional
Value
|
|
Fair Value
|
|
Notional
Value
|
|
Fair Value
|
||||||||||||||||
(In Millions)
|
Asset
|
|
Liability
|
|
Asset
|
|
Liability
|
||||||||||||||||
Foreign Exchange Contracts
|
$
|
244,510.8
|
|
|
$
|
2,779.0
|
|
|
$
|
2,751.9
|
|
|
$
|
257,568.7
|
|
|
$
|
4,149.5
|
|
|
$
|
4,072.0
|
|
Interest Rate Contracts
|
6,046.3
|
|
|
139.1
|
|
|
136.1
|
|
|
5,353.8
|
|
|
105.5
|
|
|
101.3
|
|
||||||
Total
|
$
|
250,557.1
|
|
|
$
|
2,918.1
|
|
|
$
|
2,888.0
|
|
|
$
|
262,922.5
|
|
|
$
|
4,255.0
|
|
|
$
|
4,173.3
|
|
|
|
Amount of Derivative
Gain Recognized in Income
|
||||||||||||||
|
Location of Derivative Gain Recognized in Income
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In Millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|||||||||
Foreign Exchange Contracts
|
Foreign Exchange
Trading Income
|
$
|
62.9
|
|
|
$
|
46.4
|
|
|
$
|
209.3
|
|
|
$
|
149.4
|
|
Interest Rate Contracts
|
Security Commissions
and Trading Income
|
5.0
|
|
|
0.6
|
|
|
12.9
|
|
|
4.6
|
|
||||
Total
|
|
$
|
67.9
|
|
|
$
|
47.0
|
|
|
$
|
222.2
|
|
|
$
|
154.0
|
|
|
|
|
|
|
September 30, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
|
Derivative
Instrument
|
|
Risk
Classification
|
|
Notional
Value
|
|
Fair Value
|
|
Notional
Value
|
|
Fair Value
|
||||||||||||||||
(In Millions)
|
Asset
|
|
Liability
|
|
Asset
|
|
Liability
|
||||||||||||||||||||
Fair Value Hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Available for Sale Investment Securities
|
Interest Rate Swap Contracts
|
|
Interest
Rate
|
|
$
|
2,632.5
|
|
|
$
|
3.1
|
|
|
$
|
27.2
|
|
|
$
|
2,859.5
|
|
|
$
|
12.7
|
|
|
$
|
28.5
|
|
Senior Notes and Long-Term Subordinated Debt
|
Interest Rate Swap Contracts
|
|
Interest
Rate
|
|
1,250.0
|
|
|
133.0
|
|
|
2.2
|
|
|
1,250.0
|
|
|
112.8
|
|
|
2.0
|
|
||||||
Cash Flow Hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Forecasted Foreign Currency Denominated Transactions
|
Foreign Exchange Contracts
|
|
Foreign
Currency
|
|
387.5
|
|
|
10.0
|
|
|
15.9
|
|
|
344.9
|
|
|
6.0
|
|
|
14.8
|
|
||||||
Available for Sale Investment Securities
|
Interest Rate
Swap Contracts
|
|
Interest
Rate
|
|
10.0
|
|
|
—
|
|
|
—
|
|
|
10.0
|
|
|
—
|
|
|
—
|
|
||||||
Available for Sale Investment Securities
|
Interest Rate Option Contracts
|
|
Interest
Rate
|
|
925.0
|
|
|
7.6
|
|
|
—
|
|
|
625.0
|
|
|
1.3
|
|
|
—
|
|
||||||
Net Investment Hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net Investments in Non-U.S. Affiliates
|
Foreign Exchange Contracts
|
|
Foreign
Currency
|
|
1,957.7
|
|
|
28.9
|
|
|
4.2
|
|
|
1,795.4
|
|
|
118.9
|
|
|
3.4
|
|
||||||
Total
|
|
|
|
|
$
|
7,162.7
|
|
|
$
|
182.6
|
|
|
$
|
49.5
|
|
|
$
|
6,884.8
|
|
|
$
|
251.7
|
|
|
$
|
48.7
|
|
|
|
|
Location of
Derivative
Gain/(Loss)
Recognized in
Income
|
|
Amount of Derivative
Gain/(Loss)
Recognized in Income
|
||||||||||||||
|
Derivative
Instrument
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||||
(In Millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||||
Available for Sale Investment Securities
|
Interest Rate
Swap Contracts
|
|
Interest
Income
|
|
$
|
(22.5
|
)
|
|
$
|
5.1
|
|
|
$
|
(34.8
|
)
|
|
$
|
(21.9
|
)
|
Senior Notes and Long-Term Subordinated Debt
|
Interest Rate
Swap Contracts
|
|
Interest
Expense
|
|
43.7
|
|
|
5.8
|
|
|
45.8
|
|
|
66.0
|
|
||||
Total
|
|
|
|
|
$
|
21.2
|
|
|
$
|
10.9
|
|
|
$
|
11.0
|
|
|
$
|
44.1
|
|
(In Millions)
|
Foreign Exchange
Contracts (Before Tax)
|
|
Interest Rate Option
Contracts (Before Tax)
|
||||||||||||
Three Months Ended September 30,
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Net Gain/(Loss) Recognized in AOCI
|
$
|
1.8
|
|
|
$
|
(6.9
|
)
|
|
$
|
4.6
|
|
|
$
|
(0.7
|
)
|
Net Gain/(Loss) Reclassified from AOCI to Net Income
|
|
|
|
|
|
|
|
||||||||
Other Operating Income
|
(1.0
|
)
|
|
0.7
|
|
|
—
|
|
|
—
|
|
||||
Interest Income
|
—
|
|
|
—
|
|
|
1.4
|
|
|
0.1
|
|
||||
Other Operating Expense
|
(0.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
(1.5
|
)
|
|
$
|
0.7
|
|
|
$
|
1.4
|
|
|
$
|
0.1
|
|
(In Millions)
|
Foreign Exchange
Contracts (Before Tax)
|
|
Interest Rate Option
Contracts (Before Tax)
|
||||||||||||
Nine Months Ended September 30,
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Net Gain/(Loss) Recognized in AOCI
|
$
|
0.4
|
|
|
$
|
(5.8
|
)
|
|
$
|
6.1
|
|
|
$
|
(0.7
|
)
|
Net Gain/(Loss) Reclassified from AOCI to Net Income
|
|
|
|
|
|
|
|
||||||||
Other Operating Income
|
(4.9
|
)
|
|
3.4
|
|
|
—
|
|
|
—
|
|
||||
Interest Income
|
—
|
|
|
—
|
|
|
3.8
|
|
|
0.1
|
|
||||
Other Operating Expense
|
(1.3
|
)
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
(6.2
|
)
|
|
$
|
3.2
|
|
|
$
|
3.8
|
|
|
$
|
0.1
|
|
|
Hedging Gain
Recognized in OCI (Before Tax)
|
||||||||||||||
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In Millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Foreign Exchange Contracts
|
$
|
49.1
|
|
|
$
|
106.2
|
|
|
$
|
79.6
|
|
|
$
|
74.3
|
|
Sterling Denominated Subordinated Debt
|
—
|
|
|
13.7
|
|
|
5.0
|
|
|
5.4
|
|
||||
Total
|
$
|
49.1
|
|
|
$
|
119.9
|
|
|
$
|
84.6
|
|
|
$
|
79.7
|
|
(In Millions)
|
September 30, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
|
Notional
Value
|
|
Fair Value
|
|
Notional
Value
|
|
Fair Value
|
||||||||||||||||
Asset
|
|
Liability
|
|
Asset
|
|
Liability
|
|||||||||||||||||
Foreign Exchange Contracts
|
$
|
192.0
|
|
|
$
|
0.4
|
|
|
$
|
2.6
|
|
|
$
|
246.3
|
|
|
$
|
0.8
|
|
|
$
|
5.3
|
|
Other Financial Derivatives (1)
|
114.8
|
|
|
—
|
|
|
10.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
$
|
306.8
|
|
|
$
|
0.4
|
|
|
$
|
13.5
|
|
|
$
|
246.3
|
|
|
$
|
0.8
|
|
|
$
|
5.3
|
|
(1)
|
This line includes a swap related to the sale of certain Visa Class B common shares.
|
(1)
|
This line includes a swap related to the sale of certain Visa Class B common shares.
|
September 30, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
(In Millions)
|
Gross
Recognized
Assets
|
|
Gross
Amounts
Offset
|
|
Net
Amounts
Presented
|
|
Gross
Amounts
Not Offset
|
|
Net
Amount (3)
|
||||||||||
Derivative Assets (1)
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts Over the Counter (OTC)
|
$
|
2,051.9
|
|
|
$
|
1,002.1
|
|
|
$
|
1,049.8
|
|
|
$
|
—
|
|
|
$
|
1,049.8
|
|
Interest Rate Swaps OTC
|
206.7
|
|
|
29.7
|
|
|
177.0
|
|
|
—
|
|
|
177.0
|
|
|||||
Interest Rate Swaps Exchange Cleared
|
76.1
|
|
|
51.6
|
|
|
24.5
|
|
|
—
|
|
|
24.5
|
|
|||||
Cross Product Netting Adjustment
|
—
|
|
|
14.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Cross Product Collateral Adjustment
|
—
|
|
|
69.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total Derivatives Subject to a Master Netting Arrangement
|
2,334.7
|
|
|
1,167.0
|
|
|
1,167.7
|
|
|
—
|
|
|
1,167.7
|
|
|||||
Total Derivatives Not Subject to a Master Netting Arrangement
|
766.4
|
|
|
—
|
|
|
766.4
|
|
|
—
|
|
|
766.4
|
|
|||||
Total Derivatives
|
3,101.1
|
|
|
1,167.0
|
|
|
1,934.1
|
|
|
—
|
|
|
1,934.1
|
|
|||||
Securities Purchased under Agreements to Resell (2)
|
$
|
1,245.0
|
|
|
$
|
—
|
|
|
$
|
1,245.0
|
|
|
$
|
1,245.0
|
|
|
$
|
—
|
|
December 31, 2014
|
|
|
|
|
|
|
|
|
|
||||||||||
(In Millions)
|
Gross
Recognized
Assets
|
|
Gross
Amounts
Offset
|
|
Net
Amounts
Presented
|
|
Gross
Amounts
Not Offset
|
|
Net
Amount (3)
|
||||||||||
Derivative Assets (1)
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts OTC
|
$
|
3,442.8
|
|
|
$
|
1,889.8
|
|
|
$
|
1,553.0
|
|
|
$
|
—
|
|
|
$
|
1,553.0
|
|
Interest Rate Swaps OTC
|
183.9
|
|
|
32.1
|
|
|
151.8
|
|
|
—
|
|
|
151.8
|
|
|||||
Interest Rate Swaps Exchange Cleared
|
48.4
|
|
|
13.1
|
|
|
35.3
|
|
|
—
|
|
|
35.3
|
|
|||||
Cross Product Netting Adjustment
|
—
|
|
|
6.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Cross Product Collateral Adjustment
|
—
|
|
|
315.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total Derivatives Subject to a Master Netting Arrangement
|
3,675.1
|
|
|
2,257.1
|
|
|
1,418.0
|
|
|
—
|
|
|
1,418.0
|
|
|||||
Total Derivatives Not Subject to a Master Netting Arrangement
|
832.4
|
|
|
—
|
|
|
832.4
|
|
|
—
|
|
|
832.4
|
|
|||||
Total Derivatives
|
4,507.5
|
|
|
2,257.1
|
|
|
2,250.4
|
|
|
—
|
|
|
2,250.4
|
|
|||||
Securities Purchased under Agreements to Resell (2)
|
$
|
1,000.0
|
|
|
$
|
—
|
|
|
$
|
1,000.0
|
|
|
$
|
1,000.0
|
|
|
$
|
—
|
|
(1)
|
Derivative assets are reported in other assets in the consolidated balance sheets. Other assets (excluding derivative assets) totaled
$3.2 billion
and
$3.6 billion
as of
September 30, 2015
, and
December 31, 2014
, respectively.
|
(2)
|
Securities purchased under agreements to resell are reported in federal funds sold and securities purchased under agreements to resell in the consolidated balance sheets. Federal funds sold totaled
$10.6 million
and
$62.7 million
as of
September 30, 2015
, and
December 31, 2014
, respectively.
|
(3)
|
Northern Trust did not possess any cash collateral that was not offset in the consolidated balance sheets that could have been used to offset the net amounts presented in the consolidated balance sheets as of
September 30, 2015
, and
December 31, 2014
.
|
September 30, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
(In Millions)
|
Gross
Recognized
Liabilities
|
|
Gross
Amounts
Offset
|
|
Net
Amounts
Presented
|
|
Gross
Amounts
Not Offset
|
|
Net
Amount (2)
|
||||||||||
Derivative Liabilities (1)
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts OTC
|
$
|
2,373.9
|
|
|
$
|
1,002.1
|
|
|
$
|
1,371.8
|
|
|
$
|
—
|
|
|
$
|
1,371.8
|
|
Interest Rate Swaps OTC
|
113.9
|
|
|
29.7
|
|
|
84.2
|
|
|
—
|
|
|
84.2
|
|
|||||
Interest Rate Swaps Exchange Cleared
|
51.6
|
|
|
51.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other Financial Derivatives
|
10.9
|
|
|
—
|
|
|
10.9
|
|
|
—
|
|
|
10.9
|
|
|||||
Cross Product Netting Adjustment
|
—
|
|
|
14.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Cross Product Collateral Adjustment
|
—
|
|
|
1,163.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total Derivatives Subject to a Master Netting Arrangement
|
2,550.3
|
|
|
2,261.3
|
|
|
289.0
|
|
|
—
|
|
|
289.0
|
|
|||||
Total Derivatives Not Subject to a Master Netting Arrangement
|
400.7
|
|
|
—
|
|
|
400.7
|
|
|
—
|
|
|
400.7
|
|
|||||
Total Derivatives
|
2,951.0
|
|
|
2,261.3
|
|
|
689.7
|
|
|
—
|
|
|
689.7
|
|
|||||
Securities Sold under Agreements to Repurchase
|
$
|
484.5
|
|
|
$
|
—
|
|
|
$
|
484.5
|
|
|
$
|
484.5
|
|
|
$
|
—
|
|
December 31, 2014
|
|
|
|
|
|
|
|
|
|
||||||||||
(In Millions)
|
Gross
Recognized
Liabilities
|
|
Gross
Amounts
Offset
|
|
Net
Amounts
Presented
|
|
Gross
Amounts
Not Offset
|
|
Net
Amount (2)
|
||||||||||
Derivative Liabilities (1)
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts OTC
|
$
|
3,431.0
|
|
|
$
|
1,889.8
|
|
|
$
|
1,541.2
|
|
|
$
|
—
|
|
|
$
|
1,541.2
|
|
Interest Rate Swaps OTC
|
118.7
|
|
|
32.1
|
|
|
86.6
|
|
|
—
|
|
|
86.6
|
|
|||||
Interest Rate Swaps Exchange Cleared
|
13.1
|
|
|
13.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Cross Product Netting Adjustment
|
—
|
|
|
6.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Cross Product Collateral Adjustment
|
—
|
|
|
1,232.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total Derivatives Subject to a Master Netting Arrangement
|
3,562.8
|
|
|
3,173.3
|
|
|
389.5
|
|
|
—
|
|
|
389.5
|
|
|||||
Total Derivatives Not Subject to a Master Netting Arrangement
|
664.5
|
|
|
—
|
|
|
664.5
|
|
|
—
|
|
|
664.5
|
|
|||||
Total Derivatives
|
4,227.3
|
|
|
3,173.3
|
|
|
1,054.0
|
|
|
—
|
|
|
1,054.0
|
|
|||||
Securities Sold under Agreements to Repurchase
|
$
|
885.1
|
|
|
$
|
—
|
|
|
$
|
885.1
|
|
|
$
|
885.1
|
|
|
$
|
—
|
|
(1)
|
Derivative liabilities are reported in other liabilities in the consolidated balance sheets. Other liabilities (excluding derivative liabilities) totaled
$2.5 billion
and
$2.8 billion
as of
September 30, 2015
, and
December 31, 2014
, respectively.
|
(2)
|
Northern Trust did not place any cash collateral with counterparties that was not offset in the consolidated balance sheets that could have been used to offset the net amounts presented in the consolidated balance sheets as of
September 30, 2015
, and
December 31, 2014
.
|
Period
|
Total Number
of Shares Purchased (1) |
|
Average
Price Paid per Share |
|
Total Number of
Shares Purchased as Part of a Publicly Announced Plan (2) |
|
Maximum Number of
Shares that May Yet Be Purchased Under the Plan |
|||||
July 1-31, 2015
|
158,211
|
|
|
$
|
76.68
|
|
|
158,211
|
|
|
13,546,526
|
|
August 1-31, 2015
|
1,068,077
|
|
|
75.39
|
|
|
1,068,077
|
|
|
12,478,449
|
|
|
September 1-30, 2015
|
688,662
|
|
|
69.48
|
|
|
688,662
|
|
|
11,789,787
|
|
|
Total (Third Quarter)
|
1,914,950
|
|
|
$
|
73.37
|
|
|
1,914,950
|
|
|
11,789,787
|
|
(1)
|
Includes shares purchased from employees in connection with equity plan transactions such as the surrender of shares to pay an option exercise price or tax withholding
.
|
(2)
|
Repurchases were made pursuant to the repurchase program announced by the Corporation on April 22, 2015, under which the Corporation’s board of directors authorized the Corporation to repurchase up to 15.0 million shares of the Corporation’s common stock. The repurchase program has no expiration date.
|
|
|
NORTHERN TRUST CORPORATION
|
|
|
|
(Registrant)
|
|
|
|
|
|
Date:
|
October 28, 2015
|
By:
|
/s/ S. Biff Bowman
|
|
|
|
S. Biff Bowman
Executive Vice President and
Chief Financial Officer
(Principal Financial Officer)
|
|
|
|
|
Date:
|
October 28, 2015
|
By:
|
/s/ Jane Karpinski
|
|
|
|
Jane Karpinski
Senior Vice President and Controller
(Principal Accounting Officer)
|
Exhibit
Number
|
Description
|
|
|
10.1
|
Amendment Number Two, dated August 6, 2015 and effective January 1, 2015, to the Northern Trust Corporation Supplemental Thrift-Incentive Plan (as amended and restated effective as of January 1, 2008)
|
31.1
|
Rule 13a-14(a)/15d-14(a) Certification of CEO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
31.2
|
Rule 13a-14(a)/15d-14(a) Certification of CFO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
32
|
Certifications of CEO and CFO Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
101
|
Includes the following financial and related information from Northern Trust’s Quarterly Report on Form 10-Q as of and for the quarter ended September 30, 2015, formatted in Extensible Business Reporting Language (XBRL): (1) the Consolidated Balance Sheets as of September 30, 2015 and December 31, 2014, (2) the Consolidated Statements of Income for the three and nine months ended September 30, 2015 and 2014, (3) the Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2015 and 2014, (4) the Consolidated Statements of Changes in Stockholders’ Equity for the nine months ended September 30, 2015 and 2014, (5) the Consolidated Statements of Cash Flows for the nine months ended September 30, 2015 and 2014, and (6) Notes to Consolidated Financial Statements
|
“(iii)
|
An employee of the Company who is ineligible to participate in the Plan on the first day of a Plan Year (i) because he was not eligible for the Qualified Plan on the first day of the Plan Year, or (ii) because his Salary did not exceed the Code Section 401(a)(17) limitation for the prior Plan Year, or (iii) on account of both of the reasons described in clauses (i) and (ii), and who as of any subsequent date during such Plan Year is both eligible for the Qualified Plan and has received Salary in such Plan Year that exceeds the compensation limit set forth in Code Section 401(a)(17), shall become eligible to participate in the Plan for that Plan Year only for purposes of Supplemental Matching Contributions. Such eligibility shall be effective as of the date such employee has received Salary in such Plan Year that exceeds the Code Section 401(a)(17) limit or, if later, as of the date he first becomes eligible to receive Matching Contributions under the Qualified Plan in that Plan Year. Such Supplemental Matching Contributions shall be based on the employee's rate of contribution to the Qualified Plan on the date his contributions to the Qualified Plan ceased and on the Salary he receives in that Plan Year after first becoming eligible to participate in the Plan pursuant to the preceding two sentences."
|
|
NORTHERN TRUST CORPORATION
|
|
|
|
|
By:
|
/s/ Kathryn A. O’Neill
|
|
Name:
|
Kathryn A. O’Neill
|
|
Title:
|
Senior Vice President,
|
|
|
Compensation, Benefits and Global Mobility
|
|
1.
|
I have reviewed this report on Form 10-Q for the quarterly period ended September 30, 2015, of Northern Trust Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Frederick H. Waddell
|
Date: October 28, 2015
|
Frederick H. Waddell
|
|
Chief Executive Officer
|
|
(Principal Executive Officer)
|
1.
|
I have reviewed this report on Form 10-Q for the quarterly period ended September 30, 2015, of Northern Trust Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ S. Biff Bowman
|
Date: October 28, 2015
|
S. Biff Bowman
|
|
Chief Financial Officer
|
|
(Principal Financial Officer)
|
/s/ Frederick H. Waddell
|
Frederick H. Waddell
|
Chief Executive Officer
|
(Principal Executive Officer)
|
/s/ S. Biff Bowman
|
S. Biff Bowman
|
Chief Financial Officer
|
(Principal Financial Officer)
|