|
☒
|
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
|
60603
|
|
Chicago,
|
Illinois
|
(Zip Code)
|
(Address of principal executive offices)
|
|
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 1/1,000th interest in a share of Series E Non-Cumulative Perpetual Preferred Stock
|
NTRSO
|
The NASDAQ Stock Market LLC
|
Large accelerated filer
|
x
|
Accelerated filer
|
¨
|
|
|
|
|
Non-accelerated filer
|
¨
|
Smaller reporting company
|
☐
|
|
|
|
|
|
|
Emerging growth company
|
☐
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|
Page
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|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED MARCH 31,
|
|
||||||
CONDENSED INCOME STATEMENTS (In Millions)
|
2020
|
|
2019
|
|
% CHANGE(1)
|
|
||
Noninterest Income
|
$
|
1,179.6
|
|
$
|
1,058.9
|
|
11
|
%
|
Net Interest Income
|
408.1
|
|
422.0
|
|
(3
|
)
|
||
Provision for Credit Losses
|
61.0
|
|
—
|
|
N/M
|
|
||
Noninterest Expense
|
1,065.6
|
|
1,028.7
|
|
4
|
|
||
Income before Income Taxes
|
461.1
|
|
452.2
|
|
2
|
|
||
Provision for Income Taxes
|
100.5
|
|
105.1
|
|
(4
|
)
|
||
Net Income
|
$
|
360.6
|
|
$
|
347.1
|
|
4
|
%
|
PER COMMON SHARE
|
|
|
|
|||||
Net Income — Basic
|
$
|
1.56
|
|
$
|
1.49
|
|
5
|
%
|
— Diluted
|
1.55
|
|
1.48
|
|
5
|
|
||
Cash Dividends Declared Per Common Share
|
0.70
|
|
0.60
|
|
17
|
|
||
Book Value — End of Period (EOP)
|
48.04
|
|
44.72
|
|
7
|
|
||
Market Price — EOP
|
75.46
|
|
90.41
|
|
(17
|
)
|
SELECTED BALANCE SHEET DATA (In Millions)
|
MARCH 31, 2020
|
|
DECEMBER 31, 2019
|
|
% CHANGE(1)
|
|
||
End of Period:
|
|
|
|
|||||
Assets
|
$
|
161,709.2
|
|
$
|
136,828.4
|
|
18
|
%
|
Earning Assets
|
145,322.7
|
|
125,236.6
|
|
16
|
|
||
Deposits
|
131,491.2
|
|
109,120.6
|
|
21
|
|
||
Stockholders’ Equity
|
10,879.7
|
|
11,091.0
|
|
(2
|
)
|
|
THREE MONTHS ENDED MARCH 31,
|
|
||||||
|
2020
|
2019
|
% CHANGE(1)
|
|||||
Average Balances:
|
|
|
|
|||||
Assets
|
$
|
124,170.5
|
|
$
|
119,416.7
|
|
4
|
%
|
Earning Assets
|
110,611.3
|
|
110,672.2
|
|
—
|
|
||
Deposits
|
95,085.8
|
|
91,369.8
|
|
4
|
|
||
Stockholders’ Equity
|
10,787.0
|
|
10,428.8
|
|
3
|
|
CLIENT ASSETS (In Billions)
|
MARCH 31, 2020
|
|
DECEMBER 31, 2019
|
|
% CHANGE(1)
|
|
||
Assets Under Custody/Administration(2)
|
$
|
10,876.6
|
|
$
|
12,050.4
|
|
(10
|
)%
|
Assets Under Custody
|
8,254.7
|
|
9,233.5
|
|
(11
|
)
|
||
Assets Under Management
|
1,119.3
|
|
1,231.3
|
|
(9
|
)
|
(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 MARCH 31,
|
|||
|
2020
|
2019
|
||
Financial Ratios:
|
|
|
||
Return on Average Common Equity
|
13.4
|
%
|
14.0
|
%
|
Return on Average Assets
|
1.17
|
|
1.18
|
|
Dividend Payout Ratio
|
45.2
|
|
40.5
|
|
Net Interest Margin(1)
|
1.51
|
|
1.58
|
|
|
MARCH 31, 2020
|
DECEMBER 31, 2019
|
|
|
||||||||
|
STANDARDIZED
APPROACH |
ADVANCED
APPROACH |
STANDARDIZED
APPROACH |
ADVANCED
APPROACH |
WELL-CAPITALIZED RATIOS
|
MINIMUM CAPITAL RATIOS
|
||||||
Capital Ratios:
|
|
|
|
|
|
|
||||||
Northern Trust Corporation
|
|
|
|
|
|
|
||||||
Common Equity Tier 1 Capital
|
11.7
|
%
|
12.9
|
%
|
12.7
|
%
|
13.2
|
%
|
N/A
|
|
4.5
|
%
|
Tier 1 Capital
|
12.8
|
|
14.1
|
|
14.5
|
|
15.0
|
|
6.0
|
|
6.0
|
|
Total Capital
|
14.5
|
|
15.7
|
|
16.3
|
|
16.8
|
|
10.0
|
|
8.0
|
|
Tier 1 Leverage
|
8.1
|
|
8.1
|
|
8.7
|
|
8.7
|
|
N/A
|
|
4.0
|
|
Supplementary Leverage
|
N/A
|
|
7.2
|
|
N/A
|
|
7.6
|
|
N/A
|
|
3.0
|
|
|
|
|
|
|
|
|
||||||
The Northern Trust Company
|
|
|
|
|
|
|
||||||
Common Equity Tier 1 Capital
|
12.0
|
%
|
13.5
|
%
|
12.3
|
%
|
13.0
|
%
|
6.5
|
%
|
4.5
|
%
|
Tier 1 Capital
|
12.0
|
|
13.5
|
|
12.3
|
|
13.0
|
|
8.0
|
|
6.0
|
|
Total Capital
|
13.6
|
|
14.9
|
|
14.0
|
|
14.6
|
|
10.0
|
|
8.0
|
|
Tier 1 Leverage
|
7.6
|
|
7.6
|
|
7.3
|
|
7.3
|
|
5.0
|
|
4.0
|
|
Supplementary Leverage
|
N/A
|
|
6.8
|
|
N/A
|
|
6.4
|
|
3.0
|
|
3.0
|
|
(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.
|
|
THREE MONTHS ENDED MARCH 31,
|
|
|
|
|||||||
($ In Millions)
|
2020
|
|
2019
|
|
CHANGE
|
||||||
Trust, Investment and Other Servicing Fees
|
$
|
1,003.6
|
|
$
|
928.9
|
|
$
|
74.7
|
|
8
|
%
|
Foreign Exchange Trading Income
|
88.9
|
|
66.2
|
|
22.7
|
|
34
|
|
|||
Treasury Management Fees
|
11.0
|
|
11.7
|
|
(0.7
|
)
|
(6
|
)
|
|||
Security Commissions and Trading Income
|
41.7
|
|
23.3
|
|
18.4
|
|
79
|
|
|||
Other Operating Income
|
34.4
|
|
29.0
|
|
5.4
|
|
18
|
|
|||
Investment Security (Losses) Gains, net
|
—
|
|
(0.2
|
)
|
0.2
|
|
N/M
|
|
|||
Total Noninterest Income
|
$
|
1,179.6
|
|
$
|
1,058.9
|
|
$
|
120.7
|
|
11
|
%
|
|
DAILY AVERAGES
|
PERIOD-END
|
||||||||||
|
THREE MONTHS ENDED MARCH 31,
|
AS OF MARCH 31,
|
||||||||||
|
2020
|
|
2019
|
|
CHANGE
|
|
2020
|
|
2019
|
|
CHANGE
|
|
S&P 500
|
3,059
|
|
2,718
|
|
13
|
%
|
2,585
|
|
2,834
|
|
(9
|
)%
|
MSCI EAFE (U.S. dollars)
|
1,862
|
|
1,833
|
|
2
|
|
1,560
|
|
1,875
|
|
(17
|
)
|
MSCI EAFE (local currency)
|
1,107
|
|
1,074
|
|
3
|
|
938
|
|
1,105
|
|
(15
|
)
|
|
AS OF MARCH 31,
|
|||||
|
2020
|
|
2019
|
|
CHANGE
|
|
Barclays Capital U.S. Aggregate Bond Index
|
2,295
|
|
2,107
|
|
9
|
%
|
Barclays Capital Global Aggregate Bond Index
|
510
|
|
489
|
|
4
|
|
|
MARCH 31, 2020
|
|
DECEMBER 31, 2019
|
|
MARCH 31, 2019
|
|
CHANGE Q1-20/Q4-19
|
|
CHANGE Q1-20/Q1-19
|
|
|||
($ In Billions)
|
|||||||||||||
Corporate & Institutional
|
$
|
10,236.5
|
|
$
|
11,311.6
|
|
$
|
10,238.9
|
|
(10
|
)%
|
—
|
%
|
Wealth Management
|
640.1
|
|
738.8
|
|
688.5
|
|
(13
|
)
|
(7
|
)
|
|||
Total Assets Under Custody / Administration
|
$
|
10,876.6
|
|
$
|
12,050.4
|
|
$
|
10,927.4
|
|
(10
|
)%
|
—
|
%
|
|
MARCH 31, 2020
|
|
DECEMBER 31, 2019
|
|
MARCH 31, 2019
|
|
CHANGE Q1-20/Q4-19
|
|
CHANGE Q1-20/Q1-19
|
|
|||
($ In Billions)
|
|||||||||||||
Corporate & Institutional
|
$
|
7,620.8
|
|
$
|
8,497.8
|
|
$
|
7,529.1
|
|
(10
|
)%
|
1
|
%
|
Wealth Management
|
633.9
|
|
735.7
|
|
670.6
|
|
(14
|
)
|
(5
|
)
|
|||
Total Assets Under Custody
|
$
|
8,254.7
|
|
$
|
9,233.5
|
|
$
|
8,199.7
|
|
(11
|
)%
|
1
|
%
|
|
MARCH 31, 2020
|
DECEMBER 31, 2019
|
MARCH 31, 2019
|
|||||||||||||||
|
C&IS
|
|
WM
|
|
TOTAL
|
|
C&IS
|
|
WM
|
|
TOTAL
|
|
C&IS
|
|
WM
|
|
TOTAL
|
|
Equities
|
40
|
%
|
52
|
%
|
41
|
%
|
46
|
%
|
59
|
%
|
46
|
%
|
45
|
%
|
57
|
%
|
46
|
%
|
Fixed Income Securities
|
39
|
|
20
|
|
38
|
|
37
|
|
18
|
|
35
|
|
38
|
|
19
|
|
36
|
|
Cash and Other Assets
|
19
|
|
28
|
|
19
|
|
15
|
|
23
|
|
17
|
|
15
|
|
24
|
|
16
|
|
Securities Lending Collateral
|
2
|
|
—
|
|
2
|
|
2
|
|
—
|
|
2
|
|
2
|
|
—
|
|
2
|
|
|
MARCH 31, 2020
|
|
DECEMBER 31, 2019
|
|
MARCH 31, 2019
|
|
CHANGE Q1-20/Q4-19
|
|
CHANGE Q1-20/Q1-19
|
|
|||
($ In Billions)
|
|||||||||||||
Corporate & Institutional
|
$
|
842.6
|
|
$
|
917.5
|
|
$
|
867.9
|
|
(8
|
)%
|
(3
|
)%
|
Wealth Management
|
276.7
|
|
313.8
|
|
294.2
|
|
(12
|
)
|
(6
|
)
|
|||
Total Assets Under Management
|
$
|
1,119.3
|
|
$
|
1,231.3
|
|
$
|
1,162.1
|
|
(9
|
)%
|
(4
|
)%
|
($ In Billions)
|
MARCH 31, 2020
|
|
DECEMBER 31, 2019
|
|
MARCH 31, 2019
|
|
|||
Equities
|
$
|
504.5
|
|
$
|
650.8
|
|
$
|
591.8
|
|
Fixed Income Securities
|
189.8
|
|
193.8
|
|
185.1
|
|
|||
Cash and Other Assets
|
257.9
|
|
223.6
|
|
220.1
|
|
|||
Securities Lending Collateral
|
167.1
|
|
163.1
|
|
165.1
|
|
|||
Total Assets Under Management
|
$
|
1,119.3
|
|
$
|
1,231.3
|
|
$
|
1,162.1
|
|
|
MARCH 31, 2020
|
DECEMBER 31, 2019
|
MARCH 31, 2019
|
|||||||||||||||
|
C&IS
|
|
WM
|
|
TOTAL
|
|
C&IS
|
|
WM
|
|
TOTAL
|
|
C&IS
|
|
WM
|
|
TOTAL
|
|
Equities
|
45
|
%
|
46
|
%
|
45
|
%
|
53
|
%
|
53
|
%
|
53
|
%
|
51
|
%
|
50
|
%
|
51
|
%
|
Fixed Income Securities
|
14
|
|
27
|
|
17
|
|
12
|
|
25
|
|
16
|
|
13
|
|
25
|
|
16
|
|
Cash and Other Assets
|
21
|
|
27
|
|
23
|
|
17
|
|
22
|
|
18
|
|
17
|
|
25
|
|
19
|
|
Securities Lending Collateral
|
20
|
|
—
|
|
15
|
|
18
|
|
—
|
|
13
|
|
19
|
|
—
|
|
14
|
|
|
|
THREE MONTHS ENDED
|
||||||||||||||
($ In Billions)
|
MARCH 31, 2020
|
|
DECEMBER 31, 2019
|
|
SEPTEMBER 30, 2019
|
|
JUNE 30, 2019
|
|
MARCH 31, 2019
|
|
||||||
Beginning Balance of AUM
|
$
|
1,231.3
|
|
$
|
1,201.8
|
|
$
|
1,180.2
|
|
$
|
1,162.1
|
|
$
|
1,069.4
|
|
|
Inflows by Product
|
|
|
|
|
|
|||||||||||
|
Equities
|
51.7
|
|
50.7
|
|
41.7
|
|
51.4
|
|
49.8
|
|
|||||
|
Fixed Income Securities
|
13.5
|
|
9.5
|
|
10.3
|
|
13.8
|
|
14.5
|
|
|||||
|
Cash and Other Assets
|
204.7
|
|
135.2
|
|
144.5
|
|
138.7
|
|
133.2
|
|
|||||
|
Securities Lending Collateral
|
79.7
|
|
57.0
|
|
69.2
|
|
60.0
|
|
74.3
|
|
|||||
Total Inflows
|
349.6
|
|
252.4
|
|
265.7
|
|
263.9
|
|
271.8
|
|
||||||
Outflows by Product
|
|
|
|
|
|
|||||||||||
|
Equities
|
(59.9
|
)
|
(52.5
|
)
|
(53.0
|
)
|
(51.2
|
)
|
(48.8
|
)
|
|||||
|
Fixed Income Securities
|
(18.6
|
)
|
(7.8
|
)
|
(13.8
|
)
|
(13.6
|
)
|
(14.5
|
)
|
|||||
|
Cash and Other Assets
|
(168.2
|
)
|
(139.3
|
)
|
(128.7
|
)
|
(145.9
|
)
|
(127.1
|
)
|
|||||
|
Securities Lending Collateral
|
(75.7
|
)
|
(72.2
|
)
|
(54.3
|
)
|
(61.7
|
)
|
(59.1
|
)
|
|||||
Total Outflows
|
(322.4
|
)
|
(271.8
|
)
|
(249.8
|
)
|
(272.4
|
)
|
(249.5
|
)
|
||||||
Net Inflows (Outflows)
|
27.2
|
|
(19.4
|
)
|
15.9
|
|
(8.5
|
)
|
22.3
|
|
||||||
Market Performance, Currency & Other
|
|
|
|
|
|
|||||||||||
|
Market Performance & Other
|
(132.8
|
)
|
43.6
|
|
10.6
|
|
26.0
|
|
70.9
|
|
|||||
|
Currency
|
(6.4
|
)
|
5.3
|
|
(4.9
|
)
|
0.6
|
|
(0.5
|
)
|
|||||
Total Market Performance, Currency & Other
|
(139.2
|
)
|
48.9
|
|
5.7
|
|
26.6
|
|
70.4
|
|
||||||
Ending Balance of AUM
|
$
|
1,119.3
|
|
$
|
1,231.3
|
|
$
|
1,201.8
|
|
$
|
1,180.2
|
|
$
|
1,162.1
|
|
|
THREE MONTHS ENDED MARCH 31,
|
|
|
|
|||||||
($ In Millions)
|
2020
|
|
2019
|
|
CHANGE
|
||||||
Loan Service Fees
|
$
|
11.9
|
|
$
|
12.1
|
|
$
|
(0.2
|
)
|
(1
|
)%
|
Banking Service Fees
|
11.4
|
|
11.2
|
|
0.2
|
|
3
|
|
|||
Other Income
|
11.1
|
|
5.7
|
|
5.4
|
|
89
|
|
|||
Total Other Operating Income
|
$
|
34.4
|
|
$
|
29.0
|
|
$
|
5.4
|
|
18
|
%
|
(INTEREST AND RATE ON A FULLY TAXABLE EQUIVALENT BASIS)
|
FIRST QUARTER
|
|||||||||||||||
2020
|
2019
|
|||||||||||||||
($ 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)
|
$
|
23.0
|
|
$
|
19,826.2
|
|
0.47
|
%
|
$
|
61.3
|
|
$
|
20,163.2
|
|
1.23
|
%
|
Interest-Bearing Due from and Deposits with Banks(2)
|
12.8
|
|
5,838.1
|
|
0.88
|
|
17.9
|
|
6,452.2
|
|
1.13
|
|
||||
Federal Funds Sold and Securities Purchased under Agreements to Resell
|
1.6
|
|
667.6
|
|
0.97
|
|
6.8
|
|
978.1
|
|
2.84
|
|
||||
Securities
|
|
|
|
|
|
|
||||||||||
U.S. Government
|
21.7
|
|
4,639.2
|
|
1.88
|
|
28.7
|
|
5,238.9
|
|
2.22
|
|
||||
Obligations of States and Political Subdivisions
|
10.6
|
|
1,723.4
|
|
2.46
|
|
5.0
|
|
770.5
|
|
2.57
|
|
||||
Government Sponsored Agency
|
123.7
|
|
23,365.9
|
|
2.13
|
|
148.5
|
|
22,439.0
|
|
2.69
|
|
||||
Other(3)
|
92.2
|
|
22,234.7
|
|
1.67
|
|
102.2
|
|
23,440.9
|
|
1.77
|
|
||||
Total Securities
|
248.2
|
|
51,963.2
|
|
1.92
|
|
284.4
|
|
51,889.3
|
|
2.22
|
|
||||
Loans and Leases(4)
|
251.7
|
|
32,316.2
|
|
3.13
|
|
300.2
|
|
31,189.4
|
|
3.90
|
|
||||
Total Earning Assets
|
537.3
|
|
110,611.3
|
|
1.95
|
|
670.6
|
|
110,672.2
|
|
2.46
|
|
||||
Allowance for Credit Losses
|
—
|
|
(109.9
|
)
|
—
|
|
—
|
|
(114.0
|
)
|
—
|
|
||||
Cash and Due from Banks and Other Central Bank Deposits(5)
|
—
|
|
2,723.0
|
|
—
|
|
—
|
|
1,940.7
|
|
—
|
|
||||
Buildings and Equipment
|
—
|
|
501.4
|
|
—
|
|
—
|
|
424.4
|
|
—
|
|
||||
Client Security Settlement Receivables
|
—
|
|
1,531.0
|
|
—
|
|
—
|
|
981.5
|
|
—
|
|
||||
Goodwill
|
—
|
|
692.6
|
|
—
|
|
—
|
|
675.5
|
|
—
|
|
||||
Other Assets
|
—
|
|
8,221.1
|
|
—
|
|
—
|
|
4,836.4
|
|
—
|
|
||||
Total Assets
|
$
|
—
|
|
$
|
124,170.5
|
|
—
|
%
|
$
|
—
|
|
$
|
119,416.7
|
|
—
|
%
|
Average Source of Funds
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
|
|
|
|
|
||||||||||
Savings, Money Market and Other
|
$
|
30.5
|
|
$
|
20,251.2
|
|
0.61
|
%
|
$
|
35.0
|
|
$
|
14,372.8
|
|
0.99
|
%
|
Savings Certificates and Other Time
|
4.6
|
|
959.8
|
|
1.91
|
|
2.8
|
|
761.4
|
|
1.48
|
|
||||
Non-U.S. Offices — Interest-Bearing
|
25.8
|
|
54,543.3
|
|
0.19
|
|
109.8
|
|
58,377.2
|
|
0.76
|
|
||||
Total Interest-Bearing Deposits
|
60.9
|
|
75,754.3
|
|
0.32
|
|
147.6
|
|
73,511.4
|
|
0.81
|
|
||||
Short-Term Borrowings
|
32.2
|
|
9,701.4
|
|
1.34
|
|
65.1
|
|
10,494.0
|
|
2.52
|
|
||||
Senior Notes
|
17.9
|
|
2,615.1
|
|
2.76
|
|
15.9
|
|
2,014.1
|
|
3.19
|
|
||||
Long-Term Debt
|
8.4
|
|
1,168.7
|
|
2.90
|
|
10.0
|
|
1,112.9
|
|
3.64
|
|
||||
Floating Rate Capital Debt
|
1.7
|
|
277.7
|
|
2.41
|
|
2.2
|
|
277.6
|
|
3.27
|
|
||||
Total Interest-Related Funds
|
121.1
|
|
89,517.2
|
|
0.54
|
|
240.8
|
|
87,410.0
|
|
1.12
|
|
||||
Interest Rate Spread
|
—
|
|
—
|
|
1.41
|
|
—
|
|
—
|
|
1.34
|
|
||||
Demand and Other Noninterest-Bearing Deposits
|
—
|
|
19,331.5
|
|
—
|
|
—
|
|
17,858.4
|
|
—
|
|
||||
Other Liabilities
|
—
|
|
4,534.8
|
|
—
|
|
—
|
|
3,719.5
|
|
—
|
|
||||
Stockholders’ Equity
|
—
|
|
10,787.0
|
|
—
|
|
—
|
|
10,428.8
|
|
—
|
|
||||
Total Liabilities and Stockholders’ Equity
|
$
|
—
|
|
$
|
124,170.5
|
|
—
|
%
|
$
|
—
|
|
$
|
119,416.7
|
|
—
|
%
|
Net Interest Income/Margin (FTE Adjusted)
|
$
|
416.2
|
|
$
|
—
|
|
1.51
|
%
|
$
|
429.8
|
|
$
|
—
|
|
1.58
|
%
|
Net Interest Income/Margin (Unadjusted)
|
$
|
408.1
|
|
$
|
—
|
|
1.48
|
%
|
$
|
422.0
|
|
$
|
—
|
|
1.55
|
%
|
|
THREE MONTHS ENDED MARCH 31, 2020/2019
|
||||||||
|
CHANGE DUE TO
|
|
|||||||
(In Millions)
|
AVERAGE BALANCE
|
|
RATE
|
|
NET DECREASE
|
|
|||
Earning Assets (FTE)
|
$
|
0.8
|
|
$
|
(134.1
|
)
|
$
|
(133.3
|
)
|
Interest-Related Funds
|
2.7
|
|
(122.4
|
)
|
(119.7
|
)
|
|||
Decrease in Net Interest Income (FTE)
|
$
|
(1.9
|
)
|
$
|
(11.7
|
)
|
$
|
(13.6
|
)
|
(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 on the consolidated balance sheets.
|
(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 on the consolidated balance sheets.
|
(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-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 24.9% for the three months ended March 31, 2020 and 2019, respectively. Total taxable equivalent interest adjustments amounted to $8.1 million and $7.8 million for the three months ended March 31, 2020 and 2019, respectively. A reconciliation of net interest income and net interest margin on a GAAP basis to net interest income and net interest margin on an FTE basis (each of which is a non-GAAP financial measure) is provided on page 28. Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets.
|
|
THREE MONTHS ENDED MARCH 31,
|
|
|
||||||||
($ In Millions)
|
2020
|
|
2019
|
|
CHANGE
|
||||||
Compensation
|
$
|
499.8
|
|
$
|
482.0
|
|
$
|
17.8
|
|
4
|
%
|
Employee Benefits
|
97.9
|
|
85.7
|
|
12.2
|
|
14
|
|
|||
Outside Services
|
192.8
|
|
188.4
|
|
4.4
|
|
2
|
|
|||
Equipment and Software
|
162.2
|
|
148.3
|
|
13.9
|
|
9
|
|
|||
Occupancy
|
51.1
|
|
51.6
|
|
(0.5
|
)
|
(1
|
)
|
|||
Other Operating Expense
|
61.8
|
|
72.7
|
|
(10.9
|
)
|
(15
|
)
|
|||
Total Noninterest Expense
|
$
|
1,065.6
|
|
$
|
1,028.7
|
|
$
|
36.9
|
|
4
|
%
|
|
THREE MONTHS ENDED MARCH 31,
|
|
|
||||||||
($ In Millions)
|
2020
|
|
2019
|
|
CHANGE
|
||||||
Business Promotion
|
$
|
18.8
|
|
$
|
17.7
|
|
$
|
1.1
|
|
6
|
%
|
Staff Related
|
(3.5
|
)
|
8.6
|
|
(12.1
|
)
|
N/M
|
|
|||
FDIC Insurance Premiums
|
2.5
|
|
2.9
|
|
(0.4
|
)
|
(15
|
)
|
|||
Other Intangibles Amortization
|
4.1
|
|
4.2
|
|
(0.1
|
)
|
(2
|
)
|
|||
Other Expenses
|
39.9
|
|
39.3
|
|
0.6
|
|
1
|
|
|||
Total Other Operating Expense
|
$
|
61.8
|
|
$
|
72.7
|
|
$
|
(10.9
|
)
|
(15
|
)%
|
THREE MONTHS ENDED MARCH 31,
|
CORPORATE &
INSTITUTIONAL SERVICES |
WEALTH MANAGEMENT
|
TREASURY AND OTHER
|
TOTAL CONSOLIDATED
|
||||||||||||||||||||
($ In Millions)
|
2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
||||||||||||||||
Noninterest Income
|
|
|
|
|
|
|
|
|
||||||||||||||||
Trust, Investment and Other Servicing Fees
|
$
|
574.4
|
|
$
|
535.2
|
|
$
|
429.2
|
|
$
|
393.7
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,003.6
|
|
$
|
928.9
|
|
Foreign Exchange Trading Income
|
85.1
|
|
59.7
|
|
3.8
|
|
6.5
|
|
—
|
|
—
|
|
88.9
|
|
66.2
|
|
||||||||
Other Noninterest Income
|
41.8
|
|
43.4
|
|
42.4
|
|
25.5
|
|
2.9
|
|
(5.1
|
)
|
87.1
|
|
63.8
|
|
||||||||
Total Noninterest Income
|
701.3
|
|
638.3
|
|
475.4
|
|
425.7
|
|
2.9
|
|
(5.1
|
)
|
1,179.6
|
|
1,058.9
|
|
||||||||
Net Interest Income (1)
|
211.3
|
|
234.8
|
|
204.9
|
|
195.0
|
|
—
|
|
—
|
|
416.2
|
|
429.8
|
|
||||||||
Revenue (1)
|
912.6
|
|
873.1
|
|
680.3
|
|
620.7
|
|
2.9
|
|
(5.1
|
)
|
1,595.8
|
|
1,488.7
|
|
||||||||
Provision for Credit Losses
|
25.7
|
|
(1.1
|
)
|
35.3
|
|
1.1
|
|
—
|
|
—
|
|
61.0
|
|
—
|
|
||||||||
Noninterest Expense
|
659.3
|
|
648.0
|
|
394.4
|
|
379.9
|
|
11.9
|
|
0.8
|
|
1,065.6
|
|
1,028.7
|
|
||||||||
Income before Income Taxes (1)
|
227.6
|
|
226.2
|
|
250.6
|
|
239.7
|
|
(9.0
|
)
|
(5.9
|
)
|
469.2
|
|
460.0
|
|
||||||||
Provision for Income Taxes (1)
|
49.9
|
|
53.6
|
|
60.9
|
|
60.8
|
|
(2.2
|
)
|
(1.5
|
)
|
108.6
|
|
112.9
|
|
||||||||
Net Income
|
$
|
177.7
|
|
$
|
172.6
|
|
$
|
189.7
|
|
$
|
178.9
|
|
$
|
(6.8
|
)
|
$
|
(4.4
|
)
|
$
|
360.6
|
|
$
|
347.1
|
|
Percentage of Consolidated Net Income
|
49
|
%
|
50
|
%
|
53
|
%
|
51
|
%
|
(2
|
)%
|
(1
|
)%
|
100
|
%
|
100
|
%
|
||||||||
Average Assets
|
$
|
92,715.3
|
|
$
|
90,351.7
|
|
$
|
31,455.2
|
|
$
|
29,065.0
|
|
$
|
—
|
|
$
|
—
|
|
$
|
124,170.5
|
|
$
|
119,416.7
|
|
(1)
|
Non-GAAP financial measures stated on a fully taxable equivalent basis (FTE). Total consolidated includes FTE adjustments of $8.1 million for 2020 and $7.8 million for 2019. A reconciliation of total consolidated revenue, net interest income and net interest margin on a GAAP basis to revenue, net interest income and net interest margin on an FTE basis (each of which is a non-GAAP financial measure) is provided on page 28.
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED MARCH 31,
|
|
|
||||||||
($ In Millions)
|
2020
|
2019
|
CHANGE
|
||||||||
Custody and Fund Administration
|
$
|
394.9
|
|
$
|
375.1
|
|
$
|
19.8
|
|
5
|
%
|
Investment Management
|
120.8
|
|
104.3
|
|
16.5
|
|
16
|
|
|||
Securities Lending
|
23.4
|
|
22.7
|
|
0.7
|
|
3
|
|
|||
Other
|
35.3
|
|
33.1
|
|
2.2
|
|
7
|
|
|||
Total C&IS Trust, Investment and Other Servicing Fees
|
$
|
574.4
|
|
$
|
535.2
|
|
$
|
39.2
|
|
7
|
%
|
|
THREE MONTHS ENDED MARCH 31,
|
|
|
||||||||
($ In Millions)
|
2020
|
2019
|
CHANGE
|
||||||||
Central
|
$
|
159.4
|
|
$
|
150.7
|
|
$
|
8.7
|
|
6
|
%
|
East
|
111.5
|
|
100.9
|
|
10.6
|
|
11
|
|
|||
West
|
87.0
|
|
79.5
|
|
7.5
|
|
9
|
|
|||
Global Family Office
|
71.3
|
|
62.6
|
|
8.7
|
|
14
|
|
|||
Total Wealth Management Trust, Investment and Other Servicing Fees
|
$
|
429.2
|
|
$
|
393.7
|
|
$
|
35.5
|
|
9
|
%
|
($ In Billions)
|
MARCH 31, 2020
|
|
DECEMBER 31, 2019
|
|
CHANGE
|
||||||
Assets
|
|
|
|
|
|||||||
Federal Reserve and Other Central Bank Deposits and Other (1)
|
$
|
44.6
|
|
$
|
33.8
|
|
$
|
10.8
|
|
32
|
%
|
Interest-Bearing Due from and Deposits with Banks (2)
|
8.3
|
|
7.0
|
|
1.3
|
|
18
|
|
|||
Federal Funds Sold and Securities Purchased under Agreements to Resell
|
1.0
|
|
0.7
|
|
0.3
|
|
40
|
|
|||
Total Securities (3)
|
53.6
|
|
52.3
|
|
1.3
|
|
3
|
|
|||
Loans and Leases
|
37.8
|
|
31.4
|
|
6.4
|
|
20
|
|
|||
Total Earning Assets
|
145.3
|
|
125.2
|
|
20.1
|
|
16
|
|
|||
Total Assets
|
161.7
|
|
136.8
|
|
24.9
|
|
18
|
|
|||
Liabilities and Stockholders' Equity
|
|
|
|
|
|||||||
Total Interest-Bearing Deposits
|
97.9
|
|
82.8
|
|
15.1
|
|
18
|
|
|||
Demand and Other Noninterest-Bearing Deposits
|
33.6
|
|
26.3
|
|
7.3
|
|
28
|
|
|||
Short-Term Borrowings
|
10.4
|
|
7.8
|
|
2.6
|
|
33
|
|
|||
Total Stockholders’ Equity
|
10.9
|
|
11.1
|
|
(0.2
|
)
|
(2
|
)
|
(1)
|
Federal Reserve and Other Central Bank Deposits and Other includes collateral deposits with certain securities depositories and clearing houses for the purpose of presenting earning assets; such deposits are presented in Other Assets on the consolidated balance sheets.
|
(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)
|
Securities includes certain community development investments and Federal Home Loan Bank and Federal Reserve stock, which are classified in Other Assets on the consolidated balance sheets.
|
($ In Billions)
|
MARCH 31, 2020
|
|
MARCH 31, 2019
|
|
CHANGE
|
||||||
Assets
|
|
|
|
|
|||||||
Federal Reserve and Other Central Bank Deposits and Other (1)
|
$
|
19.8
|
|
$
|
20.2
|
|
$
|
(0.4
|
)
|
(2
|
)%
|
Interest-Bearing Due from and Deposits with Banks (2)
|
5.8
|
|
6.4
|
|
(0.6
|
)
|
(10
|
)
|
|||
Federal Funds Sold and Securities Purchased under Agreements to Resell
|
0.7
|
|
1.0
|
|
(0.3
|
)
|
(32
|
)
|
|||
Total Securities (3)
|
52.0
|
|
51.9
|
|
0.1
|
|
—
|
|
|||
Loans and Leases
|
32.3
|
|
31.2
|
|
1.1
|
|
4
|
|
|||
Total Earning Assets
|
110.6
|
|
110.7
|
|
(0.1
|
)
|
—
|
|
|||
Total Assets
|
124.2
|
|
119.4
|
|
4.8
|
|
4
|
|
|||
Liabilities and Stockholders' Equity
|
|
|
|
|
|||||||
Total Interest-Bearing Deposits
|
75.8
|
|
73.5
|
|
2.3
|
|
3
|
|
|||
Demand and Other Noninterest-Bearing Deposits
|
19.3
|
|
17.9
|
|
1.4
|
|
8
|
|
|||
Short-Term Borrowings
|
9.7
|
|
10.5
|
|
(0.8
|
)
|
(8
|
)
|
|||
Total Stockholders’ Equity
|
10.8
|
|
10.4
|
|
0.4
|
|
3
|
|
(1)
|
Federal Reserve and Other Central Bank Deposits and Other includes collateral deposits with certain securities depositories and clearing houses for the purpose of presenting earning assets; such deposits are presented in Other Assets on the consolidated balance sheets.
|
(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)
|
Securities includes certain community development investments and Federal Home Loan Bank and Federal Reserve stock, which are classified in Other Assets on the consolidated balance sheets.
|
($ In Millions)
|
MARCH 31, 2020
|
|
DECEMBER 31, 2019
|
|
||
Nonaccrual Loans and Leases
|
|
|
||||
Commercial
|
|
|
||||
Commercial and Institutional
|
$
|
32.9
|
|
$
|
7.6
|
|
Commercial Real Estate
|
2.7
|
|
3.6
|
|
||
Non-U.S.
|
—
|
|
—
|
|
||
Total Commercial
|
35.6
|
|
11.2
|
|
||
Personal
|
|
|
||||
Residential Real Estate
|
$
|
67.3
|
|
$
|
71.4
|
|
Private Client
|
0.5
|
|
0.5
|
|
||
Non-U.S.
|
0.5
|
|
0.5
|
|
||
Total Personal
|
68.3
|
|
72.4
|
|
||
Total Nonaccrual Loans and Leases
|
103.9
|
|
83.6
|
|
||
Other Real Estate Owned
|
1.6
|
|
3.2
|
|
||
Total Nonaccrual Assets
|
$
|
105.5
|
|
$
|
86.8
|
|
90 Day Past Due Loans Still Accruing
|
$
|
7.1
|
|
$
|
7.4
|
|
Nonaccrual Loans and Leases to Total Loans and Leases
|
0.27
|
%
|
0.27
|
%
|
||
Coverage of Loan and Lease Allowance to Nonaccrual Loans and Leases
|
1.4
|
x
|
1.3
|
x
|
|
MARCH 31, 2020
|
DECEMBER 31, 2019
|
||||||||
($ In Millions)
|
ALLOWANCE AMOUNT
|
PERCENT OF LOANS TO TOTAL LOANS
|
ALLOWANCE AMOUNT
|
PERCENT OF LOANS TO TOTAL LOANS
|
||||||
Evaluated on an Individual Level
|
$
|
8.7
|
|
—
|
%
|
$
|
6.9
|
|
—
|
%
|
Evaluated on a Collective Level
|
|
|
|
|
||||||
Commercial
|
|
|
|
|
||||||
Commercial and Institutional
|
76.9
|
|
33
|
|
35.3
|
|
29
|
|
||
Commercial Real Estate
|
35.9
|
|
8
|
|
33.0
|
|
10
|
|
||
Lease Financing, net
|
0.5
|
|
—
|
|
0.1
|
|
—
|
|
||
Non-U.S.
|
11.8
|
|
10
|
|
—
|
|
5
|
|
||
Other
|
0.1
|
|
1
|
|
0.2
|
|
1
|
|
||
Total Commercial
|
125.2
|
|
52
|
|
68.6
|
|
45
|
|
||
Personal
|
|
|
|
|
||||||
Residential Real Estate
|
34.3
|
|
16
|
|
27.0
|
|
19
|
|
||
Private Client
|
18.8
|
|
31
|
|
20.5
|
|
35
|
|
||
Non-U.S.
|
0.6
|
|
1
|
|
—
|
|
1
|
|
||
Other
|
—
|
|
—
|
|
1.4
|
|
—
|
|
||
Total Personal
|
53.7
|
|
48
|
|
48.9
|
|
55
|
|
||
Total Allowance Evaluated on a Collective Level
|
$
|
178.9
|
|
100
|
%
|
$
|
117.5
|
|
100
|
%
|
Total Allowance for Credit Losses
|
$
|
187.6
|
|
100
|
%
|
$
|
124.4
|
|
100
|
%
|
Allowance Assigned to
|
|
|
|
|
||||||
Loans and Leases
|
$
|
147.2
|
|
|
$
|
104.5
|
|
|
||
Undrawn Commitments and Standby Letters of Credit
|
40.4
|
|
|
19.9
|
|
|
||||
Total Allowance for Credit Losses
|
$
|
187.6
|
|
|
$
|
124.4
|
|
|
||
Allowance Assigned to Loans and Leases to Total Loans and Leases
|
0.39
|
%
|
|
0.33
|
%
|
|
Capital Ratios —
Northern Trust Corporation
|
MARCH 31, 2020
|
DECEMBER 31, 2019
|
MARCH 31, 2019
|
|
|||||||||||
STANDARDIZED APPROACH
|
|
ADVANCED APPROACH
|
|
STANDARDIZED APPROACH
|
|
ADVANCED APPROACH
|
|
STANDARDIZED APPROACH
|
|
ADVANCED APPROACH
|
|
WELL-CAPITALIZED RATIOS
|
MINIMUM CAPITAL RATIOS
|
|
|
Common Equity Tier 1 Capital
|
11.7
|
%
|
12.9
|
%
|
12.7
|
%
|
13.2
|
%
|
13.0
|
%
|
13.5
|
%
|
N/A
|
4.5
|
%
|
Tier 1 Capital
|
12.8
|
|
14.1
|
|
14.5
|
|
15.0
|
|
14.3
|
|
14.8
|
|
6.0
|
6.0
|
|
Total Capital
|
14.5
|
|
15.7
|
|
16.3
|
|
16.8
|
|
16.3
|
|
16.6
|
|
10.0
|
8.0
|
|
Tier 1 Leverage
|
8.1
|
|
8.1
|
|
8.7
|
|
8.7
|
|
8.2
|
|
8.2
|
|
N/A
|
4.0
|
|
Supplementary Leverage
|
N/A
|
|
7.2
|
|
N/A
|
|
7.6
|
|
N/A
|
|
7.2
|
|
N/A
|
3.0
|
|
Capital Ratios — The Northern Trust Company
|
MARCH 31, 2020
|
DECEMBER 31, 2019
|
MARCH 31, 2019
|
|
||||||||||||
STANDARDIZED APPROACH
|
|
ADVANCED APPROACH
|
|
STANDARDIZED APPROACH
|
|
ADVANCED APPROACH
|
|
STANDARDIZED APPROACH
|
|
ADVANCED APPROACH
|
|
WELL-CAPITALIZED RATIOS
|
|
MINIMUM CAPITAL RATIOS
|
|
|
Common Equity Tier 1 Capital
|
12.0
|
%
|
13.5
|
%
|
12.3
|
%
|
13.0
|
%
|
13.2
|
%
|
13.9
|
%
|
6.5
|
%
|
4.5
|
%
|
Tier 1 Capital
|
12.0
|
|
13.5
|
|
12.3
|
|
13.0
|
|
13.2
|
|
13.9
|
|
8.0
|
|
6.0
|
|
Total Capital
|
13.6
|
|
14.9
|
|
14.0
|
|
14.6
|
|
14.9
|
|
15.5
|
|
10.0
|
|
8.0
|
|
Tier 1 Leverage
|
7.6
|
|
7.6
|
|
7.3
|
|
7.3
|
|
7.4
|
|
7.4
|
|
5.0
|
|
4.0
|
|
Supplementary Leverage
|
N/A
|
|
6.8
|
|
N/A
|
|
6.4
|
|
N/A
|
|
6.6
|
|
3.0
|
|
3.0
|
|
▪
|
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
|
$
|
103
|
|
200 Basis Points
|
266
|
|
|
Decrease in Interest Rates Below Market Implied Forward Rates
|
|
||
100 Basis Points
|
8
|
|
▪
|
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;
|
▪
|
the present values of most noninterest-related balances (such as receivables, equipment, and payables) are the same as their book values; and
|
▪
|
Monte Carlo simulation is used to generate forward interest rate paths.
|
($ In Millions)
|
INCREASE (DECREASE) ESTIMATED IMPACT ON MARKET VALUE OF EQUITY
|
|
|
Increase in Interest Rates Above Market Implied Forward Rates
|
|
||
100 Basis Points
|
$
|
(285
|
)
|
200 Basis Points
|
(852
|
)
|
|
Decrease in Interest Rates Below Market Implied Forward Rates
|
|
||
100 Basis Points
|
328
|
|
($ In Millions)
|
TOTAL VaR
(FX AND IR DRIVERS) |
FX VaR
(FX DRIVERS ONLY) |
IR VaR
(IR DRIVERS ONLY) |
|||||||||||||||
THREE MONTHS ENDED
|
MARCH 31, 2020
|
|
DECEMBER 31, 2019
|
|
MARCH 31, 2020
|
|
DECEMBER 31, 2019
|
|
MARCH 31, 2020
|
|
DECEMBER 31, 2019
|
|
||||||
High
|
$
|
0.3
|
|
$
|
0.2
|
|
$
|
0.4
|
|
$
|
0.2
|
|
$
|
0.1
|
|
$
|
0.1
|
|
Low
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Average
|
0.1
|
|
0.1
|
|
0.1
|
|
0.1
|
|
0.1
|
|
0.1
|
|
||||||
Quarter-End
|
0.2
|
|
0.1
|
|
0.1
|
|
0.1
|
|
0.1
|
|
0.1
|
|
|
QUARTERS
|
|||||||||||||||
|
2020
|
|
2019
|
|||||||||||||
($ In Millions)
|
FIRST
|
|
FOURTH
|
THIRD
|
SECOND
|
FIRST
|
||||||||||
Net Interest Income
|
|
|
|
|
|
|
||||||||||
Interest Income - GAAP
|
$
|
529.2
|
|
|
$
|
576.1
|
|
$
|
620.8
|
|
$
|
640.2
|
|
$
|
662.8
|
|
Add: FTE Adjustment
|
8.1
|
|
|
9.7
|
|
7.6
|
|
7.7
|
|
7.8
|
|
|||||
Interest Income (FTE) - Non-GAAP
|
$
|
537.3
|
|
|
$
|
585.8
|
|
$
|
628.4
|
|
$
|
647.9
|
|
$
|
670.6
|
|
|
|
|
|
|
|
|
||||||||||
Net Interest Income - GAAP
|
$
|
408.1
|
|
|
$
|
420.8
|
|
$
|
417.7
|
|
$
|
417.4
|
|
$
|
422.0
|
|
Add: FTE Adjustment
|
8.1
|
|
|
9.7
|
|
7.6
|
|
7.7
|
|
7.8
|
|
|||||
Net Interest Income (FTE) - Non-GAAP
|
$
|
416.2
|
|
|
$
|
430.5
|
|
$
|
425.3
|
|
$
|
425.1
|
|
$
|
429.8
|
|
|
|
|
|
|
|
|
||||||||||
Net Interest Margin - GAAP
|
1.48
|
%
|
|
1.56
|
%
|
1.58
|
%
|
1.58
|
%
|
1.55
|
%
|
|||||
Net Interest Margin (FTE) - Non-GAAP
|
1.51
|
%
|
|
1.59
|
%
|
1.61
|
%
|
1.61
|
%
|
1.58
|
%
|
|||||
|
|
|
|
|
|
|
||||||||||
Total Revenue
|
|
|
|
|
|
|
||||||||||
Total Revenue - GAAP
|
$
|
1,587.7
|
|
|
$
|
1,547.7
|
|
$
|
1,537.9
|
|
$
|
1,506.6
|
|
$
|
1,480.9
|
|
Add: FTE Adjustment
|
8.1
|
|
|
9.7
|
|
7.6
|
|
7.7
|
|
7.8
|
|
|||||
Total Revenue (FTE) - Non-GAAP
|
$
|
1,595.8
|
|
|
$
|
1,557.4
|
|
$
|
1,545.5
|
|
$
|
1,514.3
|
|
$
|
1,488.7
|
|
|
|
|
|
|
|
|
•
|
financial market disruptions or economic recession or depression in the United States or other countries across the globe resulting from any of a number of factors, including, for example, the ongoing COVID-19 (coronavirus) pandemic and governmental and societal responses thereto;
|
•
|
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 data 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;
|
•
|
geopolitical risks, risks related to global climate change and the risks of extraordinary events such as natural disasters, pandemics, terrorist events and war, and the responses of the United States and other countries to those events;
|
•
|
the 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;
|
•
|
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, 2019, 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 (UNAUDITED)
|
NORTHERN TRUST CORPORATION
|
(In Millions Except Share Information)
|
MARCH 31, 2020
|
|
DECEMBER 31, 2019
|
|
||
|
(Unaudited)
|
|
||||
ASSETS
|
|
|
||||
Cash and Due from Banks
|
$
|
5,833.2
|
|
$
|
4,459.2
|
|
Federal Reserve and Other Central Bank Deposits
|
44,661.5
|
|
33,886.0
|
|
||
Interest-Bearing Deposits with Banks
|
5,358.9
|
|
4,877.1
|
|
||
Federal Funds Sold and Securities Purchased under Agreements to Resell
|
998.2
|
|
712.8
|
|
||
Debt Securities
|
|
|
||||
Available for Sale (Amortized cost of $39,025.3 and $38,722.2)
|
39,441.7
|
|
38,876.3
|
|
||
Held to Maturity (Fair value of $12,533.0 and $12,249.3)
|
12,635.7
|
|
12,284.5
|
|
||
Trading Account
|
1.2
|
|
0.3
|
|
||
Total Debt Securities
|
52,078.6
|
|
51,161.1
|
|
||
Loans and Leases
|
|
|
||||
Commercial
|
19,736.8
|
|
14,001.3
|
|
||
Personal
|
18,100.9
|
|
17,408.3
|
|
||
Total Loans and Leases (Net of unearned income of $13.9 and $14.1)
|
37,837.7
|
|
31,409.6
|
|
||
Allowance for Credit Losses
|
(157.8
|
)
|
(104.5
|
)
|
||
Buildings and Equipment
|
490.2
|
|
483.3
|
|
||
Client Security Settlement Receivables
|
2,116.9
|
|
845.7
|
|
||
Goodwill
|
689.3
|
|
696.8
|
|
||
Other Assets
|
11,802.5
|
|
8,401.3
|
|
||
Total Assets
|
$
|
161,709.2
|
|
$
|
136,828.4
|
|
LIABILITIES
|
|
|
||||
Deposits
|
|
|
||||
Demand and Other Noninterest-Bearing
|
$
|
20,098.0
|
|
$
|
14,114.7
|
|
Savings, Money Market and Other Interest-Bearing
|
27,241.0
|
|
21,441.5
|
|
||
Savings Certificates and Other Time
|
918.7
|
|
986.7
|
|
||
Non U.S. Offices — Noninterest-Bearing
|
13,454.4
|
|
12,177.4
|
|
||
— Interest-Bearing
|
69,779.1
|
|
60,400.3
|
|
||
Total Deposits
|
131,491.2
|
|
109,120.6
|
|
||
Federal Funds Purchased
|
4,370.6
|
|
552.9
|
|
||
Securities Sold Under Agreements to Repurchase
|
34.1
|
|
489.7
|
|
||
Other Borrowings
|
5,955.9
|
|
6,744.8
|
|
||
Senior Notes
|
2,668.5
|
|
2,573.0
|
|
||
Long-Term Debt
|
1,196.0
|
|
1,148.1
|
|
||
Floating Rate Capital Debt
|
277.7
|
|
277.7
|
|
||
Other Liabilities
|
4,835.5
|
|
4,830.6
|
|
||
Total Liabilities
|
150,829.5
|
|
125,737.4
|
|
||
STOCKHOLDERS' EQUITY
|
|
|
||||
Preferred Stock, No Par Value; Authorized 10,000,000 shares:
|
|
|
||||
Series C, outstanding shares of 0 and 16,000
|
—
|
|
388.5
|
|
||
Series D, outstanding shares of 5,000
|
493.5
|
|
493.5
|
|
||
Series E, outstanding shares of 16,000
|
391.4
|
|
391.4
|
|
||
Common Stock, $1.66 2/3 Par Value; Authorized 560,000,000 shares;
|
|
|
||||
Outstanding shares of 208,052,036 and 209,709,046
|
408.6
|
|
408.6
|
|
||
Additional Paid-In Capital
|
938.3
|
|
1,013.1
|
|
||
Retained Earnings
|
11,828.1
|
|
11,656.7
|
|
||
Accumulated Other Comprehensive Income (Loss)
|
45.0
|
|
(194.7
|
)
|
||
Treasury Stock (37,119,488 and 35,462,478 shares, at cost)
|
(3,225.2
|
)
|
(3,066.1
|
)
|
||
Total Stockholders’ Equity
|
10,879.7
|
|
11,091.0
|
|
||
Total Liabilities and Stockholders’ Equity
|
$
|
161,709.2
|
|
$
|
136,828.4
|
|
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
|
NORTHERN TRUST CORPORATION
|
|
THREE MONTHS ENDED MARCH 31,
|
|||||
(In Millions Except Share Information)
|
2020
|
|
2019
|
|
||
Noninterest Income
|
|
|
||||
Trust, Investment and Other Servicing Fees
|
$
|
1,003.6
|
|
$
|
928.9
|
|
Foreign Exchange Trading Income
|
88.9
|
|
66.2
|
|
||
Treasury Management Fees
|
11.0
|
|
11.7
|
|
||
Security Commissions and Trading Income
|
41.7
|
|
23.3
|
|
||
Other Operating Income
|
34.4
|
|
29.0
|
|
||
Investment Security Gains (Losses), net (Note)
|
—
|
|
(0.2
|
)
|
||
Total Noninterest Income
|
1,179.6
|
|
1,058.9
|
|
||
Net Interest Income
|
|
|
||||
Interest Income
|
529.2
|
|
662.8
|
|
||
Interest Expense
|
121.1
|
|
240.8
|
|
||
Net Interest Income
|
408.1
|
|
422.0
|
|
||
Provision for Credit Losses
|
61.0
|
|
—
|
|
||
Net Interest Income after Provision for Credit Losses
|
347.1
|
|
422.0
|
|
||
Noninterest Expense
|
|
|
||||
Compensation
|
499.8
|
|
482.0
|
|
||
Employee Benefits
|
97.9
|
|
85.7
|
|
||
Outside Services
|
192.8
|
|
188.4
|
|
||
Equipment and Software
|
162.2
|
|
148.3
|
|
||
Occupancy
|
51.1
|
|
51.6
|
|
||
Other Operating Expense
|
61.8
|
|
72.7
|
|
||
Total Noninterest Expense
|
1,065.6
|
|
1,028.7
|
|
||
Income before Income Taxes
|
461.1
|
|
452.2
|
|
||
Provision for Income Taxes
|
100.5
|
|
105.1
|
|
||
Net Income
|
$
|
360.6
|
|
$
|
347.1
|
|
Preferred Stock Dividends
|
30.5
|
|
17.3
|
|
||
Net Income Applicable to Common Stock
|
$
|
330.1
|
|
$
|
329.8
|
|
Per Common Share
|
|
|
||||
Net Income – Basic
|
$
|
1.56
|
|
$
|
1.49
|
|
– Diluted
|
1.55
|
|
1.48
|
|
||
Average Number of Common Shares Outstanding
|
|
|
||||
– Basic
|
208,881,131
|
|
218,236,802
|
|
||
– Diluted
|
209,816,822
|
|
219,270,215
|
|
||
|
|
|
||||
Note: Changes in Other-Than-Temporary-Impairment (OTTI) Losses prior to the adoption of ASU 2016-13
|
$
|
—
|
|
$
|
—
|
|
Other Security Gains (Losses), net
|
—
|
|
(0.2
|
)
|
||
Investment Security Gains (Losses), net
|
$
|
—
|
|
$
|
(0.2
|
)
|
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (UNAUDITED) |
NORTHERN TRUST CORPORATION
|
|
||||
|
THREE MONTHS ENDED MARCH 31,
|
|||||
(In Millions)
|
2020
|
|
2019
|
|
||
Net Income
|
$
|
360.6
|
|
$
|
347.1
|
|
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications)
|
|
|
||||
Net Unrealized Gains (Losses) on Debt Securities Available for Sale
|
199.7
|
|
85.6
|
|
||
Net Unrealized Gains (Losses) on Cash Flow Hedges
|
7.3
|
|
(4.3
|
)
|
||
Net Foreign Currency Adjustments
|
25.7
|
|
14.8
|
|
||
Net Pension and Other Postretirement Benefit Adjustments
|
7.0
|
|
12.3
|
|
||
Other Comprehensive Income (Loss)
|
239.7
|
|
108.4
|
|
||
Comprehensive Income
|
$
|
600.3
|
|
$
|
455.5
|
|
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(UNAUDITED)
|
NORTHERN TRUST CORPORATION
|
|
THREE MONTHS ENDED MARCH 31, 2020
|
||||||||||||||||||||
(In Millions Except Per Share Information)
|
PREFERRED STOCK
|
COMMON STOCK
|
ADDITIONAL PAID-IN CAPITAL
|
RETAINED EARNINGS
|
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
|
TREASURY STOCK
|
TOTAL
|
||||||||||||||
Balance at December 31, 2019
|
$
|
1,273.4
|
|
$
|
408.6
|
|
$
|
1,013.1
|
|
$
|
11,656.7
|
|
$
|
(194.7
|
)
|
$
|
(3,066.1
|
)
|
$
|
11,091.0
|
|
Cumulative Effect Adjustment related to the adoption of Accounting Standards Update 2016-13
|
—
|
|
—
|
|
—
|
|
(10.1
|
)
|
—
|
|
—
|
|
(10.1
|
)
|
|||||||
Balance at January 1, 2020
|
$
|
1,273.4
|
|
$
|
408.6
|
|
$
|
1,013.1
|
|
$
|
11,646.6
|
|
$
|
(194.7
|
)
|
$
|
(3,066.1
|
)
|
$
|
11,080.9
|
|
Net Income
|
—
|
|
—
|
|
—
|
|
360.6
|
|
—
|
|
—
|
|
360.6
|
|
|||||||
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications)
|
—
|
|
—
|
|
—
|
|
—
|
|
239.7
|
|
—
|
|
239.7
|
|
|||||||
Dividends Declared:
|
|
|
|
|
|
|
|
||||||||||||||
Common Stock, $0.70 per share
|
—
|
|
—
|
|
—
|
|
(148.6
|
)
|
—
|
|
—
|
|
(148.6
|
)
|
|||||||
Preferred Stock
|
—
|
|
—
|
|
—
|
|
(19.0
|
)
|
—
|
|
—
|
|
(19.0
|
)
|
|||||||
Redemption of Preferred Stock, Series C
|
(388.5
|
)
|
|
|
|
(11.5
|
)
|
|
|
(400.0
|
)
|
||||||||||
Stock Options and Awards
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
137.7
|
|
137.7
|
|
|||||||
Stock Purchased
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(296.8
|
)
|
(296.8
|
)
|
|||||||
Treasury Stock Transactions — Stock Options and Awards
|
—
|
|
—
|
|
(129.0
|
)
|
—
|
|
—
|
|
—
|
|
(129.0
|
)
|
|||||||
Stock Options and Awards — Amortization
|
—
|
|
—
|
|
54.2
|
|
—
|
|
—
|
|
—
|
|
54.2
|
|
|||||||
Balance at March 31, 2020
|
$
|
884.9
|
|
$
|
408.6
|
|
$
|
938.3
|
|
$
|
11,828.1
|
|
$
|
45.0
|
|
$
|
(3,225.2
|
)
|
$
|
10,879.7
|
|
|
THREE MONTHS ENDED MARCH 31, 2019
|
||||||||||||||||||||
(In Millions Except Per Share Information)
|
PREFERRED STOCK
|
COMMON STOCK
|
ADDITIONAL PAID-IN CAPITAL
|
RETAINED EARNINGS
|
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
|
TREASURY STOCK
|
TOTAL
|
||||||||||||||
Balance at January 1, 2019
|
$
|
882.0
|
|
$
|
408.6
|
|
$
|
1,068.5
|
|
$
|
10,776.8
|
|
$
|
(453.7
|
)
|
$
|
(2,173.9
|
)
|
$
|
10,508.3
|
|
Net Income
|
—
|
|
—
|
|
—
|
|
347.1
|
|
—
|
|
—
|
|
347.1
|
|
|||||||
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications)
|
—
|
|
—
|
|
—
|
|
—
|
|
108.4
|
|
—
|
|
108.4
|
|
|||||||
Dividends Declared:
|
|
|
|
|
|
|
|
|
|
||||||||||||
Common Stock, $0.60 per share
|
—
|
|
—
|
|
—
|
|
(133.7
|
)
|
—
|
|
—
|
|
(133.7
|
)
|
|||||||
Preferred Stock
|
|
|
|
(17.3
|
)
|
|
|
(17.3
|
)
|
||||||||||||
Stock Options and Awards
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
126.0
|
|
126.0
|
|
|||||||
Stock Purchased
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(257.4
|
)
|
(257.4
|
)
|
|||||||
Treasury Stock Transactions — Stock Options and Awards
|
—
|
|
—
|
|
(120.5
|
)
|
—
|
|
—
|
|
—
|
|
(120.5
|
)
|
|||||||
Stock Options and Awards — Amortization
|
—
|
|
—
|
|
55.3
|
|
—
|
|
—
|
|
—
|
|
55.3
|
|
|||||||
Balance at March 31, 2019
|
$
|
882.0
|
|
$
|
408.6
|
|
$
|
1,003.3
|
|
$
|
10,972.9
|
|
$
|
(345.3
|
)
|
$
|
(2,305.3
|
)
|
$
|
10,616.2
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
NORTHERN TRUST CORPORATION
|
|
THREE MONTHS ENDED MARCH 31,
|
|||||
(In Millions)
|
2020
|
|
2019
|
|
||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
||||
Net Income
|
$
|
360.6
|
|
$
|
347.1
|
|
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
|
|
|
||||
Investment Security Losses, net
|
—
|
|
0.2
|
|
||
Amortization and Accretion of Securities and Unearned Income, net
|
22.4
|
|
20.0
|
|
||
Provision for Credit Losses
|
61.0
|
|
—
|
|
||
Depreciation on Buildings and Equipment
|
28.1
|
|
24.9
|
|
||
Amortization of Computer Software
|
91.6
|
|
84.8
|
|
||
Amortization of Intangibles
|
4.1
|
|
4.2
|
|
||
Pension Plan Contributions
|
(10.6
|
)
|
(3.0
|
)
|
||
Change in Receivables
|
(122.7
|
)
|
(105.3
|
)
|
||
Change in Interest Payable
|
(5.7
|
)
|
(3.6
|
)
|
||
Change in Collateral With Derivative Counterparties, net
|
(3,570.2
|
)
|
292.7
|
|
||
Other Operating Activities, net
|
456.1
|
|
(368.3
|
)
|
||
Net Cash (Used in) Provided by Operating Activities
|
(2,685.3
|
)
|
293.7
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
||||
Net Change in Federal Funds Sold and Securities Purchased under Agreements to Resell
|
(362.2
|
)
|
620.5
|
|
||
Change in Interest-Bearing Deposits with Banks
|
(757.6
|
)
|
400.6
|
|
||
Net Change in Federal Reserve and Other Central Bank Deposits
|
(11,204.7
|
)
|
6,738.8
|
|
||
Purchases of Debt Securities – Held to Maturity
|
(7,076.0
|
)
|
(3,724.4
|
)
|
||
Proceeds from Maturity and Redemption of Debt Securities – Held to Maturity
|
6,287.3
|
|
5,948.6
|
|
||
Purchases of Debt Securities – Available for Sale
|
(2,857.6
|
)
|
(1,834.1
|
)
|
||
Proceeds from Sale, Maturity and Redemption of Debt Securities – Available for Sale
|
2,430.7
|
|
1,714.3
|
|
||
Change in Loans and Leases
|
(6,432.9
|
)
|
1,875.1
|
|
||
Purchases of Buildings and Equipment
|
(37.6
|
)
|
(9.1
|
)
|
||
Purchases and Development of Computer Software
|
(94.8
|
)
|
(81.9
|
)
|
||
Change in Client Security Settlement Receivables
|
(1,241.9
|
)
|
(419.7
|
)
|
||
Other Investing Activities, net
|
(153.0
|
)
|
378.9
|
|
||
Net Cash (Used in) Provided by Investing Activities
|
(21,500.3
|
)
|
11,607.6
|
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
||||
Change in Deposits
|
23,956.5
|
|
(8,838.2
|
)
|
||
Change in Federal Funds Purchased
|
3,817.7
|
|
(1,942.4
|
)
|
||
Change in Securities Sold under Agreements to Repurchase
|
(455.6
|
)
|
(128.5
|
)
|
||
Change in Short-Term Other Borrowings
|
(778.0
|
)
|
(158.7
|
)
|
||
Redemption of Preferred Stock - Series C
|
(400.0
|
)
|
—
|
|
||
Treasury Stock Purchased
|
(296.8
|
)
|
(257.4
|
)
|
||
Net Proceeds from Stock Options
|
8.8
|
|
5.5
|
|
||
Cash Dividends Paid on Common Stock
|
(147.1
|
)
|
(120.8
|
)
|
||
Cash Dividends Paid on Preferred Stock
|
(5.8
|
)
|
(5.9
|
)
|
||
Other Financing Activities, net
|
8.3
|
|
—
|
|
||
Net Cash Provided by (Used in) Financing Activities
|
25,708.0
|
|
(11,446.4
|
)
|
||
Effect of Foreign Currency Exchange Rates on Cash
|
(148.4
|
)
|
37.6
|
|
||
Change in Cash and Due from Banks
|
1,374.0
|
|
492.5
|
|
||
Cash and Due from Banks at Beginning of Year
|
4,459.2
|
|
4,581.6
|
|
||
Cash and Due from Banks at End of Year
|
$
|
5,833.2
|
|
$
|
5,074.1
|
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
|
|
|
||||
Interest Paid
|
$
|
126.7
|
|
$
|
244.2
|
|
Income Taxes Paid
|
72.6
|
|
27.2
|
|
||
Transfers from Loans to OREO
|
(0.2
|
)
|
—
|
|
|
MARCH 31, 2020
|
|
|||||
FINANCIAL INSTRUMENT
|
FAIR VALUE
|
VALUATION TECHNIQUE
|
UNOBSERVABLE INPUTS
|
INPUT VALUES
|
WEIGHTED-AVERAGE INPUT VALUES (1)
|
||
Swaps Related to Sale of Certain Visa Class B Common Shares
|
$26.5 million
|
Discounted Cash Flow
|
Conversion Rate
|
1.62x
|
1.62x
|
||
Visa Class A Appreciation
|
9.93%
|
9.93%
|
|||||
Expected Duration
|
12
|
-
|
33 months
|
20 months
|
|
MARCH 31, 2020
|
||||||||||||||
(In Millions)
|
LEVEL 1
|
LEVEL 2
|
LEVEL 3
|
NETTING
|
ASSETS/LIABILITIES AT FAIR VALUE
|
||||||||||
Debt Securities
|
|
|
|
|
|
||||||||||
Available for Sale
|
|
|
|
|
|
||||||||||
U.S. Government
|
$
|
4,584.1
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
4,584.1
|
|
Obligations of States and Political Subdivisions
|
—
|
|
1,776.3
|
|
—
|
|
—
|
|
1,776.3
|
|
|||||
Government Sponsored Agency
|
—
|
|
23,870.0
|
|
—
|
|
—
|
|
23,870.0
|
|
|||||
Non-U.S. Government
|
—
|
|
3.4
|
|
—
|
|
—
|
|
3.4
|
|
|||||
Corporate Debt
|
—
|
|
2,436.0
|
|
—
|
|
—
|
|
2,436.0
|
|
|||||
Covered Bonds
|
—
|
|
553.4
|
|
—
|
|
—
|
|
553.4
|
|
|||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
—
|
|
2,105.5
|
|
—
|
|
—
|
|
2,105.5
|
|
|||||
Other Asset-Backed
|
—
|
|
3,182.1
|
|
—
|
|
—
|
|
3,182.1
|
|
|||||
Commercial Mortgage-Backed
|
—
|
|
922.6
|
|
—
|
|
—
|
|
922.6
|
|
|||||
Other
|
—
|
|
8.3
|
|
—
|
|
—
|
|
8.3
|
|
|||||
Total Available for Sale
|
4,584.1
|
|
34,857.6
|
|
—
|
|
—
|
|
39,441.7
|
|
|||||
Trading Account
|
—
|
|
1.2
|
|
—
|
|
—
|
|
1.2
|
|
|||||
Total Available for Sale and Trading Debt Securities
|
4,584.1
|
|
34,858.8
|
|
—
|
|
—
|
|
39,442.9
|
|
|||||
Other Assets
|
|
|
|
|
|
||||||||||
Derivative Assets
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
—
|
|
5,935.4
|
|
—
|
|
(2,062.6
|
)
|
3,872.8
|
|
|||||
Interest Rate Contracts
|
—
|
|
341.5
|
|
—
|
|
(3.2
|
)
|
338.3
|
|
|||||
Total Derivative Assets
|
—
|
|
6,276.9
|
|
—
|
|
(2,065.8
|
)
|
4,211.1
|
|
|||||
Other Liabilities
|
|
|
|
|
|
||||||||||
Derivative Liabilities
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
—
|
|
5,763.4
|
|
—
|
|
(4,763.3
|
)
|
1,000.1
|
|
|||||
Interest Rate Contracts
|
—
|
|
160.1
|
|
—
|
|
(126.9
|
)
|
33.2
|
|
|||||
Other Financial Derivatives (1)
|
—
|
|
—
|
|
26.5
|
|
—
|
|
26.5
|
|
|||||
Total Derivative Liabilities
|
$
|
—
|
|
$
|
5,923.5
|
|
$
|
26.5
|
|
$
|
(4,890.2
|
)
|
$
|
1,059.8
|
|
(1)
|
This line consists of swaps related to the sale of certain Visa Class B common shares.
|
|
DECEMBER 31, 2019
|
||||||||||||||
(In Millions)
|
LEVEL 1
|
LEVEL 2
|
LEVEL 3
|
NETTING
|
ASSETS/LIABILITIES AT FAIR VALUE
|
||||||||||
Debt Securities
|
|
|
|
|
|
||||||||||
Available for Sale
|
|
|
|
|
|
||||||||||
U.S. Government
|
$
|
4,549.1
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
4,549.1
|
|
Obligations of States and Political Subdivisions
|
—
|
|
1,615.3
|
|
—
|
|
—
|
|
1,615.3
|
|
|||||
Government Sponsored Agency
|
—
|
|
23,271.2
|
|
—
|
|
—
|
|
23,271.2
|
|
|||||
Non-U.S. Government
|
—
|
|
3.3
|
|
—
|
|
—
|
|
3.3
|
|
|||||
Corporate Debt
|
—
|
|
2,402.7
|
|
—
|
|
—
|
|
2,402.7
|
|
|||||
Covered Bonds
|
—
|
|
769.9
|
|
—
|
|
—
|
|
769.9
|
|
|||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
—
|
|
2,127.6
|
|
—
|
|
—
|
|
2,127.6
|
|
|||||
Other Asset-Backed
|
—
|
|
3,330.5
|
|
—
|
|
—
|
|
3,330.5
|
|
|||||
Commercial Mortgage-Backed
|
—
|
|
797.7
|
|
—
|
|
—
|
|
797.7
|
|
|||||
Other
|
—
|
|
9.0
|
|
—
|
|
—
|
|
9.0
|
|
|||||
Total Available for Sale
|
4,549.1
|
|
34,327.2
|
|
—
|
|
—
|
|
38,876.3
|
|
|||||
Trading Account
|
—
|
|
0.3
|
|
—
|
|
—
|
|
0.3
|
|
|||||
Total Available for Sale and Trading Debt Securities
|
4,549.1
|
|
34,327.5
|
|
—
|
|
—
|
|
38,876.6
|
|
|||||
Other Assets
|
|
|
|
|
|
||||||||||
Derivative Assets
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
—
|
|
3,234.8
|
|
—
|
|
(2,334.1
|
)
|
900.7
|
|
|||||
Interest Rate Contracts
|
—
|
|
152.9
|
|
—
|
|
(3.9
|
)
|
149.0
|
|
|||||
Total Derivative Assets
|
—
|
|
3,387.7
|
|
—
|
|
(2,338.0
|
)
|
1,049.7
|
|
|||||
Other Liabilities
|
|
|
|
|
|
|
|||||||||
Derivative Liabilities
|
|
|
|
|
|
|
|||||||||
Foreign Exchange Contracts
|
—
|
|
3,182.2
|
|
—
|
|
(1,548.6
|
)
|
1,633.6
|
|
|||||
Interest Rate Contracts
|
—
|
|
97.4
|
|
—
|
|
(57.3
|
)
|
40.1
|
|
|||||
Other Financial Derivatives (1)
|
—
|
|
—
|
|
33.4
|
|
(12.5
|
)
|
20.9
|
|
|||||
Total Derivative Liabilities
|
$
|
—
|
|
$
|
3,279.6
|
|
$
|
33.4
|
|
$
|
(1,618.4
|
)
|
$
|
1,694.6
|
|
(In Millions)
|
SWAPS RELATED TO SALE OF CERTAIN VISA CLASS B COMMON SHARES
|
|||||
THREE MONTHS ENDED MARCH 31,
|
2020
|
2019
|
||||
Fair Value at January 1
|
$
|
33.4
|
|
$
|
32.8
|
|
Total (Gains) Losses:
|
|
|
||||
Included in Earnings (1)
|
(2.9
|
)
|
5.1
|
|
||
Purchases, Issues, Sales, and Settlements
|
|
|
||||
Settlements
|
(4.0
|
)
|
(2.9
|
)
|
||
Fair Value at March 31
|
$
|
26.5
|
|
$
|
35.0
|
|
|
|
|
|
MARCH 31, 2020
|
|
||||||
FINANCIAL INSTRUMENT
|
FAIR VALUE(1)
|
VALUATION TECHNIQUE
|
UNOBSERVABLE INPUTS
|
INPUT VALUES
|
WEIGHTED-AVERAGE INPUT VALUES
|
|||
Loans
|
$12.9 million
|
Market Approach
|
Discount factor applied to real estate collateral-based loans to reflect realizable value
|
15.0
|
%
|
-
|
20.0%
|
15.4%
|
|
DECEMBER 31, 2019
|
|
||||||
FINANCIAL INSTRUMENT
|
FAIR VALUE(1)
|
VALUATION TECHNIQUE
|
UNOBSERVABLE INPUTS
|
INPUT VALUES
|
WEIGHTED-AVERAGE INPUT VALUES
|
|||
Loans
|
$8.0 million
|
Market Approach
|
Discount factor applied to real estate collateral-based loans to reflect realizable value
|
15.0
|
%
|
-
|
20.0%
|
15.3%
|
|
MARCH 31, 2020
|
||||||||||||||
|
|
|
FAIR VALUE
|
||||||||||||
(In Millions)
|
BOOK VALUE
|
|
TOTAL FAIR VALUE
|
|
LEVEL 1
|
|
LEVEL 2
|
|
LEVEL 3
|
|
|||||
ASSETS
|
|
|
|
||||||||||||
Cash and Due from Banks
|
$
|
5,833.2
|
|
$
|
5,833.2
|
|
$
|
5,833.2
|
|
$
|
—
|
|
$
|
—
|
|
Federal Reserve and Other Central Bank Deposits
|
44,661.5
|
|
44,661.5
|
|
—
|
|
44,661.5
|
|
—
|
|
|||||
Interest-Bearing Deposits with Banks
|
5,358.9
|
|
5,358.9
|
|
—
|
|
5,358.9
|
|
—
|
|
|||||
Federal Funds Sold and Securities Purchased under Agreements to Resell
|
998.2
|
|
998.2
|
|
—
|
|
998.2
|
|
—
|
|
|||||
Debt Securities
|
|
|
|
|
|
||||||||||
Available for Sale(1)
|
39,441.7
|
|
39,441.7
|
|
4,584.1
|
|
34,857.6
|
|
—
|
|
|||||
Held to Maturity
|
12,635.7
|
|
12,533.0
|
|
105.0
|
|
12,428.0
|
|
—
|
|
|||||
Trading Account
|
1.2
|
|
1.2
|
|
—
|
|
1.2
|
|
—
|
|
|||||
Loans (excluding Leases)
|
|
|
|
|
|
||||||||||
Held for Investment
|
37,626.2
|
|
38,076.3
|
|
—
|
|
—
|
|
38,076.3
|
|
|||||
Client Security Settlement Receivables
|
2,116.9
|
|
2,116.9
|
|
—
|
|
2,116.9
|
|
—
|
|
|||||
Other Assets
|
|
|
|
|
|
||||||||||
Federal Reserve and Federal Home Loan Bank Stock
|
301.2
|
|
301.2
|
|
—
|
|
301.2
|
|
—
|
|
|||||
Community Development Investments
|
746.2
|
|
746.2
|
|
—
|
|
746.2
|
|
—
|
|
|||||
Employee Benefit and Deferred Compensation
|
204.7
|
|
218.9
|
|
147.1
|
|
71.8
|
|
—
|
|
|||||
LIABILITIES
|
|
|
|
|
|
||||||||||
Deposits
|
|
|
|
||||||||||||
Demand, Noninterest-Bearing, Savings, Money Market and Other Interest-Bearing
|
$
|
60,793.4
|
|
$
|
60,793.4
|
|
$
|
60,793.4
|
|
$
|
—
|
|
$
|
—
|
|
Savings Certificates and Other Time
|
918.7
|
|
927.9
|
|
—
|
|
927.9
|
|
—
|
|
|||||
Non U.S. Offices Interest-Bearing
|
69,779.1
|
|
69,779.1
|
|
—
|
|
69,779.1
|
|
—
|
|
|||||
Federal Funds Purchased
|
4,370.6
|
|
4,370.6
|
|
—
|
|
4,370.6
|
|
—
|
|
|||||
Securities Sold Under Agreements to Repurchase
|
34.1
|
|
34.1
|
|
—
|
|
34.1
|
|
—
|
|
|||||
Other Borrowings
|
5,955.9
|
|
5,949.8
|
|
—
|
|
5,949.8
|
|
—
|
|
|||||
Senior Notes
|
2,668.5
|
|
2,583.6
|
|
—
|
|
2,583.6
|
|
—
|
|
|||||
Long-Term Debt
|
|
|
|
|
|
||||||||||
Subordinated Debt
|
1,196.0
|
|
1,122.6
|
|
—
|
|
1,122.6
|
|
—
|
|
|||||
Floating Rate Capital Debt
|
277.7
|
|
255.5
|
|
—
|
|
255.5
|
|
—
|
|
|||||
Other Liabilities
|
|
|
|
|
|
||||||||||
Standby Letters of Credit
|
27.2
|
|
27.2
|
|
—
|
|
—
|
|
27.2
|
|
|||||
Loan Commitments
|
49.0
|
|
49.0
|
|
—
|
|
—
|
|
49.0
|
|
|||||
Derivative Instruments
|
|
|
|
|
|
||||||||||
Asset/Liability Management
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
|
|
|
|
|
||||||||||
Assets
|
$
|
149.3
|
|
$
|
149.3
|
|
$
|
—
|
|
$
|
149.3
|
|
$
|
—
|
|
Liabilities
|
17.3
|
|
17.3
|
|
—
|
|
17.3
|
|
—
|
|
|||||
Interest Rate Contracts
|
|
|
|
|
|
||||||||||
Assets
|
12.9
|
|
12.9
|
|
—
|
|
12.9
|
|
—
|
|
|||||
Liabilities
|
18.3
|
|
18.3
|
|
—
|
|
18.3
|
|
—
|
|
|||||
Other Financial Derivatives
|
|
|
|
|
|||||||||||
Liabilities(2)
|
26.5
|
|
26.5
|
|
—
|
|
—
|
|
26.5
|
|
|||||
Client-Related and Trading
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
|
|
|
|
|
||||||||||
Assets
|
5,786.1
|
|
5,786.1
|
|
—
|
|
5,786.1
|
|
—
|
|
|||||
Liabilities
|
5,746.1
|
|
5,746.1
|
|
—
|
|
5,746.1
|
|
—
|
|
|||||
Interest Rate Contracts
|
|
|
|
|
|||||||||||
Assets
|
328.6
|
|
328.6
|
|
—
|
|
328.6
|
|
—
|
|
|||||
Liabilities
|
141.8
|
|
141.8
|
|
—
|
|
141.8
|
|
—
|
|
|
DECEMBER 31, 2019
|
||||||||||||||
|
|
|
FAIR VALUE
|
||||||||||||
(In Millions)
|
BOOK VALUE
|
|
TOTAL FAIR VALUE
|
|
LEVEL 1
|
|
LEVEL 2
|
|
LEVEL 3
|
|
|||||
ASSETS
|
|
|
|
|
|
||||||||||
Cash and Due from Banks
|
$
|
4,459.2
|
|
$
|
4,459.2
|
|
$
|
4,459.2
|
|
$
|
—
|
|
$
|
—
|
|
Federal Reserve and Other Central Bank Deposits
|
33,886.0
|
|
33,886.0
|
|
—
|
|
33,886.0
|
|
—
|
|
|||||
Interest-Bearing Deposits with Banks
|
4,877.1
|
|
4,877.1
|
|
—
|
|
4,877.1
|
|
—
|
|
|||||
Federal Funds Sold and Securities Purchased under Agreements to Resell
|
712.8
|
|
712.8
|
|
—
|
|
712.8
|
|
—
|
|
|||||
Debt Securities
|
|
|
|
|
|
||||||||||
Available for Sale(1)
|
38,876.3
|
|
38,876.3
|
|
4,549.1
|
|
34,327.2
|
|
—
|
|
|||||
Held to Maturity
|
12,284.5
|
|
12,249.3
|
|
138.8
|
|
12,110.5
|
|
—
|
|
|||||
Trading Account
|
0.3
|
|
0.3
|
|
—
|
|
0.3
|
|
—
|
|
|||||
Loans (excluding Leases)
|
|
|
|
|
|
||||||||||
Held for Investment
|
31,239.5
|
|
31,517.8
|
|
—
|
|
—
|
|
31,517.8
|
|
|||||
Client Security Settlement Receivables
|
845.7
|
|
845.7
|
|
—
|
|
845.7
|
|
—
|
|
|||||
Other Assets
|
|
|
|
|
|
||||||||||
Federal Reserve and Federal Home Loan Bank Stock
|
301.2
|
|
301.2
|
|
—
|
|
301.2
|
|
—
|
|
|||||
Community Development Investments
|
749.3
|
|
749.3
|
|
—
|
|
749.3
|
|
—
|
|
|||||
Employee Benefit and Deferred Compensation
|
199.5
|
|
207.6
|
|
131.0
|
|
76.6
|
|
—
|
|
|||||
LIABILITIES
|
|
|
|
|
|
||||||||||
Deposits
|
|
|
|
|
|
||||||||||
Demand, Noninterest-Bearing, Savings, Money Market and Other Interest-Bearing
|
$
|
47,733.6
|
|
$
|
47,733.6
|
|
$
|
47,733.6
|
|
$
|
—
|
|
$
|
—
|
|
Savings Certificates and Other Time
|
986.7
|
|
994.2
|
|
—
|
|
994.2
|
|
—
|
|
|||||
Non U.S. Offices Interest-Bearing
|
60,400.3
|
|
60,400.3
|
|
—
|
|
60,400.3
|
|
—
|
|
|||||
Federal Funds Purchased
|
552.9
|
|
552.9
|
|
—
|
|
552.9
|
|
—
|
|
|||||
Securities Sold Under Agreements to Repurchase
|
489.7
|
|
489.7
|
|
—
|
|
489.7
|
|
—
|
|
|||||
Other Borrowings
|
6,744.8
|
|
6,745.9
|
|
—
|
|
6,745.9
|
|
—
|
|
|||||
Senior Notes
|
2,573.0
|
|
2,593.0
|
|
—
|
|
2,593.0
|
|
—
|
|
|||||
Long-Term Debt
|
|
|
|
|
|
||||||||||
Subordinated Debt
|
1,148.1
|
|
1,169.5
|
|
—
|
|
1,169.5
|
|
—
|
|
|||||
Floating Rate Capital Debt
|
277.7
|
|
262.1
|
|
—
|
|
262.1
|
|
—
|
|
|||||
Other Liabilities
|
|
|
|
|
|
||||||||||
Standby Letters of Credit
|
25.5
|
|
25.5
|
|
—
|
|
—
|
|
25.5
|
|
|||||
Loan Commitments
|
32.3
|
|
32.3
|
|
—
|
|
—
|
|
32.3
|
|
|||||
Derivative Instruments
|
|
|
|
|
|
||||||||||
Asset/Liability Management
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
|
|
|
|
|
||||||||||
Assets
|
$
|
83.1
|
|
$
|
83.1
|
|
$
|
—
|
|
$
|
83.1
|
|
$
|
—
|
|
Liabilities
|
24.1
|
|
24.1
|
|
—
|
|
24.1
|
|
—
|
|
|||||
Interest Rate Contracts
|
|
|
|
|
|
||||||||||
Assets
|
20.5
|
|
20.5
|
|
—
|
|
20.5
|
|
—
|
|
|||||
Liabilities
|
21.1
|
|
21.1
|
|
—
|
|
21.1
|
|
—
|
|
|||||
Other Financial Derivatives
|
|
|
|
|
|
||||||||||
Liabilities (2)
|
33.4
|
|
33.4
|
|
—
|
|
—
|
|
33.4
|
|
|||||
Client-Related and Trading
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
|
|
|
|
|
||||||||||
Assets
|
3,151.7
|
|
3,151.7
|
|
—
|
|
3,151.7
|
|
—
|
|
|||||
Liabilities
|
3,158.1
|
|
3,158.1
|
|
—
|
|
3,158.1
|
|
—
|
|
|||||
Interest Rate Contracts
|
|
|
|
|
|
||||||||||
Assets
|
132.4
|
|
132.4
|
|
—
|
|
132.4
|
|
—
|
|
|||||
Liabilities
|
76.3
|
|
76.3
|
|
—
|
|
76.3
|
|
—
|
|
|
MARCH 31, 2020
|
|||||||||||
(In Millions)
|
AMORTIZED COST
|
GROSS UNREALIZED GAINS
|
GROSS UNREALIZED LOSSES
|
FAIR VALUE
|
||||||||
U.S. Government
|
$
|
4,481.7
|
|
$
|
102.4
|
|
$
|
—
|
|
$
|
4,584.1
|
|
Obligations of States and Political Subdivisions
|
1,725.2
|
|
54.3
|
|
3.2
|
|
1,776.3
|
|
||||
Government Sponsored Agency
|
23,611.0
|
|
365.3
|
|
106.3
|
|
23,870.0
|
|
||||
Non-U.S. Government
|
3.3
|
|
0.1
|
|
—
|
|
3.4
|
|
||||
Corporate Debt
|
2,408.6
|
|
38.7
|
|
11.3
|
|
2,436.0
|
|
||||
Covered Bonds
|
550.5
|
|
4.2
|
|
1.3
|
|
553.4
|
|
||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
2,047.5
|
|
58.6
|
|
0.6
|
|
2,105.5
|
|
||||
Other Asset-Backed
|
3,284.9
|
|
2.3
|
|
105.1
|
|
3,182.1
|
|
||||
Commercial Mortgage-Backed
|
904.3
|
|
31.1
|
|
12.8
|
|
922.6
|
|
||||
Other
|
8.3
|
|
—
|
|
—
|
|
8.3
|
|
||||
Total
|
$
|
39,025.3
|
|
$
|
657.0
|
|
$
|
240.6
|
|
$
|
39,441.7
|
|
|
DECEMBER 31, 2019
|
|||||||||||
(In Millions)
|
AMORTIZED COST
|
GROSS UNREALIZED GAINS
|
GROSS UNREALIZED LOSSES
|
FAIR VALUE
|
||||||||
U.S. Government
|
$
|
4,527.5
|
|
$
|
26.7
|
|
$
|
5.1
|
|
$
|
4,549.1
|
|
Obligations of States and Political Subdivisions
|
1,604.0
|
|
24.6
|
|
13.3
|
|
1,615.3
|
|
||||
Government Sponsored Agency
|
23,247.5
|
|
101.8
|
|
78.1
|
|
23,271.2
|
|
||||
Non-U.S. Government
|
3.3
|
|
—
|
|
—
|
|
3.3
|
|
||||
Corporate Debt
|
2,378.9
|
|
27.8
|
|
4.0
|
|
2,402.7
|
|
||||
Covered Bonds
|
766.3
|
|
4.4
|
|
0.8
|
|
769.9
|
|
||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
2,091.3
|
|
37.4
|
|
1.1
|
|
2,127.6
|
|
||||
Other Asset-Backed
|
3,324.5
|
|
11.3
|
|
5.3
|
|
3,330.5
|
|
||||
Commercial Mortgage-Backed
|
769.9
|
|
28.7
|
|
0.9
|
|
797.7
|
|
||||
Other
|
9.0
|
|
—
|
|
—
|
|
9.0
|
|
||||
Total
|
$
|
38,722.2
|
|
$
|
262.7
|
|
$
|
108.6
|
|
$
|
38,876.3
|
|
MARCH 31, 2020
|
ONE YEAR OR LESS
|
ONE TO FIVE YEARS
|
FIVE TO TEN YEARS
|
OVER TEN YEARS
|
TOTAL
|
|||||||||||||||||||||||||
(In Millions)
|
Amortized Cost
|
Fair Value
|
Amortized Cost
|
Fair Value
|
Amortized Cost
|
Fair Value
|
Amortized Cost
|
Fair Value
|
Amortized Cost
|
Fair Value
|
||||||||||||||||||||
U.S. Government
|
$
|
2,204.6
|
|
$
|
2,221.5
|
|
$
|
1,724.7
|
|
$
|
1,768.4
|
|
$
|
552.4
|
|
$
|
594.2
|
|
$
|
—
|
|
$
|
—
|
|
$
|
4,481.7
|
|
$
|
4,584.1
|
|
Obligations of States and Political Subdivisions
|
35.9
|
|
35.9
|
|
87.5
|
|
91.3
|
|
1,601.8
|
|
1,649.1
|
|
—
|
|
—
|
|
1,725.2
|
|
1,776.3
|
|
||||||||||
Government Sponsored Agency
|
5,825.0
|
|
5,895.7
|
|
10,097.6
|
|
10,225.5
|
|
5,524.0
|
|
5,565.7
|
|
2,164.4
|
|
2,183.1
|
|
23,611.0
|
|
23,870.0
|
|
||||||||||
Non-U.S. Government
|
3.3
|
|
3.4
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3.3
|
|
3.4
|
|
||||||||||
Corporate Debt
|
366.4
|
|
365.8
|
|
2,036.4
|
|
2,064.4
|
|
5.8
|
|
5.8
|
|
—
|
|
—
|
|
2,408.6
|
|
2,436.0
|
|
||||||||||
Covered Bonds
|
108.3
|
|
108.6
|
|
442.2
|
|
444.8
|
|
—
|
|
—
|
|
—
|
|
—
|
|
550.5
|
|
553.4
|
|
||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
327.6
|
|
327.8
|
|
1,669.9
|
|
1,727.8
|
|
50.0
|
|
49.9
|
|
—
|
|
—
|
|
2,047.5
|
|
2,105.5
|
|
||||||||||
Other Asset-Backed
|
643.0
|
|
641.2
|
|
2,164.5
|
|
2,096.3
|
|
464.4
|
|
432.5
|
|
13.0
|
|
12.1
|
|
3,284.9
|
|
3,182.1
|
|
||||||||||
Commercial Mortgage-Backed
|
26.1
|
|
25.9
|
|
255.7
|
|
258.0
|
|
600.8
|
|
617.5
|
|
21.7
|
|
21.2
|
|
904.3
|
|
922.6
|
|
||||||||||
Other
|
8.3
|
|
8.3
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
8.3
|
|
8.3
|
|
||||||||||
Total
|
$
|
9,548.5
|
|
$
|
9,634.1
|
|
$
|
18,478.5
|
|
$
|
18,676.5
|
|
$
|
8,799.2
|
|
$
|
8,914.7
|
|
$
|
2,199.1
|
|
$
|
2,216.4
|
|
$
|
39,025.3
|
|
$
|
39,441.7
|
|
AS OF MARCH 31, 2020
|
LESS THAN 12 MONTHS
|
12 MONTHS OR LONGER
|
TOTAL
|
|||||||||||||||
(In Millions)
|
FAIR
VALUE
|
|
UNREALIZED
LOSSES
|
|
FAIR
VALUE
|
|
UNREALIZED
LOSSES
|
|
FAIR
VALUE
|
|
UNREALIZED
LOSSES
|
|
||||||
Obligations of States and Political Subdivisions
|
$
|
230.6
|
|
$
|
3.2
|
|
$
|
—
|
|
$
|
—
|
|
$
|
230.6
|
|
$
|
3.2
|
|
Government Sponsored Agency
|
2,803.1
|
|
24.4
|
|
7,033.0
|
|
81.9
|
|
9,836.1
|
|
106.3
|
|
||||||
Corporate Debt
|
669.2
|
|
8.8
|
|
134.0
|
|
1.9
|
|
803.2
|
|
10.7
|
|
||||||
Covered Bonds
|
306.5
|
|
1.3
|
|
—
|
|
—
|
|
306.5
|
|
1.3
|
|
||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
99.9
|
|
0.1
|
|
158.8
|
|
0.5
|
|
258.7
|
|
0.6
|
|
||||||
Other Asset-Backed
|
1,616.7
|
|
45.0
|
|
1,049.7
|
|
60.1
|
|
2,666.4
|
|
105.1
|
|
||||||
Commercial Mortgage-Backed
|
296.3
|
|
12.7
|
|
34.1
|
|
0.1
|
|
330.4
|
|
12.8
|
|
||||||
Total
|
$
|
6,022.3
|
|
$
|
95.5
|
|
$
|
8,409.6
|
|
$
|
144.5
|
|
$
|
14,431.9
|
|
$
|
240.0
|
|
AS OF DECEMBER 31, 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
|
$
|
252.2
|
|
$
|
2.8
|
|
$
|
899.7
|
|
$
|
2.3
|
|
$
|
1,151.9
|
|
$
|
5.1
|
|
Obligations of States and Political Subdivisions
|
902.4
|
|
13.3
|
|
—
|
|
—
|
|
902.4
|
|
13.3
|
|
||||||
Government Sponsored Agency
|
5,405.0
|
|
35.6
|
|
7,818.4
|
|
42.5
|
|
13,223.4
|
|
78.1
|
|
||||||
Corporate Debt
|
279.3
|
|
1.1
|
|
492.7
|
|
2.9
|
|
772.0
|
|
4.0
|
|
||||||
Covered Bonds
|
138.7
|
|
0.7
|
|
25.0
|
|
0.1
|
|
163.7
|
|
0.8
|
|
||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
217.5
|
|
1.0
|
|
155.2
|
|
0.1
|
|
372.7
|
|
1.1
|
|
||||||
Other Asset-Backed
|
592.4
|
|
1.8
|
|
1,164.9
|
|
3.5
|
|
1,757.3
|
|
5.3
|
|
||||||
Commercial Mortgage-Backed
|
62.8
|
|
0.7
|
|
59.3
|
|
0.2
|
|
122.1
|
|
0.9
|
|
||||||
Total
|
$
|
7,850.3
|
|
$
|
57.0
|
|
$
|
10,615.2
|
|
$
|
51.6
|
|
$
|
18,465.5
|
|
$
|
108.6
|
|
|
MARCH 31, 2020
|
|||||||||||
(In Millions)
|
AMORTIZED
COST
|
|
GROSS
UNREALIZED
GAINS
|
|
GROSS
UNREALIZED
LOSSES
|
|
FAIR
VALUE
|
|
||||
U.S Government
|
$
|
104.9
|
|
$
|
0.1
|
|
$
|
—
|
|
$
|
105.0
|
|
Obligations of States and Political Subdivisions
|
6.9
|
|
0.2
|
|
—
|
|
7.1
|
|
||||
Government Sponsored Agency
|
3.9
|
|
0.3
|
|
—
|
|
4.2
|
|
||||
Non-U.S. Government
|
3,696.0
|
|
7.5
|
|
0.3
|
|
3,703.2
|
|
||||
Corporate Debt
|
520.9
|
|
1.1
|
|
8.4
|
|
513.6
|
|
||||
Covered Bonds
|
3,116.9
|
|
15.5
|
|
14.2
|
|
3,118.2
|
|
||||
Certificates of Deposit
|
1,041.9
|
|
—
|
|
—
|
|
1,041.9
|
|
||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
3,060.0
|
|
35.6
|
|
3.3
|
|
3,092.3
|
|
||||
Other Asset-Backed
|
783.3
|
|
—
|
|
8.1
|
|
775.2
|
|
||||
Other
|
301.0
|
|
—
|
|
128.7
|
|
172.3
|
|
||||
Total
|
$
|
12,635.7
|
|
$
|
60.3
|
|
$
|
163.0
|
|
$
|
12,533.0
|
|
|
DECEMBER 31, 2019
|
|||||||||||
(In Millions)
|
AMORTIZED
COST
|
|
GROSS
UNREALIZED
GAINS
|
|
GROSS
UNREALIZED
LOSSES
|
|
FAIR
VALUE
|
|
||||
U.S. Government
|
$
|
138.8
|
|
$
|
—
|
|
$
|
—
|
|
$
|
138.8
|
|
Obligations of States and Political Subdivisions
|
10.1
|
|
0.2
|
|
—
|
|
10.3
|
|
||||
Government Sponsored Agency
|
4.1
|
|
0.2
|
|
—
|
|
4.3
|
|
||||
Non-U.S. Government
|
4,076.0
|
|
5.3
|
|
2.5
|
|
4,078.8
|
|
||||
Corporate Debt
|
405.1
|
|
1.4
|
|
0.3
|
|
406.2
|
|
||||
Covered Bonds
|
3,006.7
|
|
16.1
|
|
2.4
|
|
3,020.4
|
|
||||
Certificates of Deposit
|
262.9
|
|
—
|
|
—
|
|
262.9
|
|
||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
3,285.4
|
|
21.7
|
|
2.1
|
|
3,305.0
|
|
||||
Other Asset-Backed
|
804.3
|
|
0.7
|
|
0.3
|
|
804.7
|
|
||||
Other
|
291.1
|
|
0.1
|
|
73.3
|
|
217.9
|
|
||||
Total
|
$
|
12,284.5
|
|
$
|
45.7
|
|
$
|
80.9
|
|
$
|
12,249.3
|
|
MARCH 31, 2020
|
ONE YEAR OR LESS
|
ONE TO FIVE YEARS
|
FIVE TO TEN YEARS
|
OVER TEN YEARS
|
TOTAL
|
|||||||||||||||||||||||||
(In Millions)
|
Amortized Cost
|
Fair Value
|
Amortized Cost
|
Fair Value
|
Amortized Cost
|
Fair Value
|
Amortized Cost
|
Fair Value
|
Amortized Cost
|
Fair Value
|
||||||||||||||||||||
U.S. Government
|
$
|
104.9
|
|
$
|
105.0
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
104.9
|
|
$
|
105.0
|
|
Obligations of States and Political Subdivisions
|
6.0
|
|
6.1
|
|
0.9
|
|
1.0
|
|
—
|
|
—
|
|
—
|
|
—
|
|
6.9
|
|
7.1
|
|
||||||||||
Government Sponsored Agency
|
0.6
|
|
0.7
|
|
1.7
|
|
1.8
|
|
1.0
|
|
1.1
|
|
0.6
|
|
0.6
|
|
3.9
|
|
4.2
|
|
||||||||||
Non-U.S. Government
|
3,481.7
|
|
3,483.9
|
|
214.3
|
|
219.3
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3,696.0
|
|
3,703.2
|
|
||||||||||
Corporate Debt
|
96.0
|
|
94.2
|
|
424.9
|
|
419.4
|
|
—
|
|
—
|
|
—
|
|
—
|
|
520.9
|
|
513.6
|
|
||||||||||
Covered Bonds
|
753.0
|
|
755.2
|
|
2,363.9
|
|
2,363.0
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3,116.9
|
|
3,118.2
|
|
||||||||||
Certificates of Deposit
|
1,041.9
|
|
1,041.9
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,041.9
|
|
1,041.9
|
|
||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
418.5
|
|
419.4
|
|
2,600.9
|
|
2,632.6
|
|
40.6
|
|
40.3
|
|
—
|
|
—
|
|
3,060.0
|
|
3,092.3
|
|
||||||||||
Other Asset-Backed
|
252.3
|
|
251.5
|
|
449.2
|
|
442.7
|
|
81.8
|
|
81.0
|
|
—
|
|
—
|
|
783.3
|
|
775.2
|
|
||||||||||
Other
|
8.5
|
|
8.0
|
|
141.2
|
|
111.6
|
|
46.0
|
|
28.5
|
|
105.3
|
|
24.2
|
|
301.0
|
|
172.3
|
|
||||||||||
Total
|
$
|
6,163.4
|
|
$
|
6,165.9
|
|
$
|
6,197.0
|
|
$
|
6,191.4
|
|
$
|
169.4
|
|
$
|
150.9
|
|
$
|
105.9
|
|
$
|
24.8
|
|
$
|
12,635.7
|
|
$
|
12,533.0
|
|
|
AS OF MARCH 31, 2020
|
|||||||||||||||||
(In Millions)
|
AAA
|
AA
|
A
|
BBB
|
NOT RATED
|
TOTAL
|
||||||||||||
U.S. Government
|
$
|
104.9
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
104.9
|
|
Obligations of States and Political Subdivisions
|
—
|
|
0.5
|
|
5.1
|
|
1.3
|
|
—
|
|
6.9
|
|
||||||
Government Sponsored Agency
|
3.9
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3.9
|
|
||||||
Non-U.S. Government
|
348.1
|
|
1,219.2
|
|
2,128.7
|
|
—
|
|
—
|
|
3,696.0
|
|
||||||
Corporate Debt
|
3.4
|
|
256.5
|
|
261.0
|
|
—
|
|
—
|
|
520.9
|
|
||||||
Covered Bonds
|
3,116.9
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3,116.9
|
|
||||||
Certificates of Deposit
|
—
|
|
—
|
|
—
|
|
—
|
|
1,041.9
|
|
1,041.9
|
|
||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
2,146.4
|
|
882.6
|
|
—
|
|
—
|
|
31.0
|
|
3,060.0
|
|
||||||
Other Asset-Backed
|
783.3
|
|
—
|
|
—
|
|
—
|
|
—
|
|
783.3
|
|
||||||
Other
|
—
|
|
—
|
|
—
|
|
—
|
|
301.0
|
|
301.0
|
|
||||||
Total
|
$
|
6,506.9
|
|
$
|
2,358.8
|
|
$
|
2,394.8
|
|
$
|
1.3
|
|
$
|
1,373.9
|
|
$
|
12,635.7
|
|
|
THREE MONTHS ENDED MARCH 31,
|
|||||
(In Millions)
|
2020
|
|
2019
|
|
||
Gross Realized Debt Securities Gains
|
$
|
0.7
|
|
$
|
1.3
|
|
Gross Realized Debt Securities Losses
|
(0.7
|
)
|
(1.5
|
)
|
||
Net Investment Security (Losses) Gains
|
$
|
—
|
|
$
|
(0.2
|
)
|
|
MARCH 31, 2020
|
DECEMBER 31, 2019
|
||||
|
REMAINING CONTRACTUAL MATURITY OF THE AGREEMENTS
|
|||||
(In Millions)
|
OVERNIGHT AND CONTINUOUS
|
|||||
U.S. Treasury and Agency Securities
|
$
|
34.1
|
|
$
|
489.7
|
|
Total Borrowings
|
34.1
|
|
489.7
|
|
||
Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 22
|
34.1
|
|
489.7
|
|
||
Amounts related to agreements not included in Note 22
|
—
|
|
—
|
|
(In Millions)
|
MARCH 31, 2020
|
DECEMBER 31, 2019
|
||||
Commercial
|
|
|
||||
Commercial and Institutional
|
$
|
12,327.3
|
|
$
|
9,091.1
|
|
Commercial Real Estate
|
3,085.2
|
|
3,104.3
|
|
||
Non-U.S.
|
3,923.0
|
|
1,576.3
|
|
||
Lease Financing, net
|
64.8
|
|
65.6
|
|
||
Other
|
336.5
|
|
164.0
|
|
||
Total Commercial
|
19,736.8
|
|
14,001.3
|
|
||
Personal
|
|
|
||||
Private Client
|
11,609.9
|
|
11,071.4
|
|
||
Residential Real Estate
|
6,074.3
|
|
6,095.0
|
|
||
Non-U.S.
|
346.9
|
|
174.8
|
|
||
Other
|
69.8
|
|
67.1
|
|
||
Total Personal
|
18,100.9
|
|
17,408.3
|
|
||
Total Loans and Leases
|
$
|
37,837.7
|
|
$
|
31,409.6
|
|
•
|
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.
|
March 31, 2020
|
TERM LOANS AND LEASES
|
REVOLVING LOANS
|
REVOLVING LOANS CONVERTED TO TERM LOANS
|
|
|||||||||||||||||||||||
(In Millions)
|
2020
|
2019
|
2018
|
2017
|
2016
|
PRIOR
|
TOTAL
|
||||||||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial and Institutional
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Risk Rating:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
1 to 3 Category
|
$
|
151.0
|
|
$
|
787.4
|
|
$
|
340.4
|
|
$
|
287.4
|
|
$
|
533.0
|
|
$
|
509.2
|
|
$
|
5,880.6
|
|
$
|
4.9
|
|
$
|
8,493.9
|
|
4 to 5 Category
|
137.7
|
|
668.7
|
|
370.5
|
|
449.0
|
|
120.2
|
|
203.8
|
|
1,676.4
|
|
51.1
|
|
3,677.4
|
|
|||||||||
6 to 9 Category
|
23.9
|
|
11.8
|
|
9.0
|
|
9.4
|
|
19.4
|
|
6.1
|
|
74.0
|
|
2.4
|
|
156.0
|
|
|||||||||
Total Commercial and Institutional
|
312.6
|
|
1,467.9
|
|
719.9
|
|
745.8
|
|
672.6
|
|
719.1
|
|
7,631.0
|
|
58.4
|
|
12,327.3
|
|
|||||||||
Commercial Real Estate
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Risk Rating:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
1 to 3 Category
|
121.0
|
|
285.9
|
|
100.5
|
|
61.2
|
|
100.5
|
|
170.7
|
|
106.6
|
|
6.1
|
|
952.5
|
|
|||||||||
4 to 5 Category
|
166.3
|
|
749.8
|
|
343.9
|
|
154.3
|
|
168.0
|
|
454.2
|
|
66.0
|
|
20.1
|
|
2,122.6
|
|
|||||||||
6 to 9 Category
|
2.2
|
|
—
|
|
—
|
|
4.4
|
|
3.0
|
|
0.5
|
|
—
|
|
—
|
|
10.1
|
|
|||||||||
Total Commercial Real Estate
|
289.5
|
|
1,035.7
|
|
444.4
|
|
219.9
|
|
271.5
|
|
625.4
|
|
172.6
|
|
26.2
|
|
3,085.2
|
|
|||||||||
Non-U.S.
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Risk Rating:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
1 to 3 Category
|
2,488.3
|
|
12.2
|
|
10.0
|
|
5.6
|
|
—
|
|
13.5
|
|
169.1
|
|
—
|
|
2,698.7
|
|
|||||||||
4 to 5 Category
|
905.6
|
|
5.9
|
|
1.9
|
|
6.7
|
|
—
|
|
70.9
|
|
38.6
|
|
1.8
|
|
1,031.4
|
|
|||||||||
6 to 9 Category
|
1.4
|
|
23.1
|
|
—
|
|
—
|
|
—
|
|
—
|
|
168.4
|
|
—
|
|
192.9
|
|
|||||||||
Total Non-U.S.
|
3,395.3
|
|
41.2
|
|
11.9
|
|
12.3
|
|
—
|
|
84.4
|
|
376.1
|
|
1.8
|
|
3,923.0
|
|
|||||||||
Lease Financing, net
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Risk Rating:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
1 to 3 Category
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
52.8
|
|
—
|
|
—
|
|
52.8
|
|
|||||||||
4 to 5 Category
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
12.0
|
|
—
|
|
—
|
|
12.0
|
|
|||||||||
6 to 9 Category
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Total Lease Financing, net
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
64.8
|
|
—
|
|
—
|
|
64.8
|
|
|||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Risk Rating:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
1 to 3 Category
|
117.4
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
117.4
|
|
|||||||||
4 to 5 Category
|
219.1
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
219.1
|
|
|||||||||
6 to 9 Category
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Total Other
|
336.5
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
336.5
|
|
|||||||||
Total Commercial
|
4,333.9
|
|
2,544.8
|
|
1,176.2
|
|
978.0
|
|
944.1
|
|
1,493.7
|
|
8,179.7
|
|
86.4
|
|
19,736.8
|
|
|||||||||
Personal
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Private Client
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Risk Rating:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
1 to 3 Category
|
131.1
|
|
486.6
|
|
75.1
|
|
126.9
|
|
38.9
|
|
150.2
|
|
4,965.0
|
|
20.9
|
|
5,994.7
|
|
|||||||||
4 to 5 Category
|
50.4
|
|
531.2
|
|
259.6
|
|
171.5
|
|
97.5
|
|
103.7
|
|
4,076.9
|
|
243.2
|
|
5,534.0
|
|
|||||||||
6 to 9 Category
|
—
|
|
0.6
|
|
23.2
|
|
—
|
|
0.1
|
|
—
|
|
47.0
|
|
10.3
|
|
81.2
|
|
|||||||||
Total Private Client
|
181.5
|
|
1,018.4
|
|
357.9
|
|
298.4
|
|
136.5
|
|
253.9
|
|
9,088.9
|
|
274.4
|
|
11,609.9
|
|
|||||||||
Residential Real Estate
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Risk Rating:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
1 to 3 Category
|
222.8
|
|
801.7
|
|
112.6
|
|
156.3
|
|
244.7
|
|
942.8
|
|
228.8
|
|
1.3
|
|
2,711.0
|
|
|||||||||
4 to 5 Category
|
122.4
|
|
441.7
|
|
229.0
|
|
248.9
|
|
417.5
|
|
1,397.2
|
|
330.8
|
|
4.0
|
|
3,191.5
|
|
|||||||||
6 to 9 Category
|
0.3
|
|
11.3
|
|
10.4
|
|
0.6
|
|
3.0
|
|
124.2
|
|
22.0
|
|
—
|
|
171.8
|
|
|||||||||
Total Residential Real Estate
|
345.5
|
|
1,254.7
|
|
352.0
|
|
405.8
|
|
665.2
|
|
2,464.2
|
|
581.6
|
|
5.3
|
|
6,074.3
|
|
|||||||||
Non-U.S.
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Risk Rating:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
1 to 3 Category
|
2.2
|
|
41.5
|
|
—
|
|
—
|
|
—
|
|
2.0
|
|
58.4
|
|
—
|
|
104.1
|
|
|||||||||
4 to 5 Category
|
—
|
|
19.1
|
|
14.0
|
|
0.6
|
|
0.5
|
|
9.6
|
|
193.0
|
|
5.1
|
|
241.9
|
|
|||||||||
6 to 9 Category
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
0.6
|
|
0.3
|
|
—
|
|
0.9
|
|
|||||||||
Total Non-U.S.
|
2.2
|
|
60.6
|
|
14.0
|
|
0.6
|
|
0.5
|
|
12.2
|
|
251.7
|
|
5.1
|
|
346.9
|
|
|||||||||
Other
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Risk Rating:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
1 to 3 Category
|
36.5
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
36.5
|
|
|||||||||
4 to 5 Category
|
33.3
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
33.3
|
|
|||||||||
6 to 9 Category
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Total Other
|
69.8
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
69.8
|
|
|||||||||
Total Personal
|
599.0
|
|
2,333.7
|
|
723.9
|
|
704.8
|
|
802.2
|
|
2,730.3
|
|
9,922.2
|
|
284.8
|
|
18,100.9
|
|
|||||||||
Total Loans and Leases
|
$
|
4,932.9
|
|
$
|
4,878.5
|
|
$
|
1,900.1
|
|
$
|
1,682.8
|
|
$
|
1,746.3
|
|
$
|
4,224.0
|
|
$
|
18,101.9
|
|
$
|
371.2
|
|
$
|
37,837.7
|
|
|
ACCRUAL
|
|
|
NONACCRUAL WITH NO ALLOWANCE
|
|
|||||||||||||||||||
(In Millions)
|
CURRENT
|
|
30 – 59 DAYS
PAST DUE
|
|
60 – 89 DAYS
PAST DUE
|
|
90 DAYS
OR MORE
PAST DUE
|
|
TOTAL ACCRUAL
|
|
NONACCRUAL
|
|
TOTAL LOANS
AND LEASES
|
|
||||||||||
March 31, 2020
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial and Institutional
|
$
|
12,216.7
|
|
$
|
71.3
|
|
$
|
5.4
|
|
$
|
1.0
|
|
$
|
12,294.4
|
|
$
|
32.9
|
|
$
|
12,327.3
|
|
$
|
17.9
|
|
Commercial Real Estate
|
3,069.3
|
|
8.5
|
|
—
|
|
4.7
|
|
3,082.5
|
|
2.7
|
|
3,085.2
|
|
2.7
|
|
||||||||
Non-U.S.
|
3,923.0
|
|
—
|
|
—
|
|
—
|
|
3,923.0
|
|
—
|
|
3,923.0
|
|
—
|
|
||||||||
Lease Financing, net
|
64.8
|
|
—
|
|
—
|
|
—
|
|
64.8
|
|
—
|
|
64.8
|
|
—
|
|
||||||||
Other
|
336.5
|
|
—
|
|
—
|
|
—
|
|
336.5
|
|
—
|
|
336.5
|
|
—
|
|
||||||||
Total Commercial
|
19,610.3
|
|
79.8
|
|
5.4
|
|
5.7
|
|
19,701.2
|
|
35.6
|
|
19,736.8
|
|
20.6
|
|
||||||||
Personal
|
|
|
|
|
|
|
|
|
||||||||||||||||
Private Client
|
11,522.5
|
|
77.3
|
|
8.4
|
|
1.2
|
|
11,609.4
|
|
0.5
|
|
11,609.9
|
|
0.5
|
|
||||||||
Residential Real Estate
|
5,974.1
|
|
31.9
|
|
0.8
|
|
0.2
|
|
6,007.0
|
|
67.3
|
|
6,074.3
|
|
63.7
|
|
||||||||
Non-U.S.
|
341.3
|
|
5.1
|
|
—
|
|
—
|
|
346.4
|
|
0.5
|
|
346.9
|
|
0.5
|
|
||||||||
Other
|
69.8
|
|
—
|
|
—
|
|
—
|
|
69.8
|
|
—
|
|
69.8
|
|
—
|
|
||||||||
Total Personal
|
17,907.7
|
|
114.3
|
|
9.2
|
|
1.4
|
|
18,032.6
|
|
68.3
|
|
18,100.9
|
|
64.7
|
|
||||||||
Total Loans and Leases
|
$
|
37,518.0
|
|
$
|
194.1
|
|
$
|
14.6
|
|
$
|
7.1
|
|
$
|
37,733.8
|
|
$
|
103.9
|
|
$
|
37,837.7
|
|
$
|
85.3
|
|
|
Other Real Estate Owned
|
|
$
|
1.6
|
|
|
|
|||||||||||||||||
|
Total Nonaccrual Assets
|
|
$
|
105.5
|
|
|
|
|
ACCRUAL
|
|
|
NONACCRUAL WITH NO ALLOWANCE
|
|
|||||||||||||||||||
(In Millions)
|
CURRENT
|
|
30 – 59 DAYS
PAST DUE |
|
60 – 89 DAYS
PAST DUE |
|
90 DAYS
OR MORE PAST DUE |
|
TOTAL ACCRUAL
|
|
NONACCRUAL
|
|
TOTAL LOANS
AND LEASES |
|
||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial and Institutional
|
$
|
9,068.3
|
|
$
|
4.1
|
|
$
|
9.9
|
|
$
|
1.2
|
|
$
|
9,083.5
|
|
$
|
7.6
|
|
$
|
9,091.1
|
|
$
|
0.8
|
|
Commercial Real Estate
|
3,089.6
|
|
2.3
|
|
4.1
|
|
4.7
|
|
3,100.7
|
|
3.6
|
|
3,104.3
|
|
2.4
|
|
||||||||
Non-U.S.
|
1,576.3
|
|
—
|
|
—
|
|
—
|
|
1,576.3
|
|
—
|
|
1,576.3
|
|
—
|
|
||||||||
Lease Financing, net
|
65.6
|
|
—
|
|
—
|
|
—
|
|
65.6
|
|
—
|
|
65.6
|
|
—
|
|
||||||||
Other
|
164.0
|
|
—
|
|
—
|
|
—
|
|
164.0
|
|
—
|
|
164.0
|
|
—
|
|
||||||||
Total Commercial
|
13,963.8
|
|
6.4
|
|
14.0
|
|
5.9
|
|
13,990.1
|
|
11.2
|
|
14,001.3
|
|
3.2
|
|
||||||||
Personal
|
|
|
|
|
|
|
|
|
||||||||||||||||
Private Client
|
11,027.9
|
|
33.2
|
|
9.5
|
|
0.3
|
|
11,070.9
|
|
0.5
|
|
11,071.4
|
|
0.5
|
|
||||||||
Residential Real Estate
|
5,997.7
|
|
19.8
|
|
4.9
|
|
1.2
|
|
6,023.6
|
|
71.4
|
|
6,095.0
|
|
66.4
|
|
||||||||
Non-U.S
|
174.1
|
|
0.2
|
|
—
|
|
—
|
|
174.3
|
|
0.5
|
|
174.8
|
|
0.5
|
|
||||||||
Other
|
67.1
|
|
—
|
|
—
|
|
—
|
|
67.1
|
|
—
|
|
67.1
|
|
—
|
|
||||||||
Total Personal
|
17,266.8
|
|
53.2
|
|
14.4
|
|
1.5
|
|
17,335.9
|
|
72.4
|
|
17,408.3
|
|
67.4
|
|
||||||||
Total Loans and Leases
|
$
|
31,230.6
|
|
$
|
59.6
|
|
$
|
28.4
|
|
$
|
7.4
|
|
$
|
31,326.0
|
|
$
|
83.6
|
|
$
|
31,409.6
|
|
$
|
70.6
|
|
|
Other Real Estate Owned
|
|
$
|
3.2
|
|
|
|
|||||||||||||||||
|
Total Nonaccrual Assets
|
|
$
|
86.8
|
|
|
|
|
THREE MONTHS ENDED MARCH 31, 2020
|
|||||||
($ In Millions)
|
NUMBER OF
LOANS AND
LEASES
|
|
RECORDED
INVESTMENT
|
|
UNPAID
PRINCIPAL
BALANCE
|
|
||
Commercial
|
|
|
|
|||||
Commercial and Institutional
|
2
|
|
$
|
24.3
|
|
$
|
24.5
|
|
Total Commercial
|
2
|
|
24.3
|
|
24.5
|
|
||
Personal
|
|
|
|
|||||
Residential Real Estate
|
6
|
|
1.0
|
|
1.2
|
|
||
Total Personal
|
6
|
|
1.0
|
|
1.2
|
|
||
Total Loans and Leases
|
8
|
|
$
|
25.3
|
|
$
|
25.7
|
|
|
THREE MONTHS ENDED MARCH 31, 2019
|
|||||||
($ In Millions)
|
NUMBER OF
LOANS AND
LEASES
|
|
RECORDED
INVESTMENT
|
|
UNPAID
PRINCIPAL
BALANCE
|
|
||
Commercial
|
|
|
|
|||||
Commercial and Institutional
|
1
|
|
$
|
7.6
|
|
$
|
8.8
|
|
Total Commercial
|
1
|
|
7.6
|
|
8.8
|
|
||
Personal
|
|
|
|
|||||
Residential Real Estate
|
13
|
|
9.8
|
|
9.9
|
|
||
Total Personal
|
13
|
|
9.8
|
|
9.9
|
|
||
Total Loans and Leases
|
14
|
|
$
|
17.4
|
|
$
|
18.7
|
|
|
THREE MONTHS ENDED MARCH 31,
|
||||||||||||||
|
2020
|
||||||||||||||
(In Millions)
|
LOANS AND LEASES
|
|
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
|
|
DEBT SECURITIES HELD TO MATURITY
|
|
OTHER FINANCIAL ASSETS
|
|
TOTAL
|
|
|||||
Balance at End of Prior Period
|
$
|
104.5
|
|
$
|
19.9
|
|
$
|
—
|
|
$
|
—
|
|
$
|
124.4
|
|
Cumulative Effect Adjustment
|
(2.2
|
)
|
8.9
|
|
6.6
|
|
0.4
|
|
13.7
|
|
|||||
Balance at Beginning of Period
|
102.3
|
|
28.8
|
|
6.6
|
|
0.4
|
|
138.1
|
|
|||||
Charge-Offs
|
(1.8
|
)
|
—
|
|
—
|
|
—
|
|
(1.8
|
)
|
|||||
Recoveries
|
1.1
|
|
—
|
|
—
|
|
—
|
|
1.1
|
|
|||||
Net (Charge-Offs) Recoveries
|
(0.7
|
)
|
—
|
|
—
|
|
—
|
|
(0.7
|
)
|
|||||
Provision for Credit Losses(1)
|
45.6
|
|
11.6
|
|
2.9
|
|
0.7
|
|
60.8
|
|
|||||
Balance at End of Period
|
$
|
147.2
|
|
$
|
40.4
|
|
$
|
9.5
|
|
$
|
1.1
|
|
$
|
198.2
|
|
|
THREE MONTHS ENDED MARCH 31,
|
||||||||||||||
|
2019
|
||||||||||||||
(In Millions)
|
LOANS AND LEASES
|
|
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
|
|
DEBT SECURITIES HELD TO MATURITY
|
|
OTHER FINANCIAL ASSETS
|
|
TOTAL
|
|
|||||
Balance at Beginning of Period
|
$
|
112.6
|
|
$
|
25.6
|
|
$
|
—
|
|
$
|
—
|
|
$
|
138.2
|
|
Charge-Offs
|
(1.0
|
)
|
—
|
|
—
|
|
—
|
|
(1.0
|
)
|
|||||
Recoveries
|
2.2
|
|
—
|
|
—
|
|
—
|
|
2.2
|
|
|||||
Net (Charge-Offs) Recoveries
|
1.2
|
|
—
|
|
—
|
|
—
|
|
1.2
|
|
|||||
Provision for Credit Losses
|
0.7
|
|
(0.7
|
)
|
—
|
|
—
|
|
—
|
|
|||||
Balance at End of Period
|
$
|
114.5
|
|
$
|
24.9
|
|
$
|
—
|
|
$
|
—
|
|
$
|
139.4
|
|
(In Millions)
|
MARCH 31, 2020
|
|
DECEMBER 31, 2019
|
|
||
Loans and Leases
|
$
|
82.7
|
|
$
|
84.5
|
|
Debt Securities
|
|
|
||||
Held to Maturity
|
$
|
74.3
|
|
$
|
82.3
|
|
Available for Sale
|
110.5
|
|
119.0
|
|
||
Other Financial Assets
|
$
|
7.8
|
|
$
|
14.7
|
|
|
THREE MONTHS ENDED MARCH 31,
|
||
(In Millions)
|
2020
|
||
Commercial
|
$
|
0.5
|
|
Personal
|
0.8
|
|
|
Total Loans and Leases
|
$
|
1.3
|
|
|
THREE MONTHS ENDED MARCH 31,
|
|||||||||||||||||
|
2020
|
|||||||||||||||||
|
LOANS AND LEASES
|
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
|
||||||||||||||||
(In Millions)
|
COMMERCIAL
|
|
PERSONAL
|
|
TOTAL
|
|
COMMERCIAL
|
|
PERSONAL
|
|
TOTAL
|
|
||||||
Balance at End of Prior Period
|
$
|
58.1
|
|
$
|
46.4
|
|
$
|
104.5
|
|
$
|
15.8
|
|
$
|
4.1
|
|
$
|
19.9
|
|
Cumulative Effect Adjustment
|
(5.9
|
)
|
3.7
|
|
(2.2
|
)
|
11.9
|
|
(3.0
|
)
|
8.9
|
|
||||||
Balance at Beginning of Period
|
52.2
|
|
50.1
|
|
102.3
|
|
27.7
|
|
1.1
|
|
28.8
|
|
||||||
Charge-Offs
|
(0.1
|
)
|
(1.7
|
)
|
(1.8
|
)
|
—
|
|
—
|
|
—
|
|
||||||
Recoveries
|
0.7
|
|
0.4
|
|
1.1
|
|
—
|
|
—
|
|
—
|
|
||||||
Net (Charge-Offs) Recoveries
|
0.6
|
|
(1.3
|
)
|
(0.7
|
)
|
—
|
|
—
|
|
—
|
|
||||||
Provision for Credit Losses
|
41.9
|
|
3.7
|
|
45.6
|
|
11.1
|
|
0.5
|
|
11.6
|
|
||||||
Balance at End of Period
|
$
|
94.7
|
|
$
|
52.5
|
|
$
|
147.2
|
|
$
|
38.8
|
|
$
|
1.6
|
|
$
|
40.4
|
|
|
THREE MONTHS ENDED MARCH 31,
|
|||||||||||||||||
|
2019
|
|||||||||||||||||
|
LOANS AND LEASES
|
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
|
||||||||||||||||
(In Millions)
|
COMMERCIAL
|
|
PERSONAL
|
|
TOTAL
|
|
COMMERCIAL
|
|
PERSONAL
|
|
TOTAL
|
|
||||||
Balance at Beginning of Period
|
$
|
57.6
|
|
$
|
55.0
|
|
$
|
112.6
|
|
$
|
21.1
|
|
$
|
4.5
|
|
$
|
25.6
|
|
Charge-Offs
|
(0.1
|
)
|
(0.9
|
)
|
(1.0
|
)
|
—
|
|
—
|
|
—
|
|
||||||
Recoveries
|
0.4
|
|
1.8
|
|
2.2
|
|
—
|
|
—
|
|
—
|
|
||||||
Net (Charge-Offs) Recoveries
|
0.3
|
|
0.9
|
|
1.2
|
|
—
|
|
—
|
|
—
|
|
||||||
Provision for Credit Losses
|
0.2
|
|
0.5
|
|
0.7
|
|
(0.6
|
)
|
(0.1
|
)
|
(0.7
|
)
|
||||||
Balance at End of Period
|
$
|
58.1
|
|
$
|
56.4
|
|
$
|
114.5
|
|
$
|
20.5
|
|
$
|
4.4
|
|
$
|
24.9
|
|
|
|
|
|
|
|
|
|
MARCH 31, 2020
|
DECEMBER 31, 2019
|
||||||||||||||||
(In Millions)
|
COMMERCIAL
|
|
PERSONAL
|
|
TOTAL
|
|
COMMERCIAL
|
|
PERSONAL
|
|
TOTAL
|
|
||||||
Loans and Leases
|
|
|
|
|
|
|
||||||||||||
Evaluated on an Individual Level
|
$
|
35.6
|
|
$
|
68.3
|
|
$
|
103.9
|
|
$
|
10.4
|
|
$
|
81.8
|
|
$
|
92.2
|
|
Evaluated on a Collective Level
|
19,701.2
|
|
18,032.6
|
|
37,733.8
|
|
13,990.9
|
|
17,326.5
|
|
31,317.4
|
|
||||||
Total Loans and Leases
|
19,736.8
|
|
18,100.9
|
|
37,837.7
|
|
14,001.3
|
|
17,408.3
|
|
31,409.6
|
|
||||||
Allowance for Credit Losses on Credit Exposures
|
|
|
|
|
|
|
||||||||||||
Evaluated on an Individual Level
|
5.3
|
|
0.4
|
|
5.7
|
|
3.4
|
|
1.6
|
|
5.0
|
|
||||||
Evaluated on a Collective Level
|
89.4
|
|
52.1
|
|
141.5
|
|
54.7
|
|
44.8
|
|
99.5
|
|
||||||
Allowance Assigned to Loans and Leases
|
94.7
|
|
52.5
|
|
147.2
|
|
58.1
|
|
46.4
|
|
104.5
|
|
||||||
Allowance for Undrawn Loan Commitments and Standby Letters of Credit
|
|
|
|
|
|
|
||||||||||||
Evaluated on an Individual Level
|
3.0
|
|
—
|
|
3.0
|
|
1.9
|
|
—
|
|
1.9
|
|
||||||
Evaluated on a Collective Level
|
35.8
|
|
1.6
|
|
37.4
|
|
13.9
|
|
4.1
|
|
18.0
|
|
||||||
Allowance Assigned to Undrawn Loan Commitments and Standby Letters of Credit
|
38.8
|
|
1.6
|
|
40.4
|
|
15.8
|
|
4.1
|
|
19.9
|
|
||||||
Total Allowance Assigned to Loans and Leases and Undrawn Loan Commitments and Standby Letters of Credit
|
$
|
133.5
|
|
$
|
54.1
|
|
$
|
187.6
|
|
$
|
73.9
|
|
$
|
50.5
|
|
$
|
124.4
|
|
|
THREE MONTHS ENDED MARCH 31,
|
||||||||||||||||||||
|
2020
|
||||||||||||||||||||
(In Millions)
|
CORPORATE DEBT
|
|
NON-U.S. GOVERNMENT
|
|
SUB-SOVEREIGN, SUPERNATIONAL, AND NON-U.S. AGENCY BONDS
|
|
CERTIFICATE OF DEPOSITS
|
|
COVERED BONDS
|
|
OTHER
|
|
TOTAL
|
|
|||||||
Balance at End of Prior Period
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Cumulative Effect Adjustment
|
0.8
|
|
0.3
|
|
0.9
|
|
—
|
|
—
|
|
4.6
|
|
6.6
|
|
|||||||
Balance at Beginning of Period
|
0.8
|
|
0.3
|
|
0.9
|
|
—
|
|
—
|
|
4.6
|
|
6.6
|
|
|||||||
Charge-Offs
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Recoveries
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Net (Charge-Offs) Recoveries
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Provision for Credit Losses
|
1.9
|
|
0.1
|
|
0.4
|
|
0.2
|
|
0.1
|
|
0.2
|
|
2.9
|
|
|||||||
Balance at End of Period
|
$
|
2.7
|
|
$
|
0.4
|
|
$
|
1.3
|
|
$
|
0.2
|
|
$
|
0.1
|
|
$
|
4.8
|
|
$
|
9.5
|
|
•
|
Debt securities held to maturity classified as U.S. government, government sponsored agency, and certain securities classified as obligations of states and political subdivisions are considered to be guarantees of the U.S. government or an agency of the U.S. government and therefore an allowance for credit losses is not estimated for such investments as the expected probability of non-payment of the amortized cost basis is zero.
|
•
|
Debt securities held to maturity classified as other asset-backed represent pools of underlying receivables from which the cash flows are used to pay the bonds that vary in seniority. Utilizing a qualitative estimation approach, the allowance for other asset-backed securities is assessed by evaluating underlying pool performance based on delinquency rates and available credit support.
|
•
|
Debt securities held to maturity classified as other relates to investments purchased by Northern Trust to fulfill its obligations under the Community Reinvestment Act (CRA). Northern Trust fulfills its obligations under the CRA by making qualified investments for purposes of supporting institutions and programs that benefit low-to-moderate income communities within Northern Trust’s market area. The allowance for CRA investments is assessed using a qualitative estimation approach primarily based on internal historical performance experience and default history of the underlying CRA portfolios to determine a quantitative component of the allowance.
|
(In Billions)
|
MARCH 31, 2020
|
|
DECEMBER 31, 2019
|
|
||
Securities
|
|
|
||||
Obligations of States and Political Subdivisions
|
$
|
1.3
|
|
$
|
1.0
|
|
Government Sponsored Agency and Other Securities
|
31.0
|
|
33.4
|
|
||
Loans
|
7.4
|
|
7.7
|
|
||
Total Pledged Assets
|
$
|
39.7
|
|
$
|
42.1
|
|
|
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE
|
DERIVATIVE CONTRACTS
|
||||||||||
(In Millions)
|
MARCH 31, 2020
|
|
DECEMBER 31, 2019
|
|
MARCH 31, 2020
|
|
DECEMBER 31, 2019
|
|
||||
Debt Securities
|
|
|
|
|
||||||||
Available for Sale
|
$
|
30.4
|
|
$
|
487.1
|
|
$
|
58.3
|
|
$
|
14.4
|
|
(In Millions)
|
MARCH 31, 2020
|
|
DECEMBER 31, 2019
|
|
||
Collateral that may be repledged or sold
|
|
|
||||
Repurchase agreements
|
$
|
998.2
|
|
$
|
707.8
|
|
Derivative contracts
|
34.6
|
|
16.8
|
|
||
|
|
|
||||
Collateral that may not be repledged or sold
|
|
|
||||
Repurchase agreements
|
—
|
|
—
|
|
(In Millions)
|
CORPORATE AND INSTITUTIONAL SERVICES
|
WEALTH MANAGEMENT
|
TOTAL
|
||||||
Balance at December 31, 2019
|
$
|
625.7
|
|
$
|
71.1
|
|
$
|
696.8
|
|
Foreign Exchange Rates
|
(7.4
|
)
|
(0.1
|
)
|
(7.5
|
)
|
|||
Balance at March 31, 2020
|
$
|
618.3
|
|
$
|
71.0
|
|
$
|
689.3
|
|
(In Millions)
|
MARCH 31, 2020
|
DECEMBER 31, 2019
|
||||
Gross Carrying Amount
|
$
|
204.3
|
|
$
|
207.2
|
|
Less: Accumulated Amortization
|
89.7
|
|
86.6
|
|
||
Net Book Value
|
$
|
114.6
|
|
$
|
120.6
|
|
THREE MONTHS ENDED MARCH 31,
|
CORPORATE &
INSTITUTIONAL SERVICES |
WEALTH MANAGEMENT
|
TREASURY AND OTHER
|
TOTAL CONSOLIDATED
|
||||||||||||||||||||
($ In Millions)
|
2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
||||||||||||||||
Noninterest Income
|
|
|
|
|
|
|
|
|
||||||||||||||||
Trust, Investment and Other Servicing Fees
|
$
|
574.4
|
|
$
|
535.2
|
|
$
|
429.2
|
|
$
|
393.7
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,003.6
|
|
$
|
928.9
|
|
Foreign Exchange Trading Income
|
85.1
|
|
59.7
|
|
3.8
|
|
6.5
|
|
—
|
|
—
|
|
88.9
|
|
66.2
|
|
||||||||
Other Noninterest Income
|
41.8
|
|
43.4
|
|
42.4
|
|
25.5
|
|
2.9
|
|
(5.1
|
)
|
87.1
|
|
63.8
|
|
||||||||
Total Noninterest Income
|
701.3
|
|
638.3
|
|
475.4
|
|
425.7
|
|
2.9
|
|
(5.1
|
)
|
1,179.6
|
|
1,058.9
|
|
||||||||
Net Interest Income (1)
|
211.3
|
|
234.8
|
|
204.9
|
|
195.0
|
|
—
|
|
—
|
|
416.2
|
|
429.8
|
|
||||||||
Revenue (1)
|
912.6
|
|
873.1
|
|
680.3
|
|
620.7
|
|
2.9
|
|
(5.1
|
)
|
1,595.8
|
|
1,488.7
|
|
||||||||
Provision for Credit Losses
|
25.7
|
|
(1.1
|
)
|
35.3
|
|
1.1
|
|
—
|
|
—
|
|
61.0
|
|
—
|
|
||||||||
Noninterest Expense
|
659.3
|
|
648.0
|
|
394.4
|
|
379.9
|
|
11.9
|
|
0.8
|
|
1,065.6
|
|
1,028.7
|
|
||||||||
Income before Income Taxes (1)
|
227.6
|
|
226.2
|
|
250.6
|
|
239.7
|
|
(9.0
|
)
|
(5.9
|
)
|
469.2
|
|
460.0
|
|
||||||||
Provision for Income Taxes (1)
|
49.9
|
|
53.6
|
|
60.9
|
|
60.8
|
|
(2.2
|
)
|
(1.5
|
)
|
108.6
|
|
112.9
|
|
||||||||
Net Income
|
$
|
177.7
|
|
$
|
172.6
|
|
$
|
189.7
|
|
$
|
178.9
|
|
$
|
(6.8
|
)
|
$
|
(4.4
|
)
|
$
|
360.6
|
|
$
|
347.1
|
|
Percentage of Consolidated Net Income
|
49
|
%
|
50
|
%
|
53
|
%
|
51
|
%
|
(2
|
)%
|
(1
|
)%
|
100
|
%
|
100
|
%
|
||||||||
Average Assets
|
$
|
92,715.3
|
|
$
|
90,351.7
|
|
$
|
31,455.2
|
|
$
|
29,065.0
|
|
$
|
—
|
|
$
|
—
|
|
$
|
124,170.5
|
|
$
|
119,416.7
|
|
(1)
|
Non-GAAP financial measures stated on a fully taxable equivalent basis (FTE). Total consolidated includes FTE adjustments of $8.1 million for 2020 and $7.8 million for 2019.
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED MARCH 31, 2020
|
||||||||||||||
(In Millions)
|
NET UNREALIZED GAINS (LOSSES) ON DEBT SECURITIES AVAILABLE FOR SALE (1)
|
|
NET UNREALIZED (LOSSES) GAINS ON CASH FLOW HEDGES
|
|
NET FOREIGN CURRENCY ADJUSTMENT
|
|
NET PENSION AND OTHER POSTRETIREMENT BENEFIT ADJUSTMENTS
|
|
TOTAL
|
|
|||||
Balance at December 31, 2019
|
$
|
114.0
|
|
$
|
(3.7
|
)
|
$
|
117.8
|
|
$
|
(422.8
|
)
|
$
|
(194.7
|
)
|
Net Change
|
199.7
|
|
7.3
|
|
25.7
|
|
7.0
|
|
239.7
|
|
|||||
Balance at March 31, 2020
|
$
|
313.7
|
|
$
|
3.6
|
|
$
|
143.5
|
|
$
|
(415.8
|
)
|
$
|
45.0
|
|
|
THREE MONTHS ENDED MARCH 31, 2019
|
||||||||||||||
(In Millions)
|
NET UNREALIZED GAINS (LOSSES) ON DEBT SECURITIES AVAILABLE FOR SALE (1)
|
|
NET UNREALIZED (LOSSES) GAINS ON CASH FLOW HEDGES
|
|
NET FOREIGN CURRENCY ADJUSTMENT
|
|
NET PENSION AND OTHER POSTRETIREMENT BENEFIT ADJUSTMENTS
|
|
TOTAL
|
|
|||||
Balance at December 31, 2018
|
$
|
(114.9
|
)
|
$
|
4.0
|
|
$
|
67.9
|
|
$
|
(410.7
|
)
|
$
|
(453.7
|
)
|
Net Change
|
85.6
|
|
(4.3
|
)
|
14.8
|
|
12.3
|
|
108.4
|
|
|||||
Balance at March 31, 2019
|
$
|
(29.3
|
)
|
$
|
(0.3
|
)
|
$
|
82.7
|
|
$
|
(398.4
|
)
|
$
|
(345.3
|
)
|
|
THREE MONTHS ENDED MARCH 31,
|
|||||||||||||||||
|
2020
|
2019
|
||||||||||||||||
(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
|
$
|
266.8
|
|
$
|
(67.1
|
)
|
$
|
199.7
|
|
$
|
115.3
|
|
$
|
(29.9
|
)
|
$
|
85.4
|
|
Reclassification Adjustment for (Gains) Losses Included in Net Income (1)
|
—
|
|
—
|
|
—
|
|
0.2
|
|
—
|
|
0.2
|
|
||||||
Net Change
|
$
|
266.8
|
|
$
|
(67.1
|
)
|
$
|
199.7
|
|
$
|
115.5
|
|
$
|
(29.9
|
)
|
$
|
85.6
|
|
Unrealized Gains (Losses) on Cash Flow Hedges
|
|
|
|
|
|
|
||||||||||||
Foreign Exchange Contracts
|
$
|
13.3
|
|
$
|
(3.3
|
)
|
$
|
10.0
|
|
$
|
7.2
|
|
$
|
(1.7
|
)
|
$
|
5.5
|
|
Interest Rate Contracts
|
0.4
|
|
(0.1
|
)
|
0.3
|
|
0.6
|
|
(0.2
|
)
|
0.4
|
|
||||||
Reclassification Adjustment for (Gains) Losses Included in Net Income (2)
|
(4.0
|
)
|
1.0
|
|
(3.0
|
)
|
(13.6
|
)
|
3.4
|
|
(10.2
|
)
|
||||||
Net Change
|
$
|
9.7
|
|
$
|
(2.4
|
)
|
$
|
7.3
|
|
$
|
(5.8
|
)
|
$
|
1.5
|
|
$
|
(4.3
|
)
|
Foreign Currency Adjustments
|
|
|
|
|
|
|
||||||||||||
Foreign Currency Translation Adjustments
|
$
|
(89.8
|
)
|
$
|
9.6
|
|
$
|
(80.2
|
)
|
$
|
(6.5
|
)
|
$
|
1.6
|
|
$
|
(4.9
|
)
|
Long-Term Intra-Entity Foreign Currency Transaction Gains (Losses)
|
(0.6
|
)
|
0.1
|
|
(0.5
|
)
|
0.7
|
|
(0.2
|
)
|
0.5
|
|
||||||
Net Investment Hedge Gains (Losses)
|
142.7
|
|
(36.3
|
)
|
106.4
|
|
28.6
|
|
(9.4
|
)
|
19.2
|
|
||||||
Net Change
|
$
|
52.3
|
|
$
|
(26.6
|
)
|
$
|
25.7
|
|
$
|
22.8
|
|
$
|
(8.0
|
)
|
$
|
14.8
|
|
Pension and Other Postretirement Benefit Adjustments
|
|
|
|
|
|
|
||||||||||||
Net Actuarial (Losses) Gains
|
$
|
(1.3
|
)
|
$
|
0.1
|
|
$
|
(1.2
|
)
|
$
|
11.3
|
|
$
|
(3.1
|
)
|
$
|
8.2
|
|
Reclassification Adjustment for (Gains) Losses Included in Net Income (3)
|
|
|
|
|
|
|
||||||||||||
Amortization of Net Actuarial Loss
|
10.9
|
|
(2.6
|
)
|
8.3
|
|
5.5
|
|
(1.3
|
)
|
4.2
|
|
||||||
Amortization of Prior Service Cost
|
(0.1
|
)
|
—
|
|
(0.1
|
)
|
(0.1
|
)
|
—
|
|
(0.1
|
)
|
||||||
Net Change
|
$
|
9.5
|
|
$
|
(2.5
|
)
|
$
|
7.0
|
|
$
|
16.7
|
|
$
|
(4.4
|
)
|
$
|
12.3
|
|
Total Net Change
|
$
|
338.3
|
|
$
|
(98.6
|
)
|
$
|
239.7
|
|
$
|
149.2
|
|
$
|
(40.8
|
)
|
$
|
108.4
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED MARCH 31,
|
|||||
($ In Millions Except Per Common Share Information)
|
2020
|
|
2019
|
|
||
Basic Net Income Per Common Share
|
|
|
||||
Average Number of Common Shares Outstanding
|
208,881,131
|
|
218,236,802
|
|
||
Net Income
|
$
|
360.6
|
|
$
|
347.1
|
|
Less: Dividends on Preferred Stock
|
30.5
|
|
17.3
|
|
||
Net Income Applicable to Common Stock
|
330.1
|
|
329.8
|
|
||
Less: Earnings Allocated to Participating Securities
|
3.9
|
|
4.3
|
|
||
Earnings Allocated to Common Shares Outstanding
|
326.2
|
|
325.5
|
|
||
Basic Net Income Per Common Share
|
$
|
1.56
|
|
$
|
1.49
|
|
Diluted Net Income Per Common Share
|
|
|
||||
Average Number of Common Shares Outstanding
|
208,881,131
|
|
218,236,802
|
|
||
Plus: Dilutive Effect of Share-based Compensation
|
935,691
|
|
1,033,413
|
|
||
Average Common and Potential Common Shares
|
209,816,822
|
|
219,270,215
|
|
||
Earnings Allocated to Common and Potential Common Shares
|
$
|
326.2
|
|
$
|
325.4
|
|
Diluted Net Income Per Common Share
|
1.55
|
|
1.48
|
|
Note:
|
For the three months ended March 31, 2020 and 2019, there were no common stock equivalents excluded in the computation of diluted net income per share.
|
|
THREE MONTHS ENDED MARCH 31,
|
|||||
(In Millions)
|
2020
|
|
2019
|
|
||
Noninterest Income
|
|
|
||||
Trust, Investment and Other Servicing Fees
|
|
|
||||
Custody and Fund Administration
|
$
|
417.6
|
|
$
|
397.5
|
|
Investment Management and Advisory
|
510.5
|
|
459.2
|
|
||
Securities Lending
|
23.5
|
|
22.8
|
|
||
Other
|
52.0
|
|
49.4
|
|
||
Total Trust, Investment and Other Servicing Fees
|
$
|
1,003.6
|
|
$
|
928.9
|
|
Other Noninterest Income
|
|
|
||||
Foreign Exchange Trading Income
|
$
|
88.9
|
|
$
|
66.2
|
|
Treasury Management Fees
|
11.0
|
|
11.7
|
|
||
Security Commissions and Trading Income
|
41.7
|
|
23.3
|
|
||
Other Operating Income
|
34.4
|
|
29.0
|
|
||
Investment Security Gains (Losses), net
|
—
|
|
(0.2
|
)
|
||
Total Other Noninterest Income
|
$
|
176.0
|
|
$
|
130.0
|
|
Total Noninterest Income
|
$
|
1,179.6
|
|
$
|
1,058.9
|
|
(In Millions)
|
MARCH 31, 2020
|
DECEMBER 31, 2019
|
||||
Trust Fees Receivable, net(1)
|
$
|
819.5
|
|
$
|
801.9
|
|
Other
|
101.4
|
|
101.1
|
|
||
Total Client Receivables
|
$
|
920.9
|
|
$
|
903.0
|
|
|
THREE MONTHS ENDED MARCH 31,
|
|||||
(In Millions)
|
2020
|
2019
|
||||
Interest Income
|
|
|
||||
Loans and Leases
|
$
|
250.2
|
|
$
|
298.2
|
|
Securities — Taxable
|
241.1
|
|
277.5
|
|
||
— Non-Taxable
|
0.5
|
|
1.1
|
|
||
Interest-Bearing Due from and Deposits with Banks(1)
|
12.8
|
|
17.9
|
|
||
Federal Reserve and Other Central Bank Deposits and Other
|
24.6
|
|
68.1
|
|
||
Total Interest Income
|
$
|
529.2
|
|
$
|
662.8
|
|
Interest Expense
|
|
|
||||
Deposits
|
$
|
60.9
|
|
$
|
147.6
|
|
Federal Funds Purchased
|
2.0
|
|
13.4
|
|
||
Securities Sold Under Agreements to Repurchase
|
1.0
|
|
1.8
|
|
||
Other Borrowings
|
29.2
|
|
49.9
|
|
||
Senior Notes
|
17.9
|
|
15.9
|
|
||
Long-Term Debt
|
8.4
|
|
10.0
|
|
||
Floating Rate Capital Debt
|
1.7
|
|
2.2
|
|
||
Total Interest Expense
|
$
|
121.1
|
|
$
|
240.8
|
|
Net Interest Income
|
$
|
408.1
|
|
$
|
422.0
|
|
(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.
|
U.S. QUALIFIED PLAN
|
THREE MONTHS ENDED MARCH 31,
|
|||||
(In Millions)
|
2020
|
2019
|
||||
Service Cost
|
$
|
11.8
|
|
$
|
10.4
|
|
Interest Cost
|
10.8
|
|
11.8
|
|
||
Expected Return on Plan Assets
|
(19.2
|
)
|
(21.7
|
)
|
||
Amortization
|
|
|
||||
Net Actuarial Loss
|
8.8
|
|
4.3
|
|
||
Prior Service Cost
|
(0.1
|
)
|
(0.1
|
)
|
||
Net Periodic Pension Expense
|
$
|
12.1
|
|
$
|
4.7
|
|
NON-U.S. PENSION PLANS
|
THREE MONTHS ENDED MARCH 31,
|
|||||
(In Millions)
|
2020
|
2019
|
||||
Service Cost
|
$
|
0.5
|
|
$
|
0.5
|
|
Interest Cost
|
0.7
|
|
1.0
|
|
||
Expected Return on Plan Assets
|
(0.7
|
)
|
(1.0
|
)
|
||
Settlement Expense
|
0.2
|
|
—
|
|
||
Amortization
|
|
|
||||
Net Actuarial Loss
|
0.3
|
|
0.1
|
|
||
Net Periodic Pension Expense
|
$
|
1.0
|
|
$
|
0.6
|
|
U.S. NON-QUALIFIED PLAN
|
THREE MONTHS ENDED MARCH 31,
|
|||||
(In Millions)
|
2020
|
2019
|
||||
Service Cost
|
$
|
1.1
|
|
$
|
1.0
|
|
Interest Cost
|
1.2
|
|
1.5
|
|
||
Amortization
|
|
|
||||
Net Actuarial Loss
|
1.8
|
|
1.4
|
|
||
Prior Service Cost
|
—
|
|
—
|
|
||
Net Periodic Pension Expense
|
$
|
4.1
|
|
$
|
3.9
|
|
POSTRETIREMENT HEALTH CARE PLAN
|
THREE MONTHS ENDED MARCH 31,
|
|||||
(In Millions)
|
2020
|
2019
|
||||
Interest Cost
|
$
|
0.2
|
|
$
|
0.3
|
|
Amortization
|
|
|
||||
Net Actuarial (Gain)
|
(0.2
|
)
|
(0.3
|
)
|
||
Net Periodic Postretirement Expense
|
$
|
—
|
|
$
|
—
|
|
|
THREE MONTHS ENDED MARCH 31,
|
|||||
(In Millions)
|
2020
|
2019
|
||||
Restricted Stock Unit Awards
|
$
|
40.7
|
|
$
|
39.2
|
|
Stock Options
|
0.2
|
|
0.5
|
|
||
Performance Stock Units
|
12.9
|
|
15.6
|
|
||
Total Share-Based Compensation Expense
|
53.8
|
|
55.3
|
|
||
Tax Benefits Recognized
|
$
|
13.4
|
|
$
|
13.7
|
|
|
MARCH 31, 2020
|
DECEMBER 31, 2019
|
||||||||||||||||
|
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
|
$
|
4,527.2
|
|
$
|
12.5
|
|
$
|
18.3
|
|
$
|
4,538.2
|
|
$
|
20.3
|
|
$
|
20.9
|
|
Cash Flow Hedges
|
150.0
|
|
0.4
|
|
—
|
|
200.0
|
|
0.2
|
|
0.2
|
|
||||||
Foreign Exchange Contracts
|
|
|
|
|
|
|
||||||||||||
Cash Flow Hedges
|
1,544.2
|
|
35.8
|
|
14.9
|
|
1,661.5
|
|
8.5
|
|
11.5
|
|
||||||
Net Investment Hedges
|
2,773.3
|
|
110.8
|
|
0.5
|
|
2,873.8
|
|
73.7
|
|
11.9
|
|
||||||
Total Derivatives Designated as Hedging under GAAP
|
$
|
8,994.7
|
|
$
|
159.5
|
|
$
|
33.7
|
|
$
|
9,273.5
|
|
$
|
102.7
|
|
$
|
44.5
|
|
Derivatives Not Designated as Hedging under GAAP
|
|
|
|
|
|
|
||||||||||||
Non-Designated Risk Management Derivatives
|
|
|
|
|
|
|
||||||||||||
Foreign Exchange Contracts
|
$
|
195.0
|
|
$
|
2.7
|
|
$
|
1.9
|
|
$
|
176.5
|
|
$
|
0.9
|
|
$
|
0.7
|
|
Other Financial Derivatives (3)
|
550.6
|
|
—
|
|
26.5
|
|
640.3
|
|
—
|
|
33.4
|
|
||||||
Total Non-Designated Risk Management Derivatives
|
$
|
745.6
|
|
$
|
2.7
|
|
$
|
28.4
|
|
$
|
816.8
|
|
$
|
0.9
|
|
$
|
34.1
|
|
Client-Related and Trading Derivatives
|
|
|
|
|
|
|
||||||||||||
Foreign Exchange Contracts
|
$
|
293,879.0
|
|
$
|
5,786.1
|
|
$
|
5,746.1
|
|
$
|
291,533.6
|
|
$
|
3,151.7
|
|
$
|
3,158.1
|
|
Interest Rate Contracts
|
9,951.9
|
|
328.6
|
|
141.8
|
|
8,976.8
|
|
132.4
|
|
76.3
|
|
||||||
Total Client-Related and Trading Derivatives
|
$
|
303,830.9
|
|
$
|
6,114.7
|
|
$
|
5,887.9
|
|
$
|
300,510.4
|
|
$
|
3,284.1
|
|
$
|
3,234.4
|
|
Total Derivatives Not Designated as Hedging under GAAP
|
$
|
304,576.5
|
|
$
|
6,117.4
|
|
$
|
5,916.3
|
|
$
|
301,327.2
|
|
$
|
3,285.0
|
|
$
|
3,268.5
|
|
Total Gross Derivatives
|
$
|
313,571.2
|
|
$
|
6,276.9
|
|
$
|
5,950.0
|
|
$
|
310,600.7
|
|
$
|
3,387.7
|
|
$
|
3,313.0
|
|
Less: Netting (4)
|
|
2,065.8
|
|
4,890.2
|
|
|
2,338.0
|
|
1,618.4
|
|
||||||||
Total Derivative Financial Instruments
|
|
|
$
|
4,211.1
|
|
$
|
1,059.8
|
|
|
|
$
|
1,049.7
|
|
$
|
1,694.6
|
|
(1)
|
Derivative assets are reported in Other Assets on the consolidated balance sheets.
|
(2)
|
Derivative liabilities are reported in Other Liabilities on the consolidated balance sheets.
|
(3)
|
This line includes swaps related to sales of certain Visa Class B common shares.
|
(4)
|
See further detail in Note 22 — Offsetting of Assets and Liabilities.
|
(In Millions)
|
INTEREST INCOME
|
INTEREST EXPENSE
|
OTHER OPERATING INCOME
|
|||||||||||||||
THREE MONTHS ENDED MARCH 31,
|
2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
||||||||||||
Total amounts on the consolidated statements of income
|
$
|
529.2
|
|
$
|
662.8
|
|
$
|
121.1
|
|
$
|
240.8
|
|
$
|
34.4
|
|
$
|
29.0
|
|
Gains (Losses) on fair value hedges recognized on
|
|
|
|
|
|
|
||||||||||||
Interest Rate Contracts
|
|
|
|
|
|
|
||||||||||||
Recognized on derivatives
|
(76.0
|
)
|
(35.4
|
)
|
150.4
|
|
28.5
|
|
—
|
|
—
|
|
||||||
Recognized on hedged items
|
76.0
|
|
35.4
|
|
(150.4
|
)
|
(28.5
|
)
|
—
|
|
—
|
|
||||||
Amounts related to interest settlements on derivatives
|
(0.5
|
)
|
5.5
|
|
(2.9
|
)
|
(1.6
|
)
|
—
|
|
—
|
|
||||||
Total gains (losses) recognized on fair value hedges
|
$
|
(0.5
|
)
|
$
|
5.5
|
|
$
|
(2.9
|
)
|
$
|
(1.6
|
)
|
$
|
—
|
|
$
|
—
|
|
Gains (Losses) on cash flow hedges recognized on
|
|
|
|
|
|
|
||||||||||||
Foreign Exchange Contracts
|
|
|
|
|
|
|
||||||||||||
Net gains (losses) reclassified from AOCI to net income
|
$
|
4.1
|
|
$
|
14.4
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(0.1
|
)
|
$
|
(0.6
|
)
|
Interest Rate Contracts
|
|
|
|
|
|
|
||||||||||||
Net gains (losses) reclassified from AOCI to net income
|
—
|
|
(0.2
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Total gains (losses) reclassified from AOCI to net income on cash flow hedges
|
$
|
4.1
|
|
$
|
14.2
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(0.1
|
)
|
$
|
(0.6
|
)
|
|
|
|
|
|
|
|
|
MARCH 31, 2020
|
DECEMBER 31, 2019
|
||||||||||
(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)
|
$
|
2,999.2
|
|
$
|
75.7
|
|
$
|
2,981.0
|
|
$
|
3.3
|
|
Senior Notes and Long-Term Subordinated Debt
|
1,748.5
|
|
270.0
|
|
1,748.5
|
|
126.9
|
|
||||
Total
|
$
|
4,747.7
|
|
$
|
345.7
|
|
$
|
4,729.5
|
|
$
|
130.2
|
|
(1)
|
The cumulative hedge accounting basis adjustment includes $1.6 million related to discontinued hedging relationships of available for sale debt securities as of March 31, 2020. There are no amounts related to discontinued hedging relationships in the cumulative hedge accounting basis adjustment of senior notes and long-term debt as of March 31, 2020.
|
(2)
|
The cumulative hedge accounting basis adjustment includes $1.5 million related to discontinued hedging relationships of available for sale debt securities as of December 31, 2019. There were no amounts related to discontinued hedging relationships in the cumulative hedge accounting basis adjustment of senior notes and long-term debt as of December 31, 2019.
|
(3)
|
Carrying value represents amortized cost.
|
(In Millions)
|
DERIVATIVE GAINS (LOSSES) LOCATION RECOGNIZED IN INCOME
|
AMOUNT OF DERIVATIVE GAINS (LOSSES) RECOGNIZED IN INCOME
|
|||||
THREE MONTHS ENDED MARCH 31,
|
|||||||
2020
|
2019
|
||||||
Non-designated risk management derivatives
|
|
|
|
||||
Foreign Exchange Contracts
|
Other Operating Income
|
$
|
0.1
|
|
$
|
0.9
|
|
Other Financial Derivatives (1)
|
Other Operating Income
|
2.9
|
|
(7.3
|
)
|
||
Gains (Losses) from non-designated risk management derivatives
|
|
$
|
3.0
|
|
$
|
(6.4
|
)
|
Client-related and trading derivatives
|
|
|
|
||||
Foreign Exchange Contracts
|
Foreign Exchange Trading Income
|
$
|
88.9
|
|
$
|
66.2
|
|
Interest Rate Contracts
|
Security Commissions and Trading Income
|
11.0
|
|
1.5
|
|
||
Gains (Losses) from client-related and trading derivatives
|
|
$
|
99.9
|
|
$
|
67.7
|
|
Total gains (losses) from derivatives not designated as hedging under GAAP
|
|
$
|
102.9
|
|
$
|
61.3
|
|
(1)
|
This line includes swaps related to the sale of certain Visa Class B common shares and total return swap contracts.
|
|
MARCH 31, 2020
|
||||||||||||||
(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)
|
$
|
4,542.6
|
|
$
|
2,062.6
|
|
$
|
2,480.0
|
|
$
|
8.7
|
|
$
|
2,471.3
|
|
Interest Rate Swaps OTC
|
341.5
|
|
3.2
|
|
338.3
|
|
—
|
|
338.3
|
|
|||||
Total Derivatives Subject to a Master Netting Arrangement
|
4,884.1
|
|
2,065.8
|
|
2,818.3
|
|
8.7
|
|
2,809.6
|
|
|||||
Total Derivatives Not Subject to a Master Netting Arrangement
|
1,392.8
|
|
—
|
|
1,392.8
|
|
25.9
|
|
1,366.9
|
|
|||||
Total Derivatives
|
6,276.9
|
|
2,065.8
|
|
4,211.1
|
|
34.6
|
|
4,176.5
|
|
|||||
Securities Purchased under Agreements to Resell (3)
|
$
|
998.2
|
|
$
|
—
|
|
$
|
998.2
|
|
$
|
998.2
|
|
$
|
—
|
|
|
DECEMBER 31, 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 OTC
|
$
|
2,691.1
|
|
$
|
2,334.1
|
|
$
|
357.0
|
|
$
|
16.5
|
|
$
|
340.5
|
|
Interest Rate Swaps OTC
|
151.9
|
|
3.9
|
|
148.0
|
|
—
|
|
148.0
|
|
|||||
Interest Rate Swaps Exchange Cleared
|
1.0
|
|
—
|
|
1.0
|
|
—
|
|
1.0
|
|
|||||
Total Derivatives Subject to a Master Netting Arrangement
|
2,844.0
|
|
2,338.0
|
|
506.0
|
|
16.5
|
|
489.5
|
|
|||||
Total Derivatives Not Subject to a Master Netting Arrangement
|
543.7
|
|
—
|
|
543.7
|
|
0.3
|
|
543.4
|
|
|||||
Total Derivatives
|
3,387.7
|
|
2,338.0
|
|
1,049.7
|
|
16.8
|
|
1,032.9
|
|
|||||
Securities Purchased under Agreements to Resell (3)
|
$
|
707.8
|
|
$
|
—
|
|
$
|
707.8
|
|
$
|
707.8
|
|
$
|
—
|
|
(1)
|
Derivative assets are reported in Other Assets on the consolidated balance sheets. Other Assets (excluding derivative assets) totaled $7.6 billion and $7.4 billion as of March 31, 2020 and December 31, 2019, 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 on the consolidated balance sheets. There were no Federal Funds Sold as of March 31, 2020 and $5.0 million of Federal Funds Sold as of December 31, 2019.
|
(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 March 31, 2020 and December 31, 2019.
|
|
MARCH 31, 2020
|
||||||||||||||
(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
|
$
|
5,000.8
|
|
$
|
4,763.3
|
|
$
|
237.5
|
|
$
|
1.1
|
|
$
|
236.4
|
|
Interest Rate Swaps OTC
|
160.1
|
|
126.9
|
|
33.2
|
|
—
|
|
33.2
|
|
|||||
Other Financial Derivatives
|
26.5
|
|
—
|
|
26.5
|
|
—
|
|
26.5
|
|
|||||
Total Derivatives Subject to a Master Netting Arrangement
|
5,187.4
|
|
4,890.2
|
|
297.2
|
|
1.1
|
|
296.1
|
|
|||||
Total Derivatives Not Subject to a Master Netting Arrangement
|
762.6
|
|
—
|
|
762.6
|
|
—
|
|
762.6
|
|
|||||
Total Derivatives
|
5,950.0
|
|
4,890.2
|
|
1,059.8
|
|
1.1
|
|
1,058.7
|
|
|||||
Securities Sold under Agreements to Repurchase
|
$
|
34.1
|
|
$
|
—
|
|
$
|
34.1
|
|
$
|
34.1
|
|
$
|
—
|
|
|
DECEMBER 31, 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
|
$
|
2,181.6
|
|
$
|
1,548.6
|
|
$
|
633.0
|
|
$
|
0.1
|
|
$
|
632.9
|
|
Interest Rate Swaps OTC
|
96.7
|
|
57.3
|
|
39.4
|
|
—
|
|
39.4
|
|
|||||
Interest Rate Swaps Exchange Cleared
|
0.7
|
|
—
|
|
0.7
|
|
—
|
|
0.7
|
|
|||||
Other Financial Derivatives
|
33.4
|
|
12.5
|
|
20.9
|
|
—
|
|
20.9
|
|
|||||
Total Derivatives Subject to a Master Netting Arrangement
|
2,312.4
|
|
1,618.4
|
|
694.0
|
|
0.1
|
|
693.9
|
|
|||||
Total Derivatives Not Subject to a Master Netting Arrangement
|
1,000.6
|
|
—
|
|
1,000.6
|
|
—
|
|
1,000.6
|
|
|||||
Total Derivatives
|
3,313.0
|
|
1,618.4
|
|
1,694.6
|
|
0.1
|
|
1,694.5
|
|
|||||
Securities Sold under Agreements to Repurchase
|
$
|
489.7
|
|
$
|
—
|
|
$
|
489.7
|
|
$
|
489.7
|
|
$
|
—
|
|
(1)
|
Derivative liabilities are reported in Other Liabilities on the consolidated balance sheets. Other Liabilities (excluding derivative liabilities) totaled $3.8 billion and $3.1 billion as of March 31, 2020 and December 31, 2019, 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 March 31, 2020 and December 31, 2019.
|
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
|
|
|
January 1 - 31, 2020
|
714,783
|
|
$
|
104.25
|
|
714,783
|
|
8,516,740
|
|
February 1 - 29, 2020
|
916,878
|
|
95.49
|
|
916,878
|
|
7,599,862
|
|
|
March 1 - 31, 2020
|
1,112,215
|
|
76.68
|
|
1,112,215
|
|
6,487,647
|
|
|
Total (First Quarter)
|
2,743,876
|
|
$
|
90.15
|
|
2,743,876
|
|
6,487,647
|
|
(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:
|
April 27, 2020
|
By:
|
/s/ Jason J. Tyler
|
|
|
|
Jason J. Tyler
Executive Vice President and
Chief Financial Officer
(Duly Authorized Officer and Principal Financial Officer)
|
|
|
|
|
Date:
|
April 27, 2020
|
By:
|
/s/ Lauren Allnutt
|
|
|
|
Lauren Allnutt
Senior Vice President and Controller
(Principal Accounting Officer)
|
Average Annual Rate of Return on Equity
|
Less than 8.0%
|
8.0%
|
15.0%
|
≥ 18.5%
|
PSU Multiplier
|
0%
|
25%
|
100%
|
150%
|
(i)
|
The average annual rate of return on equity for the Performance Period attained by the Corporation is the return on average common equity, based on the Corporation’s net income, and shall be determined by the Committee in its sole and absolute discretion in accordance with generally accepted accounting principles (subject to the adjustments set forth below). For purposes of the foregoing, the average annual rate of return on equity shall be calculated as the simple average annual rate of return on equity for the three-year Performance Period measured across the Corporation as a whole.
|
(ii)
|
Notwithstanding anything herein to the contrary, for purposes of determining the average annual rate of return on equity for any individual fiscal year of the Corporation within the Performance Period, if any of the following items, individually or aggregated with other items as reflected herein, would produce a change to net income in excess of $100 million, net income shall be determined for such fiscal year by excluding such item(s) as aggregated:
|
(A)
|
the gains or losses resulting from, and the expenses incurred in connection with, the acquisition or disposition of a business, a merger, or a similar transaction, and integration in connection therewith;
|
(B)
|
the impact of securities issuances in connection with events described in item (A), above, and expenses incurred in connection therewith;
|
(C)
|
any gain, loss, income or expense resulting from changes in accounting principles, tax laws, or other laws or provisions affecting reported results, that become effective during the Performance Period;
|
(D)
|
any gain or loss resulting from, and expenses incurred in connection with, any litigation or regulatory investigations;
|
(E)
|
any charges and expenses incurred in connection with restructuring activity, including but not limited to, reductions in force;
|
(F)
|
the impact of discontinued operations;
|
(G)
|
asset write-downs;
|
(H)
|
the impact on goodwill impairment; or
|
(I)
|
any other gain, loss, income or expense with respect to the Performance Period that is extraordinary, unusual and/or infrequent.
|
Ranking
|
< 25th percentile
|
25th
percentile
|
50th
percentile
|
Highest ROE
|
PSU Multiplier
|
0%
|
50%
|
100%
|
150%
|
Vesting Date
|
Percentage of Stock Units Vesting
|
First anniversary of the Measurement Date
|
25%
|
Second anniversary of the Measurement Date
|
25%
|
Third anniversary of the Measurement Date
|
25%
|
Fourth anniversary of the Measurement Date
|
25%
|
Vesting Date
|
Percentage of Stock Units Vesting
|
|
|
|
|
|
|
|
|
1.
|
I have reviewed this report on Form 10-Q for the quarterly period ended March 31, 2020, 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:
|
April 27, 2020
|
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 March 31, 2020, 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;
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(c)
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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
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(d)
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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
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5.
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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):
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(a)
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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
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(b)
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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.
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/s/ Jason J. Tyler
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Date:
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April 27, 2020
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Jason J. Tyler
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Chief Financial Officer
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(Principal Financial Officer)
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/s/ Michael G. O’Grady
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Michael G. O’Grady
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Chief Executive Officer
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(Principal Executive Officer)
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/s/ Jason J. Tyler
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Jason J. Tyler
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Chief Financial Officer
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(Principal Financial Officer)
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