☒ | ANNUAL 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 La Salle Street | ||||||||
Chicago, | Illinois | 60603 | ||||||
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Trading Symbol | Name of Each Exchange On Which Registered | ||||||
Common Stock, $1.66 2/3 Par Value | NTRS | The NASDAQ Stock Market LLC | ||||||
Depositary Shares, each representing 1/1,000th interest in a share of Series E Non-Cumulative Perpetual Preferred Stock | NTRSO | The NASDAQ Stock Market LLC |
Large accelerated filer |
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Accelerated filer | ☐ | Emerging growth company | ☐ | ||||||||||||
Non-accelerated filer |
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Smaller reporting company | ☐ |
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Page | ||||||||
Item 1 | ||||||||
Item 1A | ||||||||
Item 1B | ||||||||
Item 2 | ||||||||
Item 3 | ||||||||
Item 4 | ||||||||
Supplemental Item | Information About Our Executive Officers | |||||||
Item 5 | ||||||||
Item 6 | ||||||||
Item 7 | ||||||||
Item 7A | ||||||||
Item 8 | ||||||||
Item 9 | ||||||||
Item 9A | ||||||||
Item 9B | ||||||||
Item 10 | ||||||||
Item 11 | ||||||||
Item 12 | ||||||||
Item 13 | ||||||||
Item 14 | ||||||||
Item 15 | ||||||||
Item 16 | ||||||||
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COMMON EQUITY
TIER 1 CAPITAL |
TIER 1 CAPITAL | TOTAL CAPITAL | TIER 1 LEVERAGE |
SUPPLEMENTARY LEVERAGE(1)
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STANDARDIZED
APPROACH |
ADVANCED
APPROACH |
STANDARDIZED
APPROACH |
ADVANCED
APPROACH |
STANDARDIZED
APPROACH |
ADVANCED
APPROACH |
STANDARDIZED
APPROACH |
ADVANCED
APPROACH |
ADVANCED
APPROACH |
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Northern Trust Corporation | 12.8 | % | 13.4 | % | 13.9 | % | 14.5 | % | 15.6 | % | 15.9 | % | 7.6 | % | 7.6 | % | 8.6 | % | |||||||||||
The Northern Trust Company | 13.0 | % | 13.8 | % | 13.0 | % | 13.8 | % | 14.5 | % | 15.0 | % | 7.0 | % | 7.0 | % | 7.7 | % | |||||||||||
Minimum required ratio | 4.5 | % | 4.5 | % | 6.0 | % | 6.0 | % | 8.0 | % | 8.0 | % | 4.0 | % | 4.0 | % | 3.0 | % | |||||||||||
“Well-capitalized” minimum ratios, as applicable | |||||||||||||||||||||||||||||
Northern Trust Corporation | N/A | N/A | 6.0 | % | 6.0 | % | 10.0 | % | 10.0 | % | N/A | N/A | N/A | ||||||||||||||||
The Northern Trust Company | 6.5 | % | 6.5 | % | 8.0 | % | 8.0 | % | 10.0 | % | 10.0 | % | 5.0 | % | 5.0 | % | 3.0 | % |
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DECEMBER 31, 2020 | ||||||||||||||||||||
FEMALE | MALE | WHITE | BLACK | HISPANIC | ASIAN | |||||||||||||||
Board of Directors | 23% | 77% | 61% | 23% | 8% | 8% | ||||||||||||||
Executive Officers | 33% | 67% | 83% | 17% | —% | —% |
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PERIOD | TOTAL NUMBER OF SHARES PURCHASED | AVERAGE PRICE PAID PER SHARE | TOTAL NUMBER OF SHARES PURCHASED AS PART OF A PUBLICLY ANNOUNCED PLAN | MAXIMUM NUMBER OF SHARES THAT MAY YET BE PURCHASED UNDER THE PLAN | ||||||||||
October 1 - 31, 2020 | — | $ | — | — | 6,487,647 | |||||||||
November 1 - 30, 2020 | — | — | — | 6,487,647 | ||||||||||
December 1 - 31, 2020 | — | — | — | 6,487,647 | ||||||||||
Total (Fourth Quarter) | — | $ | — | — | 6,487,647 |
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DECEMBER 31, | ||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||
Northern Trust | $ | 100 | $ | 126 | $ | 144 | $ | 123 | $ | 160 | $ | 146 | ||||||||
S&P 500 | 100 | 112 | 136 | 130 | 171 | 203 | ||||||||||||||
KBW Bank Index | 100 | 129 | 152 | 125 | 171 | 153 |
2020 Annual Report | Northern Trust Corporation 29
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FOR THE YEAR ENDED DECEMBER 31, | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
CONDENSED STATEMENTS OF INCOME ($ In Millions) | |||||||||||||||||
Noninterest Income | $ | 4,657.6 | $ | 4,395.2 | $ | 4,337.5 | $ | 3,946.1 | $ | 3,726.9 | |||||||
Net Interest Income | 1,443.2 | 1,677.9 | 1,622.7 | 1,429.2 | 1,234.9 | ||||||||||||
Total Revenue | $ | 6,100.8 | $ | 6,073.1 | $ | 5,960.2 | $ | 5,375.3 | $ | 4,961.8 | |||||||
Provision for Credit Losses | 125.0 | (14.5) | (14.5) | (28.0) | (26.0) | ||||||||||||
Noninterest Expense | 4,348.2 | 4,143.5 | 4,016.9 | 3,769.4 | 3,470.7 | ||||||||||||
Income before Income Taxes | $ | 1,627.6 | $ | 1,944.1 | $ | 1,957.8 | $ | 1,633.9 | $ | 1,517.1 | |||||||
Provision for Income Taxes | 418.3 | 451.9 | 401.4 | 434.9 | 484.6 | ||||||||||||
Net Income | $ | 1,209.3 | $ | 1,492.2 | $ | 1,556.4 | $ | 1,199.0 | $ | 1,032.5 | |||||||
Preferred Stock Dividends | 56.2 | 46.4 | 46.4 | 49.8 | 23.4 | ||||||||||||
Net Income Applicable to Common Stock | $ | 1,153.1 | $ | 1,445.8 | $ | 1,510.0 | $ | 1,149.2 | $ | 1,009.1 | |||||||
PER COMMON SHARE | |||||||||||||||||
Net Income – Basic | $ | 5.48 | $ | 6.66 | $ | 6.68 | $ | 4.95 | $ | 4.35 | |||||||
– Diluted
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5.46 | 6.63 | 6.64 | 4.92 | 4.32 | ||||||||||||
Cash Dividends Declared Per Common Share | 2.80 | 2.60 | 1.94 | 1.60 | 1.48 | ||||||||||||
Book Value – End of Period (EOP) | 51.87 | 46.82 | 43.95 | 41.28 | 38.88 | ||||||||||||
Market Price – EOP | 93.14 | 106.24 | 83.59 | 99.89 | 89.05 | ||||||||||||
SELECTED BALANCE SHEET DATA ($ In Millions) | |||||||||||||||||
At Year End: | |||||||||||||||||
Earning Assets | $ | 158,531.6 | $ | 125,236.6 | $ | 122,847.3 | $ | 129,656.6 | $ | 115,446.4 | |||||||
Total Assets | 170,003.9 | 136,828.4 | 132,212.5 | 138,590.5 | 123,926.9 | ||||||||||||
Deposits | 143,878.0 | 109,120.6 | 104,496.8 | 112,390.8 | 101,651.7 | ||||||||||||
Senior Notes | 3,122.4 | 2,573.0 | 2,011.3 | 1,497.3 | 1,496.6 | ||||||||||||
Long-Term Debt | 1,189.3 | 1,148.1 | 1,112.4 | 1,449.5 | 1,330.9 | ||||||||||||
Stockholders’ Equity | 11,688.3 | 11,091.0 | 10,508.3 | 10,216.2 | 9,770.4 | ||||||||||||
Average Balances: | |||||||||||||||||
Earning Assets | $ | 124,132.9 | $ | 107,109.4 | $ | 113,731.0 | $ | 111,178.3 | $ | 107,037.6 | |||||||
Total Assets | 136,811.1 | 117,551.4 | 122,946.6 | 119,607.4 | 115,570.3 | ||||||||||||
Deposits | 108,511.1 | 89,786.0 | 95,103.1 | 96,504.8 | 93,613.9 | ||||||||||||
Senior Notes | 3,233.8 | 2,389.1 | 1,704.0 | 1,496.9 | 1,496.6 | ||||||||||||
Long-Term Debt | 1,189.2 | 1,139.0 | 1,296.8 | 1,519.4 | 1,392.4 | ||||||||||||
Stockholders’ Equity | 11,192.6 | 10,648.4 | 10,228.9 | 9,980.6 | 9,085.3 | ||||||||||||
CLIENT ASSETS ($ In Billions) | |||||||||||||||||
Assets Under Custody/Administration(1)
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$ | 14,532.5 | $ | 12,050.4 | $ | 10,125.3 | $ | 10,722.6 | $ | 8,541.3 | |||||||
Assets Under Custody | 11,262.8 | 9,233.5 | 7,593.9 | 8,084.6 | 6,720.5 | ||||||||||||
Assets Under Management | 1,405.3 | 1,231.3 | 1,069.4 | 1,161.0 | 942.4 | ||||||||||||
SELECTED RATIOS AND METRICS | |||||||||||||||||
Financial Ratios and Metrics: | |||||||||||||||||
Return on Average Common Equity | 11.2 | % | 14.9 | % | 16.2 | % | 12.6 | % | 11.9 | % | |||||||
Return on Average Assets | 0.88 | 1.27 | 1.27 | 1.00 | 0.89 | ||||||||||||
Dividend Payout Ratio | 51.3 | 39.2 | 29.2 | 32.5 | 34.3 | ||||||||||||
Average Stockholders’ Equity to Average Assets | 8.2 | 9.1 | 8.3 | 8.3 | 7.9 |
Capital Ratios: | DECEMBER 31, 2020 | DECEMBER 31, 2019 | DECEMBER 31, 2018 | |||||||||||||||||
STANDARDIZED APPROACH | ADVANCED APPROACH | STANDARDIZED APPROACH | ADVANCED APPROACH | STANDARDIZED APPROACH |
ADVANCED
APPROACH |
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Common Equity Tier 1 Capital | 12.8 | % | 13.4 | % | 12.7 | % | 13.2 | % | 12.9 | % | 13.7 | % | ||||||||
Tier 1 Capital | 13.9 | 14.5 | 14.5 | 15.0 | 14.1 | 15.0 | ||||||||||||||
Total Capital | 15.6 | 15.9 | 16.3 | 16.8 | 16.1 | 16.9 | ||||||||||||||
Tier 1 Leverage | 7.6 | 7.6 | 8.7 | 8.7 | 8.0 | 8.0 | ||||||||||||||
Supplementary Leverage(2)
|
N/A | 8.6 | N/A | 7.6 | N/A | 7.0 | ||||||||||||||
DECEMBER 31, 2017 | DECEMBER 31, 2016 | |||||||||||||||||||
STANDARDIZED APPROACH |
ADVANCED
APPROACH |
STANDARDIZED APPROACH |
ADVANCED
APPROACH |
WELL-CAPITALIZED RATIOS | MINIMUM CAPITAL RATIOS | |||||||||||||||
Common Equity Tier 1 Capital | 12.6 | % | 13.5 | % | 11.8 | % | 12.4 | % | N/A | 4.5 | % | |||||||||
Tier 1 Capital | 13.8 | 14.8 | 12.9 | 13.7 | 6.0 | 6.0 | ||||||||||||||
Total Capital | 15.8 | 16.7 | 14.5 | 15.1 | 10.0 | 8.0 | ||||||||||||||
Tier 1 Leverage | 7.8 | 7.8 | 8.0 | 8.0 | N/A | 4.0 | ||||||||||||||
Supplementary Leverage(2)
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N/A | 6.8 | N/A | 6.8 | N/A | 3.0 |
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FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
($ In Millions) | 2020 | 2019 | 2018 | ||||||||
Noninterest Income | |||||||||||
Trust, Investment and Other Servicing Fees | $ | 3,995.0 | $ | 3,852.1 | $ | 3,753.7 | |||||
Foreign Exchange Trading Income | 290.4 | 250.9 | 307.2 | ||||||||
Treasury Management Fees | 45.4 | 44.5 | 51.8 | ||||||||
Security Commissions and Trading Income | 133.2 | 103.6 | 98.3 | ||||||||
Other Operating Income | 194.0 | 145.5 | 127.5 | ||||||||
Investment Security Gains (Losses), net | (0.4) | (1.4) | (1.0) | ||||||||
Total Noninterest Income | $ | 4,657.6 | $ | 4,395.2 | $ | 4,337.5 | |||||
Net Interest Income | 1,443.2 | 1,677.9 | 1,622.7 | ||||||||
Total Revenue | $ | 6,100.8 | $ | 6,073.1 | $ | 5,960.2 |
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FOR THE YEAR ENDED DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Millions) | 2020 | 2019 | 2018 | 2020 / 2019 | 2019 / 2018 | ||||||||||||
C&IS Trust, Investment and Other Servicing Fees | |||||||||||||||||
Custody and Fund Administration | $ | 1,586.1 | $ | 1,549.3 | $ | 1,501.1 | 2 | % | 3 | % | |||||||
Investment Management | 511.1 | 445.7 | 436.8 | 15 | 2 | ||||||||||||
Securities Lending | 88.0 | 87.2 | 102.0 | 1 | (15) | ||||||||||||
Other | 136.4 | 129.3 | 133.2 | 6 | (3) | ||||||||||||
Total C&IS Trust, Investment and Other Servicing Fees | $ | 2,321.6 | $ | 2,211.5 | $ | 2,173.1 | 5 | % | 2 | % | |||||||
Wealth Management Trust, Investment and Other Servicing Fees | |||||||||||||||||
Central | $ | 607.3 | $ | 619.3 | $ | 607.8 | (2) | % | 2 | % | |||||||
East | 442.1 | 422.2 | 401.7 | 5 | 5 | ||||||||||||
West | 337.7 | 330.9 | 320.0 | 2 | 3 | ||||||||||||
Global Family Office | 286.3 | 268.2 | 251.1 | 7 | 7 | ||||||||||||
Total Wealth Management Trust, Investment and Other Servicing Fees | $ | 1,673.4 | $ | 1,640.6 | $ | 1,580.6 | 2 | % | 4 | % | |||||||
Total Consolidated Trust, Investment and Other Servicing Fees | $ | 3,995.0 | $ | 3,852.1 | $ | 3,753.7 | 4 | % | 3 | % |
DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Billions) | 2020 | 2019 | 2018 | 2020 / 2019 | 2019 / 2018 | ||||||||||||
North America | $ | 5,746.4 | $ | 4,516.0 | $ | 3,693.4 | 27 | % | 22 | % | |||||||
Europe, Middle East, and Africa | 3,478.2 | 2,998.5 | 2,538.6 | 16 | 18 | ||||||||||||
Asia Pacific | 976.2 | 820.3 | 589.2 | 19 | 39 | ||||||||||||
Securities Lending | 186.9 | 163.0 | 149.8 | 15 | 9 | ||||||||||||
Total Assets Under Custody | $ | 10,387.7 | $ | 8,497.8 | $ | 6,971.0 | 22 | % | 22 | % |
2020 Annual Report | Northern Trust Corporation 35
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DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Billions) | 2020 | 2019 | 2018 | 2020 / 2019 | 2019 / 2018 | ||||||||||||
North America | $ | 676.8 | $ | 588.4 | $ | 493.1 | 15 | % | 19 | % | |||||||
Europe, Middle East, and Africa | 143.5 | 125.2 | 113.3 | 15 | 11 | ||||||||||||
Asia Pacific | 50.3 | 40.9 | 34.6 | 23 | 18 | ||||||||||||
Securities Lending | 186.9 | 163.0 | 149.8 | 15 | 9 | ||||||||||||
Total Assets Under Management | $ | 1,057.5 | $ | 917.5 | $ | 790.8 | 15 | % | 16 | % |
DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Billions) | 2020 | 2019 | 2018 | 2020 / 2019 | 2019 / 2018 | ||||||||||||
Global Family Office | $ | 600.7 | $ | 474.1 | $ | 405.5 | 27 | % | 17 | % | |||||||
Central | 120.0 | 115.1 | 88.2 | 4 | 31 | ||||||||||||
East | 89.1 | 81.7 | 72.7 | 9 | 12 | ||||||||||||
West | 65.3 | 64.8 | 56.5 | 1 | 15 | ||||||||||||
Total Assets Under Custody | $ | 875.1 | $ | 735.7 | $ | 622.9 | 19 | % | 18 | % |
DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Billions) | 2020 | 2019 | 2018 | 2020 / 2019 | 2019 / 2018 | ||||||||||||
Global Family Office | $ | 114.0 | $ | 94.2 | $ | 83.5 | 21 | % | 13 | % | |||||||
Central | 109.3 | 104.4 | 96.2 | 5 | 9 | ||||||||||||
East | 73.3 | 66.8 | 57.0 | 10 | 17 | ||||||||||||
West | 51.2 | 48.4 | 41.9 | 6 | 16 | ||||||||||||
Total Assets Under Management | $ | 347.8 | $ | 313.8 | $ | 278.6 | 11 | % | 13 | % |
DAILY AVERAGES | YEAR-END | |||||||||||||||||||
2020 | 2019 | CHANGE | 2020 | 2019 | CHANGE | |||||||||||||||
S&P 500 | 3,218 | 2,912 | 11 | % | 3,756 | 3,231 | 16 | % | ||||||||||||
MSCI EAFE (U.S. dollars) | 1,853 | 1,891 | (2) | 2,148 | 2,037 | 5 | ||||||||||||||
MSCI EAFE (local currency) | 1,074 | 1,118 | (4) | 1,174 | 1,190 | (1) |
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AS OF DECEMBER 31, | |||||||||||
2020 | 2019 | CHANGE | |||||||||
Barclays Capital U.S. Aggregate Bond Index | 2,392 | 2,225 | 8 | % | |||||||
Barclays Capital Global Aggregate Bond Index | 559 | 512 | 9 |
DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Billions) | 2020 | 2019 | 2018 | 2020 /2019 | 2019 /2018 | ||||||||||||
Corporate & Institutional Services | $ | 13,653.1 | $ | 11,311.6 | $ | 9,490.5 | 21 | % | 19 | % | |||||||
Wealth Management | 879.4 | 738.8 | 634.8 | 19 | 16 | ||||||||||||
Total Assets Under Custody/Administration | $ | 14,532.5 | $ | 12,050.4 | $ | 10,125.3 | 21 | % | 19 | % |
DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Billions) | 2020 | 2019 | 2018 | 2020 /2019 | 2019 / 2018 | ||||||||||||
Corporate & Institutional Services | $ | 10,387.7 | $ | 8,497.8 | $ | 6,971.0 | 22 | % | 22 | % | |||||||
Wealth Management | 875.1 | 735.7 | 622.9 | 19 | 18 | ||||||||||||
Total Assets Under Custody | $ | 11,262.8 | $ | 9,233.5 | $ | 7,593.9 | 22 | % | 22 | % |
DECEMBER 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
C&IS | WM | TOTAL | C&IS | WM | TOTAL | C&IS | WM | TOTAL | |||||||||||||||||||||
Equities | 46 | % | 62 | % | 47 | % | 45 | % | 59 | % | 46 | % | 44 | % | 54 | % | 45 | % | |||||||||||
Fixed Income Securities | 36 | 15 | 34 | 37 | 18 | 35 | 39 | 20 | 37 | ||||||||||||||||||||
Cash and Other Assets | 16 | 23 | 17 | 16 | 23 | 17 | 15 | 26 | 16 | ||||||||||||||||||||
Securities Lending Collateral | 2 | — | 2 | 2 | — | 2 | 2 | — | 2 |
2020 Annual Report | Northern Trust Corporation 37
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DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Billions) | 2020 | 2019 | 2018 | 2020 / 2019 | 2019 / 2018 | ||||||||||||
Equities | $ | 5,293.9 | $ | 4,298.6 | $ | 3,379.5 | 23 | % | 27 | % | |||||||
Fixed Income Securities | 3,870.9 | 3,236.5 | 2,822.4 | 20 | 15 | ||||||||||||
Cash and Other Assets | 1,911.1 | 1,535.3 | 1,242.1 | 24 | 24 | ||||||||||||
Securities Lending Collateral | 186.9 | 163.1 | 149.9 | 15 | 9 | ||||||||||||
Total Assets Under Custody | $ | 11,262.8 | $ | 9,233.5 | $ | 7,593.9 | 22 | % | 22 | % |
DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Billions) | 2020 | 2019 | 2018 | 2020 / 2019 | 2019 / 2018 | ||||||||||||
Corporate & Institutional Services | $ | 1,057.5 | $ | 917.5 | $ | 790.8 | 15 | % | 16 | % | |||||||
Wealth Management | 347.8 | 313.8 | 278.6 | 11 | 13 | ||||||||||||
Total Assets Under Management | $ | 1,405.3 | $ | 1,231.3 | $ | 1,069.4 | 14 | % | 15 | % |
DECEMBER 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
C&IS | WM | TOTAL | C&IS | WM | TOTAL | C&IS | WM | TOTAL | |||||||||||||||||||||
Equities | 52 | % | 52 | % | 52 | % | 53 | % | 53 | % | 53 | % | 51 | % | 47 | % | 50 | % | |||||||||||
Fixed Income Securities | 11 | 25 | 15 | 12 | 25 | 16 | 13 | 26 | 17 | ||||||||||||||||||||
Cash and Other Assets | 19 | 23 | 20 | 17 | 22 | 18 | 17 | 27 | 19 | ||||||||||||||||||||
Securities Lending Collateral | 18 | — | 13 | 18 | — | 13 | 19 | — | 14 |
DECEMBER 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
C&IS | WM | TOTAL | C&IS | WM | TOTAL | C&IS | WM | TOTAL | |||||||||||||||||||||
Index | 58 | % | 24 | % | 50 | % | 59 | % | 27 | % | 51 | % | 57 | % | 25 | % | 49 | % | |||||||||||
Active | 38 | 39 | 38 | 37 | 36 | 37 | 38 | 39 | 38 | ||||||||||||||||||||
Multi-Manager | 4 | 8 | 5 | 4 | 8 | 5 | 5 | 7 | 5 | ||||||||||||||||||||
Other | — | 29 | 7 | — | 29 | 7 | — | 29 | 8 |
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FOR THE YEAR ENDED DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Millions) | 2020 | 2019 | 2018 | 2020 / 2019 | 2019 / 2018 | ||||||||||||
Foreign Exchange Trading Income | $ | 290.4 | $ | 250.9 | $ | 307.2 | 16 | % | (18) | % | |||||||
Treasury Management Fees | 45.4 | 44.5 | 51.8 | 2 | (14) | ||||||||||||
Security Commissions and Trading Income | 133.2 | 103.6 | 98.3 | 29 | 5 | ||||||||||||
Other Operating Income | 194.0 | 145.5 | 127.5 | 33 | 14 | ||||||||||||
Investment Security Gains (Losses), net | (0.4) | (1.4) | (1.0) | N/M | N/M | ||||||||||||
Total Other Noninterest Income | $ | 662.6 | $ | 543.1 | $ | 583.8 | 22 | % | (7) | % |
FOR THE YEAR ENDED DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Millions) | 2020 | 2019 | 2018 | 2020 / 2019 | 2019 / 2018 | ||||||||||||
Loan Service Fees | $ | 52.5 | $ | 48.0 | $ | 48.9 | 9 | % | (2) | % | |||||||
Banking Service Fees | 46.1 | 45.6 | 46.4 | 1 | (2) | ||||||||||||
Other Income | 95.4 | 51.9 | 32.2 | 84 | 60 | ||||||||||||
Total Other Operating Income | $ | 194.0 | $ | 145.5 | $ | 127.5 | 33 | % | 14 | % |
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2020 | 2019 | 2018 | |||||||||||||||||||||||||||
($ In Millions) | INTEREST |
AVERAGE
BALANCE |
AVERAGE RATE(7)
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INTEREST |
AVERAGE
BALANCE |
AVERAGE RATE(7)
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INTEREST |
AVERAGE
BALANCE |
AVERAGE RATE(7)
|
||||||||||||||||||||
INTEREST-EARNING ASSETS | |||||||||||||||||||||||||||||
Federal Reserve and Other Central Bank Deposits and Other(2)
|
$ | 28.8 | $ | 27,921.4 | 0.10 | % | $ | 181.7 | $ | 18,527.7 | 0.98 | % | $ | 207.1 | $ | 23,899.3 | 0.87 | % | |||||||||||
Interest-Bearing Due from and Deposits with Banks(3)
|
22.4 | 5,400.8 | 0.41 | 72.4 | 5,996.7 | 1.21 | 70.0 | 6,022.8 | 1.16 | ||||||||||||||||||||
Federal Funds Sold | — | 2.3 | 1.37 | 0.4 | 12.8 | 2.73 | 0.4 | 20.5 | 2.18 | ||||||||||||||||||||
Securities Purchased under Agreements to Resell | 3.9 | 1,253.1 | 0.31 | 17.5 | 835.0 | 2.10 | 32.9 | 1,478.3 | 2.22 | ||||||||||||||||||||
Securities | |||||||||||||||||||||||||||||
U.S. Government | 63.0 | 4,256.7 | 1.48 | 110.4 | 5,296.5 | 2.09 | 108.3 | 5,737.1 | 1.89 | ||||||||||||||||||||
Obligations of States and Political Subdivisions | 48.2 | 2,194.3 | 2.20 | 24.4 | 980.5 | 2.49 | 13.9 | 725.2 | 1.91 | ||||||||||||||||||||
Government Sponsored Agency | 409.0 | 23,970.4 | 1.71 | 583.6 | 22,634.1 | 2.58 | 456.0 | 20,682.7 | 2.20 | ||||||||||||||||||||
Other(4)
|
324.1 | 25,635.1 | 1.26 | 381.6 | 21,773.3 | 1.75 | 367.5 | 23,136.5 | 1.59 | ||||||||||||||||||||
Total Securities | 844.3 | 56,056.5 | 1.51 | 1,100.0 | 50,684.4 | 2.17 | 945.7 | 50,281.5 | 1.88 | ||||||||||||||||||||
Loans and Leases(5)
|
778.5 | 33,498.8 | 2.32 | 1,160.7 | 31,052.8 | 3.74 | 1,106.5 | 32,028.6 | 3.45 | ||||||||||||||||||||
Total Interest-Earning Assets | 1,677.9 | 124,132.9 | 1.35 | 2,532.7 | 107,109.4 | 2.36 | 2,362.6 | 113,731.0 | 2.08 | ||||||||||||||||||||
Allowance for Credit Losses | — | (178.0) | — | — | (111.4) | — | — | (126.3) | — | ||||||||||||||||||||
Cash and Due from Banks and Other Central Bank Deposits(6)
|
— | 2,603.0 | — | — | 2,393.6 | — | — | 2,534.3 | — | ||||||||||||||||||||
Buildings and Equipment | — | 509.3 | — | — | 425.6 | — | — | 438.5 | — | ||||||||||||||||||||
Client Security Settlement Receivables | — | 1,357.5 | — | — | 1,070.4 | — | — | 1,002.0 | — | ||||||||||||||||||||
Goodwill | — | 695.4 | — | — | 682.5 | — | 642.5 | — | |||||||||||||||||||||
Other Assets | — | 7,691.0 | — | — | 5,981.3 | — | — | 4,724.6 | — | ||||||||||||||||||||
Total Assets | $ | — | $ | 136,811.1 | — | % | $ | — | $ | 117,551.4 | — | % | $ | — | $ | 122,946.6 | — | % | |||||||||||
AVERAGE SOURCE OF FUNDS | |||||||||||||||||||||||||||||
Deposits | |||||||||||||||||||||||||||||
Savings, Money Market, and Other | $ | 47.6 | $ | 23,396.4 | 0.20 | % | $ | 160.8 | $ | 16,577.8 | 0.97 | % | $ | 82.0 | $ | 15,149.3 | 0.54 | % | |||||||||||
Savings Certificates and Other Time | 16.5 | 1,266.4 | 1.30 | 16.2 | 867.5 | 1.86 | 7.8 | 870.6 | 0.90 | ||||||||||||||||||||
Non-U.S. Offices – Interest-Bearing | (15.7) | 60,486.3 | (0.03) | 311.9 | 54,885.2 | 0.57 | 294.8 | 58,556.6 | 0.50 | ||||||||||||||||||||
Total Interest-Bearing Deposits | 48.4 | 85,149.1 | 0.06 | 488.9 | 72,330.5 | 0.68 | 384.6 | 74,576.5 | 0.52 | ||||||||||||||||||||
Federal Funds Purchased | 2.2 | 980.9 | 0.22 | 25.9 | 1,267.4 | 2.05 | 50.3 | 2,762.8 | 1.82 | ||||||||||||||||||||
Securities Sold under Agreements to Repurchase | 1.0 | 218.3 | 0.47 | 6.4 | 339.0 | 1.89 | 7.8 | 525.2 | 1.48 | ||||||||||||||||||||
Other Borrowings | 45.3 | 6,401.1 | 0.71 | 181.7 | 7,752.5 | 2.34 | 150.1 | 7,495.5 | 2.00 | ||||||||||||||||||||
Senior Notes | 72.7 | 3,233.8 | 2.24 | 72.6 | 2,389.1 | 3.04 | 53.4 | 1,704.0 | 3.13 | ||||||||||||||||||||
Long-Term Debt | 26.5 | 1,189.2 | 2.24 | 38.3 | 1,139.0 | 3.36 | 45.0 | 1,296.8 | 3.47 | ||||||||||||||||||||
Floating Rate Capital Debt | 4.2 | 277.7 | 1.52 | 8.2 | 277.6 | 2.98 | 7.5 | 277.6 | 2.72 | ||||||||||||||||||||
Total Interest-Related Funds | 200.3 | 97,450.1 | 0.21 | 822.0 | 85,495.1 | 0.96 | 698.7 | 88,638.4 | 0.79 | ||||||||||||||||||||
Interest Rate Spread | — | — | 1.14 | — | — | 1.40 | — | — | 1.29 | ||||||||||||||||||||
Demand and Other Noninterest-Bearing Deposits | — | 23,362.0 | — | — | 17,455.5 | — | — | 20,526.6 | — | ||||||||||||||||||||
Other Liabilities | — | 4,806.4 | — | — | 3,952.4 | — | — | 3,552.7 | — | ||||||||||||||||||||
Stockholders’ Equity | — | 11,192.6 | — | — | 10,648.4 | — | — | 10,228.9 | — | ||||||||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | — | $ | 136,811.1 | — | % | $ | — | $ | 117,551.4 | — | % | $ | — | $ | 122,946.6 | — | % | |||||||||||
Net Interest Income/Margin (FTE Adjusted) | $ | 1,477.6 | $ | — | 1.19 | % | $ | 1,710.7 | $ | — | 1.60 | % | $ | 1,663.9 | $ | — | 1.46 | % | |||||||||||
Net Interest Income/Margin (Unadjusted) | $ | 1,443.2 | $ | — | 1.16 | % | $ | 1,677.9 | $ | — | 1.57 | % | $ | 1,622.7 | $ | — | 1.43 | % |
2020 Annual Report | Northern Trust Corporation 41
|
(INTEREST AND RATE ON A FULLY TAXABLE EQUIVALENT BASIS) | 2020/2019 CHANGE DUE TO | 2019/2018 CHANGE DUE TO | ||||||||||||||||||
(In Millions) |
AVERAGE
BALANCE |
AVERAGE RATE | NET (DECREASE) INCREASE |
AVERAGE
BALANCE |
AVERAGE RATE | NET (DECREASE) INCREASE | ||||||||||||||
Increase (Decrease) in Net Interest Income (FTE) | ||||||||||||||||||||
Federal Reserve and Other Central Bank Deposits and Other | $ | 62.5 | $ | (215.4) | $ | (152.9) | $ | (58.1) | $ | 32.7 | $ | (25.4) | ||||||||
Interest-Bearing Due from and Deposits with Banks | (6.5) | (43.5) | (50.0) | (0.3) | 2.7 | 2.4 | ||||||||||||||
Federal Funds Sold | (0.2) | (0.2) | (0.4) | — | — | — | ||||||||||||||
Securities Purchased under Agreements to Resell | 6.1 | (19.7) | (13.6) | (36.5) | 21.1 | (15.4) | ||||||||||||||
Securities | ||||||||||||||||||||
U.S. Government | (19.0) | (28.4) | (47.4) | (5.4) | 7.5 | 2.1 | ||||||||||||||
Obligations of States and Political Subdivisions | 26.9 | (3.1) | 23.8 | 5.7 | 4.8 | 10.5 | ||||||||||||||
Government Sponsored Agency | 32.7 | (207.3) | (174.6) | 45.1 | 82.5 | 127.6 | ||||||||||||||
Other | 61.6 | (119.1) | (57.5) | (20.0) | 34.1 | 14.1 | ||||||||||||||
Total Securities | 102.2 | (357.9) | (255.7) | 25.4 | 128.9 | 154.3 | ||||||||||||||
Loans and Leases | 177.6 | (559.8) | (382.2) | (89.2) | 143.4 | 54.2 | ||||||||||||||
Total Interest Income | $ | 341.7 | $ | (1,196.5) | $ | (854.8) | $ | (158.7) | $ | 328.8 | $ | 170.1 | ||||||||
Interest-Bearing Deposits | ||||||||||||||||||||
Savings, Money Market and Other | $ | 48.5 | $ | (161.7) | $ | (113.2) | $ | 8.3 | $ | 70.5 | $ | 78.8 | ||||||||
Savings Certificates and Other Time | (9.3) | 9.6 | 0.3 | — | 8.4 | 8.4 | ||||||||||||||
Non-U.S. Offices - Interest Bearing | 29.2 | (356.8) | (327.6) | (13.9) | 31.0 | 17.1 | ||||||||||||||
Total Interest-Bearing Deposits | 68.4 | (508.9) | (440.5) | (5.6) | 109.9 | 104.3 | ||||||||||||||
Federal Funds Purchased | (4.8) | (18.9) | (23.7) | (31.9) | 7.5 | (24.4) | ||||||||||||||
Securities Sold under Agreements to Repurchase | (1.7) | (3.7) | (5.4) | (6.5) | 5.1 | (1.4) | ||||||||||||||
Other Borrowings | (27.3) | (109.1) | (136.4) | 5.3 | 26.3 | 31.6 | ||||||||||||||
Senior Notes | 22.0 | (21.9) | 0.1 | 20.6 | (1.4) | 19.2 | ||||||||||||||
Long-Term Debt | 13.5 | (25.3) | (11.8) | (5.6) | (1.1) | (6.7) | ||||||||||||||
Floating Rate Capital Debt | — | (4.0) | (4.0) | — | 0.7 | 0.7 | ||||||||||||||
Total Interest Expense | $ | 70.1 | $ | (691.8) | $ | (621.7) | $ | (23.7) | $ | 147.0 | $ | 123.3 | ||||||||
(Decrease) Increase in Net Interest Income (FTE) | $ | 271.6 | $ | (504.7) | $ | (233.1) | $ | (135.0) | $ | 181.8 | $ | 46.8 |
42 2020 Annual Report | Northern Trust Corporation
|
2020 Annual Report | Northern Trust Corporation 43
|
FOR THE YEAR ENDED DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Millions) | 2020 | 2019 | 2018 | 2020 / 2019 | 2019 / 2018 | ||||||||||||
Compensation | $ | 1,947.1 | $ | 1,859.0 | $ | 1,806.9 | 5 | % | 3 | % | |||||||
Employee Benefits | 387.7 | 355.2 | 356.7 | 9 | — | ||||||||||||
Outside Services | 763.1 | 774.5 | 739.4 | (1) | 5 | ||||||||||||
Equipment and Software | 673.5 | 612.1 | 582.2 | 10 | 5 | ||||||||||||
Occupancy | 230.1 | 212.9 | 201.1 | 8 | 6 | ||||||||||||
Other Operating Expense | 346.7 | 329.8 | 330.6 | 5 | — | ||||||||||||
Total Noninterest Expense | $ | 4,348.2 | $ | 4,143.5 | $ | 4,016.9 | 5 | % | 3 | % |
44 2020 Annual Report | Northern Trust Corporation
|
FOR THE YEAR ENDED DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Millions) | 2020 | 2019 | 2018 | 2020 / 2019 | 2019 / 2018 | ||||||||||||
Business Promotion | $ | 59.2 | $ | 104.2 | $ | 98.3 | (43) | % | 6 | % | |||||||
Staff Related | 29.4 | 42.8 | 33.6 | (31) | 27 | ||||||||||||
FDIC Insurance Premiums | 11.8 | 9.9 | 27.4 | 19 | (64) | ||||||||||||
Other Intangibles Amortization | 16.9 | 16.6 | 17.4 | 2 | (4) | ||||||||||||
Other Expenses | 229.4 | 156.3 | 153.9 | 47 | 2 | ||||||||||||
Total Other Operating Expense | $ | 346.7 | $ | 329.8 | $ | 330.6 | 5 | % | — | % |
2020 Annual Report | Northern Trust Corporation 45
|
FOR THE YEAR ENDED DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Millions) | 2020 | 2019 | 2018 | 2020 / 2019 | 2019 / 2018 | ||||||||||||
Noninterest Income | |||||||||||||||||
Trust, Investment and Other Servicing Fees | $ | 3,995.0 | $ | 3,852.1 | $ | 3,753.7 | 4 | % | 3 | % | |||||||
Foreign Exchange Trading Income | 290.4 | 250.9 | 307.2 | 16 | (18) | ||||||||||||
Other Noninterest Income | 372.2 | 292.2 | 276.6 | 27 | 6 | ||||||||||||
Total Noninterest Income | 4,657.6 | 4,395.2 | 4,337.5 | 6 | 1 | ||||||||||||
Net Interest Income(1)
|
1,477.6 | 1,710.7 | 1,663.9 | (14) | 3 | ||||||||||||
Revenue(1)
|
6,135.2 | 6,105.9 | 6,001.4 | — | 2 | ||||||||||||
Provision for Credit Losses | 125.0 | (14.5) | (14.5) | N/M | — | ||||||||||||
Noninterest Expense | 4,348.2 | 4,143.5 | 4,016.9 | 5 | 3 | ||||||||||||
Income before Income Taxes(1)
|
1,662.0 | 1,976.9 | 1,999.0 | (16) | (1) | ||||||||||||
Provision for Income Taxes(1)
|
452.7 | 484.7 | 442.6 | (7) | 10 | ||||||||||||
Net Income | $ | 1,209.3 | $ | 1,492.2 | $ | 1,556.4 | (19) | % | (4) | % | |||||||
Average Assets | $ | 136,811.1 | $ | 117,551.4 | $ | 122,946.6 | 16 | % | (4) | % |
46 2020 Annual Report | Northern Trust Corporation
|
FOR THE YEAR ENDED DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Millions) | 2020 | 2019 | 2018 | 2020 / 2019 | 2019 / 2018 | ||||||||||||
Noninterest Income | |||||||||||||||||
Trust, Investment and Other Servicing Fees | $ | 2,321.6 | $ | 2,211.5 | $ | 2,173.1 | 5 | % | 2 | % | |||||||
Foreign Exchange Trading Income | 276.3 | 232.2 | 233.4 | 19 | (1) | ||||||||||||
Other Noninterest Income | 222.5 | 178.2 | 183.0 | 25 | (3) | ||||||||||||
Total Noninterest Income | 2,820.4 | 2,621.9 | 2,589.5 | 8 | 1 | ||||||||||||
Net Interest Income(1)
|
665.5 | 918.7 | 992.2 | (28) | (7) | ||||||||||||
Revenue(1)
|
3,485.9 | 3,540.6 | 3,581.7 | (2) | (1) | ||||||||||||
Provision for Credit Losses | 38.1 | 1.9 | 1.9 | N/M | — | ||||||||||||
Noninterest Expense | 2,752.7 | 2,605.5 | 2,421.4 | 6 | 8 | ||||||||||||
Income before Income Taxes(1)
|
695.1 | 933.2 | 1,158.4 | (26) | (19) | ||||||||||||
Provision for Income Taxes(1)
|
174.4 | 219.4 | 255.3 | (21) | (14) | ||||||||||||
Net Income | $ | 520.7 | $ | 713.8 | $ | 903.1 | (27) | % | (21) | % | |||||||
Percentage of Consolidated Net Income | 43 | % | 48 | % | 58 | % | |||||||||||
Average Assets | $ | 104,790.6 | $ | 87,557.1 | $ | 82,996.5 | 20 | % | 5 | % |
2020 Annual Report | Northern Trust Corporation 47
|
FOR THE YEAR ENDED DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Millions) | 2020 | 2019 | 2018 | 2020 / 2019 | 2019 / 2018 | ||||||||||||
Noninterest Income | |||||||||||||||||
Trust, Investment and Other Servicing Fees | $ | 1,673.4 | $ | 1,640.6 | $ | 1,580.6 | 2 | % | 4 | % | |||||||
Foreign Exchange Trading Income | 14.1 | 18.7 | 4.2 | (25) | N/M | ||||||||||||
Other Noninterest Income | 168.0 | 131.1 | 102.7 | 28 | 28 | ||||||||||||
Total Noninterest Income | 1,855.5 | 1,790.4 | 1,687.5 | 4 | 6 | ||||||||||||
Net Interest Income(1)
|
812.1 | 792.0 | 816.5 | 3 | (3) | ||||||||||||
Revenue(1)
|
2,667.6 | 2,582.4 | 2,504.0 | 3 | 3 | ||||||||||||
Provision for Credit Losses | 86.9 | (16.4) | (16.4) | N/M | — | ||||||||||||
Noninterest Expense | 1,559.7 | 1,531.6 | 1,460.0 | 2 | 5 | ||||||||||||
Income before Income Taxes(1)
|
1,021.0 | 1,067.2 | 1,060.4 | (4) | 1 | ||||||||||||
Provision for Income Taxes(1)
|
291.8 | 271.1 | 262.1 | 8 | 3 | ||||||||||||
Net Income | $ | 729.2 | $ | 796.1 | $ | 798.3 | (8) | % | — | % | |||||||
Percentage of Consolidated Net Income | 60 | % | 53 | % | 51 | % | |||||||||||
Average Assets | $ | 32,020.5 | $ | 29,994.3 | $ | 26,163.7 | 7 | % | 15 | % |
48 2020 Annual Report | Northern Trust Corporation
|
FOR THE YEAR ENDED DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Millions) | 2020 | 2019 | 2018 | 2020 / 2019 | 2019 / 2018 | ||||||||||||
Noninterest Income | $ | (18.3) | $ | (17.1) | $ | 60.5 | N/M | N/M | |||||||||
Net Interest Income(1)
|
— | — | (144.8) | N/M | N/M | ||||||||||||
Revenue(1)
|
(18.3) | (17.1) | (84.3) | N/M | N/M | ||||||||||||
Noninterest Expense | 35.8 | 6.4 | 135.5 | N/M | N/M | ||||||||||||
Income (Loss) before Income Taxes(1)
|
(54.1) | (23.5) | (219.8) | N/M | N/M | ||||||||||||
Provision (Benefit) for Income Taxes(1)
|
(13.5) | (5.8) | (74.8) | N/M | N/M | ||||||||||||
Net Income | $ | (40.6) | $ | (17.7) | $ | (145.0) | N/M | N/M | |||||||||
Percentage of Consolidated Net Income | (3) | % | (1) | % | (9) | % | |||||||||||
Average Assets | $ | — | $ | — | $ | 13,786.4 | N/M | N/M |
2020 Annual Report | Northern Trust Corporation 49
|
DECEMBER 31, | CHANGE | ||||||||||||||||
($ In Billions) | 2020 | 2019 | 2018 | 2020 / 2019 | 2019 / 2018 | ||||||||||||
Equities | $ | 733.7 | $ | 650.8 | $ | 534.2 | 13 | % | 22 | % | |||||||
Fixed Income Securities | 204.8 | 193.8 | 178.3 | 6 | 9 | ||||||||||||
Cash and Other Assets | 279.9 | 223.6 | 207.0 | 25 | 8 | ||||||||||||
Securities Lending Collateral | 186.9 | 163.1 | 149.9 | 15 | 9 | ||||||||||||
Total Assets Under Management | $ | 1,405.3 | $ | 1,231.3 | $ | 1,069.4 | 14 | % | 15 | % |
($ In Billions) | 2020 | 2019 | 2018 | |||||||||||
Balance as of January 1 | $ | 1,231.3 | $ | 1,069.4 | $ | 1,161.0 | ||||||||
Inflows by Product | ||||||||||||||
Equities | 193.0 | 193.6 | 174.7 | |||||||||||
Fixed Income | 65.0 | 48.1 | 63.7 | |||||||||||
Cash and Other Assets | 802.4 | 551.6 | 484.3 | |||||||||||
Securities Lending Collateral | 268.8 | 260.5 | 165.6 | |||||||||||
Total Inflows | 1,329.2 | 1,053.8 | 888.3 | |||||||||||
Outflows by Product | ||||||||||||||
Equities | (212.6) | (205.5) | (179.2) | |||||||||||
Fixed Income | (68.5) | (49.7) | (72.5) | |||||||||||
Cash and Other Assets | (746.5) | (541.0) | (487.4) | |||||||||||
Securities Lending Collateral | (245.0) | (247.3) | (183.3) | |||||||||||
Total Outflows | (1,272.6) | (1,043.5) | (922.4) | |||||||||||
Net Inflows (Outflows) | 56.6 | 10.3 | (34.1) | |||||||||||
Market Performance, Currency & Other | ||||||||||||||
Market Performance & Other | 109.1 | 151.1 | (49.3) | |||||||||||
Currency | 8.3 | 0.5 | (8.2) | |||||||||||
Total Market Performance, Currency & Other | 117.4 | 151.6 | (57.5) | |||||||||||
Balance as of December 31 | $ | 1,405.3 | $ | 1,231.3 | $ | 1,069.4 |
50 2020 Annual Report | Northern Trust Corporation
|
($ In Billions) | DECEMBER 31, 2020 | DECEMBER 31, 2019 | CHANGE | |||||||||||
Assets | ||||||||||||||
Federal Reserve and Other Central Bank Deposits and Other(1)
|
$ | 55.4 | $ | 33.8 | $ | 21.6 | 64 | % | ||||||
Interest-Bearing Due from and Deposits with Banks(2)
|
6.6 | 7.0 | (0.4) | (5) | ||||||||||
Securities Purchased under Agreements to Resell | 1.6 | 0.7 | 0.9 | 126 | ||||||||||
Total Securities(3)
|
61.1 | 52.3 | 8.8 | 17 | ||||||||||
Loans and Leases | 33.8 | 31.4 | 2.4 | 7 | ||||||||||
Total Earning Assets | 158.5 | 125.2 | 33.3 | 27 | ||||||||||
Total Assets | 170.0 | 136.8 | 33.2 | 24 | ||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||
Total Interest-Bearing Deposits | 100.8 | 82.8 | 18.0 | 22 | ||||||||||
Demand and Other Noninterest-Bearing Deposits | 43.1 | 26.3 | 16.8 | 64 | ||||||||||
Federal Funds Purchased | 0.3 | 0.6 | (0.3) | (53) | ||||||||||
Securities Sold under Agreements to Repurchase | — | 0.5 | (0.5) | (92) | ||||||||||
Other Borrowings | 4.0 | 6.7 | (2.7) | (41) | ||||||||||
Total Stockholders’ Equity | 11.7 | 11.1 | 0.6 | 5 |
TWELVE MONTHS ENDED DECEMBER 31, | ||||||||||||||
($ In Billions) | 2020 | 2019 | CHANGE | |||||||||||
Assets | ||||||||||||||
Federal Reserve and Other Central Bank Deposits and Other(1)
|
$ | 27.9 | $ | 18.5 | $ | 9.4 | 51 | % | ||||||
Interest-Bearing Due from and Deposits with Banks(2)
|
5.4 | 6.0 | (0.6) | (10) | ||||||||||
Securities Purchased under Agreements to Resell | 1.2 | 0.8 | 0.4 | 50 | ||||||||||
Total Securities(3)
|
56.1 | 50.7 | 5.4 | 11 | ||||||||||
Loans and Leases | 33.5 | 31.1 | 2.4 | 8 | ||||||||||
Total Earning Assets | 124.1 | 107.1 | 17.0 | 16 | ||||||||||
Total Assets | 136.8 | 117.6 | 19.2 | 16 | ||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||
Total Interest-Bearing Deposits | 85.1 | 72.3 | 12.8 | 18 | ||||||||||
Demand and Other Noninterest-Bearing Deposits | 23.4 | 17.5 | 5.9 | 34 | ||||||||||
Federal Funds Purchased | 1.0 | 1.3 | (0.3) | (23) | ||||||||||
Securities Sold under Agreements to Repurchase | 0.2 | 0.3 | (0.1) | (36) | ||||||||||
Other Borrowings | 6.4 | 7.8 | (1.4) | (17) | ||||||||||
Total Stockholders’ Equity | 11.2 | 10.6 | 0.6 | 5 |
2020 Annual Report | Northern Trust Corporation 51
|
DECEMBER 31, 2020 | |||||||||||||||||||||||||||||||||||
TOTAL | ONE YEAR OR LESS | ONE TO FIVE YEARS | FIVE TO TEN YEARS | OVER TEN YEARS |
AVERAGE
MATURITY |
||||||||||||||||||||||||||||||
($ in Millions) | BOOK | YIELD | BOOK | YIELD | BOOK | YIELD | BOOK | YIELD | BOOK | YIELD | |||||||||||||||||||||||||
Debt Securities Held to Maturity | |||||||||||||||||||||||||||||||||||
U.S. Government | $ | 90.0 | 0.06% | $ | 90.0 | 0.06% | $ | — | —% | $ | — | — | % | $ | — | —% | 2 mo. | ||||||||||||||||||
Obligations of States and Political Subdivisions | 2.1 | 5.47 | 1.4 | 5.37 | 0.7 | 5.64 | — | — | — | — | 6 mos. | ||||||||||||||||||||||||
Government Sponsored Agency | 3.0 | 4.86 | 0.5 | 4.83 | 1.3 | 4.85 | 0.8 | 4.88 | 0.4 | 4.85 | 60 mos. | ||||||||||||||||||||||||
Other – Fixed | 15,130.6 | 0.29 | 11,000.7 | 0.11 | 3,572.4 | 0.76 | 440.9 | 0.67 | 116.6 | 1.31 | 13 mos. | ||||||||||||||||||||||||
– Floating | 2,565.4 | 0.42 | 501.0 | 0.27 | 2,032.8 | 0.46 | 31.6 | 0.41 | — | — | 40 mos. | ||||||||||||||||||||||||
Total Debt Securities Held to Maturity | $ | 17,791.1 | 0.31% | $ | 11,593.6 | 0.12% | $ | 5,607.2 | 0.65% | $ | 473.3 | 0.66 | % | $ | 117.0 | 1.32% | 17 mos. | ||||||||||||||||||
Debt Securities Available for Sale | |||||||||||||||||||||||||||||||||||
U.S. Government | $ | 2,799.9 | 1.66% | $ | 303.2 | 1.86% | $ | 1,767.0 | 1.72% | $ | 729.7 | 1.43 | % | $ | — | —% | 39 mos. | ||||||||||||||||||
Obligations of States and Political Subdivisions | 3,083.6 | 2.10 | 8.0 | 1.66 | 266.8 | 2.30 | 2,718.4 | 2.09 | 90.4 | 1.64 | 90 mos. | ||||||||||||||||||||||||
Government Sponsored Agency | 24,956.7 | 1.40 | 5,613.6 | 1.48 | 9,063.0 | 1.48 | 7,793.6 | 1.26 | 2,486.5 | 1.39 | 60 mos. | ||||||||||||||||||||||||
Asset-Backed – Fixed | 3,274.1 | 2.18 | 537.4 | 2.39 | 2,094.3 | 1.94 | 642.4 | 2.80 | — | — | 30 mos. | ||||||||||||||||||||||||
Asset-Backed – Floating | 1,755.2 | 1.41 | 0.7 | 1.31 | 1,284.6 | 1.47 | 372.9 | 1.55 | 97.0 | 0.11 | 87 mos. | ||||||||||||||||||||||||
Other – Fixed | 5,150.8 | 1.88 | 821.7 | 1.29 | 3,912.8 | 0.54 | 416.3 | 0.56 | — | — | 32 mos. | ||||||||||||||||||||||||
– Floating | 1,001.7 | 0.62 | 314.1 | 0.64 | 687.6 | 0.62 | — | — | — | — | 19 mos. | ||||||||||||||||||||||||
Total Debt Securities Available for Sale | $ | 42,022.0 | 1.57% | $ | 7,598.7 | 1.51% | $ | 19,076.1 | 1.67% | $ | 12,673.3 | 1.51 | % | $ | 2,673.9 | 1.35% | 55 mos. |
52 2020 Annual Report | Northern Trust Corporation
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AS OF DECEMBER 31, 2020 | |||||||||||||||||
($ In Millions) | AAA | AA | A | NOT RATED | TOTAL | ||||||||||||
U.S. Government | $ | 2,799.9 | $ | — | $ | — | $ | — | $ | 2,799.9 | |||||||
Obligations of States and Political Subdivisions | 918.1 | 2,165.5 | — | — | 3,083.6 | ||||||||||||
Government Sponsored Agency | 24,956.7 | — | — | — | 24,956.7 | ||||||||||||
Non-U.S. Government | 669.8 | 38.8 | 5.4 | — | 714.0 | ||||||||||||
Corporate Debt | 426.3 | 790.0 | 1,123.5 | 199.8 | 2,539.6 | ||||||||||||
Covered Bonds | 453.3 | — | 24.9 | 74.9 | 553.1 | ||||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 1,622.0 | 566.0 | 157.8 | — | 2,345.8 | ||||||||||||
Other Asset-Backed | 3,947.5 | — | — | 50.0 | 3,997.5 | ||||||||||||
Commercial Mortgage-Backed | 1,031.8 | — | — | — | 1,031.8 | ||||||||||||
Total | $ | 36,825.4 | $ | 3,560.3 | $ | 1,311.6 | $ | 324.7 | $ | 42,022.0 | |||||||
Percent of Total | 88 | % | 8 | % | 3 | % | 1 | % | 100 | % |
AS OF DECEMBER 31, 2020 | ||||||||||||||||||||
($ In Millions) | AAA | AA | A | BBB | NOT RATED | TOTAL | ||||||||||||||
U.S. Government | $ | 90.0 | $ | — | $ | — | $ | — | $ | — | $ | 90.0 | ||||||||
Obligations of States and Political Subdivisions | — | 1.0 | — | 1.1 | — | 2.1 | ||||||||||||||
Government Sponsored Agency | 3.0 | — | — | — | — | 3.0 | ||||||||||||||
Non-U.S. Government | 319.8 | 1,337.4 | 6,630.6 | 48.8 | — | 8,336.6 | ||||||||||||||
Corporate Debt | 3.8 | 279.1 | 305.1 | — | — | 588.0 | ||||||||||||||
Covered Bonds | 3,184.6 | — | — | — | — | 3,184.6 | ||||||||||||||
Certificates of Deposit | — | — | — | — | 807.2 | 807.2 | ||||||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 2,590.9 | 1,057.1 | — | — | — | 3,648.0 | ||||||||||||||
Other Asset-Backed | 677.0 | — | — | — | — | 677.0 | ||||||||||||||
Other | — | — | — | — | 454.6 | 454.6 | ||||||||||||||
Total | $ | 6,869.1 | $ | 2,674.6 | $ | 6,935.7 | $ | 49.9 | $ | 1,261.8 | $ | 17,791.1 | ||||||||
Percent of Total | 39 | % | 15 | % | 39 | % | — | % | 7 | % | 100 | % |
2020 Annual Report | Northern Trust Corporation 53
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DECEMBER 31, 2020 | |||||||||||||||||
(In Millions) | TOTAL | ONE YEAR OR LESS | ONE TO FIVE YEARS |
FIVE TO FIFTEEN
YEARS |
OVER FIFTEEN YEARS | ||||||||||||
U.S.: | |||||||||||||||||
Commercial | |||||||||||||||||
Commercial and Institutional | $ | 10,058.3 | $ | 3,850.3 | $ | 5,635.0 | $ | 566.3 | $ | 6.7 | |||||||
Commercial Real Estate | 3,558.4 | 470.3 | 2,314.4 | 769.1 | 4.6 | ||||||||||||
Lease Financing, net | 11.4 | — | — | 11.4 | — | ||||||||||||
Other | 288.2 | 288.2 | — | — | — | ||||||||||||
Personal | |||||||||||||||||
Private Client | 11,815.1 | 7,978.6 | 3,499.3 | 335.3 | 1.9 | ||||||||||||
Residential Real Estate | 6,035.7 | 125.6 | 324.4 | 910.3 | 4,675.4 | ||||||||||||
Other | 49.0 | 49.0 | — | — | — | ||||||||||||
Total U.S. | $ | 31,816.1 | $ | 12,762.0 | $ | 11,773.1 | $ | 2,592.4 | $ | 4,688.6 | |||||||
Non-U.S.: | |||||||||||||||||
Non-U.S. - Commercial | $ | 1,345.7 | $ | 1,203.4 | $ | 142.3 | $ | — | $ | — | |||||||
Non-U.S. - Personal | 597.9 | 469.5 | 82.7 | 31.8 | 13.9 | ||||||||||||
Total Non-U.S. | $ | 1,943.6 | $ | 1,672.9 | $ | 225.0 | $ | 31.8 | $ | 13.9 | |||||||
Total Loans and Leases | $ | 33,759.7 | $ | 14,434.9 | $ | 11,998.1 | $ | 2,624.2 | $ | 4,702.5 |
54 2020 Annual Report | Northern Trust Corporation
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DECEMBER 31, 2020 | |||||||||||||||||
(In Millions) | TOTAL |
ONE YEAR
OR LESS |
ONE TO FIVE
YEARS |
FIVE TO FIFTEEN
YEARS |
OVER FIFTEEN YEARS | ||||||||||||
Fixed Rate: | |||||||||||||||||
Commercial | |||||||||||||||||
Commercial and Institutional | $ | 548.7 | $ | 97.6 | $ | 392.6 | $ | 57.1 | $ | 1.4 | |||||||
Commercial Real Estate | 190.5 | 28.0 | 108.0 | 54.5 | — | ||||||||||||
Total Commercial | $ | 739.2 | $ | 125.6 | $ | 500.6 | $ | 111.6 | $ | 1.4 | |||||||
Personal | |||||||||||||||||
Private Client | $ | 423.9 | $ | 88.9 | $ | 239.3 | $ | 94.8 | $ | 0.9 | |||||||
Residential Real Estate | 920.5 | 3.7 | 39.8 | 570.0 | 307.0 | ||||||||||||
Total Personal | $ | 1,344.4 | $ | 92.6 | $ | 279.1 | $ | 664.8 | $ | 307.9 | |||||||
Total Fixed Rate | $ | 2,083.6 | $ | 218.2 | $ | 779.7 | $ | 776.4 | $ | 309.3 | |||||||
Variable Rate: | |||||||||||||||||
Commercial | |||||||||||||||||
Commercial and Institutional | $ | 9,509.6 | $ | 3,752.7 | $ | 5,242.4 | $ | 509.2 | $ | 5.3 | |||||||
Commercial Real Estate | 3,367.9 | 442.3 | 2,206.4 | 714.6 | 4.6 | ||||||||||||
Non-U.S. | 1,345.7 | 1,203.4 | 142.3 | — | — | ||||||||||||
Lease Financing, net | 11.4 | — | — | 11.4 | — | ||||||||||||
Other | 288.2 | 288.2 | — | — | — | ||||||||||||
Total Commercial | $ | 14,522.8 | $ | 5,686.6 | $ | 7,591.1 | $ | 1,235.2 | $ | 9.9 | |||||||
Personal | |||||||||||||||||
Private Client | $ | 11,391.2 | $ | 7,889.7 | $ | 3,260.0 | $ | 240.5 | $ | 1.0 | |||||||
Residential Real Estate | 5,115.2 | 121.9 | 284.6 | 340.3 | 4,368.4 | ||||||||||||
Non-U.S. | 597.9 | 469.5 | 82.7 | 31.8 | 13.9 | ||||||||||||
Other | 49.0 | 49.0 | — | — | — | ||||||||||||
Total Personal | $ | 17,153.3 | $ | 8,530.1 | $ | 3,627.3 | $ | 612.6 | $ | 4,383.3 | |||||||
Total Variable Rate | $ | 31,676.1 | $ | 14,216.7 | $ | 11,218.4 | $ | 1,847.8 | $ | 4,393.2 | |||||||
Total Loans and Leases | $ | 33,759.7 | $ | 14,434.9 | $ | 11,998.1 | $ | 2,624.2 | $ | 4,702.5 |
2020 Annual Report | Northern Trust Corporation 55
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DECEMBER 31, | ||||||||
($ In Millions) | 2020 | 2019 | ||||||
Nonaccrual Loans and Leases | ||||||||
Commercial | ||||||||
Commercial and Institutional | $ | 26.4 | $ | 7.6 | ||||
Commercial Real Estate | 40.2 | 3.6 | ||||||
Total Commercial | $ | 66.6 | $ | 11.2 | ||||
Personal | ||||||||
Residential Real Estate | $ | 62.2 | $ | 71.4 | ||||
Private Client | 2.9 | 0.5 | ||||||
Non-U.S. | — | 0.5 | ||||||
Total Personal | $ | 65.1 | $ | 72.4 | ||||
Total Nonaccrual Loans and Leases | 131.7 | 83.6 | ||||||
Other Real Estate Owned | 0.7 | 3.2 | ||||||
Total Nonaccrual Assets | $ | 132.4 | $ | 86.8 | ||||
90 Day Past Due Loans Still Accruing | $ | 8.9 | $ | 7.4 | ||||
Nonaccrual Loans and Leases to Total Loans and Leases | 0.39 | % | 0.27 | % | ||||
Allowance for Credit Losses Assigned to Loans and Leases to Nonaccrual Loans and Leases | 1.4 | x | 1.3 | x |
56 2020 Annual Report | Northern Trust Corporation
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($ in Millions) | 2020 | 2019 | 2018 | ||||||||
Net Recoveries (Charge-Offs) to Average Loans and Leases | |||||||||||
Commercial | |||||||||||
Commercial and Institutional | 0.02 | % | (0.03) | % | 0.02 | % | |||||
Commercial Real Estate | (0.18) | 0.02 | (0.02) | ||||||||
Total Commercial | (0.03) | (0.02) | 0.01 | ||||||||
Personal | |||||||||||
Private Client | — | — | (0.01) | ||||||||
Residential Real Estate | 0.02 | 0.04 | (0.01) | ||||||||
Total Personal | — | 0.02 | (0.01) | ||||||||
Total Net Recoveries (Charge-Offs) to Average Loans and Leases | (0.01) | % | — | % | — | % | |||||
Net Recoveries (Charge-Offs) | |||||||||||
Commercial | |||||||||||
Commercial and Institutional | $ | 1.8 | $ | (2.6) | $ | 1.4 | |||||
Commercial Real Estate | (5.7) | 0.5 | (0.6) | ||||||||
Total Commercial | (3.9) | (2.1) | 0.8 | ||||||||
Personal | |||||||||||
Private Client | (0.5) | 0.3 | (1.3) | ||||||||
Residential Real Estate | 1.2 | 2.5 | (0.6) | ||||||||
Total Personal | 0.7 | 2.8 | (1.9) | ||||||||
Total Net Recoveries (Charge-Offs) | $ | (3.2) | $ | 0.7 | $ | (1.1) | |||||
Average Loans and Leases | |||||||||||
Commercial | |||||||||||
Commercial and Institutional | $ | 10,347.1 | $ | 8,979.9 | $ | 9,047.2 | |||||
Commercial Real Estate | 3,253.8 | 2,918.1 | 3,072.8 | ||||||||
Total Select Commercial | 13,600.9 | 11,898.0 | 12,120.0 | ||||||||
Personal | |||||||||||
Private Client | 11,452.9 | 10,746.0 | 10,413.3 | ||||||||
Residential Real Estate | 6,116.4 | 6,297.2 | 7,034.4 | ||||||||
Total Select Personal | 17,569.3 | 17,043.2 | 17,447.7 | ||||||||
Total Select Average Loans and Leases | $ | 31,170.2 | $ | 28,941.2 | $ | 29,567.7 |
2020 Annual Report | Northern Trust Corporation 57
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DECEMBER 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
($ In Millions) |
ALLOWANCE
AMOUNT |
PERCENT OF LOANS TO TOTAL LOANS |
ALLOWANCE
AMOUNT |
PERCENT OF LOANS TO TOTAL LOANS | ||||||||||
Evaluated on an Individual Basis | $ | 10.7 | — | % | $ | 6.9 | — | % | ||||||
Evaluated on a Collective Basis | ||||||||||||||
Commercial | ||||||||||||||
Commercial and Institutional | 100.6 | 30 | 35.3 | 29 | ||||||||||
Commercial Real Estate | 70.7 | 10 | 33.0 | 10 | ||||||||||
Lease Financing, net | 0.4 | — | 0.1 | — | ||||||||||
Non-U.S. | 17.7 | 4 | — | 5 | ||||||||||
Other | — | 1 | 0.2 | 1 | ||||||||||
Total Commercial | 189.4 | 45 | 68.6 | 45 | ||||||||||
Personal | ||||||||||||||
Residential Real Estate | 28.9 | 18 | 27.0 | 19 | ||||||||||
Private Client | 20.6 | 35 | 20.5 | 35 | ||||||||||
Non-U.S. | 2.2 | 2 | — | 1 | ||||||||||
Other | — | — | 1.4 | — | ||||||||||
Total Personal | 51.7 | 55 | 48.9 | 55 | ||||||||||
Total Allowance Evaluated on a Collective Basis | $ | 241.1 | 100 | % | $ | 117.5 | 100 | % | ||||||
Total Allowance for Credit Losses | $ | 251.8 | 100 | % | $ | 124.4 | 100 | % | ||||||
Allowance Assigned to: | ||||||||||||||
Loans and Leases | $ | 190.7 | $ | 104.5 | ||||||||||
Undrawn Commitments and Standby Letters of Credit | 61.1 | 19.9 | ||||||||||||
Total Allowance for Credit Losses | $ | 251.8 | $ | 124.4 | ||||||||||
Allowance Assigned to Loans and Leases to Total Loans and Leases | 0.56 | % | 0.33 | % |
58 2020 Annual Report | Northern Trust Corporation
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DECEMBER 31, 2020 | |||||||||||
U.S. OFFICE | NON-U.S. OFFICES | ||||||||||
(In Millions) | CERTIFICATES OF DEPOSIT | OTHER TIME | TOTAL | ||||||||
3 Months or Less | $ | 266.1 | $ | 205.4 | $ | 471.5 | |||||
Over 3 Months through 6 Months | 83.6 | — | 83.6 | ||||||||
Over 6 Months through 12 Months | 310.5 | — | 310.5 | ||||||||
Over 12 Months | 41.2 | — | 41.2 | ||||||||
Total | $ | 701.4 | $ | 205.4 | $ | 906.8 |
2020 Annual Report | Northern Trust Corporation 59
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($ In Millions) | 2020 | 2019 | ||||||
Total Assets | $ | 26,908.5 | $ | 27,240.7 | ||||
Time Deposits with Banks | 3,258.5 | 3,896.5 | ||||||
Loans | 1,742.5 | 1,721.1 | ||||||
Non-U.S. Investments | 16,018.5 | 15,420.6 | ||||||
Total Liabilities | 70,001.5 | 62,110.3 | ||||||
Deposits | 68,828.9 | 60,419.7 |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions) | 2020 | 2019 | 2018 | ||||||||
Net cash provided by (used in): | |||||||||||
Operating activities | $ | 1,896.8 | $ | 2,592.0 | $ | 1,767.5 | |||||
Investing activities | (29,923.0) | (3,405.0) | 4,327.1 | ||||||||
Financing activities | 27,871.9 | 615.9 | (5,818.2) | ||||||||
Effect of Foreign Currency Exchange Rates on Cash | 84.6 | 74.7 | (212.9) | ||||||||
Change in Cash and Due from Banks | $ | (69.7) | $ | (122.4) | $ | 63.5 |
60 2020 Annual Report | Northern Trust Corporation
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2020 Annual Report | Northern Trust Corporation 61
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($ In Millions) | DECEMBER 31, 2020 | DECEMBER 31, 2019 | ||||||||||||
STANDARDIZED APPROACH | ADVANCED APPROACH | STANDARDIZED APPROACH | ADVANCED APPROACH | |||||||||||
Common Equity Tier 1 Capital | ||||||||||||||
Common Stockholders’ Equity | $ | 10,803.4 | $ | 10,803.4 | $ | 9,817.5 | $ | 9,817.5 | ||||||
Goodwill and Other Intangible Assets, net of Deferred Tax Liability | (775.7) | (775.7) | (776.1) | (776.1) | ||||||||||
Other | (65.5) | (65.5) | (142.7) | (142.7) | ||||||||||
Total Common Equity Tier 1 Capital | 9,962.2 | 9,962.2 | 8,898.7 | 8,898.7 | ||||||||||
Additional Tier 1 Capital | ||||||||||||||
Preferred Stock | 884.9 | 884.9 | 1,273.4 | 1,273.4 | ||||||||||
Other | (24.9) | (24.9) | (20.1) | (20.1) | ||||||||||
Total Additional Tier 1 Capital | 860.0 | 860.0 | 1,253.3 | 1,253.3 | ||||||||||
Total Tier 1 Capital | 10,822.2 | 10,822.2 | 10,152.0 | 10,152.0 | ||||||||||
Tier 2 Capital | ||||||||||||||
Qualifying Allowance for Credit Losses | 259.9 | — | 124.4 | — | ||||||||||
Qualifying Subordinated Debt | 949.7 | 949.7 | 1,099.5 | 1,099.5 | ||||||||||
Floating Rate Capital | 53.9 | 53.9 | 80.8 | 80.8 | ||||||||||
Total Tier 2 Capital | 1,263.5 | 1,003.6 | 1,304.7 | 1,180.3 | ||||||||||
Total Risk-Based Capital | $ | 12,085.7 | $ | 11,825.8 | $ | 11,456.7 | $ | 11,332.3 | ||||||
Risk-Weighted Assets(1)
|
$ | 77,662.5 | $ | 74,460.4 | $ | 70,088.3 | $ | 67,526.9 | ||||||
Total Assets – End of Period (EOP) | 170,003.9 | 170,003.9 | 136,828.4 | 136,828.4 | ||||||||||
Adjusted Average Fourth Quarter Assets(2)
|
142,457.6 | 142,457.6 | 117,165.7 | 117,165.7 | ||||||||||
Total Loans and Leases – EOP | 33,759.7 | 33,759.7 | 31,409.6 | 31,409.6 | ||||||||||
Common Stockholders’ Equity to: | ||||||||||||||
Total Loans and Leases – EOP | 32.00 | % | 32.00 | % | 31.26 | % | 31.26 | % | ||||||
Total Assets – EOP | 6.35 | 6.35 | 7.18 | 7.18 | ||||||||||
Risk-Based Capital Ratios | ||||||||||||||
Common Equity Tier 1 Capital | 12.8 | % | 13.4 | % | 12.7 | % | 13.2 | % | ||||||
Tier 1 Capital | 13.9 | 14.5 | 14.5 | 15.0 | ||||||||||
Total Capital (Tier 1 and Tier 2) | 15.6 | 15.9 | 16.3 | 16.8 | ||||||||||
Tier 1 Leverage | 7.6 | 7.6 | 8.7 | 8.7 | ||||||||||
Supplementary Leverage(3)
|
N/A | 8.6 | N/A | 7.6 |
62 2020 Annual Report | Northern Trust Corporation
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64 2020 Annual Report | Northern Trust Corporation
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2020 Annual Report | Northern Trust Corporation 65
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($ In Millions) |
25 BASIS
POINT INCREASE |
25 BASIS
POINT DECREASE |
||||||
Increase (Decrease) in 2021 Pension Expense | ||||||||
Discount Rate Change | $ | (4.4) | $ | 4.6 | ||||
Compensation Level Change | 2.5 | (2.5) | ||||||
Rate of Return on Plan Assets Change | (3.8) | 3.8 | ||||||
Increase (Decrease) in 2020 Projected Benefit Obligation | ||||||||
Discount Rate Change | (58.0) | 61.4 | ||||||
Compensation Level Change | 10.8 | (10.4) |
66 2020 Annual Report | Northern Trust Corporation
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2020 Annual Report | Northern Trust Corporation 67
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Northern Trust Corporation Board of Directors | |||||||||||
Audit Committee | Business Risk Committee | Capital Governance Committee | Compensation and Benefits Committee | ||||||||
-Cybersecurity Risk Oversight Subcommittee |
Global Enterprise Risk Committee (GERC) | |||||||||||||||||
Credit Risk Committee | Operational Risk Committee | Fiduciary Risk Committee | Compliance & Ethics Oversight Committee | Market & Liquidity Risk Committee | Model Risk Oversight Committee |
68 2020 Annual Report | Northern Trust Corporation
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AS OF DECEMBER 31, 2020 | COMMITMENT EXPIRATION | |||||||||||||
($ In Millions) |
TOTAL
COMMITMENTS |
ONE YEAR
AND LESS |
OVER ONE
YEAR |
OUTSTANDING
LOANS |
||||||||||
Commercial | ||||||||||||||
Commercial and Institutional | ||||||||||||||
Finance and Insurance | $ | 4,435.8 | $ | 2,454.1 | $ | 1,981.7 | $ | 3,085.0 | ||||||
Holding Companies | — | — | — | 28.8 | ||||||||||
Manufacturing | 6,945.6 | 1,061.3 | 5,884.3 | 1,422.8 | ||||||||||
Mining | 785.6 | 259.5 | 526.1 | 5.2 | ||||||||||
Public Administration | 98.4 | 98.4 | — | 24.1 | ||||||||||
Retail Trade | 903.1 | 350.5 | 552.6 | 164.0 | ||||||||||
Services | 6,150.7 | 2,626.4 | 3,524.3 | 4,329.0 | ||||||||||
Transportation and Warehousing | 283.1 | 0.2 | 282.9 | 214.2 | ||||||||||
Utilities | 1,286.2 | 38.3 | 1,247.9 | 7.2 | ||||||||||
Wholesale Trade | 749.6 | 108.4 | 641.2 | 427.3 | ||||||||||
Other Commercial | 195.2 | 100.9 | 94.3 | 350.7 | ||||||||||
Commercial and Institutional(1)
|
21,833.3 | 7,098.0 | 14,735.3 | 10,058.3 | ||||||||||
Commercial Real Estate | 252.3 | 93.0 | 159.3 | 3,558.4 | ||||||||||
Lease Financing, net | — | — | — | 11.4 | ||||||||||
Non-U.S. | 1,250.2 | 609.0 | 641.2 | 1,345.7 | ||||||||||
Other | 106.1 | 106.1 | — | 288.2 | ||||||||||
Total Commercial | 23,441.9 | 7,906.1 | 15,535.8 | 15,262.0 | ||||||||||
Personal | ||||||||||||||
Residential Real Estate | 676.1 | 91.2 | 584.9 | 6,035.7 | ||||||||||
Private Client | 4,248.9 | 3,014.0 | 1,234.9 | 11,815.1 | ||||||||||
Non-U.S. | 571.6 | 249.2 | 322.4 | 597.9 | ||||||||||
Other | — | — | — | 49.0 | ||||||||||
Total Personal | 5,496.6 | 3,354.4 | 2,142.2 | 18,497.7 | ||||||||||
Total | $ | 28,938.5 | $ | 11,260.5 | $ | 17,678.0 | $ | 33,759.7 |
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CREDIT RATING | |||||||||||
STANDARD &
POOR’S |
MOODY’S | FITCH RATINGS | |||||||||
Northern Trust Corporation: | |||||||||||
Senior Debt | A+ | A2 | A+ | ||||||||
Subordinated Debt | A | A2 | A+ | ||||||||
Preferred Stock | BBB+ | Baa1 | BBB | ||||||||
Trust Preferred Capital Securities | BBB+ | A3 | BBB+ | ||||||||
Outlook | Stable | Stable | Stable | ||||||||
The Northern Trust Company: | |||||||||||
Short-Term Deposit | A-1+ | P-1 | F1+ | ||||||||
Long-Term Deposit/Debt | AA- | Aa2 | AA | ||||||||
Subordinated Debt | A+ | A2 | A+ | ||||||||
Outlook | Stable | Stable | Stable |
PAYMENT DUE BY PERIOD | |||||||||||||||||
($ In Millions) | TOTAL |
ONE YEAR
AND LESS |
1-3
YEARS |
3-5 YEARS |
OVER 5
YEARS |
||||||||||||
Senior Notes(1)
|
$ | 3,122.4 | $ | 499.8 | $ | 499.6 | $ | — | $ | 2,123.0 | |||||||
Subordinated Debt(1)
|
1,189.3 | — | — | 839.8 | 349.5 | ||||||||||||
Floating Rate Capital Debt(1)
|
277.8 | — | — | — | 277.8 | ||||||||||||
Operating Leases(2)
|
801.5 | 99.1 | 178.2 | 151.7 | 372.5 | ||||||||||||
Purchase Obligations(3)
|
710.3 | 213.9 | 360.8 | 128.8 | 6.8 | ||||||||||||
Total Contractual Obligations | $ | 6,101.3 | $ | 812.8 | $ | 1,038.6 | $ | 1,120.3 | $ | 3,129.6 |
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($ 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 | $ | 249 | |||
200 Basis Points | 451 | ||||
DECREASE IN INTEREST RATES BELOW MARKET IMPLIED FORWARD RATES | |||||
100 Basis Points | $ | 114 |
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($ In Millions) |
INCREASE/(DECREASE)
ESTIMATED IMPACT ON MARKET VALUE OF EQUITY |
||||
INCREASE IN INTEREST RATES ABOVE MARKET IMPLIED FORWARD RATES | |||||
100 Basis Points | $ | 558 | |||
200 Basis Points | 551 | ||||
DECREASE IN INTEREST RATES BELOW MARKET IMPLIED FORWARD RATES | |||||
100 Basis Points | $ | 328 |
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($ In Millions) |
TOTAL VaR
(FX AND IR DRIVERS) |
FX VaR (FX DRIVERS ONLY) | IR VaR (IR DRIVERS ONLY) | |||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||
High | $ | 1.8 | $ | 0.3 | $ | 1.9 | $ | 0.3 | $ | 1.0 | $ | 0.2 | ||||||||
Low | — | — | — | — | — | — | ||||||||||||||
Average | 0.3 | 0.1 | 0.1 | 0.1 | 0.2 | 0.1 | ||||||||||||||
As of December 31, | 0.3 | 0.1 | 0.3 | 0.1 | 0.2 | 0.1 |
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FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
($ In Millions) | 2020 | 2019 | 2018 | ||||||||
Net Interest Income | |||||||||||
Interest Income - GAAP | $ | 1,643.5 | $ | 2,499.9 | $ | 2,321.4 | |||||
Add: FTE Adjustment | 34.4 | 32.8 | 41.2 | ||||||||
Interest Income (FTE) - Non-GAAP | $ | 1,677.9 | $ | 2,532.7 | $ | 2,362.6 | |||||
Net Interest Income - GAAP | $ | 1,443.2 | $ | 1,677.9 | $ | 1,622.7 | |||||
Add: FTE Adjustment | 34.4 | 32.8 | 41.2 | ||||||||
Net Interest Income (FTE) - Non-GAAP | $ | 1,477.6 | $ | 1,710.7 | $ | 1,663.9 | |||||
Net Interest Margin - GAAP | 1.16 | % | 1.57 | % | 1.43 | % | |||||
Net Interest Margin (FTE) - Non-GAAP | 1.19 | % | 1.60 | % | 1.46 | % | |||||
Total Revenue | |||||||||||
Total Revenue - GAAP | $ | 6,100.8 | $ | 6,073.1 | $ | 5,960.2 | |||||
Add: FTE Adjustment | 34.4 | 32.8 | 41.2 | ||||||||
Total Revenue (FTE) - Non-GAAP | $ | 6,135.2 | $ | 6,105.9 | $ | 6,001.4 |
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STATEMENTS OF INCOME | 2020 | 2019 | ||||||||||||||||||||||||
($ In Millions Except Per Share Information) |
FOURTH
QUARTER |
THIRD
QUARTER |
SECOND
QUARTER |
FIRST
QUARTER |
FOURTH
QUARTER |
THIRD
QUARTER |
SECOND
QUARTER |
FIRST
QUARTER |
||||||||||||||||||
Trust, Investment and Other Servicing Fees | $ | 1,026.1 | $ | 1,003.8 | $ | 961.5 | $ | 1,003.6 | $ | 992.2 | $ | 975.5 | $ | 955.5 | $ | 928.9 | ||||||||||
Other Noninterest Income | 161.4 | 152.7 | 172.5 | 176.0 | 134.7 | 144.7 | 133.7 | 130.0 | ||||||||||||||||||
Net Interest Income | ||||||||||||||||||||||||||
Interest Income | 352.6 | 355.4 | 406.3 | 529.2 | 576.1 | 620.8 | 640.2 | 662.8 | ||||||||||||||||||
Interest Expense | 18.2 | 26.8 | 34.2 | 121.1 | 155.3 | 203.1 | 222.8 | 240.8 | ||||||||||||||||||
Net Interest Income | 334.4 | 328.6 | 372.1 | 408.1 | 420.8 | 417.7 | 417.4 | 422.0 | ||||||||||||||||||
Revenue | 1,521.9 | 1,485.1 | 1,506.1 | 1,587.7 | 1,547.7 | 1,537.9 | 1,506.6 | 1,480.9 | ||||||||||||||||||
Provision for Credit Losses | (2.5) | 0.5 | 66.0 | 61.0 | (1.0) | (7.0) | (6.5) | — | ||||||||||||||||||
Noninterest Expense | 1,151.0 | 1,094.7 | 1,036.9 | 1,065.6 | 1,072.3 | 1,036.3 | 1,006.2 | 1,028.7 | ||||||||||||||||||
Provision for Income Taxes | 132.5 | 95.4 | 89.9 | 100.5 | 105.3 | 124.0 | 117.5 | 105.1 | ||||||||||||||||||
Net Income | $ | 240.9 | $ | 294.5 | $ | 313.3 | $ | 360.6 | $ | 371.1 | $ | 384.6 | $ | 389.4 | $ | 347.1 | ||||||||||
Preferred Stock Dividends | 4.7 | 16.2 | 4.8 | 30.5 | 5.8 | 17.4 | 5.9 | 17.3 | ||||||||||||||||||
Net Income Applicable to Common Stock | $ | 236.2 | $ | 278.3 | $ | 308.5 | $ | 330.1 | $ | 365.3 | $ | 367.2 | $ | 383.5 | $ | 329.8 | ||||||||||
PER COMMON SHARE | ||||||||||||||||||||||||||
Net Income – Basic | $ | 1.13 | $ | 1.32 | $ | 1.47 | $ | 1.56 | $ | 1.71 | $ | 1.70 | $ | 1.76 | $ | 1.49 | ||||||||||
– Diluted | 1.12 | 1.32 | 1.46 | 1.55 | 1.70 | 1.69 | 1.75 | 1.48 | ||||||||||||||||||
AVERAGE BALANCE SHEET ASSETS | ||||||||||||||||||||||||||
Cash and Due from Banks | $ | 2,434.5 | $ | 2,293.3 | $ | 2,966.7 | $ | 2,723.0 | $ | 2,292.6 | $ | 2,551.5 | $ | 2,784.3 | $ | 1,940.7 | ||||||||||
Federal Reserve and Other Central Bank Deposits and Other(1)
|
29,896.2 | 31,602.3 | 30,299.0 | 19,826.2 | 17,230.0 | 17,524.9 | 19,236.2 | 20,163.2 | ||||||||||||||||||
Interest-Bearing Due from and Deposits with Banks(2)
|
5,449.0 | 4,816.1 | 5,505.7 | 5,838.1 | 6,073.9 | 5,656.5 | 5,811.9 | 6,452.2 | ||||||||||||||||||
Federal Funds Sold | 0.6 | 2.5 | 0.1 | 5.9 | 3.8 | 4.6 | 5.3 | 38.0 | ||||||||||||||||||
Securities Purchased under Agreements to Resell | 1,565.8 | 1,789.8 | 985.8 | 661.7 | 942.1 | 812.3 | 645.6 | 940.1 | ||||||||||||||||||
Securities(3)
|
61,227.4 | 58,072.1 | 52,884.4 | 51,963.2 | 51,919.0 | 50,024.9 | 48,911.2 | 51,889.3 | ||||||||||||||||||
Loans and Leases | 33,096.1 | 33,085.2 | 35,506.7 | 32,316.2 | 30,990.8 | 30,935.9 | 31,098.9 | 31,189.4 | ||||||||||||||||||
Allowance for Credit Losses | (222.7) | (218.4) | (160.2) | (109.9) | (105.5) | (111.2) | (115.1) | (114.0) | ||||||||||||||||||
Other Assets | 9,815.1 | 9,482.5 | 10,782.4 | 10,946.1 | 8,758.6 | 8,952.7 | 7,980.6 | 6,917.8 | ||||||||||||||||||
Total Assets | $ | 143,262.0 | $ | 140,925.4 | $ | 138,770.6 | $ | 124,170.5 | $ | 118,105.3 | $ | 116,352.1 | $ | 116,358.9 | $ | 119,416.7 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||
Demand and Other Noninterest-Bearing | $ | 26,997.5 | $ | 25,202.3 | $ | 21,856.7 | $ | 19,331.5 | $ | 17,462.9 | $ | 16,687.3 | $ | 17,826.5 | $ | 17,858.4 | ||||||||||
Savings, Money Market, and Other | 24,984.3 | 24,305.4 | 24,017.0 | 20,251.2 | 18,130.2 | 17,802.7 | 15,950.9 | 14,372.8 | ||||||||||||||||||
Savings Certificates and Other Time | 1,198.3 | 1,502.1 | 1,403.6 | 959.8 | 919.0 | 898.9 | 888.6 | 761.4 | ||||||||||||||||||
Non-U.S. Offices – Interest-Bearing | 61,943.6 | 61,834.9 | 63,592.7 | 54,543.3 | 52,925.8 | 53,631.5 | 54,679.9 | 58,377.2 | ||||||||||||||||||
Total Deposits | 115,123.7 | 112,844.7 | 110,870.0 | 95,085.8 | 89,437.9 | 89,020.4 | 89,345.9 | 91,369.8 | ||||||||||||||||||
Federal Funds Purchased | 562.7 | 275.6 | 1,181.0 | 1,916.5 | 856.6 | 595.4 | 1,298.3 | 2,342.9 | ||||||||||||||||||
Securities Sold under Agreements to Repurchase | 183.6 | 185.3 | 170.7 | 334.3 | 281.0 | 340.3 | 394.5 | 340.7 | ||||||||||||||||||
Other Borrowings | 5,984.4 | 6,167.8 | 6,008.4 | 7,450.6 | 7,632.9 | 7,833.1 | 7,734.8 | 7,810.4 | ||||||||||||||||||
Senior Notes | 3,315.4 | 3,666.3 | 3,332.9 | 2,615.1 | 2,584.6 | 2,587.7 | 2,361.4 | 2,014.1 | ||||||||||||||||||
Long-Term Debt | 1,190.9 | 1,199.0 | 1,198.3 | 1,168.7 | 1,154.0 | 1,156.7 | 1,131.6 | 1,112.9 | ||||||||||||||||||
Floating Rate Capital Debt | 277.8 | 277.7 | 277.7 | 277.7 | 277.7 | 277.7 | 277.6 | 277.6 | ||||||||||||||||||
Other Liabilities | 5,090.4 | 4,906.1 | 4,690.2 | 4,534.8 | 4,948.0 | 3,853.0 | 3,276.7 | 3,719.5 | ||||||||||||||||||
Stockholders’ Equity | 11,533.1 | 11,402.9 | 11,041.4 | 10,787.0 | 10,932.6 | 10,687.8 | 10,538.1 | 10,428.8 | ||||||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 143,262.0 | $ | 140,925.4 | $ | 138,770.6 | $ | 124,170.5 | $ | 118,105.3 | $ | 116,352.1 | $ | 116,358.9 | $ | 119,416.7 |
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DECEMBER 31, | ||||||||
(In Millions Except Share Information) | 2020 | 2019 | ||||||
ASSETS | ||||||||
Cash and Due from Banks | $ | 4,389.5 | $ | 4,459.2 | ||||
Federal Reserve and Other Central Bank Deposits | 55,503.6 | 33,886.0 | ||||||
Interest-Bearing Deposits with Banks | 4,372.6 | 4,877.1 | ||||||
Federal Funds Sold | — | 5.0 | ||||||
Securities Purchased under Agreements to Resell | 1,596.5 | 707.8 | ||||||
Debt Securities | ||||||||
Available for Sale (Amortized cost of $41,155.7 and $38,722.2)
|
42,022.0 | 38,876.3 | ||||||
Held to Maturity (Fair value of $17,797.4 and $12,249.3)
|
17,791.1 | 12,284.5 | ||||||
Trading Account | 0.5 | 0.3 | ||||||
Total Debt Securities | 59,813.6 | 51,161.1 | ||||||
Loans and Leases | ||||||||
Commercial | 15,262.0 | 14,001.3 | ||||||
Personal | 18,497.7 | 17,408.3 | ||||||
Total Loans and Leases (Net of unearned income of $9.8 and $14.1)
|
33,759.7 | 31,409.6 | ||||||
Allowance for Credit Losses | (198.8) | (104.5) | ||||||
Buildings and Equipment | 514.9 | 483.3 | ||||||
Client Security Settlement Receivables | 1,160.2 | 845.7 | ||||||
Goodwill | 707.2 | 696.8 | ||||||
Other Assets | 8,384.9 | 8,401.3 | ||||||
Total Assets | $ | 170,003.9 | $ | 136,828.4 | ||||
LIABILITIES | ||||||||
Deposits | ||||||||
Demand and Other Noninterest-Bearing | $ | 17,728.5 | $ | 14,114.7 | ||||
Savings, Money Market and Other Interest-Bearing | 28,631.8 | 21,441.5 | ||||||
Savings Certificates and Other Time | 937.1 | 986.7 | ||||||
Non U.S. Offices — Noninterest-Bearing | 25,382.2 | 12,177.4 | ||||||
— Interest-Bearing | 71,198.4 | 60,400.3 | ||||||
Total Deposits | 143,878.0 | 109,120.6 | ||||||
Federal Funds Purchased | 260.2 | 552.9 | ||||||
Securities Sold Under Agreements to Repurchase | 39.8 | 489.7 | ||||||
Other Borrowings | 4,011.5 | 6,744.8 | ||||||
Senior Notes | 3,122.4 | 2,573.0 | ||||||
Long-Term Debt | 1,189.3 | 1,148.1 | ||||||
Floating Rate Capital Debt | 277.8 | 277.7 | ||||||
Other Liabilities | 5,536.6 | 4,830.6 | ||||||
Total Liabilities | 158,315.6 | 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 208,289,178 and 209,709,046
|
408.6 | 408.6 | ||||||
Additional Paid-In Capital | 963.6 | 1,013.1 | ||||||
Retained Earnings | 12,207.7 | 11,656.7 | ||||||
Accumulated Other Comprehensive Income (Loss) | 428.0 | (194.7) | ||||||
Treasury Stock (36,882,346 and 35,462,478 shares, at cost)
|
(3,204.5) | (3,066.1) | ||||||
Total Stockholders’ Equity | 11,688.3 | 11,091.0 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 170,003.9 | $ | 136,828.4 |
90 2020 Annual Report | Northern Trust Corporation
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FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions Except Share Information) | 2020 | 2019 | 2018 | ||||||||
Noninterest Income | |||||||||||
Trust, Investment and Other Servicing Fees | $ | 3,995.0 | $ | 3,852.1 | $ | 3,753.7 | |||||
Foreign Exchange Trading Income | 290.4 | 250.9 | 307.2 | ||||||||
Treasury Management Fees | 45.4 | 44.5 | 51.8 | ||||||||
Security Commissions and Trading Income | 133.2 | 103.6 | 98.3 | ||||||||
Other Operating Income | 194.0 | 145.5 | 127.5 | ||||||||
Investment Security Gains (Losses), net (Note) | (0.4) | (1.4) | (1.0) | ||||||||
Total Noninterest Income | 4,657.6 | 4,395.2 | 4,337.5 | ||||||||
Net Interest Income | |||||||||||
Interest Income | 1,643.5 | 2,499.9 | 2,321.4 | ||||||||
Interest Expense | 200.3 | 822.0 | 698.7 | ||||||||
Net Interest Income | 1,443.2 | 1,677.9 | 1,622.7 | ||||||||
Provision for Credit Losses | 125.0 | (14.5) | (14.5) | ||||||||
Net Interest Income after Provision for Credit Losses | 1,318.2 | 1,692.4 | 1,637.2 | ||||||||
Noninterest Expense | |||||||||||
Compensation | 1,947.1 | 1,859.0 | 1,806.9 | ||||||||
Employee Benefits | 387.7 | 355.2 | 356.7 | ||||||||
Outside Services | 763.1 | 774.5 | 739.4 | ||||||||
Equipment and Software | 673.5 | 612.1 | 582.2 | ||||||||
Occupancy | 230.1 | 212.9 | 201.1 | ||||||||
Other Operating Expense | 346.7 | 329.8 | 330.6 | ||||||||
Total Noninterest Expense | 4,348.2 | 4,143.5 | 4,016.9 | ||||||||
Income before Income Taxes | 1,627.6 | 1,944.1 | 1,957.8 | ||||||||
Provision for Income Taxes | 418.3 | 451.9 | 401.4 | ||||||||
NET INCOME | $ | 1,209.3 | $ | 1,492.2 | $ | 1,556.4 | |||||
Preferred Stock Dividends | 56.2 | 46.4 | 46.4 | ||||||||
Net Income Applicable to Common Stock | $ | 1,153.1 | $ | 1,445.8 | $ | 1,510.0 | |||||
PER COMMON SHARE | |||||||||||
Net Income – Basic | $ | 5.48 | $ | 6.66 | $ | 6.68 | |||||
– Diluted | 5.46 | 6.63 | 6.64 | ||||||||
Average Number of Common Shares Outstanding – Basic | 208,319,412 | 214,525,547 | 223,148,335 | ||||||||
– Diluted | 209,007,986 | 215,601,149 | 224,488,326 | ||||||||
Note: Changes in Other-Than-Temporary-Impairment (OTTI) Losses
prior to the adoption of ASU 2016-13
|
$ | — | $ | (0.3) | $ | (0.5) | |||||
Other Security Gains (Losses), net | (0.4) | (1.1) | (0.5) | ||||||||
Investment Security Gains (Losses), net | $ | (0.4) | $ | (1.4) | $ | (1.0) |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions) | 2020 | 2019 | 2018 | ||||||||
Net Income | $ | 1,209.3 | $ | 1,492.2 | $ | 1,556.4 | |||||
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications) | |||||||||||
Net Unrealized Gains on Debt Securities Available for Sale | 527.8 | 228.9 | (22.3) | ||||||||
Net Unrealized Gains (Losses) on Cash Flow Hedges | 0.5 | (7.7) | (1.4) | ||||||||
Net Foreign Currency Adjustments | 26.9 | 49.9 | 22.2 | ||||||||
Net Pension and Other Postretirement Benefit Adjustments | 67.5 | (12.1) | (12.6) | ||||||||
Other Comprehensive Income | 622.7 | 259.0 | (14.1) | ||||||||
Comprehensive Income | $ | 1,832.0 | $ | 1,751.2 | $ | 1,542.3 |
2020 Annual Report | Northern Trust Corporation 91
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(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, 2018 | $ | 882.0 | $ | 408.6 | $ | 1,047.2 | $ | 9,685.1 | $ | (414.3) | $ | (1,392.4) | $ | 10,216.2 | |||||||||
Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income | — | — | — | 25.3 | (25.3) | — | — | ||||||||||||||||
Change in Accounting Principle | — | — | — | (4.5) | — | — | (4.5) | ||||||||||||||||
Net income | — | — | — | 1,556.4 | — | — | 1,556.4 | ||||||||||||||||
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications) | — | — | — | — | (14.1) | — | (14.1) | ||||||||||||||||
Dividends Declared: | |||||||||||||||||||||||
Common Stock, $1.94 per share
|
— | — | — | (439.1) | — | — | (439.1) | ||||||||||||||||
Preferred Stock | — | — | — | (46.4) | — | — | (46.4) | ||||||||||||||||
Stock Awards and Options Exercised | — | — | 21.3 | — | — | 142.8 | 164.1 | ||||||||||||||||
Stock Purchased | — | — | — | — | — | (924.3) | (924.3) | ||||||||||||||||
Balance at December 31, 2018 | $ | 882.0 | $ | 408.6 | $ | 1,068.5 | $ | 10,776.8 | $ | (453.7) | $ | (2,173.9) | $ | 10,508.3 | |||||||||
Net income | — | — | — | 1,492.2 | — | — | 1,492.2 | ||||||||||||||||
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications) | — | — | — | — | 259.0 | — | 259.0 | ||||||||||||||||
Dividends Declared: | |||||||||||||||||||||||
Common Stock, $2.60 per share
|
— | — | — | (565.9) | — | — | (565.9) | ||||||||||||||||
Preferred Stock | — | — | — | (46.4) | — | — | (46.4) | ||||||||||||||||
Issuance of Preferred Stock, Series E | 391.4 | — | — | — | — | — | 391.4 | ||||||||||||||||
Stock Awards and Options Exercised | — | — | (55.4) | — | — | 208.0 | 152.6 | ||||||||||||||||
Stock Purchased | — | — | — | — | — | (1,100.2) | (1,100.2) | ||||||||||||||||
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 | — | — | — | 1,209.3 | — | — | 1,209.3 | ||||||||||||||||
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications) | — | — | — | — | 622.7 | — | 622.7 | ||||||||||||||||
Dividends Declared: | |||||||||||||||||||||||
Common Stock, $2.80 per share
|
— | — | — | (592.0) | — | — | (592.0) | ||||||||||||||||
Preferred Stock | — | — | — | (44.7) | — | — | (44.7) | ||||||||||||||||
Redemption of Preferred Stock, Series C | (388.5) | — | — | (11.5) | — | — | (400.0) | ||||||||||||||||
Stock Awards and Options Exercised | — | — | (49.5) | — | — | 161.4 | 111.9 | ||||||||||||||||
Stock Purchased | — | — | — | — | — | (299.8) | (299.8) | ||||||||||||||||
Balance at December 31, 2020 | $ | 884.9 | $ | 408.6 | $ | 963.6 | $ | 12,207.7 | $ | 428.0 | $ | (3,204.5) | $ | 11,688.3 |
92 2020 Annual Report | Northern Trust Corporation
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FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions) | 2020 | 2019 | 2018 | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net Income | $ | 1,209.3 | $ | 1,492.2 | $ | 1,556.4 | |||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities | |||||||||||
Investment Security (Losses) Gains, net | 0.4 | 1.4 | 1.0 | ||||||||
Amortization and Accretion of Securities and Unearned Income, net | 88.9 | 64.6 | 95.9 | ||||||||
Provision for Credit Losses | 125.0 | (14.5) | (14.5) | ||||||||
Depreciation and Amortization | 500.3 | 458.9 | 460.9 | ||||||||
Change in Accrued Income Taxes | 25.4 | (70.7) | (130.0) | ||||||||
Pension Plan Contributions | (15.6) | (6.1) | (74.5) | ||||||||
Deferred Income Tax Provision | 16.4 | 34.3 | 10.5 | ||||||||
Change in Receivables | 4.5 | (50.3) | (197.0) | ||||||||
Change in Interest Payable | (23.6) | (23.6) | 28.5 | ||||||||
Change in Collateral With Derivative Counterparties, net | (17.8) | 1,154.0 | (699.6) | ||||||||
Other Operating Activities, net | (16.4) | (448.2) | 729.9 | ||||||||
Net Cash Provided by Operating Activities | 1,896.8 | 2,592.0 | 1,767.5 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Change in Federal Funds Sold | 5.0 | 129.0 | (113.0) | ||||||||
Change in Securities Purchased under Agreements to Resell | (700.9) | 357.3 | 218.7 | ||||||||
Change in Interest-Bearing Deposits with Banks | 712.6 | (614.6) | 1,073.8 | ||||||||
Net Change in Federal Reserve and Other Central Bank Deposits | (19,845.2) | (3,683.2) | 9,679.6 | ||||||||
Purchases of Debt Securities – Held to Maturity | (40,187.9) | (14,154.3) | (21,463.1) | ||||||||
Proceeds from Maturity and Redemption of Debt Securities – Held to Maturity | 35,658.6 | 16,290.9 | 20,036.7 | ||||||||
Purchases of Debt Securities – Available for Sale | (10,886.8) | (12,811.0) | (12,596.9) | ||||||||
Proceeds from Sale, Maturity and Redemption of Debt Securities – Available for Sale | 8,748.2 | 11,057.2 | 8,958.7 | ||||||||
Change in Loans and Leases | (2,316.7) | 1,087.9 | 66.1 | ||||||||
Purchases of Buildings and Equipment | (135.8) | (158.0) | (97.6) | ||||||||
Purchases and Development of Computer Software | (424.6) | (441.8) | (408.4) | ||||||||
Change in Client Security Settlement Receivables | (226.8) | 821.0 | (49.7) | ||||||||
Acquisition of a Business, Net of Cash Received | — | (10.5) | (104.2) | ||||||||
Bank-Owned Life Insurance Policy Premiums | — | (1,500.0) | — | ||||||||
Other Investing Activities, net | (322.7) | 225.1 | (873.6) | ||||||||
Net Cash (Used in) Provided by Investing Activities | (29,923.0) | (3,405.0) | 4,327.1 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Change in Deposits | 32,137.9 | 4,263.6 | (6,163.2) | ||||||||
Change in Federal Funds Purchased | (292.7) | (2,041.3) | 308.1 | ||||||||
Change in Securities Sold under Agreements to Repurchase | (450.0) | 320.9 | (665.2) | ||||||||
Change in Short-Term Other Borrowings | (2,698.3) | (1,184.5) | 1,860.9 | ||||||||
Redemption of Preferred Stock - Series C | (400.0) | — | — | ||||||||
Proceeds from Senior Notes | 993.2 | 498.0 | 497.9 | ||||||||
Repayments of Senior Notes | (508.6) | — | (314.3) | ||||||||
Proceeds from Issuance of Preferred Stock - Series E | — | 392.5 | — | ||||||||
Treasury Stock Purchased | (299.8) | (1,100.2) | (924.3) | ||||||||
Net Proceeds from Stock Options | 19.5 | 44.0 | 32.6 | ||||||||
Cash Dividends Paid on Common Stock | (584.6) | (529.7) | (405.4) | ||||||||
Cash Dividends Paid on Preferred Stock | (45.9) | (46.4) | (46.4) | ||||||||
Other Financing Activities, net | 1.2 | (1.0) | 1.1 | ||||||||
Net Cash Provided by (Used In) Financing Activities | 27,871.9 | 615.9 | (5,818.2) | ||||||||
Effect of Foreign Currency Exchange Rates on Cash | 84.6 | 74.7 | (212.9) | ||||||||
Change in Cash and Due from Banks | (69.7) | (122.4) | 63.5 | ||||||||
Cash and Due from Banks at Beginning of Year | 4,459.2 | 4,581.6 | 4,518.1 | ||||||||
Cash and Due from Banks at End of Year | $ | 4,389.5 | $ | 4,459.2 | $ | 4,581.6 | |||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||||||||
Interest Paid | $ | 226.8 | $ | 845.5 | $ | 670.2 | |||||
Income Taxes Paid | 327.7 | 437.0 | 493.5 | ||||||||
Transfers from Loans to OREO | 0.2 | 3.5 | 11.4 | ||||||||
Transfers from Available for Sale to Held to Maturity | 301.5 | 160.8 | — | ||||||||
Transfers to Leases Held For Sale from Leases | — | 53.6 | — |
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DECEMBER 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 | $35.3 million | Discounted Cash Flow | Conversion Rate | 1.62x | 1.62x | ||||||||||||||||||
Visa Class A Appreciation | 8.73% | 8.73% | |||||||||||||||||||||
Expected Duration | 12 | - | 33 months | 20 months |
DECEMBER 31, 2019 | |||||||||||||||||||||||
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 | $33.4 million | Discounted Cash Flow | Conversion Rate | 1.62x | 1.62x | ||||||||||||||||||
Visa Class A Appreciation | 8.54% | 8.54% | |||||||||||||||||||||
Expected Duration | 12 | - | 36 months | 22 months |
DECEMBER 31, 2020 | ||||||||||||||||||||
(In Millions) | LEVEL 1 | LEVEL 2 | LEVEL 3 | NETTING |
ASSETS/
LIABILITIES AT FAIR VALUE |
|||||||||||||||
Debt Securities | ||||||||||||||||||||
Available for Sale | ||||||||||||||||||||
U.S. Government | $ | 2,799.9 | $ | — | $ | — | $ | — | $ | 2,799.9 | ||||||||||
Obligations of States and Political Subdivisions | — | 3,083.6 | — | — | 3,083.6 | |||||||||||||||
Government Sponsored Agency | — | 24,956.7 | — | — | 24,956.7 | |||||||||||||||
Non-U.S. Government | — | 714.0 | — | — | 714.0 | |||||||||||||||
Corporate Debt | — | 2,539.6 | — | — | 2,539.6 | |||||||||||||||
Covered Bonds | — | 553.1 | — | — | 553.1 | |||||||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | — | 2,345.8 | — | — | 2,345.8 | |||||||||||||||
Other Asset-Backed | — | 3,997.5 | — | — | 3,997.5 | |||||||||||||||
Commercial Mortgage-Backed | — | 1,031.8 | — | — | 1,031.8 | |||||||||||||||
Total Available for Sale | 2,799.9 | 39,222.1 | — | — | 42,022.0 | |||||||||||||||
Trading Account | — | 0.5 | — | — | 0.5 | |||||||||||||||
Total Available for Sale and Trading Debt Securities | 2,799.9 | 39,222.6 | — | — | 42,022.5 | |||||||||||||||
Other Assets | ||||||||||||||||||||
Derivative Assets | ||||||||||||||||||||
Foreign Exchange Contracts | — | 4,260.7 | — | (3,505.3) | 755.4 | |||||||||||||||
Interest Rate Contracts | — | 297.5 | — | (2.5) | 295.0 | |||||||||||||||
Total Derivative Assets | — | 4,558.2 | — | (3,507.8) | 1,050.4 | |||||||||||||||
Other Liabilities | ||||||||||||||||||||
Derivative Liabilities | ||||||||||||||||||||
Foreign Exchange Contracts | — | 4,722.5 | — | (2,718.6) | 2,003.9 | |||||||||||||||
Interest Rate Contracts | — | 125.0 | — | (98.5) | 26.5 | |||||||||||||||
Other Financial Derivatives(1)
|
— | — | 35.3 | — | 35.3 | |||||||||||||||
Total Derivative Liabilities | $ | — | $ | 4,847.5 | $ | 35.3 | $ | (2,817.1) | $ | 2,065.7 |
2020 Annual Report | Northern Trust Corporation 105
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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 Derivatives 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 Derivative(1)
|
— | — | 33.4 | (12.5) | 20.9 | |||||||||||||||
Total Derivative Liabilities | $ | — | $ | 3,279.6 | $ | 33.4 | $ | (1,618.4) | $ | 1,694.6 |
LEVEL 3 LIABILITIES |
SWAPS RELATED TO SALE OF CERTAIN VISA CLASS B
COMMON SHARES |
|||||||
(In Millions) | 2020 | 2019 | ||||||
Fair Value at January 1 | $ | 33.4 | $ | 32.8 | ||||
Total (Gains) Losses: | ||||||||
Included in Earnings(1)
|
18.3 | 17.1 | ||||||
Purchases, Issues, Sales, and Settlements | ||||||||
Settlements | (16.4) | (16.5) | ||||||
Fair Value at December 31 | $ | 35.3 | $ | 33.4 | ||||
Unrealized Losses (Gains) Included in Earnings Related to Financial Instruments Held at December 31(1)
|
$ | 18.6 | $ | 12.3 |
106 2020 Annual Report | Northern Trust Corporation
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DECEMBER 31, 2020 | |||||||||||||||||||||||
FINANCIAL INSTRUMENT |
FAIR VALUE(1)
|
VALUATION
TECHNIQUE |
UNOBSERVABLE INPUTS | INPUT VALUES | WEIGHTED-AVERAGE INPUT VALUES | ||||||||||||||||||
Loans | $24.6 million | Market Approach | Discount factor applied to real estate collateral-based loans to reflect realizable value | 15.0% | – | 20.0% | 16.8% |
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% |
2020 Annual Report | Northern Trust Corporation 107
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DECEMBER 31, 2020 | |||||||||||||||||
FAIR VALUE | |||||||||||||||||
(In Millions) | BOOK VALUE |
TOTAL
FAIR VALUE |
LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
ASSETS | |||||||||||||||||
Cash and Due from Banks | $ | 4,389.5 | $ | 4,389.5 | $ | 4,389.5 | $ | — | $ | — | |||||||
Federal Reserve and Other Central Bank Deposits | 55,503.6 | 55,503.6 | — | 55,503.6 | — | ||||||||||||
Interest-Bearing Deposits with Banks | 4,372.6 | 4,372.6 | — | 4,372.6 | — | ||||||||||||
Securities Purchased under Agreements to Resell | 1,596.5 | 1,596.5 | — | 1,596.5 | — | ||||||||||||
Debt Securities | |||||||||||||||||
Available for Sale(1)
|
42,022.0 | 42,022.0 | 2,799.9 | 39,222.1 | — | ||||||||||||
Held to Maturity | 17,791.1 | 17,797.4 | 90.0 | 17,707.4 | — | ||||||||||||
Trading Account | 0.5 | 0.5 | — | 0.5 | — | ||||||||||||
Loans (excluding Leases) | |||||||||||||||||
Held for Investment | 33,558.0 | 34,017.5 | — | — | 34,017.5 | ||||||||||||
Client Security Settlement Receivables | 1,160.2 | 1,160.2 | — | 1,160.2 | — | ||||||||||||
Other Assets | |||||||||||||||||
Federal Reserve and Federal Home Loan Bank Stock | 275.0 | 275.0 | — | 275.0 | — | ||||||||||||
Community Development Investments | 919.6 | 919.6 | — | 919.6 | — | ||||||||||||
Employee Benefit and Deferred Compensation | 215.8 | 228.9 | 138.6 | 90.3 | — | ||||||||||||
LIABILITIES | |||||||||||||||||
Deposits | |||||||||||||||||
Demand, Noninterest-Bearing, Savings, Money Market and Other Interest-Bearing | $ | 71,742.5 | $ | 71,742.5 | $ | 71,742.5 | $ | — | $ | — | |||||||
Savings Certificates and Other Time | 937.1 | 943.0 | — | 943.0 | — | ||||||||||||
Non U.S. Offices Interest-Bearing | 71,198.4 | 71,198.4 | — | 71,198.4 | — | ||||||||||||
Federal Funds Purchased | 260.2 | 260.2 | — | 260.2 | — | ||||||||||||
Securities Sold Under Agreements to Repurchase | 39.8 | 39.8 | — | 39.8 | — | ||||||||||||
Other Borrowings | 4,011.5 | 4,012.7 | — | 4,012.7 | — | ||||||||||||
Senior Notes | 3,122.4 | 3,222.6 | — | 3,222.6 | — | ||||||||||||
Long-Term Debt | |||||||||||||||||
Subordinated Debt | 1,189.3 | 1,250.1 | — | 1,250.1 | — | ||||||||||||
Floating Rate Capital Debt | 277.8 | 264.6 | — | 264.6 | — | ||||||||||||
Other Liabilities | |||||||||||||||||
Standby Letters of Credit | 22.4 | 22.4 | — | — | 22.4 | ||||||||||||
Loan Commitments | 77.0 | 77.0 | — | — | 77.0 | ||||||||||||
DERIVATIVE INSTRUMENTS | |||||||||||||||||
Asset/Liability Management | |||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||
Assets | $ | 15.6 | $ | 15.6 | $ | — | $ | 15.6 | $ | — | |||||||
Liabilities | 311.8 | 311.8 | — | 311.8 | — | ||||||||||||
Interest Rate Contracts | |||||||||||||||||
Assets | 8.3 | 8.3 | — | 8.3 | — | ||||||||||||
Liabilities | 10.2 | 10.2 | — | 10.2 | — | ||||||||||||
Other Financial Derivatives | |||||||||||||||||
Liabilities(2)
|
35.3 | 35.3 | — | — | 35.3 | ||||||||||||
Client-Related and Trading | |||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||
Assets | 4,245.1 | 4,245.1 | — | 4,245.1 | — | ||||||||||||
Liabilities | 4,410.7 | 4,410.7 | — | 4,410.7 | — | ||||||||||||
Interest Rate Contracts | |||||||||||||||||
Assets | 289.2 | 289.2 | — | 289.2 | — | ||||||||||||
Liabilities | 114.8 | 114.8 | — | 114.8 | — |
108 2020 Annual Report | Northern Trust Corporation
|
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 | 5.0 | 5.0 | — | 5.0 | — | ||||||||||||
Securities Purchased under Agreements to Resell | 707.8 | 707.8 | — | 707.8 | — | ||||||||||||
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 | — |
2020 Annual Report | Northern Trust Corporation 109
|
DECEMBER 31, 2020 | ||||||||||||||
(In Millions) |
AMORTIZED
COST |
GROSS
UNREALIZED GAINS |
GROSS
UNREALIZED LOSSES |
FAIR
VALUE |
||||||||||
U.S. Government | $ | 2,728.8 | $ | 71.1 | $ | — | $ | 2,799.9 | ||||||
Obligations of States and Political Subdivisions | 2,927.8 | 155.9 | 0.1 | 3,083.6 | ||||||||||
Government Sponsored Agency | 24,595.1 | 388.5 | 26.9 | 24,956.7 | ||||||||||
Non-U.S. Government | 713.6 | 1.1 | 0.7 | 714.0 | ||||||||||
Corporate Debt | 2,459.9 | 79.8 | 0.1 | 2,539.6 | ||||||||||
Covered Bonds | 543.1 | 10.0 | — | 553.1 | ||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 2,281.7 | 64.7 | 0.6 | 2,345.8 | ||||||||||
Other Asset-Backed | 3,953.5 | 46.8 | 2.8 | 3,997.5 | ||||||||||
Commercial Mortgage-Backed | 952.2 | 79.7 | 0.1 | 1,031.8 | ||||||||||
Total | $ | 41,155.7 | $ | 897.6 | $ | 31.3 | $ | 42,022.0 |
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 |
DECEMBER 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 | $ | 300.9 | $ | 303.2 | $ | 1,732.8 | $ | 1,767.0 | $ | 695.1 | $ | 729.7 | $ | — | $ | — | $ | 2,728.8 | $ | 2,799.9 | ||||||||||||
Obligations of States and Political Subdivisions | 7.9 | 8.0 | 252.1 | 266.8 | 2,578.4 | 2,718.4 | 89.4 | 90.4 | 2,927.8 | 3,083.6 | ||||||||||||||||||||||
Government Sponsored Agency | 5,540.0 | 5,613.6 | 8,942.2 | 9,063.0 | 7,682.1 | 7,793.6 | 2,430.8 | 2,486.5 | 24,595.1 | 24,956.7 | ||||||||||||||||||||||
Non-U.S. Government | 414.3 | 414.6 | 40.6 | 40.8 | 258.7 | 258.6 | — | — | 713.6 | 714.0 | ||||||||||||||||||||||
Corporate Debt | 443.5 | 448.6 | 2,016.4 | 2,091.0 | — | — | — | — | 2,459.9 | 2,539.6 | ||||||||||||||||||||||
Covered Bonds | 108.2 | 108.6 | 434.9 | 444.5 | — | — | — | — | 543.1 | 553.1 | ||||||||||||||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 163.9 | 164.1 | 1,960.8 | 2,024.0 | 157.0 | 157.7 | — | — | 2,281.7 | 2,345.8 | ||||||||||||||||||||||
Other Asset-Backed | 517.4 | 525.9 | 2,903.1 | 2,937.8 | 436.0 | 436.8 | 97.0 | 97.0 | 3,953.5 | 3,997.5 | ||||||||||||||||||||||
Commercial Mortgage-Backed | 12.0 | 12.1 | 413.5 | 441.2 | 526.7 | 578.5 | — | — | 952.2 | 1,031.8 | ||||||||||||||||||||||
Total | $ | 7,508.1 | $ | 7,598.7 | $ | 18,696.4 | $ | 19,076.1 | $ | 12,334.0 | $ | 12,673.3 | $ | 2,617.2 | $ | 2,673.9 | $ | 41,155.7 | $ | 42,022.0 |
110 2020 Annual Report | Northern Trust Corporation
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AS OF DECEMBER 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 | $ | 52.3 | $ | 0.1 | $ | — | $ | — | $ | 52.3 | $ | 0.1 | ||||||||
Government Sponsored Agency | 2,402.3 | 13.6 | 2,528.7 | 13.3 | 4,931.0 | 26.9 | ||||||||||||||
Non-U.S. Government | 90.5 | 0.7 | — | — | 90.5 | 0.7 | ||||||||||||||
Corporate Debt | 66.6 | 0.1 | — | — | 66.6 | 0.1 | ||||||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 162.8 | 0.5 | 49.9 | 0.1 | 212.7 | 0.6 | ||||||||||||||
Other Asset-Backed | 176.8 | 0.2 | 792.3 | 2.6 | 969.1 | 2.8 | ||||||||||||||
Commercial Mortgage-Backed | 44.4 | 0.1 | — | — | 44.4 | 0.1 | ||||||||||||||
Total | $ | 2,995.7 | $ | 15.3 | $ | 3,370.9 | $ | 16.0 | $ | 6,366.6 | $ | 31.3 |
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 |
2020 Annual Report | Northern Trust Corporation 111
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DECEMBER 31, 2020 | ||||||||||||||
(In Millions) |
AMORTIZED
COST |
GROSS
UNREALIZED GAINS |
GROSS
UNREALIZED LOSSES |
FAIR
VALUE |
||||||||||
U.S. Government | $ | 90.0 | $ | — | $ | — | $ | 90.0 | ||||||
Obligations of States and Political Subdivisions | 2.1 | 0.1 | — | 2.2 | ||||||||||
Government Sponsored Agency | 3.0 | 0.3 | — | 3.3 | ||||||||||
Non-U.S. Government | 8,336.6 | 7.3 | 0.2 | 8,343.7 | ||||||||||
Corporate Debt | 588.0 | 6.5 | 0.1 | 594.4 | ||||||||||
Covered Bonds | 3,184.6 | 24.6 | 0.3 | 3,208.9 | ||||||||||
Certificates of Deposit | 807.2 | — | — | 807.2 | ||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 3,648.0 | 43.5 | 0.9 | 3,690.6 | ||||||||||
Other Asset-Backed | 677.0 | 0.9 | — | 677.9 | ||||||||||
Other | 454.6 | 1.1 | 76.5 | 379.2 | ||||||||||
Total | $ | 17,791.1 | $ | 84.3 | $ | 78.0 | $ | 17,797.4 |
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 |
DECEMBER 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 | $ | 90.0 | $ | 90.0 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 90.0 | $ | 90.0 | ||||||||||||
Obligations of States and Political Subdivisions | 1.4 | 1.4 | 0.7 | 0.8 | — | — | — | — | 2.1 | 2.2 | ||||||||||||||||||||||
Government Sponsored Agency | 0.5 | 0.5 | 1.3 | 1.4 | 0.8 | 0.9 | 0.4 | 0.5 | 3.0 | 3.3 | ||||||||||||||||||||||
Non-U.S. Government | 8,065.4 | 8,065.5 | 271.2 | 278.2 | — | — | — | — | 8,336.6 | 8,343.7 | ||||||||||||||||||||||
Corporate Debt | 126.2 | 126.3 | 461.8 | 468.1 | — | — | — | — | 588.0 | 594.4 | ||||||||||||||||||||||
Covered Bonds | 1,283.7 | 1,289.5 | 1,836.3 | 1,854.7 | 64.6 | 64.7 | — | — | 3,184.6 | 3,208.9 | ||||||||||||||||||||||
Certificates of Deposit | 807.2 | 807.2 | — | — | — | — | — | — | 807.2 | 807.2 | ||||||||||||||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 943.2 | 947.2 | 2,354.8 | 2,393.4 | 350.0 | 350.0 | — | — | 3,648.0 | 3,690.6 | ||||||||||||||||||||||
Other Asset-Backed | 239.4 | 239.7 | 433.4 | 433.9 | 4.2 | 4.3 | — | — | 677.0 | 677.9 | ||||||||||||||||||||||
Other | 36.6 | 36.0 | 247.7 | 230.3 | 53.7 | 48.2 | 116.6 | 64.7 | 454.6 | 379.2 | ||||||||||||||||||||||
Total | $ | 11,593.6 | $ | 11,603.3 | $ | 5,607.2 | $ | 5,660.8 | $ | 473.3 | $ | 468.1 | $ | 117.0 | $ | 65.2 | $ | 17,791.1 | $ | 17,797.4 |
112 2020 Annual Report | Northern Trust Corporation
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AS OF DECEMBER 31, 2020 | ||||||||||||||||||||
(In Millions) | AAA | AA | A | BBB | NOT RATED | TOTAL | ||||||||||||||
U.S. Government | $ | 90.0 | $ | — | $ | — | $ | — | $ | — | $ | 90.0 | ||||||||
Obligations of States and Political Subdivisions | — | 1.0 | — | 1.1 | — | 2.1 | ||||||||||||||
Government Sponsored Agency | 3.0 | — | — | — | — | 3.0 | ||||||||||||||
Non-U.S. Government | 319.8 | 1,337.4 | 6,630.6 | 48.8 | — | 8,336.6 | ||||||||||||||
Corporate Debt | 3.8 | 279.1 | 305.1 | — | — | 588.0 | ||||||||||||||
Covered Bonds | 3,184.6 | — | — | — | — | 3,184.6 | ||||||||||||||
Certificates of Deposit | — | — | — | — | 807.2 | 807.2 | ||||||||||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | 2,590.9 | 1,057.1 | — | — | — | 3,648.0 | ||||||||||||||
Other Asset-Backed | 677.0 | — | — | — | — | 677.0 | ||||||||||||||
Other | — | — | — | — | 454.6 | 454.6 | ||||||||||||||
Total | $ | 6,869.1 | $ | 2,674.6 | $ | 6,935.7 | $ | 49.9 | $ | 1,261.8 | $ | 17,791.1 | ||||||||
Percent of Total | 39 | % | 15 | % | 39 | % | — | % | 7 | % | 100 | % |
DECEMBER 31, | |||||||||||
(In Millions) | 2020 | 2019 | 2018 | ||||||||
Gross Realized Debt Securities Gains | $ | 3.4 | $ | 2.4 | $ | 1.5 | |||||
Gross Realized Debt Securities Losses | (3.8) | (3.5) | (2.0) | ||||||||
Changes in Other-Than-Temporary Impairment Losses(1)
|
— | (0.3) | (0.5) | ||||||||
Net Investment Security (Losses) Gains | $ | (0.4) | $ | (1.4) | $ | (1.0) |
2020 Annual Report | Northern Trust Corporation 113
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($ In Millions) | 2020 | 2019 | ||||||
Balance at December 31 | $ | 1,596.5 | $ | 707.8 | ||||
Average Balance During the Year | 1,253.1 | 835.0 | ||||||
Average Interest Rate Earned During the Year | 0.31 | % | 2.10 | % | ||||
Maximum Month-End Balance During the Year | $ | 2,055.6 | $ | 1,290.0 |
($ In Millions) | 2020 | 2019 | ||||||
Balance at December 31 | $ | 39.8 | $ | 489.7 | ||||
Average Balance During the Year | 218.3 | 339.0 | ||||||
Average Interest Rate Paid During the Year | 0.47 | % | 1.89 | % | ||||
Maximum Month-End Balance During the Year | $ | 269.8 | $ | 489.7 |
REMAINING CONTRACTUAL MATURITY OF THE AGREEMENTS | ||||||||
OVERNIGHT AND CONTINUOUS | ||||||||
($ In Millions) | December 31, 2020 | December 31, 2019 | ||||||
U.S. Treasury and Agency Securities | $ | 39.8 | $ | 489.7 | ||||
Total Borrowings | 39.8 | 489.7 | ||||||
Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 28 | 39.8 | 489.7 | ||||||
Amounts related to agreements not included in Note 28 | — | — |
114 2020 Annual Report | Northern Trust Corporation
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DECEMBER 31, | ||||||||
(In Millions) | 2020 | 2019 | ||||||
Commercial | ||||||||
Commercial and Institutional | $ | 10,058.3 | $ | 9,091.1 | ||||
Commercial Real Estate | 3,558.4 | 3,104.3 | ||||||
Non-U.S. | 1,345.7 | 1,576.3 | ||||||
Lease Financing, net | 11.4 | 65.6 | ||||||
Other | 288.2 | 164.0 | ||||||
Total Commercial | 15,262.0 | 14,001.3 | ||||||
Personal | ||||||||
Private Client | 11,815.1 | 11,071.4 | ||||||
Residential Real Estate | 6,035.7 | 6,095.0 | ||||||
Non-U.S. | 597.9 | 174.8 | ||||||
Other | 49.0 | 67.1 | ||||||
Total Personal | 18,497.7 | 17,408.3 | ||||||
Total Loans and Leases | $ | 33,759.7 | $ | 31,409.6 |
2020 Annual Report | Northern Trust Corporation 115
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DECEMBER 31, | ||||||||
(In Millions) | 2020 | 2019 | ||||||
Direct Finance Leases | ||||||||
Lease Receivable | $ | — | $ | 1.5 | ||||
Residual Value | — | 21.3 | ||||||
Initial Direct Costs | — | 0.2 | ||||||
Unearned Income | — | — | ||||||
Investment in Direct Finance Leases | — | 23.0 | ||||||
Leveraged Leases | ||||||||
Net Rental Receivable | 11.8 | 19.1 | ||||||
Residual Value | — | 33.1 | ||||||
Unearned Income | (0.4) | (9.6) | ||||||
Investment in Leveraged Leases | 11.4 | 42.6 | ||||||
Lease Financing, net | $ | 11.4 | $ | 65.6 |
116 2020 Annual Report | Northern Trust Corporation
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2020 Annual Report | Northern Trust Corporation 117
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DECEMBER 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 | $ | 663.8 | $ | 546.0 | $ | 204.6 | $ | 96.0 | $ | 396.0 | $ | 448.8 | $ | 3,742.4 | $ | 5.5 | $ | 6,103.1 | |||||||||||
4 to 5 Category | 793.4 | 505.1 | 354.1 | 405.4 | 134.6 | 167.3 | 1,238.7 | 32.3 | 3,630.9 | ||||||||||||||||||||
6 to 9 Category | 34.3 | 119.8 | 37.3 | 42.8 | 23.0 | 6.0 | 61.1 | — | 324.3 | ||||||||||||||||||||
Total Commercial and Institutional | 1,491.5 | 1,170.9 | 596.0 | 544.2 | 553.6 | 622.1 | 5,042.2 | 37.8 | 10,058.3 | ||||||||||||||||||||
Commercial Real Estate | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
1 to 3 Category | 406.3 | 109.2 | 27.6 | 36.5 | 11.8 | 99.4 | 124.3 | 8.7 | 823.8 | ||||||||||||||||||||
4 to 5 Category | 703.1 | 811.8 | 332.7 | 107.4 | 184.5 | 382.8 | 60.4 | 11.4 | 2,594.1 | ||||||||||||||||||||
6 to 9 Category | 15.3 | 55.2 | 32.0 | 25.8 | — | 12.2 | — | — | 140.5 | ||||||||||||||||||||
Total Commercial Real Estate | 1,124.7 | 976.2 | 392.3 | 169.7 | 196.3 | 494.4 | 184.7 | 20.1 | 3,558.4 | ||||||||||||||||||||
Non-U.S. | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
1 to 3 Category | 555.2 | 16.8 | — | 11.1 | — | — | 78.5 | — | 661.6 | ||||||||||||||||||||
4 to 5 Category | 313.1 | 0.7 | 2.0 | — | — | 157.9 | 39.2 | 1.8 | 514.7 | ||||||||||||||||||||
6 to 9 Category | — | 23.1 | — | — | — | — | 146.3 | — | 169.4 | ||||||||||||||||||||
Total Non-U.S. | 868.3 | 40.6 | 2.0 | 11.1 | — | 157.9 | 264.0 | 1.8 | 1,345.7 | ||||||||||||||||||||
Lease Financing, net | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
4 to 5 Category | — | — | — | — | — | 11.4 | — | — | 11.4 | ||||||||||||||||||||
Total Lease Financing, net | — | — | — | — | — | 11.4 | — | — | 11.4 | ||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
1 to 3 Category | 81.7 | — | — | — | — | — | — | — | 81.7 | ||||||||||||||||||||
4 to 5 Category | 206.5 | — | — | — | — | — | — | — | 206.5 | ||||||||||||||||||||
Total Other | 288.2 | — | — | — | — | — | — | — | 288.2 | ||||||||||||||||||||
Total Commercial | 3,772.7 | 2,187.7 | 990.3 | 725.0 | 749.9 | 1,285.8 | 5,490.9 | 59.7 | 15,262.0 | ||||||||||||||||||||
Personal | |||||||||||||||||||||||||||||
Private Client | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
1 to 3 Category | 668.6 | 273.7 | 51.7 | 60.4 | 10.2 | 136.1 | 5,392.8 | 47.9 | 6,641.4 | ||||||||||||||||||||
4 to 5 Category | 492.1 | 479.9 | 117.3 | 60.4 | 77.5 | 77.5 | 3,564.7 | 207.3 | 5,076.7 | ||||||||||||||||||||
6 to 9 Category | 6.0 | 0.5 | 22.1 | 3.2 | — | — | 63.7 | 1.5 | 97.0 | ||||||||||||||||||||
Total Private Client | 1,166.7 | 754.1 | 191.1 | 124.0 | 87.7 | 213.6 | 9,021.2 | 256.7 | 11,815.1 | ||||||||||||||||||||
Residential Real Estate | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
1 to 3 Category | 1,554.3 | 317.4 | 42.9 | 109.9 | 205.1 | 627.8 | 152.8 | 1.7 | 3,011.9 | ||||||||||||||||||||
4 to 5 Category | 854.6 | 359.5 | 115.8 | 163.2 | 209.7 | 896.5 | 273.1 | 7.4 | 2,879.8 | ||||||||||||||||||||
6 to 9 Category | 15.3 | 8.3 | 0.7 | 0.5 | 1.9 | 94.8 | 22.5 | — | 144.0 | ||||||||||||||||||||
Total Residential Real Estate | 2,424.2 | 685.2 | 159.4 | 273.6 | 416.7 | 1,619.1 | 448.4 | 9.1 | 6,035.7 | ||||||||||||||||||||
Non-U.S. | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
1 to 3 Category | 23.3 | 14.9 | — | — | — | 1.8 | 275.6 | — | 315.6 | ||||||||||||||||||||
4 to 5 Category | 12.7 | 26.0 | 11.8 | 0.5 | 0.5 | 7.9 | 217.5 | 5.1 | 282.0 | ||||||||||||||||||||
6 to 9 Category | — | — | — | — | — | 0.3 | — | — | 0.3 | ||||||||||||||||||||
Total Non-U.S. | 36.0 | 40.9 | 11.8 | 0.5 | 0.5 | 10.0 | 493.1 | 5.1 | 597.9 | ||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||
1 to 3 Category | 34.6 | — | — | — | — | — | — | — | 34.6 | ||||||||||||||||||||
4 to 5 Category | 14.4 | — | — | — | — | — | — | — | 14.4 | ||||||||||||||||||||
Total Other | 49.0 | — | — | — | — | — | — | — | 49.0 | ||||||||||||||||||||
Total Personal | 3,675.9 | 1,480.2 | 362.3 | 398.1 | 504.9 | 1,842.7 | 9,962.7 | 270.9 | 18,497.7 | ||||||||||||||||||||
Total Loans and Leases | $ | 7,448.6 | $ | 3,667.9 | $ | 1,352.6 | $ | 1,123.1 | $ | 1,254.8 | $ | 3,128.5 | $ | 15,453.6 | $ | 330.6 | $ | 33,759.7 |
118 2020 Annual Report | Northern Trust Corporation
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2020 Annual Report | Northern Trust Corporation 119
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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 |
120 2020 Annual Report | Northern Trust Corporation
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($ In Millions) |
NUMBER OF
LOANS AND LEASES |
RECORDED
INVESTMENT |
UNPAID
PRINCIPAL BALANCE |
||||||||
December 31, 2020 | |||||||||||
Commercial | |||||||||||
Commercial and Institutional | 3 | $ | 24.3 | $ | 24.5 | ||||||
Total Commercial | 3 | 24.3 | 24.5 | ||||||||
Personal | |||||||||||
Residential Real Estate | 22 | 16.2 | 16.7 | ||||||||
Total Personal | 22 | 16.2 | 16.7 | ||||||||
Total Loans and Leases | 25 | $ | 40.5 | $ | 41.2 |
($ In Millions) |
NUMBER OF
LOANS AND LEASES |
RECORDED
INVESTMENT |
UNPAID
PRINCIPAL BALANCE |
||||||||
December 31, 2019 | |||||||||||
Commercial | |||||||||||
Commercial and Institutional | 1 | $ | 7.5 | $ | 8.8 | ||||||
Commercial Real Estate | 2 | — | — | ||||||||
Total Commercial | 3 | 7.5 | 8.8 | ||||||||
Personal | |||||||||||
Residential Real Estate | 45 | 37.4 | 38.8 | ||||||||
Total Personal | 45 | 37.4 | 38.8 | ||||||||
Total Loans and Leases | 48 | $ | 44.9 | $ | 47.6 |
2020 Annual Report | Northern Trust Corporation 121
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DECEMBER 31, 2020 | ||||||||||||||
($ In Millions) | NUMBER OF COVID-19 RELATED MODIFICATIONS | LOAN VOLUME | DEFERRED PRINCIPAL AMOUNT | DEFERRED INTEREST AMOUNT | ||||||||||
Commercial | ||||||||||||||
Commercial and Institutional | 1 | $ | 6.0 | $ | — | $ | — | |||||||
Commercial Real Estate | 1 | 0.7 | — | — | ||||||||||
Total Commercial | 2 | $ | 6.7 | $ | — | $ | — | |||||||
Personal | ||||||||||||||
Private Client | 8 | $ | 8.9 | $ | 0.1 | $ | 0.1 | |||||||
Residential Real Estate | 21 | 5.1 | 0.1 | 0.1 | ||||||||||
Total Personal | 29 | $ | 14.0 | $ | 0.2 | $ | 0.2 | |||||||
Total Loans | 31 | $ | 20.7 | $ | 0.2 | $ | 0.2 |
DECEMBER 31, 2020 | ||||||||||||||
($ In Millions) | NUMBER OF COVID-19 RELATED MODIFICATIONS | LOAN VOLUME | DEFERRED PRINCIPAL AMOUNT | DEFERRED INTEREST AMOUNT | ||||||||||
Commercial | ||||||||||||||
Commercial and Institutional | 99 | $ | 249.3 | $ | 0.1 | $ | 2.2 | |||||||
Commercial Real Estate | 97 | 467.8 | — | 3.2 | ||||||||||
Total Commercial | 196 | $ | 717.1 | $ | 0.1 | $ | 5.4 | |||||||
Personal | ||||||||||||||
Private Client | 27 | $ | 171.9 | $ | — | $ | 1.1 | |||||||
Residential Real Estate | 412 | 182.7 | 1.6 | 2.2 | ||||||||||
Total Personal | 439 | $ | 354.6 | $ | 1.6 | $ | 3.3 | |||||||
Total Loans | 635 | $ | 1,071.7 | $ | 1.7 | $ | 8.7 |
122 2020 Annual Report | Northern Trust Corporation
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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 | (9.7) | — | — | — | (9.7) | ||||||||||||
Recoveries | 6.5 | — | — | — | 6.5 | ||||||||||||
Net Recoveries (Charge-Offs) | (3.2) | — | — | — | (3.2) | ||||||||||||
Provision for Credit Losses | 91.6 | 32.3 | 0.7 | 0.4 | 125.0 | ||||||||||||
Balance at End of Period | $ | 190.7 | $ | 61.1 | $ | 7.3 | $ | 0.8 | $ | 259.9 |
2020 Annual Report | Northern Trust Corporation 123
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2019 | |||||||||||
(In Millions) | LOANS AND LEASES | UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT | TOTAL | ||||||||
Balance at Beginning of Period | $ | 112.6 | $ | 25.6 | $ | 138.2 | |||||
Charge-Offs | (6.5) | — | (6.5) | ||||||||
Recoveries | 7.2 | — | 7.2 | ||||||||
Net Recoveries (Charge-Offs) | 0.7 | — | 0.7 | ||||||||
Provision for Credit Losses | (8.8) | (5.7) | (14.5) | ||||||||
Balance at End of Period | $ | 104.5 | $ | 19.9 | $ | 124.4 |
2018 | |||||||||||
(In Millions) | LOANS AND LEASES | UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT | TOTAL | ||||||||
Balance at Beginning of Period | $ | 131.2 | $ | 22.6 | $ | 153.8 | |||||
Charge-Offs | (10.1) | — | (10.1) | ||||||||
Recoveries | 9.0 | — | 9.0 | ||||||||
Net Recoveries (Charge-Offs) | (1.1) | — | (1.1) | ||||||||
Provision for Credit Losses | (17.5) | 3.0 | (14.5) | ||||||||
Balance at End of Period | $ | 112.6 | $ | 25.6 | $ | 138.2 |
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 | (6.3) | (3.4) | (9.7) | — | — | — | ||||||||||||||
Recoveries | 2.4 | 4.1 | 6.5 | — | — | — | ||||||||||||||
Net Recoveries (Charge-Offs) | (3.9) | 0.7 | (3.2) | — | — | — | ||||||||||||||
Provision for Credit Losses | 93.9 | (2.3) | 91.6 | 29.9 | 2.4 | 32.3 | ||||||||||||||
Balance at End of Period | $ | 142.2 | $ | 48.5 | $ | 190.7 | $ | 57.6 | $ | 3.5 | $ | 61.1 |
124 2020 Annual Report | Northern Trust Corporation
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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 | (3.0) | (3.5) | (6.5) | — | — | — | ||||||||||||||
Recoveries | 0.9 | 6.3 | 7.2 | — | — | — | ||||||||||||||
Net Recoveries (Charge-Offs) | (2.1) | 2.8 | 0.7 | — | — | — | ||||||||||||||
Provision for Credit Losses | 2.6 | (11.4) | (8.8) | (5.3) | (0.4) | (5.7) | ||||||||||||||
Balance at End of Period | $ | 58.1 | $ | 46.4 | $ | 104.5 | $ | 15.8 | $ | 4.1 | $ | 19.9 |
2018 | ||||||||||||||||||||
LOANS AND LEASES | UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT | |||||||||||||||||||
(In Millions) | COMMERCIAL | PERSONAL | TOTAL | COMMERCIAL | PERSONAL | TOTAL | ||||||||||||||
Balance at Beginning of Period | $ | 63.5 | $ | 67.7 | $ | 131.2 | $ | 17.3 | $ | 5.3 | $ | 22.6 | ||||||||
Charge-Offs | (0.9) | (9.2) | (10.1) | — | — | — | ||||||||||||||
Recoveries | 1.7 | 7.3 | 9.0 | — | — | — | ||||||||||||||
Net Recoveries (Charge-Offs) | 0.8 | (1.9) | (1.1) | — | — | — | ||||||||||||||
Provision for Credit Losses | (6.7) | (10.8) | (17.5) | 3.8 | (0.8) | 3.0 | ||||||||||||||
Balance at End of Period | $ | 57.6 | $ | 55.0 | $ | 112.6 | $ | 21.1 | $ | 4.5 | $ | 25.6 |
DECEMBER 31, 2020 | DECEMBER 31, 2019 | |||||||||||||||||||
(In Millions) | COMMERCIAL | PERSONAL | TOTAL | COMMERCIAL | PERSONAL | TOTAL | ||||||||||||||
Loans and Leases | ||||||||||||||||||||
Evaluated on an Individual Basis | $ | 66.6 | $ | 65.1 | $ | 131.7 | $ | 10.4 | $ | 81.8 | $ | 92.2 | ||||||||
Evaluated on a Collective Basis | 15,195.4 | 18,432.6 | 33,628.0 | 13,990.9 | 17,326.5 | 31,317.4 | ||||||||||||||
Total Loans and Leases | 15,262.0 | 18,497.7 | 33,759.7 | 14,001.3 | 17,408.3 | 31,409.6 | ||||||||||||||
Allowance for Credit Losses on Credit Exposures | ||||||||||||||||||||
Evaluated on an Individual Basis | 8.8 | 0.3 | 9.1 | 3.4 | 1.6 | 5.0 | ||||||||||||||
Evaluated on a Collective Basis | 133.4 | 48.2 | 181.6 | 54.7 | 44.8 | 99.5 | ||||||||||||||
Allowance Assigned to Loans and Leases | 142.2 | 48.5 | 190.7 | 58.1 | 46.4 | 104.5 | ||||||||||||||
Allowance for Undrawn Loan Commitments and Standby Letters of Credit | ||||||||||||||||||||
Evaluated on an Individual Basis | 1.6 | — | 1.6 | 1.9 | — | 1.9 | ||||||||||||||
Evaluated on a Collective Basis | 56.0 | 3.5 | 59.5 | 13.9 | 4.1 | 18.0 | ||||||||||||||
Allowance Assigned to Undrawn Loan Commitments and Standby Letters of Credit | 57.6 | 3.5 | 61.1 | 15.8 | 4.1 | 19.9 | ||||||||||||||
Total Allowance Assigned to Loans and Leases and Undrawn Loan Commitments and Standby Letters of Credit | $ | 199.8 | $ | 52.0 | $ | 251.8 | $ | 73.9 | $ | 50.5 | $ | 124.4 |
2020 Annual Report | Northern Trust Corporation 125
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2020 | ||||||||||||||||||||
(In Millions) | CORPORATE DEBT | NON-U.S. GOVERNMENT | SUB-SOVEREIGN, SUPERNATIONAL, AND NON-U.S. AGENCY BONDS | 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 | ||||||||||||||
Provision for Credit Losses | — | (0.1) | 0.3 | 0.1 | 0.4 | 0.7 | ||||||||||||||
Balance at End of Period | $ | 0.8 | $ | 0.2 | $ | 1.2 | $ | 0.1 | $ | 5.0 | $ | 7.3 |
(In Millions) | DECEMBER 31, 2020 | DECEMBER 31, 2019 | ||||||
Loans and Leases | $ | 55.3 | $ | 84.5 | ||||
Debt Securities | ||||||||
Held to Maturity | $ | 73.8 | $ | 82.3 | ||||
Available for Sale | 106.3 | 119.0 | ||||||
Other Financial Assets | $ | 1.4 | $ | 14.7 |
126 2020 Annual Report | Northern Trust Corporation
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DECEMBER 31, | ||||||||
(In Millions) | 2020 | 2019 | ||||||
Commercial Mortgages | ||||||||
Office | $ | 831.3 | $ | 754.3 | ||||
Apartment/ Multi-family | 906.8 | 646.5 | ||||||
Retail | 561.3 | 573.3 | ||||||
Industrial/ Warehouse | 344.2 | 278.0 | ||||||
Other | 409.9 | 420.1 | ||||||
Total Commercial Mortgages | 3,053.5 | 2,672.2 | ||||||
Construction, Acquisition and Development Loans | 504.9 | 432.1 | ||||||
Total Commercial Real Estate Loans | $ | 3,558.4 | $ | 3,104.3 |
2020 Annual Report | Northern Trust Corporation 127
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DECEMBER 31, 2020 | |||||||||||
(In Millions) |
ORIGINAL
COST |
ACCUMULATED
DEPRECIATION |
NET BOOK
VALUE |
||||||||
Land and Improvements | $ | 14.5 | $ | 0.5 | $ | 14.0 | |||||
Buildings | 257.8 | 163.0 | 94.8 | ||||||||
Equipment | 816.4 | 596.8 | 219.6 | ||||||||
Leasehold Improvements | 523.9 | 337.4 | 186.5 | ||||||||
Total Buildings and Equipment | $ | 1,612.6 | $ | 1,097.7 | $ | 514.9 |
DECEMBER 31, 2019 | |||||||||||
(In Millions) |
ORIGINAL
COST |
ACCUMULATED
DEPRECIATION |
NET BOOK
VALUE |
||||||||
Land and Improvements | $ | 14.5 | $ | 0.5 | $ | 14.0 | |||||
Buildings | 305.8 | 156.0 | 149.8 | ||||||||
Equipment | 731.0 | 521.5 | 209.5 | ||||||||
Leasehold Improvements | 416.1 | 306.1 | 110.0 | ||||||||
Total Buildings and Equipment | $ | 1,467.4 | $ | 984.1 | $ | 483.3 |
(In Millions) | DECEMBER 31, 2020 | DECEMBER 31, 2019 | ||||||
Operating Lease Cost | $ | 119.4 | $ | 102.2 | ||||
Variable Lease Cost | 32.7 | 38.7 | ||||||
Sublease Income | (4.8) | (6.6) | ||||||
Total Lease Cost | $ | 147.3 | $ | 134.3 |
128 2020 Annual Report | Northern Trust Corporation
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(In Millions) | MATURITY OF LEASE LIABILITIES | ||||
2021 | $ | 99.1 | |||
2022 | 92.6 | ||||
2023 | 85.6 | ||||
2024 | 74.7 | ||||
2025 | 77.0 | ||||
Later Years | 372.5 | ||||
Total Lease Payments | 801.5 | ||||
Less: Imputed Interest | (100.9) | ||||
Present Value of Lease Liabilities | $ | 700.6 |
(In Millions) | LOCATION OF LEASE ASSETS AND LEASE LIABILITIES ON THE BALANCE SHEET | DECEMBER 31, 2020 | DECEMBER 31, 2019 | ||||||||
Assets | |||||||||||
Operating Lease Right-of-Use Asset | Other Assets | $ | 560.5 | $ | 491.6 | ||||||
Liabilities | |||||||||||
Operating Lease Liability | Other Liabilities | $ | 700.6 | $ | 603.1 |
DECEMBER 31, 2020 | DECEMBER 31, 2019 | |||||||
Operating Leases | ||||||||
Weighted-Average Remaining Lease Term | 10.0 years | 9.2 years | ||||||
Weighted-Average Discount Rate | 2.5 | % | 3.0 | % |
(In Millions) | DECEMBER 31, 2020 | DECEMBER 31, 2019 | ||||||
Supplemental cash flow information | ||||||||
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows | $ | 107.9 | $ | 101.2 | ||||
Supplemental non-cash information | ||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 164.8 | $ | 108.3 |
2020 Annual Report | Northern Trust Corporation 129
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(In Millions) |
CORPORATE & INSTITUTIONAL
SERVICES |
WEALTH
MANAGEMENT |
TOTAL | ||||||||
Balance at December 31, 2018 | $ | 598.2 | $ | 71.1 | $ | 669.3 | |||||
Goodwill Acquired | 23.5 | — | 23.5 | ||||||||
Foreign Exchange Rates | 4.0 | — | 4.0 | ||||||||
Balance at December 31, 2019 | $ | 625.7 | $ | 71.1 | $ | 696.8 | |||||
Foreign Exchange Rates | 10.3 | 0.1 | 10.4 | ||||||||
Balance at December 31, 2020 | $ | 636.0 | $ | 71.2 | $ | 707.2 |
DECEMBER 31, | ||||||||
(In Millions) | 2020 | 2019 | ||||||
Gross Carrying Amount | $ | 221.3 | $ | 207.2 | ||||
Less: Accumulated Amortization | 108.7 | 86.6 | ||||||
Net Book Value | $ | 112.6 | $ | 120.6 |
DECEMBER 31, | ||||||||
(In Millions) | 2020 | 2019 | ||||||
Gross Carrying Amount | $ | 4,337.4 | $ | 3,885.2 | ||||
Less: Accumulated Amortization | 2,744.5 | 2,377.9 | ||||||
Net Book Value | $ | 1,592.9 | $ | 1,507.3 |
130 2020 Annual Report | Northern Trust Corporation
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DECEMBER 31, 2020 | |||||||||||
U.S. OFFICE | NON-U.S. OFFICES | ||||||||||
(In Millions) | CERTIFICATES OF DEPOSIT | OTHER TIME | TOTAL | ||||||||
1 Year or Less | $ | 660.2 | $ | 205.4 | $ | 865.6 | |||||
Over 1 Year to 2 Years | 36.1 | — | 36.1 | ||||||||
Over 2 Years to 3 Years | 3.1 | — | 3.1 | ||||||||
Over 3 Years to 4 Years | 1.2 | — | 1.2 | ||||||||
Over 4 Years to 5 Years | 0.3 | — | 0.3 | ||||||||
Over 5 Years | 0.5 | — | 0.5 | ||||||||
Total | $ | 701.4 | $ | 205.4 | $ | 906.8 |
DECEMBER 31, | |||||||||||
($ In Millions) | RATE | 2020 | 2019 | ||||||||
Corporation-Senior Notes(1)
|
|||||||||||
Fixed Rate Due Nov. 2020(2)
|
3.45 | % | $ | — | $ | 499.9 | |||||
Fixed Rate Due Aug. 2021(2)
|
3.375 | 499.8 | 499.4 | ||||||||
Fixed Rate Due Aug. 2022(2)
|
2.375 | 499.6 | 499.4 | ||||||||
Fixed Rate Due Aug. 2028(3)(4)
|
3.65 | 584.4 | 547.2 | ||||||||
Fixed Rate Due May 2029(3)(4)
|
3.15 | 567.9 | 527.1 | ||||||||
Fixed Rate Due May 2030(3)(4)
|
1.95 | 970.7 | — | ||||||||
Total Senior Notes | $ | 3,122.4 | $ | 2,573.0 |
2020 Annual Report | Northern Trust Corporation 131
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DECEMBER 31, | |||||||||||
($ In Millions) | RATE | 2020 | 2019 | ||||||||
Corporation-Subordinated Debt(1)
|
|||||||||||
Fixed Rate Notes due Oct. 2025(2)(3)
|
3.95 | % | $ | 839.8 | $ | 798.7 | |||||
Fixed-to-Floating Rate Notes due May 2032(4)
|
3.375 | 349.5 | 349.4 | ||||||||
Total Long-Term Debt | $ | 1,189.3 | $ | 1,148.1 | |||||||
Long-Term Debt Qualifying as Risk-Based Capital | $ | 949.7 | $ | 1,099.5 |
DECEMBER 31, | ||||||||
(In Millions) | 2020 | 2019 | ||||||
NTC Capital I Subordinated Debentures due January 15, 2027 | $ | 154.3 | $ | 154.3 | ||||
NTC Capital II Subordinated Debentures due April 15, 2027 | 123.5 | 123.4 | ||||||
Total Subordinated Debentures | $ | 277.8 | $ | 277.7 |
132 2020 Annual Report | Northern Trust Corporation
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2020 Annual Report | Northern Trust Corporation 133
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2020 | 2019 | 2018 | |||||||||
Balance at January 1 | 209,709,046 | 219,012,050 | 226,126,674 | ||||||||
Incentive Plan and Awards | 1,512,035 | 1,688,931 | 1,310,778 | ||||||||
Stock Options Exercised | 344,686 | 786,931 | 575,662 | ||||||||
Treasury Stock Purchased | (3,276,589) | (11,778,866) | (9,001,064) | ||||||||
Balance at December 31 | 208,289,178 | 209,709,046 | 219,012,050 |
134 2020 Annual Report | Northern Trust Corporation
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(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, 2017 | $ | (74.8) | $ | 4.5 | $ | (1.8) | $ | (342.2) | $ | (414.3) | |||||||
Reclassification of Certain Tax Effects from AOCI | (17.8) | 0.9 | 47.5 | (55.9) | (25.3) | ||||||||||||
Net Change | (22.3) | (1.4) | 22.2 | (12.6) | (14.1) | ||||||||||||
Balance at December 31, 2018 | $ | (114.9) | $ | 4.0 | $ | 67.9 | $ | (410.7) | $ | (453.7) | |||||||
Net Change | 228.9 | (7.7) | 49.9 | (12.1) | 259.0 | ||||||||||||
Balance at December 31, 2019 | $ | 114.0 | $ | (3.7) | $ | 117.8 | $ | (422.8) | $ | (194.7) | |||||||
Net Change | 527.8 | 0.5 | 26.9 | 67.5 | 622.7 | ||||||||||||
Balance at December 31, 2020 | $ | 641.8 | $ | (3.2) | $ | 144.7 | $ | (355.3) | $ | 428.0 |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(In Millions) |
BEFORE
TAX |
TAX
EFFECT |
AFTER
TAX |
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 | $ | 706.8 | $ | (179.3) | $ | 527.5 | $ | 306.1 | $ | (78.0) | $ | 228.1 | $ | (31.9) | $ | 9.2 | $ | (22.7) | |||||||||||
Reclassification Adjustment for Losses (Gains) Included in Net Income(1)
|
0.4 | (0.1) | 0.3 | 1.1 | (0.3) | 0.8 | 0.5 | (0.1) | 0.4 | ||||||||||||||||||||
Net Change | $ | 707.2 | $ | (179.4) | $ | 527.8 | $ | 307.2 | $ | (78.3) | $ | 228.9 | $ | (31.4) | $ | 9.1 | $ | (22.3) | |||||||||||
Unrealized (Losses) Gains on Cash Flow Hedges | |||||||||||||||||||||||||||||
Foreign Exchange Contracts | $ | 28.9 | $ | (7.3) | $ | 21.6 | $ | 14.9 | $ | (3.7) | $ | 11.2 | $ | 70.5 | $ | (17.6) | $ | 52.9 | |||||||||||
Interest Rate Contracts | — | — | — | 1.5 | (0.3) | 1.2 | (1.2) | 0.3 | (0.9) | ||||||||||||||||||||
Reclassification Adjustment for (Gains) Losses Included in Net Income(2)
|
(28.1) | 7.0 | (21.1) | (26.7) | 6.6 | (20.1) | (71.1) | 17.7 | (53.4) | ||||||||||||||||||||
Net Change | $ | 0.8 | $ | (0.3) | $ | 0.5 | $ | (10.3) | $ | 2.6 | $ | (7.7) | $ | (1.8) | $ | 0.4 | $ | (1.4) | |||||||||||
Foreign Currency Adjustments | |||||||||||||||||||||||||||||
Foreign Currency Translation Adjustments | $ | 169.1 | $ | (8.3) | $ | 160.8 | $ | 6.4 | $ | (1.6) | $ | 4.8 | $ | (107.8) | $ | 1.5 | $ | (106.3) | |||||||||||
Long-Term Intra-Entity Foreign Currency Transaction (Losses) Gains | 2.1 | (0.5) | 1.6 | (0.5) | 0.1 | (0.4) | (1.8) | 0.5 | (1.3) | ||||||||||||||||||||
Net Investment Hedge Gains (Losses) | (178.7) | 43.2 | (135.5) | 59.7 | (14.2) | 45.5 | 173.0 | (43.2) | 129.8 | ||||||||||||||||||||
Net Change | $ | (7.5) | $ | 34.4 | $ | 26.9 | $ | 65.6 | $ | (15.7) | $ | 49.9 | $ | 63.4 | $ | (41.2) | $ | 22.2 | |||||||||||
Pension and Other Postretirement Benefit Adjustments | |||||||||||||||||||||||||||||
Net Actuarial (Losses) Gains | $ | 47.4 | $ | (12.3) | $ | 35.1 | $ | (36.8) | $ | 7.9 | $ | (28.9) | $ | (54.9) | $ | 9.6 | $ | (45.3) | |||||||||||
Reclassification Adjustment for Losses (Gains) Included in Net Income(3)
|
|||||||||||||||||||||||||||||
Amortization of Net Actuarial Loss | 43.0 | (10.5) | 32.5 | 22.4 | (5.4) | 17.0 | 36.6 | (3.6) | 33.0 | ||||||||||||||||||||
Amortization of Prior Service Cost | (0.1) | — | (0.1) | (0.2) | — | (0.2) | (0.3) | — | (0.3) | ||||||||||||||||||||
Net Change | $ | 90.3 | $ | (22.8) | $ | 67.5 | $ | (14.6) | $ | 2.5 | $ | (12.1) | $ | (18.6) | $ | 6.0 | $ | (12.6) | |||||||||||
Total Net Change | $ | 790.8 | $ | (168.1) | $ | 622.7 | $ | 347.9 | $ | (88.9) | $ | 259.0 | $ | 11.6 | $ | (25.7) | $ | (14.1) |
2020 Annual Report | Northern Trust Corporation 135
|
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
($ In Millions Except Per Common Share Information) | 2020 | 2019 | 2018 | ||||||||
BASIC NET INCOME PER COMMON SHARE | |||||||||||
Average Number of Common Shares Outstanding | 208,319,412 | 214,525,547 | 223,148,335 | ||||||||
Net Income | $ | 1,209.3 | $ | 1,492.2 | $ | 1,556.4 | |||||
Less: Dividends on Preferred Stock | 56.2 | 46.4 | 46.4 | ||||||||
Net Income Applicable to Common Stock | 1,153.1 | 1,445.8 | 1,510.0 | ||||||||
Less: Earnings Allocated to Participating Securities | 12.1 | 16.9 | 20.1 | ||||||||
Earnings Allocated to Common Shares Outstanding | $ | 1,141.0 | $ | 1,428.9 | $ | 1,489.9 | |||||
Basic Net Income Per Common Share | 5.48 | 6.66 | 6.68 | ||||||||
DILUTED NET INCOME PER COMMON SHARE | |||||||||||
Average Number of Common Shares Outstanding | 208,319,412 | 214,525,547 | 223,148,335 | ||||||||
Plus Dilutive Effect of Share-based Compensation | 688,574 | 1,075,602 | 1,339,991 | ||||||||
Average Common and Potential Common Shares | 209,007,986 | 215,601,149 | 224,488,326 | ||||||||
Earnings Allocated to Common and Potential Common Shares | $ | 1,141.1 | $ | 1,428.9 | $ | 1,490.0 | |||||
Diluted Net Income Per Common Share | 5.46 | 6.63 | 6.64 |
136 2020 Annual Report | Northern Trust Corporation
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FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions) | 2020 | 2019 | 2018 | ||||||||
Noninterest Income | |||||||||||
Trust, Investment and Other Servicing Fees | |||||||||||
Custody and Fund Administration | $ | 1,674.3 | $ | 1,636.4 | $ | 1,589.1 | |||||
Investment Management and Advisory | 2,029.3 | 1,930.6 | 1,862.6 | ||||||||
Securities Lending | 88.3 | 87.7 | 102.8 | ||||||||
Other | 203.1 | 197.4 | 199.2 | ||||||||
Total Trust, Investment and Other Servicing Fees | $ | 3,995.0 | $ | 3,852.1 | $ | 3,753.7 | |||||
Other Noninterest Income | |||||||||||
Foreign Exchange Trading Income | $ | 290.4 | $ | 250.9 | $ | 307.2 | |||||
Treasury Management Fees | 45.4 | 44.5 | 51.8 | ||||||||
Security Commissions and Trading Income | 133.2 | 103.6 | 98.3 | ||||||||
Other Operating Income | 194.0 | 145.5 | 127.5 | ||||||||
Investment Security Gains (Losses), net | (0.4) | (1.4) | (1.0) | ||||||||
Total Other Noninterest Income | $ | 662.6 | $ | 543.1 | $ | 583.8 | |||||
Total Noninterest Income | $ | 4,657.6 | $ | 4,395.2 | $ | 4,337.5 |
DECEMBER 31, | ||||||||
(In Millions) | 2020 | 2019 | ||||||
Trust Fees Receivable, net(1)
|
$ | 819.3 | $ | 801.9 | ||||
Other | 116.5 | 101.1 | ||||||
Total Client Receivables | $ | 935.8 | $ | 903.0 |
2020 Annual Report | Northern Trust Corporation 137
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FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions) | 2020 | 2019 | 2018 | ||||||||
Interest Income | |||||||||||
Loans and Leases | $ | 774.6 | $ | 1,153.4 | $ | 1,098.8 | |||||
Securities – Taxable | 812.4 | 1,070.7 | 905.2 | ||||||||
– Non-Taxable(1)
|
1.4 | 3.8 | 7.0 | ||||||||
Interest-Bearing Due from and Deposits with Banks(2)
|
22.4 | 72.4 | 70.0 | ||||||||
Federal Reserve and Other Central Bank Deposits and Other | 32.7 | 199.6 | 240.4 | ||||||||
Total Interest Income | $ | 1,643.5 | $ | 2,499.9 | $ | 2,321.4 | |||||
Interest Expense | |||||||||||
Deposits | $ | 48.4 | $ | 488.9 | $ | 384.6 | |||||
Federal Funds Purchased | 2.2 | 25.9 | 50.3 | ||||||||
Securities Sold under Agreements to Repurchase | 1.0 | 6.4 | 7.8 | ||||||||
Other Borrowings | 45.3 | 181.7 | 150.1 | ||||||||
Senior Notes | 72.7 | 72.6 | 53.4 | ||||||||
Long-Term Debt | 26.5 | 38.3 | 45.0 | ||||||||
Floating Rate Capital Debt | 4.2 | 8.2 | 7.5 | ||||||||
Total Interest Expense | $ | 200.3 | $ | 822.0 | $ | 698.7 | |||||
Net Interest Income | $ | 1,443.2 | $ | 1,677.9 | $ | 1,622.7 |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions) | 2020 | 2019 | 2018 | ||||||||
Loan Service Fees | $ | 52.5 | $ | 48.0 | $ | 48.9 | |||||
Banking Service Fees | 46.1 | 45.6 | 46.4 | ||||||||
Other Income | 95.4 | 51.9 | 32.2 | ||||||||
Total Other Operating Income | $ | 194.0 | $ | 145.5 | $ | 127.5 |
138 2020 Annual Report | Northern Trust Corporation
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FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions) | 2020 | 2019 | 2018 | ||||||||
Business Promotion | $ | 59.2 | $ | 104.2 | $ | 98.3 | |||||
Staff Related | 29.4 | 42.8 | 33.6 | ||||||||
FDIC Insurance Premiums | 11.8 | 9.9 | 27.4 | ||||||||
Other Intangibles Amortization | 16.9 | 16.6 | 17.4 | ||||||||
Other Expenses | 229.4 | 156.3 | 153.9 | ||||||||
Total Other Operating Expense | $ | 346.7 | $ | 329.8 | $ | 330.6 |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
2020 | 2019 | 2018 | |||||||||
Statutory Federal Tax Rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||
Tax Exempt Income | (0.9) | (0.6) | (0.4) | ||||||||
Foreign Tax Rate Differential | 0.7 | 0.2 | (0.4) | ||||||||
Excess Tax Benefit Related to Share-Based Compensation | (0.6) | (0.9) | (0.9) | ||||||||
Tax Credits | (1.7) | (1.0) | (1.1) | ||||||||
Reversal of Tax Benefits Previously Recognized through Earnings | 1.6 | — | — | ||||||||
State Taxes, net | 3.2 | 2.8 | 3.4 | ||||||||
Impact of Tax Cuts and Jobs Act | — | — | (0.2) | ||||||||
Change in Accounting Method | — | — | (1.2) | ||||||||
Valuation Allowance | 1.6 | 1.5 | — | ||||||||
Other | 0.8 | 0.2 | 0.3 | ||||||||
Effective Tax Rate | 25.7 | % | 23.2 | % | 20.5 | % |
2020 Annual Report | Northern Trust Corporation 139
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(In Millions) | 2020 | 2019 | 2018 | ||||||||
Balance at January 1 | $ | 25.3 | $ | 21.9 | $ | 27.7 | |||||
Additions for Tax Positions Taken in the Current Year | 0.9 | 0.9 | 0.5 | ||||||||
Additions for Tax Positions Taken in Prior Years | 0.4 | 4.0 | 1.7 | ||||||||
Reductions for Tax Positions Taken in Prior Years | (4.2) | (1.5) | (7.8) | ||||||||
Reductions Resulting from Expiration of Statutes | — | — | (0.2) | ||||||||
Balance at December 31 | $ | 22.4 | $ | 25.3 | $ | 21.9 |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions) | 2020 | 2019 | 2018 | ||||||||
Current Tax Provision: | |||||||||||
Federal | $ | 203.0 | $ | 216.4 | $ | 132.8 | |||||
State | 57.2 | 50.7 | 95.4 | ||||||||
Non-U.S. | 141.7 | 150.5 | 162.7 | ||||||||
Total | $ | 401.9 | $ | 417.6 | $ | 390.9 | |||||
Deferred Tax Provision: | |||||||||||
Federal | $ | 8.8 | $ | 16.5 | $ | 33.8 | |||||
State | 5.4 | 16.5 | (13.8) | ||||||||
Non-U.S. | 2.2 | 1.3 | (9.5) | ||||||||
Total | $ | 16.4 | $ | 34.3 | $ | 10.5 | |||||
Provision for Income Taxes | $ | 418.3 | $ | 451.9 | $ | 401.4 |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions) | 2020 | 2019 | 2018 | ||||||||
Tax Effect of Other Comprehensive Income | $ | 168.1 | $ | 88.9 | $ | 25.7 |
140 2020 Annual Report | Northern Trust Corporation
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DECEMBER 31, | ||||||||
(In Millions) | 2020 | 2019 | ||||||
Deferred Tax Liabilities: | ||||||||
Lease Financing | $ | 9.0 | $ | 36.9 | ||||
Software Development | 268.1 | 249.4 | ||||||
Accumulated Depreciation | 99.7 | 99.8 | ||||||
Compensation and Benefits | 31.0 | 8.3 | ||||||
State Taxes, net | 67.4 | 66.4 | ||||||
Other Liabilities | 372.6 | 206.7 | ||||||
Gross Deferred Tax Liabilities | 847.8 | 667.5 | ||||||
Deferred Tax Assets: | ||||||||
Allowance for Credit Losses | 54.5 | 26.1 | ||||||
Other Assets | 139.8 | 147.0 | ||||||
Gross Deferred Tax Assets | 194.3 | 173.1 | ||||||
Valuation Reserve | (55.2) | (29.8) | ||||||
Deferred Tax Assets, net of Valuation Reserve | 139.1 | 143.3 | ||||||
Net Deferred Tax Liabilities | $ | 708.7 | $ | 524.2 |
2020 Annual Report | Northern Trust Corporation 141
|
U.S. QUALIFIED PLAN | NON-U.S. PENSION PLANS | U.S. NON-QUALIFIED PLAN | ||||||||||||||||||
(In Millions) | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||
Net Actuarial Loss | $ | 332.4 | $ | 426.7 | $ | 49.0 | $ | 46.5 | $ | 96.3 | $ | 82.5 | ||||||||
Prior Service (Benefit) Cost | (0.6) | (1.0) | 2.2 | 3.0 | 0.1 | 0.2 | ||||||||||||||
Gross Amount in Accumulated Other Comprehensive Income | 331.8 | 425.7 | 51.2 | 49.5 | 96.4 | 82.7 | ||||||||||||||
Income Tax Effect | 82.1 | 105.7 | 6.4 | 6.2 | 23.9 | 20.4 | ||||||||||||||
Net Amount in Accumulated Other Comprehensive Income | $ | 249.7 | $ | 320.0 | $ | 44.8 | $ | 43.3 | $ | 72.5 | $ | 62.3 |
U.S. QUALIFIED PLAN | NON-U.S. PENSION PLANS | U.S. NON-QUALIFIED PLAN | |||||||||||||||||||||||||||
($ In Millions) | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||
Service Cost | $ | 47.4 | $ | 41.6 | $ | 41.4 | $ | 1.9 | $ | 2.0 | $ | 1.7 | $ | 4.6 | $ | 4.1 | $ | 4.3 | |||||||||||
Interest Cost | 43.3 | 47.2 | 44.3 | 2.9 | 3.9 | 4.0 | 4.8 | 5.8 | 5.3 | ||||||||||||||||||||
Expected Return on Plan Assets | (76.8) | (86.9) | (88.2) | (3.1) | (4.4) | (4.4) | — | — | N/A | ||||||||||||||||||||
Settlement Expense | — | — | — | 0.8 | — | 0.5 | — | — | — | ||||||||||||||||||||
Amortization: | |||||||||||||||||||||||||||||
Net Actuarial Loss | 35.0 | 17.2 | 28.2 | 0.8 | 0.6 | 0.9 | 7.0 | 5.6 | 7.4 | ||||||||||||||||||||
Prior Service (Benefit) Cost | (0.4) | (0.4) | (0.4) | 0.4 | 0.3 | 0.2 | 0.2 | 0.2 | 0.2 | ||||||||||||||||||||
Net Periodic Pension Expense | $ | 48.5 | $ | 18.7 | $ | 25.3 | $ | 3.7 | $ | 2.4 | $ | 2.9 | $ | 16.6 | $ | 15.7 | $ | 17.2 | |||||||||||
Weighted-Average Assumptions: | |||||||||||||||||||||||||||||
Discount Rates | 3.37 | % | 4.47 | % | 3.79 | % | 1.40 | % | 2.16 | % | 2.08 | % | 3.37 | % | 4.47 | % | 3.79 | % | |||||||||||
Rate of Increase in Compensation Level | 4.97 | 4.39 | 4.39 | 1.50 | 1.75 | 1.75 | 4.97 | 4.39 | 4.39 | ||||||||||||||||||||
Expected Long-Term Rate of Return on Assets | 5.25 | 6.00 | 6.00 | 1.72 | 2.39 | 2.61 | N/A | N/A | N/A |
142 2020 Annual Report | Northern Trust Corporation
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U.S. QUALIFIED PLAN | NON-U.S. PENSION PLANS | U.S. NON-QUALIFIED PLAN | ||||||||||||||||||
(In Millions) | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||
Beginning Balance | $ | 1,323.4 | $ | 1,092.0 | $ | 211.1 | $ | 183.5 | $ | 149.2 | $ | 135.6 | ||||||||
Service Cost | 47.4 | 41.6 | 1.9 | 2.0 | 4.6 | 4.1 | ||||||||||||||
Interest Cost | 43.3 | 47.2 | 2.9 | 3.9 | 4.8 | 5.8 | ||||||||||||||
Employee Contributions | — | — | 0.6 | 0.6 | — | — | ||||||||||||||
Plan Amendment | — | — | (0.5) | (0.4) | — | — | ||||||||||||||
Actuarial Loss (Gain) | 136.5 | 213.3 | 19.1 | 20.9 | 20.4 | 22.0 | ||||||||||||||
Settlement | — | — | (5.4) | — | — | — | ||||||||||||||
Benefits Paid | (80.0) | (70.7) | (4.1) | (3.6) | (16.7) | (18.3) | ||||||||||||||
Foreign Exchange Rate Changes | — | — | 10.5 | 4.2 | — | — | ||||||||||||||
Ending Balance | $ | 1,470.6 | $ | 1,323.4 | $ | 236.1 | $ | 211.1 | $ | 162.3 | $ | 149.2 |
(In Millions) | U.S. QUALIFIED PLAN | NON-U.S.PENSION PLANS | U.S. NON-QUALIFIED PLAN | ||||||||
2021 | $ | 86.8 | $ | 4.4 | $ | 18.0 | |||||
2022 | 88.9 | 4.3 | 20.0 | ||||||||
2023 | 96.3 | 4.8 | 18.2 | ||||||||
2024 | 96.4 | 5.0 | 11.6 | ||||||||
2025 | 98.6 | 5.0 | 12.7 | ||||||||
2026-2030 | 495.5 | 32.4 | 62.0 |
U.S. QUALIFIED PLAN | NON-U.S PENSION PLANS | |||||||||||||
(In Millions) | 2020 | 2019 | 2020 | 2019 | ||||||||||
Fair Value of Assets at Beginning of Period | $ | 1,601.2 | $ | 1,380.1 | $ | 190.1 | $ | 166.7 | ||||||
Actual Return on Assets | 272.5 | 291.8 | 17.9 | 18.6 | ||||||||||
Employer Contributions | — | — | 5.0 | 3.1 | ||||||||||
Employee Contributions | — | — | 0.6 | 0.6 | ||||||||||
Settlement | — | — | (5.4) | — | ||||||||||
Benefits Paid | (80.0) | (70.7) | (4.1) | (3.6) | ||||||||||
Foreign Exchange Rate Changes | — | — | 7.4 | 4.7 | ||||||||||
Fair Value of Assets at End of Period | $ | 1,793.7 | $ | 1,601.2 | $ | 211.5 | $ | 190.1 |
2020 Annual Report | Northern Trust Corporation 143
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144 2020 Annual Report | Northern Trust Corporation
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DECEMBER 31, 2020 | ||||||||||||||
(In Millions) | LEVEL 1 | LEVEL 2 | LEVEL 3 | TOTAL | ||||||||||
Domestic Common Stock | $ | 13.5 | $ | — | $ | — | $ | 13.5 | ||||||
Domestic Corporate Bonds | — | 314.4 | — | 314.4 | ||||||||||
Foreign Corporate Bonds | — | 43.6 | — | 43.6 | ||||||||||
U.S. Government Obligations | 2.9 | 113.1 | — | 116.0 | ||||||||||
Non-U.S. Government Obligations | — | 22.9 | — | 22.9 | ||||||||||
Domestic Municipal and Provincial Bonds | — | 22.4 | — | 22.4 | ||||||||||
Foreign Municipal and Provincial Bonds | — | 0.3 | — | 0.3 | ||||||||||
Collective Trust Funds | — | 985.5 | — | 985.5 | ||||||||||
Mutual Funds | 167.0 | — | — | 167.0 | ||||||||||
Cash and Other | 7.5 | — | — | 7.5 | ||||||||||
Total Assets at Fair Value in the Fair Value Hierarchy | $ | 190.9 | $ | 1,502.2 | $ | — | $ | 1,693.1 | ||||||
Assets Valued at NAV per share | ||||||||||||||
Northern Trust Private Equity Funds | 20.3 | |||||||||||||
Northern Trust Hedge Fund | 34.2 | |||||||||||||
Real Estate Funds | 46.1 | |||||||||||||
Total Assets at Fair Value | $ | 1,793.7 |
2020 Annual Report | Northern Trust Corporation 145
|
DECEMBER 31, 2019 | ||||||||||||||
(In Millions) | LEVEL 1 | LEVEL 2 | LEVEL 3 | TOTAL | ||||||||||
Domestic Common Stock | $ | 12.3 | $ | — | $ | — | $ | 12.3 | ||||||
Domestic Corporate Bonds | — | 254.6 | — | 254.6 | ||||||||||
Foreign Corporate Bonds | — | 45.0 | — | 45.0 | ||||||||||
U.S. Government Obligations | — | 168.3 | — | 168.3 | ||||||||||
Non-U.S. Government Obligations | — | 18.8 | — | 18.8 | ||||||||||
Domestic Municipal and Provincial Bonds | — | 23.1 | — | 23.1 | ||||||||||
Foreign Municipal and Provincial Bonds | — | 0.3 | — | 0.3 | ||||||||||
Collective Trust Funds | — | 866.6 | — | 866.6 | ||||||||||
Mutual Funds | 112.8 | — | — | 112.8 | ||||||||||
Cash and Other | 2.6 | — | — | 2.6 | ||||||||||
Total Assets at Fair Value in the Fair Value Hierarchy | $ | 127.7 | $ | 1,376.7 | $ | — | $ | 1,504.4 | ||||||
Assets Valued at NAV per share | ||||||||||||||
Northern Trust Private Equity Funds | 20.3 | |||||||||||||
Northern Trust Hedge Fund | 30.2 | |||||||||||||
Real Estate Funds | 46.3 | |||||||||||||
Total Assets at Fair Value | $ | 1,601.2 |
DECEMBER 31, | ||||||||
(In Millions) | 2020 | 2019 | ||||||
Accumulated Postretirement Benefit Obligation at Measurement Date: | ||||||||
Retirees and Dependents | $ | 13.2 | $ | 25.2 | ||||
Actives Eligible for Benefits | 2.5 | 3.6 | ||||||
Net Postretirement Benefit Obligation | $ | 15.7 | $ | 28.8 |
146 2020 Annual Report | Northern Trust Corporation
|
DECEMBER 31, | ||||||||
(In Millions) | 2020 | 2019 | ||||||
Net Actuarial (Gain) Loss | $ | (4.9) | $ | (5.4) | ||||
Prior Service Cost | (12.4) | — | ||||||
Gross Amount in Accumulated Other Comprehensive Income | (17.3) | (5.4) | ||||||
Income Tax Effect | (4.3) | (1.4) | ||||||
Net Amount in Accumulated Other Comprehensive Income | $ | (13.0) | $ | (4.0) |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions) | 2020 | 2019 | 2018 | ||||||||
Service Cost | $ | — | $ | — | $ | — | |||||
Interest Cost | 0.7 | 1.2 | 1.3 | ||||||||
Expected Return on Plan Assets | — | — | — | ||||||||
Amortization | |||||||||||
Net Gain | (0.6) | (1.1) | — | ||||||||
Prior Service Benefit | (0.3) | — | — | ||||||||
Net Periodic Postretirement Expense | $ | (0.2) | $ | 0.1 | $ | 1.3 |
FOR THE YEAR ENDED DECEMBER 31, | ||||||||
(In Millions) | 2020 | 2019 | ||||||
Beginning Balance | $ | 28.8 | $ | 28.1 | ||||
Service Cost | — | — | ||||||
Interest Cost | 0.7 | 1.2 | ||||||
Plan Amendment | (12.7) | — | ||||||
Actuarial Loss (Gain) | (0.1) | 0.2 | ||||||
Net Claims Paid | (1.0) | (0.7) | ||||||
Ending Balance | $ | 15.7 | $ | 28.8 |
(In Millions) |
TOTAL
POSTRETIREMENT MEDICAL BENEFITS |
||||
2021 | $ | 1.7 | |||
2022 | 1.5 | ||||
2023 | 1.4 | ||||
2024 | 1.3 | ||||
2025 | 1.2 | ||||
2026-2030 | 5.1 |
2020 Annual Report | Northern Trust Corporation 147
|
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions) | 2020 | 2019 | 2018 | ||||||||
Restricted Stock Unit Awards | $ | 78.1 | $ | 81.4 | $ | 96.3 | |||||
Stock Options | 0.5 | 1.4 | 2.6 | ||||||||
Performance Stock Units | 12.8 | 25.1 | 32.0 | ||||||||
Total Share-Based Compensation Expense | $ | 91.4 | $ | 107.9 | $ | 130.9 | |||||
Tax Benefits Recognized | $ | 22.9 | $ | 26.7 | $ | 32.5 |
148 2020 Annual Report | Northern Trust Corporation
|
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions, Except Per Share Information) | 2020 | 2019 | 2018 | ||||||||
Grant-Date Fair Value of Stock Options Vested | $ | 4.5 | $ | 6.6 | $ | 8.1 | |||||
Stock Options Exercised | |||||||||||
Intrinsic Value as of Exercise Date | 13.6 | 35.4 | 28.5 | ||||||||
Cash Received | 19.5 | 44.0 | 32.6 | ||||||||
Tax Deduction Benefits Realized | 13.4 | 35.2 | 27.7 |
NONVESTED OPTIONS | SHARES |
WEIGHTED- AVERAGE GRANT-DATE
FAIR VALUE PER SHARE |
||||||
Nonvested at December 31, 2019 | 384,939 | $ | 17.45 | |||||
Granted | — | — | ||||||
Vested | (270,110) | 16.71 | ||||||
Forfeited or Cancelled | — | — | ||||||
Nonvested at December 31, 2020 | 114,829 | $ | 19.18 |
($ In Millions Except Per Share Information) | SHARES | WEIGHTED AVERAGE EXERCISE PRICE PER SHARE | WEIGHTED AVERAGE REMAINING CONTRACTUAL TERM (YEARS) | AGGREGATE INTRINSIC VALUE | ||||||||||
Options Outstanding, December 31, 2019 | 1,696,936 | $ | 64.77 | |||||||||||
Granted | — | — | ||||||||||||
Exercised | (344,686) | 56.65 | ||||||||||||
Forfeited, Expired or Cancelled | (2,325) | 49.54 | ||||||||||||
Options Outstanding, December 31, 2020 | 1,349,925 | $ | 66.87 | 3.3 | $ | 35.5 | ||||||||
Options Exercisable, December 31, 2020 | 1,235,096 | $ | 64.90 | 3.2 | $ | 34.9 |
2020 Annual Report | Northern Trust Corporation 149
|
($ In Millions) | NUMBER | AGGREGATE INTRINSIC VALUE | ||||||
Restricted Stock Unit Awards Outstanding, December 31, 2019 | 2,644,762 | $ | 281.0 | |||||
Granted | 772,848 | |||||||
Distributed | (1,245,412) | |||||||
Forfeited | (26,547) | |||||||
Restricted Stock Unit Awards Outstanding, December 31, 2020 | 2,145,651 | $ | 199.8 | |||||
Units Convertible, December 31, 2020 | 19,770 | $ | 1.8 |
NONVESTED RESTRICTED
STOCK UNITS |
NUMBER | WEIGHTED AVERAGE GRANT- DATE FAIR VALUE PER UNIT | WEIGHTED AVERAGE REMAINING VESTING TERM (YEARS) | ||||||||
Nonvested at December 31, 2019 | 2,624,210 | $ | 87.26 | 1.7 | |||||||
Granted | 772,848 | 99.58 | |||||||||
Vested | (1,244,630) | 80.46 | |||||||||
Forfeited | (26,547) | 95.41 | |||||||||
Nonvested at December 31, 2020 | 2,125,881 | $ | 95.61 | 2.1 |
150 2020 Annual Report | Northern Trust Corporation
|
DECEMBER 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
($ In Millions) | ONE YEAR AND LESS | OVER ONE YEAR | TOTAL | ONE YEAR AND LESS | OVER ONE YEAR | TOTAL | ||||||||||||||
Undrawn Commitments to Extend Credit(1)
|
$ | 11,260.5 | $ | 17,678.0 | $ | 28,938.5 | $ | 7,500.2 | $ | 16,906.0 | $ | 24,406.2 | ||||||||
Standby Letters of Credit and Financial Guarantees(2)
|
1,228.1 | 763.5 | 1,991.6 | 1,567.6 | 845.9 | 2,413.5 | ||||||||||||||
Commercial Letters of Credit | 54.6 | — | 54.6 | 32.3 | — | 32.3 | ||||||||||||||
Custody Securities Lent with Indemnification | 157,478.0 | — | 157,478.0 | 138,085.9 | — | 138,085.9 | ||||||||||||||
Total Off-Balance Sheet Financial Instruments | $ | 170,021.2 | $ | 18,441.5 | $ | 188,462.7 | $ | 147,186.0 | $ | 17,751.9 | $ | 164,937.9 |
2020 Annual Report | Northern Trust Corporation 151
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152 2020 Annual Report | Northern Trust Corporation
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2020 Annual Report | Northern Trust Corporation 153
|
DECEMBER 31, 2020 | DECEMBER 31, 2019 | |||||||||||||||||||
FAIR VALUE | FAIR VALUE | |||||||||||||||||||
(In Millions) |
NOTIONAL
VALUE |
ASSET(1)
|
LIABILITY(2)
|
NOTIONAL
VALUE |
ASSET(1)
|
LIABILITY(2)
|
||||||||||||||
Derivatives Designated as Hedging under GAAP | ||||||||||||||||||||
Interest Rate Contracts | ||||||||||||||||||||
Fair Value Hedges
|
$ | 4,717.6 | $ | 8.2 | $ | 10.2 | $ | 4,538.2 | $ | 20.3 | $ | 20.9 | ||||||||
Cash Flow Hedges
|
50.0 | 0.1 | — | 200.0 | 0.2 | 0.2 | ||||||||||||||
Foreign Exchange Contracts | ||||||||||||||||||||
Cash Flow Hedges
|
6,554.4 | 15.4 | 104.0 | 1,661.5 | 8.5 | 11.5 | ||||||||||||||
Net Investment Hedges
|
3,480.3 | 0.1 | 207.7 | 2,873.8 | 73.7 | 11.9 | ||||||||||||||
Total Derivatives Designated as Hedging under GAAP | $ | 14,802.3 | $ | 23.8 | $ | 321.9 | $ | 9,273.5 | $ | 102.7 | $ | 44.5 | ||||||||
Derivatives Not Designated as Hedging under GAAP | ||||||||||||||||||||
Non-Designated Risk Management Derivatives | ||||||||||||||||||||
Foreign Exchange Contracts | $ | 67.7 | $ | 0.1 | $ | 0.1 | $ | 176.5 | $ | 0.9 | $ | 0.7 | ||||||||
Other Financial Derivatives(3)
|
745.4 | — | 35.3 | 640.3 | — | 33.4 | ||||||||||||||
Total Non-Designated Risk Management Derivatives | $ | 813.1 | $ | 0.1 | $ | 35.4 | $ | 816.8 | $ | 0.9 | $ | 34.1 | ||||||||
Client-Related and Trading Derivatives | ||||||||||||||||||||
Foreign Exchange Contracts | $ | 320,563.4 | $ | 4,245.1 | $ | 4,410.7 | $ | 291,533.6 | $ | 3,151.7 | $ | 3,158.1 | ||||||||
Interest Rate Contracts | 10,573.3 | 289.2 | 114.8 | 8,976.8 | 132.4 | 76.3 | ||||||||||||||
Total Client-Related and Trading Derivatives | $ | 331,136.7 | $ | 4,534.3 | $ | 4,525.5 | $ | 300,510.4 | $ | 3,284.1 | $ | 3,234.4 | ||||||||
Total Derivatives Not Designated as Hedging under GAAP | $ | 331,949.8 | $ | 4,534.4 | $ | 4,560.9 | $ | 301,327.2 | $ | 3,285.0 | $ | 3,268.5 | ||||||||
Total Gross Derivatives | $ | 346,752.1 | $ | 4,558.2 | $ | 4,882.8 | $ | 310,600.7 | $ | 3,387.7 | $ | 3,313.0 | ||||||||
Less: Netting(4)
|
3,507.8 | 2,817.1 | 2,338.0 | 1,618.4 | ||||||||||||||||
Total Derivative Financial Instruments | $ | 1,050.4 | $ | 2,065.7 | $ | 1,049.7 | $ | 1,694.6 |
154 2020 Annual Report | Northern Trust Corporation
|
(in Millions) | INTEREST INCOME | INTEREST EXPENSE | OTHER OPERATING INCOME | ||||||||||||||||||||||||||
For the Year Ended December 31, | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||
Total amounts on the consolidated statements of income | $ | 1,643.5 | $ | 2,499.9 | $ | 2,321.4 | $ | 200.3 | $ | 822.0 | $ | 698.7 | $ | 194.0 | $ | 145.5 | $ | 127.5 | |||||||||||
Gains (Losses) on fair value hedges recognized on | |||||||||||||||||||||||||||||
Interest Rate Contracts | |||||||||||||||||||||||||||||
Recognized on derivatives | (66.3) | (95.9) | 13.9 | 100.2 | 99.4 | (9.5) | — | — | — | ||||||||||||||||||||
Recognized on hedged items | 66.3 | 95.9 | (13.9) | (100.2) | (99.4) | 9.5 | — | — | — | ||||||||||||||||||||
Amounts related to interest settlements on derivatives | (13.2) | 21.2 | 17.8 | 29.9 | 5.2 | 7.9 | — | — | — | ||||||||||||||||||||
Total gains (losses) recognized on fair value hedges | $ | (13.2) | $ | 21.2 | $ | 17.8 | $ | 29.9 | $ | 5.2 | $ | 7.9 | $ | — | $ | — | $ | — | |||||||||||
Gains (Losses) on cash flow hedges recognized on | |||||||||||||||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||||||||||
Net gains (losses) reclassified from AOCI to net income | 27.4 | 26.4 | 67.4 | — | — | — | 0.2 | 0.8 | 3.9 | ||||||||||||||||||||
Interest Rate Contracts | |||||||||||||||||||||||||||||
Net gains (losses) reclassified from AOCI to net income | 0.5 | (0.5) | (0.2) | — | — | — | — | — | — | ||||||||||||||||||||
Total gains (losses) reclassified from AOCI to net income on cash flow hedges | $ | 27.9 | $ | 25.9 | $ | 67.2 | $ | — | $ | — | $ | — | $ | 0.2 | $ | 0.8 | $ | 3.9 |
DECEMBER 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)
|
$ | 2,075.1 | $ | 48.8 | $ | 2,981.0 | $ | 3.3 | ||||||
Senior Notes and Long-Term Subordinated Debt | 2,745.1 | 221.5 | 1,748.5 | 126.9 | ||||||||||
Total | $ | 4,820.2 | $ | 270.3 | $ | 4,729.5 | $ | 130.2 |
2020 Annual Report | Northern Trust Corporation 155
|
(In Millions) | DERIVATIVE GAINS (LOSSES) LOCATION RECOGNIZED IN INCOME | AMOUNT OF DERIVATIVE GAINS (LOSSES) RECOGNIZED IN INCOME | ||||||||||||
2020 | 2019 | 2018 | ||||||||||||
Non-designated risk management derivatives | ||||||||||||||
Foreign Exchange Contracts | Other Operating Income | $ | 6.4 | $ | (1.6) | $ | (4.1) | |||||||
Other Financial Derivatives(1)
|
Other Operating Income | (18.3) | (20.0) | (19.2) | ||||||||||
Gains (Losses) from non-designated risk management derivatives | $ | (11.9) | $ | (21.6) | $ | (23.3) | ||||||||
Client-related and trading derivatives | ||||||||||||||
Foreign Exchange Contracts | Foreign Exchange Trading Income | $ | 290.4 | $ | 250.9 | $ | 307.2 | |||||||
Interest Rate Contracts | Security Commissions and Trading Income | 22.4 | 12.9 | 7.7 | ||||||||||
Gains (Losses) from client-related and trading derivatives | $ | 312.8 | $ | 263.8 | $ | 314.9 | ||||||||
Total gains (losses) from derivatives not designated as hedging under GAAP | $ | 300.9 | $ | 242.2 | $ | 291.6 |
156 2020 Annual Report | Northern Trust Corporation
|
DECEMBER 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(3)
|
||||||||||||
Derivative Assets(1)
|
|||||||||||||||||
Foreign Exchange Contracts Over the Counter (OTC) | $ | 3,799.7 | $ | 3,505.3 | $ | 294.4 | $ | 0.9 | $ | 293.5 | |||||||
Interest Rate Swaps OTC | 295.9 | 2.5 | 293.4 | — | 293.4 | ||||||||||||
Interest Rate Swaps Exchange Cleared | 1.6 | — | 1.6 | — | 1.6 | ||||||||||||
Total Derivatives Subject to a Master Netting Arrangement | 4,097.2 | 3,507.8 | 589.4 | 0.9 | 588.5 | ||||||||||||
Total Derivatives Not Subject to a Master Netting Arrangement | 461.0 | — | 461.0 | — | 461.0 | ||||||||||||
Total Derivatives | 4,558.2 | 3,507.8 | 1,050.4 | 0.9 | 1,049.5 | ||||||||||||
Securities Purchased under Agreements to Resell | $ | 1,596.5 | $ | — | $ | 1,596.5 | $ | 1,596.5 | $ | — |
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(3)
|
||||||||||||
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 | $ | 707.8 | $ | — | $ | 707.8 | $ | 707.8 | $ | — |
2020 Annual Report | Northern Trust Corporation 157
|
DECEMBER 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 | $ | 3,577.7 | $ | 2,718.6 | $ | 859.1 | $ | 0.5 | $ | 858.6 | |||||||
Interest Rate Swaps OTC | 125.0 | 98.5 | 26.5 | — | 26.5 | ||||||||||||
Interest Rate Swaps Exchange Cleared | — | — | — | — | — | ||||||||||||
Other Financial Derivatives | 35.3 | — | 35.3 | — | 35.3 | ||||||||||||
Total Derivatives Subject to a Master Netting Arrangement | 3,738.0 | 2,817.1 | 920.9 | 0.5 | 920.4 | ||||||||||||
Total Derivatives Not Subject to a Master Netting Arrangement | 1,144.8 | — | 1,144.8 | — | 1,144.8 | ||||||||||||
Total Derivatives | 4,882.8 | 2,817.1 | 2,065.7 | 0.5 | 2,065.2 | ||||||||||||
Securities Sold under Agreements to Repurchase | $ | 39.8 | $ | — | $ | 39.8 | $ | 39.8 | $ | — |
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 | $ | — |
158 2020 Annual Report | Northern Trust Corporation
|
2020 Annual Report | Northern Trust Corporation 159
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160 2020 Annual Report | Northern Trust Corporation
|
FOR THE YEAR ENDED DECEMBER 31, | ||||||||
(In Billions) | 2020 | 2019 | ||||||
Securities | ||||||||
Obligations of States and Political Subdivisions
|
$ | 2.9 | $ | 1.0 | ||||
Government Sponsored Agency and Other Securities
|
32.5 | 33.4 | ||||||
Loans | 12.1 | 7.7 | ||||||
Total Pledged Assets | $ | 47.5 | $ | 42.1 |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | DERIVATIVE CONTRACTS | |||||||||||||
(In Millions) | DECEMBER 31, 2020 | DECEMBER 31, 2019 | DECEMBER 31, 2020 | DECEMBER 31, 2019 | ||||||||||
Debt Securities | ||||||||||||||
Available for Sale
|
$ | 33.0 | $ | 487.1 | $ | 27.1 | $ | 14.4 |
FOR THE YEAR ENDED DECEMBER 31, | ||||||||
(In Millions) | 2020 | 2019 | ||||||
Collateral that may be repledged or sold | ||||||||
Reverse repurchase agreements | $ | 1,179.8 | $ | 707.8 | ||||
Derivative contracts
|
0.9 | 16.8 | ||||||
Collateral that may not be repledged or sold | ||||||||
Reverse repurchase agreements | 500.0 | — |
2020 Annual Report | Northern Trust Corporation 161
|
162 2020 Annual Report | Northern Trust Corporation
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FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
($ In Millions) | 2020 | 2019 | 2018 | ||||||||
Noninterest Income | |||||||||||
Trust, Investment and Other Servicing Fees | $ | 2,321.6 | $ | 2,211.5 | $ | 2,173.1 | |||||
Foreign Exchange Trading Income | 276.3 | 232.2 | 233.4 | ||||||||
Other Noninterest Income | 222.5 | 178.2 | 183.0 | ||||||||
Total Noninterest Income | 2,820.4 | 2,621.9 | 2,589.5 | ||||||||
Net Interest Income(1)
|
665.5 | 918.7 | 992.2 | ||||||||
Revenue(1)
|
3,485.9 | 3,540.6 | 3,581.7 | ||||||||
Provision for Credit Losses | 38.1 | 1.9 | 1.9 | ||||||||
Noninterest Expense | 2,752.7 | 2,605.5 | 2,421.4 | ||||||||
Income before Income Taxes(1)
|
695.1 | 933.2 | 1,158.4 | ||||||||
Provision for Income Taxes(1)
|
174.4 | 219.4 | 255.3 | ||||||||
Net Income | $ | 520.7 | $ | 713.8 | $ | 903.1 | |||||
Percentage of Consolidated Net Income | 43 | % | 48 | % | 58 | % | |||||
Average Assets | $ | 104,790.6 | $ | 87,557.1 | $ | 82,996.5 |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
($ In Millions) | 2020 | 2019 | 2018 | ||||||||
Noninterest Income | |||||||||||
Trust, Investment and Other Servicing Fees | $ | 1,673.4 | $ | 1,640.6 | $ | 1,580.6 | |||||
Foreign Exchange Trading Income | 14.1 | 18.7 | 4.2 | ||||||||
Other Noninterest Income | 168.0 | 131.1 | 102.7 | ||||||||
Total Noninterest Income | 1,855.5 | 1,790.4 | 1,687.5 | ||||||||
Net Interest Income(1)
|
812.1 | 792.0 | 816.5 | ||||||||
Revenue(1)
|
2,667.6 | 2,582.4 | 2,504.0 | ||||||||
Provision for Credit Losses | 86.9 | (16.4) | (16.4) | ||||||||
Noninterest Expense | 1,559.7 | 1,531.6 | 1,460.0 | ||||||||
Income before Income Taxes(1)
|
1,021.0 | 1,067.2 | 1,060.4 | ||||||||
Provision for Income Taxes(1)
|
291.8 | 271.1 | 262.1 | ||||||||
Net Income | $ | 729.2 | $ | 796.1 | $ | 798.3 | |||||
Percentage of Consolidated Net Income | 60 | % | 53 | % | 51 | % | |||||
Average Assets | $ | 32,020.5 | $ | 29,994.3 | $ | 26,163.7 |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
($ In Millions) | 2020 | 2019 | 2018 | ||||||||
Noninterest Income | $ | (18.3) | $ | (17.1) | $ | 60.5 | |||||
Net Interest Income(1)
|
— | — | (144.8) | ||||||||
Revenue(1)
|
(18.3) | (17.1) | (84.3) | ||||||||
Noninterest Expense | 35.8 | 6.4 | 135.5 | ||||||||
Income (Loss) before Income Taxes(1)
|
(54.1) | (23.5) | (219.8) | ||||||||
Provision (Benefit) for Income Taxes(1)
|
(13.5) | (5.8) | (74.8) | ||||||||
Net Income | $ | (40.6) | $ | (17.7) | $ | (145.0) | |||||
Percentage of Consolidated Net Income | (3) | % | (1) | % | (9) | % | |||||
Average Assets | $ | — | $ | — | $ | 13,786.4 |
2020 Annual Report | Northern Trust Corporation 163
|
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions) | 2020 | 2019 | 2018 | ||||||||
Noninterest Income | |||||||||||
Trust, Investment and Other Servicing Fees | $ | 3,995.0 | $ | 3,852.1 | $ | 3,753.7 | |||||
Foreign Exchange Trading Income | 290.4 | 250.9 | 307.2 | ||||||||
Other Noninterest Income | 372.2 | 292.2 | 276.6 | ||||||||
Total Noninterest Income | 4,657.6 | 4,395.2 | 4,337.5 | ||||||||
Net Interest Income(1)
|
1,477.6 | 1,710.7 | 1,663.9 | ||||||||
Revenue(1)
|
6,135.2 | 6,105.9 | 6,001.4 | ||||||||
Provision for Credit Losses | 125.0 | (14.5) | (14.5) | ||||||||
Noninterest Expense | 4,348.2 | 4,143.5 | 4,016.9 | ||||||||
Income before Income Taxes(1)
|
1,662.0 | 1,976.9 | 1,999.0 | ||||||||
Provision for Income Taxes(1)
|
452.7 | 484.7 | 442.6 | ||||||||
Net Income | $ | 1,209.3 | $ | 1,492.2 | $ | 1,556.4 | |||||
Average Assets | $ | 136,811.1 | $ | 117,551.4 | $ | 122,946.6 |
(In Millions) | TOTAL ASSETS |
TOTAL
REVENUE(1)
|
INCOME BEFORE
INCOME TAXES |
NET INCOME | ||||||||||
2020 | ||||||||||||||
Non-U.S. | $ | 38,393.8 | $ | 1,737.6 | $ | 404.0 | $ | 302.6 | ||||||
U.S. | 131,610.1 | 4,363.2 | 1,223.6 | 906.7 | ||||||||||
Total | $ | 170,003.9 | $ | 6,100.8 | $ | 1,627.6 | $ | 1,209.3 | ||||||
2019 | ||||||||||||||
Non-U.S. | $ | 27,888.6 | $ | 1,889.5 | $ | 600.0 | $ | 451.0 | ||||||
U.S. | 108,939.8 | 4,183.6 | 1,344.1 | 1,041.2 | ||||||||||
Total | $ | 136,828.4 | $ | 6,073.1 | $ | 1,944.1 | $ | 1,492.2 | ||||||
2018 | ||||||||||||||
Non-U.S. | $ | 32,712.9 | $ | 2,018.1 | $ | 786.4 | $ | 625.7 | ||||||
U.S. | 99,499.6 | 3,942.1 | 1,171.4 | 930.7 | ||||||||||
Total | $ | 132,212.5 | $ | 5,960.2 | $ | 1,957.8 | $ | 1,556.4 |
164 2020 Annual Report | Northern Trust Corporation
|
2020 Annual Report | Northern Trust Corporation 165
|
DECEMBER 31, 2020 | DECEMBER 31, 2019 | |||||||||||||||||||||||||
($ In Millions) | STANDARDIZED APPROACH | ADVANCED APPROACH | STANDARDIZED APPROACH |
ADVANCED
APPROACH |
||||||||||||||||||||||
BALANCE | RATIO | BALANCE | RATIO | BALANCE | RATIO | BALANCE | RATIO | |||||||||||||||||||
Common Equity Tier 1 Capital | ||||||||||||||||||||||||||
Northern Trust Corporation | $ | 9,962.2 | 12.8 | % | $ | 9,962.2 | 13.4 | % | $ | 8,898.7 | 12.7 | % | $ | 8,898.7 | 13.2 | % | ||||||||||
The Northern Trust Company | 10,003.3 | 13.0 | 10,003.3 | 13.8 | 8,476.0 | 12.3 | 8,476.0 | 13.0 | ||||||||||||||||||
Minimum to qualify as well-capitalized: | ||||||||||||||||||||||||||
Northern Trust Corporation | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
The Northern Trust Company | 4,994.4 | 6.5 | 4,717.1 | 6.5 | 4,472.0 | 6.5 | 4,230.0 | 6.5 | ||||||||||||||||||
Tier 1 Capital | ||||||||||||||||||||||||||
Northern Trust Corporation | 10,822.2 | 13.9 | 10,822.2 | 14.5 | 10,152.0 | 14.5 | 10,152.0 | 15.0 | ||||||||||||||||||
The Northern Trust Company | 10,003.3 | 13.0 | 10,003.3 | 13.8 | 8,476.0 | 12.3 | 8,476.0 | 13.0 | ||||||||||||||||||
Minimum to qualify as well-capitalized: | ||||||||||||||||||||||||||
Northern Trust Corporation | 4,659.7 | 6.0 | 4,467.6 | 6.0 | 4,205.3 | 6.0 | 4,051.6 | 6.0 | ||||||||||||||||||
The Northern Trust Company | 6,147.0 | 8.0 | 5,805.6 | 8.0 | 5,504.0 | 8.0 | 5,206.2 | 8.0 | ||||||||||||||||||
Total Capital | ||||||||||||||||||||||||||
Northern Trust Corporation | 12,085.7 | 15.6 | 11,825.8 | 15.9 | 11,456.7 | 16.3 | 11,332.3 | 16.8 | ||||||||||||||||||
The Northern Trust Company | 11,123.1 | 14.5 | 10,863.3 | 15.0 | 9,610.4 | 14.0 | 9,486.0 | 14.6 | ||||||||||||||||||
Minimum to qualify as well-capitalized: | ||||||||||||||||||||||||||
Northern Trust Corporation | 7,766.2 | 10.0 | 7,446.0 | 10.0 | 7,008.8 | 10.0 | 6,752.7 | 10.0 | ||||||||||||||||||
The Northern Trust Company | 7,683.7 | 10.0 | 7,257.0 | 10.0 | 6,880.1 | 10.0 | 6,507.7 | 10.0 | ||||||||||||||||||
Tier 1 Leverage | ||||||||||||||||||||||||||
Northern Trust Corporation | 10,822.2 | 7.6 | 10,822.2 | 7.6 | 10,152.0 | 8.7 | 10,152.0 | 8.7 | ||||||||||||||||||
The Northern Trust Company | 10,003.3 | 7.0 | 10,003.3 | 7.0 | 8,476.0 | 7.3 | 8,476.0 | 7.3 | ||||||||||||||||||
Minimum to qualify as well-capitalized: | ||||||||||||||||||||||||||
Northern Trust Corporation | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
The Northern Trust Company | 7,105.0 | 5.0 | 7,105.0 | 5.0 | 5,835.4 | 5.0 | 5,835.4 | 5.0 | ||||||||||||||||||
Supplementary Leverage(1)
|
||||||||||||||||||||||||||
Northern Trust Corporation | N/A | N/A | 10,822.2 | 8.6 | N/A | N/A | 10,152.0 | 7.6 | ||||||||||||||||||
The Northern Trust Company | N/A | N/A | 10,003.3 | 7.7 | N/A | N/A | 8,476.0 | 6.4 | ||||||||||||||||||
Minimum to qualify as well-capitalized: | ||||||||||||||||||||||||||
Northern Trust Corporation | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
The Northern Trust Company | N/A | N/A | 3,883.4 | 3.0 | N/A | N/A | 3,983.6 | 3.0 |
166 2020 Annual Report | Northern Trust Corporation
|
DECEMBER 31, | ||||||||
(In Millions) | 2020 | 2019 | ||||||
ASSETS | ||||||||
Cash on Deposit with Subsidiary Bank | $ | 2,516.0 | $ | 2,559.1 | ||||
Advances to Wholly-Owned Subsidiaries – Banks | 2,670.0 | 2,370.0 | ||||||
Investments in Wholly-Owned Subsidiaries – Banks | 10,799.9 | 9,349.8 | ||||||
– Nonbank | 172.8 | 163.0 | ||||||
Other Assets | 900.9 | 1,444.7 | ||||||
Total Assets | $ | 17,059.6 | $ | 15,886.6 | ||||
LIABILITIES | ||||||||
Senior Notes | $ | 3,122.4 | $ | 2,573.0 | ||||
Long Term Debt | 1,189.3 | 1,148.1 | ||||||
Floating Rate Capital Debt | 277.8 | 277.7 | ||||||
Other Liabilities | 781.8 | 796.8 | ||||||
Total Liabilities | 5,371.3 | 4,795.6 | ||||||
STOCKHOLDERS’ EQUITY | ||||||||
Preferred Stock | 884.9 | 1,273.4 | ||||||
Common Stock | 408.6 | 408.6 | ||||||
Additional Paid-in Capital | 963.6 | 1,013.1 | ||||||
Retained Earnings | 12,207.7 | 11,656.7 | ||||||
Accumulated Other Comprehensive Income (Loss) | 428.0 | (194.7) | ||||||
Treasury Stock | (3,204.5) | (3,066.1) | ||||||
Total Stockholders’ Equity | 11,688.3 | 11,091.0 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 17,059.6 | $ | 15,886.6 |
2020 Annual Report | Northern Trust Corporation 167
|
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions) | 2020 | 2019 | 2018 | ||||||||
OPERATING INCOME | |||||||||||
Dividends – Bank Subsidiaries | $ | 900.0 | $ | 2,024.1 | $ | 1,200.9 | |||||
– Nonbank Subsidiaries | — | 0.4 | — | ||||||||
Intercompany Interest and Other Charges | 46.5 | 115.1 | 91.9 | ||||||||
Interest and Other Income | 19.1 | 20.2 | (8.7) | ||||||||
Total Operating Income | 965.6 | 2,159.8 | 1,284.1 | ||||||||
OPERATING EXPENSES | |||||||||||
Interest Expense | 104.2 | 121.6 | 97.3 | ||||||||
Other Operating Expenses | 26.2 | 28.6 | 17.0 | ||||||||
Total Operating Expenses | 130.4 | 150.2 | 114.3 | ||||||||
Income before Income Taxes and Equity in Undistributed Net Income of Subsidiaries | 835.2 | 2,009.6 | 1,169.8 | ||||||||
Benefit for Income Taxes | 28.2 | 24.3 | 24.6 | ||||||||
Income before Equity in Undistributed Net Income of Subsidiaries | 863.4 | 2,033.9 | 1,194.4 | ||||||||
Equity in Undistributed Net Income of Subsidiaries – Banks | 326.0 | (559.9) | 336.7 | ||||||||
– Nonbank | 19.9 | 18.2 | 25.3 | ||||||||
Net Income | $ | 1,209.3 | $ | 1,492.2 | $ | 1,556.4 | |||||
Preferred Stock Dividends | 56.2 | 46.4 | 46.4 | ||||||||
Net Income Applicable to Common Stock | $ | 1,153.1 | $ | 1,445.8 | $ | 1,510.0 |
FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
(In Millions) | 2020 | 2019 | 2018 | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net Income | $ | 1,209.3 | $ | 1,492.2 | $ | 1,556.4 | |||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities | |||||||||||
Equity in Undistributed Net Income of Subsidiaries | (345.9) | 541.7 | (362.0) | ||||||||
Change in Prepaid Expenses | 398.5 | (400.4) | (0.6) | ||||||||
Change in Accrued Income Taxes | 3.7 | 114.1 | (141.8) | ||||||||
Other Operating Activities, net | 300.3 | 141.9 | 125.6 | ||||||||
Net Cash Provided by Operating Activities | 1,565.9 | 1,889.5 | 1,177.6 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Proceeds from Sale, Maturity and Redemption of Debt Securities – Available for Sale | — | — | 1.0 | ||||||||
Investments in and Advances to Subsidiaries, net | (800.0) | 540.0 | (436.5) | ||||||||
Acquisition of a Business, Net of Cash Received | — | — | (31.2) | ||||||||
Other Investing Activities, net | 1.8 | 3.7 | (3.1) | ||||||||
Net Cash (Used in) Provided by Investing Activities | (798.2) | 543.7 | (469.8) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Proceeds from Senior Notes | 993.2 | 498.0 | 497.9 | ||||||||
Repayments of Senior Notes | (508.6) | — | — | ||||||||
Redemption of Preferred Stock - Series C | (400.0) | — | — | ||||||||
Proceeds from Issuance of Preferred Stock - Series E | — | 392.5 | — | ||||||||
Treasury Stock Purchased | (299.8) | (1,100.2) | (924.3) | ||||||||
Net Proceeds from Stock Options | 19.5 | 44.0 | 32.6 | ||||||||
Cash Dividends Paid on Common Stock | (584.6) | (529.7) | (405.4) | ||||||||
Cash Dividends Paid on Preferred Stock | (45.9) | (46.4) | (46.4) | ||||||||
Other Financing Activities, net | 15.4 | 0.9 | 2.1 | ||||||||
Net Cash (Used In) Provided by Financing Activities | (810.8) | (740.9) | (843.5) | ||||||||
Net Change in Cash on Deposit with Subsidiary Bank | (43.1) | 1,692.3 | (135.7) | ||||||||
Cash on Deposit with Subsidiary Bank at Beginning of Year | 2,559.1 | 866.8 | 1,002.5 | ||||||||
Cash on Deposit with Subsidiary Bank at End of Year | $ | 2,516.0 | $ | 2,559.1 | $ | 866.8 |
168 2020 Annual Report | Northern Trust Corporation
|
2020 Annual Report | Northern Trust Corporation 169
|
170 2020 Annual Report | Northern Trust Corporation
|
2020 Annual Report | Northern Trust Corporation 171
|
For Northern Trust Corporation and Subsidiaries: | ||
Consolidated Balance Sheets - December 31, 2020 and 2019
|
||
Consolidated Statements of Income - Years Ended December 31, 2020, 2019, and 2018
|
||
Consolidated Statements of Comprehensive Income - Years Ended December 31, 2020, 2019, and 2018
|
||
Consolidated Statements of Changes in Stockholders’ Equity - Years Ended December 31, 2020, 2019, and 2018
|
||
Consolidated Statements of Cash Flows - Years Ended December 31, 2020, 2019, and 2018
|
||
Notes to Consolidated Financial Statements | ||
Report of Independent Registered Public Accounting Firm |
Exhibit
Number |
Description | ||||
4.4 | Certain instruments defining the rights of the holders of long-term debt of the Corporation and certain of its subsidiaries, none of which authorize a total amount of indebtedness in excess of 10% of the total assets of the Corporation and its subsidiaries on a consolidated basis, have not been filed as exhibits. The Corporation hereby agrees to furnish a copy of any of these agreements to the SEC upon request. | ||||
172 2020 Annual Report | Northern Trust Corporation
|
Exhibit
Number |
Description | ||||
2020 Annual Report | Northern Trust Corporation 173
|
Exhibit
Number |
Description | ||||
174 2020 Annual Report | Northern Trust Corporation
|
Exhibit
Number |
Description | ||||
101 |
Includes the following financial and related information from the Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Stockholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements.
|
||||
104 | The cover page from this Annual Report on Form 10-K, formatted in Inline XBRL. |
2020 Annual Report | Northern Trust Corporation 175
|
Northern Trust Corporation | |||||
(Registrant) | |||||
By: | /s/ Michael G. O’Grady | ||||
Michael G. O’Grady | |||||
Chairman, President, and Chief Executive Officer |
Signature | Capacity | |||||||
/s/ Michael G. O'Grady |
Chairman, President, and Chief Executive Officer
(Principal Executive Officer) |
|||||||
Michael G. O’Grady | ||||||||
/s/ Jason J. Tyler |
Executive Vice President and Chief Financial Officer
(Principal Financial Officer) |
|||||||
Jason J. Tyler | ||||||||
/s/ Lauren Allnutt |
Executive Vice President and Controller
(Principal Accounting Officer) |
|||||||
Lauren Allnutt | ||||||||
/s/ Linda Walker Bynoe | Director | |||||||
Linda Walker Bynoe | ||||||||
/s/ Susan Crown | Director | |||||||
Susan Crown | ||||||||
/s/ Dean M. Harrison | Director | |||||||
Dean M. Harrison | ||||||||
/s/ Jay L. Henderson | Director | |||||||
Jay L. Henderson | ||||||||
/s/ Marcy S. Klevorn | Director | |||||||
Marcy S. Klevorn | ||||||||
/s/ Siddharth N. (Bobby) Mehta | Director | |||||||
Siddharth N. (Bobby) Mehta | ||||||||
176 2020 Annual Report | Northern Trust Corporation
|
/s/ Jose Luis Prado | Director | |||||||
Jose Luis Prado | ||||||||
/s/ Thomas E. Richards | Director | |||||||
Thomas E. Richards | ||||||||
/s/ Martin P. Slark | Director | |||||||
Martin P. Slark | ||||||||
/s/ David H.B. Smith, Jr. | Director | |||||||
David H.B. Smith, Jr. | ||||||||
/s/ Donald Thompson | Director | |||||||
Donald Thompson | ||||||||
/s/ Charles A. Tribbett, III | Director | |||||||
Charles A. Tribbett, III |
2020 Annual Report | Northern Trust Corporation 177
|
Percent Owned |
Jurisdiction of
Incorporation |
|||||||
The Northern Trust Company | 100% | Illinois | ||||||
Equity Data Science, Inc. | 18.2% | Delaware | ||||||
MFC Company, Inc.
|
100% | Delaware | ||||||
Norlease, Inc.
|
100% | Delaware | ||||||
Northern CDE Corporation
|
100% | Illinois | ||||||
Northern Operating Solutions Private Limited | 100% | India | ||||||
Northern Trust Company of California
|
100% | California | ||||||
Northern Trust Guernsey Holdings Limited
|
100% | Guernsey | ||||||
Northern Trust (Guernsey) Limited
|
100% | Guernsey | ||||||
Northern Trust Hedge Fund Services LLC
|
100% | Delaware | ||||||
Northern Trust Holdings Limited
|
100% | England | ||||||
Northern Trust Global Services SE
|
100% | Luxembourg | ||||||
Northern Trust Switzerland AG
|
100% | Switzerland | ||||||
NT Property Nominees 1A Limited
|
100% | England | ||||||
NT Property Nominees 1B Limited
|
100% | England | ||||||
Northern Trust Investments, Inc.
|
100% | Illinois | ||||||
Belvedere Advisors LLC
|
100% | California | ||||||
Northern Trust Global Investments Japan, K.K. | 100% | Japan | ||||||
Nortrust Nominees Limited
|
100% | England | ||||||
NTC-Dormae NMTC Fund, LLC
|
100% | Delaware | ||||||
The Northern Trust Company of Delaware
|
100% | Delaware | ||||||
The Northern Trust Company of Nevada
|
100% | Nevada | ||||||
The Northern Trust Company UK Pension Plan Limited
|
100% | England | ||||||
The Northern Trust Company, Canada
|
100% | Ontario, Canada | ||||||
The Northern Trust International Banking Corporation
|
100% | Edge Act | ||||||
Northern Operating Services Private Limited
|
100% | India | ||||||
Northern Trust Cayman International, Ltd.
|
100% | Cayman Islands, BWI | ||||||
Northern Trust Equities Limited
|
100% | England | ||||||
Northern Trust Fund Managers (Ireland) Limited
|
100% | Ireland | ||||||
Northern Trust Global Fund Services Cayman Limited
|
100% | Cayman Islands, BWI | ||||||
Northern Trust Management Services Asia Pte. Ltd.
|
100% | Singapore | ||||||
Northern Operating Services Asia Inc.
|
99.99% | Philippines | ||||||
The Northern Trust Company of Hong Kong Limited
|
100% | Hong Kong | ||||||
Northern Trust Management Services Limited
|
100% | England | ||||||
Northern Trust Global Investments Limited
|
100% | England | ||||||
Northern Trust Partners Scotland Limited
|
100% | Scotland | ||||||
Northern Trust Securities LLP
|
100% | England | ||||||
NT Global Advisors, Inc.
|
100% | Ontario, Canada | ||||||
The Northern Trust Scottish Limited Partnership
|
100% | Scotland | ||||||
Northern Trust (Ireland) Limited
|
100% | Ireland | ||||||
Northern Trust Fiduciary Services (Ireland) Limited
|
100% | Ireland | ||||||
Northern Trust Fund Services (Ireland) Limited
|
100% | Ireland | ||||||
Northern Trust International Fund Administration Services (Ireland) Limited
|
100% | Ireland | ||||||
Northern Trust Management Services (Ireland) Limited
|
100% | Ireland | ||||||
Northern Trust Nominees (Ireland) Limited
|
100% | Ireland | ||||||
Northern Trust Pension Trustees (Ireland) Limited
|
100% | Ireland | ||||||
Northern Trust GFS Holdings Limited
|
100% | Guernsey |
Percent Owned |
Jurisdiction of
Incorporation |
|||||||
Northern Trust Fiduciary Services (Guernsey) Limited
|
100% | Guernsey | ||||||
Arnold Limited
|
100% | Guernsey | ||||||
Doyle Administration Limited
|
100% | Guernsey | ||||||
Barfield Nominees Limited
|
100% | Guernsey | ||||||
Truchot Limited
|
100% | Guernsey | ||||||
Vivian Limited
|
100% | Guernsey | ||||||
Northern Trust International Fund Administration Services (Guernsey) Limited
|
100% | Guernsey | ||||||
Admiral Nominees Limited
|
100% | Guernsey | ||||||
Nelson Representatives Limited
|
100% | Guernsey | ||||||
Northern Trust Management Services (Deutschland) GmbH i.L.
|
100% | Germany | ||||||
NT EBT Limited
|
100% | England | ||||||
The Northern Trust Company of Saudi Arabia (a closed joint stock company)
|
100% | Kingdom of Saudi Arabia | ||||||
TNT-APF NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-BH NMTC Fund, LLC | 100% | Illinois | ||||||
Northern CDE 10, LLC | 100% | Illinois | ||||||
TNT-CASFV NMTC Fund, LLC | 100% | Illinois | ||||||
Northern CDE 7, LLC | 100% | Illinois | ||||||
TNT-Clinica Tepeyac NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-Colorado Coalition NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-DHA NMTC Fund, LLC | 100% | Illinois | ||||||
Northern CDE 2, LLC | 100% | Illinois | ||||||
TNT-Eastside NMTC Fund, LLC | 100% | Illinois | ||||||
Northern CDE 1, LLC | 100% | Illinois | ||||||
TNT-GNG NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-Guadalupe NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-HCCH NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-HHO NMTC Fund, LLC | 100% | Illinois | ||||||
Northern CDE 5, LLC | 100% | Illinois | ||||||
TNT-HopeWorks NMTC Fund, LLC | 100% | Illinois | ||||||
Northern CDE 6, LLC | 100% | Illinois | ||||||
TNT-HW 1 NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-IndieDwell NMTC Fund, LLC | 100% | Illinois | ||||||
Northern CDE 8, LLC | 100% | Illinois | ||||||
TNT-Indigo NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-Jewel NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-JT NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-Live6 NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-Marygrove NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-ML NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-New Legacy NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-Overtown NMTC Fund, LLC | 100% | Illinois | ||||||
TNT-PBSA NMTC Fund, LLC | 100% | Illinois | ||||||
Northern CDE 3, LLC | 100% | Illinois | ||||||
TNT-RWA NMTC Fund, LLC | 100% | Illinois | ||||||
Northern CDE 9, LLC | 100% | Illinois | ||||||
TNT-Student U NMTC Fund, LLC | 100% | Illinois | ||||||
Northern CDE 4, LLC | 100% | Illinois |
Percent Owned |
Jurisdiction of
Incorporation |
|||||||
50 South Capital Advisors, LLC | 100% | Delaware | ||||||
Equilend Holdings LLC | 10% | Delaware | ||||||
Northern Trust European Holdings Limited | 100% | England | ||||||
Northern Trust Holdings L.L.C. | 100% | Delaware | ||||||
Northern Trust Securities, Inc. | 100% | Delaware | ||||||
Northern Trust Services, Inc. | 100% | Illinois | ||||||
Nortrust Realty Management, Inc. | 100% | Illinois | ||||||
NTC Capital I | 100% | Delaware | ||||||
NTC Capital II | 100% | Delaware | ||||||
Parilux Investment Technology, LLC | 66% | New Jersey |
Date: | February 23, 2021 | /s/ Michael G. O’Grady | ||||||
Michael G. O’Grady | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Date: | February 23, 2021 | /s/ Jason J. Tyler | ||||||
Jason J. Tyler | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) |
/s/ Michael G. O’Grady | ||
Michael G. O’Grady | ||
Chief Executive Officer | ||
(Principal Executive Officer) | ||
February 23, 2021 |
/s/ Jason J. Tyler | ||
Jason J. Tyler | ||
Chief Financial Officer | ||
(Principal Financial Officer) | ||
February 23, 2021 |