|
☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
36-2723087
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
50 South LaSalle Street
|
Chicago
|
Illinois
|
60603
|
(Address of principal executive offices)
|
|
|
(Zip Code)
|
Title of each class
|
Trading Symbol
|
Name of each exchange on which registered
|
Common Stock, $1.66 2/3 Par Value
|
NTRS
|
The NASDAQ Stock Market LLC
|
Depositary Shares, each representing 1/1000th interest in a share of Series C Non-Cumulative Perpetual Preferred Stock
|
NTRSP
|
The NASDAQ Stock Market LLC
|
Large accelerated filer
|
x
|
Accelerated filer
|
¨
|
|
|
|
|
Non-accelerated filer
|
¨
|
Smaller reporting company
|
☐
|
|
|
|
|
|
|
Emerging growth company
|
☐
|
|
|
|
|
Page
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||
CONDENSED INCOME STATEMENTS (In Millions)
|
2019
|
|
2018
|
|
% Change (1)
|
|
2019
|
|
2018
|
|
% Change (1)
|
||||||||||
Noninterest Income
|
$
|
1,089.2
|
|
|
$
|
1,092.8
|
|
|
—
|
%
|
|
$
|
2,148.1
|
|
|
$
|
2,184.8
|
|
|
(2
|
)%
|
Net Interest Income
|
417.4
|
|
|
413.3
|
|
|
1
|
|
|
839.4
|
|
|
797.3
|
|
|
5
|
|
||||
Provision for Credit Losses
|
(6.5
|
)
|
|
1.5
|
|
|
N/M
|
|
|
(6.5
|
)
|
|
(1.5
|
)
|
|
N/M
|
|
||||
Noninterest Expense
|
1,006.2
|
|
|
997.4
|
|
|
1
|
|
|
2,034.9
|
|
|
1,992.7
|
|
|
2
|
|
||||
Income before Income Taxes
|
506.9
|
|
|
507.2
|
|
|
—
|
|
|
959.1
|
|
|
990.9
|
|
|
(3
|
)
|
||||
Provision for Income Taxes
|
117.5
|
|
|
116.8
|
|
|
1
|
|
|
222.6
|
|
|
218.9
|
|
|
2
|
|
||||
Net Income
|
$
|
389.4
|
|
|
$
|
390.4
|
|
|
—
|
%
|
|
$
|
736.5
|
|
|
$
|
772.0
|
|
|
(5
|
)%
|
PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Income — Basic
|
$
|
1.76
|
|
|
$
|
1.69
|
|
|
4
|
%
|
|
$
|
3.25
|
|
|
$
|
3.28
|
|
|
(1
|
)%
|
— Diluted
|
1.75
|
|
|
1.68
|
|
|
4
|
|
|
3.23
|
|
|
3.26
|
|
|
(1
|
)
|
||||
Cash Dividends Declared Per Common Share
|
0.60
|
|
|
0.42
|
|
|
43
|
|
|
1.20
|
|
|
0.84
|
|
|
43
|
|
||||
Book Value — End of Period (EOP)
|
46.18
|
|
|
42.44
|
|
|
9
|
|
|
46.18
|
|
|
42.44
|
|
|
9
|
|
||||
Market Price — EOP
|
90.00
|
|
|
102.89
|
|
|
(13
|
)
|
|
90.00
|
|
|
102.89
|
|
|
(13
|
)
|
SELECTED BALANCE SHEET DATA (In Millions)
|
|
|
|
|
|
|||||
|
June 30, 2019
|
|
December 31, 2018
|
|
% Change (1)
|
|||||
End of Period:
|
|
|
|
|
|
|||||
Assets
|
$
|
126,550.9
|
|
|
$
|
132,212.5
|
|
|
(4
|
)%
|
Earning Assets
|
115,051.1
|
|
|
122,847.3
|
|
|
(6
|
)
|
||
Deposits
|
100,230.4
|
|
|
104,496.8
|
|
|
(4
|
)
|
||
Stockholders’ Equity
|
10,805.5
|
|
|
10,508.3
|
|
|
3
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
% Change (1)
|
|
2019
|
|
2018
|
|
% Change (1)
|
||||||||||
Average Balances:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
$
|
116,358.9
|
|
|
$
|
123,866.7
|
|
|
(6
|
)%
|
|
$
|
117,879.4
|
|
|
$
|
124,178.3
|
|
|
(5
|
)%
|
Earning Assets
|
105,709.1
|
|
|
114,414.6
|
|
|
(8
|
)
|
|
108,176.9
|
|
|
115,046.9
|
|
|
(6
|
)
|
||||
Deposits
|
89,345.9
|
|
|
95,630.8
|
|
|
(7
|
)
|
|
90,352.3
|
|
|
96,907.1
|
|
|
(7
|
)
|
||||
Stockholders’ Equity
|
10,538.1
|
|
|
10,202.1
|
|
|
3
|
|
|
10,483.8
|
|
|
10,170.1
|
|
|
3
|
|
CLIENT ASSETS (In Billions)
|
June 30, 2019
|
|
December 31, 2018
|
|
% Change (1)
|
|||||
Assets Under Custody/Administration (2)
|
$
|
11,322.0
|
|
|
$
|
10,125.3
|
|
|
12
|
%
|
Assets Under Custody
|
8,518.8
|
|
|
7,593.9
|
|
|
12
|
|
||
Assets Under Management
|
1,180.2
|
|
|
1,069.4
|
|
|
10
|
|
(1)
|
Percentage calculations are based on actual balances rather than the rounded amounts presented in the Consolidated Financial Highlights.
|
(2)
|
For the purposes of disclosing Assets Under Custody/Administration, to the extent that both custody and administration services are provided, the value of the assets is included only once.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Financial Ratios:
|
|
|
|
|
|
|
|
||||
Return on Average Common Equity
|
15.9
|
%
|
|
16.5
|
%
|
|
15.0
|
%
|
|
16.3
|
%
|
Return on Average Assets
|
1.34
|
|
|
1.26
|
|
|
1.26
|
|
|
1.25
|
|
Dividend Payout Ratio
|
34.3
|
|
|
25.0
|
|
|
37.2
|
|
|
25.8
|
|
Net Interest Margin (1)
|
1.61
|
|
|
1.48
|
|
|
1.59
|
|
|
1.43
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||
|
Advanced
Approach
|
|
Standardized
Approach
|
|
Advanced
Approach
|
|
Standardized
Approach
|
||||
Capital Ratios:
|
|
|
|
|
|
|
|
||||
Northern Trust Corporation
|
|
|
|
|
|
|
|
||||
Common Equity Tier 1
|
13.6
|
%
|
|
13.2
|
%
|
|
13.7
|
%
|
|
12.9
|
%
|
Tier 1
|
14.9
|
|
|
14.5
|
|
|
15.0
|
|
|
14.1
|
|
Total
|
16.7
|
|
|
16.4
|
|
|
16.9
|
|
|
16.1
|
|
Tier 1 Leverage
|
8.6
|
|
|
8.6
|
|
|
8.0
|
|
|
8.0
|
|
Supplementary Leverage
|
7.6
|
|
|
N/A
|
|
|
7.0
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
||||
The Northern Trust Company
|
|
|
|
|
|
|
|
||||
Common Equity Tier 1
|
14.1
|
%
|
|
13.4
|
%
|
|
14.1
|
%
|
|
13.1
|
%
|
Tier 1
|
14.1
|
|
|
13.4
|
|
|
14.1
|
|
|
13.1
|
|
Total
|
15.7
|
|
|
15.1
|
|
|
15.8
|
|
|
14.8
|
|
Tier 1 Leverage
|
7.8
|
|
|
7.8
|
|
|
7.3
|
|
|
7.3
|
|
Supplementary Leverage
|
6.9
|
|
|
N/A
|
|
|
6.4
|
|
|
N/A
|
|
(1)
|
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 28.
|
Noninterest Income
|
Three Months Ended June 30,
|
|
|
|
|
|||||||||
($ In Millions)
|
2019
|
|
2018
|
|
Change
|
|||||||||
Trust, Investment and Other Servicing Fees
|
$
|
955.5
|
|
|
$
|
942.9
|
|
|
$
|
12.6
|
|
|
1
|
%
|
Foreign Exchange Trading Income
|
60.5
|
|
|
78.9
|
|
|
(18.4
|
)
|
|
(23
|
)
|
|||
Treasury Management Fees
|
11.2
|
|
|
13.5
|
|
|
(2.3
|
)
|
|
(17
|
)
|
|||
Security Commissions and Trading Income
|
23.4
|
|
|
26.1
|
|
|
(2.7
|
)
|
|
(10
|
)
|
|||
Other Operating Income
|
38.9
|
|
|
31.4
|
|
|
7.5
|
|
|
23
|
|
|||
Investment Security (Losses) Gains, net
|
(0.3
|
)
|
|
—
|
|
|
(0.3
|
)
|
|
N/M
|
|
|||
Total Noninterest Income
|
$
|
1,089.2
|
|
|
$
|
1,092.8
|
|
|
$
|
(3.6
|
)
|
|
—
|
%
|
|
Daily Averages
|
|
Period-End
|
||||||||||||||
|
Three Months Ended June 30,
|
|
As of June 30,
|
||||||||||||||
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
S&P 500
|
2,882
|
|
|
2,702
|
|
|
7
|
%
|
|
2,942
|
|
|
2,718
|
|
|
8
|
%
|
MSCI EAFE (U.S. dollars)
|
1,888
|
|
|
2,018
|
|
|
(6
|
)
|
|
1,922
|
|
|
1,959
|
|
|
(2
|
)
|
MSCI EAFE (local currency)
|
1,115
|
|
|
1,144
|
|
|
(2
|
)
|
|
1,123
|
|
|
1,132
|
|
|
(1
|
)
|
|
As of June 30,
|
|||||||
|
2019
|
|
2018
|
|
Change
|
|||
|
|
|
|
|
|
|||
Barclays Capital U.S. Aggregate Bond Index
|
2,172
|
|
|
2,013
|
|
|
8
|
%
|
Barclays Capital Global Aggregate Bond Index
|
506
|
|
|
478
|
|
|
6
|
|
Assets Under Custody / Administration
|
June 30, 2019
|
|
March 31, 2019
|
|
June 30, 2018
|
|
Change Q2-19/Q1-19
|
|
Change Q2-19/Q2-18
|
||||||||
($ In Billions)
|
|||||||||||||||||
Corporate & Institutional
|
$
|
10,623.6
|
|
|
$
|
10,238.9
|
|
|
$
|
10,051.9
|
|
|
4
|
%
|
|
6
|
%
|
Wealth Management
|
698.4
|
|
|
688.5
|
|
|
660.6
|
|
|
1
|
|
|
6
|
|
|||
Total Assets Under Custody / Administration
|
$
|
11,322.0
|
|
|
$
|
10,927.4
|
|
|
$
|
10,712.5
|
|
|
4
|
%
|
|
6
|
%
|
Assets Under Custody
|
June 30, 2019
|
|
March 31, 2019
|
|
June 30, 2018
|
|
Change Q2-19/Q1-19
|
|
Change Q2-19/Q2-18
|
||||||||
($ In Billions)
|
|||||||||||||||||
Corporate & Institutional
|
$
|
7,820.6
|
|
|
$
|
7,529.1
|
|
|
$
|
7,451.1
|
|
|
4
|
%
|
|
5
|
%
|
Wealth Management
|
698.2
|
|
|
670.6
|
|
|
650.8
|
|
|
4
|
|
|
7
|
|
|||
Total Assets Under Custody
|
$
|
8,518.8
|
|
|
$
|
8,199.7
|
|
|
$
|
8,101.9
|
|
|
4
|
%
|
|
5
|
%
|
|
June 30, 2019
|
|
March 31, 2019
|
|
June 30, 2018
|
|||||||||||||||||||||
Assets Under Custody
|
C&IS
|
|
WM
|
|
Total
|
|
C&IS
|
|
WM
|
|
Total
|
|
C&IS
|
|
WM
|
|
Total
|
|||||||||
Equities
|
45
|
%
|
|
58
|
%
|
|
46
|
%
|
|
45
|
%
|
|
57
|
%
|
|
46
|
%
|
|
45
|
%
|
|
58
|
%
|
|
46
|
%
|
Fixed Income
|
38
|
|
|
19
|
|
|
36
|
|
|
38
|
|
|
19
|
|
|
36
|
|
|
38
|
|
|
18
|
|
|
36
|
|
Cash and Other Assets
|
15
|
|
|
23
|
|
|
16
|
|
|
15
|
|
|
24
|
|
|
16
|
|
|
15
|
|
|
24
|
|
|
16
|
|
Securities Lending Collateral
|
2
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
2
|
|
Assets Under Management
|
June 30, 2019
|
|
March 31, 2019
|
|
June 30, 2018
|
|
Change Q2-19/Q1-19
|
|
Change Q2-19/Q2-18
|
||||||||
($ In Billions)
|
|||||||||||||||||
Corporate & Institutional
|
$
|
887.0
|
|
|
$
|
867.9
|
|
|
$
|
862.1
|
|
|
2
|
%
|
|
3
|
%
|
Wealth Management
|
293.2
|
|
|
294.2
|
|
|
286.8
|
|
|
—
|
|
|
2
|
|
|||
Total Assets Under Management
|
$
|
1,180.2
|
|
|
$
|
1,162.1
|
|
|
$
|
1,148.9
|
|
|
2
|
%
|
|
3
|
%
|
($ In Billions)
|
June 30, 2019
|
|
March 31, 2019
|
|
June 30, 2018
|
||||||
Equities
|
$
|
613.8
|
|
|
$
|
591.8
|
|
|
$
|
587.8
|
|
Fixed Income
|
189.4
|
|
|
185.1
|
|
|
177.4
|
|
|||
Cash and Other Assets
|
213.6
|
|
|
220.1
|
|
|
209.9
|
|
|||
Securities Lending Collateral
|
163.4
|
|
|
165.1
|
|
|
173.8
|
|
|||
Total Assets Under Management
|
$
|
1,180.2
|
|
|
$
|
1,162.1
|
|
|
$
|
1,148.9
|
|
|
June 30, 2019
|
|
March 31, 2019
|
|
June 30, 2018
|
|||||||||||||||||||||
Assets Under Management
|
C&IS
|
|
WM
|
|
Total
|
|
C&IS
|
|
WM
|
|
Total
|
|
C&IS
|
|
WM
|
|
Total
|
|||||||||
Equities
|
52
|
%
|
|
52
|
%
|
|
52
|
%
|
|
51
|
%
|
|
50
|
%
|
|
51
|
%
|
|
51
|
%
|
|
52
|
%
|
|
51
|
%
|
Fixed Income
|
13
|
|
|
26
|
|
|
16
|
|
|
13
|
|
|
25
|
|
|
16
|
|
|
12
|
|
|
25
|
|
|
16
|
|
Cash and Other Assets
|
17
|
|
|
22
|
|
|
18
|
|
|
17
|
|
|
25
|
|
|
19
|
|
|
17
|
|
|
23
|
|
|
18
|
|
Securities Lending Collateral
|
18
|
|
|
—
|
|
|
14
|
|
|
19
|
|
|
—
|
|
|
14
|
|
|
20
|
|
|
—
|
|
|
15
|
|
|
|
Three Months Ended
|
||||||||||||||
($ In Billions)
|
June 30, 2019
|
March 31, 2019
|
December 31, 2018
|
September 30, 2018
|
June 30, 2018
|
|||||||||||
Beginning Balance of AUM
|
$
|
1,162.1
|
|
$
|
1,069.4
|
|
$
|
1,171.5
|
|
$
|
1,148.9
|
|
$
|
1,165.7
|
|
|
Inflows by Product
|
|
|
|
|
|
|||||||||||
|
Equity
|
51.4
|
|
49.8
|
|
43.5
|
|
42.3
|
|
44.7
|
|
|||||
|
Fixed Income
|
13.8
|
|
14.5
|
|
13.7
|
|
15.1
|
|
17.5
|
|
|||||
|
Cash & Other Assets
|
138.7
|
|
133.2
|
|
136.4
|
|
109.3
|
|
124.2
|
|
|||||
|
Securities Lending Collateral
|
60.0
|
|
74.3
|
|
51.8
|
|
23.3
|
|
22.4
|
|
|||||
|
|
|
|
|
|
|
||||||||||
Total Inflows
|
263.9
|
|
271.8
|
|
245.4
|
|
190.0
|
|
208.8
|
|
||||||
|
|
|
|
|
|
|
||||||||||
Outflows by Product
|
|
|
|
|
|
|||||||||||
|
Equity
|
(51.2
|
)
|
(48.8
|
)
|
(45.1
|
)
|
(43.9
|
)
|
(42.4
|
)
|
|||||
|
Fixed Income
|
(13.6
|
)
|
(14.5
|
)
|
(15.3
|
)
|
(12.8
|
)
|
(20.4
|
)
|
|||||
|
Cash & Other Assets
|
(145.9
|
)
|
(127.1
|
)
|
(135.6
|
)
|
(103.8
|
)
|
(130.6
|
)
|
|||||
|
Securities Lending Collateral
|
(61.7
|
)
|
(59.1
|
)
|
(68.4
|
)
|
(30.5
|
)
|
(36.1
|
)
|
|||||
|
|
|
|
|
|
|
||||||||||
Total Outflows
|
(272.4
|
)
|
(249.5
|
)
|
(264.4
|
)
|
(191.0
|
)
|
(229.5
|
)
|
||||||
|
|
|
|
|
|
|
||||||||||
Net Inflows / (Outflows)
|
(8.5
|
)
|
22.3
|
|
(19.0
|
)
|
(1.0
|
)
|
(20.7
|
)
|
||||||
|
|
|
|
|
|
|
||||||||||
Market Performance, Currency & Other
|
|
|
|
|
|
|||||||||||
|
Market Performance & Other
|
26.0
|
|
70.9
|
|
(80.8
|
)
|
24.6
|
|
11.5
|
|
|||||
|
Currency
|
0.6
|
|
(0.5
|
)
|
(2.3
|
)
|
(1.0
|
)
|
(7.6
|
)
|
|||||
Total Market Performance, Currency & Other
|
26.6
|
|
70.4
|
|
(83.1
|
)
|
23.6
|
|
3.9
|
|
||||||
|
|
|
|
|
|
|
||||||||||
Ending Balance of AUM
|
$
|
1,180.2
|
|
$
|
1,162.1
|
|
$
|
1,069.4
|
|
$
|
1,171.5
|
|
$
|
1,148.9
|
|
Other Operating Income
|
Three Months Ended June 30,
|
|
|
|
|
|||||||||
($ In Millions)
|
2019
|
|
2018
|
|
Change
|
|||||||||
Loan Service Fees
|
$
|
12.5
|
|
|
$
|
12.7
|
|
|
$
|
(0.2
|
)
|
|
(2
|
)%
|
Banking Service Fees
|
11.3
|
|
|
11.7
|
|
|
(0.4
|
)
|
|
(3
|
)
|
|||
Other Income
|
15.1
|
|
|
7.0
|
|
|
8.1
|
|
|
111
|
|
|||
Total Other Operating Income
|
$
|
38.9
|
|
|
$
|
31.4
|
|
|
$
|
7.5
|
|
|
23
|
%
|
|
NORTHERN TRUST CORPORATION
|
||||||||||||||||||||
(Interest and Rate on a Fully Taxable Equivalent Basis)
|
SECOND QUARTER
|
||||||||||||||||||||
2019
|
|
2018
|
|||||||||||||||||||
($ In Millions)
|
Interest
|
|
Average
Balance
|
|
Rate (6)
|
|
Interest
|
|
Average
Balance
|
|
Rate (6)
|
||||||||||
Average Earning Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal Reserve and Other Central Bank Deposits and Other (1)
|
$
|
46.1
|
|
|
$
|
19,236.2
|
|
|
0.96
|
%
|
|
$
|
48.8
|
|
|
$
|
24,512.8
|
|
|
0.80
|
%
|
Interest-Bearing Due from and Deposits with Banks (2)
|
19.2
|
|
|
5,811.9
|
|
|
1.33
|
|
|
18.3
|
|
|
6,556.9
|
|
|
1.12
|
|
||||
Federal Funds Sold and Securities Purchased under Agreements to Resell
|
4.2
|
|
|
650.9
|
|
|
2.62
|
|
|
8.2
|
|
|
1,417.1
|
|
|
2.33
|
|
||||
Securities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government
|
27.7
|
|
|
5,150.3
|
|
|
2.16
|
|
|
26.7
|
|
|
5,718.3
|
|
|
1.87
|
|
||||
Obligations of States and Political Subdivisions
|
5.2
|
|
|
770.5
|
|
|
2.68
|
|
|
3.6
|
|
|
785.4
|
|
|
1.83
|
|
||||
Government Sponsored Agency
|
150.2
|
|
|
22,397.0
|
|
|
2.69
|
|
|
109.3
|
|
|
20,215.0
|
|
|
2.17
|
|
||||
Other (3)
|
92.8
|
|
|
20,593.4
|
|
|
1.81
|
|
|
88.6
|
|
|
22,973.7
|
|
|
1.55
|
|
||||
Total Securities
|
275.9
|
|
|
48,911.2
|
|
|
2.26
|
|
|
228.2
|
|
|
49,692.4
|
|
|
1.84
|
|
||||
Loans and Leases (4)
|
302.5
|
|
|
31,098.9
|
|
|
3.90
|
|
|
273.5
|
|
|
32,235.4
|
|
|
3.40
|
|
||||
Total Earning Assets
|
647.9
|
|
|
105,709.1
|
|
|
2.46
|
|
|
577.0
|
|
|
114,414.6
|
|
|
2.02
|
|
||||
Allowance for Credit Losses Assigned to Loans and Leases
|
—
|
|
|
(115.1
|
)
|
|
—
|
|
|
—
|
|
|
(126.4
|
)
|
|
—
|
|
||||
Cash and Due from Banks and Other Central Bank Deposits (5)
|
—
|
|
|
2,784.3
|
|
|
—
|
|
|
—
|
|
|
2,440.5
|
|
|
—
|
|
||||
Buildings and Equipment
|
—
|
|
|
412.5
|
|
|
—
|
|
|
—
|
|
|
440.0
|
|
|
—
|
|
||||
Client Security Settlement Receivables
|
—
|
|
|
1,044.6
|
|
|
—
|
|
|
—
|
|
|
942.1
|
|
|
—
|
|
||||
Goodwill
|
—
|
|
|
681.4
|
|
|
—
|
|
|
—
|
|
|
615.9
|
|
|
—
|
|
||||
Other Assets
|
—
|
|
|
5,842.1
|
|
|
—
|
|
|
—
|
|
|
5,140.0
|
|
|
—
|
|
||||
Total Assets
|
$
|
—
|
|
|
$
|
116,358.9
|
|
|
—
|
%
|
|
$
|
—
|
|
|
$
|
123,866.7
|
|
|
—
|
%
|
Average Source of Funds
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Savings, Money Market and Other
|
$
|
42.6
|
|
|
$
|
15,950.9
|
|
|
1.07
|
%
|
|
$
|
17.0
|
|
|
$
|
15,565.0
|
|
|
0.44
|
%
|
Savings Certificates and Other Time
|
4.2
|
|
|
888.6
|
|
|
1.89
|
|
|
2.0
|
|
|
896.6
|
|
|
0.87
|
|
||||
Non-U.S. Offices — Interest-Bearing
|
87.1
|
|
|
54,679.9
|
|
|
0.64
|
|
|
58.3
|
|
|
57,684.5
|
|
|
0.41
|
|
||||
Total Interest-Bearing Deposits
|
133.9
|
|
|
71,519.4
|
|
|
0.75
|
|
|
77.3
|
|
|
74,146.1
|
|
|
0.42
|
|
||||
Short-Term Borrowings
|
58.3
|
|
|
9,427.6
|
|
|
2.48
|
|
|
51.5
|
|
|
11,336.2
|
|
|
1.82
|
|
||||
Senior Notes
|
18.5
|
|
|
2,361.4
|
|
|
3.14
|
|
|
11.7
|
|
|
1,497.6
|
|
|
3.14
|
|
||||
Long-Term Debt
|
10.0
|
|
|
1,131.6
|
|
|
3.54
|
|
|
12.0
|
|
|
1,410.8
|
|
|
3.41
|
|
||||
Floating Rate Capital Debt
|
2.1
|
|
|
277.6
|
|
|
3.17
|
|
|
1.9
|
|
|
277.5
|
|
|
2.80
|
|
||||
Total Interest-Related Funds
|
222.8
|
|
|
84,717.6
|
|
|
1.06
|
|
|
154.4
|
|
|
88,668.2
|
|
|
0.70
|
|
||||
Interest Rate Spread
|
—
|
|
|
—
|
|
|
1.40
|
|
|
—
|
|
|
—
|
|
|
1.32
|
|
||||
Demand and Other Noninterest-Bearing Deposits
|
—
|
|
|
17,826.5
|
|
|
—
|
|
|
—
|
|
|
21,484.7
|
|
|
—
|
|
||||
Other Liabilities
|
—
|
|
|
3,276.7
|
|
|
—
|
|
|
—
|
|
|
3,511.7
|
|
|
—
|
|
||||
Stockholders’ Equity
|
—
|
|
|
10,538.1
|
|
|
—
|
|
|
—
|
|
|
10,202.1
|
|
|
—
|
|
||||
Total Liabilities and Stockholders’ Equity
|
$
|
—
|
|
|
$
|
116,358.9
|
|
|
—
|
%
|
|
$
|
—
|
|
|
$
|
123,866.7
|
|
|
—
|
%
|
Net Interest Income/Margin (FTE Adjusted)
|
$
|
425.1
|
|
|
$
|
—
|
|
|
1.61
|
%
|
|
$
|
422.6
|
|
|
$
|
—
|
|
|
1.48
|
%
|
Net Interest Income/Margin (Unadjusted)
|
$
|
417.4
|
|
|
$
|
—
|
|
|
1.58
|
%
|
|
$
|
413.3
|
|
|
$
|
—
|
|
|
1.45
|
%
|
|
Three Months Ended June 30, 2019/2018
|
||||||||||
|
Change Due To
|
||||||||||
(In Millions)
|
Average
Balance
|
|
Rate
|
|
Total
|
||||||
Earning Assets (FTE)
|
$
|
(63.4
|
)
|
|
$
|
134.3
|
|
|
$
|
70.9
|
|
Interest-Related Funds
|
(4.8
|
)
|
|
73.2
|
|
|
68.4
|
|
|||
Net Interest Income (FTE)
|
$
|
(58.6
|
)
|
|
$
|
61.1
|
|
|
$
|
2.5
|
|
(1)
|
Federal Reserve and Other Central Bank Deposits and Other includes collateral deposits with certain securities depositories and clearing houses, which are classified in Other Assets in the consolidated balance sheets as of June 30, 2019.
|
(2)
|
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.
|
(3)
|
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 June 30, 2019 and 2018.
|
(4)
|
Average balances include nonaccrual loans. Lease financing receivable balances are reduced by deferred income.
|
(5)
|
Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets.
|
(6)
|
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), a non-generally accepted accounting principle (GAAP) financial measure, 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 24.9% and 24.8% for the three months ended June 30, 2019 and 2018, respectively. Total taxable equivalent interest adjustments amounted to $7.7 million and $9.3 million for the three months ended June 30, 2019 and 2018, respectively. A reconciliation of net interest income and net interest margin on a GAAP basis to net interest income and net interest margin on an FTE basis (each of which is a non-GAAP financial measure) is provided on page 28.
|
Noninterest Expense
|
Three Months Ended June 30,
|
|
|
|
|
|||||||||
($ In Millions)
|
2019
|
|
2018
|
|
Change
|
|||||||||
Compensation
|
$
|
455.5
|
|
|
$
|
454.7
|
|
|
$
|
0.8
|
|
|
—
|
%
|
Employee Benefits
|
89.3
|
|
|
88.8
|
|
|
0.5
|
|
|
1
|
|
|||
Outside Services
|
186.4
|
|
|
185.6
|
|
|
0.8
|
|
|
—
|
|
|||
Equipment and Software
|
147.2
|
|
|
144.2
|
|
|
3.0
|
|
|
2
|
|
|||
Occupancy
|
50.9
|
|
|
48.8
|
|
|
2.1
|
|
|
4
|
|
|||
Other Operating Expense
|
76.9
|
|
|
75.3
|
|
|
1.6
|
|
|
2
|
|
|||
Total Noninterest Expense
|
$
|
1,006.2
|
|
|
$
|
997.4
|
|
|
$
|
8.8
|
|
|
1
|
%
|
Other Operating Expense
|
Three Months Ended June 30,
|
|
|
|
|
|||||||||
($ In Millions)
|
2019
|
|
2018
|
|
Change
|
|||||||||
Business Promotion
|
$
|
21.7
|
|
|
$
|
21.9
|
|
|
$
|
(0.2
|
)
|
|
(1
|
)%
|
Staff Related
|
8.6
|
|
|
10.3
|
|
|
(1.7
|
)
|
|
(17
|
)
|
|||
FDIC Insurance Premiums
|
2.3
|
|
|
7.6
|
|
|
(5.3
|
)
|
|
(70
|
)
|
|||
Other Intangibles Amortization
|
4.2
|
|
|
4.3
|
|
|
(0.1
|
)
|
|
(4
|
)
|
|||
Other Expenses
|
40.1
|
|
|
31.2
|
|
|
8.9
|
|
|
28
|
|
|||
Total Other Operating Expense
|
$
|
76.9
|
|
|
$
|
75.3
|
|
|
$
|
1.6
|
|
|
2
|
%
|
Three Months Ended June 30,
|
Corporate &
Institutional Services
|
|
Wealth
Management
|
|
Treasury and
Other
|
|
Total
Consolidated
|
||||||||||||||||||||||||
($ In Millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
Noninterest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Trust, Investment and Other Servicing Fees
|
$
|
549.4
|
|
|
$
|
552.2
|
|
|
$
|
406.1
|
|
|
$
|
390.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
955.5
|
|
|
$
|
942.9
|
|
Foreign Exchange Trading Income
|
57.3
|
|
|
60.1
|
|
|
3.2
|
|
|
1.0
|
|
|
—
|
|
|
17.8
|
|
|
60.5
|
|
|
78.9
|
|
||||||||
Other Noninterest Income
|
44.8
|
|
|
45.0
|
|
|
31.5
|
|
|
26.7
|
|
|
(3.1
|
)
|
|
(0.7
|
)
|
|
73.2
|
|
|
71.0
|
|
||||||||
Net Interest Income*
|
229.6
|
|
|
247.9
|
|
|
195.5
|
|
|
209.6
|
|
|
—
|
|
|
(34.9
|
)
|
|
425.1
|
|
|
422.6
|
|
||||||||
Revenue*
|
881.1
|
|
|
905.2
|
|
|
636.3
|
|
|
628.0
|
|
|
(3.1
|
)
|
|
(17.8
|
)
|
|
1,514.3
|
|
|
1,515.4
|
|
||||||||
Provision for Credit Losses
|
(2.4
|
)
|
|
3.0
|
|
|
(4.1
|
)
|
|
(1.5
|
)
|
|
—
|
|
|
—
|
|
|
(6.5
|
)
|
|
1.5
|
|
||||||||
Noninterest Expense
|
633.3
|
|
|
599.3
|
|
|
372.1
|
|
|
369.5
|
|
|
0.8
|
|
|
28.6
|
|
|
1,006.2
|
|
|
997.4
|
|
||||||||
Income before Income Taxes*
|
250.2
|
|
|
302.9
|
|
|
268.3
|
|
|
260.0
|
|
|
(3.9
|
)
|
|
(46.4
|
)
|
|
514.6
|
|
|
516.5
|
|
||||||||
Provision for Income Taxes*
|
58.3
|
|
|
63.0
|
|
|
67.9
|
|
|
64.1
|
|
|
(1.0
|
)
|
|
(1.0
|
)
|
|
125.2
|
|
|
126.1
|
|
||||||||
Net Income
|
$
|
191.9
|
|
|
$
|
239.9
|
|
|
$
|
200.4
|
|
|
$
|
195.9
|
|
|
$
|
(2.9
|
)
|
|
$
|
(45.4
|
)
|
|
$
|
389.4
|
|
|
$
|
390.4
|
|
Percentage of Consolidated Net Income
|
49
|
%
|
|
62
|
%
|
|
52
|
%
|
|
50
|
%
|
|
(1
|
)%
|
|
(12
|
)%
|
|
100
|
%
|
|
100
|
%
|
||||||||
Average Assets
|
$
|
86,696.3
|
|
|
$
|
82,153.1
|
|
|
$
|
29,662.6
|
|
|
$
|
26,086.3
|
|
|
$
|
—
|
|
|
$
|
15,627.3
|
|
|
$
|
116,358.9
|
|
|
$
|
123,866.7
|
|
Six Months Ended June 30,
|
Corporate &
Institutional Services |
|
Wealth
Management |
|
Treasury and
Other |
|
Total
Consolidated |
||||||||||||||||||||||||
($ In Millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
Noninterest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Trust, Investment and Other Servicing Fees
|
$
|
1,084.6
|
|
|
$
|
1,096.5
|
|
|
$
|
799.8
|
|
|
$
|
784.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,884.4
|
|
|
$
|
1,880.6
|
|
Foreign Exchange Trading Income
|
117.0
|
|
|
122.5
|
|
|
9.7
|
|
|
2.2
|
|
|
—
|
|
|
32.7
|
|
|
126.7
|
|
|
157.4
|
|
||||||||
Other Noninterest Income
|
88.2
|
|
|
91.6
|
|
|
57.0
|
|
|
52.4
|
|
|
(8.2
|
)
|
|
2.8
|
|
|
137.0
|
|
|
146.8
|
|
||||||||
Net Interest Income*
|
464.4
|
|
|
477.3
|
|
|
390.5
|
|
|
408.4
|
|
|
—
|
|
|
(70.4
|
)
|
|
854.9
|
|
|
815.3
|
|
||||||||
Revenue*
|
1,754.2
|
|
|
1,787.9
|
|
|
1,257.0
|
|
|
1,247.1
|
|
|
(8.2
|
)
|
|
(34.9
|
)
|
|
3,003.0
|
|
|
3,000.1
|
|
||||||||
Provision for Credit Losses
|
(3.5
|
)
|
|
(0.9
|
)
|
|
(3.0
|
)
|
|
(0.6
|
)
|
|
—
|
|
|
—
|
|
|
(6.5
|
)
|
|
(1.5
|
)
|
||||||||
Noninterest Expense
|
1,281.3
|
|
|
1,184.9
|
|
|
752.0
|
|
|
735.2
|
|
|
1.6
|
|
|
72.6
|
|
|
2,034.9
|
|
|
1,992.7
|
|
||||||||
Income before Income Taxes*
|
476.4
|
|
|
603.9
|
|
|
508.0
|
|
|
512.5
|
|
|
(9.8
|
)
|
|
(107.5
|
)
|
|
974.6
|
|
|
1,008.9
|
|
||||||||
Provision for Income Taxes*
|
111.9
|
|
|
129.8
|
|
|
128.7
|
|
|
126.5
|
|
|
(2.5
|
)
|
|
(19.4
|
)
|
|
238.1
|
|
|
236.9
|
|
||||||||
Net Income
|
$
|
364.5
|
|
|
$
|
474.1
|
|
|
$
|
379.3
|
|
|
$
|
386.0
|
|
|
$
|
(7.3
|
)
|
|
$
|
(88.1
|
)
|
|
$
|
736.5
|
|
|
$
|
772.0
|
|
Percentage of Consolidated Net Income
|
49
|
%
|
|
61
|
%
|
|
52
|
%
|
|
50
|
%
|
|
(1
|
)%
|
|
(11
|
)%
|
|
100
|
%
|
|
100
|
%
|
||||||||
Average Assets
|
$
|
88,512.4
|
|
|
$
|
82,891.4
|
|
|
$
|
29,367.0
|
|
|
$
|
26,097.1
|
|
|
$
|
—
|
|
|
$
|
15,189.8
|
|
|
$
|
117,879.4
|
|
|
$
|
124,178.3
|
|
|
Three Months Ended June 30,
|
|
|
|
|
|||||||||
($ In Millions)
|
2019
|
|
2018
|
|
Change
|
|||||||||
Custody and Fund Administration
|
$
|
385.1
|
|
|
$
|
376.7
|
|
|
$
|
8.4
|
|
|
2
|
%
|
Investment Management
|
110.8
|
|
|
113.1
|
|
|
(2.3
|
)
|
|
(2
|
)
|
|||
Securities Lending
|
21.8
|
|
|
30.2
|
|
|
(8.4
|
)
|
|
(28
|
)
|
|||
Other
|
31.7
|
|
|
32.2
|
|
|
(0.5
|
)
|
|
(2
|
)
|
|||
Total C&IS Trust, Investment and Other Servicing Fees
|
$
|
549.4
|
|
|
$
|
552.2
|
|
|
$
|
(2.8
|
)
|
|
(1
|
)%
|
|
Three Months Ended June 30,
|
|
|
|
|
|||||||||
($ In Millions)
|
2019
|
|
2018
|
|
Change
|
|||||||||
Central
|
$
|
153.1
|
|
|
$
|
150.7
|
|
|
$
|
2.4
|
|
|
2
|
%
|
East
|
104.3
|
|
|
97.0
|
|
|
7.3
|
|
|
8
|
|
|||
West
|
82.8
|
|
|
80.4
|
|
|
2.4
|
|
|
3
|
|
|||
Global Family Office
|
65.9
|
|
|
62.6
|
|
|
3.3
|
|
|
5
|
|
|||
Total Wealth Management Trust, Investment and Other Servicing Fees
|
$
|
406.1
|
|
|
$
|
390.7
|
|
|
$
|
15.4
|
|
|
4
|
%
|
C&IS Trust, Investment and Other Servicing Fees
|
Six Months Ended June 30,
|
|
|
|
|
|||||||||
($ In Millions)
|
2019
|
|
2018
|
|
Change
|
|||||||||
Custody and Fund Administration
|
$
|
760.2
|
|
|
$
|
750.6
|
|
|
$
|
9.6
|
|
|
1
|
%
|
Investment Management
|
215.1
|
|
|
222.8
|
|
|
(7.7
|
)
|
|
(3
|
)
|
|||
Securities Lending
|
44.5
|
|
|
56.2
|
|
|
(11.7
|
)
|
|
(21
|
)
|
|||
Other
|
64.8
|
|
|
66.9
|
|
|
(2.1
|
)
|
|
(3
|
)
|
|||
Total
|
$
|
1,084.6
|
|
|
$
|
1,096.5
|
|
|
$
|
(11.9
|
)
|
|
(1
|
)%
|
|
Six Months Ended June 30,
|
|
|
|
|
|||||||||
($ In Millions)
|
2019
|
|
2018
|
|
Change
|
|||||||||
Wealth Management Trust, Investment and Other Servicing Fees
|
|
|
|
|
|
|
|
|||||||
Central
|
$
|
303.8
|
|
|
$
|
304.6
|
|
|
$
|
(0.8
|
)
|
|
—
|
%
|
East
|
205.2
|
|
|
195.9
|
|
|
9.3
|
|
|
5
|
|
|||
West
|
162.3
|
|
|
159.0
|
|
|
3.3
|
|
|
2
|
|
|||
Global Family Office
|
128.5
|
|
|
124.6
|
|
|
3.9
|
|
|
3
|
|
|||
Total
|
$
|
799.8
|
|
|
$
|
784.1
|
|
|
$
|
15.7
|
|
|
2
|
%
|
Other Operating Income
|
Six Months Ended June 30,
|
|
|
|
|
|||||||||
($ In Millions)
|
2019
|
|
2018
|
|
Change
|
|||||||||
Loan Service Fees
|
$
|
24.6
|
|
|
$
|
25.2
|
|
|
$
|
(0.6
|
)
|
|
(3
|
)%
|
Banking Service Fees
|
22.4
|
|
|
24.2
|
|
|
(1.8
|
)
|
|
(7
|
)
|
|||
Other Income
|
20.9
|
|
|
16.8
|
|
|
4.1
|
|
|
24
|
|
|||
Total Other Operating Income
|
$
|
67.9
|
|
|
$
|
66.2
|
|
|
$
|
1.7
|
|
|
2
|
%
|
|
NORTHERN TRUST CORPORATION
|
||||||||||||||||||||
(Interest and Rate on a Fully Taxable Equivalent Basis)
|
Six Months Ended June 30,
|
||||||||||||||||||||
2019
|
|
2018
|
|||||||||||||||||||
($ In Millions)
|
Interest
|
|
Average
Balance
|
|
Rate (6)
|
|
Interest
|
|
Average
Balance
|
|
Rate (6)
|
||||||||||
Average Earning Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal Reserve and Other Central Bank Deposits and Other (1)
|
$
|
107.5
|
|
|
$
|
19,697.1
|
|
|
1.10
|
%
|
|
$
|
96.2
|
|
|
$
|
25,498.4
|
|
|
0.76
|
%
|
Interest-Bearing Due from and Deposits with Banks (2)
|
37.2
|
|
|
6,130.3
|
|
|
1.22
|
|
|
38.2
|
|
|
6,737.6
|
|
|
1.14
|
|
||||
Federal Funds Sold and Securities Purchased under Agreements to Resell
|
11.1
|
|
|
813.6
|
|
|
2.75
|
|
|
15.1
|
|
|
1,442.0
|
|
|
2.11
|
|
||||
Securities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government
|
56.4
|
|
|
5,194.3
|
|
|
2.19
|
|
|
50.5
|
|
|
5,726.8
|
|
|
1.78
|
|
||||
Obligations of States and Political Subdivisions
|
10.1
|
|
|
770.5
|
|
|
1.31
|
|
|
6.0
|
|
|
732.1
|
|
|
1.63
|
|
||||
Government Sponsored Agency
|
298.9
|
|
|
22,417.8
|
|
|
2.69
|
|
|
190.7
|
|
|
19,535.4
|
|
|
1.97
|
|
||||
Other (3)
|
194.9
|
|
|
22,009.4
|
|
|
1.79
|
|
|
167.8
|
|
|
23,023.5
|
|
|
1.47
|
|
||||
Total Securities
|
560.3
|
|
|
50,392.0
|
|
|
2.24
|
|
|
415.0
|
|
|
49,017.8
|
|
|
1.71
|
|
||||
Loans and Leases (4)
|
602.4
|
|
|
31,143.9
|
|
|
3.90
|
|
|
527.1
|
|
|
32,351.1
|
|
|
3.29
|
|
||||
Total Earning Assets
|
1,318.5
|
|
|
108,176.9
|
|
|
2.46
|
|
|
1,091.6
|
|
|
115,046.9
|
|
|
1.91
|
|
||||
Allowance for Credit Losses Assigned to Loans and Leases
|
—
|
|
|
(114.6
|
)
|
|
—
|
|
|
—
|
|
|
(128.7
|
)
|
|
—
|
|
||||
Cash and Due from Banks and Other Central Bank Deposits (5)
|
—
|
|
|
2,364.8
|
|
|
—
|
|
|
—
|
|
|
2,516.4
|
|
|
—
|
|
||||
Buildings and Equipment
|
—
|
|
|
418.4
|
|
|
—
|
|
|
—
|
|
|
448.5
|
|
|
—
|
|
||||
Client Security Settlement Receivables
|
—
|
|
|
1,013.2
|
|
|
—
|
|
|
—
|
|
|
976.9
|
|
|
—
|
|
||||
Goodwill
|
—
|
|
|
678.5
|
|
|
—
|
|
|
—
|
|
|
613.4
|
|
|
—
|
|
||||
Other Assets
|
—
|
|
|
5,342.2
|
|
|
—
|
|
|
—
|
|
|
4,704.9
|
|
|
—
|
|
||||
Total Assets
|
$
|
—
|
|
|
$
|
117,879.4
|
|
|
—
|
%
|
|
$
|
—
|
|
|
$
|
124,178.3
|
|
|
—
|
%
|
Average Source of Funds
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Savings, Money Market and Other
|
$
|
77.6
|
|
|
$
|
15,166.2
|
|
|
1.03
|
%
|
|
$
|
29.8
|
|
|
$
|
15,739.8
|
|
|
0.38
|
%
|
Savings Certificates and Other Time
|
7.0
|
|
|
825.3
|
|
|
1.70
|
|
|
4.1
|
|
|
977.1
|
|
|
0.85
|
|
||||
Non-U.S. Offices — Interest-Bearing
|
196.9
|
|
|
56,518.4
|
|
|
0.70
|
|
|
106.5
|
|
|
58,437.8
|
|
|
0.37
|
|
||||
Total Interest-Bearing Deposits
|
281.5
|
|
|
72,509.9
|
|
|
0.78
|
|
|
140.4
|
|
|
75,154.7
|
|
|
0.38
|
|
||||
Short-Term Borrowings
|
123.4
|
|
|
9,957.8
|
|
|
2.50
|
|
|
86.0
|
|
|
10,376.1
|
|
|
1.67
|
|
||||
Senior Notes
|
34.3
|
|
|
2,188.7
|
|
|
3.17
|
|
|
23.4
|
|
|
1,497.5
|
|
|
3.16
|
|
||||
Long-Term Debt
|
20.0
|
|
|
1,122.3
|
|
|
3.59
|
|
|
23.0
|
|
|
1,418.6
|
|
|
3.27
|
|
||||
Floating Rate Capital Debt
|
4.4
|
|
|
277.6
|
|
|
3.22
|
|
|
3.5
|
|
|
277.5
|
|
|
2.51
|
|
||||
Total Interest-Related Funds
|
463.6
|
|
|
86,056.3
|
|
|
1.09
|
|
|
276.3
|
|
|
88,724.4
|
|
|
0.63
|
|
||||
Interest Rate Spread
|
—
|
|
|
—
|
|
|
1.37
|
|
|
—
|
|
|
—
|
|
|
1.28
|
|
||||
Demand and Other Noninterest-Bearing Deposits
|
—
|
|
|
17,842.4
|
|
|
—
|
|
|
—
|
|
|
21,752.4
|
|
|
—
|
|
||||
Other Liabilities
|
—
|
|
|
3,496.9
|
|
|
—
|
|
|
—
|
|
|
3,531.4
|
|
|
—
|
|
||||
Stockholders’ Equity
|
—
|
|
|
10,483.8
|
|
|
—
|
|
|
—
|
|
|
10,170.1
|
|
|
—
|
|
||||
Total Liabilities and Stockholders’ Equity
|
$
|
—
|
|
|
$
|
117,879.4
|
|
|
—
|
%
|
|
$
|
—
|
|
|
$
|
124,178.3
|
|
|
—
|
%
|
Net Interest Income/Margin (FTE Adjusted)
|
$
|
854.9
|
|
|
$
|
—
|
|
|
1.59
|
%
|
|
$
|
815.3
|
|
|
$
|
—
|
|
|
1.43
|
%
|
Net Interest Income/Margin (Unadjusted)
|
$
|
839.4
|
|
|
$
|
—
|
|
|
1.56
|
%
|
|
$
|
797.3
|
|
|
$
|
—
|
|
|
1.40
|
%
|
ANALYSIS OF NET INTEREST INCOME CHANGES
DUE TO VOLUME AND RATE |
|
|
|
|
|
||||||
|
Six Months Ended June 30, 2019/2018
|
||||||||||
|
Change Due To
|
||||||||||
(In Millions)
|
Average
Balance
|
|
Rate
|
|
Total
|
||||||
Earning Assets (FTE)
|
$
|
(49.3
|
)
|
|
$
|
276.2
|
|
|
$
|
226.9
|
|
Interest-Related Funds
|
(11.7
|
)
|
|
199.0
|
|
|
187.3
|
|
|||
Net Interest Income (FTE)
|
$
|
(37.6
|
)
|
|
$
|
77.2
|
|
|
$
|
39.6
|
|
(1)
|
Federal Reserve and Other Central Bank Deposits and Other includes collateral deposits with certain securities depositories and clearing houses, which are classified in Other Assets in the consolidated balance sheets as of June 30, 2019.
|
(2)
|
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.
|
(3)
|
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 June 30, 2019 and 2018.
|
(4)
|
Average balances include nonaccrual loans. Lease financing receivable balances are reduced by deferred income.
|
(5)
|
Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets.
|
(6)
|
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), a non-generally accepted accounting principle (GAAP) financial measure, 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 24.9% and 24.8% for the six months ended June 30, 2019 and 2018, respectively. Total taxable equivalent interest adjustments amounted to $15.5 million and $18.0 million for the six months ended June 30, 2019 and 2018, respectively. A reconciliation of net interest income and net interest margin on a GAAP basis to net interest income and net interest margin on an FTE basis (each of which is a non-GAAP financial measure) is provided on page 28.
|
Noninterest Expense
|
Six Months Ended June 30,
|
|
|
|
|
|||||||||
($ In Millions)
|
2019
|
|
2018
|
|
Change
|
|||||||||
Compensation
|
$
|
937.5
|
|
|
$
|
926.4
|
|
|
$
|
11.1
|
|
|
1
|
%
|
Employee Benefits
|
175.0
|
|
|
180.5
|
|
|
(5.5
|
)
|
|
(3
|
)
|
|||
Outside Services
|
374.8
|
|
|
357.0
|
|
|
17.8
|
|
|
5
|
|
|||
Equipment and Software
|
295.5
|
|
|
284.2
|
|
|
11.3
|
|
|
4
|
|
|||
Occupancy
|
102.5
|
|
|
100.3
|
|
|
2.2
|
|
|
2
|
|
|||
Other Operating Expense
|
149.6
|
|
|
144.3
|
|
|
5.3
|
|
|
4
|
|
|||
Total Noninterest Expense
|
$
|
2,034.9
|
|
|
$
|
1,992.7
|
|
|
$
|
42.2
|
|
|
2
|
%
|
Other Operating Expense
|
Six Months Ended June 30,
|
|
|
|
|
|||||||||
($ In Millions)
|
2019
|
|
2018
|
|
Change
|
|||||||||
Business Promotion
|
$
|
39.4
|
|
|
$
|
38.0
|
|
|
$
|
1.4
|
|
|
4
|
%
|
Staff Related
|
17.2
|
|
|
15.7
|
|
|
1.5
|
|
|
10
|
|
|||
FDIC Insurance Premiums
|
5.2
|
|
|
16.5
|
|
|
(11.3
|
)
|
|
(68
|
)
|
|||
Other Intangibles Amortization
|
8.3
|
|
|
8.9
|
|
|
(0.6
|
)
|
|
(6
|
)
|
|||
Other Expenses
|
79.5
|
|
|
65.2
|
|
|
14.3
|
|
|
21
|
|
|||
Total Other Operating Expense
|
$
|
149.6
|
|
|
$
|
144.3
|
|
|
$
|
5.3
|
|
|
4
|
%
|
Capital Ratios — Northern Trust Corporation
|
June 30, 2019
|
|
March 31, 2019
|
|
June 30, 2018
|
||||||||||||
Advanced
Approach
|
|
Standardized
Approach
|
|
Advanced
Approach
|
|
Standardized
Approach
|
|
Advanced
Approach
|
|
Standardized
Approach
|
|||||||
Common Equity Tier 1
|
13.6
|
%
|
|
13.2
|
%
|
|
13.5
|
%
|
|
13.0
|
%
|
|
13.3
|
%
|
|
12.4
|
%
|
Tier 1
|
14.9
|
%
|
|
14.5
|
%
|
|
14.8
|
%
|
|
14.3
|
%
|
|
14.6
|
%
|
|
13.6
|
%
|
Total
|
16.7
|
%
|
|
16.4
|
%
|
|
16.6
|
%
|
|
16.3
|
%
|
|
16.5
|
%
|
|
15.6
|
%
|
Tier 1 Leverage
|
8.6
|
%
|
|
8.6
|
%
|
|
8.2
|
%
|
|
8.2
|
%
|
|
7.7
|
%
|
|
7.7
|
%
|
Supplementary Leverage
|
7.6
|
%
|
|
N/A
|
|
|
7.2
|
%
|
|
N/A
|
|
|
6.8
|
%
|
|
N/A
|
|
Capital Ratios — The Northern Trust Company
|
June 30, 2019
|
|
March 31, 2019
|
|
June 30, 2018
|
||||||||||||
Advanced
Approach
|
|
Standardized
Approach
|
|
Advanced
Approach
|
|
Standardized
Approach
|
|
Advanced
Approach
|
|
Standardized
Approach
|
|||||||
Common Equity Tier 1
|
14.1
|
%
|
|
13.4
|
%
|
|
13.9
|
%
|
|
13.2
|
%
|
|
13.8
|
%
|
|
12.6
|
%
|
Tier 1
|
14.1
|
%
|
|
13.4
|
%
|
|
13.9
|
%
|
|
13.2
|
%
|
|
13.8
|
%
|
|
12.6
|
%
|
Total
|
15.7
|
%
|
|
15.1
|
%
|
|
15.5
|
%
|
|
14.9
|
%
|
|
15.4
|
%
|
|
14.3
|
%
|
Tier 1 Leverage
|
7.8
|
%
|
|
7.8
|
%
|
|
7.4
|
%
|
|
7.4
|
%
|
|
7.1
|
%
|
|
7.1
|
%
|
Supplementary Leverage
|
6.9
|
%
|
|
N/A
|
|
|
6.6
|
%
|
|
N/A
|
|
|
6.2
|
%
|
|
N/A
|
|
($ In Millions)
|
June 30, 2019
|
|
March 31, 2019
|
|
June 30, 2018
|
||||||
Nonperforming Loans and Leases
|
|
|
|
|
|
||||||
Commercial
|
|
|
|
|
|
||||||
Commercial and Institutional
|
$
|
9.8
|
|
|
$
|
7.6
|
|
|
$
|
14.1
|
|
Commercial Real Estate
|
4.0
|
|
|
4.2
|
|
|
6.7
|
|
|||
Non-U.S.
|
0.6
|
|
|
0.6
|
|
|
—
|
|
|||
Total Commercial
|
14.4
|
|
|
12.4
|
|
|
20.8
|
|
|||
Personal
|
|
|
|
|
|
||||||
Residential Real Estate
|
$
|
100.5
|
|
|
$
|
103.5
|
|
|
$
|
107.6
|
|
Private Client
|
0.2
|
|
|
0.2
|
|
|
—
|
|
|||
Total Personal
|
100.7
|
|
|
103.7
|
|
|
107.6
|
|
|||
Total Nonperforming Loans and Leases
|
115.1
|
|
|
116.1
|
|
|
128.4
|
|
|||
Other Real Estate Owned
|
3.8
|
|
|
8.0
|
|
|
3.8
|
|
|||
Total Nonperforming Assets
|
$
|
118.9
|
|
|
$
|
124.1
|
|
|
$
|
132.2
|
|
90 Day Past Due Loans Still Accruing
|
$
|
6.3
|
|
|
$
|
13.0
|
|
|
$
|
5.2
|
|
Nonperforming Loans and Leases to Total Loans and Leases
|
0.37
|
%
|
|
0.38
|
%
|
|
0.40
|
%
|
|||
Coverage of Loan and Lease Allowance to
Nonperforming Loans and Leases
|
1.0
|
x
|
|
1.0
|
x
|
|
1.0
|
x
|
|
June 30, 2019
|
|
March 31, 2019
|
|
June 30, 2018
|
|||||||||||||||
($ 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
|
$
|
11.1
|
|
|
—
|
%
|
|
$
|
11.3
|
|
|
—
|
%
|
|
$
|
6.1
|
|
|
—
|
%
|
Allocated Inherent Allowance
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial and Institutional
|
35.8
|
|
|
29
|
|
|
35.2
|
|
|
28
|
|
|
33.5
|
|
|
27
|
|
|||
Commercial Real Estate
|
34.3
|
|
|
10
|
|
|
34.8
|
|
|
10
|
|
|
41.8
|
|
|
11
|
|
|||
Lease Financing, net
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|||
Non-U.S.
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
6
|
|
|||
Other
|
0.1
|
|
|
2
|
|
|
0.1
|
|
|
1
|
|
|
2.1
|
|
|
2
|
|
|||
Total Commercial
|
70.3
|
|
|
46
|
|
|
70.2
|
|
|
44
|
|
|
77.6
|
|
|
46
|
|
|||
Personal
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Residential Real Estate
|
37.3
|
|
|
20
|
|
|
45.3
|
|
|
21
|
|
|
54.4
|
|
|
21
|
|
|||
Private Client
|
14.0
|
|
|
34
|
|
|
11.2
|
|
|
35
|
|
|
9.5
|
|
|
33
|
|
|||
Other
|
1.4
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
|
1.6
|
|
|
—
|
|
|||
Total Personal
|
52.7
|
|
|
54
|
|
|
57.9
|
|
|
56
|
|
|
65.5
|
|
|
54
|
|
|||
Total Allocated Inherent Allowance
|
$
|
123.0
|
|
|
100
|
%
|
|
$
|
128.1
|
|
|
100
|
%
|
|
$
|
143.1
|
|
|
100
|
%
|
Total Allowance for Credit Losses
|
$
|
134.1
|
|
|
|
|
$
|
139.4
|
|
|
|
|
$
|
149.2
|
|
|
|
|||
Allowance Assigned to
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Loans and Leases
|
$
|
110.8
|
|
|
|
|
$
|
114.5
|
|
|
|
|
$
|
127.2
|
|
|
|
|||
Undrawn Commitments and Standby Letters of Credit
|
23.3
|
|
|
|
|
24.9
|
|
|
|
|
22.0
|
|
|
|
||||||
Total Allowance for Credit Losses
|
$
|
134.1
|
|
|
|
|
$
|
139.4
|
|
|
|
|
$
|
149.2
|
|
|
|
|||
Allowance Assigned to Loans and Leases to Total Loans and Leases
|
0.36
|
%
|
|
|
|
0.37
|
%
|
|
|
|
0.39
|
%
|
|
|
▪
|
the balance sheet size and mix remains constant over the simulation horizon with maturing assets and liabilities replaced with instruments with similar terms as those that are maturing, with the exception of certain nonmaturity deposits that are considered short-term in nature and therefore receive a more conservative interest-bearing treatment;
|
▪
|
prepayments on mortgage loans and securities collateralized by mortgages are projected under each rate scenario using a third-party mortgage analytics system that incorporates market prepayment assumptions;
|
▪
|
cash flows for structured securities are estimated using a third-party vendor in conjunction with the prepayments provided by the third-party mortgage analytics vendor;
|
▪
|
nonmaturity deposit pricing is projected based on Northern Trust’s actual historical patterns and management judgment, depending upon the availability of historical data and current pricing strategies/or judgment; and
|
▪
|
new business rates are based on current spreads to market indices.
|
($ In Millions)
|
Increase/(Decrease)
Estimated Impact on
Next Twelve Months of
Net Interest Income
|
||
Increase in Interest Rates Above Market Implied Forward Rates
|
|
||
100 Basis Points
|
$
|
75
|
|
200 Basis Points
|
133
|
|
|
Decrease in Interest Rates Below Market Implied Forward Rates
|
|
||
100 Basis Points
|
(83
|
)
|
▪
|
the present value of nonmaturity deposits are estimated using dynamic decay methodologies or estimated remaining lives, which are based on a combination of Northern Trust’s actual historical runoff patterns and management judgment — some balances are assumed to be core and have longer lives while other balances are assumed to be temporary and have comparatively shorter lives; and
|
▪
|
the present values of most noninterest-related balances (such as receivables, equipment, and payables) are the same as their book values.
|
($ In Millions)
|
Increase/(Decrease)
Estimated Impact on
Market Value of Equity
|
||
Increase in Interest Rates Above Market Implied Forward Rates
|
|
||
100 Basis Points
|
$
|
460
|
|
200 Basis Points
|
532
|
|
|
Decrease in Interest Rates Below Market Implied Forward Rates
|
|
||
100 Basis Points
|
(377
|
)
|
($ In Millions)
|
Total VaR
(Spot and Forward) |
|
Foreign Exchange
Spot VaR |
|
Foreign Exchange
Forward VaR |
||||||||||||||||||
Three Months Ended
|
June 30, 2019
|
|
March 31, 2019
|
|
June 30, 2019
|
|
March 31, 2019
|
|
June 30, 2019
|
|
March 31, 2019
|
||||||||||||
High
|
$
|
0.3
|
|
|
$
|
0.2
|
|
|
$
|
0.3
|
|
|
$
|
0.2
|
|
|
$
|
0.2
|
|
|
$
|
0.1
|
|
Low
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Average
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
||||||
Quarter-End
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
Three Months Ended
|
||||||||||||||||||||||
|
June 30, 2019
|
|
June 30, 2018
|
||||||||||||||||||||
($ In Millions)
|
Reported
|
|
FTE Adj.
|
|
FTE
|
|
Reported
|
|
FTE Adj.
|
|
FTE
|
||||||||||||
Interest Income
|
$
|
640.2
|
|
|
$
|
7.7
|
|
|
$
|
647.9
|
|
|
$
|
567.7
|
|
|
$
|
9.3
|
|
|
$
|
577.0
|
|
Interest Expense
|
222.8
|
|
|
—
|
|
|
222.8
|
|
|
154.4
|
|
|
—
|
|
|
154.4
|
|
||||||
Net Interest Income
|
$
|
417.4
|
|
|
$
|
7.7
|
|
|
$
|
425.1
|
|
|
$
|
413.3
|
|
|
$
|
9.3
|
|
|
$
|
422.6
|
|
Net Interest Margin
|
1.58
|
%
|
|
|
|
1.61
|
%
|
|
1.45
|
%
|
|
|
|
1.48
|
%
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenue
|
$
|
1,506.6
|
|
|
$
|
7.7
|
|
|
$
|
1,514.3
|
|
|
$
|
1,506.1
|
|
|
$
|
9.3
|
|
|
$
|
1,515.4
|
|
|
Six Months Ended
|
||||||||||||||||||||||
|
June 30, 2019
|
|
June 30, 2018
|
||||||||||||||||||||
($ In Millions)
|
Reported
|
|
FTE Adj.
|
|
FTE
|
|
Reported
|
|
FTE Adj.
|
|
FTE
|
||||||||||||
Interest Income
|
$
|
1,303.0
|
|
|
$
|
15.5
|
|
|
$
|
1,318.5
|
|
|
$
|
1,073.6
|
|
|
$
|
18.0
|
|
|
$
|
1,091.6
|
|
Interest Expense
|
463.6
|
|
|
—
|
|
|
463.6
|
|
|
276.3
|
|
|
—
|
|
|
276.3
|
|
||||||
Net Interest Income
|
$
|
839.4
|
|
|
$
|
15.5
|
|
|
$
|
854.9
|
|
|
$
|
797.3
|
|
|
$
|
18.0
|
|
|
$
|
815.3
|
|
Net Interest Margin
|
1.56
|
%
|
|
|
|
1.59
|
%
|
|
1.40
|
%
|
|
|
|
1.43
|
%
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenue
|
$
|
2,987.5
|
|
|
$
|
15.5
|
|
|
$
|
3,003.0
|
|
|
$
|
2,982.1
|
|
|
$
|
18.0
|
|
|
$
|
3,000.1
|
|
•
|
financial market disruptions or economic recession in the United States or other countries across the globe resulting from any of a number of factors, including, for example, actual or potential changes to international trade policy;
|
•
|
volatility or 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 held 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 equity markets on fee revenue;
|
•
|
the downgrade of U.S. government-issued and other securities;
|
•
|
changes in foreign exchange trading client volumes and volatility in foreign currency exchange rates, changes in the valuation of the U.S. dollar relative to other currencies in which Northern Trust records revenue or accrues expenses, and Northern Trust’s success in assessing and mitigating the risks arising from all 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;
|
•
|
Northern Trust’s ability to address operating risks, including those related to cyber-security, data security, human errors or omissions, pricing or valuation of securities, fraud, systems performance or defects, systems interruptions, and breakdowns in processes or internal controls;
|
•
|
Northern Trust’s success in responding to and investing in changes and advancements in technology;
|
•
|
a significant downgrade of any of Northern Trust’s debt ratings;
|
•
|
the health and soundness of the financial institutions and other counterparties with which Northern Trust conducts business;
|
•
|
uncertainties inherent in the complex and subjective judgments required to assess credit risk and establish appropriate allowances therefor;
|
•
|
changes in the method pursuant to which the London Interbank Offered Rate (LIBOR) or other interest rate benchmarks are determined;
|
•
|
the pace and extent of continued globalization of investment activity and growth in worldwide financial assets;
|
•
|
changes in interest rates or in the monetary or other policies of various regulatory authorities or central banks;
|
•
|
changes in the legal, regulatory and enforcement framework and oversight applicable to financial institutions, including Northern Trust;
|
•
|
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;
|
•
|
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 including with respect to the adoption of the Tax Cuts and Jobs Act;
|
•
|
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 pending departure of the United Kingdom from the European Union, commonly referred to as “Brexit,” and any negative effects thereof on global economic conditions, global financial markets, and our business and results of operations;
|
•
|
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;
|
•
|
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 implementing its expense management initiatives, including its “Value for Spend” initiative;
|
•
|
uncertainties inherent in Northern Trust’s assumptions concerning its pension plan, including discount rates and expected contributions, returns and payouts;
|
•
|
Northern Trust’s success in continuing to enhance its 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;
|
•
|
risks and uncertainties inherent in the litigation and regulatory process, including the possibility that losses may be in excess of Northern Trust’s recorded liability and estimated range of possible loss for litigation exposures;
|
•
|
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, 2018, 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)
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
(Unaudited)
|
|
|
||||
Assets
|
|
|
|
||||
Cash and Due from Banks
|
$
|
5,348.3
|
|
|
$
|
4,581.6
|
|
Federal Reserve and Other Central Bank Deposits
|
27,553.5
|
|
|
30,080.2
|
|
||
Interest-Bearing Deposits with Banks
|
4,193.6
|
|
|
4,264.2
|
|
||
Federal Funds Sold and Securities Purchased under Agreements to Resell
|
660.5
|
|
|
1,165.2
|
|
||
Debt Securities
|
|
|
|
||||
Available for Sale
|
37,867.5
|
|
|
36,888.8
|
|
||
Held to Maturity (Fair value of $10,325.4 and $14,267.0)
|
10,351.2
|
|
|
14,354.0
|
|
||
Trading Account
|
0.8
|
|
|
0.3
|
|
||
Total Debt Securities
|
48,219.5
|
|
|
51,243.1
|
|
||
Loans and Leases
|
|
|
|
||||
Commercial
|
14,136.9
|
|
|
15,175.2
|
|
||
Personal
|
16,845.4
|
|
|
17,314.8
|
|
||
Total Loans and Leases (Net of unearned income of $13.1 and $13.2)
|
30,982.3
|
|
|
32,490.0
|
|
||
Allowance for Credit Losses Assigned to Loans and Leases
|
(110.8
|
)
|
|
(112.6
|
)
|
||
Buildings and Equipment
|
407.5
|
|
|
428.2
|
|
||
Client Security Settlement Receivables
|
1,311.1
|
|
|
1,646.1
|
|
||
Goodwill
|
682.0
|
|
|
669.3
|
|
||
Other Assets
|
7,303.4
|
|
|
5,757.2
|
|
||
Total Assets
|
$
|
126,550.9
|
|
|
$
|
132,212.5
|
|
Liabilities
|
|
|
|
||||
Deposits
|
|
|
|
||||
Demand and Other Noninterest-Bearing
|
$
|
13,205.9
|
|
|
$
|
14,508.0
|
|
Savings, Money Market and Other Interest-Bearing
|
18,197.2
|
|
|
14,612.0
|
|
||
Savings Certificates and Other Time
|
897.3
|
|
|
688.7
|
|
||
Non U.S. Offices — Noninterest-Bearing
|
8,902.0
|
|
|
8,220.1
|
|
||
— Interest-Bearing
|
59,028.0
|
|
|
66,468.0
|
|
||
Total Deposits
|
100,230.4
|
|
|
104,496.8
|
|
||
Federal Funds Purchased
|
368.0
|
|
|
2,594.2
|
|
||
Securities Sold Under Agreements to Repurchase
|
125.2
|
|
|
168.3
|
|
||
Other Borrowings
|
7,766.4
|
|
|
7,901.7
|
|
||
Senior Notes
|
2,565.6
|
|
|
2,011.3
|
|
||
Long-Term Debt
|
1,147.6
|
|
|
1,112.4
|
|
||
Floating Rate Capital Debt
|
277.6
|
|
|
277.6
|
|
||
Other Liabilities
|
3,264.6
|
|
|
3,141.9
|
|
||
Total Liabilities
|
115,745.4
|
|
|
121,704.2
|
|
||
Stockholders’ Equity
|
|
|
|
||||
Preferred Stock, No Par Value; Authorized 10,000,000 shares:
|
|
|
|
||||
Series C, outstanding shares of 16,000
|
388.5
|
|
|
388.5
|
|
||
Series D, outstanding shares of 5,000
|
493.5
|
|
|
493.5
|
|
||
Common Stock, $1.66 2/3 Par Value; Authorized 560,000,000 shares;
|
|
|
|
||||
Outstanding shares of 214,890,746 and 219,012,050
|
408.6
|
|
|
408.6
|
|
||
Additional Paid-In Capital
|
1,013.8
|
|
|
1,068.5
|
|
||
Retained Earnings
|
11,225.5
|
|
|
10,776.8
|
|
||
Accumulated Other Comprehensive Loss
|
(159.8
|
)
|
|
(453.7
|
)
|
||
Treasury Stock (30,280,778 and 26,159,474 shares, at cost)
|
(2,564.6
|
)
|
|
(2,173.9
|
)
|
||
Total Stockholders’ Equity
|
10,805.5
|
|
|
10,508.3
|
|
||
Total Liabilities and Stockholders’ Equity
|
$
|
126,550.9
|
|
|
$
|
132,212.5
|
|
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
|
NORTHERN TRUST CORPORATION
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(In Millions Except Share Information)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Noninterest Income
|
|
|
|
|
|
|
|
||||||||
Trust, Investment and Other Servicing Fees
|
$
|
955.5
|
|
|
$
|
942.9
|
|
|
$
|
1,884.4
|
|
|
$
|
1,880.6
|
|
Foreign Exchange Trading Income
|
60.5
|
|
|
78.9
|
|
|
126.7
|
|
|
157.4
|
|
||||
Treasury Management Fees
|
11.2
|
|
|
13.5
|
|
|
22.9
|
|
|
27.5
|
|
||||
Security Commissions and Trading Income
|
23.4
|
|
|
26.1
|
|
|
46.7
|
|
|
53.3
|
|
||||
Other Operating Income
|
38.9
|
|
|
31.4
|
|
|
67.9
|
|
|
66.2
|
|
||||
Investment Security Gains (Losses), net (Note)
|
(0.3
|
)
|
|
—
|
|
|
(0.5
|
)
|
|
(0.2
|
)
|
||||
Total Noninterest Income
|
1,089.2
|
|
|
1,092.8
|
|
|
2,148.1
|
|
|
2,184.8
|
|
||||
Net Interest Income
|
|
|
|
|
|
|
|
||||||||
Interest Income
|
640.2
|
|
|
567.7
|
|
|
1,303.0
|
|
|
1,073.6
|
|
||||
Interest Expense
|
222.8
|
|
|
154.4
|
|
|
463.6
|
|
|
276.3
|
|
||||
Net Interest Income
|
417.4
|
|
|
413.3
|
|
|
839.4
|
|
|
797.3
|
|
||||
Provision for Credit Losses
|
(6.5
|
)
|
|
1.5
|
|
|
(6.5
|
)
|
|
(1.5
|
)
|
||||
Net Interest Income after Provision for Credit Losses
|
423.9
|
|
|
411.8
|
|
|
845.9
|
|
|
798.8
|
|
||||
Noninterest Expense
|
|
|
|
|
|
|
|
||||||||
Compensation
|
455.5
|
|
|
454.7
|
|
|
937.5
|
|
|
926.4
|
|
||||
Employee Benefits
|
89.3
|
|
|
88.8
|
|
|
175.0
|
|
|
180.5
|
|
||||
Outside Services
|
186.4
|
|
|
185.6
|
|
|
374.8
|
|
|
357.0
|
|
||||
Equipment and Software
|
147.2
|
|
|
144.2
|
|
|
295.5
|
|
|
284.2
|
|
||||
Occupancy
|
50.9
|
|
|
48.8
|
|
|
102.5
|
|
|
100.3
|
|
||||
Other Operating Expense
|
76.9
|
|
|
75.3
|
|
|
149.6
|
|
|
144.3
|
|
||||
Total Noninterest Expense
|
1,006.2
|
|
|
997.4
|
|
|
2,034.9
|
|
|
1,992.7
|
|
||||
Income before Income Taxes
|
506.9
|
|
|
507.2
|
|
|
959.1
|
|
|
990.9
|
|
||||
Provision for Income Taxes
|
117.5
|
|
|
116.8
|
|
|
222.6
|
|
|
218.9
|
|
||||
Net Income
|
$
|
389.4
|
|
|
$
|
390.4
|
|
|
$
|
736.5
|
|
|
$
|
772.0
|
|
Preferred Stock Dividends
|
5.9
|
|
|
5.9
|
|
|
23.2
|
|
|
23.2
|
|
||||
Net Income Applicable to Common Stock
|
$
|
383.5
|
|
|
$
|
384.5
|
|
|
$
|
713.3
|
|
|
$
|
748.8
|
|
Per Common Share
|
|
|
|
|
|
|
|
||||||||
Net Income – Basic
|
$
|
1.76
|
|
|
$
|
1.69
|
|
|
$
|
3.25
|
|
|
$
|
3.28
|
|
– Diluted
|
1.75
|
|
|
1.68
|
|
|
3.23
|
|
|
3.26
|
|
||||
Average Number of Common Shares Outstanding
|
|
|
|
|
|
|
|
||||||||
– Basic
|
216,139,033
|
|
|
224,207,590
|
|
|
217,182,123
|
|
|
224,940,308
|
|
||||
– Diluted
|
217,169,539
|
|
|
225,611,397
|
|
|
218,214,075
|
|
|
226,325,492
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Note: Changes in Other-Than-Temporary-Impairment (OTTI) Losses
|
$
|
(0.2
|
)
|
|
$
|
—
|
|
|
$
|
(0.2
|
)
|
|
$
|
(0.2
|
)
|
Other Security Gains (Losses), net
|
(0.1
|
)
|
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
||||
Investment Security Gains (Losses), net
|
$
|
(0.3
|
)
|
|
$
|
—
|
|
|
$
|
(0.5
|
)
|
|
$
|
(0.2
|
)
|
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (UNAUDITED) |
NORTHERN TRUST CORPORATION
|
|
|||||||||||||
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(In Millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net Income
|
$
|
389.4
|
|
|
$
|
390.4
|
|
|
$
|
736.5
|
|
|
$
|
772.0
|
|
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications)
|
|
|
|
|
|
|
|
||||||||
Net Unrealized Gains (Losses) on Debt Securities Available for Sale
|
162.4
|
|
|
(19.9
|
)
|
|
248.0
|
|
|
(74.9
|
)
|
||||
Net Unrealized Gains (Losses) on Cash Flow Hedges
|
4.8
|
|
|
(3.5
|
)
|
|
0.5
|
|
|
(7.2
|
)
|
||||
Foreign Currency Translation Adjustments
|
14.1
|
|
|
13.6
|
|
|
28.9
|
|
|
0.5
|
|
||||
Pension and Other Postretirement Benefit Adjustments
|
4.2
|
|
|
7.4
|
|
|
16.5
|
|
|
13.1
|
|
||||
Other Comprehensive Income
|
185.5
|
|
|
(2.4
|
)
|
|
293.9
|
|
|
(68.5
|
)
|
||||
Comprehensive Income
|
$
|
574.9
|
|
|
$
|
388.0
|
|
|
$
|
1,030.4
|
|
|
$
|
703.5
|
|
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(UNAUDITED)
|
NORTHERN TRUST CORPORATION
|
|
Six Months Ended June 30,
|
||||||
(In Millions)
|
2019
|
|
2018
|
||||
Preferred Stock
|
|
|
|
||||
Balance at January 1 and June 30
|
$
|
882.0
|
|
|
$
|
882.0
|
|
Common Stock
|
|
|
|
||||
Balance at January 1 and June 30
|
408.6
|
|
|
408.6
|
|
||
Additional Paid-in Capital
|
|
|
|
||||
Balance at January 1
|
1,068.5
|
|
|
1,047.3
|
|
||
Treasury Stock Transactions — Stock Options and Awards
|
(128.8
|
)
|
|
(86.7
|
)
|
||
Stock Options and Awards — Amortization
|
74.1
|
|
|
89.6
|
|
||
Balance at June 30
|
1,013.8
|
|
|
1,050.2
|
|
||
Retained Earnings
|
|
|
|
||||
Balance at January 1
|
10,776.8
|
|
|
9,685.1
|
|
||
Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
|
—
|
|
|
25.3
|
|
||
Change in Accounting Principle
|
—
|
|
|
(4.5
|
)
|
||
Net Income
|
736.5
|
|
|
772.0
|
|
||
Dividends Declared — Common Stock
|
(264.6
|
)
|
|
(192.2
|
)
|
||
Dividends Declared — Preferred Stock
|
(23.2
|
)
|
|
(23.2
|
)
|
||
Balance at June 30
|
11,225.5
|
|
|
10,262.5
|
|
||
Accumulated Other Comprehensive Income (Loss)
|
|
|
|
||||
Balance at January 1
|
(453.7
|
)
|
|
(414.3
|
)
|
||
Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
|
—
|
|
|
(25.3
|
)
|
||
Net Unrealized Gains (Losses) on Debt Securities Available for Sale
|
248.0
|
|
|
(74.9
|
)
|
||
Net Unrealized Gains (Losses) on Cash Flow Hedges
|
0.5
|
|
|
(7.2
|
)
|
||
Foreign Currency Translation Adjustments
|
28.9
|
|
|
0.5
|
|
||
Pension and Other Postretirement Benefit Adjustments
|
16.5
|
|
|
13.1
|
|
||
Balance at June 30
|
(159.8
|
)
|
|
(508.1
|
)
|
||
Treasury Stock
|
|
|
|
||||
Balance at January 1
|
(2,173.9
|
)
|
|
(1,392.4
|
)
|
||
Stock Options and Awards
|
137.9
|
|
|
108.6
|
|
||
Stock Purchased
|
(528.6
|
)
|
|
(453.8
|
)
|
||
Balance at June 30
|
(2,564.6
|
)
|
|
(1,737.6
|
)
|
||
Total Stockholders’ Equity at June 30
|
$
|
10,805.5
|
|
|
$
|
10,357.6
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
NORTHERN TRUST CORPORATION
|
|
Six Months Ended June 30,
|
||||||
(In Millions)
|
2019
|
|
2018
|
||||
Cash Flows From Operating Activities
|
|
|
|
||||
Net Income
|
$
|
736.5
|
|
|
$
|
772.0
|
|
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
|
|
|
|
||||
Investment Security Losses, net
|
0.5
|
|
|
0.2
|
|
||
Amortization and Accretion of Securities and Unearned Income, net
|
37.6
|
|
|
58.8
|
|
||
Provision for Credit Losses
|
(6.5
|
)
|
|
(1.5
|
)
|
||
Depreciation on Buildings and Equipment
|
49.7
|
|
|
55.2
|
|
||
Amortization of Computer Software
|
168.3
|
|
|
169.1
|
|
||
Amortization of Intangibles
|
8.3
|
|
|
8.9
|
|
||
Pension Plan Contributions
|
(3.0
|
)
|
|
(71.9
|
)
|
||
Change in Receivables
|
(470.3
|
)
|
|
(207.5
|
)
|
||
Change in Interest Payable
|
(5.3
|
)
|
|
12.7
|
|
||
Change in Collateral With Derivative Counterparties, net
|
357.3
|
|
|
(941.4
|
)
|
||
Other Operating Activities, net
|
(494.6
|
)
|
|
(0.1
|
)
|
||
Net Cash Provided by (Used in) Operating Activities
|
378.5
|
|
|
(145.5
|
)
|
||
Cash Flows From Investing Activities
|
|
|
|
||||
Net Change in Federal Funds Sold and Securities Purchased under Agreements to Resell
|
509.4
|
|
|
(113.7
|
)
|
||
Change in Interest-Bearing Deposits with Banks
|
76.7
|
|
|
1,303.6
|
|
||
Net Change in Federal Reserve and Other Central Bank Deposits
|
2,492.8
|
|
|
6,794.9
|
|
||
Purchases of Debt Securities – Held to Maturity
|
(6,321.1
|
)
|
|
(10,641.4
|
)
|
||
Proceeds from Maturity and Redemption of Debt Securities – Held to Maturity
|
10,272.9
|
|
|
9,244.6
|
|
||
Purchases of Debt Securities – Available for Sale
|
(4,361.7
|
)
|
|
(5,728.8
|
)
|
||
Proceeds from Sale, Maturity and Redemption of Debt Securities – Available for Sale
|
3,772.5
|
|
|
4,036.3
|
|
||
Change in Loans and Leases
|
1,513.3
|
|
|
101.6
|
|
||
Purchases of Buildings and Equipment
|
(27.7
|
)
|
|
(23.3
|
)
|
||
Purchases and Development of Computer Software
|
(208.8
|
)
|
|
(174.2
|
)
|
||
Change in Client Security Settlement Receivables
|
331.2
|
|
|
(426.5
|
)
|
||
Acquisition of a Business, Net of Cash Received
|
—
|
|
|
(70.0
|
)
|
||
Bank Owned Life Insurance Premium Purchases
|
(1,000.0
|
)
|
|
—
|
|
||
Other Investing Activities, net
|
281.8
|
|
|
(685.6
|
)
|
||
Net Cash Provided by Investing Activities
|
7,331.3
|
|
|
3,617.5
|
|
||
Cash Flows From Financing Activities
|
|
|
|
||||
Change in Deposits
|
(4,303.7
|
)
|
|
(4,998.5
|
)
|
||
Change in Federal Funds Purchased
|
(2,226.1
|
)
|
|
935.9
|
|
||
Change in Securities Sold under Agreements to Repurchase
|
(43.8
|
)
|
|
147.8
|
|
||
Change in Short-Term Other Borrowings
|
(145.2
|
)
|
|
1,603.1
|
|
||
Proceeds from Senior Notes
|
498.0
|
|
|
—
|
|
||
Treasury Stock Purchased
|
(528.6
|
)
|
|
(453.8
|
)
|
||
Net Proceeds from Stock Options
|
9.1
|
|
|
21.9
|
|
||
Cash Dividends Paid on Common Stock
|
(251.9
|
)
|
|
(189.6
|
)
|
||
Cash Dividends Paid on Preferred Stock
|
(23.2
|
)
|
|
(23.2
|
)
|
||
Net Cash Used in Financing Activities
|
(7,015.4
|
)
|
|
(2,956.4
|
)
|
||
Effect of Foreign Currency Exchange Rates on Cash
|
72.3
|
|
|
(145.6
|
)
|
||
Change in Cash and Due from Banks
|
766.7
|
|
|
370.0
|
|
||
Cash and Due from Banks at Beginning of Year
|
4,581.6
|
|
|
4,518.1
|
|
||
Cash and Due from Banks at End of Year
|
$
|
5,348.3
|
|
|
$
|
4,888.1
|
|
Supplemental Disclosures Of Cash Flow Information
|
|
|
|
||||
Interest Paid
|
$
|
469.2
|
|
|
$
|
263.4
|
|
Income Taxes Paid
|
233.0
|
|
|
200.7
|
|
||
Transfers from Loans to OREO
|
2.5
|
|
|
2.5
|
|
|
June 30, 2019
|
|||||||||||
Financial Instrument
|
Fair Value
|
|
Valuation
Technique
|
|
Unobservable Inputs
|
|
Range of Inputs
|
|||||
Swaps Related to Sale of Certain Visa Class B Common Shares
|
$
|
34.7
|
million
|
|
Discounted Cash Flow
|
|
Visa Class A Appreciation
|
|
7.0
|
%
|
—
|
11.0%
|
|
|
|
Conversion Rate
|
|
1.62
|
x
|
—
|
1.64x
|
||||
|
|
|
|
Expected Duration
|
|
1.5
|
|
—
|
3.5 years
|
|
December 31, 2018
|
|||||||||||
Financial Instrument
|
Fair Value
|
|
Valuation
Technique
|
|
Unobservable Inputs
|
|
Range of Inputs
|
|||||
Swaps Related to Sale of Certain Visa Class B Common Shares
|
$
|
32.8
|
million
|
|
Discounted Cash Flow
|
|
Visa Class A Appreciation
|
|
7.0
|
%
|
—
|
11.0%
|
|
|
|
Conversion Rate
|
|
1.62
|
x
|
—
|
1.64x
|
||||
|
|
|
|
Expected Duration
|
|
1.5
|
|
—
|
4.0 years
|
(In Millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting
|
|
Assets/Liabilities
at Fair Value
|
||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Debt Securities
|
|
|
|
|
|
|
|
|
|
||||||||||
Available for Sale
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government
|
$
|
5,079.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,079.4
|
|
Obligations of States and Political Subdivisions
|
—
|
|
|
753.2
|
|
|
—
|
|
|
—
|
|
|
753.2
|
|
|||||
Government Sponsored Agency
|
—
|
|
|
22,505.4
|
|
|
—
|
|
|
—
|
|
|
22,505.4
|
|
|||||
Non-U.S. Government
|
—
|
|
|
143.2
|
|
|
—
|
|
|
—
|
|
|
143.2
|
|
|||||
Corporate Debt
|
—
|
|
|
2,421.8
|
|
|
—
|
|
|
—
|
|
|
2,421.8
|
|
|||||
Covered Bonds
|
—
|
|
|
863.4
|
|
|
—
|
|
|
—
|
|
|
863.4
|
|
|||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
—
|
|
|
2,286.4
|
|
|
—
|
|
|
—
|
|
|
2,286.4
|
|
|||||
Other Asset-Backed
|
—
|
|
|
2,989.6
|
|
|
—
|
|
|
—
|
|
|
2,989.6
|
|
|||||
Commercial Mortgage-Backed
|
—
|
|
|
811.5
|
|
|
—
|
|
|
—
|
|
|
811.5
|
|
|||||
Other
|
—
|
|
|
13.6
|
|
|
—
|
|
|
—
|
|
|
13.6
|
|
|||||
Total Available for Sale
|
5,079.4
|
|
|
32,788.1
|
|
|
—
|
|
|
—
|
|
|
37,867.5
|
|
|||||
Trading Account
|
—
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
|||||
Total Available for Sale and Trading Debt Securities
|
5,079.4
|
|
|
32,788.9
|
|
|
—
|
|
|
—
|
|
|
37,868.3
|
|
|||||
Other Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
—
|
|
|
1,741.4
|
|
|
—
|
|
|
—
|
|
|
1,741.4
|
|
|||||
Interest Rate Contracts
|
—
|
|
|
150.4
|
|
|
—
|
|
|
—
|
|
|
150.4
|
|
|||||
Total Derivative Assets
|
—
|
|
|
1,891.8
|
|
|
—
|
|
|
(1,171.6
|
)
|
|
720.2
|
|
|||||
Other Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
—
|
|
|
1,682.7
|
|
|
—
|
|
|
—
|
|
|
1,682.7
|
|
|||||
Interest Rate Contracts
|
—
|
|
|
97.5
|
|
|
—
|
|
|
—
|
|
|
97.5
|
|
|||||
Other Financial Derivatives (1)
|
—
|
|
|
0.6
|
|
|
34.7
|
|
|
—
|
|
|
35.3
|
|
|||||
Total Derivative Liabilities
|
$
|
—
|
|
|
$
|
1,780.8
|
|
|
$
|
34.7
|
|
|
$
|
(1,248.6
|
)
|
|
$
|
566.9
|
|
(1)
|
This line consists of swaps related to the sale of certain Visa Class B common shares and a total return swap contract.
|
(In Millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting
|
|
Assets/Liabilities
at Fair Value
|
||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Debt Securities
|
|
|
|
|
|
|
|
|
|
||||||||||
Available for Sale
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government
|
$
|
5,185.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,185.3
|
|
Obligations of States and Political Subdivisions
|
—
|
|
|
655.9
|
|
|
—
|
|
|
—
|
|
|
655.9
|
|
|||||
Government Sponsored Agency
|
—
|
|
|
22,424.6
|
|
|
—
|
|
|
—
|
|
|
22,424.6
|
|
|||||
Non-U.S. Government
|
—
|
|
|
142.2
|
|
|
—
|
|
|
—
|
|
|
142.2
|
|
|||||
Corporate Debt
|
—
|
|
|
2,294.7
|
|
|
—
|
|
|
—
|
|
|
2,294.7
|
|
|||||
Covered Bonds
|
—
|
|
|
829.3
|
|
|
—
|
|
|
—
|
|
|
829.3
|
|
|||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
—
|
|
|
2,096.2
|
|
|
—
|
|
|
—
|
|
|
2,096.2
|
|
|||||
Other Asset-Backed
|
—
|
|
|
2,657.7
|
|
|
—
|
|
|
—
|
|
|
2,657.7
|
|
|||||
Commercial Mortgage-Backed
|
—
|
|
|
587.2
|
|
|
—
|
|
|
—
|
|
|
587.2
|
|
|||||
Other
|
—
|
|
|
15.7
|
|
|
—
|
|
|
—
|
|
|
15.7
|
|
|||||
Total Available for Sale
|
5,185.3
|
|
|
31,703.5
|
|
|
—
|
|
|
—
|
|
|
36,888.8
|
|
|||||
Trading Account
|
—
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|||||
Total Available for Sale and Trading Debt Securities
|
5,185.3
|
|
|
31,703.8
|
|
|
—
|
|
|
—
|
|
|
36,889.1
|
|
|||||
Other Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
—
|
|
|
2,466.1
|
|
|
—
|
|
|
—
|
|
|
2,466.1
|
|
|||||
Interest Rate Contracts
|
—
|
|
|
96.1
|
|
|
—
|
|
|
—
|
|
|
96.1
|
|
|||||
Other Financial Derivatives (1)
|
—
|
|
|
1.3
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
|||||
Total Derivative Assets
|
—
|
|
|
2,563.5
|
|
|
—
|
|
|
(1,357.1
|
)
|
|
1,206.4
|
|
|||||
Other Liabilities
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Derivative Liabilities
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Foreign Exchange Contracts
|
—
|
|
|
2,262.5
|
|
|
—
|
|
|
—
|
|
|
2,262.5
|
|
|||||
Interest Rate Contracts
|
—
|
|
|
93.1
|
|
|
—
|
|
|
—
|
|
|
93.1
|
|
|||||
Other Financial Derivatives (2)
|
—
|
|
|
—
|
|
|
32.8
|
|
|
—
|
|
|
32.8
|
|
|||||
Total Derivative Liabilities
|
$
|
—
|
|
|
$
|
2,355.6
|
|
|
$
|
32.8
|
|
|
$
|
(1,796.3
|
)
|
|
$
|
592.1
|
|
(1)
|
This line consists of a total return swap contract.
|
(2)
|
This line consists of swaps related to the sale of certain Visa Class B common shares.
|
Level 3 Liabilities (In Millions)
|
Swaps Related to Sale of
Certain Visa Class B
Common Shares
|
||||||
Three Months Ended June 30,
|
2019
|
|
2018
|
||||
Fair Value at April 1
|
$
|
35.0
|
|
|
$
|
31.3
|
|
Total (Gains) Losses:
|
|
|
|
||||
Included in Earnings (1)
|
3.1
|
|
|
7.5
|
|
||
Purchases, Issues, Sales, and Settlements
|
|
|
|
||||
Settlements
|
(3.4
|
)
|
|
(2.7
|
)
|
||
Fair Value at June 30
|
$
|
34.7
|
|
|
$
|
36.1
|
|
Six Months Ended June 30,
|
2019
|
|
2018
|
||||
Fair Value at January 1
|
$
|
32.8
|
|
|
$
|
29.7
|
|
Total (Gains) Losses:
|
|
|
|
||||
Included in Earnings (1)
|
8.2
|
|
|
11.7
|
|
||
Purchases, Issues, Sales, and Settlements
|
|
|
|
||||
Settlements
|
(6.3
|
)
|
|
(5.3
|
)
|
||
Fair Value at June 30
|
$
|
34.7
|
|
|
$
|
36.1
|
|
(1)
|
(Gains) losses are recorded in other operating income in the consolidated statements of income.
|
|
|
June 30, 2019
|
|||||||||
Financial Instrument
|
|
Fair Value
|
|
Valuation
Technique
|
|
Unobservable Input
|
|
Range of Discounts
Applied
|
|||
Loans
|
|
$27.3 million
|
|
Market Approach
|
|
Discount to reflect realizable value
|
|
15.0
|
%
|
-
|
30.0%
|
|
|
December 31, 2018
|
|||||||||
Financial Instrument
|
|
Fair Value
|
|
Valuation
Technique
|
|
Unobservable Input
|
|
Range of Discounts
Applied
|
|||
Loans
|
|
$24.9 million
|
|
Market Approach
|
|
Discount to reflect realizable value
|
|
15.0
|
%
|
-
|
30.0%
|
OREO
|
|
$0.4 million
|
|
Market Approach
|
|
Discount to reflect realizable value
|
|
15.0
|
%
|
-
|
30.0%
|
(In Millions)
|
June 30, 2019
|
||||||||||||||
|
Book
Value
|
Total
Fair Value
|
Fair Value
|
||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Assets
|
|
|
|
||||||||||||
Cash and Due from Banks
|
$
|
5,348.3
|
|
$
|
5,348.3
|
|
$
|
5,348.3
|
|
$
|
—
|
|
$
|
—
|
|
Federal Reserve and Other Central Bank Deposits
|
27,553.5
|
|
27,553.5
|
|
—
|
|
27,553.5
|
|
—
|
|
|||||
Interest-Bearing Deposits with Banks
|
4,193.6
|
|
4,193.6
|
|
—
|
|
4,193.6
|
|
—
|
|
|||||
Federal Funds Sold and Securities Purchased under Agreements to Resell
|
660.5
|
|
660.5
|
|
—
|
|
660.5
|
|
—
|
|
|||||
Debt Securities
|
|
|
|
|
|
||||||||||
Available for Sale (Note)
|
37,867.5
|
|
37,867.5
|
|
5,079.4
|
|
32,788.1
|
|
—
|
|
|||||
Held to Maturity
|
10,351.2
|
|
10,325.4
|
|
117.7
|
|
10,207.7
|
|
—
|
|
|||||
Trading Account
|
0.8
|
|
0.8
|
|
—
|
|
0.8
|
|
—
|
|
|||||
Loans (excluding Leases)
|
|
|
|
|
|
||||||||||
Held for Investment
|
30,783.1
|
|
31,048.6
|
|
—
|
|
—
|
|
31,048.6
|
|
|||||
Client Security Settlement Receivables
|
1,311.1
|
|
1,311.1
|
|
—
|
|
1,311.1
|
|
—
|
|
|||||
Other Assets
|
|
|
|
|
|
||||||||||
Federal Reserve and Federal Home Loan Bank Stock
|
301.2
|
|
301.2
|
|
—
|
|
301.2
|
|
—
|
|
|||||
Community Development Investments
|
589.9
|
|
589.9
|
|
—
|
|
589.9
|
|
—
|
|
|||||
Employee Benefit and Deferred Compensation
|
203.8
|
|
208.8
|
|
135.3
|
|
73.5
|
|
—
|
|
|||||
Liabilities
|
|
|
|
|
|
||||||||||
Deposits
|
|
|
|
||||||||||||
Demand, Noninterest-Bearing, Savings, Money Market and Other Interest-Bearing
|
$
|
40,305.1
|
|
$
|
40,305.1
|
|
$
|
40,305.1
|
|
$
|
—
|
|
$
|
—
|
|
Savings Certificates and Other Time
|
897.3
|
|
904.9
|
|
—
|
|
904.9
|
|
—
|
|
|||||
Non U.S. Offices Interest-Bearing
|
59,028.0
|
|
59,028.0
|
|
—
|
|
59,028.0
|
|
—
|
|
|||||
Federal Funds Purchased
|
368.0
|
|
368.0
|
|
—
|
|
368.0
|
|
—
|
|
|||||
Securities Sold Under Agreements to Repurchase
|
125.2
|
|
125.2
|
|
—
|
|
125.2
|
|
—
|
|
|||||
Other Borrowings
|
7,766.4
|
|
7,772.2
|
|
—
|
|
7,772.2
|
|
—
|
|
|||||
Senior Notes
|
2,565.6
|
|
2,582.9
|
|
—
|
|
2,582.9
|
|
—
|
|
|||||
Long-Term Debt
|
|
|
|
|
|
||||||||||
Subordinated Debt
|
1,147.6
|
|
1,163.1
|
|
—
|
|
1,163.1
|
|
—
|
|
|||||
Floating Rate Capital Debt
|
277.6
|
|
257.1
|
|
—
|
|
257.1
|
|
—
|
|
|||||
Other Liabilities
|
|
|
|
|
|
||||||||||
Standby Letters of Credit
|
30.5
|
|
30.5
|
|
—
|
|
—
|
|
30.5
|
|
|||||
Loan Commitments
|
32.4
|
|
32.4
|
|
—
|
|
—
|
|
32.4
|
|
|||||
Derivative Instruments
|
|
|
|
|
|
||||||||||
Asset/Liability Management
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
|
|
|
|
|
||||||||||
Assets
|
$
|
62.3
|
|
$
|
62.3
|
|
$
|
—
|
|
$
|
62.3
|
|
$
|
—
|
|
Liabilities
|
18.1
|
|
18.1
|
|
—
|
|
18.1
|
|
—
|
|
|||||
Interest Rate Contracts
|
|
|
|
|
|
||||||||||
Assets
|
22.6
|
|
22.6
|
|
—
|
|
22.6
|
|
—
|
|
|||||
Liabilities
|
24.6
|
|
24.6
|
|
—
|
|
24.6
|
|
—
|
|
|||||
Other Financial Derivatives
|
|
|
|
|
|||||||||||
Liabilities (1)
|
35.3
|
|
35.3
|
|
—
|
|
0.6
|
|
34.7
|
|
|||||
Client-Related and Trading
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
|
|
|
|
|
||||||||||
Assets
|
1,679.1
|
|
1,679.1
|
|
—
|
|
1,679.1
|
|
—
|
|
|||||
Liabilities
|
1,664.6
|
|
1,664.6
|
|
—
|
|
1,664.6
|
|
—
|
|
|||||
Interest Rate Contracts
|
|
|
|
|
|||||||||||
Assets
|
127.8
|
|
127.8
|
|
—
|
|
127.8
|
|
—
|
|
|||||
Liabilities
|
72.9
|
|
72.9
|
|
—
|
|
72.9
|
|
—
|
|
(1)
|
This line consists of a total return swap contract and swaps related to the sale of certain Visa Class B common shares.
|
(In Millions)
|
December 31, 2018
|
||||||||||||||
|
Book
Value
|
Total
Fair Value
|
Fair Value
|
||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Assets
|
|
|
|
|
|
||||||||||
Cash and Due from Banks
|
$
|
4,581.6
|
|
$
|
4,581.6
|
|
$
|
4,581.6
|
|
$
|
—
|
|
$
|
—
|
|
Federal Reserve and Other Central Bank Deposits
|
30,080.2
|
|
30,080.2
|
|
—
|
|
30,080.2
|
|
—
|
|
|||||
Interest-Bearing Deposits with Banks
|
4,264.2
|
|
4,264.2
|
|
—
|
|
4,264.2
|
|
—
|
|
|||||
Federal Funds Sold and Securities Purchased under Agreements to Resell
|
1,165.2
|
|
1,165.2
|
|
—
|
|
1,165.2
|
|
—
|
|
|||||
Debt Securities
|
|
|
|
|
|
||||||||||
Available for Sale (Note)
|
36,888.8
|
|
36,888.8
|
|
5,185.3
|
|
31,703.5
|
|
—
|
|
|||||
Held to Maturity
|
14,354.0
|
|
14,267.0
|
|
101.6
|
|
14,165.4
|
|
—
|
|
|||||
Trading Account
|
0.3
|
|
0.3
|
|
—
|
|
0.3
|
|
—
|
|
|||||
Loans (excluding Leases)
|
|
|
|
|
|
||||||||||
Held for Investment
|
32,287.0
|
|
32,339.2
|
|
—
|
|
—
|
|
32,339.2
|
|
|||||
Client Security Settlement Receivables
|
1,646.1
|
|
1,646.1
|
|
—
|
|
1,646.1
|
|
—
|
|
|||||
Other Assets
|
|
|
|
|
|
||||||||||
Federal Reserve and Federal Home Loan Bank Stock
|
300.3
|
|
300.3
|
|
—
|
|
300.3
|
|
—
|
|
|||||
Community Development Investments
|
606.6
|
|
606.6
|
|
—
|
|
606.6
|
|
—
|
|
|||||
Employee Benefit and Deferred Compensation
|
202.3
|
|
194.5
|
|
125.0
|
|
69.5
|
|
—
|
|
|||||
Liabilities
|
|
|
|
|
|
||||||||||
Deposits
|
|
|
|
|
|
||||||||||
Demand, Noninterest-Bearing, Savings, Money Market and Other Interest-Bearing
|
$
|
37,340.1
|
|
$
|
37,340.1
|
|
$
|
37,340.1
|
|
$
|
—
|
|
$
|
—
|
|
Savings Certificates and Other Time
|
688.7
|
|
691.8
|
|
—
|
|
691.8
|
|
—
|
|
|||||
Non U.S. Offices Interest-Bearing
|
66,468.0
|
|
66,468.0
|
|
—
|
|
66,468.0
|
|
—
|
|
|||||
Federal Funds Purchased
|
2,594.2
|
|
2,594.2
|
|
—
|
|
2,594.2
|
|
—
|
|
|||||
Securities Sold Under Agreements to Repurchase
|
168.3
|
|
168.3
|
|
—
|
|
168.3
|
|
—
|
|
|||||
Other Borrowings
|
7,901.7
|
|
7,904.1
|
|
—
|
|
7,904.1
|
|
—
|
|
|||||
Senior Notes
|
2,011.3
|
|
1,994.4
|
|
—
|
|
1,994.4
|
|
—
|
|
|||||
Long-Term Debt
|
|
|
|
|
|
||||||||||
Subordinated Debt
|
1,112.4
|
|
1,089.7
|
|
—
|
|
1,089.7
|
|
—
|
|
|||||
Floating Rate Capital Debt
|
277.6
|
|
253.5
|
|
—
|
|
253.5
|
|
—
|
|
|||||
Other Liabilities
|
|
|
|
|
|
||||||||||
Standby Letters of Credit
|
30.8
|
|
30.8
|
|
—
|
|
—
|
|
30.8
|
|
|||||
Loan Commitments
|
34.3
|
|
34.3
|
|
—
|
|
—
|
|
34.3
|
|
|||||
Derivative Instruments
|
|
|
|
|
|
||||||||||
Asset/Liability Management
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
|
|
|
|
|
||||||||||
Assets
|
$
|
306.7
|
|
$
|
306.7
|
|
$
|
—
|
|
$
|
306.7
|
|
$
|
—
|
|
Liabilities
|
72.5
|
|
72.5
|
|
—
|
|
72.5
|
|
—
|
|
|||||
Interest Rate Contracts
|
|
|
|
|
|
||||||||||
Assets
|
30.0
|
|
30.0
|
|
—
|
|
30.0
|
|
—
|
|
|||||
Liabilities
|
24.5
|
|
24.5
|
|
—
|
|
24.5
|
|
—
|
|
|||||
Other Financial Derivatives
|
|
|
|
|
|
||||||||||
Assets (1)
|
1.3
|
|
1.3
|
|
—
|
|
1.3
|
|
—
|
|
|||||
Liabilities (2)
|
32.8
|
|
32.8
|
|
—
|
|
—
|
|
32.8
|
|
|||||
Client-Related and Trading
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
|
|
|
|
|
||||||||||
Assets
|
2,159.4
|
|
2,159.4
|
|
—
|
|
2,159.4
|
|
—
|
|
|||||
Liabilities
|
2,190.0
|
|
2,190.0
|
|
—
|
|
2,190.0
|
|
—
|
|
|||||
Interest Rate Contracts
|
|
|
|
|
|
||||||||||
Assets
|
66.1
|
|
66.1
|
|
—
|
|
66.1
|
|
—
|
|
|||||
Liabilities
|
68.6
|
|
68.6
|
|
—
|
|
68.6
|
|
—
|
|
Debt Securities Available for Sale
|
June 30, 2019
|
||||||||||||||
|
Amortized
Cost
|
|
Gross Unrealized
|
|
Fair
Value
|
||||||||||
(In Millions)
|
Gains
|
|
Losses
|
|
|||||||||||
U.S. Government
|
$
|
5,065.5
|
|
|
$
|
23.9
|
|
|
$
|
10.0
|
|
|
$
|
5,079.4
|
|
Obligations of States and Political Subdivisions
|
730.5
|
|
|
22.8
|
|
|
0.1
|
|
|
753.2
|
|
||||
Government Sponsored Agency
|
22,456.1
|
|
|
113.0
|
|
|
63.7
|
|
|
22,505.4
|
|
||||
Non-U.S. Government
|
143.3
|
|
|
0.1
|
|
|
0.2
|
|
|
143.2
|
|
||||
Corporate Debt
|
2,404.1
|
|
|
23.8
|
|
|
6.1
|
|
|
2,421.8
|
|
||||
Covered Bonds
|
858.9
|
|
|
5.2
|
|
|
0.7
|
|
|
863.4
|
|
||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
2,246.7
|
|
|
40.4
|
|
|
0.7
|
|
|
2,286.4
|
|
||||
Other Asset-Backed
|
2,983.8
|
|
|
11.6
|
|
|
5.8
|
|
|
2,989.6
|
|
||||
Commercial Mortgage-Backed
|
783.6
|
|
|
28.8
|
|
|
0.9
|
|
|
811.5
|
|
||||
Other
|
13.6
|
|
|
—
|
|
|
—
|
|
|
13.6
|
|
||||
Total
|
$
|
37,686.1
|
|
|
$
|
269.6
|
|
|
$
|
88.2
|
|
|
$
|
37,867.5
|
|
Debt Securities Available for Sale
|
December 31, 2018
|
||||||||||||||
|
Amortized
Cost
|
|
Gross Unrealized
|
|
Fair
Value
|
||||||||||
(In Millions)
|
Gains
|
|
Losses
|
|
|||||||||||
U.S. Government
|
$
|
5,203.1
|
|
|
$
|
21.8
|
|
|
$
|
39.6
|
|
|
$
|
5,185.3
|
|
Obligations of States and Political Subdivisions
|
657.6
|
|
|
2.0
|
|
|
3.7
|
|
|
655.9
|
|
||||
Government Sponsored Agency
|
22,522.7
|
|
|
52.4
|
|
|
150.5
|
|
|
22,424.6
|
|
||||
Non-U.S. Government
|
143.3
|
|
|
—
|
|
|
1.1
|
|
|
142.2
|
|
||||
Corporate Debt
|
2,312.6
|
|
|
3.2
|
|
|
21.1
|
|
|
2,294.7
|
|
||||
Covered Bonds
|
832.7
|
|
|
1.4
|
|
|
4.8
|
|
|
829.3
|
|
||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
2,087.8
|
|
|
11.9
|
|
|
3.5
|
|
|
2,096.2
|
|
||||
Other Asset-Backed
|
2,678.9
|
|
|
1.7
|
|
|
22.9
|
|
|
2,657.7
|
|
||||
Commercial Mortgage-Backed
|
587.4
|
|
|
4.0
|
|
|
4.2
|
|
|
587.2
|
|
||||
Other
|
15.7
|
|
|
—
|
|
|
—
|
|
|
15.7
|
|
||||
Total
|
$
|
37,041.8
|
|
|
$
|
98.4
|
|
|
$
|
251.4
|
|
|
$
|
36,888.8
|
|
Debt Securities Held to Maturity
|
June 30, 2019
|
||||||||||||||
|
Amortized
Cost
|
|
Gross Unrealized
|
|
Fair
Value
|
||||||||||
(In Millions)
|
Gains
|
|
Losses
|
|
|||||||||||
U.S Government
|
$
|
117.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
117.7
|
|
Obligations of States and Political Subdivisions
|
16.2
|
|
|
0.5
|
|
|
—
|
|
|
16.7
|
|
||||
Government Sponsored Agency
|
4.3
|
|
|
0.2
|
|
|
—
|
|
|
4.5
|
|
||||
Corporate Debt
|
376.0
|
|
|
1.3
|
|
|
0.2
|
|
|
377.1
|
|
||||
Covered Bonds
|
2,591.8
|
|
|
22.9
|
|
|
2.0
|
|
|
2,612.7
|
|
||||
Non-U.S. Government
|
2,981.9
|
|
|
7.0
|
|
|
3.9
|
|
|
2,985.0
|
|
||||
Certificates of Deposit
|
37.8
|
|
|
—
|
|
|
—
|
|
|
37.8
|
|
||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
3,302.6
|
|
|
23.9
|
|
|
3.1
|
|
|
3,323.4
|
|
||||
Other Asset-Backed
|
652.7
|
|
|
0.4
|
|
|
0.6
|
|
|
652.5
|
|
||||
Other
|
270.2
|
|
|
—
|
|
|
72.2
|
|
|
198.0
|
|
||||
Total
|
$
|
10,351.2
|
|
|
$
|
56.2
|
|
|
$
|
82.0
|
|
|
$
|
10,325.4
|
|
Debt Securities Held to Maturity
|
December 31, 2018
|
||||||||||||||
|
Amortized
Cost
|
|
Gross Unrealized
|
|
Fair
Value
|
||||||||||
(In Millions)
|
Gains
|
|
Losses
|
|
|||||||||||
U.S Government
|
$
|
101.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
101.6
|
|
Obligations of States and Political Subdivisions
|
18.9
|
|
|
0.6
|
|
|
—
|
|
|
19.5
|
|
||||
Government Sponsored Agency
|
4.5
|
|
|
0.2
|
|
|
—
|
|
|
4.7
|
|
||||
Corporate Debt
|
472.9
|
|
|
0.4
|
|
|
1.8
|
|
|
471.5
|
|
||||
Covered Bonds
|
2,877.6
|
|
|
9.6
|
|
|
9.3
|
|
|
2,877.9
|
|
||||
Non-U.S. Government
|
6,488.2
|
|
|
2.1
|
|
|
8.7
|
|
|
6,481.6
|
|
||||
Certificates of Deposit
|
45.1
|
|
|
—
|
|
|
—
|
|
|
45.1
|
|
||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
2,966.8
|
|
|
5.8
|
|
|
12.3
|
|
|
2,960.3
|
|
||||
Other Asset-Backed
|
1,146.4
|
|
|
—
|
|
|
4.0
|
|
|
1,142.4
|
|
||||
Other
|
232.0
|
|
|
—
|
|
|
69.6
|
|
|
162.4
|
|
||||
Total
|
$
|
14,354.0
|
|
|
$
|
18.7
|
|
|
$
|
105.7
|
|
|
$
|
14,267.0
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||
(In Millions)
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
||||||||
Available for Sale
|
|
|
|
|
|
|
|
||||||||
Due in One Year or Less
|
$
|
9,324.4
|
|
|
$
|
9,325.6
|
|
|
$
|
9,206.2
|
|
|
$
|
9,162.8
|
|
Due After One Year Through Five Years
|
19,674.2
|
|
|
19,799.6
|
|
|
21,012.7
|
|
|
20,943.9
|
|
||||
Due After Five Years Through Ten Years
|
7,188.4
|
|
|
7,234.5
|
|
|
5,774.1
|
|
|
5,740.8
|
|
||||
Due After Ten Years
|
1,499.1
|
|
|
1,507.8
|
|
|
1,048.8
|
|
|
1,041.3
|
|
||||
Total
|
37,686.1
|
|
|
37,867.5
|
|
|
37,041.8
|
|
|
36,888.8
|
|
||||
Held to Maturity
|
|
|
|
|
|
|
|
||||||||
Due in One Year or Less
|
3,374.3
|
|
|
3,374.9
|
|
|
6,638.2
|
|
|
6,635.5
|
|
||||
Due After One Year Through Five Years
|
6,803.4
|
|
|
6,837.9
|
|
|
7,066.0
|
|
|
7,040.0
|
|
||||
Due After Five Years Through Ten Years
|
76.4
|
|
|
66.3
|
|
|
567.9
|
|
|
553.0
|
|
||||
Due After Ten Years
|
97.1
|
|
|
46.3
|
|
|
81.9
|
|
|
38.5
|
|
||||
Total
|
$
|
10,351.2
|
|
|
$
|
10,325.4
|
|
|
$
|
14,354.0
|
|
|
$
|
14,267.0
|
|
Debt Securities with Unrealized Losses as of June 30, 2019
|
|
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
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,691.5
|
|
|
$
|
10.0
|
|
|
$
|
2,691.5
|
|
|
$
|
10.0
|
|
Obligations of States and Political Subdivisions
|
|
—
|
|
|
—
|
|
|
98.8
|
|
|
0.1
|
|
|
98.8
|
|
|
0.1
|
|
||||||
Government Sponsored Agency
|
|
4,930.5
|
|
|
14.8
|
|
|
8,559.6
|
|
|
48.9
|
|
|
13,490.1
|
|
|
63.7
|
|
||||||
Non-U.S. Government
|
|
1,575.3
|
|
|
0.1
|
|
|
1,231.9
|
|
|
4.0
|
|
|
2,807.2
|
|
|
4.1
|
|
||||||
Corporate Debt
|
|
98.2
|
|
|
0.2
|
|
|
793.7
|
|
|
6.1
|
|
|
891.9
|
|
|
6.3
|
|
||||||
Covered Bonds
|
|
19.9
|
|
|
0.1
|
|
|
741.7
|
|
|
2.6
|
|
|
761.6
|
|
|
2.7
|
|
||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
|
168.9
|
|
|
0.4
|
|
|
1,343.8
|
|
|
3.4
|
|
|
1,512.7
|
|
|
3.8
|
|
||||||
Other Asset-Backed
|
|
1,107.6
|
|
|
4.4
|
|
|
960.4
|
|
|
2.0
|
|
|
2,068.0
|
|
|
6.4
|
|
||||||
Commercial Mortgage-Backed
|
|
—
|
|
|
—
|
|
|
154.4
|
|
|
0.9
|
|
|
154.4
|
|
|
0.9
|
|
||||||
Other
|
|
73.8
|
|
|
28.6
|
|
|
130.3
|
|
|
43.6
|
|
|
204.1
|
|
|
72.2
|
|
||||||
Total
|
|
$
|
7,974.2
|
|
|
$
|
48.6
|
|
|
$
|
16,706.1
|
|
|
$
|
121.6
|
|
|
$
|
24,680.3
|
|
|
$
|
170.2
|
|
Debt Securities with Unrealized Losses as of December 31, 2018
|
|
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
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,862.0
|
|
|
$
|
39.6
|
|
|
$
|
2,862.0
|
|
|
$
|
39.6
|
|
Obligations of States and Political Subdivisions
|
|
169.6
|
|
|
2.4
|
|
|
279.6
|
|
|
1.3
|
|
|
449.2
|
|
|
3.7
|
|
||||||
Government Sponsored Agency
|
|
8,368.8
|
|
|
33.5
|
|
|
6,822.4
|
|
|
117.0
|
|
|
15,191.2
|
|
|
150.5
|
|
||||||
Non-U.S. Government
|
|
5,065.2
|
|
|
0.8
|
|
|
1,274.0
|
|
|
9.0
|
|
|
6,339.2
|
|
|
9.8
|
|
||||||
Corporate Debt
|
|
712.7
|
|
|
4.1
|
|
|
1,097.4
|
|
|
18.8
|
|
|
1,810.1
|
|
|
22.9
|
|
||||||
Covered Bonds
|
|
646.4
|
|
|
3.7
|
|
|
696.9
|
|
|
10.4
|
|
|
1,343.3
|
|
|
14.1
|
|
||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
|
1,105.0
|
|
|
4.6
|
|
|
1,189.2
|
|
|
11.2
|
|
|
2,294.2
|
|
|
15.8
|
|
||||||
Other Asset-Backed
|
|
2,507.8
|
|
|
15.9
|
|
|
954.9
|
|
|
11.0
|
|
|
3,462.7
|
|
|
26.9
|
|
||||||
Commercial Mortgage-Backed
|
|
22.8
|
|
|
0.1
|
|
|
274.4
|
|
|
4.1
|
|
|
297.2
|
|
|
4.2
|
|
||||||
Other
|
|
50.5
|
|
|
18.8
|
|
|
112.6
|
|
|
50.8
|
|
|
163.1
|
|
|
69.6
|
|
||||||
Total
|
|
$
|
18,648.8
|
|
|
$
|
83.9
|
|
|
$
|
15,563.4
|
|
|
$
|
273.2
|
|
|
$
|
34,212.2
|
|
|
$
|
357.1
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(In Millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Cumulative Credit-Related Losses on Debt Securities Held — Beginning of Period
|
$
|
4.1
|
|
|
$
|
3.8
|
|
|
$
|
4.1
|
|
|
$
|
3.6
|
|
Plus: Losses on Newly Identified Impairments
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
0.2
|
|
||||
Additional Losses on Previously Identified Impairments
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
||||
Less: Current and Prior Period Losses on Debt Securities Sold During the Period
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Cumulative Credit-Related Losses on Debt Securities Held — End of Period
|
$
|
4.3
|
|
|
$
|
3.8
|
|
|
$
|
4.3
|
|
|
$
|
3.8
|
|
|
June 30, 2019
|
||
(In Millions)
|
Remaining Contractual
Maturity of the
Agreements
|
||
Repurchase Agreements
|
Overnight and
Continuous
|
||
U.S. Treasury and Agency Securities
|
$
|
125.2
|
|
Total Borrowings
|
125.2
|
|
|
Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 23
|
125.2
|
|
|
Amounts related to agreements not included in Note 23
|
—
|
|
|
December 31, 2018
|
||
(In Millions)
|
Remaining Contractual
Maturity of the
Agreements
|
||
Repurchase Agreements
|
Overnight and
Continuous
|
||
U.S. Treasury and Agency Securities
|
$
|
168.3
|
|
Total Borrowings
|
168.3
|
|
|
Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 23
|
168.3
|
|
|
Amounts related to agreements not included in Note 23
|
—
|
|
(In Millions)
|
June 30, 2019
|
|
December 31, 2018
|
||||
Commercial
|
|
|
|
||||
Commercial and Institutional
|
$
|
8,834.9
|
|
|
$
|
8,728.1
|
|
Commercial Real Estate
|
3,248.9
|
|
|
3,228.8
|
|
||
Non-U.S.
|
1,492.7
|
|
|
2,701.6
|
|
||
Lease Financing, net
|
88.5
|
|
|
90.7
|
|
||
Other
|
471.9
|
|
|
426.0
|
|
||
Total Commercial
|
14,136.9
|
|
|
15,175.2
|
|
||
Personal
|
|
|
|
||||
Private Client
|
10,637.7
|
|
|
10,733.3
|
|
||
Residential Real Estate
|
6,133.0
|
|
|
6,514.0
|
|
||
Other
|
74.7
|
|
|
67.5
|
|
||
Total Personal
|
16,845.4
|
|
|
17,314.8
|
|
||
Total Loans and Leases
|
$
|
30,982.3
|
|
|
$
|
32,490.0
|
|
Allowance for Credit Losses Assigned to Loans and Leases
|
(110.8
|
)
|
|
(112.6
|
)
|
||
Net Loans and Leases
|
$
|
30,871.5
|
|
|
$
|
32,377.4
|
|
•
|
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.
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||||||||
(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
|
$
|
5,782.3
|
|
|
$
|
2,936.4
|
|
|
$
|
116.2
|
|
|
$
|
8,834.9
|
|
|
$
|
5,477.4
|
|
|
$
|
3,159.8
|
|
|
$
|
90.9
|
|
|
$
|
8,728.1
|
|
Commercial Real Estate
|
1,079.8
|
|
|
2,156.5
|
|
|
12.6
|
|
|
3,248.9
|
|
|
1,209.6
|
|
|
1,992.2
|
|
|
27.0
|
|
|
3,228.8
|
|
||||||||
Non-U.S.
|
776.6
|
|
|
564.1
|
|
|
152.0
|
|
|
1,492.7
|
|
|
1,625.3
|
|
|
1,075.3
|
|
|
1.0
|
|
|
2,701.6
|
|
||||||||
Lease Financing, net
|
76.1
|
|
|
12.4
|
|
|
—
|
|
|
88.5
|
|
|
78.3
|
|
|
12.4
|
|
|
—
|
|
|
90.7
|
|
||||||||
Other
|
222.6
|
|
|
249.3
|
|
|
—
|
|
|
471.9
|
|
|
203.3
|
|
|
222.7
|
|
|
—
|
|
|
426.0
|
|
||||||||
Total Commercial
|
7,937.4
|
|
|
5,918.7
|
|
|
280.8
|
|
|
14,136.9
|
|
|
8,593.9
|
|
|
6,462.4
|
|
|
118.9
|
|
|
15,175.2
|
|
||||||||
Personal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Private Client
|
5,733.2
|
|
|
4,873.0
|
|
|
31.5
|
|
|
10,637.7
|
|
|
6,321.1
|
|
|
4,403.2
|
|
|
9.0
|
|
|
10,733.3
|
|
||||||||
Residential Real Estate
|
2,568.7
|
|
|
3,336.3
|
|
|
228.0
|
|
|
6,133.0
|
|
|
2,745.0
|
|
|
3,502.3
|
|
|
266.7
|
|
|
6,514.0
|
|
||||||||
Other
|
35.2
|
|
|
39.5
|
|
|
—
|
|
|
74.7
|
|
|
32.2
|
|
|
35.3
|
|
|
—
|
|
|
67.5
|
|
||||||||
Total Personal
|
8,337.1
|
|
|
8,248.8
|
|
|
259.5
|
|
|
16,845.4
|
|
|
9,098.3
|
|
|
7,940.8
|
|
|
275.7
|
|
|
17,314.8
|
|
||||||||
Total Loans and Leases
|
$
|
16,274.5
|
|
|
$
|
14,167.5
|
|
|
$
|
540.3
|
|
|
$
|
30,982.3
|
|
|
$
|
17,692.2
|
|
|
$
|
14,403.2
|
|
|
$
|
394.6
|
|
|
$
|
32,490.0
|
|
June 30, 2019
|
|||||||||||||||||||||||||||
(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
|
$
|
8,815.8
|
|
|
$
|
6.6
|
|
|
$
|
2.7
|
|
|
$
|
—
|
|
|
$
|
8,825.1
|
|
|
$
|
9.8
|
|
|
$
|
8,834.9
|
|
Commercial Real Estate
|
3,230.4
|
|
|
4.4
|
|
|
5.3
|
|
|
4.8
|
|
|
3,244.9
|
|
|
4.0
|
|
|
3,248.9
|
|
|||||||
Non-U.S.
|
1,490.5
|
|
|
1.6
|
|
|
—
|
|
|
—
|
|
|
1,492.1
|
|
|
0.6
|
|
|
1,492.7
|
|
|||||||
Lease Financing, net
|
88.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
88.5
|
|
|
—
|
|
|
88.5
|
|
|||||||
Other
|
471.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
471.9
|
|
|
—
|
|
|
471.9
|
|
|||||||
Total Commercial
|
14,097.1
|
|
|
12.6
|
|
|
8.0
|
|
|
4.8
|
|
|
14,122.5
|
|
|
14.4
|
|
|
14,136.9
|
|
|||||||
Personal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Private Client
|
10,532.7
|
|
|
88.2
|
|
|
15.4
|
|
|
1.2
|
|
|
10,637.5
|
|
|
0.2
|
|
|
10,637.7
|
|
|||||||
Residential Real Estate
|
6,026.8
|
|
|
0.7
|
|
|
4.7
|
|
|
0.3
|
|
|
6,032.5
|
|
|
100.5
|
|
|
6,133.0
|
|
|||||||
Other
|
74.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
74.7
|
|
|
—
|
|
|
74.7
|
|
|||||||
Total Personal
|
16,634.2
|
|
|
88.9
|
|
|
20.1
|
|
|
1.5
|
|
|
16,744.7
|
|
|
100.7
|
|
|
16,845.4
|
|
|||||||
Total Loans and Leases
|
$
|
30,731.3
|
|
|
$
|
101.5
|
|
|
$
|
28.1
|
|
|
$
|
6.3
|
|
|
$
|
30,867.2
|
|
|
$
|
115.1
|
|
|
$
|
30,982.3
|
|
|
Other Real Estate Owned
|
|
|
$
|
3.8
|
|
|
|
|||||||||||||||||||
|
Total Nonperforming Assets
|
|
|
$
|
118.9
|
|
|
|
December 31, 2018
|
|||||||||||||||||||||||||||
(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
|
$
|
8,678.2
|
|
|
$
|
37.4
|
|
|
$
|
4.5
|
|
|
$
|
1.2
|
|
|
$
|
8,721.3
|
|
|
$
|
6.8
|
|
|
$
|
8,728.1
|
|
Commercial Real Estate
|
3,191.5
|
|
|
8.4
|
|
|
15.6
|
|
|
6.4
|
|
|
3,221.9
|
|
|
6.9
|
|
|
3,228.8
|
|
|||||||
Non-U.S.
|
2,701.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,701.2
|
|
|
0.4
|
|
|
2,701.6
|
|
|||||||
Lease Financing, net
|
90.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
90.7
|
|
|
—
|
|
|
90.7
|
|
|||||||
Other
|
426.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
426.0
|
|
|
—
|
|
|
426.0
|
|
|||||||
Total Commercial
|
15,087.6
|
|
|
45.8
|
|
|
20.1
|
|
|
7.6
|
|
|
15,161.1
|
|
|
14.1
|
|
|
15,175.2
|
|
|||||||
Personal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Private Client
|
10,681.1
|
|
|
39.5
|
|
|
12.5
|
|
|
—
|
|
|
10,733.1
|
|
|
0.2
|
|
|
10,733.3
|
|
|||||||
Residential Real Estate
|
6,376.8
|
|
|
27.2
|
|
|
6.2
|
|
|
8.8
|
|
|
6,419.0
|
|
|
95.0
|
|
|
6,514.0
|
|
|||||||
Other
|
67.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67.5
|
|
|
—
|
|
|
67.5
|
|
|||||||
Total Personal
|
17,125.4
|
|
|
66.7
|
|
|
18.7
|
|
|
8.8
|
|
|
17,219.6
|
|
|
95.2
|
|
|
17,314.8
|
|
|||||||
Total Loans and Leases
|
$
|
32,213.0
|
|
|
$
|
112.5
|
|
|
$
|
38.8
|
|
|
$
|
16.4
|
|
|
$
|
32,380.7
|
|
|
$
|
109.3
|
|
|
$
|
32,490.0
|
|
|
Other Real Estate Owned
|
|
|
$
|
8.4
|
|
|
|
|||||||||||||||||||
|
Total Nonperforming Assets
|
|
|
$
|
117.7
|
|
|
|
|
As of June 30, 2019
|
|
As of December 31, 2018
|
||||||||||||||||||||
(In Millions)
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Specific
Allowance
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Specific
Allowance
|
||||||||||||
With No Related Specific Allowance
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and Institutional
|
$
|
—
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
0.2
|
|
|
$
|
0.4
|
|
|
$
|
—
|
|
Commercial Real Estate
|
2.7
|
|
|
4.5
|
|
|
—
|
|
|
5.8
|
|
|
7.6
|
|
|
—
|
|
||||||
Private Client
|
1.7
|
|
|
1.7
|
|
|
—
|
|
|
1.7
|
|
|
1.7
|
|
|
—
|
|
||||||
Residential Real Estate
|
80.0
|
|
|
108.8
|
|
|
—
|
|
|
76.7
|
|
|
104.7
|
|
|
—
|
|
||||||
With a Related Specific Allowance
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and Institutional
|
9.7
|
|
|
11.3
|
|
|
4.7
|
|
|
6.4
|
|
|
7.3
|
|
|
3.0
|
|
||||||
Commercial Real Estate
|
1.3
|
|
|
1.5
|
|
|
1.1
|
|
|
2.6
|
|
|
2.8
|
|
|
1.1
|
|
||||||
Residential Real Estate
|
25.1
|
|
|
28.7
|
|
|
3.0
|
|
|
22.8
|
|
|
26.1
|
|
|
3.1
|
|
||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
13.7
|
|
|
17.4
|
|
|
5.8
|
|
|
15.0
|
|
|
18.1
|
|
|
4.1
|
|
||||||
Personal
|
106.8
|
|
|
139.2
|
|
|
3.0
|
|
|
101.2
|
|
|
132.5
|
|
|
3.1
|
|
||||||
Total
|
$
|
120.5
|
|
|
$
|
156.6
|
|
|
$
|
8.8
|
|
|
$
|
116.2
|
|
|
$
|
150.6
|
|
|
$
|
7.2
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||||||||||
(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
|
$
|
0.6
|
|
|
$
|
—
|
|
|
$
|
3.6
|
|
|
$
|
—
|
|
|
$
|
0.4
|
|
|
$
|
—
|
|
|
$
|
11.6
|
|
|
$
|
—
|
|
Commercial Real Estate
|
5.5
|
|
|
0.3
|
|
|
6.9
|
|
|
0.1
|
|
|
4.6
|
|
|
0.3
|
|
|
6.7
|
|
|
0.1
|
|
||||||||
Private Client
|
1.7
|
|
|
0.1
|
|
|
0.6
|
|
|
—
|
|
|
1.7
|
|
|
0.1
|
|
|
0.6
|
|
|
—
|
|
||||||||
Residential Real Estate
|
88.3
|
|
|
0.4
|
|
|
99.5
|
|
|
0.4
|
|
|
88.8
|
|
|
1.0
|
|
|
96.7
|
|
|
0.9
|
|
||||||||
With a Related Specific Allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial and Institutional
|
7.7
|
|
|
—
|
|
|
3.5
|
|
|
—
|
|
|
7.4
|
|
|
—
|
|
|
1.8
|
|
|
—
|
|
||||||||
Commercial Real Estate
|
1.3
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
|
1.5
|
|
|
—
|
|
|
1.6
|
|
|
—
|
|
||||||||
Residential Real Estate
|
22.5
|
|
|
—
|
|
|
10.7
|
|
|
—
|
|
|
21.7
|
|
|
—
|
|
|
12.2
|
|
|
—
|
|
||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial
|
15.1
|
|
|
0.3
|
|
|
15.4
|
|
|
0.1
|
|
|
13.9
|
|
|
0.3
|
|
|
21.7
|
|
|
0.1
|
|
||||||||
Personal
|
112.5
|
|
|
0.5
|
|
|
110.8
|
|
|
0.4
|
|
|
112.2
|
|
|
1.1
|
|
|
109.5
|
|
|
0.9
|
|
||||||||
Total
|
$
|
127.6
|
|
|
$
|
0.8
|
|
|
$
|
126.2
|
|
|
$
|
0.5
|
|
|
$
|
126.1
|
|
|
$
|
1.4
|
|
|
$
|
131.2
|
|
|
$
|
1.0
|
|
($ In Millions)
|
Three Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||
|
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
|
|
|
$
|
7.6
|
|
|
$
|
8.8
|
|
Commercial Real Estate
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||
Total Commercial
|
2
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
7.6
|
|
|
8.8
|
|
||||
Personal
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Private Client
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Residential Real Estate
|
13
|
|
|
7.7
|
|
|
7.8
|
|
|
26
|
|
|
17.5
|
|
|
17.7
|
|
||||
Total Personal
|
13
|
|
|
7.7
|
|
|
7.8
|
|
|
26
|
|
|
17.5
|
|
|
17.7
|
|
||||
Total Loans and Leases
|
15
|
|
|
$
|
7.7
|
|
|
$
|
7.8
|
|
|
29
|
|
|
$
|
25.1
|
|
|
$
|
26.5
|
|
($ In Millions)
|
Three Months Ended June 30, 2018
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||
|
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
|
|
|
$
|
0.3
|
|
|
$
|
0.5
|
|
Commercial Real Estate
|
1
|
|
|
1.3
|
|
|
1.3
|
|
|
1
|
|
|
1.3
|
|
|
1.3
|
|
||||
Total Commercial
|
1
|
|
|
1.3
|
|
|
1.3
|
|
|
2
|
|
|
1.6
|
|
|
1.8
|
|
||||
Personal
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Private Client
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
0.1
|
|
||||
Residential Real Estate
|
12
|
|
|
10.0
|
|
|
11.0
|
|
|
26
|
|
|
17.6
|
|
|
19.7
|
|
||||
Total Personal
|
12
|
|
|
10.0
|
|
|
11.0
|
|
|
27
|
|
|
17.6
|
|
|
19.8
|
|
||||
Total Loans and Leases
|
13
|
|
|
$
|
11.3
|
|
|
$
|
12.3
|
|
|
29
|
|
|
$
|
19.2
|
|
|
$
|
21.6
|
|
|
Three Months Ended June 30,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||||
(In Millions)
|
Commercial
|
|
Personal
|
|
Total
|
|
Commercial
|
|
Personal
|
|
Total
|
||||||||||||
Balance at Beginning of Period
|
$
|
78.6
|
|
|
$
|
60.8
|
|
|
$
|
139.4
|
|
|
$
|
77.1
|
|
|
$
|
70.7
|
|
|
$
|
147.8
|
|
Charge-Offs
|
—
|
|
|
(0.6
|
)
|
|
(0.6
|
)
|
|
(0.1
|
)
|
|
(2.1
|
)
|
|
(2.2
|
)
|
||||||
Recoveries
|
0.3
|
|
|
1.5
|
|
|
1.8
|
|
|
0.5
|
|
|
1.6
|
|
|
2.1
|
|
||||||
Net (Charge-Offs) Recoveries
|
0.3
|
|
|
0.9
|
|
|
1.2
|
|
|
0.4
|
|
|
(0.5
|
)
|
|
(0.1
|
)
|
||||||
Provision for Credit Losses
|
(0.5
|
)
|
|
(6.0
|
)
|
|
(6.5
|
)
|
|
4.3
|
|
|
(2.8
|
)
|
|
1.5
|
|
||||||
Balance at End of Period
|
$
|
78.4
|
|
|
$
|
55.7
|
|
|
$
|
134.1
|
|
|
$
|
81.8
|
|
|
$
|
67.4
|
|
|
$
|
149.2
|
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||||
(In Millions)
|
Commercial
|
|
Personal
|
|
Total
|
|
Commercial
|
|
Personal
|
|
Total
|
||||||||||||
Balance at Beginning of Period
|
$
|
78.7
|
|
|
$
|
59.5
|
|
|
$
|
138.2
|
|
|
$
|
80.8
|
|
|
$
|
73.0
|
|
|
$
|
153.8
|
|
Charge-Offs
|
(0.1
|
)
|
|
(1.5
|
)
|
|
(1.6
|
)
|
|
(0.9
|
)
|
|
(5.6
|
)
|
|
(6.5
|
)
|
||||||
Recoveries
|
0.7
|
|
|
3.3
|
|
|
4.0
|
|
|
1.1
|
|
|
2.3
|
|
|
3.4
|
|
||||||
Net (Charge-Offs) Recoveries
|
0.6
|
|
|
1.8
|
|
|
2.4
|
|
|
0.2
|
|
|
(3.3
|
)
|
|
(3.1
|
)
|
||||||
Provision for Credit Losses
|
(0.9
|
)
|
|
(5.6
|
)
|
|
(6.5
|
)
|
|
0.8
|
|
|
(2.3
|
)
|
|
(1.5
|
)
|
||||||
Balance at End of Period
|
$
|
78.4
|
|
|
$
|
55.7
|
|
|
$
|
134.1
|
|
|
$
|
81.8
|
|
|
$
|
67.4
|
|
|
$
|
149.2
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
(In Millions)
|
Commercial
|
|
Personal
|
|
Total
|
|
Commercial
|
|
Personal
|
|
Total
|
||||||||||||
Loans and Leases
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Specifically Evaluated for Impairment
|
$
|
13.7
|
|
|
$
|
106.8
|
|
|
$
|
120.5
|
|
|
$
|
15.0
|
|
|
$
|
101.2
|
|
|
$
|
116.2
|
|
Evaluated for Inherent Impairment
|
14,123.2
|
|
|
16,738.6
|
|
|
30,861.8
|
|
|
15,160.2
|
|
|
17,213.6
|
|
|
32,373.8
|
|
||||||
Total Loans and Leases
|
14,136.9
|
|
|
16,845.4
|
|
|
30,982.3
|
|
|
15,175.2
|
|
|
17,314.8
|
|
|
32,490.0
|
|
||||||
Allowance for Credit Losses on Credit Exposures
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Specifically Evaluated for Impairment
|
5.8
|
|
|
3.0
|
|
|
8.8
|
|
|
4.1
|
|
|
3.1
|
|
|
7.2
|
|
||||||
Evaluated for Inherent Impairment
|
54.1
|
|
|
47.9
|
|
|
102.0
|
|
|
53.5
|
|
|
51.9
|
|
|
105.4
|
|
||||||
Allowance Assigned to Loans and Leases
|
59.9
|
|
|
50.9
|
|
|
110.8
|
|
|
57.6
|
|
|
55.0
|
|
|
112.6
|
|
||||||
Allowance for Undrawn Exposures
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commitments and Standby Letters of Credit
|
18.5
|
|
|
4.8
|
|
|
23.3
|
|
|
21.1
|
|
|
4.5
|
|
|
25.6
|
|
||||||
Total Allowance for Credit Losses
|
$
|
78.4
|
|
|
$
|
55.7
|
|
|
$
|
134.1
|
|
|
$
|
78.7
|
|
|
$
|
59.5
|
|
|
$
|
138.2
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||
(In Millions)
|
June 30, 2019
|
||||||
Operating Lease Cost
|
$
|
24.2
|
|
|
$
|
49.4
|
|
Variable Lease Cost
|
9.4
|
|
|
19.5
|
|
||
Sublease Income
|
(1.5
|
)
|
|
(3.0
|
)
|
||
Total Lease Cost
|
$
|
32.1
|
|
|
$
|
65.9
|
|
(In Millions)
|
Maturity of Lease Liabilities
|
|
|
2019 (excluding the six months ended June 30, 2019)
|
$
|
50.9
|
|
2020
|
96.9
|
|
|
2021
|
81.3
|
|
|
2022
|
68.9
|
|
|
2023
|
57.5
|
|
|
Later Years
|
207.0
|
|
|
Total Lease Payments
|
562.5
|
|
|
Less: Imputed Interest
|
(70.5
|
)
|
|
Present Value of Lease Liabilities
|
$
|
492.0
|
|
(In Millions)
|
|
Location of Lease Assets and Liabilities in the Balance Sheet
|
|
June 30, 2019
|
||
Assets
|
|
|
|
|
||
Operating Lease Right-of-Use Asset
|
|
Other Assets
|
|
$
|
436.5
|
|
Liabilities
|
|
|
|
|
||
Operating Lease Liability
|
|
Other Liabilities
|
|
$
|
492.0
|
|
|
June 30, 2019
|
Operating Leases
|
|
Weighted-Average Remaining Lease Term
|
7.6 years
|
Weighted-Average Discount Rate
|
3.4%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||
(In Millions)
|
June 30, 2019
|
||||||
Cash paid for amounts included in the measurement of lease liabilities
|
|
|
|
||||
Operating cash flows for operating leases
|
$
|
22.0
|
|
|
$
|
50.3
|
|
Right-of-use assets obtained in exchange for new operating lease liabilities
|
2.2
|
|
|
3.2
|
|
(In Millions)
|
Future Minimum Lease Payments
|
|
|
2019
|
$
|
98.8
|
|
2020
|
97.8
|
|
|
2021
|
85.9
|
|
|
2022
|
77.2
|
|
|
2023
|
67.7
|
|
|
Later Years
|
335.7
|
|
|
Total Minimum Lease Payments
|
763.1
|
|
|
Less: Sublease Rentals
|
(23.4
|
)
|
|
Net Minimum Lease Payments
|
$
|
739.7
|
|
(In Millions)
|
June 30, 2019
|
|
December 31, 2018
|
||||
Corporate & Institutional Services
|
$
|
610.9
|
|
|
$
|
598.2
|
|
Wealth Management
|
71.1
|
|
|
71.1
|
|
||
Total Goodwill
|
$
|
682.0
|
|
|
$
|
669.3
|
|
(In Millions)
|
June 30, 2019
|
|
December 31, 2018
|
||||
Gross Carrying Amount
|
$
|
208.8
|
|
|
$
|
211.1
|
|
Less: Accumulated Amortization
|
78.8
|
|
|
72.5
|
|
||
Net Book Value
|
$
|
130.0
|
|
|
$
|
138.6
|
|
Three Months Ended June 30,
|
Corporate &
Institutional Services |
|
Wealth
Management |
|
Treasury and
Other |
|
Total
Consolidated |
||||||||||||||||||||||||
($ In Millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
Noninterest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Trust, Investment and Other Servicing Fees
|
$
|
549.4
|
|
|
$
|
552.2
|
|
|
$
|
406.1
|
|
|
$
|
390.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
955.5
|
|
|
$
|
942.9
|
|
Foreign Exchange Trading Income
|
57.3
|
|
|
60.1
|
|
|
3.2
|
|
|
1.0
|
|
|
—
|
|
|
17.8
|
|
|
60.5
|
|
|
78.9
|
|
||||||||
Other Noninterest Income
|
44.8
|
|
|
45.0
|
|
|
31.5
|
|
|
26.7
|
|
|
(3.1
|
)
|
|
(0.7
|
)
|
|
73.2
|
|
|
71.0
|
|
||||||||
Net Interest Income*
|
229.6
|
|
|
247.9
|
|
|
195.5
|
|
|
209.6
|
|
|
—
|
|
|
(34.9
|
)
|
|
425.1
|
|
|
422.6
|
|
||||||||
Revenue*
|
881.1
|
|
|
905.2
|
|
|
636.3
|
|
|
628.0
|
|
|
(3.1
|
)
|
|
(17.8
|
)
|
|
1,514.3
|
|
|
1,515.4
|
|
||||||||
Provision for Credit Losses
|
(2.4
|
)
|
|
3.0
|
|
|
(4.1
|
)
|
|
(1.5
|
)
|
|
—
|
|
|
—
|
|
|
(6.5
|
)
|
|
1.5
|
|
||||||||
Noninterest Expense
|
633.3
|
|
|
599.3
|
|
|
372.1
|
|
|
369.5
|
|
|
0.8
|
|
|
28.6
|
|
|
1,006.2
|
|
|
997.4
|
|
||||||||
Income before Income Taxes*
|
250.2
|
|
|
302.9
|
|
|
268.3
|
|
|
260.0
|
|
|
(3.9
|
)
|
|
(46.4
|
)
|
|
514.6
|
|
|
516.5
|
|
||||||||
Provision for Income Taxes*
|
58.3
|
|
|
63.0
|
|
|
67.9
|
|
|
64.1
|
|
|
(1.0
|
)
|
|
(1.0
|
)
|
|
125.2
|
|
|
126.1
|
|
||||||||
Net Income
|
$
|
191.9
|
|
|
$
|
239.9
|
|
|
$
|
200.4
|
|
|
$
|
195.9
|
|
|
$
|
(2.9
|
)
|
|
$
|
(45.4
|
)
|
|
$
|
389.4
|
|
|
$
|
390.4
|
|
Percentage of Consolidated Net Income
|
49
|
%
|
|
62
|
%
|
|
52
|
%
|
|
50
|
%
|
|
(1
|
)%
|
|
(12
|
)%
|
|
100
|
%
|
|
100
|
%
|
||||||||
Average Assets
|
$
|
86,696.3
|
|
|
$
|
82,153.1
|
|
|
$
|
29,662.6
|
|
|
$
|
26,086.3
|
|
|
$
|
—
|
|
|
$
|
15,627.3
|
|
|
$
|
116,358.9
|
|
|
$
|
123,866.7
|
|
Six Months Ended June 30,
|
Corporate &
Institutional Services |
|
Wealth
Management |
|
Treasury and
Other |
|
Total
Consolidated |
||||||||||||||||||||||||
($ In Millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
Noninterest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Trust, Investment and Other Servicing Fees
|
$
|
1,084.6
|
|
|
$
|
1,096.5
|
|
|
$
|
799.8
|
|
|
$
|
784.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,884.4
|
|
|
$
|
1,880.6
|
|
Foreign Exchange Trading Income
|
117.0
|
|
|
122.5
|
|
|
9.7
|
|
|
2.2
|
|
|
—
|
|
|
32.7
|
|
|
126.7
|
|
|
157.4
|
|
||||||||
Other Noninterest Income
|
88.2
|
|
|
91.6
|
|
|
57.0
|
|
|
52.4
|
|
|
(8.2
|
)
|
|
2.8
|
|
|
137.0
|
|
|
146.8
|
|
||||||||
Net Interest Income*
|
464.4
|
|
|
477.3
|
|
|
390.5
|
|
|
408.4
|
|
|
—
|
|
|
(70.4
|
)
|
|
854.9
|
|
|
815.3
|
|
||||||||
Revenue*
|
1,754.2
|
|
|
1,787.9
|
|
|
1,257.0
|
|
|
1,247.1
|
|
|
(8.2
|
)
|
|
(34.9
|
)
|
|
3,003.0
|
|
|
3,000.1
|
|
||||||||
Provision for Credit Losses
|
(3.5
|
)
|
|
(0.9
|
)
|
|
(3.0
|
)
|
|
(0.6
|
)
|
|
—
|
|
|
—
|
|
|
(6.5
|
)
|
|
(1.5
|
)
|
||||||||
Noninterest Expense
|
1,281.3
|
|
|
1,184.9
|
|
|
752.0
|
|
|
735.2
|
|
|
1.6
|
|
|
72.6
|
|
|
2,034.9
|
|
|
1,992.7
|
|
||||||||
Income before Income Taxes*
|
476.4
|
|
|
603.9
|
|
|
508.0
|
|
|
512.5
|
|
|
(9.8
|
)
|
|
(107.5
|
)
|
|
974.6
|
|
|
1,008.9
|
|
||||||||
Provision for Income Taxes*
|
111.9
|
|
|
129.8
|
|
|
128.7
|
|
|
126.5
|
|
|
(2.5
|
)
|
|
(19.4
|
)
|
|
238.1
|
|
|
236.9
|
|
||||||||
Net Income
|
$
|
364.5
|
|
|
$
|
474.1
|
|
|
$
|
379.3
|
|
|
$
|
386.0
|
|
|
$
|
(7.3
|
)
|
|
$
|
(88.1
|
)
|
|
$
|
736.5
|
|
|
$
|
772.0
|
|
Percentage of Consolidated Net Income
|
49
|
%
|
|
61
|
%
|
|
52
|
%
|
|
50
|
%
|
|
(1
|
)%
|
|
(11
|
)%
|
|
100
|
%
|
|
100
|
%
|
||||||||
Average Assets
|
$
|
88,512.4
|
|
|
$
|
82,891.4
|
|
|
$
|
29,367.0
|
|
|
$
|
26,097.1
|
|
|
$
|
—
|
|
|
$
|
15,189.8
|
|
|
$
|
117,879.4
|
|
|
$
|
124,178.3
|
|
(In Millions)
|
Balance at June 30, 2019
|
|
Net Change
|
|
Balance at December 31, 2018
|
||||||
Net Unrealized Gains (Losses) on Debt Securities Available for Sale
|
$
|
133.1
|
|
|
$
|
248.0
|
|
|
$
|
(114.9
|
)
|
Net Unrealized Gains (Losses) on Cash Flow Hedges
|
4.5
|
|
|
0.5
|
|
|
4.0
|
|
|||
Net Foreign Currency Adjustments
|
96.8
|
|
|
28.9
|
|
|
67.9
|
|
|||
Net Pension and Other Postretirement Benefit Adjustments
|
(394.2
|
)
|
|
16.5
|
|
|
(410.7
|
)
|
|||
Total
|
$
|
(159.8
|
)
|
|
$
|
293.9
|
|
|
$
|
(453.7
|
)
|
(In Millions)
|
Balance at June 30, 2018
|
|
Net Change
|
|
Reclassification of Certain Tax Effects from AOCI
|
|
Balance at December 31, 2017
|
||||||||
Net Unrealized Gains (Losses) on Debt Securities Available for Sale
|
$
|
(167.5
|
)
|
|
$
|
(74.9
|
)
|
|
$
|
(17.8
|
)
|
|
$
|
(74.8
|
)
|
Net Unrealized Gains (Losses) on Cash Flow Hedges
|
(1.8
|
)
|
|
(7.2
|
)
|
|
0.9
|
|
|
4.5
|
|
||||
Net Foreign Currency Adjustments
|
46.2
|
|
|
0.5
|
|
|
47.5
|
|
|
(1.8
|
)
|
||||
Net Pension and Other Postretirement Benefit Adjustments
|
(385.0
|
)
|
|
13.1
|
|
|
(55.9
|
)
|
|
(342.2
|
)
|
||||
Total
|
$
|
(508.1
|
)
|
|
$
|
(68.5
|
)
|
|
$
|
(25.3
|
)
|
|
$
|
(414.3
|
)
|
|
Three Months Ended June 30,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||||
(In Millions)
|
Before Tax
|
|
Tax Effect
|
|
After Tax
|
|
Before Tax
|
|
Tax Effect
|
|
After Tax
|
||||||||||||
Unrealized Gains (Losses) on Debt Securities Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized Gains (Losses) on Debt Securities Available for Sale
|
$
|
217.6
|
|
|
$
|
(55.3
|
)
|
|
$
|
162.3
|
|
|
$
|
(26.4
|
)
|
|
$
|
6.5
|
|
|
$
|
(19.9
|
)
|
Reclassification Adjustment for (Gains) Losses Included in Net Income
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net Change
|
$
|
217.7
|
|
|
$
|
(55.3
|
)
|
|
$
|
162.4
|
|
|
$
|
(26.4
|
)
|
|
$
|
6.5
|
|
|
$
|
(19.9
|
)
|
Unrealized Gains (Losses) on Cash Flow Hedges
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign Exchange Contracts
|
$
|
9.4
|
|
|
$
|
(2.3
|
)
|
|
$
|
7.1
|
|
|
$
|
12.2
|
|
|
$
|
(3.1
|
)
|
|
$
|
9.1
|
|
Interest Rate Contracts
|
0.8
|
|
|
(0.2
|
)
|
|
0.6
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
||||||
Reclassification Adjustment for (Gains) Losses Included in Net Income
|
(3.8
|
)
|
|
0.9
|
|
|
(2.9
|
)
|
|
(17.0
|
)
|
|
4.3
|
|
|
(12.7
|
)
|
||||||
Net Change
|
$
|
6.4
|
|
|
$
|
(1.6
|
)
|
|
$
|
4.8
|
|
|
$
|
(4.7
|
)
|
|
$
|
1.2
|
|
|
$
|
(3.5
|
)
|
Foreign Currency Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign Currency Translation Adjustments
|
$
|
9.0
|
|
|
$
|
(0.3
|
)
|
|
$
|
8.7
|
|
|
$
|
(105.5
|
)
|
|
$
|
2.3
|
|
|
$
|
(103.2
|
)
|
Long-Term Intra-Entity Foreign Currency Transaction Gains (Losses)
|
(0.7
|
)
|
|
0.2
|
|
|
(0.5
|
)
|
|
(1.9
|
)
|
|
0.6
|
|
|
(1.3
|
)
|
||||||
Net Investment Hedge Gains (Losses)
|
7.9
|
|
|
(2.0
|
)
|
|
5.9
|
|
|
157.7
|
|
|
(39.6
|
)
|
|
118.1
|
|
||||||
Net Change
|
$
|
16.2
|
|
|
$
|
(2.1
|
)
|
|
$
|
14.1
|
|
|
$
|
50.3
|
|
|
$
|
(36.7
|
)
|
|
$
|
13.6
|
|
Pension and Other Postretirement Benefit Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net Actuarial Gain (Loss)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Reclassification Adjustment for (Gains) Losses Included in Net Income
|
5.6
|
|
|
(1.4
|
)
|
|
4.2
|
|
|
9.5
|
|
|
(2.1
|
)
|
|
7.4
|
|
||||||
Net Change
|
$
|
5.6
|
|
|
$
|
(1.4
|
)
|
|
$
|
4.2
|
|
|
$
|
9.5
|
|
|
$
|
(2.1
|
)
|
|
$
|
7.4
|
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||||
(In Millions)
|
Before Tax
|
|
Tax Effect
|
|
After Tax
|
|
Before Tax
|
|
Tax Effect
|
|
After Tax
|
||||||||||||
Unrealized Gains (Losses) on Securities Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized Gains (Losses) on Securities Available for Sale
|
$
|
332.9
|
|
|
$
|
(85.2
|
)
|
|
$
|
247.7
|
|
|
$
|
(101.8
|
)
|
|
$
|
26.9
|
|
|
$
|
(74.9
|
)
|
Reclassification Adjustment for (Gains) Losses Included in Net Income
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net Change
|
$
|
333.2
|
|
|
$
|
(85.2
|
)
|
|
$
|
248.0
|
|
|
$
|
(101.8
|
)
|
|
$
|
26.9
|
|
|
$
|
(74.9
|
)
|
Unrealized Gains (Losses) on Cash Flow Hedges
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign Exchange Contracts
|
$
|
16.6
|
|
|
$
|
(4.0
|
)
|
|
$
|
12.6
|
|
|
$
|
25.2
|
|
|
$
|
(6.2
|
)
|
|
$
|
19.0
|
|
Interest Rate Contracts
|
1.4
|
|
|
(0.4
|
)
|
|
1.0
|
|
|
(1.3
|
)
|
|
0.3
|
|
|
(1.0
|
)
|
||||||
Reclassification Adjustment for (Gains) Losses Included in Net Income
|
(17.4
|
)
|
|
4.3
|
|
|
(13.1
|
)
|
|
(33.6
|
)
|
|
8.4
|
|
|
(25.2
|
)
|
||||||
Net Change
|
$
|
0.6
|
|
|
$
|
(0.1
|
)
|
|
$
|
0.5
|
|
|
$
|
(9.7
|
)
|
|
$
|
2.5
|
|
|
$
|
(7.2
|
)
|
Foreign Currency Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign Currency Translation Adjustments
|
$
|
2.6
|
|
|
$
|
1.2
|
|
|
$
|
3.8
|
|
|
$
|
(60.9
|
)
|
|
$
|
(0.5
|
)
|
|
$
|
(61.4
|
)
|
Long-Term Intra-Entity Foreign Currency Transaction Gains (Losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
|
0.3
|
|
|
(0.4
|
)
|
||||||
Net Investment Hedge Gains (Losses)
|
36.5
|
|
|
(11.4
|
)
|
|
25.1
|
|
|
83.4
|
|
|
(21.1
|
)
|
|
62.3
|
|
||||||
Net Change
|
$
|
39.1
|
|
|
$
|
(10.2
|
)
|
|
$
|
28.9
|
|
|
$
|
21.8
|
|
|
$
|
(21.3
|
)
|
|
$
|
0.5
|
|
Pension and Other Postretirement Benefit Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net Actuarial Gain (Loss)
|
$
|
11.3
|
|
|
$
|
(3.1
|
)
|
|
$
|
8.2
|
|
|
$
|
10.1
|
|
|
$
|
(2.5
|
)
|
|
$
|
7.6
|
|
Reclassification Adjustment for (Gains) Losses Included in Net Income
|
11.0
|
|
|
(2.7
|
)
|
|
8.3
|
|
|
18.6
|
|
|
(13.1
|
)
|
|
5.5
|
|
||||||
Net Change
|
$
|
22.3
|
|
|
$
|
(5.8
|
)
|
|
$
|
16.5
|
|
|
$
|
28.7
|
|
|
$
|
(15.6
|
)
|
|
$
|
13.1
|
|
(In Millions)
|
Location of
Reclassification Adjustments Recognized
in Income
|
Amount of Reclassification
Adjustments Recognized
in Income
|
||||||
Three Months Ended
|
|
Six Months Ended
|
||||||
June 30, 2019
|
||||||||
Debt Securities Available for Sale
|
|
|
|
|
||||
Realized (Gains) Losses on Debt Securities Available for Sale
|
Investment Security Gains (Losses), net
|
$
|
0.1
|
|
|
$
|
0.3
|
|
Realized (Gains) Losses on Cash Flow Hedges
|
|
|
|
|
||||
Foreign Exchange Contracts
|
Other Operating Income
|
$
|
(0.3
|
)
|
|
$
|
0.3
|
|
|
Interest Income
|
(3.7
|
)
|
|
(18.1
|
)
|
||
Interest Rate Contracts
|
Interest Expense
|
0.2
|
|
|
0.4
|
|
||
Total Realized (Gains) on Cash Flow Hedges
|
|
$
|
(3.8
|
)
|
|
$
|
(17.4
|
)
|
Pension and Other Postretirement Benefit Adjustments
|
|
|
|
|
||||
Amortization of Net Actuarial Loss
|
Employee Benefits
|
$
|
5.6
|
|
|
$
|
11.1
|
|
Amortization of Prior Service Cost
|
Employee Benefits
|
—
|
|
|
(0.1
|
)
|
||
Gross Reclassification Adjustment
|
|
$
|
5.6
|
|
|
$
|
11.0
|
|
(In Millions)
|
Location of
Reclassification Adjustments Recognized
in Income
|
Amount of Reclassification
Adjustments Recognized
in Income
|
||||||
Three Months Ended
|
|
Six Months Ended
|
||||||
June 30, 2018
|
||||||||
Debt Securities Available for Sale
|
|
|
|
|
||||
Realized (Gains) Losses on Debt Securities Available for Sale
|
Investment Security Gains (Losses), net
|
$
|
—
|
|
|
$
|
—
|
|
Realized (Gains) Losses on Cash Flow Hedges
|
|
|
|
|
||||
Foreign Exchange Contracts
|
Other Operating Income
|
$
|
(1.1
|
)
|
|
$
|
(3.5
|
)
|
|
Interest Income
|
(16.0
|
)
|
|
(30.2
|
)
|
||
Interest Rate Contracts
|
Interest Income
|
0.1
|
|
|
0.1
|
|
||
Total Realized (Gains) on Cash Flow Hedges
|
|
$
|
(17.0
|
)
|
|
$
|
(33.6
|
)
|
Pension and Other Postretirement Benefit Adjustments
|
|
|
|
|
||||
Amortization of Net Actuarial Loss
|
Employee Benefits
|
$
|
9.5
|
|
|
$
|
18.7
|
|
Amortization of Prior Service Cost
|
Employee Benefits
|
—
|
|
|
(0.1
|
)
|
||
Gross Reclassification Adjustment
|
|
$
|
9.5
|
|
|
$
|
18.6
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
($ In Millions Except Per Common Share Information)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Basic Net Income Per Common Share
|
|
|
|
|
|
|
|
||||||||
Average Number of Common Shares Outstanding
|
216,139,033
|
|
|
224,207,590
|
|
|
217,182,123
|
|
|
224,940,308
|
|
||||
Net Income
|
$
|
389.4
|
|
|
$
|
390.4
|
|
|
$
|
736.5
|
|
|
$
|
772.0
|
|
Less: Dividends on Preferred Stock
|
5.9
|
|
|
5.9
|
|
|
23.2
|
|
|
23.2
|
|
||||
Net Income Applicable to Common Stock
|
383.5
|
|
|
384.5
|
|
|
713.3
|
|
|
748.8
|
|
||||
Less: Earnings Allocated to Participating Securities
|
3.8
|
|
|
5.0
|
|
|
8.1
|
|
|
10.2
|
|
||||
Earnings Allocated to Common Shares Outstanding
|
379.7
|
|
|
379.5
|
|
|
705.2
|
|
|
738.6
|
|
||||
Basic Net Income Per Common Share
|
$
|
1.76
|
|
|
$
|
1.69
|
|
|
$
|
3.25
|
|
|
$
|
3.28
|
|
Diluted Net Income Per Common Share
|
|
|
|
|
|
|
|
||||||||
Average Number of Common Shares Outstanding
|
216,139,033
|
|
|
224,207,590
|
|
|
217,182,123
|
|
|
224,940,308
|
|
||||
Plus: Dilutive Effect of Share-based Compensation
|
1,030,506
|
|
|
1,403,807
|
|
|
1,031,952
|
|
|
1,385,184
|
|
||||
Average Common and Potential Common Shares
|
217,169,539
|
|
|
225,611,397
|
|
|
218,214,075
|
|
|
226,325,492
|
|
||||
Earnings Allocated to Common and Potential Common Shares
|
$
|
379.8
|
|
|
$
|
379.5
|
|
|
$
|
705.2
|
|
|
$
|
738.6
|
|
Diluted Net Income Per Common Share
|
1.75
|
|
|
1.68
|
|
|
3.23
|
|
|
3.26
|
|
|
Three Months Ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(In Millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Noninterest Income
|
|
|
|
|
|
|
|
||||||||
Trust, Investment and Other Servicing Fees
|
|
|
|
|
|
|
|
||||||||
Custody and Fund Administration
|
$
|
407.4
|
|
|
$
|
399.1
|
|
|
$
|
804.9
|
|
|
$
|
795.0
|
|
Investment Management and Advisory
|
478.1
|
|
|
465.0
|
|
|
937.3
|
|
|
930.6
|
|
||||
Securities Lending
|
22.0
|
|
|
30.4
|
|
|
44.8
|
|
|
56.6
|
|
||||
Other
|
48.0
|
|
|
48.4
|
|
|
97.4
|
|
|
98.4
|
|
||||
Total Trust, Investment and Other Servicing Fees
|
$
|
955.5
|
|
|
$
|
942.9
|
|
|
$
|
1,884.4
|
|
|
$
|
1,880.6
|
|
Other Noninterest Income
|
|
|
|
|
|
|
|
||||||||
Foreign Exchange Trading Income
|
$
|
60.5
|
|
|
$
|
78.9
|
|
|
$
|
126.7
|
|
|
$
|
157.4
|
|
Treasury Management Fees
|
11.2
|
|
|
13.5
|
|
|
22.9
|
|
|
27.5
|
|
||||
Securities Commissions and Trading Income
|
23.4
|
|
|
26.1
|
|
|
46.7
|
|
|
53.3
|
|
||||
Other Operating Income
|
38.9
|
|
|
31.4
|
|
|
67.9
|
|
|
66.2
|
|
||||
Investment Security Losses, net
|
(0.3
|
)
|
|
—
|
|
|
(0.5
|
)
|
|
(0.2
|
)
|
||||
Total Other Noninterest Income
|
$
|
133.7
|
|
|
$
|
149.9
|
|
|
$
|
263.7
|
|
|
$
|
304.2
|
|
Total Noninterest Income
|
$
|
1,089.2
|
|
|
$
|
1,092.8
|
|
|
$
|
2,148.1
|
|
|
$
|
2,184.8
|
|
(In Millions)
|
June 30, 2019
|
|
December 31, 2018
|
||||
Trust Fees Receivable, net
|
$
|
831.0
|
|
|
$
|
742.5
|
|
Other
|
91.9
|
|
|
90.1
|
|
||
Total Client Receivables
|
$
|
922.9
|
|
|
$
|
832.6
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(In Millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Interest Income
|
|
|
|
|
|
|
|
||||||||
Loans and Leases
|
$
|
300.6
|
|
|
$
|
271.4
|
|
|
$
|
598.8
|
|
|
$
|
523.4
|
|
Securities — Taxable
|
269.1
|
|
|
219.1
|
|
|
546.5
|
|
|
396.9
|
|
||||
— Non-Taxable
|
1.0
|
|
|
1.9
|
|
|
2.2
|
|
|
3.9
|
|
||||
Interest-Bearing Due from and Deposits with Banks (1)
|
19.2
|
|
|
18.3
|
|
|
37.1
|
|
|
38.2
|
|
||||
Federal Reserve and Other Central Bank Deposits and Other
|
50.3
|
|
|
57.0
|
|
|
118.4
|
|
|
111.2
|
|
||||
Total Interest Income
|
$
|
640.2
|
|
|
$
|
567.7
|
|
|
$
|
1,303.0
|
|
|
$
|
1,073.6
|
|
Interest Expense
|
|
|
|
|
|
|
|
||||||||
Deposits
|
$
|
133.9
|
|
|
$
|
77.3
|
|
|
$
|
281.5
|
|
|
$
|
140.4
|
|
Federal Funds Purchased
|
7.1
|
|
|
13.6
|
|
|
20.5
|
|
|
18.9
|
|
||||
Securities Sold Under Agreements to Repurchase
|
2.1
|
|
|
2.0
|
|
|
3.9
|
|
|
4.7
|
|
||||
Other Borrowings
|
49.1
|
|
|
35.9
|
|
|
99.0
|
|
|
62.4
|
|
||||
Senior Notes
|
18.5
|
|
|
11.7
|
|
|
34.4
|
|
|
23.5
|
|
||||
Long-Term Debt
|
10.0
|
|
|
12.0
|
|
|
20.0
|
|
|
23.0
|
|
||||
Floating Rate Capital Debt
|
2.1
|
|
|
1.9
|
|
|
4.3
|
|
|
3.4
|
|
||||
Total Interest Expense
|
$
|
222.8
|
|
|
$
|
154.4
|
|
|
$
|
463.6
|
|
|
$
|
276.3
|
|
Net Interest Income
|
$
|
417.4
|
|
|
$
|
413.3
|
|
|
$
|
839.4
|
|
|
$
|
797.3
|
|
(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.
|
Net Periodic Pension Expense
U.S. Plan
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(In Millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Service Cost
|
$
|
10.4
|
|
|
$
|
10.3
|
|
|
$
|
20.8
|
|
|
$
|
20.7
|
|
Interest Cost
|
11.8
|
|
|
11.1
|
|
|
23.6
|
|
|
22.2
|
|
||||
Expected Return on Plan Assets
|
(21.7
|
)
|
|
(22.1
|
)
|
|
(43.4
|
)
|
|
(44.1
|
)
|
||||
Amortization
|
|
|
|
|
|
|
|
||||||||
Net Actuarial Loss
|
4.3
|
|
|
7.0
|
|
|
8.6
|
|
|
14.1
|
|
||||
Prior Service Cost
|
(0.1
|
)
|
|
(0.1
|
)
|
|
(0.2
|
)
|
|
(0.2
|
)
|
||||
Net Periodic Pension Expense
|
$
|
4.7
|
|
|
$
|
6.2
|
|
|
$
|
9.4
|
|
|
$
|
12.7
|
|
Net Periodic Pension Expense
Non-U.S. Plans
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(In Millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Service Cost
|
$
|
0.5
|
|
|
$
|
0.4
|
|
|
$
|
1.0
|
|
|
$
|
0.8
|
|
Interest Cost
|
1.0
|
|
|
1.0
|
|
|
2.0
|
|
|
2.0
|
|
||||
Expected Return on Plan Assets
|
(0.9
|
)
|
|
(1.1
|
)
|
|
(1.9
|
)
|
|
(2.2
|
)
|
||||
Settlement Expense
|
—
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
||||
Net Actuarial Loss Amortization
|
0.2
|
|
|
0.3
|
|
|
0.3
|
|
|
0.6
|
|
||||
Net Periodic Pension Expense
|
$
|
0.8
|
|
|
$
|
1.0
|
|
|
$
|
1.4
|
|
|
$
|
1.6
|
|
Net Periodic Pension Expense
Supplemental Plan
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(In Millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Service Cost
|
$
|
1.0
|
|
|
$
|
1.1
|
|
|
$
|
2.0
|
|
|
$
|
2.2
|
|
Interest Cost
|
1.4
|
|
|
1.4
|
|
|
2.9
|
|
|
2.7
|
|
||||
Amortization
|
|
|
|
|
|
|
|
||||||||
Net Actuarial Loss
|
1.4
|
|
|
1.8
|
|
|
2.8
|
|
|
3.6
|
|
||||
Prior Service Cost
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
||||
Net Periodic Pension Expense
|
$
|
3.9
|
|
|
$
|
4.4
|
|
|
$
|
7.8
|
|
|
$
|
8.6
|
|
Net Periodic Postretirement Expense
Postretirement Health Care Plan
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(In Millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Service Cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest Cost
|
0.3
|
|
|
0.4
|
|
|
0.6
|
|
|
0.7
|
|
||||
Amortization
|
|
|
|
|
|
|
|
||||||||
Net Actuarial (Gain)
|
(0.3
|
)
|
|
—
|
|
|
(0.6
|
)
|
|
—
|
|
||||
Prior Service Cost
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net Periodic Postretirement Expense
|
$
|
—
|
|
|
$
|
0.4
|
|
|
$
|
—
|
|
|
$
|
0.7
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(In Millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Restricted Stock Unit Awards
|
$
|
15.3
|
|
|
$
|
18.1
|
|
|
$
|
54.5
|
|
|
$
|
64.8
|
|
Stock Options
|
0.2
|
|
|
0.7
|
|
|
0.7
|
|
|
1.5
|
|
||||
Performance Stock Units
|
3.2
|
|
|
14.4
|
|
|
18.8
|
|
|
23.4
|
|
||||
Total Share-Based Compensation Expense
|
18.7
|
|
|
33.2
|
|
|
74.0
|
|
|
89.7
|
|
||||
Tax Benefits Recognized
|
$
|
4.7
|
|
|
$
|
8.2
|
|
|
$
|
18.4
|
|
|
$
|
22.2
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Notional
Value |
|
Fair Value
|
|
Notional
Value |
|
Fair Value
|
||||||||||||||||
(In Millions)
|
Asset 1
|
|
Liability 2
|
|
Asset 1
|
|
Liability 2
|
||||||||||||||||
Derivatives Designated as Hedging under GAAP
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest Rate Contracts
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fair Value Hedges
|
$
|
4,475.3
|
|
|
$
|
22.4
|
|
|
$
|
24.3
|
|
|
$
|
4,590.4
|
|
|
$
|
29.8
|
|
|
$
|
23.3
|
|
Cash Flow Hedges
|
550.0
|
|
|
0.2
|
|
|
0.3
|
|
|
600.0
|
|
|
0.2
|
|
|
1.2
|
|
||||||
Foreign Exchange Contracts
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash Flow Hedges
|
974.4
|
|
|
13.7
|
|
|
8.9
|
|
|
2,648.2
|
|
|
13.8
|
|
|
57.8
|
|
||||||
Net Investment Hedges
|
2,641.3
|
|
|
48.1
|
|
|
9.1
|
|
|
3,475.1
|
|
|
292.4
|
|
|
14.5
|
|
||||||
Total Derivatives Designated as Hedging under GAAP
|
$
|
8,641.0
|
|
|
$
|
84.4
|
|
|
$
|
42.6
|
|
|
$
|
11,313.7
|
|
|
$
|
336.2
|
|
|
$
|
96.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives Not Designated as Hedging under GAAP
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-Designated Risk Management Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign Exchange Contracts
|
$
|
119.4
|
|
|
$
|
0.5
|
|
|
$
|
0.1
|
|
|
$
|
122.2
|
|
|
$
|
0.5
|
|
|
$
|
0.2
|
|
Other Financial Derivatives 3
|
620.0
|
|
|
—
|
|
|
35.3
|
|
|
483.4
|
|
|
1.3
|
|
|
32.8
|
|
||||||
Total Non-Designated Risk Management Derivatives
|
$
|
739.4
|
|
|
$
|
0.5
|
|
|
$
|
35.4
|
|
|
$
|
605.6
|
|
|
$
|
1.8
|
|
|
$
|
33.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Client-Related and Trading Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign Exchange Contracts
|
$
|
291,041.7
|
|
|
$
|
1,679.1
|
|
|
$
|
1,664.6
|
|
|
$
|
281,864.4
|
|
|
$
|
2,159.4
|
|
|
$
|
2,190.0
|
|
Interest Rate Contracts
|
8,245.5
|
|
|
127.8
|
|
|
72.9
|
|
|
7,711.2
|
|
|
66.1
|
|
|
68.6
|
|
||||||
Total Client-Related and Trading Derivatives
|
$
|
299,287.2
|
|
|
$
|
1,806.9
|
|
|
$
|
1,737.5
|
|
|
$
|
289,575.6
|
|
|
$
|
2,225.5
|
|
|
$
|
2,258.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Derivatives Not Designated as Hedging under GAAP
|
$
|
300,026.6
|
|
|
$
|
1,807.4
|
|
|
$
|
1,772.9
|
|
|
$
|
290,181.2
|
|
|
$
|
2,227.3
|
|
|
$
|
2,291.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Gross Derivatives
|
$
|
308,667.6
|
|
|
$
|
1,891.8
|
|
|
$
|
1,815.5
|
|
|
$
|
301,494.9
|
|
|
$
|
2,563.5
|
|
|
$
|
2,388.4
|
|
Less: Netting 4
|
|
|
1,171.6
|
|
|
1,248.6
|
|
|
|
|
1,357.1
|
|
|
1,796.3
|
|
||||||||
Total Derivative Financial Instruments
|
|
|
|
$
|
720.2
|
|
|
$
|
566.9
|
|
|
|
|
|
$
|
1,206.4
|
|
|
$
|
592.1
|
|
|
Location and Amount of Derivative Gain/(Loss) Recognized in Income
|
||||||||||||||||||||||
(In Millions)
|
Interest Income
|
|
Interest Expense
|
|
Other Operating Income
|
||||||||||||||||||
Three Months Ended June 30,
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||
Total amounts on the consolidated statements of income
|
$
|
640.2
|
|
|
$
|
567.7
|
|
|
$
|
222.8
|
|
|
$
|
154.4
|
|
|
$
|
38.9
|
|
|
$
|
31.4
|
|
Gains/(Losses) on fair value hedges recognized on
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest Rate Contracts
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Recognized on derivatives
|
(48.7
|
)
|
|
10.4
|
|
|
61.7
|
|
|
(15.2
|
)
|
|
—
|
|
|
—
|
|
||||||
Recognized on hedged items
|
48.7
|
|
|
(10.4
|
)
|
|
(61.7
|
)
|
|
15.2
|
|
|
—
|
|
|
—
|
|
||||||
Amounts related to interest settlements on derivatives
|
5.0
|
|
|
6.6
|
|
|
3.7
|
|
|
8.3
|
|
|
—
|
|
|
—
|
|
||||||
Total gain/(loss) recognized on fair value hedges
|
$
|
5.0
|
|
|
$
|
6.6
|
|
|
$
|
3.7
|
|
|
$
|
8.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gains/(Losses) on cash flow hedges recognized on
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign Exchange Contracts
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net gain/(loss) reclassified from AOCI to net income
|
$
|
3.7
|
|
|
$
|
16.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.3
|
|
|
$
|
1.1
|
|
Interest Rate Contracts
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net gain/(loss) reclassified from AOCI to net income
|
(0.2
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total gain/(loss) reclassified from AOCI to net income on cash flow hedges
|
$
|
3.5
|
|
|
$
|
15.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.3
|
|
|
$
|
1.1
|
|
|
Location and Amount of Derivative Gain/(Loss) Recognized in Income
|
||||||||||||||||||||||
(In Millions)
|
Interest Income
|
|
Interest Expense
|
|
Other Operating Income
|
||||||||||||||||||
Six Months Ended June 30,
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||
Total amounts on the consolidated statements of income
|
$
|
1,303.0
|
|
|
$
|
1,073.6
|
|
|
$
|
463.6
|
|
|
$
|
276.3
|
|
|
$
|
67.9
|
|
|
$
|
66.2
|
|
Gains/(Losses) on fair value hedges recognized on
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest Rate Contracts
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Recognized on derivatives
|
(84.1
|
)
|
|
64.7
|
|
|
90.2
|
|
|
(37.1
|
)
|
|
—
|
|
|
—
|
|
||||||
Recognized on hedged items
|
84.1
|
|
|
(64.7
|
)
|
|
(90.2
|
)
|
|
37.1
|
|
|
—
|
|
|
—
|
|
||||||
Amounts related to interest settlements on derivatives
|
10.5
|
|
|
2.9
|
|
|
2.1
|
|
|
9.7
|
|
|
—
|
|
|
—
|
|
||||||
Total gain/(loss) recognized on fair value hedges
|
$
|
10.5
|
|
|
$
|
2.9
|
|
|
$
|
2.1
|
|
|
$
|
9.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gains/(Losses) on cash flow hedges recognized on
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign Exchange Contracts
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net gain/(loss) reclassified from AOCI to net income
|
$
|
18.1
|
|
|
$
|
30.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(0.3
|
)
|
|
$
|
3.5
|
|
Interest Rate Contracts
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net gain/(loss) reclassified from AOCI to net income
|
(0.4
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total gain/(loss) reclassified from AOCI to net income on cash flow hedges
|
$
|
17.7
|
|
|
$
|
30.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(0.3
|
)
|
|
$
|
3.5
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||
(In Millions)
|
Carrying Value of the Hedged Items
|
|
Cumulative Hedge Accounting Basis Adjustment (1)
|
|
Carrying Value of the Hedged Items
|
|
Cumulative Hedge Accounting Basis Adjustment (2)
|
||||||||
Available for Sale Debt Securities (3)
|
$
|
3,255.8
|
|
|
$
|
15.8
|
|
|
$
|
3,831.6
|
|
|
$
|
99.4
|
|
Senior Notes and Long-Term Subordinated Debt
|
1,748.4
|
|
|
119.7
|
|
|
1,248.8
|
|
|
29.3
|
|
||||
Total
|
$
|
5,004.2
|
|
|
$
|
135.5
|
|
|
$
|
5,080.4
|
|
|
$
|
128.7
|
|
(In Millions)
|
Location of
Derivative Gain / (Loss) Recognized in Income |
Amount of Derivative Gain / (Loss)
Recognized in Income |
||||||||||||||
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||
Non-designated risk management derivatives
|
|
|
|
|
|
|
|
|
||||||||
Foreign Exchange Contracts
|
Other Operating Income
|
$
|
(0.8
|
)
|
|
$
|
(5.4
|
)
|
|
$
|
0.1
|
|
|
$
|
(1.3
|
)
|
Other Financial Derivatives (1)
|
Other Operating Income
|
(4.1
|
)
|
|
(7.8
|
)
|
|
(11.4
|
)
|
|
(11.8
|
)
|
||||
Gains/(Losses) from non-designated risk management derivatives
|
|
$
|
(4.9
|
)
|
|
$
|
(13.2
|
)
|
|
$
|
(11.3
|
)
|
|
$
|
(13.1
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Client-related and trading derivatives
|
|
|
|
|
|
|
|
|
||||||||
Foreign Exchange Contracts
|
Foreign Exchange Trading Income
|
$
|
60.5
|
|
|
$
|
78.9
|
|
|
$
|
126.7
|
|
|
$
|
157.4
|
|
Interest Rate Contracts
|
Security Commissions and Trading Income
|
2.8
|
|
|
2.9
|
|
|
4.3
|
|
|
4.6
|
|
||||
Gains/(Losses) from client-related and trading derivatives
|
|
$
|
63.3
|
|
|
$
|
81.8
|
|
|
$
|
131.0
|
|
|
$
|
162.0
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total gains/(losses) from derivatives not designated as hedging under GAAP
|
|
$
|
58.4
|
|
|
$
|
68.6
|
|
|
$
|
119.7
|
|
|
$
|
148.9
|
|
(1)
|
This line includes swaps related to sales of certain Visa Class B common shares and total return swap contracts.
|
June 30, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
(In Millions)
|
Gross Recognized Assets
|
|
Gross Amounts Offset in the Balance Sheet (2)
|
|
Net Amounts Presented in the Balance Sheet
|
|
Gross Amounts Not Offset in the Balance Sheet
|
|
Net
Amount (4)
|
||||||||||
Derivative Assets (1)
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts Over the Counter (OTC)
|
$
|
1,361.8
|
|
|
$
|
1,168.6
|
|
|
$
|
193.2
|
|
|
$
|
15.1
|
|
|
$
|
178.1
|
|
Interest Rate Swaps OTC
|
150.2
|
|
|
3.0
|
|
|
147.2
|
|
|
—
|
|
|
147.2
|
|
|||||
Interest Rate Swaps Exchange Cleared
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|||||
Total Derivatives Subject to a Master Netting Arrangement
|
1,512.1
|
|
|
1,171.6
|
|
|
340.5
|
|
|
15.1
|
|
|
325.4
|
|
|||||
Total Derivatives Not Subject to a Master Netting Arrangement
|
379.7
|
|
|
—
|
|
|
379.7
|
|
|
0.5
|
|
|
379.2
|
|
|||||
Total Derivatives
|
1,891.8
|
|
|
1,171.6
|
|
|
720.2
|
|
|
15.6
|
|
|
704.6
|
|
|||||
Securities Purchased under Agreements to Resell (3)
|
$
|
654.5
|
|
|
$
|
—
|
|
|
$
|
654.5
|
|
|
$
|
654.5
|
|
|
$
|
—
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
(In Millions)
|
Gross Recognized Assets
|
|
Gross Amounts Offset in the Balance Sheet (2)
|
|
Net Amounts Presented in the Balance Sheet
|
|
Gross Amounts Not Offset in the Balance Sheet
|
|
Net
Amount (4)
|
||||||||||
Derivative Assets (1)
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts OTC
|
$
|
1,902.3
|
|
|
$
|
1,308.8
|
|
|
$
|
593.5
|
|
|
$
|
12.7
|
|
|
$
|
580.8
|
|
Interest Rate Swaps OTC
|
71.6
|
|
|
22.6
|
|
|
49.0
|
|
|
—
|
|
|
49.0
|
|
|||||
Interest Rate Swaps Exchange Cleared
|
24.5
|
|
|
24.4
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|||||
Other Financial Derivatives
|
1.3
|
|
|
1.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total Derivatives Subject to a Master Netting Arrangement
|
1,999.7
|
|
|
1,357.1
|
|
|
642.6
|
|
|
12.7
|
|
|
629.9
|
|
|||||
Total Derivatives Not Subject to a Master Netting Arrangement
|
563.8
|
|
|
—
|
|
|
563.8
|
|
|
2.7
|
|
|
561.1
|
|
|||||
Total Derivatives
|
2,563.5
|
|
|
1,357.1
|
|
|
1,206.4
|
|
|
15.4
|
|
|
1,191.0
|
|
|||||
Securities Purchased under Agreements to Resell (3)
|
$
|
1,031.2
|
|
|
$
|
—
|
|
|
$
|
1,031.2
|
|
|
$
|
1,031.2
|
|
|
$
|
—
|
|
(1)
|
Derivative assets are reported in Other Assets in the consolidated balance sheets. Other Assets (excluding derivative assets) totaled $6.6 billion and $4.6 billion as of June 30, 2019 and December 31, 2018, respectively.
|
(2)
|
Including cash collateral received from counterparties.
|
(3)
|
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 $6.0 million and $134.0 million as of June 30, 2019 and December 31, 2018, respectively.
|
(4)
|
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 June 30, 2019 and December 31, 2018.
|
June 30, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
(In Millions)
|
Gross
Recognized
Liabilities
|
|
Gross Amounts Offset in the Balance Sheet (2)
|
|
Net
Amounts
Presented in the Balance Sheet
|
|
Gross
Amounts
Not Offset in the Balance Sheet
|
|
Net
Amount (3)
|
||||||||||
Derivative Liabilities (1)
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts OTC
|
$
|
1,283.5
|
|
|
$
|
1,191.1
|
|
|
$
|
92.4
|
|
|
$
|
0.1
|
|
|
$
|
92.3
|
|
Interest Rate Swaps OTC
|
97.6
|
|
|
56.7
|
|
|
40.9
|
|
|
—
|
|
|
40.9
|
|
|||||
Interest Rate Swaps Exchange Cleared
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other Financial Derivatives
|
35.3
|
|
|
0.8
|
|
|
34.5
|
|
|
—
|
|
|
34.5
|
|
|||||
Total Derivatives Subject to a Master Netting Arrangement
|
1,416.4
|
|
|
1,248.6
|
|
|
167.8
|
|
|
0.1
|
|
|
167.7
|
|
|||||
Total Derivatives Not Subject to a Master Netting Arrangement
|
399.1
|
|
|
—
|
|
|
399.1
|
|
|
—
|
|
|
399.1
|
|
|||||
Total Derivatives
|
1,815.5
|
|
|
1,248.6
|
|
|
566.9
|
|
|
0.1
|
|
|
566.8
|
|
|||||
Securities Sold under Agreements to Repurchase
|
$
|
125.2
|
|
|
$
|
—
|
|
|
$
|
125.2
|
|
|
$
|
125.2
|
|
|
$
|
—
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
(In Millions)
|
Gross
Recognized
Liabilities
|
|
Gross Amounts Offset in the Balance Sheet (2)
|
|
Net
Amounts
Presented in the Balance Sheet
|
|
Gross
Amounts
Not Offset in the Balance Sheet
|
|
Net
Amount (3)
|
||||||||||
Derivative Liabilities (1)
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts OTC
|
$
|
1,821.0
|
|
|
$
|
1,751.7
|
|
|
$
|
69.3
|
|
|
$
|
—
|
|
|
$
|
69.3
|
|
Interest Rate Swaps OTC
|
68.8
|
|
|
19.0
|
|
|
49.8
|
|
|
—
|
|
|
49.8
|
|
|||||
Interest Rate Swaps Exchange Cleared
|
24.4
|
|
|
24.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other Financial Derivatives
|
32.8
|
|
|
1.2
|
|
|
31.6
|
|
|
—
|
|
|
31.6
|
|
|||||
Total Derivatives Subject to a Master Netting Arrangement
|
1,947.0
|
|
|
1,796.3
|
|
|
150.7
|
|
|
—
|
|
|
150.7
|
|
|||||
Total Derivatives Not Subject to a Master Netting Arrangement
|
441.4
|
|
|
—
|
|
|
441.4
|
|
|
—
|
|
|
441.4
|
|
|||||
Total Derivatives
|
2,388.4
|
|
|
1,796.3
|
|
|
592.1
|
|
|
—
|
|
|
592.1
|
|
|||||
Securities Sold under Agreements to Repurchase
|
$
|
168.3
|
|
|
$
|
—
|
|
|
$
|
168.3
|
|
|
$
|
168.3
|
|
|
$
|
—
|
|
(1)
|
Derivative liabilities are reported in Other Liabilities in the consolidated balance sheets. Other Liabilities (excluding derivative liabilities) totaled $2.7 billion and $2.5 billion as of June 30, 2019 and December 31, 2018, respectively.
|
(2)
|
Including cash collateral deposited with counterparties.
|
(3)
|
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 June 30, 2019 and December 31, 2018.
|
Period
|
Total Number
of Shares Purchased |
|
Average
Price Paid per Share |
|
Total Number of
Shares Purchased as Part of a Publicly Announced Plan (1) |
|
Maximum Number of
Shares that May Yet Be Purchased Under the Plan |
|||||
April 1 - 30, 2019
|
1,023,613
|
|
|
$
|
94.63
|
|
|
1,023,613
|
|
|
17,037,117
|
|
May 1 - 31, 2019
|
1,326,729
|
|
|
93.36
|
|
|
1,326,729
|
|
|
15,710,388
|
|
|
June 1 - 30, 2019
|
553,004
|
|
|
87.29
|
|
|
553,004
|
|
|
15,157,384
|
|
|
Total (Second Quarter)
|
2,903,346
|
|
|
$
|
92.65
|
|
|
2,903,346
|
|
|
15,157,384
|
|
(1)
|
Repurchases were made pursuant to the repurchase program announced by the Corporation on July 17, 2018, under which the Corporation’s Board of Directors authorized the Corporation to repurchase up to 25.0 million shares of the Corporation’s common stock. The repurchase program has no expiration date.
|
|
|
NORTHERN TRUST CORPORATION
|
|
|
|
(Registrant)
|
|
|
|
|
|
Date:
|
July 30, 2019
|
By:
|
/s/ S. Biff Bowman
|
|
|
|
S. Biff Bowman
Executive Vice President and
Chief Financial Officer
(Duly Authorized Officer and Principal Financial Officer)
|
|
|
|
|
Date:
|
July 30, 2019
|
By:
|
/s/ Lauren Allnutt
|
|
|
|
Lauren Allnutt
Senior Vice President and Controller
(Principal Accounting Officer)
|
2.1
|
Affiliate. Affiliate means any corporation which is a member of the same controlled group of corporations as the Company under Section 414(b) of the Code, or an unincorporated trade or business which is under common control with the Company under Section 414(c) of the Code.
|
2.2
|
Annual Base Salary. Annual Base Salary means an Eligible Employee’s annual base salary, as determined from the personnel records of the Company or a Participating Subsidiary on the Effective Date. Annual Base Salary excludes commissions, bonuses, reimbursements, and all other forms of compensation.
|
2.3
|
Beneficiary(ies). Beneficiary(ies) means the surviving natural person(s), estate, or trust designated by the Participant to receive the Death Benefit following the Participant’s death, provided that such death occurred prior to the Participant’s Termination of Employment. The Participant may designate his or her Beneficiary(ies) at the time and in the manner prescribed by the Plan administrator. If no Beneficiary is designated, or if a designated Beneficiary does not survive the Participant, payment will be made to the remaining Beneficiaries in equal shares or, if no Beneficiary survives the Participant, payment will be made to the Participant’s estate. Any designation of a Participant’s spouse as Beneficiary under the Plan shall become null and void on the date a judicial order or decree is entered dissolving the marriage of the Participant and his or her spouse.
|
2.4
|
Claimant. Claimant means a Participant or Beneficiary who files a claim under Article V of this Plan.
|
2.5
|
Code. Code means the Internal Revenue Code of 1986, as amended from time to time.
|
2.6
|
Committee. Committee means the Employee Benefit Administrative Committee of the Company, as constituted from time to time, which has the responsibility for administering
|
2.7
|
Company. Company means The Northern Trust Company, an Illinois state bank, and its successors and assigns.
|
2.8
|
Death Benefit. Death Benefit means the payment by the Company, in the Company’s sole discretion, to a deceased Participant's designated Beneficiary(ies) of a one-time lump sum amount equal to the Participant’s Annual Base Salary, up to a maximum amount of Five Hundred Thousand Dollars ($500,000), if the Participant dies prior to Termination of Employment. The Death Benefit shall be paid in accordance with Article IV, reduced by all amounts required to be withheld by the Company (or Participating Subsidiary, as applicable), pursuant to all federal, state and local tax and other applicable laws.
|
2.9
|
Effective Date. Effective Date means May 17, 2019.
|
2.10
|
Eligible Employee. Eligible Employee means an Employee who, as of May 14, 2019, is a United States citizen, a Senior Vice President or above, residing and working in the U.S. and who has been identified by the Company, in the Company’s sole discretion, as eligible to participate in the Plan and notified of his or her eligibility.
|
2.11
|
Employee. Employee means a full-time or part-time common-law employee of the Company or a Participating Subsidiary.
|
2.12
|
ERISA. ERISA means the Employee Retirement Income Security Act of 1974, as amended from time to time.
|
2.13
|
Participant. Participant means an Eligible Employee who (i) on or before May 14, 2019, consented in writing to being insured under a Company-owned life insurance policy or policies (of which the Company is the beneficiary) on such form and in accordance with such procedures as prescribed by the Company, or (ii) was on a Company-approved medical, parental or other leave of absence on May 14, 2019, and is identified by the Company, in the Company’s sole discretion, as eligible to participate in the Plan and notified in writing of his or her eligibility no later than July 23, 2019.
|
2.14
|
Participating Subsidiary. Participating Subsidiary means a directly or indirectly, majority-owned U.S. subsidiary of the Company.
|
2.15
|
Plan. Plan means The Northern Trust Company Death Benefit Plan, as amended from time to time.
|
2.16
|
Termination of Employment. Termination of Employment means the separation from employment with the Company, all of its Participating Subsidiaries, and all other
|
3.1
|
Eligibility and Participation. In order for an Eligible Employee to become a Participant, he or she must execute any and all consent forms, applications, and other documents required by the Company for participation.
|
3.2
|
Duration. A Participant remains a Participant under this Plan until the earliest of: (a) his or her Termination of Employment; (b) his or her death; (c) the termination of the Plan pursuant to Article VI; or (d) the amendment of the Plan in a manner ending his or her participation. A Participant whose participation in the Plan ceases due to a Termination of Employment will no longer be eligible to participate in the Plan at any time, even if he or she is later reemployed by the Company, a Participating Subsidiary, or any other Affiliate.
|
4.1
|
Death Benefit. If a Participant dies prior to Termination of Employment, then in the Company’s sole discretion, the Participant’s Beneficiary(ies) shall receive a Death Benefit as defined in Section 2.8.
|
4.2
|
Payment. Payment of the Death Benefit, if any, will be made in a single lump sum no later than the last day of the calendar year following the calendar year in which the Participant dies, but only if (i) the Company has been provided with a certified death certificate issued by the jurisdiction in which the Participant's death occurred or as otherwise approved by such jurisdiction, in each case in a form acceptable to the Company, and (ii) such death certificate or other state-approved documentation shows that the Participant died prior to his or her Termination of Employment.
|
4.3
|
Company Discretion. Payment of the Death Benefit shall be entirely in the discretion of the Company, and the Company may at any time prior to actual payment to a Beneficiary decide not to make such payment, notwithstanding any prior statements to the contrary.
|
5.1
|
Operation and Administration of the Plan by the Committee. The Committee shall have the complete authority to control and manage the operation and administration of the Plan. The Committee has full discretionary authority to:
|
a.
|
construe and interpret the provisions of the Plan;
|
b.
|
adopt any rules, procedures and forms necessary for the operation and administration of the Plan;
|
c.
|
determine all questions relating to the eligibility, benefits and other rights of Employees under the Plan;
|
d.
|
keep all records necessary for the operation and administration of the Plan;
|
e.
|
designate or employ agents (who may also be Employees of the Company or an Affiliate) and delegate to such agents the exercise of one or more specific powers of the Committee;
|
f.
|
delegate any or all of its authority under the Plan to any individual, organization or committee either within the Company or an Affiliate or an unrelated third party; and
|
g.
|
retain any legal, accounting or other expert advisers (who may also be advisers to the Company or an Affiliate) in connection with the operation and administration of the Plan.
|
5.2
|
Reliance on Documents, Instruments, etc. The Committee may rely on any certificate, statement or other representation made on behalf of the Company, a Participating Subsidiary, or any other Affiliate or any Employee which it in good faith believes to be genuine, and on any certificate, statement, report or other representation made to it by any agent or any attorney, accountant or other expert retained by it or by the Company, a Participating Subsidiary, or any other Affiliate in connection with the operation and administration of the Plan.
|
5.3
|
Administrative Expenses. All expenses of operating and administering the Plan, including, but not limited to, fees of any agents and experts retained by the Committee under Sections 5.1 and 5.2, will be paid by the Company.
|
5.4
|
Bond, Compensation. No bond or other security will be required of the Committee or any Committee member except as provided by law. No compensation will be paid to any person for performing his or her duties as Plan administrator.
|
5.5.
|
Claims. Any person (a “claimant”) (or his or her authorized representative) may make a claim for benefits under the Plan by filing a written request for benefits with the Committee no later than one hundred and eighty (180) days after the death of the applicable Participant. If the claim is wholly or partially denied, the Committee will cause the claimant to receive written or electronic notice of the adverse benefit determination within ninety (90) days after receipt of the claim. Notice of an adverse benefit determination shall be written in a manner calculated to be understood by the claimant and shall contain (1) the specific reason or reasons for the adverse benefit
|
5.6
|
Appeals. Within sixty (60) days after the claimant receives the written or electronic notice of an adverse benefit determination, or the date the claim is deemed denied pursuant to Section 5.5, the claimant (or his or her authorized representative) may file a written request with the Committee that it conduct a full and fair review of the adverse benefit determination. In connection with the claimant’s appeal of the adverse benefit determination, the claimant may review pertinent documents and may submit issues and comments in writing. The Committee shall render a decision on the appeal promptly, but not later than sixty (60) days after the receipt of the claimant’s request for review, unless special circumstances require an extension of time for processing, in which case the sixty (60) day period may be extended to one hundred and twenty (120) days. The Committee shall notify the claimant in writing or electronically of any such extension, the special circumstances requiring the extension, and the date by which the Committee expects to render the determination on review. The Committee shall notify the claimant of its decision in writing or electronically. In the case of an adverse determination, such notice shall (1) include specific reasons for the adverse determination, (2) be written in a manner calculated to be understood by the claimant, (3) contain specific references to the pertinent Plan provisions upon which the benefit determination is based, (4) contain a statement that the claimant is entitled to receive upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant’s claim for benefits, and (5) contain a statement of the claimant’s right to bring an action under Section 502(a) of ERISA.
|
5.7
|
Indemnity for Liability.
|
5.8
|
Terms Include Authorized Delegates. Where appropriate, the term “Company,” “Participating Subsidiary,” “Affiliate,” or “Committee,” as used in this Plan, shall also include any applicable subcommittee or any duly authorized delegate of the Company, a Participating Subsidiary, an Affiliate, or the Committee, as the case may be. Such duly authorized delegate may be an individual or an organization within the Company, a Participating Subsidiary, an Affiliate, or the Committee, or may be an unrelated third party individual or organization.
|
6.1
|
Amendment and Termination. The Company may at any time and without prior notice amend or terminate the Plan.
|
a.
|
Any termination shall be made by action of the Compensation and Benefits Committee of the Board of Directors of the Company (the “Board”) (or by action of the Board if the Compensation and Benefits Committee is unavailable or unable to act for any reason) and shall be effective as of the date set forth in such resolution.
|
b.
|
Any amendment shall be made in accordance with the following:
|
i.
|
Material amendments to the Plan (including any extraordinary amendment related to an acquisition or divestiture by the Company or an Affiliate) shall be made by action of the Compensation and Benefits Committee of the Board (or by action of the Board, if the Compensation and Benefits Committee is unavailable or unable to act for any reason); and
|
ii.
|
(A) non-material or administrative amendments to the Plan (including any amendment pursuant to guidelines established by the Compensation and Benefits Committee of the Board related to an acquisition or divestiture by the Company or an Affiliate) or (B) any amendment to the Plan deemed required, authorized or desirable under applicable statutes, regulations or rulings, shall be made by action of either the Chief Executive Officer of the Company or the Chief Human Resources Officer of the Company (or either of their duly authorized designees).
|
7.1
|
General Assets. Benefits payable under the terms of the Plan will be paid from the general assets of the Company.
|
7.2
|
Participant's Right to Life Insurance Policy Values or Proceeds or Other Assets. The life insurance policy or policies insuring the life of the Participant, the purchase of which such Participant consented to as a condition precedent to participation in this Plan, will be owned by and payable to the Company. No Participant or Beneficiary shall have any right, title or interest whatever to such life insurance policy, the death benefit payable under the terms of such policy, or in any other assets of the Company.
|
8.1
|
Assignment. Benefits payable under the Plan may not be assigned, alienated, sold, transferred or encumbered in any manner by or through a Participant or Beneficiary, and any such purported assignment, alienation, sale, transfer or encumbrance shall be null, void and of no effect.
|
8.2
|
No Legal or Equitable Rights or Interest. No Participant, Beneficiary or other person shall have any legal or equitable rights or interest in the Plan that are not expressly granted in the Plan. Participation in the Plan does not give any person any right to be retained in the service of the Company, a Participating Subsidiary, or any other Affiliate. The right and power of the Company, a Participating Subsidiary, or any other Affiliate to dismiss or discharge an Employee is expressly reserved. The Company, a Participating Subsidiary, and any other Affiliates make no representations or warranties as to the tax consequences to a Participant or a Participant’s Beneficiaries resulting from the Participant’s participation in the Plan.
|
8.3
|
No Employment Contract. Nothing contained herein shall be construed to constitute a contract of employment between an Employee and the Company, a Participating Subsidiary, or any other Affiliate.
|
8.4
|
Notice. Any election, notice, direction or other such action required or permitted to be made in writing under the Plan may also be made electronically, telephonically or otherwise, to the extent then permitted by applicable law and any administrative rules prescribed by the Committee.
|
8.5
|
Gender and Number. Unless the context clearly indicates otherwise, words in any gender will include any other gender, words in the singular will include the plural and words in the plural will include the singular.
|
8.6
|
Death Benefits Not Compensation. The Death Benefits provided under the Plan shall not constitute employment compensation or salary for purposes of determining eligibility, entitlement to benefits or the amount of benefits under any other employee benefit plan of the Company, a Participating Subsidiary, or any other Affiliate.
|
8.7
|
Severability. Any provision in the Plan that may be unenforceable will be deemed severed from the remainder hereof, with such remaining provisions being given full force and effect.
|
8.8
|
Headings. The headings of Sections are included solely for convenience of reference, and if there is any conflict between such headings and the text of the Plan, the text shall control.
|
8.9
|
Lost Beneficiaries. Any Beneficiary who is entitled to a benefit under the Plan has the duty to keep the Committee informed of his or her current mailing address. Neither the Company, nor a Participating Subsidiary, nor any other Affiliate nor the Committee shall be obligated to search for the whereabouts of any Beneficiary. If a Death Benefit payment is returned to the Plan or not presented for payment after a reasonable amount of time, the Committee shall presume that the payee is missing. The Committee, after making such efforts as in its discretion it deems reasonable and appropriate to locate the payee, may stop payment on any uncashed checks until contact with the payee is restored.
|
8.10.
|
Incompetency or Payment to a Minor. Every person receiving or claiming benefits under the Plan shall be presumed to be mentally competent and of age until the Committee receives a written notice, in a form and manner acceptable to it, that such person is incompetent or a minor, and that a guardian, conservator, or other person legally vested with the care of his or her estate has been appointed. In the event that the Committee finds that any person to whom a benefit is payable under the Plan is unable to properly care for their affairs, or is a minor, then any payment due (unless a prior claim therefor shall have been made by a duly appointed legal representative) may be paid to the spouse,
|
8.11.
|
Governing Law. To the extent not preempted by ERISA or any other federal law, the Plan shall be governed by and construed in accordance with the laws of Illinois, excluding conflicts of law provisions.
|
THE NORTHERN TRUST COMPANY
By: /s/ Joyce St. Clair
Name: Joyce St. Clair
Title: Executive Vice President and
Chief Human Resources Officer
|
1.
|
I have reviewed this report on Form 10-Q for the quarterly period ended June 30, 2019, 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/ Michael G. O’Grady
|
Date:
|
July 30, 2019
|
Michael G. O’Grady
|
|
|
Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
1.
|
I have reviewed this report on Form 10-Q for the quarterly period ended June 30, 2019, 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:
|
July 30, 2019
|
S. Biff Bowman
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
/s/ Michael G. O’Grady
|
Michael G. O’Grady
|
Chief Executive Officer
|
(Principal Executive Officer)
|
/s/ S. Biff Bowman
|
S. Biff Bowman
|
Chief Financial Officer
|
(Principal Financial Officer)
|