Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 31, 2021 | Jun. 30, 2020 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-36609 | ||
Entity Registrant Name | NORTHERN TRUST CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 36-2723087 | ||
Entity Address, Address Line One | 50 South La Salle Street | ||
Entity Address, City or Town | Chicago, | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60603 | ||
City Area Code | 312 | ||
Local Phone Number | 630-6000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth | false | ||
Entity Small Business | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 16.4 | ||
Entity Common Stock, Shares Outstanding (in shares) | 208,314,381 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000073124 | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $1.66 2/3 Par Value | ||
Trading Symbol | NTRS | ||
Security Exchange Name | NASDAQ | ||
Series E Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Depositary Shares, each representing 1/1,000th interest in a share of Series E Non-Cumulative Perpetual Preferred Stock | ||
Trading Symbol | NTRSO | ||
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 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 |
Interest-Bearing Deposits with Banks | 4,372.6 | 4,877.1 |
Federal funds sold | 0 | 5 |
Securities Purchased under Agreements to Resell | 1,596.5 | 707.8 |
Debt Securities | ||
Available for Sale | 42,022 | 38,876.3 |
Held to Maturity | 17,791.1 | 12,284.5 |
Trading Account | 0.5 | 0.3 |
Total Debt Securities | 59,813.6 | 51,161.1 |
Loans and Leases | ||
Total Loans and Leases | 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 |
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 |
Non U.S. Offices Interest-Bearing | 71,198.4 | 60,400.3 |
Total Deposits | 143,878 | 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 |
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 | ||
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 | (194.7) |
Treasury Stock | (3,204.5) | (3,066.1) |
Total Stockholders’ Equity | 11,688.3 | 11,091 |
Total Liabilities and Stockholders’ Equity | 170,003.9 | 136,828.4 |
Commercial | ||
Loans and Leases | ||
Total Loans and Leases | 15,262 | 14,001.3 |
Personal | ||
Loans and Leases | ||
Total Loans and Leases | 18,497.7 | 17,408.3 |
Series C Preferred Stock | ||
STOCKHOLDERS' EQUITY | ||
Preferred Stock | 0 | 388.5 |
Series D Preferred Stock | ||
STOCKHOLDERS' EQUITY | ||
Preferred Stock | 493.5 | 493.5 |
Series E Preferred Stock | ||
STOCKHOLDERS' EQUITY | ||
Preferred Stock | $ 391.4 | $ 391.4 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt securities | $ 41,155.7 | $ 38,722.2 |
Held to maturity, fair value | 17,797.4 | 12,249.3 |
Financing receivable, deferred commitment fee | $ 9.8 | $ 14.1 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, par value (in dollars per share) | $ 1.6667 | $ 1.6667 |
Common stock, shares authorized (in shares) | 560,000,000 | 560,000,000 |
Common stock, shares outstanding (in shares) | 208,289,178 | 209,709,046 |
Treasury stock, shares (in shares) | 36,882,346 | 35,462,478 |
Series C Preferred Stock | ||
Preferred stock, shares outstanding (in shares) | 0 | 16,000 |
Series D Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0 | |
Preferred stock, shares outstanding (in shares) | 5,000 | 5,000 |
Series E Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0 | |
Preferred stock, shares outstanding (in shares) | 16,000 | 16,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Noninterest Income | |||
Trust, Investment and Other Servicing Fees | $ 3,995 | $ 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 | 145.5 | 127.5 |
Investment Security Gains (Losses), net | (0.4) | (1.4) | (1) |
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 | 698.7 |
Net Interest Income | 1,443.2 | 1,677.9 | 1,622.7 |
Provision for Credit Losses | 125 | (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 | 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 |
PER COMMON SHARE | |||
Net Income - Basic (in dollars per share) | $ 5.48 | $ 6.66 | $ 6.68 |
Net Income - Diluted (in dollars per share) | $ 5.46 | $ 6.63 | $ 6.64 |
Average Number of Common Shares Outstanding - Basic (in shares) | 208,319,412 | 214,525,547 | 223,148,335 |
Average Number of Common Shares Outstanding - Diluted (in shares) | 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 | $ (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) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
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 | (14.1) |
Comprehensive Income | $ 1,832 | $ 1,751.2 | $ 1,542.3 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Millions | Total | Cumulative Effect Adjustment | Adjusted Balance | PREFERRED STOCK | PREFERRED STOCKAdjusted Balance | COMMON STOCK | COMMON STOCKAdjusted Balance | ADDITIONAL PAID-IN CAPITAL | ADDITIONAL PAID-IN CAPITALAdjusted Balance | RETAINED EARNINGS | RETAINED EARNINGSCumulative Effect Adjustment | RETAINED EARNINGSAdjusted Balance | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)Adjusted Balance | TREASURY STOCK | TREASURY STOCKAdjusted Balance |
Balance, beginning of period at Dec. 31, 2017 | $ 10,216.2 | $ (4.5) | $ 882 | $ 408.6 | $ 1,047.2 | $ 9,685.1 | $ (4.5) | $ (414.3) | $ (1,392.4) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Reclassification of Certain Tax Effects from AOCI | 0 | 25.3 | (25.3) | |||||||||||||
Net Income | 1,556.4 | 1,556.4 | ||||||||||||||
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications) | (14.1) | (14.1) | ||||||||||||||
Dividends – Common Stock | (439.1) | (439.1) | ||||||||||||||
Preferred Stock | (46.4) | (46.4) | ||||||||||||||
Stock Awards and Options Exercised | 164.1 | 21.3 | 142.8 | |||||||||||||
Stock Purchased | (924.3) | (924.3) | ||||||||||||||
Balance, end of period at Dec. 31, 2018 | 10,508.3 | 882 | 408.6 | 1,068.5 | 10,776.8 | (453.7) | (2,173.9) | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net Income | 1,492.2 | 1,492.2 | ||||||||||||||
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications) | 259 | 259 | ||||||||||||||
Dividends – Common Stock | (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 | 152.6 | (55.4) | 208 | |||||||||||||
Stock Purchased | (1,100.2) | (1,100.2) | ||||||||||||||
Balance, end of period at Dec. 31, 2019 | $ 11,091 | $ (10.1) | $ 11,080.9 | 1,273.4 | $ 1,273.4 | 408.6 | $ 408.6 | 1,013.1 | $ 1,013.1 | 11,656.7 | $ (10.1) | $ 11,646.6 | (194.7) | $ (194.7) | (3,066.1) | $ (3,066.1) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||||||||||||
Net Income | $ 1,209.3 | 1,209.3 | ||||||||||||||
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications) | 622.7 | 622.7 | ||||||||||||||
Dividends – Common Stock | (592) | (592) | ||||||||||||||
Preferred Stock | (44.7) | (44.7) | ||||||||||||||
Redemption of Preferred Stock, Series C | (400) | (388.5) | (11.5) | |||||||||||||
Stock Awards and Options Exercised | 111.9 | (49.5) | 161.4 | |||||||||||||
Stock Purchased | (299.8) | (299.8) | ||||||||||||||
Balance, end of period at Dec. 31, 2020 | $ 11,688.3 | $ 884.9 | $ 408.6 | $ 963.6 | $ 12,207.7 | $ 428 | $ (3,204.5) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared (in USD per share) | $ 2.80 | $ 2.60 | $ 1.94 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 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 |
Amortization and Accretion of Securities and Unearned Income, net | 88.9 | 64.6 | 95.9 |
Provision for Credit Losses | 125 | (14.5) | (14.5) |
Depreciation and Amortization | 500.3 | 458.9 | 460.9 |
Change in Accrued Income Taxes | 25.4 | (70.7) | (130) |
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) |
Change in Interest Payable | (23.6) | (23.6) | 28.5 |
Change in Collateral With Derivative Counterparties, net | (17.8) | 1,154 | (699.6) |
Other Operating Activities, net | (16.4) | (448.2) | 729.9 |
Net Cash Provided by Operating Activities | 1,896.8 | 2,592 | 1,767.5 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Change in Federal Funds Sold | 5 | 129 | (113) |
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) | (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) | (97.6) |
Purchases and Development of Computer Software | (424.6) | (441.8) | (408.4) |
Change in Client Security Settlement Receivables | (226.8) | 821 | (49.7) |
Acquisition of a Business, Net of Cash Received | 0 | (10.5) | (104.2) |
Bank-Owned Life Insurance Policy Premiums | 0 | (1,500) | 0 |
Other Investing Activities, net | (322.7) | 225.1 | (873.6) |
Net Cash (Used in) Provided by Investing Activities | (29,923) | (3,405) | 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) | 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 | 0 |
Proceeds from Senior Notes | 993.2 | 498 | 497.9 |
Repayments of Senior Notes | (508.6) | 0 | (314.3) |
Proceeds from Issuance of Preferred Stock - Series E | 0 | 392.5 | 0 |
Treasury Stock Purchased | (299.8) | (1,100.2) | (924.3) |
Net Proceeds from Stock Options | 19.5 | 44 | 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) | 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 | 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 | 0 |
Transfers to Leases Held For Sale from Leases | $ 0 | $ 53.6 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) and reporting practices prescribed for the banking industry. A description of the more significant accounting policies follows. A. Basis of Presentation. The consolidated financial statements include the accounts of Northern Trust Corporation (Corporation) and its wholly-owned subsidiary, The Northern Trust Company (Bank), and various other wholly-owned subsidiaries of the Corporation and Bank. Throughout the notes to the consolidated financial statements, the term “Northern Trust” refers to the Corporation and its subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The consolidated statements of income include results of acquired subsidiaries from the dates of acquisition. Certain prior-year balances have been reclassified consistent with the current year’s presentation. B. Nature of Operations. The Corporation is a bank holding company that has elected to be a financial holding company under the Bank Holding Company Act of 1956, as amended. The Bank is an Illinois banking corporation headquartered in Chicago and the Corporation’s principal subsidiary. The Corporation conducts business in the United States (U.S.) and internationally through various U.S. and non-U.S. subsidiaries, including the Bank. Northern Trust generates the majority of its revenue from its two client-focused reporting segments: Corporate & Institutional Services (C&IS) and Wealth Management. Asset management and related services are provided to C&IS and Wealth Management clients primarily by the Asset Management business. C&IS is a leading global provider of asset servicing and related services to corporate and public retirement funds, foundations, endowments, fund managers, insurance companies, sovereign wealth funds, and other institutional investors around the globe. Asset servicing and related services encompass a full range of capabilities including but not limited to: global custody; fund administration; investment operations outsourcing; investment management; investment risk and analytical services; employee benefit services; securities lending; foreign exchange; treasury management; brokerage services; transition management services; banking and cash management. Client relationships are managed through the Bank and the Bank’s and the Corporation’s other subsidiaries, including support from locations in North America, Europe, the Middle East, and the Asia-Pacific region. Wealth Management focuses on high-net-worth individuals and families, business owners, executives, professionals, retirees, and established privately-held businesses in its target markets. The business also includes the Global Family Office, which provides customized services to meet the complex financial needs of individuals and family offices in the U.S. and throughout the world with assets typically exceeding $200 million. In supporting these targeted segments, Wealth Management provides trust, investment management, custody, and philanthropic services; financial consulting; guardianship and estate administration; family business consulting; family financial education; brokerage services; and private and business banking. Wealth Management services are delivered by multidisciplinary teams through a network of offices in 19 U.S. states and Washington, D.C., as well as offices in London, Guernsey, and Abu Dhabi. C. Use of Estimates in the Preparation of Financial Statements. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions in the application of certain of our significant accounting policies that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. D. Foreign Currency Remeasurement and Translation. Asset and liability accounts denominated in nonfunctional currencies are remeasured into functional currencies at period-end rates of exchange, except for certain balance sheet items including but not limited to buildings and equipment, goodwill and other intangible assets, which are remeasured at historical exchange rates. Results from remeasurement of asset and liability accounts are reported in Other Operating Income as currency translation gains (losses), net, on the consolidated statements of income. Income and expense accounts are remeasured at period-average rates of exchange. Asset and liability accounts of entities with functional currencies that are not the U.S. dollar are translated at period-end rates of exchange. Income and expense accounts are translated at period-average rates of exchange. Translation adjustments, net of applicable taxes, are reported directly to accumulated other comprehensive income (AOCI), a component of stockholders’ equity. E. Securities. Securities Available for Sale are reported at fair value, with unrealized gains and losses credited or charged, net of the tax effect, to AOCI. Realized gains and losses on securities available for sale are determined on a specific identification basis and are reported within Investment Security Gains (Losses), net, on the consolidated statements of income. Interest income is recorded on the accrual basis, adjusted for the amortization of premium and accretion of discount. Securities Held to Maturity consist of debt securities that management intends to, and Northern Trust has the ability to, hold until maturity. Such securities are reported at cost, adjusted for amortization of premium and accretion of discount. Interest income is recorded on the accrual basis adjusted for the amortization of premium and accretion of discount. Securities Held for Trading are reported at fair value. Realized and unrealized gains and losses on securities held for trading are reported within Security Commissions and Trading Income on the consolidated statements of income. Nonmarketable Securities primarily consist of Federal Reserve Bank of Chicago and Federal Home Loan Bank stock and community development investments, each of which are recorded in Other Assets on the consolidated balance sheets. Federal Reserve Bank of Chicago and Federal Home Loan Bank stock are reported at cost, which represents redemption value. Community development investments are typically reported at amortized cost. Those community development investments that are designed to generate a return primarily through realization of tax credits and other tax benefits, which are discussed in further detail in Note 29, “Variable Interest Entities,” are amortized over the lives of the related tax credits and other tax benefits. F. Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase. Northern Trust participates in the repurchase agreement market as a relatively low cost alternative for short-term funding. Securities purchased under agreements to resell and securities sold under agreements to repurchase are accounted for as collateralized financings and recorded at the amounts at which the securities were acquired or sold plus accrued interest. To minimize any potential credit risk associated with these transactions, the fair value of the securities purchased or sold is monitored, limits are set on exposure with counterparties, and the financial condition of counterparties is regularly assessed. It is Northern Trust’s policy to take possession, either directly or via third-party custodians, of securities purchased under agreements to resell. Securities sold under agreements to repurchase are held by the counterparty until the repurchase. G. Derivative Financial Instruments. Northern Trust is a party to various derivative financial instruments that are used in the normal course of business to meet the needs of its clients, as part of its trading activity for its own account, and as part of its risk management activities. These instruments generally include foreign exchange contracts, interest rate contracts, total return swap contracts and credit default swap contracts. All derivative financial instruments, whether designated as hedges or not, are recorded at fair value within Other Assets and Other Liabilities on the consolidated balance sheets. Derivative asset and liability positions with the same counterparty are reflected on a net basis on the consolidated balance sheets in cases where legally enforceable master netting arrangements or similar agreements exist. These derivative assets and liabilities are further reduced by cash collateral received from, and deposited with, derivative counterparties. The accounting for changes in the fair value of a derivative on the consolidated statements of income depends on whether or not the contract has been designated as a hedge and qualifies for hedge accounting under GAAP. Derivative financial instruments are recorded within the line item, Other Operating Activities, net, on the consolidated statement of cash flows, except for net investment hedges which are recorded within Other Investing Activities, net. Changes in the fair value of client-related and trading derivative instruments, which are not designated hedges under GAAP, are recognized currently in either Foreign Exchange Trading Income or Security Commissions and Trading Income on the consolidated statements of income. Changes in the fair value of derivative instruments entered into for risk management purposes but not designated as hedges are recognized currently in Other Operating Income on the consolidated statements of income. Certain derivative instruments used by Northern Trust to manage risk are formally designated and qualify for hedge accounting as fair value, cash flow, or net investment hedges. Derivatives designated as fair value hedges are used to limit Northern Trust’s exposure to changes in the fair value of assets and liabilities due to movements in interest rates. Changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability attributable to the hedged risk are recognized currently in Interest Income or Interest Expense on the consolidated statements of income. For substantially all fair value hedges, Northern Trust applies the “shortcut” method of accounting, available under GAAP. As a result, changes recorded in the fair value of the hedged item are assumed to equal the offsetting gain or loss on the derivative. For fair value hedges that do not qualify for the “shortcut” method of accounting, Northern Trust utilizes regression analysis in assessing whether these hedging relationships are highly effective at inception and quarterly thereafter. Derivatives designated as cash flow hedges are used to minimize the variability in cash flows of earning assets or forecasted transactions caused by movements in interest or foreign exchange rates. Changes in the fair value of such derivatives are recognized in AOCI, a component of stockholders’ equity, and there is no change to the accounting for the hedged item. Balances in AOCI are reclassified to earnings when the hedged forecasted transaction impacts earnings, and are reflected in the same income statement line item. Northern Trust applies the “shortcut” method of accounting for cash flow hedges of certain available for sale investment securities. For cash flow hedges of certain other available for sale investment securities, foreign currency denominated investment securities, and forecasted foreign currency denominated revenue and expenditure transactions, Northern Trust closely matches all terms of the hedged item and hedging derivative at inception and on an ongoing basis. For cash flow hedges of available for sale investment securities, to the extent all terms are not perfectly matched, effectiveness is assessed using regression analysis. For cash flow hedges of forecasted foreign currency denominated revenue and expenditure transactions and investment securities, to the extent all terms are not perfectly matched, effectiveness is assessed using the dollar-offset method. Foreign exchange contracts and qualifying non-derivative instruments designated as net investment hedges are used to minimize Northern Trust’s exposure to variability in the foreign currency translation of net investments in non-U.S. branches and subsidiaries. Changes in the fair value of the hedging instrument are recognized in AOCI consistent with the related translation gains and losses of the hedged net investment. For net investment hedges, all critical terms of the hedged item and the hedging instrument are matched at inception and on an ongoing basis. Amounts recorded in AOCI are reclassified to earnings only upon the sale or liquidation of an investment in a non-U.S. branch or subsidiary. Fair value, cash flow, and net investment hedges are designated and formally documented as such contemporaneous with the transaction. The formal documentation describes the hedge relationship and identifies the hedging instruments and hedged items. Included in the documentation is a discussion of the risk management objectives and strategies for undertaking such hedges, the nature of the risk being hedged, and a description of the method for assessing hedge effectiveness at inception and on an ongoing basis. For hedges that do not qualify for the “shortcut” or the critical terms match methods of accounting, a formal assessment is performed on a calendar quarter basis to verify that derivatives used in hedging transactions continue to be highly effective in offsetting the changes in fair value or cash flows of the hedged item. Hedge accounting is discontinued if a derivative ceases to be highly effective, matures, is terminated or sold, if a hedged forecasted transaction is no longer expected to occur, or if Northern Trust removes the derivative’s hedge designation. Subsequent gains and losses on these derivatives are included in Foreign Exchange Trading Income or Security Commissions and Trading Income on the consolidated statements of income. For discontinued cash flow hedges, the accumulated gain or loss on the derivative remains in AOCI and is reclassified to earnings in the period in which the previously hedged forecasted transaction impacts earnings or is no longer probable of occurring. For discontinued fair value hedges, the previously hedged asset or liability ceases to be adjusted for changes in its fair value. Previous adjustments to the hedged item are amortized over the remaining life of the hedged item. H. Loans and Leases. Loans and leases are recognized assets that represent a contractual right to receive money either on demand or on fixed or determinable dates. Loans and leases are disaggregated for disclosure purposes by portfolio segment (segment) and by class. Northern Trust has defined its segments as commercial and personal. A class of loans and leases is a subset of a segment, the components of which have similar risk characteristics, measurement attributes, or risk monitoring methods. The classes within the commercial segment have been defined as commercial and institutional, commercial real estate, lease financing, net, non-U.S. and other. The classes within the personal segment have been defined as residential real estate, private client and other. Loan Classification. Loans that are held for investment are reported at the principal amount outstanding, net of unearned income. Loans classified as held for sale are reported at the lower of cost or fair value. Undrawn commitments relating to loans that are not held for sale are recorded in Other Liabilities and are carried at the amount of unamortized fees with an allowance for credit loss liability recognized for any estimated expected losses. Nonaccrual Loans and Recognition of Income. Interest income on loans and leases is recorded on an accrual basis unless, in the opinion of management, there is a question as to the ability of the debtor to meet the terms of the loan agreement, or interest or principal is more than 90 days contractually past due and the loan is not well-secured and in the process of collection. Loans meeting such criteria are classified as nonaccrual and interest income is recorded on a cash basis. Past due status is based on how long since the contractual due date a principal or interest payment has been past due. For disclosure purposes, loans that are 29 days past due or less are reported as current. At the time a loan is determined to be nonaccrual, interest accrued but not collected is reversed against interest income in the current period. Interest collected on nonaccrual loans is applied to principal unless, in the opinion of management, collectability of principal is not in doubt. Management’s assessment of indicators of loan and lease collectability, and its policies relative to the recognition of interest income, including the suspension and subsequent resumption of income recognition, do not meaningfully vary between loan and lease classes. Nonaccrual loans are returned to performing status when factors indicating doubtful collectability no longer exist. Factors considered in returning a loan to performing status are consistent across all classes of loans and leases and, in accordance with regulatory guidance, relate primarily to expected payment performance. A loan is eligible to be returned to performing status when: (i) no principal or interest that is due is unpaid and repayment of the remaining contractual principal and interest is expected or (ii) the loan has otherwise become well-secured (possessing realizable value sufficient to discharge the debt, including accrued interest, in full) and is in the process of collection (through action reasonably expected to result in debt repayment or restoration to a current status in the near future). A loan that has not been brought fully current may be restored to performing status provided there has been a sustained period of repayment performance (generally a minimum of six payment periods) by the borrower in accordance with the contractual terms, and Northern Trust is reasonably assured of repayment within a reasonable period of time. Additionally, a loan that has been formally restructured so as to be reasonably assured of repayment and performance according to its modified terms may be returned to accrual status, provided there was a well-documented credit evaluation of the borrower’s financial condition and prospects of repayment under the revised terms, and there has been a sustained period of repayment performance (generally a minimum of six payment periods) under the revised terms. Troubled Debt Restructurings (TDRs). A loan that has been modified as a concession by Northern Trust or a bankruptcy court resulting from the debtor’s financial difficulties is referred to as a troubled debt restructuring (TDR). All TDRs are reported as TDRs starting in the calendar year of their restructuring. In subsequent years, a TDR may cease being reported as a TDR if the loan was modified at a market rate and has performed according to the modified terms for at least six payment periods. A loan that has been modified at a below market rate will return to accrual status if it satisfies the six-payment-period performance requirement. The expected credit loss is measured based upon the present value of expected future cash flows, discounted at the effective interest rate based on the original contractual rate. If a loan’s contractual interest rate varies based on subsequent changes in an independent factor, such as an index or rate, the loan’s effective interest rate is calculated based on the factor as it changes over the life of the loan. Northern Trust elected not to project changes in the factor for purposes of estimating expected future cash flows. Further, Northern Trust elected not to adjust the effective interest rate for prepayments. If the loan is collateral dependent, the expected loss is measured based on the fair value of the collateral at the reporting date. If the loan valuation is less than the recorded value of the loan, either an allowance is established, or a charge-off is recorded, for the difference. Smaller balance (individually less than $1 million) homogeneous loans are collectively evaluated. Northern Trust’s accounting policies for material nonaccrual loans is consistent across all classes of loans and leases. All loans and leases with TDR modifications are evaluated for additional expected credit losses. The nature and extent of further deterioration in credit quality, including a subsequent default, is considered in the determination of an appropriate level of allowance for credit losses. Collateral Dependent Financial Assets. A financial asset is collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. Most of Northern Trust’s collateral dependent credit exposure relates to its residential real estate portfolio for which the collateral is usually the underlying real estate property. For collateral dependent financial assets, it is Northern Trust’s policy to reserve or charge-off the difference between the amortized cost basis of the loan and the value of the collateral. Premium, Discounts, Origination Costs and Fees. Premiums and discounts on loans are recognized as an adjustment of yield using the interest method based on the contractual terms of the loan. Certain direct origination costs and fees are netted, deferred and amortized over the life of the related loan as an adjustment to the loan’s yield. Direct Financing and Leveraged Leases. Unearned lease income from direct financing and leveraged leases is recognized using the interest method. This method provides a constant rate of return on the unrecovered investment over the life of the lease. The rate of return and the allocation of income over the lease term are recalculated from the inception of the lease if during the lease term assumptions regarding the amount or timing of estimated cash flows change. Lease residual values are established at the inception of the lease based on in-house valuations and market analyses provided by outside parties. I. Allowance for Credit Losses. 2020 Allowance for Credit Losses after the Adoption of Accounting Standards Update No. 2016-13 As of December 31, 2020, the allowance for credit losses represents management’s best estimate of lifetime expected credit losses related to various portfolios subject to credit risk, off-balance sheet credit exposure, and specific borrower relationships. Northern Trust measures expected credit losses of financial assets with similar risk characteristics on a collective basis. A financial asset is measured individually if it does not share similar risk characteristics with other financial assets and the related allowance is determined through an individual evaluation. Management’s estimates utilized in establishing an appropriate level of allowance for credit losses are not dependent on any single assumption. In determining an appropriate allowance level, management evaluates numerous variables, many of which are interrelated or dependent on other assumptions and estimates, and takes into consideration past events, current conditions and reasonable and supportable forecasts. Forecasting and Reversion. Estimating expected lifetime credit losses requires the consideration of the effect of future economic conditions. Northern Trust employs multiple scenarios over a reasonable and supportable period to project future conditions. Management determines the probability weights assigned to each scenario at each quarter-end. Key variables determined to be relevant for projecting credit losses on the portfolios in scope include macroeconomic factors, such as corporate profits, unemployment, and real estate price indices, as well as financial market factors such as equity prices, volatility, and credit spreads. For periods beyond the reasonable and supportable period, Northern Trust reverts to its own historical loss experiences. Allowance for Loans and Leases. The allowance estimation methodology for the collective assessment is primarily based on internally developed loss data specific to the Northern Trust financial asset portfolio from a historical observation period that includes both expansionary and recessionary periods. The estimation methodology and the related qualitative adjustment framework segregate the loan and lease portfolio into homogeneous segments based on similar risk characteristics or risk monitoring methods. Northern Trust utilizes a quantitative probability of default/loss given default approach for the calculation of its credit allowance on a collective basis. For each of the different parameters, specific credit models for the individual loan segments were developed. For each segment, the probability of default and the loss given default are applied to the exposure at default for each projected quarter to determine the quantitative component of the allowance. The quantitative allowance is then reviewed within a qualitative adjustment framework, through which management applies judgment by assessing internal risk factors, potential limitations in the quantitative methodology, and environmental factors that are not fully contemplated in the forecast to compute an adjustment to the quantitative allowance for each segment of the loan portfolio. The allowance related to credit exposure evaluated on an individual basis is determined through an individual evaluation of loans, leases, and lending-related commitments considered impaired that is based on expected future cash flows, the value of collateral, and other factors that may impact the borrower’s ability to pay. For impaired loans for which the amount of allowance, if any, is determined based on the value of the underlying real estate collateral, third-party appraisals are typically obtained and utilized by management. These appraisals are generally less than twelve months old and are subject to adjustments to reflect management’s judgment as to the realizable value of the collateral. Northern Trust analyzes its exposure to credit losses from both on-balance sheet and off-balance sheet activity using a consistent methodology for the quantitative framework as well as the qualitative framework. As of December 31, 2020, for purposes of estimating the allowance for credit losses for undrawn loan commitments and standby letters of credit, the exposure at default includes an estimated drawdown of unused credit based on credit utilization factors, resulting in a proportionate amount of expected credit losses. Allowance for HTM Securities. Debt securities held to maturity classified as U.S. government, government sponsored agency, and certain securities classified as obligations of states and political subdivisions are considered to be guarantees of the U.S. government or an agency of the U.S. government and therefore an allowance for credit losses is not estimated for such investments as the expected probability of non-payment of the amortized cost basis is zero. Debt securities held to maturity classified as other asset-backed represent pools of underlying receivables from which the cash flows are used to pay the bonds that vary in seniority. Utilizing a qualitative estimation approach, the allowance for other asset-backed securities is assessed by evaluating underlying pool performance based on delinquency rates and available credit support. Debt securities held to maturity classified as other relates to investments purchased by Northern Trust to fulfill its obligations under the Community Reinvestment Act (CRA). Northern Trust fulfills its obligations under the CRA by making qualified investments for purposes of supporting institutions and programs that benefit low-to-moderate income communities within Northern Trust’s market area. The allowance for CRA investments is assessed using a qualitative estimation approach primarily based on internal historical performance experience and default history of the underlying CRA portfolios to determine a quantitative component of the allowance. The allowance estimation methodology for all other debt securities held to maturity is developed using a combination of external and internal data. The estimation methodology groups securities with shared characteristics for which the probability of default and the loss given default are applied to the total exposure at default to determine a quantitative component of the allowance. Allowance for Available for Sale Securities. Securities available for sale impairment reviews are conducted quarterly to identify and evaluate securities that have indications of possible credit losses. A determination as to whether a security’s decline in market value is related to credit impairment takes into consideration numerous factors and the relative significance of any single factor can vary by security. Factors Northern Trust considers in determining whether impairment is credit related include, but are not limited to, the severity of the impairment; the cause of the impairment and the financial condition and near-term prospects of the issuer; activity in the market of the issuer, which may indicate adverse credit conditions; Northern Trust’s intent regarding the sale of the security as of the balance sheet date; and the likelihood that Northern Trust will not be required to sell the security for a period of time sufficient to allow for the recovery of the security’s amortized cost basis. For each security meeting the requirements of Northern Trust’s internal screening process, an extensive review is conducted to determine if a credit loss has occurred that is then based on the best estimate of cash flows to be collected from the security, discounted using the security’s effective interest rate. If the present value of the expected cash flows is found to be less than the current amortized cost of the security, an allowance for credit losses is generally recorded equal to the difference between the two amounts, limited to the amount the amortized cost basis exceeds the fair value of the security. Allowance for Other Financial Assets. The allowance for other financial assets consists of the allowance for those other financial assets presented in Cash and Due from Banks, Other Central Bank Deposits, Interest-Bearing Deposits with Banks, Federal Funds Sold, and Other Assets. The Other Assets category includes other miscellaneous credit exposures reported in Other Assets on the consolidated balance sheets. The allowance estimation methodology for other financial assets primarily utilizes a similar approach as used for the debt securities held to maturity portfolio. It consists of a combination of externally and internally developed loss data, adjusted for the appropriate contractual term. Northern Trust’s portfolio is composed mostly of institutions within the “1 to 3” internal borrower rating category and expected to exhibit minimal to modest likelihood of loss. The portion of the allowance assigned to loans and leases, debt securities held to maturity, and other financial assets is presented as a contra asset in Allowance for Credit Losses on the consolidated balance sheets. The portion of the allowance assigned to undrawn loan commitments and standby letters of credit is reported in Other Liabilities on the consolidated balance sheets. The allowance for AFS securities is presented parenthetically with the amortized cost basis of AFS securities on the consolidated balance sheets. The Provision for Credit Losses on the consolidated statements of income represents the change in the Allowance for Credit Losses on the consolidated balance sheets and is the charge to current period earnings. It represents the amount needed to maintain the Allowance for Credit Losses on the consolidated balance sheets at an appropriate level to absorb lifetime expected credit losses related to financial assets in scope. Actual losses may vary from current estimates and the amount of the Provision for Credit Losses may be either greater than or less than actual net charge-offs. Contractual Term. Northern Trust estimates expected credit losses over the contractual term of the financial assets adjusted for prepayments, unless prepayments are not relevant to specific portfolios or sub-portfolios. Extension and renewal options are |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements On January 1, 2020, Northern Trust adopted Accounting Standards Update (ASU) No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13). ASU 2016-13 significantly changed the way impairment of financial instruments is recognized by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of financial instruments. The main provisions of ASU 2016-13 include (1) replacing the “incurred loss” approach under current GAAP with an “expected loss” model for instruments measured at amortized cost, (2) requiring entities to record an allowance for available for sale debt securities rather than reduce the carrying amount of the investments, as is required by the other-than-temporary-impairment model under legacy GAAP, and (3) a simplified accounting model for purchased credit-impaired debt securities and loans. Upon adoption of ASU 2016-13, Northern Trust recorded a $13.7 million increase in the allowance for credit losses with a corresponding cumulative effect adjustment to decrease retained earnings by $10.1 million, net of income taxes, on January 1, 2020. Northern Trust did not restate comparative periods for the effects of applying ASU 2016-13. There was no significant impact to Northern Trust’s consolidated statements of income. Please refer to Note 7 — Allowance for Credit Losses for further information. On January 1, 2020, Northern Trust adopted ASU No. 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (ASU 2017-04). ASU 2017-04 amends the subsequent measurement of goodwill whereby Step 2 from the goodwill impairment test is eliminated. As a result, the goodwill impairment test is performed by comparing the fair value of a reporting unit to its carrying value and an impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. Upon adoption of ASU 2017-04, there was no significant impact to Northern Trust’s consolidated balance sheets or consolidated statements of income. On January 1, 2020, Northern Trust adopted ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” (ASU 2018-13). The primary objective of ASU 2018-13 is to improve the effectiveness of disclosures in the notes to financial statements. Upon adoption of ASU 2018-13, there was no significant impact to Northern Trust’s consolidated balance sheets or consolidated statements of income. On January 1, 2020, Northern Trust adopted ASU No. 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)” (ASU 2018-15). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). Upon adoption of ASU 2018-15, there was no significant impact to Northern Trust’s consolidated balance sheets or consolidated statements of income. On January 1, 2020, Northern Trust adopted ASU No. 2018-17, “Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities” (ASU 2018-17). ASU 2018-17 requires that indirect interests held through related parties in common control arrangements be considered on a proportional basis (rather than as the equivalent of a direct interest in its entirety) for determining whether fees paid to decision makers and service providers are variable interests. Upon adoption of ASU 2018-17, there was no significant impact to Northern Trust’s consolidated balance sheets or consolidated statements of income. On April 1, 2020, Northern Trust adopted ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (ASU 2020-04). The global transition toward alternative reference rates and away from referencing the London Interbank Offered Rate (LIBOR) and other interbank offered rates (Reference Rate Reform) is expected to have a significant impact on the volume of contract modifications, hedge accounting, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of Reference Rate Reform. ASU 2020-04 provides temporary optional expedients and exceptions for applying GAAP to contract modifications, hedging relationships, and other transactions affected by Reference Rate Reform if certain criteria are met. The main provisions of ASU 2020-04 provide the following optional expedients: (1) simplification of the accounting evaluations under current GAAP for contract modifications, including loan, debt, lease and other contracts with potential embedded derivatives, if qualifying criteria are met (2) preservation of hedging relationships without dedesignation upon certain changes to the critical terms of an existing hedging relationship due to Reference Rate Reform and other optional hedge accounting relief provisions and (3) a one-time election to sell or transfer, or both sell and transfer, debt securities classified as held to maturity that reference a rate affected by Reference Rate Reform and are classified as held to maturity before January 1, 2020. The optional expedients in ASU 2020-04 for contract modifications and hedging relationships are applied prospectively, while the one-time election to sell or transfer, or both sell and transfer debt securities classified as held to maturity may be made at any time after March 12, 2020. The optional expedients and exceptions provided by ASU 2020-04 do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022 for which an entity has elected certain optional expedients and which are retained through the end of the hedging relationship. Upon adoption of ASU 2020-04, there was no significant impact on Northern Trust’s consolidated balance sheets or consolidated statements of income. Northern Trust expects to elect the optional expedients provided in ASU 2020-04 and does not expect a significant impact on Northern Trust’s consolidated balance sheets or consolidated statements of income as a result of electing such expedients. On January 7, 2021, Northern Trust retrospectively adopted ASU No. 2021-01, “Reference Rate Reform (Topic 848): Scope” (ASU 2021-01). ASU 2021-01 clarifies the scope of Topic 848 to explicitly include those derivative instruments affected by changes in interest rates used for margining, discounting, or contract price alignment as eligible for certain optional expedients and exceptions in Topic 848. Upon adoption of ASU 2021-01, Northern Trust elected the expedients provided in Topic 848 with no significant impact on Northern Trust’s consolidated balance sheets or consolidated statements of income. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value under GAAP is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date. Fair Value Hierarchy. The following describes the hierarchy of valuation inputs (Levels 1, 2, and 3) used to measure fair value and the primary valuation methodologies used by Northern Trust for financial instruments measured at fair value on a recurring basis. Observable inputs reflect market data obtained from sources independent of the reporting entity; unobservable inputs reflect the entity’s own assumptions about how market participants would value an asset or liability based on the best information available. GAAP requires an entity measuring fair value to maximize the use of observable inputs and minimize the use of unobservable inputs and establishes a fair value hierarchy of inputs. Financial instruments are categorized within the hierarchy based on the lowest level input that is significant to their valuation. Northern Trust’s policy is to recognize transfers into and transfers out of fair value levels as of the end of the reporting period in which the transfer occurred. No transfers into or out of Level 3 occurred during the years ended December 31, 2020, or 2019. Level 1 – Quoted, active market prices for identical assets or liabilities. Northern Trust’s Level 1 assets are comprised of available for sale investments in U.S. Treasury securities. Level 2 – Observable inputs other than Level 1 prices, such as quoted active market prices for similar assets or liabilities, quoted prices for identical or similar assets in inactive markets, and model-derived valuations in which all significant inputs are observable in active markets. Northern Trust’s Level 2 assets include available for sale and trading account debt securities, the fair values of which are determined predominantly by external pricing vendors. Prices received from vendors are compared to other vendor and third-party prices. If a security price obtained from a pricing vendor is determined to exceed pre-determined tolerance levels that are assigned based on an asset type’s characteristics, the exception is researched and, if the price is not able to be validated, an alternate pricing vendor is utilized, consistent with Northern Trust’s pricing source hierarchy. As of December 31, 2020, Northern Trust’s available for sale debt securities portfolio included 2,260 Level 2 securities with an aggregate market value of $39.2 billion. All 2,260 debt securities were valued by external pricing vendors. As of December 31, 2019, Northern Trust’s available for sale debt securities portfolio included 1,704 Level 2 debt securities with an aggregate market value of $34.3 billion. All 1,704 debt securities were valued by external pricing vendors. Trading account debt securities, which totaled $0.5 million and $0.3 million as of December 31, 2020 and 2019, respectively were all valued using external pricing vendors. Northern Trust has established processes and procedures to assess the suitability of valuation methodologies used by external pricing vendors, including reviews of valuation techniques and assumptions used for selected securities. On a daily basis, periodic quality control reviews of prices received from vendors are conducted which include comparisons to prices on similar security types received from multiple pricing vendors and to the previous day’s reported prices for each security. Predetermined tolerance level exceptions are researched and may result in additional validation through available market information or the use of an alternate pricing vendor. Quarterly, Northern Trust reviews documentation from third-party pricing vendors regarding the valuation processes and assumptions used in their valuations and assesses whether the fair value levels assigned by Northern Trust to each security classification are appropriate. Annually, valuation inputs used within third-party pricing vendor valuations are reviewed for propriety on a sample basis through a comparison of inputs used to comparable market data, including security classifications that are less actively traded and security classifications comprising significant portions of the portfolio. Level 2 assets and liabilities also include derivative contracts which are valued internally using widely accepted income-based models that incorporate inputs readily observable in actively quoted markets and reflect the contractual terms of the contracts. Observable inputs include foreign exchange rates and interest rates for foreign exchange contracts; credit spreads, default probabilities, and recovery rates for credit default swap contracts; interest rates for interest rate swap contracts and forward contracts; and interest rates and volatility inputs for interest rate option contracts. Northern Trust evaluates the impact of counterparty credit risk and its own credit risk on the valuation of its derivative instruments. Factors considered include the likelihood of default by Northern Trust and its counterparties, the remaining maturities of the instruments, net exposures after giving effect to master netting arrangements or similar agreements, available collateral, and other credit enhancements in determining the appropriate fair value of derivative instruments. The resulting valuation adjustments have not been considered material. Level 3 – Valuation techniques in which one or more significant inputs are unobservable in the marketplace. Northern Trust’s Level 3 liabilities consist of swaps that Northern Trust entered into with the purchaser of 1.1 million and 1.0 million shares of Visa Inc. Class B common stock (Visa Class B common shares) previously held by Northern Trust and sold in June 2016 and 2015, respectively. Pursuant to the swaps, Northern Trust retains the risks associated with the ultimate conversion of the Visa Class B common shares into shares of Visa Inc. Class A common stock (Visa Class A common shares), such that the counterparty will be compensated for any dilutive adjustments to the conversion ratio and Northern Trust will be compensated for any anti-dilutive adjustments to the ratio. The swaps also require periodic payments from Northern Trust to the counterparty calculated by reference to the market price of Visa Class A common shares and a fixed rate of interest. The fair value of the swaps is determined using a discounted cash flow methodology. The significant unobservable inputs used in the fair value measurement are Northern Trust’s own assumptions about estimated changes in the conversion rate of the Visa Class B common shares into Visa Class A common shares, the date on which such conversion is expected to occur and the estimated growth rate of the Visa Class A common share price. See “Visa Class B Common Shares” under Note 26, “Commitments and Contingent Liabilities,” for further information. Northern Trust believes its valuation methods for its assets and liabilities carried at fair value are appropriate; however, the use of different methodologies or assumptions, particularly as applied to Level 3 assets and liabilities, could have a material effect on the computation of their estimated fair values. Management of various businesses and departments of Northern Trust (including Corporate Market Risk, Credit Risk Management, Corporate Finance, C&IS and Wealth Management) reviews valuation methods and models for Level 3 assets and liabilities. Fair value measurements are performed upon acquisitions of an asset or liability. Management of the appropriate business or department reviews assumed inputs, especially when unobservable in the marketplace, in order to substantiate their use in each fair value measurement. When appropriate, management reviews forecasts used in the valuation process in light of other relevant financial projections to understand any variances between current and previous fair value measurements. In certain circumstances, third party information is used to support the fair value measurements. If certain third party information seems inconsistent with consensus views, a review of the information is performed by management of the respective business or department to determine the appropriate fair value of the asset or liability. The following table presents the fair values of Northern Trust’s Level 3 liabilities as of December 31, 2020 and 2019, as well as the valuation techniques, significant unobservable inputs, and quantitative information used to develop significant unobservable inputs for such liabilities as of such dates. TABLE 55: LEVEL 3 SIGNIFICANT UNOBSERVABLE INPUTS 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 (1) Weighted average of expected duration based on scenario probability. 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 (1) Weighted average of expected duration based on scenario probability. The following presents assets and liabilities measured at fair value on a recurring basis as of December 31, 2020 and 2019, segregated by fair value hierarchy level. TABLE 56: RECURRING BASIS HIERARCHY LEVELING DECEMBER 31, 2020 (In Millions) LEVEL 1 LEVEL 2 LEVEL 3 NETTING ASSETS/ 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 Note: Northern Trust has elected to net derivative assets and liabilities when legally enforceable master netting arrangements or similar agreements exist between Northern Trust and the counterparty. As of December 31, 2020, derivative assets and liabilities shown above also include reductions of $1,867.8 million and $1,177.2 million, respectively, as a result of cash collateral received from and deposited with derivative counterparties. (1) This line consists of swaps related to the sale of certain Visa Class B common shares. DECEMBER 31, 2019 (In Millions) LEVEL 1 LEVEL 2 LEVEL 3 NETTING ASSETS/ 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 Note: Northern Trust has elected to net derivative assets and liabilities when legally enforceable master netting arrangements or similar agreements exist between Northern Trust and the counterparty. As of December 31, 2019, derivative assets and liabilities shown above also include reductions of $1,136.8 million and $417.2 million, respectively, as a result of cash collateral received from and deposited with derivative counterparties. (1) This line consists of swaps related to the sale of certain Visa Class B common shares. The following table presents the changes in Level 3 liabilities for the years ended December 31, 2020 and 2019. TABLE 57: CHANGES IN LEVEL 3 LIABILITIES LEVEL 3 LIABILITIES SWAPS RELATED TO SALE OF CERTAIN VISA CLASS B (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 (1) Gains (losses) are recorded in Other Operating Income on the consolidated statements of income. Carrying values of assets and liabilities that are not measured at fair value on a recurring basis may be adjusted to fair value in periods subsequent to their initial recognition, for example, to record an impairment of an asset. GAAP requires entities to separately disclose these subsequent fair value measurements and to classify them under the fair value hierarchy. Assets measured at fair value on a nonrecurring basis at December 31, 2020 and 2019, all of which were categorized as Level 3 under the fair value hierarchy, were comprised of nonaccrual loans whose values were based on real estate and other available collateral, and of OREO properties. Fair values of real estate loan collateral were estimated using a market approach typically supported by third-party valuations and property-specific fees and taxes. The fair values of real estate loan collateral were subject to adjustments to reflect management’s judgment as to realizable value and consisted of discount factors ranging from 15.0% to 20.0% with a weighted average based on fair values of 16.8% and 15.3% as of December 31, 2020 and December 31, 2019, respectively. Other loan collateral, which typically consists of accounts receivable, inventory and equipment, is valued using a market approach adjusted for asset-specific characteristics and in limited instances third-party valuations are used. OREO assets are carried at the lower of cost or fair value less estimated costs to sell, with fair value typically based on third-party appraisals. Collateral-based nonaccrual loans that have been adjusted to fair value totaled $24.6 million and $8.0 million at December 31, 2020 and 2019, respectively. The following table presents the fair values of Northern Trust’s Level 3 assets that were measured at fair value on a nonrecurring basis as of December 31, 2020 and 2019, as well as the valuation technique, significant unobservable inputs, and quantitative information used to develop the significant unobservable inputs for such assets as of such dates. TABLE 58: LEVEL 3 NONRECURRING BASIS SIGNIFICANT UNOBSERVABLE INPUTS DECEMBER 31, 2020 FINANCIAL INSTRUMENT FAIR VALUE (1) VALUATION 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% (1) Includes real estate collateral-based loans and other collateral-based loans. DECEMBER 31, 2019 FINANCIAL INSTRUMENT FAIR VALUE (1) VALUATION 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% (1) Includes real estate collateral-based loans and other collateral-based loans. The following tables summarize the fair values of all financial instruments. TABLE 59: FAIR VALUE OF FINANCIAL INSTRUMENTS DECEMBER 31, 2020 FAIR VALUE (In Millions) BOOK VALUE TOTAL 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 — (1) Refer to the table located on page 105 for the disaggregation of available for sale debt securities. (2) This line consists of swaps related to the sale of certain Visa Class B common shares. DECEMBER 31, 2019 FAIR VALUE (In Millions) BOOK VALUE TOTAL 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 — (1) Refer to the table located on page 106 for the disaggregation of available for sale debt securities. (3) This line consists of swaps related to the sale of certain Visa Class B common shares. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities Debt Securities Available for Sale. The following tables provide the amortized cost, fair values, and remaining maturities of debt securities available for sale. TABLE 60: RECONCILIATION OF AMORTIZED COST TO FAIR VALUE OF DEBT SECURITIES AVAILABLE FOR SALE DECEMBER 31, 2020 (In Millions) AMORTIZED GROSS GROSS FAIR 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 GROSS GROSS FAIR 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 TABLE 61: REMAINING MATURITY OF DEBT SECURITIES AVAILABLE FOR SALE 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 Note: Mortgage-backed and asset-backed securities are included in the above table taking into account anticipated future prepayments. Debt Securities Available for Sale with Unrealized Losses. The following table provides information regarding debt securities available for sale with no credit losses reported that had been in a continuous unrealized loss position for less than twelve months and for twelve months or longer as of December 31, 2020 and 2019. TABLE 62: DEBT SECURITIES AVAILABLE FOR SALE IN UNREALIZED LOSS POSITION WITH NO CREDIT LOSSES REPORTED AS OF DECEMBER 31, 2020 LESS THAN 12 MONTHS 12 MONTHS OR LONGER TOTAL (In Millions) FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED 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 UNREALIZED FAIR UNREALIZED FAIR UNREALIZED 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 As of December 31, 2020, 412 debt securities available for sale with a combined fair value of $6.4 billion were in an unrealized loss position, with their unrealized losses totaling $31.3 million. Unrealized losses related to debt securities available for sale of $26.9 million and $2.8 million related to government sponsored agency and other asset-backed securities, respectively, are primarily attributable to changes in market interest rates and credit spreads since their purchase. As of December 31, 2020, 16% of the corporate debt securities available for sale portfolio were backed by guarantees provided by U.S. and non-U.S. governmental entities. The remaining unrealized losses on Northern Trust’s debt securities available for sale portfolio as of December 31, 2020 are attributable to changes in overall market interest rates or credit spreads. As of December 31, 2020, Northern Trust did not intend to sell any debt securities available for sale in an unrealized loss position and it was more likely than not that Northern Trust would not be required to sell any such investment before the recovery of its amortized cost basis, which may be maturity. There was no provision for corporate debt securities available for sale for the year ended December 31, 2020 and no allowance for credit losses for corporate debt securities available for sale as of December 31, 2020. Debt Securities Held to Maturity. The following tables provide the amortized cost, fair values and remaining maturities of debt securities held to maturity. TABLE 63: RECONCILIATION OF AMORTIZED COST TO FAIR VALUES OF DEBT SECURITIES HELD TO MATURITY DECEMBER 31, 2020 (In Millions) AMORTIZED GROSS GROSS FAIR 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 GROSS GROSS FAIR 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 As of December 31, 2020, the $17.8 billion debt securities held to maturity portfolio had an unrealized loss of $76.5 million related to other residential mortgage-backed securities, which are primarily attributable to changes in overall market interest rates and credit spreads since their purchase. TABLE 64: REMAINING MATURITY OF DEBT SECURITIES HELD TO MATURITY 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 Note: Mortgage-backed and asset-backed securities are included in the above table taking into account anticipated future prepayments. Debt securities held to maturity consist of securities that management intends to, and Northern Trust has the ability to, hold until maturity. During the year ended December 31, 2020, $301.5 million securities reflected in U.S. government were transferred from available for sale to held to maturity, all of which were transferred in the second quarter of 2020. During the year ended December 31, 2019, $160.8 million securities reflected in covered bonds were transferred from available for sale to held to maturity. Credit Quality Indicators. The following table provides the amortized cost of debt securities held to maturity by credit rating. TABLE 65: AMORTIZED COST OF DEBT SECURITIES HELD TO MATURITY BY CREDIT RATING 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 % Credit quality indicators are metrics that provide information regarding the relative credit risk of debt securities. Northern Trust maintains a high quality debt securities portfolio, with 93% of the held to maturity portfolio at December 31, 2020 comprised of securities rated A or higher. The remaining held to maturity debt securities portfolio was comprised of 7% not rated by Moody’s Investors Service, Standard and Poor’s, or Fitch Ratings. Securities not explicitly rated were grouped where possible under the credit rating of the issuer of the security. Investment Security Gains and Losses. Proceeds of $879.9 million, $1.2 billion, and $307.3 million in 2020, 2019, and 2018, respectively, from the sale of debt securities resulted in the following gains and losses shown in the following table. TABLE 66: INVESTMENT SECURITY GAINS AND LOSSES 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) |
Securities Purchased Under Agre
Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase | Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase Northern Trust participates in the repurchase agreement market as a relatively low cost alternative for short-term funding. Securities purchased under agreements to resell and securities sold under agreements to repurchase are accounted for as collateralized financings and recorded at the amounts at which the securities were acquired or sold plus accrued interest. To minimize any potential credit risk associated with these transactions, the fair value of the securities purchased or sold is monitored, limits are set on exposure with counterparties, and the financial condition of counterparties is regularly assessed. It is Northern Trust’s policy to take possession, either directly or via third-party custodians, of securities purchased under agreements to resell. Securities sold under agreements to repurchase are held by the counterparty until the repurchase. The following tables summarize information related to Securities Purchased under Agreements to Resell and Securities Sold under Agreements to Repurchase. TABLE 67: SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL ($ 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 TABLE 68: SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE ($ 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 TABLE 69: REPURCHASE AGREEMENTS ACCOUNTED FOR AS SECURED BORROWINGS 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 — — |
Loans and Leases
Loans and Leases | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Loans and Leases | Loans and Leases Amounts outstanding for Loans and Leases, by segment and class, are shown in the following table. During the first quarter of 2020, the Corporation implemented a change in the classification of certain loans and leases to specific segments to enhance the consistency of its reporting across various regulatory regimes. As a result, the loan and lease balances as of December 31, 2019 below have been adjusted to conform to the presentation for periods ended after such date. The adjustments generally reflect reclassification of loans from the commercial real estate class to commercial and institutional, residential real estate, and private client classes. There was no impact on total Loans and Leases previously reported. TABLE 70: LOANS AND LEASES 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 Residential real estate loans consist of traditional first lien mortgages and equity credit lines that generally require a loan-to-collateral value ratio of no more than 65% to 80% at inception. Northern Trust’s equity credit line products generally have draw periods of up to 10 years and a balloon payment of any outstanding balance is due at maturity. Payments are interest-only with variable interest rates. Northern Trust does not offer equity credit lines that include an option to convert the outstanding balance to an amortizing payment loan. As of December 31, 2020 and 2019, equity credit lines totaled $304.4 million and $448.5 million, respectively, and equity credit lines for which first liens were held by Northern Trust represented 97% and 97%, respectively, of the total equity credit lines as of those dates. Included within the non-U.S., commercial-other, and personal-other classes are short duration advances, primarily related to the processing of custodied client investments, totaling $1.1 billion at each of December 31, 2020 and 2019. Demand deposit overdrafts reclassified as loan balances totaled $26.4 million and $90.4 million at December 31, 2020 and 2019, respectively. As of December 31, 2020, there were no loans or leases classified as held for sale. As of December 31, 2019, there were no loans and $53.6 million of leases, respectively, classified as held for sale related to the decision to sell substantially all of the lease portfolio. The components of the net investment in direct finance and leveraged leases are as follows: TABLE 71: DIRECT FINANCE AND LEVERAGED LEASES 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 Paycheck Protection Program. In response to the COVID-19 pandemic, Northern Trust became a lender under the Paycheck Protection Program, as amended (PPP), which was created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and is administered by the U.S. Small Business Administration (SBA). Loans issued under the PPP are funded by Northern Trust directly to participating borrowers. The PPP loans are guaranteed by the SBA and borrowers are eligible to apply for PPP loan forgiveness for up to the full principal amount and accrued interest of the PPP loan. To the extent a borrower uses PPP loan proceeds to cover eligible costs and has met all other SBA loan forgiveness requirements, the SBA will determine loan forgiveness under the CARES Act and will pay to Northern Trust the eligible PPP loan forgiven amount, which will be credited to the borrower’s loan to repay or pay down the PPP loan. The SBA forgiveness portal opened on August 10, 2020 and Northern Trust’s vendor portal opened on September 11, 2020 to begin processing the PPP loan forgiveness applications. When Northern Trust submits forgiveness applications to the SBA, the SBA will have at least 90 days to respond as to the approval or denial of such application. 41 PPP loan forgiveness applications went through the forgiveness process as of December 31, 2020, and 36 of those loans, totaling $6.7 million, were fully forgiven by the SBA as of such date. As of December 31, 2020, Northern Trust had 1,087 outstanding loans totaling $207.1 million under the PPP in its commercial and institutional portfolio with an average loan balance of $0.2 million. For its origination efforts, Northern Trust received approximately $2.6 million in SBA fees, net of service charges, as of December 31, 2020. Northern Trust accounts for loans originated under the PPP as loan receivables in accordance with Accounting Standards Codification (ASC) 310 and recognizes such loans at the principal amount less the net amount of loan origination fees. PPP loans are reported in Total Loans and Leases on the consolidated balance sheets. The SBA provides a 100% guarantee on PPP loans covering principal and interest. Northern Trust considers the risk mitigating effects of these guarantees, and accounts for them as a credit enhancement embedded in the contract. As a result, no allowance for credit losses is measured for Northern Trust’s exposure under the PPP. Credit Quality Indicators. Credit quality indicators are statistics, measurements or other metrics that provide information regarding the relative credit risk of loans and leases. Northern Trust utilizes a variety of credit quality indicators to assess the credit risk of loans and leases at the segment, class, and individual credit exposure levels. As part of its credit process, Northern Trust utilizes an internal borrower risk rating system to support identification, approval, and monitoring of credit risk. Borrower risk ratings are used in credit underwriting and management reporting. Risk ratings are used for ranking the credit risk of borrowers and the probability of their default. Each borrower is rated using one of a number of ratings models, which consider both quantitative and qualitative factors. The ratings models vary among classes of loans and leases in order to capture the unique risk characteristics inherent within each particular type of credit exposure. Provided below are the more significant performance indicator attributes considered within Northern Trust’s borrower rating models, by loan and lease class. • Commercial and Institutional: leverage, profit margin, liquidity, asset size and capital levels; • Commercial Real Estate: debt service coverage, loan-to-value ratio, leasing status and guarantor support; • Lease Financing and Commercial-Other: leverage, profit margin, liquidity, asset size and capital levels; • Non-U.S.: leverage, profit margin, liquidity, return on assets and capital levels; • Residential Real Estate: payment history, credit bureau scores and loan-to-value ratio; • Private Client: cash-flow-to-debt and net worth ratios, leverage and liquidity; and • Personal-Other: cash-flow-to-debt and net worth ratios. While the criteria vary by model, the objective is for the borrower ratings to be consistent in both the measurement and ranking of risk. Each model is calibrated to a master rating scale to support this consistency. Ratings for borrowers not in default range from “1” for the strongest credits to “7” for the weakest non-defaulted credits. Ratings of “8” or “9” are used for defaulted borrowers. Borrower risk ratings are monitored and are revised when events or circumstances indicate a change is required. Risk ratings are generally validated at least annually. Loan and lease segment and class balances as of December 31, 2020 are provided in the following table, segregated by borrower ratings into “1 to 3,” “4 to 5” and “6 to 9” (watch list and nonaccrual status) categories by year of origination at amortized cost basis. Loans that are held for investment are reported at the principal amount outstanding, net of unearned income. TABLE 72: CREDIT QUALITY INDICATOR AT AMORTIZED COST BASIS BY ORIGINATION YEAR 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 Loans and leases in the “1 to 3” category are expected to exhibit minimal to modest probabilities of default and are characterized by borrowers having the strongest financial qualities, including above average financial flexibility, cash flows and capital levels. Borrowers assigned these ratings are anticipated to experience very little to moderate financial pressure in adverse down-cycle scenarios. As a result of these characteristics, borrowers within this category exhibit a minimal to modest likelihood of loss. Loans and leases in the “4 to 5” category are expected to exhibit moderate to acceptable probabilities of default and are characterized by borrowers with less financial flexibility than those in the “1 to 3” category. Cash flows and capital levels are generally sufficient to allow for borrowers to meet current requirements, but have fewer financial resources to manage through economic downturns. As a result of these characteristics, borrowers within this category exhibit a moderate likelihood of loss. Loans and leases in the watch list category have elevated credit risk profiles that are monitored through internal watch lists, and consist of credits with borrower ratings of “6 to 9.” These credits, which include all nonaccrual credits, are expected to exhibit minimally acceptable probabilities of default, elevated risk of default, or are currently in default. Borrowers associated with these risk profiles that are not currently in default have limited financial flexibility. Cash flows and capital levels range from acceptable to potentially insufficient to meet current requirements, particularly in adverse down cycle scenarios. As a result of these characteristics, borrowers in this category exhibit an elevated to probable likelihood of loss. For credit quality indicator information that was required under the former provisions of ASC Topic 310, please refer to Note 6, “Loans and Leases” included under Item 8, “Financial Statements and Supplementary Data” in the Annual Report on Form 10-K for the year ended December 31, 2019. Past Due Status. Past due status is based on the length of time from the contractual due date a principal or interest payment has been past due. For disclosure purposes, loans and leases that are 29 days past due or less are reported as current. The following table provides balances and delinquency status of accrual and nonaccrual loans and leases by segment and class, as well as the other real estate owned and nonaccrual asset balances, as of December 31, 2020 and 2019. TABLE 73: DELINQUENCY STATUS ACCRUAL NONACCRUAL WITH NO ALLOWANCE (In Millions) CURRENT 30 – 59 DAYS 60 – 89 DAYS 90 DAYS TOTAL ACCRUAL NONACCRUAL TOTAL LOANS December 31, 2020 Commercial Commercial and Institutional $ 9,877.0 $ 153.7 $ 1.2 $ — $ 10,031.9 $ 26.4 $ 10,058.3 $ 9.1 Commercial Real Estate 3,516.2 2.0 — — 3,518.2 40.2 3,558.4 32.3 Non-U.S. 1,345.7 — — — 1,345.7 — 1,345.7 — Lease Financing, net 11.4 — — — 11.4 — 11.4 — Other 288.2 — — — 288.2 — 288.2 — Total Commercial 15,038.5 155.7 1.2 — 15,195.4 66.6 15,262.0 41.4 Personal Private Client 11,765.4 29.1 9.9 7.8 11,812.2 2.9 11,815.1 2.9 Residential Real Estate 5,946.0 23.5 2.9 1.1 5,973.5 62.2 6,035.7 53.8 Non-U.S. 596.7 1.2 — — 597.9 — 597.9 — Other 49.0 — — — 49.0 — 49.0 — Total Personal 18,357.1 53.8 12.8 8.9 18,432.6 65.1 18,497.7 56.7 Total Loans and Leases $ 33,395.6 $ 209.5 $ 14.0 $ 8.9 $ 33,628.0 $ 131.7 $ 33,759.7 $ 98.1 Other Real Estate Owned $ 0.7 Total Nonaccrual Assets $ 132.4 ACCRUAL NONACCRUAL WITH NO ALLOWANCE (In Millions) CURRENT 30 – 59 DAYS 60 – 89 DAYS 90 DAYS TOTAL ACCRUAL NONACCRUAL TOTAL LOANS 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 Interest income that would have been recorded for nonaccrual loans and leases in accordance with their original terms was $4.6 million in 2020, $7.3 million in 2019, and $8.0 million in 2018. Collateral Dependent Financial Assets. A financial asset is collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. Most of Northern Trust’s collateral dependent credit exposure relates to its residential real estate portfolio for which the collateral is usually the underlying real estate property. For collateral dependent financial assets, it is Northern Trust’s policy to reserve or charge-off the difference between the amortized cost basis of the loan and the value of the collateral. The collateral dependent financial asset balance as of December 31, 2020 was immaterial to Northern Trust’s financial statements. Nonaccrual Loans and Troubled Debt Restructurings (TDRs). A loan that has been modified as a concession by Northern Trust or a bankruptcy court resulting from the debtor’s financial difficulties is referred to as a troubled debt restructuring (TDR). Included within nonaccrual loans were $38.9 million and $54.9 million of nonaccrual TDRs and $29.3 million and $27.7 million of accrual TDRs as of December 31, 2020 and 2019, respectively. There were $10.4 million and $8.2 million of aggregate undrawn loan commitments and standby letters of credit at December 31, 2020 and 2019, respectively, issued to borrowers with TDR modifications of loans. The following table provides, by segment and class, the number of TDR modifications of loans and leases during the years ended December 31, 2020, and 2019, and the recorded investments and unpaid principal balances as of December 31, 2020 and 2019. TABLE 74: TROUBLED DEBT RESTRUCTURINGS ($ In Millions) NUMBER OF RECORDED UNPAID 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 Note: Period-end balances reflect all paydowns and charge-offs during the year. ($ In Millions) NUMBER OF RECORDED UNPAID 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 Note: Period-end balances reflect all paydowns and charge-offs during the year. TDR modifications involve extensions of term, deferrals of principal, interest rate concessions, and other modifications. Other modifications typically reflect other nonstandard terms which Northern Trust would not offer in non-troubled situations. During the year ended December 31, 2020, the TDR modifications of loans within residential real estate were primarily extensions of term, other modifications, deferrals of principal, and interest rate concessions. During the year ended December 31, 2020, TDR modifications of loans within commercial and institutional were other modifications and extensions of term. During the year ended December 31, 2019, the TDR modifications of loans within residential real estate were primarily other modifications, extensions of term, deferrals of principal, and interest rate concessions. During the year ended December 31, 2019, TDR modifications of loans within commercial and institutional and commercial real estate were other modifications, extensions of term, and deferrals of principal. There were zero loans or leases TDR modifications during the previous twelve-month period which subsequently had a payment default during the year ended December 31, 2020. There were five loans or leases TDR modifications during the previous twelve-month period which subsequently had a payment default during the year ended December 31, 2019. The total recorded investment for these loans was approximately $5.8 million and the unpaid principal balance for these loans was approximately $6.1 million. Northern Trust may obtain physical possession of real estate via foreclosure on an in-substance repossession. As of December 31, 2020 and 2019, Northern Trust held foreclosed real estate properties with a carrying value of $0.7 million and $3.2 million, respectively, as a result of obtaining physical possession. In addition, as of December 31, 2020 and 2019, Northern Trust had loans with a carrying value of $7.9 million and $18.1 million, respectively, for which formal foreclosure proceedings were in process. TDR Relief — COVID-19. Due to the economic environment arising from the COVID-19 pandemic, there have been two forms of relief provided for classifying loans as TDRs: the Interagency Guidance (as defined below) and the CARES Act. Various banking regulators, including the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency, and the Consumer Financial Protection Bureau, have issued guidance in the April 7, 2020 Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (revised) on loan modification treatment (Interagency Guidance) pursuant to which financial institutions can apply ASC 310-40 Receivables – Troubled Debt Restructurings by Creditors. In accordance with the Interagency Guidance, a loan modification is not considered a TDR if the modification is related to COVID-19; the borrower had been current (not more than 29 days past due) when the modification program was implemented; and the modification includes payment deferrals for not more than 6 months. Under section 4013 of the CARES Act, relief provided to lenders exempting certain loan modifications which would otherwise be classified as TDRs from such classification applies for loans that were not more than 30 days past due as of December 31, 2019. The TDR relief under the CARES Act applies to COVID-19-related modifications that were made from March 1, 2020 until the earlier of (a) January 1, 2022 (this date was updated from December 31, 2020, after the Consolidated Appropriations Act, 2021 was enacted on December 27, 2020) or (b) 60 days from the date the COVID-19 national emergency officially ends. Financial institutions may account for eligible loan modifications under the Interagency Guidance and/or the CARES Act. Northern Trust has elected to apply both the CARES Act and the Interagency Guidance, as applicable, in providing borrowers with loan modification relief in response to the COVID-19 pandemic. All other types of modifications which do not meet the CARES Act or Interagency Guidance requirements continue to be governed by existing regulations and accounting policies. The following tables provide, by segment and class, the number of total COVID-19-related loan modifications including the loan volume and deferred principal and interest balances as of December 31, 2020, for which Northern Trust applied an exemption from TDR classification that are in active deferral (loans currently in the deferral period) or completed deferral (loans that returned to their regular payment schedule). TABLE 75: COVID-19 LOAN MODIFICATIONS NOT CONSIDERED TDRS IN ACTIVE DEFERRAL STATUS 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 TABLE 76: COVID-19 LOAN MODIFICATIONS NOT CONSIDERED TDRS THAT HAVE COMPLETED DEFERRAL 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 Not included in the table above are 57 loans with a previous $63.0 million loan balance that had been granted payment deferrals but have since paid off. |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses During the first quarter of 2020, the Corporation implemented a change in the classification of certain loans and leases to specific segments to enhance the consistency of its reporting across various regulatory regimes. The allowance for credit losses as of and prior to December 31, 2019 remains unadjusted, as the impact of the reclassification on the allowance was immaterial. The Corporation adopted Accounting Standards Update (ASU) No. 2016-13, “Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments” (ASU 2016-13) on January 1, 2020, which significantly changed the way impairment of financial instruments is recognized by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of financial instruments. An opening balance sheet adjustment related to the adoption of ASU 2016-13 resulted in an increase to the allowance for credit losses of $13.7 million, with a corresponding adjustment to decrease retained earnings by $10.1 million, net of tax. Allowance and Provision for Credit Losses. The allowance for credit losses — which represents management’s best estimate of lifetime expected credit losses related to various portfolios subject to credit risk, off-balance sheet credit exposures, and specific borrower relationships — is determined by management through a disciplined credit review process. Northern Trust measures expected credit losses of financial assets with similar risk characteristics on a collective basis. A financial asset is measured individually if it does not share similar risk characteristics with other financial assets and the related allowance is determined through an individual evaluation. Management’s estimates utilized in establishing an appropriate level of allowance for credit losses are not dependent on any single assumption. In determining an appropriate allowance level, management evaluates numerous variables, many of which are interrelated or dependent on other assumptions and estimates, and takes into consideration past events, current conditions and reasonable and supportable forecasts. Northern Trust employs multiple scenarios over a reasonable and supportable period of currently two years to project future conditions. For periods beyond the reasonable and supportable period, Northern Trust reverts to its own historical loss experiences on a straight-line basis over four quarters. The primary forecast, consistent with Northern Trust’s economic outlook publications, assumes continued economic recovery from the challenges of COVID-19, with steady growth and a falling unemployment rate over the forecast horizon. An alternative scenario is also considered, which contemplates a resurgence of the virus, causing a double-dip recession. The results of the credit reserve estimation methodology are reviewed quarterly by Northern Trust’s Credit Loss Reserve Committee, which receives input from Credit Risk Management, Treasury, Corporate Finance, the Economic Research group, and each of Northern Trust’s business units. The Credit Loss Reserve Committee determines the probability weights applied to each forecast approved by Northern Trust’s Macroeconomic Scenario Development Committee, and also reviews and approves qualitative adjustments to the collective allowance in line with Northern Trust’s qualitative adjustment framework. The following table provides information regarding changes in the total allowance for credit losses. TABLE 77: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES 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 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 The current-year provision primarily reflected an increase in the reserve evaluated on a collective basis. The increase in the collective basis reserve was primarily driven by current and projected economic conditions and downgrades in the portfolio, both resulting from the ongoing COVID-19 pandemic and related market and economic impacts, with increases primarily in the commercial and institutional and commercial real estate portfolios . For credit exposure and the associated allowance related to fee receivables, please refer to Note 18, “Revenue from Contracts with Clients.” For information related to the allowance for debt securities available for sale, please refer to Note 4, “Securities.” For all other financial assets recognized at amortized cost, which include Cash and Due from Banks, Other Central Bank Deposits, Interest Bearing Deposits with Banks, Federal Funds Sold, and Other Assets, please refer to the Allowance for Other Financial Assets section within this footnote. Allowance for the Loan and Lease Portfolio. The following table provides information regarding changes in the total allowance for credit losses, including undrawn loan commitments and standby letters of credit, by segment. TABLE 78: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES RELATED TO LOANS AND LEASES 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 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 The increase to the allowance for both loans and leases and undrawn loan commitments and standby letters of credit for 2020 was primarily due to an increase in the reserve evaluated on a collective basis driven by current and projected economic conditions and downgrades in the portfolio, both resulting from the ongoing COVID-19 pandemic and related market and economic impacts. The largest increases were in the commercial and institutional and commercial real estate portfolios for the allowance for loans and leases and the commercial and institutional portfolio for the allowance for undrawn loan commitments and standby letters of credit. The following table provides information regarding the recorded investments in loans and leases and the allowance for credit losses for loans and leases and undrawn loan commitments and standby letters of credit by segment as of December 31, 2020 and 2019. TABLE 79: RECORDED INVESTMENTS IN LOANS AND LEASES 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 Allowance for Debt Securities Held to Maturity Securities Portfolio. The following table provides information regarding changes in the total allowance for credit losses for debt securities held to maturity during 2020. TABLE 80: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES RELATED TO DEBT SECURITIES HELD TO MATURITY 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 Prior to the adoption of ASU 2016-13, Northern Trust recognized $4.4 million of cumulative Other-Than-Temporary-Impairment (OTTI) losses on the debt securities classified as other as of December 31, 2019. For debt securities with previous OTTI losses recorded, Northern Trust applied ASU 2016-13 on a prospective basis whereby the amortized cost basis of the impaired security remains unchanged immediately before and after adopting ASU 2016-13. The allowance recorded at January 1, 2020 for debt securities held to maturity equals the difference between the calculated expected loss and the amount of OTTI loss previously recorded and represents the cumulative effect adjustment required upon the adoption of ASU 2016-13. The allowance attributable to debt securities held to maturity for the twelve months ended December 31, 2020 was primarily due to the reserve evaluated on a collective basis driven by current and projected economic conditions resulting from the ongoing COVID-19 pandemic and related market and economic impacts. Allowance for Other Financial Assets. The allowance for Other Financial Assets consists of the allowance for Cash and Due from Banks, Other Central Bank Deposits, Interest Bearing Deposits with Banks, Federal Funds Sold, and Other Assets. Northern Trust’s portfolio is composed mostly of institutions within the “1 to 3” internal borrower rating category and expected to exhibit minimal to modest likelihood of loss. The allowance for credit losses related to Other Financial Assets was $0.8 million as of December 31, 2020. Accrued Interest. Northern Trust elected not to measure an allowance for credit losses for accrued interest receivables related to its loan and securities portfolios as its policy is to write-off uncollectible accrued interest receivable balances in a timely manner. The following table provides the amount of accrued interest excluded from the amortized cost basis of the following portfolios. TABLE 81: ACCRUED INTEREST (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 The amount of accrued interest reversed through interest income for loans and leases was immaterial and there was no accrued interest reversed through interest income related to any other financial assets during 2020. |
Concentrations of Credit Risk
Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Credit Risk | Concentrations of Credit RiskConcentrations of credit risk exist if a number of borrowers or other counterparties are engaged in similar activities and have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions. The fact that a credit exposure falls into one of these groups does not necessarily indicate that the credit has a higher than normal degree of credit risk. These groups are: banks and bank holding companies, residential real estate, and commercial real estate. Banks and Bank Holding Companies. At December 31, 2020, on-balance sheet credit risk to banks and bank holding companies, both U.S. and non-U.S., consisted primarily of Interest-Bearing Deposits with Banks of $4.4 billion, demand balances maintained at correspondent banks of $4.3 billion, and Securities Purchased under Agreements to Resell of $1.6 billion. At December 31, 2019, on-balance sheet credit risk to banks and bank holding companies, both U.S. and non-U.S., consisted primarily of Interest-Bearing Deposits with Banks of $4.9 billion, demand balances maintained at correspondent banks of $4.3 billion, Securities Purchased under Agreements to Resell of $707.8 million, and Federal Funds Sold of $5.0 million. Credit risk associated with U.S. and non-U.S. banks and bank holding companies deemed to be counterparties by Credit Risk Management is managed by the Capital Markets Credit Committee. Credit limits are established through a review process that includes an internally-prepared financial analysis, use of an internal risk rating system and consideration of external ratings from rating agencies. Northern Trust places deposits with banks that have strong internal and external credit ratings and the average life to maturity of deposits with banks is maintained on a short-term basis in order to respond quickly to changing credit conditions. Residential Real Estate. Residential real estate loans totaled $6.0 billion at December 31, 2020 and 2019, representing 19% and 20%, respectively, of total U.S. loans and leases. Residential real estate loans consist of traditional first lien mortgages and equity credit lines, which generally require a loan-to-collateral value ratio of no more than 65% to 80% at inception. Revaluations of supporting collateral are obtained upon refinancing or default or when otherwise considered warranted. Collateral revaluations for mortgages are performed by independent third parties. Of the $6.0 billion residential real estate loans at December 31, 2020, $1.6 billion were in Florida, $1.3 billion were in California, and $894.9 million were in the greater Chicago area, with the remainder distributed throughout the other geographic regions within the U.S. served by Northern Trust. Legally binding undrawn commitments to extend residential real estate credit, which are primarily equity credit lines, totaled $676.1 million and $714.2 million at December 31, 2020 and 2019, respectively. Commercial Real Estate. In managing its credit exposure, management has defined a commercial real estate loan as one where: (1) the borrower’s principal business activity is the acquisition or the development of real estate for commercial purposes; (2) the principal collateral is real estate held for commercial purposes, and loan repayment is expected to flow from the operation of the property; or (3) the loan repayment is expected to flow from the sale or refinance of real estate as a normal and ongoing part of the business. Unsecured lines of credit to firms or individuals engaged in commercial real estate endeavors are included without regard to the use of loan proceeds. The commercial real estate portfolio consists of commercial mortgages and construction, acquisition and development loans extended primarily to experienced investors well known to Northern Trust. Underwriting standards generally reflect conservative loan-to-value ratios and debt service coverage requirements. Recourse to borrowers through guarantees is also commonly required. Commercial mortgage financing is provided for the acquisition or refinancing of income-producing properties. Cash flows from the properties generally are sufficient to amortize the loan. These loans are primarily located in the California, Illinois, Florida, Texas, and New York markets. Construction, acquisition and development loans provide financing for commercial real estate prior to rental income stabilization. The intent is generally that the borrower will sell the project or refinance the loan through a commercial mortgage with Northern Trust or another financial institution upon completion. The table below provides additional detail regarding commercial real estate loan types. During the first quarter of 2020, the Corporation implemented a change in the classification of certain loans and leases to specific segments to enhance the consistency of its reporting across various regulatory regimes. As a result, commercial real estate balances as of December 31, 2019 below have been adjusted to conform to the presentation for periods ended after such date. The adjustments generally reflect reclassification of loans from the commercial real estate class to commercial and institutional, residential real estate, and private client classes. There was no impact on total Loans and Leases previously reported. TABLE 82: COMMERCIAL REAL ESTATE LOANS 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 |
Buildings and Equipment
Buildings and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Buildings and Equipment | Buildings and Equipment A summary of Buildings and Equipment is presented in the following table. TABLE 83: BUILDINGS AND EQUIPMENT DECEMBER 31, 2020 (In Millions) ORIGINAL ACCUMULATED NET BOOK 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 ACCUMULATED NET BOOK 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 The charge for depreciation amounted to $116.5 million in 2020, $103.2 million in 2019, and $108.6 million in 2018 on the consolidated statements of income. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lease Commitments | Lease Commitments At December 31, 2020, Northern Trust was obligated under a number of non-cancelable operating leases, primarily for real estate. Certain leases contain rent escalation clauses based on market indices, renewal option clauses calling for increased rentals, and rental payments based on usage. There are no restrictions imposed by any lease agreement regarding the payment of dividends, debt financing or Northern Trust entering into further lease agreements. The components of lease costs for the years ended December 31, 2020 and 2019 were as follows. TABLE 84: LEASE COST COMPONENTS (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 The following table presents a maturity analysis of lease liabilities as of December 31, 2020. TABLE 85: MATURITY OF LEASE LIABILITIES (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 As of December 31, 2020, Northern Trust had commitments for operating leases in addition to the above that have not yet commenced for approximately $32.3 million. These operating leases are for the use of office space with lease terms between 10 and 15 years and are expected to commence during the first half of 2021. Northern Trust uses its incremental borrowing rate to determine the present value of lease payments for operating leases. Operating lease right-of-use (ROU) assets and lease liabilities may include options to extend or terminate the lease only when it is reasonably certain that Northern Trust will exercise that option. Northern Trust elects not to separate lease and non-lease components of a contract for its real estate leases. The location and amount of ROU assets and lease liabilities recorded on the consolidated balance sheets as of December 31, 2020 and 2019 are presented in the following table. TABLE 86: LOCATION AND AMOUNT OF LEASE ASSETS AND LIABILITIES (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 The weighted-average remaining lease term and weighted-average discount rate applied to leases as of December 31, 2020 and 2019 were as follows: TABLE 87: WEIGHTED-AVERAGE REMAINING LEASE TERM AND DISCOUNT RATE 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 % The following table provides supplemental cash flow information related to leases for the years ended December 31, 2020 and 2019. TABLE 88: SUPPLEMENTAL CASH FLOW INFORMATION (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 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles Goodwill. Changes by reporting segment in the carrying amount of Goodwill for the years ended December 31, 2020 and 2019, including the effect of foreign exchange rates on non-U.S. dollar denominated balances, were as follows. TABLE 89: GOODWILL (In Millions) CORPORATE & INSTITUTIONAL WEALTH 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 The goodwill impairment test is performed at least annually at the reporting-unit level. The Corporation has determined its reporting units for this purpose to be Corporate & Institutional Services and Wealth Management. Goodwill was tested for impairment during the fourth quarter of 2020 using a quantitative assessment in which the estimated fair values of the reporting units are compared to their carrying values. Impairment is deemed to exist if the carrying value of a reporting unit exceeds its estimated fair value. Based upon the quantitative assessments, there were no impairments to goodwill in 2020. Other Intangible Assets Subject to Amortization. The gross carrying amount and accumulated amortization of other intangible assets subject to amortization as of December 31, 2020 and 2019 were as follows. TABLE 90: OTHER INTANGIBLE ASSETS 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 Other intangible assets consist primarily of the value of acquired client relationships and are included in Other Assets on the consolidated balance sheets. Amortization expense related to other intangible assets was $16.9 million, $16.6 million, and $17.4 million for the years ended December 31, 2020, 2019, and 2018, respectively. Amortization for the years 2021, 2022, 2023, 2024, and 2025 is estimated to be $15.1 million, $10.5 million, $10.2 million, $10.1 million, and $9.5 million respectively. In the third quarter of 2019, Northern Trust completed its acquisition of Belvedere Advisors LLC, a provider of digital investment advisory and asset management services. The purchase price recorded in connection with the closing of the acquisition, which is subject to certain performance-related adjustments over a five-year period after the acquisition date, totaled $17.6 million inclusive of contingent consideration. Goodwill and developed technology associated with the transaction totaled $9.3 million and $8.3 million, respectively. In the first quarter of 2019, Northern Trust completed the purchase accounting related to its acquisition of BEx LLC, a provider of foreign exchange software solutions. The purchase price recorded in connection with the closing of the acquisition totaled $37.9 million. Goodwill and developed technology associated with the acquisition totaled $12.5 million and $25.0 million, respectively. Capitalized Software. The gross carrying amount and accumulated amortization of capitalized software as of December 31, 2020 and 2019 were as follows. TABLE 91: CAPITALIZED SOFTWARE 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 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2020 | |
Banking And Thrift, Time Deposits [Abstract] | |
Deposits | Deposits The following table provides the scheduled maturity of total time deposits in denominations of $250,000 or greater at December 31, 2020. TABLE 92: REMAINING MATURITY OF TIME DEPOSITS $250,000 OR MORE 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 As of December 31, 2019, there were $1.7 billion of time deposits in denominations of $250,000 or greater, of which $711.4 million were Certificates of Deposit and $1.0 billion were non-U.S. |
Senior Notes and Long-Term Debt
Senior Notes and Long-Term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Senior Notes and Long-Term Debt | Senior Notes and Long-Term Debt Senior Notes. A summary of Senior Notes outstanding at December 31, 2020 and 2019 is presented in the following table. TABLE 93: SENIOR NOTES DECEMBER 31, ($ 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 (1) As of December 31, 2020, debt issuance costs of $3.4 million are included as a direct deduction from the carrying amount and amortized on a straight-line basis over the life of the Note. (2) Not redeemable prior to maturity. (3) Redeemable within three months of maturity. (4) Interest rate swap contracts were entered into to modify the interest expense from fixed rates to floating rates. The swaps are recorded as fair value hedges and increases in the carrying values of senior notes outstanding of $130.7 million and $77.1 million were recorded as of December 31, 2020 and 2019, respectively. See further detail in Note 27, “Derivative Financial Instruments.” Long-Term Debt. A summary of Long-Term Debt outstanding at December 31, 2020 and 2019 is presented in the following table. TABLE 94: LONG-TERM DEBT DECEMBER 31, ($ 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 (1) As of December 31, 2020, debt issuance costs of $1.1 million are included as a direct deduction from the carrying amount and amortized on a straight-line basis over the life of the Note. (2) Not redeemable prior to maturity. (3) Interest rate swap contracts were entered into to modify the interest expense from fixed rates to floating rates. The swaps are recorded as fair value hedges and increases in the carrying values of the subordinated notes outstanding of $90.8 million and $49.8 million were recorded as of December 31, 2020 and 2019, respectively. See further detail in Note 27, “Derivative Financial Instruments.” |
Floating Rate Capital Debt
Floating Rate Capital Debt | 12 Months Ended |
Dec. 31, 2020 | |
Brokers and Dealers [Abstract] | |
Floating Rate Capital Debt | Floating Rate Capital Debt In January 1997, the Corporation issued $150 million of Floating Rate Capital Securities, Series A, through a statutory business trust wholly owned by the Corporation (NTC Capital I). In April 1997, the Corporation also issued, through a separate wholly owned statutory business trust (NTC Capital II), $120 million of Floating Rate Capital Securities, Series B. The sole assets of the trusts are subordinated debentures of Northern Trust Corporation that have the same interest rates and maturity dates as the corresponding distribution rates and redemption dates of the Floating Rate Capital Securities. The Series A securities were issued at a discount to yield 60.5 basis points above the three-month London Interbank Offered Rate (LIBOR) and are due January 15, 2027. The Series B securities were issued at a discount to yield 67.9 basis points above the three-month LIBOR and are due April 15, 2027. Under the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the regulatory capital treatment of these securities is required to be phased out over a period that began on January 1, 2013. In 2020, 20% of these securities was eligible for Tier 2 capital treatment, declining at an incremental 10% a year until they are fully phased out in 2022. The Corporation has fully, irrevocably and unconditionally guaranteed all payments due on the Series A and B securities. The holders of the Series A and B securities are entitled to receive preferential cumulative cash distributions quarterly in arrears (based on the liquidation amount of $1,000 per security) at an interest rate equal to the rate on the corresponding subordinated debentures. The interest rate on the Series A and Series B securities is equal to three-month LIBOR plus 0.52% and 0.59%, respectively. Subject to certain exceptions, the Corporation has the right to defer payment of interest on the subordinated debentures at any time or from time to time for a period not exceeding 20 consecutive quarterly periods provided that no extension period may extend beyond the stated maturity date. If interest is deferred on the subordinated debentures, distributions on the Series A and B securities will also be deferred and the Corporation will not be permitted, subject to certain exceptions, to pay or declare any cash distributions with respect to the Corporation’s capital stock or debt securities that rank the same as or junior to the subordinated debentures, until all past due distributions are paid. The subordinated debentures are unsecured and subordinated to substantially all of the Corporation’s existing indebtedness. The Corporation has the right to redeem the Series A and Series B subordinated debentures, in whole or in part, at a price equal to the principal amount plus accrued and unpaid interest. The following table summarizes the book values of the outstanding subordinated debentures as of December 31, 2020 and 2019. TABLE 95: SUBORDINATED DEBENTURES 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 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred Stock. The Corporation is authorized to issue 10 million shares of preferred stock without par value. The Board of Directors is authorized to fix the particular designations, preferences and relative, participating, optional and other special rights and qualifications, limitations or restrictions for each series of preferred stock issued. As of December 31, 2020, 5,000 shares of Series D Non-Cumulative Perpetual Preferred Stock (the “Series D Preferred Stock”) and 16,000 shares of Series E Non-Cumulative Perpetual Preferred Stock (the “Series E Preferred Stock”) were outstanding. Series D Preferred Stock. As of December 31, 2020, the Corporation had issued and outstanding 500,000 depositary shares, each representing a 1/100th ownership interest in a share of Series D Preferred Stock, issued in August 2016. Equity related to Series D Preferred Stock as of December 31, 2020 and 2019 was $493.5 million. Shares of the Series D Preferred Stock have no par value and a liquidation preference of $100,000 (equivalent to $1,000 per depositary share). Dividends on the Series D Preferred Stock, which are not mandatory, accrue and are payable on the liquidation preference amount, on a non-cumulative basis, at a rate per annum equal to (i) 4.60% from the original issue date of the Series D Preferred Stock to but excluding October 1, 2026; and (ii) a floating rate equal to Three-Month LIBOR plus 3.202% from and including October 1, 2026. Fixed rate dividends are payable in arrears on the first day of April and October of each year, through and including October 1, 2026, and floating rate dividends will be payable in arrears on the first day of January, April, July and October of each year, commencing on January 1, 2027. The Series D Preferred Stock has no maturity date and is redeemable at the Corporation’s option in whole, or in part, on any dividend payment date on or after October 1, 2026. The Series D Preferred Stock is redeemable at the Corporation’s option in whole, but not in part, including prior to October 1, 2026, within 90 days of a regulatory capital treatment event, as described in the Series D Preferred Stock Certificate of Designation. Shares of the Series D Preferred Stock rank senior to the Corporation’s common stock, and will rank at least equally with any other series of preferred stock it may issue (except for any senior series that may be issued with the requisite consent of the holders of the Series D Preferred Stock) and all other parity stock, with respect to the payment of dividends and distributions upon liquidation, dissolution or winding up. Series E Preferred Stock. As of December 31, 2020, the Corporation had issued and outstanding 16 million depositary shares, each representing 1/1,000th ownership interest in a share of Series E Preferred Stock, issued in November 2019. On January 2, 2020, the proceeds from the Series E Preferred Stock were used to fund the redemption of all outstanding shares of the Corporation’s Series C Non-Cumulative Perpetual Preferred Stock. Equity related to Series E Preferred Stock as of December 31, 2020 and 2019 was $391.4 million, which represents the net aggregate proceeds from the public offering of the depositary shares. Shares of the Series E Preferred Stock have no par value and a liquidation preference of $25,000 (equivalent to $25 per depositary share). Dividends on the Series E Preferred Stock, which are not mandatory, accrue and are payable on the liquidation preference amount, on a non-cumulative basis, quarterly in arrears on the first day of January, April, July and October of each year, at a rate per annum equal to 4.70%. On October 20, 2020, the Corporation declared a cash dividend of $293.75 per share of Series E Preferred Stock payable on January 1, 2021, to stockholders of record as of December 15, 2020. The Series E Preferred Stock has no maturity date and is redeemable at the Corporation’s option in whole, or in part, on any dividend payment date on or after January 1, 2025. The Series E Preferred Stock is redeemable at the Corporation’s option in whole, but not in part, including prior to January 1, 2025, within 90 days of a regulatory capital treatment event, as described in the Series E Preferred Stock Certificate of Designation. Shares of the Series E Preferred Stock rank senior to the Corporation’s common stock, and will rank at least equally with any other series of preferred stock it may issue (except for any senior series that may be issued with the requisite consent of the holders of the Series E Preferred Stock) and all other parity stock, with respect to the payment of dividends and distributions upon liquidation, dissolution or winding up. Common Stock. In July 2018, the Board of Directors approved a stock repurchase authorization to repurchase up to 25.0 million shares of the Corporation’s common stock. Shares are repurchased by the Corporation to, among other things, manage the Corporation’s capital levels. Repurchased shares are used for general purposes, including the issuance of shares under stock option and other incentive plans. The repurchase authorization approved by the Board of Directors has no expiration date. The Corporation suspended this program on March 16, 2020. Subsequent to the Corporation suspending its open-market share repurchase program, the only shares repurchased were shares of common stock withheld upon the vesting of share-based compensation to satisfy tax withholding obligations. During the year ended December 31, 2020, the Corporation repurchased 3,276,589 shares of common stock, including 532,713 shares withheld related to share-based compensation, at a total cost of $299.8 million. The average price paid per share for common stock repurchased in 2020, 2019, and 2018 was $91.49, $93.40, and $102.69, respectively. Beginning in the second quarter of 2020, the Federal Reserve announced certain measures to ensure that large financial institutions, including Northern Trust, remain resilient despite the economic uncertainty resulting from the ongoing COVID-19 pandemic. Specifically, for the third and fourth quarters of 2020, no share repurchases were permitted by these institutions and dividend payments were limited to the amount paid in the second quarter and could not exceed the payor’s average net income for the four preceding quarters. On December 18, 2020, the Federal Reserve again extended its capital distribution limits into the first quarter of 2021 with certain modifications, which include continuing to limit dividend payments based on recent income and limiting share repurchases based on recent income. During the first quarter of 2021, the Corporation restarted its share repurchase program in accordance with such limitations. An analysis of changes in the number of shares of common stock outstanding follows: TABLE 96: SHARES OF COMMON STOCK 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 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following tables summarize the components of Accumulated Other Comprehensive Income (Loss) (AOCI) at December 31, 2020, 2019, and 2018, and changes during the years then ended. TABLE 97: SUMMARY OF CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (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 (1) Includes net unrealized gains (losses) on debt securities transferred from available for sale to held to maturity during the years ended December 31, 2020, 2019, and 2018. TABLE 98: DETAILS OF CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) FOR THE YEAR ENDED DECEMBER 31, 2020 2019 2018 (In Millions) BEFORE TAX AFTER BEFORE TAX AFTER BEFORE TAX AFTER 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) (1) The before-tax reclassification adjustment out of AOCI related to the realized gains (losses) on debt securities available for sale is recorded in Investment Security Gains (Losses), net on the consolidated statements of income. (2) See Note 27, "Derivative Financial Instruments" for the location of the reclassification adjustment related to cash flow hedges. (3) The before-tax reclassification adjustment out of AOCI related to pension and other postretirement benefit adjustments is recorded in Employee Benefits expense on the consolidated statements of income. |
Net Income per Common Share
Net Income per Common Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income per Common Share | Net Income per Common Share The computations of net income per common share are presented in the following table. TABLE 99: NET INCOME PER COMMON SHARE 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 |
Revenue from Contracts with Cli
Revenue from Contracts with Clients | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Clients | Revenue from Contracts with Clients Trust, Investment, and Other Servicing Fees. Custody and fund administration income is comprised of revenues received from our core asset servicing business for providing custody, fund administration, and middle-office-related services, primarily to C&IS clients. Investment management and advisory income contains revenue received from providing asset management and related services to Wealth Management and C&IS clients and to Northern Trust sponsored funds. Securities lending income represents revenues generated from securities lending arrangements that Northern Trust enters into as agent, mainly with C&IS clients. Other income largely consists of revenues received from providing employee benefit, investment risk and analytic and other services to C&IS and Wealth Management clients. Other Noninterest Income. Treasury management income represents revenues received from providing cash and liquidity management services to C&IS and Wealth Management clients. The portion of Security Commissions and Trading Income that relates to revenue from contracts with clients is primarily comprised of commissions earned from providing securities brokerage services to Wealth Management and C&IS clients. The portion of Other Operating Income that relates to revenue from contracts with clients is mainly comprised of service fees for banking-related services provided to Wealth Management and C&IS clients. Performance Obligations. Clients are typically charged monthly or quarterly in arrears based on the fee arrangement agreed to with each client; payment terms will vary depending on the client and services offered. Substantially all revenues generated from contracts with clients for asset servicing, asset management, securities lending, treasury management and banking-related services are recognized on an accrual basis, over the period in which services are provided. The nature of Northern Trust’s performance obligations is to provide a series of distinct services in which the customer simultaneously receives and consumes the benefits of the promised services as they are performed. Fee arrangements are mainly comprised of variable amounts based on market value of client assets managed and serviced, transaction volumes, number of accounts, and securities lending volume and spreads. Revenue is recognized using the output method in an amount that reflects the consideration to which Northern Trust expects to be entitled in exchange for providing each month or quarter of service. For contracts with multiple performance obligations, revenue is allocated to each performance obligation based on the price agreed to with the client, representing its relative standalone selling price. Security brokerage revenue is primarily represented by securities commissions received in exchange of providing trade execution related services. Control is transferred at a point in time, on the trade date of the transaction, and fees are typically variable based on transaction volumes and security types. Northern Trust’s contracts with its clients are typically open-ended arrangements and are therefore considered to have an original duration of less than one year. Northern Trust has elected the practical expedient to not disclose the value of remaining performance obligations for contracts with an original expected duration of one year or less. The following table presents revenues disaggregated by major revenue source. TABLE 100: REVENUE DISAGGREGATION 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 On the consolidated statements of income, Trust, Investment and Other Servicing Fees and Treasury Management Fees represent revenue from contracts with clients. For the year ended December 31, 2020, revenue from contracts with clients also includes $102.4 million of the $133.2 million total Security Commissions and Trading Income and $42.8 million of the $194.0 million total Other Operating Income. For the year ended December 31, 2019, revenue from contracts with clients also includes $87.1 million of the $103.6 million total Security Commissions and Trading Income and $41.8 million of the $145.5 million total Other Operating Income. For the year ended December 31, 2018, revenue from contracts with clients also includes $86.7 million of the $98.3 million total Security Commissions and Trading Income and $44.0 million of the $127.5 million total Other Operating Income. Receivables Balances. The following table represents receivables balances from contracts with clients, which are included in Other Assets on the consolidated balance sheets, at December 31, 2020 and 2019. TABLE 101: CLIENT RECEIVABLES 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 (1) Trust Fees Receivable is net of a $7.2 million and $5.6 million fee receivable allowance as of December 31, 2020 and 2019, respectively. |
Net Interest Income
Net Interest Income | 12 Months Ended |
Dec. 31, 2020 | |
Banking and Thrift, Interest [Abstract] | |
Net Interest Income | Net Interest Income The components of Net Interest Income were as follows: TABLE 102: NET INTEREST INCOME 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 (1) Non-Taxable Securities represent securities that are exempt from U.S. federal income taxes. (2) Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets. |
Other Operating Income
Other Operating Income | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other Operating Income | Other Operating Income The components of Other Operating Income were as follows: TABLE 103: OTHER OPERATING INCOME 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 Other Operating Income in 2020 increased from 2019, primarily due to higher income related to a bank-owned life insurance program implemented during 2019, a charge in the prior year related to the decision made to sell substantially all of the lease portfolio, and higher miscellaneous income. The components of Other Operating Expense were as follows: TABLE 104: OTHER OPERATING EXPENSE 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 |
Other Operating Expense
Other Operating Expense | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other Operating Expense | Other Operating Income The components of Other Operating Income were as follows: TABLE 103: OTHER OPERATING INCOME 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 Other Operating Income in 2020 increased from 2019, primarily due to higher income related to a bank-owned life insurance program implemented during 2019, a charge in the prior year related to the decision made to sell substantially all of the lease portfolio, and higher miscellaneous income. The components of Other Operating Expense were as follows: TABLE 104: OTHER OPERATING EXPENSE 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 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table reconciles the statutory federal tax rate with the effective tax rate for the periods presented below. TABLE 105: INCOME TAXES 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 % Income tax expense for the year ended December 31, 2020 and 2019 was $418.3 million and $451.9 million, representing an effective tax rate of 25.7% and 23.2%, respectively. For the year ended December 31, 2020, the increase in the effective tax rate was primarily driven by $26.8 million of tax expense related to the reversal of tax benefits previously recognized through earnings and higher taxes payable on the income of the Corporation’s non-U.S. branches. For the year ended December 31, 2019, the provision for income taxes included an increase in the U.S. taxes payable on the income of the Corporation’s non-U.S. branches. This increase included a valuation allowance against deferred tax assets as management believes the foreign tax credit carryforward generated in 2019 will not be fully realized. For the year ended December 31, 2018, the provision for income taxes included income tax benefits recorded in 2018 associated with the timing of tax deductions for software development-related expenses and the implementation of the Tax Cuts and Jobs Act (TCJA) enacted in the fourth quarter of 2017, partially offset by a change in the earnings mix in tax jurisdictions in which the Corporation operates. For tax years beginning after December 31, 2017, the TCJA introduces new provisions for U.S. taxation of certain Global Intangible Low-Taxed Income (GILTI). Northern Trust has made the policy election to record any current year tax expense associated with GILTI in the period in which it is incurred. The Corporation files income tax returns in the U.S. federal, various state, and foreign jurisdictions. The Corporation is no longer subject to income tax examinations by U.S. federal authorities before 2013, U.S. state or local tax authorities for years before 2011, or non-U.S. tax authorities for years before 2013. Included in Other Liabilities on the consolidated balance sheets at December 31, 2020 and 2019 were $22.4 million and $25.3 million of unrecognized tax benefits, respectively. If recognized, the amounts would reduce 2020 and 2019 income tax expense by $20.7 million and $22.7 million, respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows. TABLE 106: UNRECOGNIZED TAX BENEFITS (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 It is possible that changes in the amount of unrecognized tax benefits could occur in the next 12 months due to changes in judgment related to recognition or measurement, settlements with taxing authorities, or expiration of statute of limitations. Management does not believe that future changes, if any, would have a material effect on the consolidated financial position or liquidity of Northern Trust, although they could have a material effect on operating results for a particular period. A provision for interest and penalties of $1.2 million, net of tax, was included in the Provision for Income Taxes for the year ended December 31, 2020. This compares to a benefit for interest and penalties of $1.3 million, net of tax, and a provision of $0.3 million, net of tax, for the year ended December 31, 2019 and 2018, respectively. As of December 31, 2020 and 2019, the liability for the potential payment of interest and penalties totaled $9.6 million and $8.4 million, net of tax, respectively. The components of the consolidated Provision for Income Taxes for each of the three years ended December 31 are as follows. TABLE 107: PROVISION FOR INCOME TAXES 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 In addition to the amounts shown above, tax charges and benefits have been recorded directly to Stockholders’ Equity for the following. TABLE 108: TAX CHARGES AND BENEFITS RECORDED DIRECTLY TO STOCKHOLDERS’ EQUITY FOR THE YEAR ENDED DECEMBER 31, (In Millions) 2020 2019 2018 Tax Effect of Other Comprehensive Income $ 168.1 $ 88.9 $ 25.7 Deferred taxes result from temporary differences between the amounts reported on the consolidated financial statements and the tax bases of assets and liabilities. Deferred tax assets and liabilities have been computed as follows. TABLE 109: NET DEFERRED TAX LIABILITIES 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 Northern Trust had various state net operating loss carryforwards as of December 31, 2020 and 2019. The income tax benefits associated with these loss carryforwards were approximately $0.5 million as of December 31, 2020 and $1.0 million as of December 31, 2019. A valuation allowance related to the loss carryforwards of $0.5 million and $0.3 million was recorded at December 31, 2020 and 2019, respectively, as management believes the net operating losses will not be fully realized. The Corporation generated a foreign tax credit carryforward during the years ended December 31, 2020 and 2019, expiring in 2030 and 2029, respectively. A valuation allowance related to the credit carryforward of $25.3 million and $29.5 million was recorded at December 31, 2020 and 2019, respectively, as management believes the foreign tax credit carryforwards will not be fully realized. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Employee Benefits The Corporation and certain of its subsidiaries provide various benefit programs, including defined benefit pension, postretirement health care, and defined contribution plans. A description of each major plan and related disclosures are provided below. Pension. A noncontributory qualified defined benefit pension plan covers substantially all U.S. employees of Northern Trust. Employees of certain European subsidiaries retain benefits in local defined benefit plans, although those plans are closed to new participants and to future benefit accruals. Employees continue to accrue benefits under the Swiss pension plan, which is accounted for as a defined benefit plan under U.S. GAAP. Northern Trust also maintains a noncontributory supplemental pension plan for participants whose retirement benefits under the U.S. Qualified Plan are expected to exceed the limits imposed by federal tax law. Northern Trust has a nonqualified trust, referred to as a “Rabbi” Trust, used to hold assets designated for the funding of benefits in excess of those permitted in certain of its qualified retirement plans. This arrangement offers participants a degree of assurance for payment of benefits in excess of those permitted in the related qualified plans. As the “Rabbi” Trust assets remain subject to the claims of creditors and are not the property of the employees, they are accounted for as corporate assets and are included in Other Assets on the consolidated balance sheets. Total assets in the “Rabbi” Trust related to the nonqualified pension plan at December 31, 2020 and 2019 amounted to $137.5 million and $128.8 million, respectively. Contributions of $10.6 million and $3.0 million were made to the “Rabbi” Trust in 2020 and 2019, respectively. The following tables set forth the status, amounts included in AOCI, and net periodic pension expense of the U.S. Qualified Plan, Non-U.S. Pension Plans, and U.S. Non-Qualified Plan for 2020, 2019, and 2018. Prior service costs are being amortized on a straight-line basis over 11 years for the U.S. Qualified Plan and 10 years for the U.S. Non-Qualified Plan of which approximately one year was remaining as of December 31, 2020 for both the U.S. Qualified Plan and the U.S. Non-Qualified Plan. TABLE 110: EMPLOYEE BENEFIT PLAN STATUS U.S. QUALIFIED PLAN NON-U.S. PENSION PLANS U.S. NON-QUALIFIED PLAN ($ In Millions) 2020 2019 2020 2019 2020 2019 Accumulated Benefit Obligation $ 1,312.9 $ 1,181.9 $ 228.5 $ 204.7 $ 139.8 $ 131.5 Projected Benefit Obligation $ 1,470.6 $ 1,323.4 $ 236.1 $ 211.1 $ 162.3 $ 149.2 Plan Assets at Fair Value 1,793.7 1,601.2 211.5 190.1 — — Funded Status at December 31 $ 323.1 $ 277.8 $ (24.6) $ (21.0) $ (162.3) $ (149.2) Weighted-Average Assumptions: Discount Rates 2.75 % 3.37 % 0.93 % 1.40 % 2.45 % 3.37 % Rate of Increase in Compensation Level 4.97 4.97 1.50 1.50 4.97 4.97 Expected Long-Term Rate of Return on Assets 5.25 5.25 1.28 1.72 N/A N/A TABLE 111: AMOUNTS INCLUDED IN ACCUMULATED OTHER COMPREHENSIVE INCOME 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 TABLE 112: NET PERIODIC PENSION EXPENSE 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 The components of net periodic pension expense are included in Employee Benefits expense on the consolidated statements of income. TABLE 113: CHANGE IN PROJECTED BENEFIT OBLIGATION 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 Actuarial losses of $176.0 million and $256.2 million in 2020 and 2019, respectively, were primarily caused by decreases in discount rates. TABLE 114: ESTIMATED FUTURE BENEFIT PAYMENTS (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 TABLE 115: CHANGE IN PLAN ASSETS 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 The minimum required and maximum remaining deductible contributions for the U.S. Qualified Plan in 2021 are estimated to be zero and $255.0 million, respectively. During 2017, the investment strategy employed for Northern Trust’s U.S. Qualified Plan was changed to utilize a dynamic glide path based on a set of pre-approved asset allocations to return-seeking and liability-hedging assets that vary in accordance with the U.S. Qualified Plan’s projected benefit obligation funded ratio. In 2020, the glide path was adjusted to allow for a greater component of return-seeking investments. In general, as the U.S. Qualified Plan’s projected benefit obligation funded ratio increases beyond an established threshold, the U.S. Qualified Plan’s allocation to liability-hedging assets will increase while the allocation to return-seeking assets will decrease. Conversely, a decrease in the U.S. Qualified Plan’s projected benefit obligation funded ratio beyond an established threshold will result in a decrease in the U.S. Qualified Plan’s allocation to liability-hedging assets and increase in the allocation to return-seeking assets. Liability-hedging assets include U.S. long credit bonds, U.S. long government bonds, and a custom completion strategy used to hedge more closely the liability duration of projected plan benefits with bond duration across all durations. Return-seeking assets include: U.S. equity, international developed equity, emerging markets equity, real estate, high yield bonds, global listed infrastructure, emerging market debt, private equity and hedge funds. Northern Trust utilizes an asset/liability methodology to determine the investment policies that will best meet its short and long-term objectives. The process is performed by modeling current and alternative strategies for asset allocation, funding policy and actuarial methods and assumptions. The financial modeling uses projections of expected capital market returns and expected volatility of those returns to determine alternative asset mixes having the greatest probability of meeting the U.S. Qualified Plan’s investment objectives. Risk tolerance is established through careful consideration of the U.S. Qualified Plan liabilities, funded status, and corporate financial condition. The intent of this strategy is to protect the U.S. Qualified Plan’s healthy funded status and generate returns, which in combination with minimal voluntary contributions are expected to outpace the U.S. Qualified Plan’s liability growth over the long run. The target allocation of the U.S. Qualified Plan assets had been adjusted in August 2020 and consists of 45% U.S. long credit bonds, 20% global equities (developed and emerging markets), 10% custom completion, 5% high yield bonds, 5% private equity, 4% emerging market debt, 4% global listed infrastructure, 4% private real estate, and 3% hedge funds. Global equity investments include common stocks that are listed on an exchange and investments in commingled funds that invest primarily in publicly traded equities. Equity investments are diversified across U.S. and non-U.S. stocks and divided by investment style and market capitalization. Fixed income securities held include U.S. treasury securities, corporate bonds, and investments in commingled funds that invest in a diversified blend of longer duration fixed income securities; the custom completion strategy uses U.S. treasury securities and interest rate futures (or similar instruments) to align more closely with the target hedge ratio across maturities. Diversifying investments, including private equity, hedge funds, private real estate, emerging market debt, high yield bonds, and global listed infrastructure, are used judiciously to enhance long-term returns while improving portfolio diversification. Private equity assets consist primarily of investments in limited partnerships that invest in individual companies in the form of non-public equity or non-public debt positions. Direct or co-investment in non-public stock by the U.S. Qualified Plan is prohibited. The U.S. Qualified Plan’s private equity investments are limited to 20% of each of the total limited partnership or fund of funds and the maximum allowable loss cannot exceed the commitment amount. The U.S. Qualified Plan invests in one hedge fund of funds, which invests, either directly or indirectly, in diversified portfolios of funds or other pooled investment vehicles. Investments in private real estate, high yield bonds, emerging market debt, and global listed infrastructure are designed to provide income and added diversification. Derivatives may be used, depending on the nature of the asset class to which they relate, to gain market exposure in an efficient and timely manner, to hedge foreign currency exposure or interest rate risk, or to alter the duration of a portfolio. There were five derivatives held by the U.S. Qualified Plan at December 31, 2020 and 2019. Investment risk is measured and monitored on an ongoing basis through monthly liability measurements, periodic asset/liability studies, and quarterly investment portfolio reviews. Standards used to evaluate the U.S. Qualified Plan’s investment manager performance include, but are not limited to, the achievement of objectives, operation within guidelines and policy, and comparison against a relative benchmark. In addition, each manager of the investment funds held by the U.S. Qualified Plan is ranked against a universe of peers and compared to a relative benchmark. Total U.S. Qualified Plan performance analysis includes an analysis of the market environment, asset allocation impact on performance, risk and return relative to other ERISA plans, and manager impacts upon U.S. Qualified Plan performance. The following describes the hierarchy of inputs used to measure fair value and the primary valuation methodologies used by Northern Trust for the U.S. Qualified Plan assets measured at fair value. Level 1 – Quoted, active market prices for identical assets or liabilities. The U.S. Qualified Plan’s Level 1 assets are comprised of a mutual fund and domestic common stocks. The U.S. Qualified Plan’s Level 1 investments that are exchange traded are valued at the closing price reported by the respective exchanges on the day of valuation. Level 2 – Observable inputs other than Level 1 prices, such as quoted active market prices for similar assets or liabilities, quoted prices for identical or similar assets in inactive markets, and model-derived valuations in which all significant inputs are observable in active markets. The U.S. Qualified Plan’s Level 2 assets are comprised of U.S. government obligations and collective trust funds. The investments in collective trust funds fair values are calculated on a scheduled basis using the closing market prices and accruals of securities in the funds (total value of the funds) divided by the number of fund shares currently issued and outstanding. Redemptions of the collective trust funds occur by contract at the respective fund’s redemption date net asset value (NAV). Level 3 – Valuation techniques in which one or more significant inputs are unobservable in the marketplace. The U.S. Qualified Plan did not hold Level 3 assets as of December 31, 2020 and 2019. Assets valued at fair value using NAV per share - The U.S. Qualified Plan’s assets valued at fair value using NAV per share include investments in private equity funds and a hedge fund, which invest in underlying groups of investment funds or other pooled investment vehicles that are selected by the respective funds’ investment managers. The investment funds and the underlying investments held by these investment funds are valued at fair value. In determining the fair value of the underlying investments of each fund, the fund’s investment manager or general partner takes into account the estimated value reported by the underlying funds as well as any other considerations that may, in their judgment, increase or decrease such estimated value. The investments in the private equity funds and a hedge fund are considered to be long- term investments. There are no capital withdrawal options related to the investments in the private equity funds. However, capital is occasionally distributed as underlying investments are sold. It is estimated that the current private equity investments would be liquidated over 1 year to 8 years. The Plan’s investment in the hedge fund can be withdrawn quarterly, after a sixty days notice period. The U.S. Qualified Plan’s assets valued at fair value using NAV per share also include investments in real estate funds, which invest in real estate assets. The investment in properties by the real estate funds are carried at fair value, which is estimated based on the price that would be received to sell an asset in an orderly transaction between marketplace participants at the measurement date. The valuation plan for each real estate investment is subject to review on an annual basis which is based on either an external appraisal from appraisal firms or internal valuations prepared by the real estate fund’s investment advisor. The Plan’s investment in real estate funds are considered to be long-term investments and can be withdrawn quarterly to the extent the real estate funds have liquid assets, after a forty-five days notice period. As investments in the private equity funds, hedge fund, and real estate fund are valued at fair value using NAV per share, they are not required to be categorized within the fair value hierarchy. While Northern Trust believes its valuation methods for U.S. Qualified Plan assets are appropriate and consistent with other market participants, the use of different methodologies or assumptions could have a material effect on the computation of the estimated fair values. The following table presents the fair values of Northern Trust’s U.S. Qualified Plan assets, by major asset category, and their level within the fair value hierarchy defined by GAAP as of December 31, 2020 and 2019. TABLE 116: FAIR VALUE OF U.S. QUALIFIED PLAN ASSETS 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 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 A building block approach is employed for Northern Trust’s U.S. Qualified Plan in determining the long-term rate of return for plan assets. Historical markets and long-term historical relationships between equities, fixed income and other asset classes are studied using the widely accepted capital market principle that assets with higher volatility generate a greater return over the long-run. Current market factors such as inflation expectations and interest rates are evaluated before long-term capital market assumptions are determined. The long-term portfolio rate of return is established with consideration given to diversification and rebalancing. The rate is reviewed against peer data and historical returns to verify the return is reasonable and appropriate. Based on this approach and the U.S. Qualified Plan’s target asset allocation, the expected long-term rate of return on assets as of the U.S. Qualified Plan’s December 31, 2020 measurement date was set at 5.25%. Postretirement Health Care. Northern Trust maintains an unfunded postretirement health care plan under which those employees who retire at age 55 or older under the provisions of the U.S. defined benefit plan and had attained 15 years of service as of December 31, 2011 may be eligible for subsidized postretirement health care coverage. The provisions of this health care plan may be changed further at the discretion of Northern Trust, which also reserves the right to terminate these benefits at any time. Northern Trust changed the plan design of its post-retirement health care plan as of January 1, 2021, which resulted in the recognition of negative prior-service cost of $12.7 million at the time these changes were communicated to participants in August 2020. Concurrently, a further shift in population from active to inactive participants required an adjustment to the amortization period from the average remaining service period of active participants to the average life expectancy of the inactive participants. The change in plan design and amortization period resulted in a decrease of the benefit obligation and 2020 benefit expense at the time of recognition by $12.6 million and $0.3 million, respectively. Negative prior service costs are being amortized on a straight-line basis over 13.9 years. The following tables set forth the postretirement health care plan status and amounts included in AOCI at December 31, 2020 and 2019, the net periodic postretirement benefit cost of the plan for 2020 and 2019, and the change in the accumulated postretirement benefit obligation during 2020 and 2019. TABLE 117: POSTRETIREMENT HEALTH CARE PLAN STATUS 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 TABLE 118: AMOUNTS INCLUDED IN ACCUMULATED OTHER COMPREHENSIVE INCOME 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) TABLE 119: NET PERIODIC POSTRETIREMENT EXPENSE (BENEFIT) 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 TABLE 120: CHANGE IN ACCUMULATED POSTRETIREMENT BENEFIT OBLIGATION 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 Northern Trust uses the aggregate Pri-2012 mortality table with a 2012 base year and proposed future improvements under scale MP-2020, as released by the Society of Actuaries in October 2020. The assumption for future mortality improvements was updated at December 31, 2020 from the prior year’s improvement scale MP-2019. TABLE 121: ESTIMATED FUTURE BENEFIT PAYMENTS (In Millions) TOTAL 2021 $ 1.7 2022 1.5 2023 1.4 2024 1.3 2025 1.2 2026-2030 5.1 The weighted average discount rate used in determining the accumulated postretirement benefit obligation was 2.16% at December 31, 2020, and 3.37% at December 31, 2019. For measurement purposes, a 5.75% annual increase in the cost of pre-age 65 medical benefits and post-age 65 medical benefits were assumed for 2020. For drug claims, a 7.50% annual increase in cost was assumed for 2020. These rates are both assumed to gradually decrease until they reach 4.50% in 2027. The health care cost trend rate assumption has an effect on the amounts reported. Defined Contribution Plans. The Corporation and its subsidiaries maintain various defined contribution plans covering substantially all employees. The Corporation’s contribution to the U.S. plan and to certain European-based plans includes a |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation Plans | Share-Based Compensation Plans Northern Trust recognizes expense for the grant-date fair value of share-based compensation granted to employees and non-employee directors. Total compensation expense for share-based payment arrangements to employees and the associated tax impacts were as follows for the periods presented. TABLE 122: TOTAL COMPENSATION EXPENSE FOR SHARE-BASED PAYMENT ARRANGEMENTS TO EMPLOYEES 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 As of December 31, 2020, there was $70.8 million of unrecognized compensation cost related to unvested share-based compensation arrangements granted under the Corporation’s share-based compensation plans. That cost is expected to be recognized as expense over a weighted-average period of approximately two years. The Northern Trust Corporation 2017 Long-Term Incentive Plan (2017 Plan) is administered by the Compensation and Benefits Committee (Committee) of the Board of Directors. All employees of the Corporation and its subsidiaries and all directors of the Corporation are eligible to receive awards under the 2017 Plan. The 2017 Plan provides for the grant of non-qualified and incentive stock options; tandem and free-standing stock appreciation rights; stock awards in the form of restricted stock, restricted stock units and other stock awards; and performance awards. Beginning with grants made on February 21, 2017 under the Northern Trust Corporation 2012 Stock Plan (2012 Plan), restricted stock unit and performance stock unit grants continue to vest in accordance with the original terms of the award if the applicable employee retires after satisfying applicable age and service requirements. For all applicable periods, stock option grants continue to vest in accordance with the original terms of the award if the employee meets applicable age and service requirements upon separation from service. Grants are outstanding under the 2017 Plan, the 2012 Plan, and the Amended and Restated Northern Trust Corporation 2002 Stock Plan (2002 Plan). The 2017 Plan was approved by stockholders in April 2017. Upon approval of the 2017 Plan, no additional shares have been or will be granted under the 2012 Plan or 2002 Plan. The total number of shares of the Corporation’s common stock authorized for issuance under the 2017 Plan is 20,000,000 plus shares forfeited under the 2012 Plan and 2002 Plan. As of December 31, 2020, shares available for future grant under the 2017 Plan, including shares forfeited under the 2012 Plan and 2002 Plan, totaled 17,168,019. The following describes Northern Trust’s share-based payment arrangements and applies to awards under the 2017 Plan, 2012 Plan and the 2002 Plan, as applicable. Stock Options. Stock options consist of options to purchase common stock at prices not less than 100% of the fair value thereof on the date the options are granted. Options have a maximum 10 years life and generally vest and become exercisable in 1 year to 4 years after the date of grant. All options terminate at such time as determined by the Committee and as provided in the terms and conditions of the respective option grants. There were no options granted during the years ended December 31, 2020, 2019, and 2018. The following table provides information about stock options granted, vested, and exercised in the years ended December 31, 2020, 2019, and 2018. TABLE 123: STOCK OPTIONS GRANTED, VESTED, AND EXERCISED 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 The following is a summary of changes in nonvested stock options for the year ended December 31, 2020. TABLE 124: CHANGES IN NONVESTED STOCK OPTIONS NONVESTED OPTIONS SHARES WEIGHTED- AVERAGE GRANT-DATE 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 A summary of the status of stock options at December 31, 2020, and changes during the year then ended, are presented in the following table. TABLE 125: STATUS OF STOCK OPTIONS AND CHANGES ($ 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 Restricted Stock Unit Awards. Restricted stock unit awards may be granted to participants which entitle them to receive a payment in the Corporation’s common stock or cash and such other terms and conditions as the Committee deems appropriate. Each restricted stock unit provides the recipient the opportunity to receive one share of stock for each stock unit that vests. The restricted stock units granted in 2020 predominately vest at a rate equal to 25% each year for four years on the anniversary of the first day of the month following the month in which the grant date falls. Restricted stock unit grants totaled 772,848, 855,112, and 815,314, with weighted average grant-date fair values of $99.58, $91.89, and $103.74 per share, for the years ended December 31, 2020, 2019, and 2018, respectively. The total fair value of restricted stock units vested during the years ended December 31, 2020, 2019, and 2018, was $100.2 million, $89.3 million, and $66.4 million, respectively. A summary of the status of outstanding restricted stock unit awards at December 31, 2020, and changes during the year then ended, is presented in the following table. TABLE 126: OUTSTANDING RESTRICTED STOCK UNIT AWARDS ($ 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 The following is a summary of nonvested restricted stock unit awards at December 31, 2020, and changes during the year then ended. TABLE 127: NONVESTED RESTRICTED STOCK UNIT AWARDS NONVESTED RESTRICTED 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 Performance Stock Units. Each performance stock unit provides the recipient the opportunity to receive one share of the Corporation’s common stock for each stock unit at the end of a three-year performance period. For performance stock unit awards granted in 2018 and 2019, the number of units that vest are subject to the attainment of specified performance targets that are a function of internal return on equity goals. For performance stock unit awards granted in 2020, the number of units that vest are subject to the attainment of specified performance targets that are a function of internal return on equity goals and relative return on equity performance compared to a performance peer group of companies. For performance stock units outstanding as of December 31, 2020, and granted in 2018 or 2019, the number of such units that may vest ranges from 0% to 150% of the original award granted based on the attainment of the applicable 3-year average annual return on equity target. Distribution of the shares is then made after vesting. Performance stock unit grants totaled 205,847, 213,044, and 242,232 for the years ended December 31, 2020, 2019, and 2018, respectively, with weighted average grant-date fair values of $100.83, $93.00, and $104.72. Performance stock units outstanding at target level performance totaled 660,510, 667,741, and 797,531 at December 31, 2020, 2019, and 2018, respectively. Performance stock units had aggregate intrinsic values of $61.5 million, $70.9 million, and $66.7 million, and weighted average remaining vesting terms of 1.0 year each at December 31, 2020, 2019, and 2018, respectively. Non-employee Director Stock Awards. Stock units with total values of $1.5 million (20,148 units), $1.3 million (14,232 units), and $1.2 million (11,363 units) were granted to non-employee directors in 2020, 2019, and 2018, respectively, which vest or vested on the date of the annual meeting of the Corporation’s stockholders in the following years. Total expense recognized on these grants was $1.6 million, $1.4 million, and $1.3 million in 2020, 2019, and 2018, respectively. Stock units granted to non-employee directors do not have voting rights. Each stock unit entitles a director to one share of common stock at vesting, unless a director elects to defer receipt of the shares. Directors may elect to defer the payment of their annual stock unit grant and cash-based compensation until termination of services as director. Deferred cash compensation is converted into stock units representing shares of common stock of the Corporation. Distributions of deferred stock units are made in stock. For compensation deferred prior to January 1, 2018, distributions of the stock unit accounts that relate to cash-based compensation are made in cash based on the fair value of the stock units at the time of distribution. For compensation deferred on or after January 1, 2018, distributions of the stock unit accounts that relate to cash-based compensation are made in stock. |
Cash-Based Compensation Plans
Cash-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2020 | |
Compensation Related Costs [Abstract] | |
Cash-Based Compensation Plans | Cash-Based Compensation PlansVarious incentive plans provide for cash incentives and bonuses to selected employees based upon accomplishment of corporate net income objectives, goals of the reporting segments and support functions, and individual performance. The provision for awards under these plans is charged to Compensation expense and totaled $296.2 million in 2020, $326.1 million in 2019, and $326.5 million in 2018. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities Off-Balance Sheet Financial Instruments, Guarantees and Other Commitments. Northern Trust, in the normal course of business, enters into various types of commitments and issues letters of credit to meet the liquidity and credit enhancement needs of its clients. The contractual amounts of these instruments represent the potential credit exposure should the instrument be fully drawn upon and the client default. To control the credit risk associated with entering into commitments and issuing letters of credit, Northern Trust subjects such activities to the same credit quality and monitoring controls as its lending activities. The following table provides details of Northern Trust's off-balance sheet financial instruments as of December 31, 2020 and 2019. TABLE 128: SUMMARY OF OFF-BALANCE SHEET FINANCIAL INSTRUMENTS DECEMBER 31, 2020 2019 ($ 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 (1) These amounts exclude $384.7 million and $243.6 million of commitments participated to others at December 31, 2020 and 2019, respectively. (2) These amounts include $24.2 million and $44.5 million of standby letters of credit secured by cash deposits or participated to others as of December 31, 2020 and 2019, respectively. Undrawn Commitments to Extend Credit generally have fixed expiration dates or other termination clauses. Since a significant portion of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future loans or liquidity requirements. Standby Letters of Credit obligate Northern Trust to meet certain financial obligations of its clients, if, under the contractual terms of the agreement, the clients are unable to do so. These instruments are primarily issued to support public and private financial commitments, including commercial paper, bond financing, initial margin requirements on futures exchanges, and similar transactions. Northern Trust is obligated to meet the entire financial obligation of these agreements and in certain cases is able to recover the amounts paid through recourse against collateral received or other participants. Financial Guarantees are issued by Northern Trust to guarantee the performance of a client to a third party under certain arrangements. Commercial Letters of Credit are instruments issued by Northern Trust on behalf of its clients that authorize a third party (the beneficiary) to draw drafts up to a stipulated amount under the specified terms and conditions of the agreement and other similar instruments. Commercial letters of credit are issued primarily to facilitate international trade. Custody Securities Lent with Indemnification involves Northern Trust lending securities owned by clients to borrowers who are reviewed and approved by the Northern Trust Capital Markets Credit Committee, as part of its securities custody activities and at the direction of its clients. In connection with these activities, Northern Trust has issued indemnifications to certain clients against certain losses that are a direct result of a borrower’s failure to return securities when due, should the value of such securities exceed the value of the collateral required to be posted. Borrowers are required to collateralize fully securities received with cash or marketable securities. As securities are loaned, collateral is maintained at a minimum 100% of the fair value of the securities plus accrued interest. The collateral is revalued on a daily basis. The amount of securities loaned as of December 31, 2020 and 2019 subject to indemnification was $157.5 billion and $138.1 billion, respectively. Because of the credit quality of the borrowers and the requirement to fully collateralize securities borrowed, management believes that the exposure to credit loss from this activity is not significant and no liability was recorded at December 31, 2020, or 2019 related to these indemnifications. Legal Proceedings. In the normal course of business, the Corporation and its subsidiaries are routinely defendants in or parties to pending and threatened legal actions, and are subject to regulatory examinations, information-gathering requests, investigations, and proceedings, both formal and informal. In certain legal actions, claims for substantial monetary damages are asserted. In regulatory matters, claims for disgorgement, restitution, penalties and/or other remedial actions or sanctions may be sought. Based on current knowledge, after consultation with legal counsel and after taking into account current accruals, management does not believe that losses, fines or penalties, if any, arising from pending litigation or threatened legal actions or regulatory matters either individually or in the aggregate, after giving effect to applicable reserves and insurance coverage will have a material adverse effect on the consolidated financial position or liquidity of the Corporation, although such matters could have a material adverse effect on the Corporation’s operating results for a particular period. Under GAAP, (i) an event is “probable” if the “future event or events are likely to occur”; (ii) an event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely”; and (iii) an event is “remote” if “the chance of the future event or events occurring is slight.” The outcome of litigation and regulatory matters is inherently difficult to predict and/or the range of loss often cannot be reasonably estimated, particularly for matters that (i) will be decided by a jury, (ii) are in early stages, (iii) involve uncertainty as to the likelihood of a class being certified or the ultimate size of the class, (iv) are subject to appeals or motions, (v) involve significant factual issues to be resolved, including with respect to the amount of damages, (vi) do not specify the amount of damages sought or (vii) seek very large damages based on novel and complex damage and liability legal theories. Accordingly, the Corporation cannot reasonably estimate the eventual outcome of these pending matters, the timing of their ultimate resolution or what the eventual loss, fines or penalties, if any, related to each pending matter will be. In accordance with applicable accounting guidance, the Corporation records accruals for litigation and regulatory matters when those matters present loss contingencies that are both probable and reasonably estimable. When loss contingencies are not both probable and reasonably estimable, the Corporation does not record accruals. No material accruals have been recorded for pending litigation or threatened legal actions or regulatory matters. For a limited number of matters for which a loss is reasonably possible in future periods, whether in excess of an accrued liability or where there is no accrued liability, the Corporation is able to estimate a range of possible loss. As of December 31, 2020, the Corporation has estimated the range of reasonably possible loss for these matters to be from zero to approximately $20 million in the aggregate. The Corporation’s estimate with respect to the aggregate range of reasonably possible loss is based upon currently available information and is subject to significant judgment and a variety of assumptions and known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary significantly from the current estimate. In certain other pending matters, there may be a range of reasonably possible loss (including reasonably possible loss in excess of amounts accrued) that cannot be reasonably estimated for the reasons described above. Such matters are not included in the estimated range of reasonably possible loss discussed above. In 2015, Northern Trust Fiduciary Services (Guernsey) Limited (NTFS), an indirect subsidiary of the Corporation, was charged by a French investigating magistrate judge with complicity in estate tax fraud in connection with the administration of two trusts for which it serves as trustee. Charges also were brought against a number of other persons and entities related to this matter. In 2017, a French court found no estate tax fraud had occurred and NTFS and all other persons and entities charged were acquitted. The Public Prosecutor’s Office of France appealed the court decision and in June 2018 a French appellate court issued its opinion on the matter, acquitting all persons and entities charged, including NTFS. In January 2021, the Cour de Cassation, the highest court in France, reversed the June 2018 appellate court ruling, requiring a re-trial at the appellate court level. The re-trial proceedings in the appellate court have not yet been scheduled. As trustee, NTFS provided no tax advice and had no involvement in the preparation or filing of the challenged estate tax filings. Visa Class B Common Shares. Northern Trust, as a member of Visa U.S.A. Inc. (Visa U.S.A.) and in connection with the 2007 restructuring of Visa U.S.A. and its affiliates and the 2008 initial public offering of Visa Inc. (Visa), received certain Visa Class B common shares. The Visa Class B common shares are subject to certain selling restrictions until the final resolution of certain litigation related to interchange fees involving Visa (the covered litigation), at which time the shares are convertible into Visa Class A common shares based on a conversion rate dependent upon the ultimate cost of resolving the covered litigation. On June 28, 2018, and September 27, 2019, Visa deposited an additional $600 million and $300 million, respectively, into an escrow account previously established with respect to the covered litigation. As a result of the additional contributions to the escrow account, the rate at which Visa Class B common shares will convert into Visa Class A common shares was reduced. In September 2018, Visa reached a proposed class settlement agreement covering damage claims but not injunctive relief claims regarding the covered litigation. In December 2019, the district court granted final approval for the proposed class settlement agreement. Certain merchants have opted out of the class settlement and are pursuing claims separately, while other merchants have appealed the approval order granted by the district court. The ultimate resolution of the covered litigation, the timing for removal of the selling restrictions on the Visa Class B common shares and the rate at which such shares will ultimately convert into Visa Class A common shares are uncertain. In June 2016 and 2015, Northern Trust recorded a $123.1 million and $99.9 million net gain on the sale of 1.1 million and 1.0 million of its Visa Class B common shares, respectively. These sales do not affect Northern Trust’s risk related to the impact of the covered litigation on the rate at which such shares will ultimately convert into Visa Class A common shares. Northern Trust continued to hold approximately 4.1 million Visa Class B common shares, which are recorded at their original cost basis of zero, as of both December 31, 2020 and 2019. Clearing and Settlement Organizations. The Bank is a participating member of various cash, securities, and foreign exchange clearing and settlement organizations. It participates in these organizations on behalf of its clients and on its own behalf as a result of its own activities. A wide variety of cash and securities transactions are settled through these organizations, including those involving obligations of states and political subdivisions, asset-backed securities, commercial paper, dollar placements, and securities issued by the Government National Mortgage Association. As a result of its participation in cash, securities, and foreign exchange clearing and settlement organizations, the Bank could be responsible for a pro rata share of certain credit-related losses arising out of the clearing activities. The method in which such losses would be shared by the clearing members is stipulated in each clearing organization’s membership agreement. Credit exposure related to these agreements varies from day to day, primarily as a result of fluctuations in the volume of transactions cleared through the organizations. At December 31, 2020 and 2019, we have not recorded any material liabilities under these arrangements. Controls related to these clearing transactions are closely monitored by management to protect the assets of Northern Trust and its clients. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Northern Trust is a party to various derivative financial instruments that are used in the normal course of business to meet the needs of its clients, as part of its trading activity for its own account; and as part of its risk management activities. These instruments may include foreign exchange contracts, interest rate contracts, total return swap contracts, and swaps related to the sale of certain Visa Class B common shares. Please refer to Note 1, “Summary of Significant Accounting Policies” for the significant accounting policies for derivative financial instruments. Foreign exchange contracts are agreements to exchange specific amounts of currencies at a future date, at a specified rate of exchange. Foreign exchange contracts are entered into primarily to meet the foreign exchange needs of clients. Foreign exchange contracts are also used for trading and risk management purposes. For risk management purposes, Northern Trust uses foreign exchange contracts to reduce its exposure to changes in foreign exchange rates relating to certain forecasted non-functional currency denominated revenue and expenditure transactions, foreign-currency- denominated assets and liabilities, including debt securities and net investments in non-U.S. affiliates. Interest rate contracts include swap and option contracts. Interest rate swap contracts involve the exchange of fixed and floating rate interest payment obligations without the exchange of the underlying principal amounts. Northern Trust enters into interest rate swap contracts with its clients and also may utilize such contracts to reduce or eliminate the exposure to changes in the cash flows or fair value of hedged assets or liabilities due to changes in interest rates. Interest rate option contracts may include caps, floors, collars and swaptions, and provide for the transfer or reduction of interest rate risk, typically in exchange for a fee. Northern Trust enters into option contracts as a seller of interest rate protection to clients. Northern Trust receives a fee at the outset of the agreement for the assumption of the risk of an unfavorable change in interest rates. This assumed interest rate risk is then mitigated by entering into an offsetting position with an outside counterparty. Northern Trust may also purchase or enter into option contracts for risk management purposes including to reduce the exposure to changes in the cash flows of hedged assets due to changes in interest rates. The following table shows the notional and fair values of all derivative financial instruments as of December 31, 2020 and 2019. TABLE 129: NOTIONAL AND FAIR VALUES OF DERIVATIVE FINANCIAL INSTRUMENTS DECEMBER 31, 2020 DECEMBER 31, 2019 FAIR VALUE FAIR VALUE (In Millions) NOTIONAL ASSET (1) LIABILITY (2) NOTIONAL 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 (1) Derivative assets are reported in Other Assets on the consolidated balance sheets. (2) Derivative liabilities are reported in Other Liabilities on the consolidated balance sheets. (3) This line includes swaps related to sales of certain Visa Class B common shares. (4) See further detail in Note 28, "Offsetting of Assets and Liabilities." Notional amounts of derivative financial instruments do not represent credit risk, and are not recorded on the consolidated balance sheets. They are used merely to express the volume of this activity. Northern Trust’s credit-related risk of loss is limited to the positive fair value of the derivative instrument, net of any collateral received, which is significantly less than the notional amount. Hedging Derivative Instruments Designated under GAAP. Northern Trust uses derivative instruments to hedge its exposure to foreign currency, interest rate, and equity price. Certain hedging relationships are formally designated and qualify for hedge accounting under GAAP as fair value, cash flow or net investment hedges. Other derivatives that are entered into for risk management purposes as economic hedges are not formally designated as hedges and changes in fair value are recognized currently in Other Operating Income within the consolidated statements of income (see below section “Derivative Instruments Not Designated as Hedging under GAAP”). Fair Value Hedges. Derivatives are designated as fair value hedges to limit Northern Trust’s exposure to changes in the fair value of assets and liabilities due to movements in interest rates. Cash Flow Hedges. Derivatives are also d esignated as cash flow hedges in order to minimize the variability in cash flows of earning assets or forecasted transactions caused by movements in interest or foreign exchange rates. There were no material gains or losses reclassified into earnings during the years ended December 31, 2020, 2019, and 2018 as a result of the discontinuance of forecasted transactions that were no longer probable of occurring. It is estimated that net losses of $3.2 million and $83.1 million will be reclassified into net income within the next twelve months relating to cash flow hedges of foreign-currency-denominated transactions and cash flow hedges of foreign-currency-denominated debt securities, respectively. It is estimated that a net gain of $0.1 million will be reclassified into net income upon the receipt of interest payments on earning assets within the next twelve months relating to cash flow hedges of available for sale debt securities. As of December 31, 2020, 23 months was the maximum length of time over which the exposure to variability in future cash flows of forecasted foreign-currency-denominated transactions was being hedged. The following table provides fair value and cash flow hedge derivative gains and losses recognized in income during the years ended December 31, 2020, 2019 and 2018. TABLE 130: LOCATION AND AMOUNT OF FAIR VALUE AND CASH FLOW HEDGE DERIVATIVE GAINS AND LOSSES RECORDED IN INCOME (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 The following table provides the impact of fair value hedge accounting on the carrying value of the designated hedged items as of December 31, 2020 and 2019. TABLE 131: HEDGED ITEMS IN FAIR VALUE HEDGES 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 (1) The cumulative hedge accounting basis adjustment includes $10.4 million related to discontinued hedging relationships of available for sale debt securities as of December 31, 2020. There are no amounts related to discontinued hedging relationships in the cumulative hedge accounting basis adjustment of senior notes and long-term debt as of December 31, 2020. (2) The cumulative hedge accounting basis adjustment includes $1.5 million related to discontinued hedging relationships of available for sale debt securities as of December 31, 2019. There were no amounts related to discontinued hedging relationships in the cumulative hedge accounting basis adjustment of senior notes and long-term debt as of December 31, 2019. (3) Carrying value represents amortized cost. Net Investment Hedges. Certain foreign exchange contracts are designated as net investment hedges to minimize Northern Trust’s exposure to variability in the foreign currency translation of net investments in non-U.S. branches and subsidiaries. Net investment hedge losses of $178.7 million and gains of $59.7 million were recognized in AOCI related to foreign exchange contracts for the years ended December 31, 2020 and 2019, respectively. Derivative Instruments Not Designated as Hedging under GAAP. Northern Trust’s derivative instruments that are not designated as hedging under GAAP include derivatives for purposes of client-related and trading activities, as well as other risk management purposes. These activities consist principally of providing foreign exchange services to clients in connection with Northern Trust’s global custody business. However, in the normal course of business, Northern Trust also engages in trading of currencies for its own account. Non-designated risk management derivatives include foreign exchange contracts entered into to manage the foreign currency risk of non-U.S.-dollar-denominated assets and liabilities, the net investment in certain non-U.S. affiliates, commercial loans, and forecasted foreign-currency-denominated transactions. Swaps related to sales of certain Visa Class B common shares were entered into pursuant to which Northern Trust retains the risks associated with the ultimate conversion of the Visa Class B common shares into Visa Class A common shares. Total return swaps are entered into to manage the equity price risk associated with certain investments. Changes in the fair value of derivative instruments not designated as hedges under GAAP are recognized currently in income. The following table provides the location and amount of gains and losses recorded on the consolidated statements of income for the years ended December 31, 2020, 2019, and 2018 for derivative instruments not designated as hedges under GAAP. TABLE 132: LOCATION AND AMOUNT OF GAINS AND LOSSES RECORDED IN INCOME FOR DERIVATIVES NOT DESIGNATED AS HEDGING UNDER GAAP (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 (1) This line includes swaps related to the sale of certain Visa Class B common shares and total return swap contracts. |
Offsetting of Assets and Liabil
Offsetting of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Offsetting of Assets and Liabilities | Offsetting of Assets and Liabilities The following table provides information regarding the offsetting of derivative assets and of securities purchased under agreements to resell within the consolidated balance sheets as of December 31, 2020 and 2019. TABLE 133: OFFSETTING OF DERIVATIVE ASSETS AND SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL DECEMBER 31, 2020 (In Millions) GROSS 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 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 $ — (1) Derivative assets are reported in Other Assets on the consolidated balance sheets. Other Assets (excluding derivative assets) totaled $7.3 billion and $7.4 billion as of December 31, 2020 and 2019, respectively. (2) Including cash collateral received from counterparties. (3) Northern Trust did not possess any cash collateral that was not offset on the consolidated balance sheets that could have been used to offset the net amounts presented on the consolidated balance sheets as of December 31, 2020 and 2019. The following table provides information regarding the offsetting of derivative liabilities and of securities sold under agreements to repurchase within the consolidated balance sheets as of December 31, 2020 and 2019. TABLE 134: OFFSETTING OF DERIVATIVE LIABILITIES AND SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE DECEMBER 31, 2020 (In Millions) GROSS 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 GROSS AMOUNTS OFFSET IN THE BALANCE SHEET (2) NET AMOUNTS PRESENTED IN THE BALANCE SHEET GROSS AMOUNTS NOT OFFSET IN THE BALANCE SHEET NET (3) Derivative Liabilities (1) Foreign Exchange Contracts OTC $ 2,181.6 $ 1,548.6 $ 633.0 $ 0.1 $ 632.9 Interest Rate Swaps OTC 96.7 57.3 39.4 — 39.4 Interest Rate Swaps Exchange Cleared 0.7 — 0.7 — 0.7 Other Financial Derivatives 33.4 12.5 20.9 — 20.9 Total Derivatives Subject to a Master Netting Arrangement 2,312.4 1,618.4 694.0 0.1 693.9 Total Derivatives Not Subject to a Master Netting Arrangement 1,000.6 — 1,000.6 — 1,000.6 Total Derivatives 3,313.0 1,618.4 1,694.6 0.1 1,694.5 Securities Sold under Agreements to Repurchase $ 489.7 $ — $ 489.7 $ 489.7 $ — (1) Derivative liabilities are reported in Other Liabilities on the consolidated balance sheets. Other Liabilities (excluding derivative liabilities) totaled $3.5 billion and $3.1 billion as of December 31, 2020 and 2019, respectively. (2) Including cash collateral deposited with counterparties. (3) Northern Trust did not place any cash collateral with counterparties that was not offset on the consolidated balance sheets that could have been used to offset the net amounts presented on the consolidated balance sheets as of December 31, 2020 and 2019. All of Northern Trust’s securities sold under agreements to repurchase (repurchase agreements) and securities purchased under agreements to resell (reverse repurchase agreements) involve the transfer of financial assets in exchange for cash subject to a right and obligation to repurchase those assets for an agreed upon amount. In the event of a repurchase failure, the cash or financial assets are available for offset. All of Northern Trust’s repurchase agreements and reverse repurchase agreements are subject to a master netting arrangement, which sets forth the rights and obligations for repurchase and offset. Under the master netting arrangement, Northern Trust is entitled to set off receivables from and collateral placed with a single counterparty against obligations owed to that counterparty. In addition, collateral held by Northern Trust can be offset against receivables from that counterparty. However, Northern Trust’s repurchase agreements and reverse repurchase agreements do not meet the requirements to net under GAAP. Derivative asset and liability positions with a single counterparty can be offset against each other in cases where legally enforceable master netting arrangements or similar agreements exist. Derivative assets and liabilities can be further offset by cash collateral received from, and deposited with, the transacting counterparty. The basis for this view is that, upon termination of transactions subject to a master netting arrangement or similar agreement, the individual derivative receivables do not represent resources to which general creditors have rights and individual derivative payables do not represent claims that are equivalent to the claims of general creditors. Credit risk associated with derivative instruments relates to the failure of the counterparty and the failure of Northern Trust to pay based on the contractual terms of the agreement, and is generally limited to the unrealized fair value gains and losses on these instruments, net of any collateral received or deposited. The amount of credit risk will increase or decrease during the lives of the instruments as interest rates, foreign exchange rates, or equity prices fluctuate. Northern Trust’s risk is controlled by limiting such activity to an approved list of counterparties and by subjecting such activity to the same credit and quality controls as are followed in lending and investment activities. Credit Support Annexes and other similar agreements are currently in place with a number of Northern Trust’s counterparties which mitigate the aforementioned credit risk associated with derivative activity conducted with those counterparties by requiring that significant net unrealized fair value gains be supported by collateral placed with Northern Trust. Additional cash collateral received from and deposited with derivative counterparties totaling $111.0 million and $49.0 million, respectively, as of December 31, 2020, and $196.3 million and $2.0 million, respectively, as of December 31, 2019, was not offset against derivative assets and liabilities on the consolidated balance sheets as the amounts exceeded the net derivative positions with those counterparties. Certain master netting arrangements Northern Trust enters into with derivative counterparties contain credit risk-related contingent features in which the counterparty has the option to declare Northern Trust in default and accelerate cash settlement of net derivative liabilities with the counterparty in the event Northern Trust’s credit rating falls below specified levels. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position was $1,648.2 million and $766.2 million at December 31, 2020 and 2019, respectively. Cash collateral amounts deposited with derivative counterparties on those dates included $1,044.0 million and $327.1 million, respectively, posted against these liabilities, resulting in a net maximum amount of termination payments that could have been required at December 31, 2020 and 2019 of $604.2 million and $439.1 million, respectively. Accelerated settlement of these liabilities would not have a material effect on the consolidated financial position or liquidity of Northern Trust. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities Variable Interest Entities (VIEs) are defined within GAAP as entities which either (1) lack sufficient equity at risk to permit the entity to finance its activities without additional subordinated financial support, (2) have equity investors that lack attributes typical of an equity investor, such as the ability to make significant decisions through voting rights affecting the entity’s operations, or the obligation to absorb expected losses or the right to receive residual returns of the entity, or (3) are structured with voting rights that are disproportionate to the equity investor’s obligation to absorb losses or right to receive returns, and substantially all of the activities are conducted on behalf of the holder of the equity investment at risk with disproportionately few voting rights. Investors that finance a VIE through debt or equity interests are variable interest holders in the entity and the variable interest holder, if any, that has both the power to direct the activities that most significantly impact the entity’s economic performance and, through its variable interest, the obligation to absorb losses or the right to receive returns that could potentially be significant to the entity is deemed to be the VIE’s primary beneficiary and is required to consolidate the VIE. Leveraged Leases. In leveraged leasing transactions, Northern Trust acts as lessor of the underlying asset subject to the lease and typically funds 20 - 30% of the asset’s cost via an equity ownership in a trust with the remaining 70 - 80% provided by third party non-recourse debt holders. In such transactions, the trusts, which are VIEs, are created to provide the lessee use of the property with substantially all of the rights and obligations of ownership. The lessee’s maintenance and operation of the leased property has a direct effect on the fair value of the underlying property, and the lessee also has the ability to increase the benefits it can receive and limit the losses it can suffer by the manner in which it uses the property. As a result, Northern Trust has determined that it is not the primary beneficiary of the leveraged lease trust VIEs given it lacks the power to direct the activities that most significantly impact the economic performance of the leveraged lease trust VIEs. Northern Trust’s maximum exposure to loss as a result of its involvement with leveraged lease trust VIEs is limited to the carrying amounts of its leveraged lease investments. As of December 31, 2020 and 2019, the carrying amounts of these investments, which are included in Loans and Leases on the consolidated balance sheets, were $11.4 million and $42.6 million, respectively. Northern Trust’s funding requirements relative to the leveraged lease trust VIEs are limited to its invested capital. Northern Trust has no other liquidity arrangements or obligations to purchase assets of the leveraged lease trust VIEs that would expose Northern Trust to a loss. Tax Credit Structures. Northern Trust invests in qualified affordable housing projects and community development entities (collectively, community development projects) that are designed to generate a return primarily through the realization of tax credits. The community development projects are formed as limited partnerships and limited liability companies in which Northern Trust invests as a limited partner/investor member through equity contributions. The economic performance of the community development projects, some of which are VIEs, is subject to the performance of their underlying investment and their ability to operate in compliance with the rules and regulations necessary for the qualification of tax credits generated by equity investments. Northern Trust has determined that it is not the primary beneficiary of any community development project VIEs as it lacks the power to direct the activities that most significantly impact the economic performance of the underlying investments or to affect their ability to operate in compliance with the rules and regulations necessary for the qualification of tax credits generated by equity investments. This power is held by the general partners and managing members who exercise full and exclusive control of the operations of the community development project VIEs. Northern Trust’s maximum exposure to loss as a result of its involvement with community development projects is limited to the carrying amounts of its investments, including any undrawn commitments. As of December 31, 2020 and 2019, the carrying amounts of these investments in community development projects that generate tax credits, included in Other Assets on the consolidated balance sheets, totaled $919.6 million and $749.3 million, respectively, of which $874.0 million and $700.3 million are VIEs as of December 31, 2020 and 2019, respectively. As of December 31, 2020 and 2019, liabilities related to unfunded commitments on investments in tax credit community development projects, included in Other Liabilities on the consolidated balance sheets, totaled $351.6 million and $376.2 million, respectively, of which $335.9 million and $354.3 million related to undrawn commitments on VIEs as of December 31, 2020 and 2019, respectively. Northern Trust’s funding requirements are limited to its invested capital and undrawn commitments for future equity contributions. Northern Trust has no exposure to loss from liquidity arrangements and no obligation to purchase assets of the community development projects. Tax credits and other tax benefits attributable to community development projects totaled $78.9 million and $67.4 million, respectively, as of December 31, 2020 and 2019. Investment Funds. Northern Trust acts as asset manager for various funds in which clients of Northern Trust are investors. As an asset manager of funds, Northern Trust earns a competitively priced fee that is based on assets managed and varies with each fund’s investment objective. Based on its analysis, Northern Trust has determined that it is not the primary beneficiary of these VIEs under GAAP. Some of the funds for which Northern Trust acts as asset manager comply or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds and therefore the funds are exempt from the consolidation requirements in ASC 810-10. Northern Trust voluntarily waived $36.4 million of money market mutual fund fees for the year ended December 31, 2020 related to the low-interest-rate environment and certain competitive factors. Northern Trust did not waive any money market mutual fund fees for the year ended December 31, 2019. Northern Trust does not have any contractual obligations to provide financial support to the funds. Any potential future support of the funds will be at the discretion of Northern Trust after an evaluation of the specific facts and circumstances. Periodically, Northern Trust makes seed capital investments to certain funds. As of December 31, 2020, Northern Trust had no seed capital investments and no unfunded commitments related to seed capital investments. As of December 31, 2019, Northern Trust had $112.0 million of investments valued using net asset value per share and included in Other Assets and had no unfunded commitments related to seed capital investments. |
Pledged and Restricted Assets
Pledged and Restricted Assets | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments Owned and Pledged as Collateral [Abstract] | |
Pledged and Restricted Assets | Pledged and Restricted Assets Certain of Northern Trust’s subsidiaries, as required or permitted by law, pledge assets to secure public and trust deposits, repurchase agreements and borrowings, as well as for other purposes, including support for securities settlement, primarily related to client activities, and for derivative contracts. The following table presents Northern Trust’s pledged assets. TABLE 135: TYPE OF PLEDGED ASSETS 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 Collateral required for these purposes totaled $5.7 billion and $8.5 billion at December 31, 2020 and 2019, respectively. The following table presents the available for sale debt securities pledged as collateral that are included in pledged assets. TABLE 136: FAIR VALUE OF AVAILABLE FOR SALE DEBT SECURITIES INCLUDED IN PLEDGED ASSETS 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 The secured parties to these transactions have the right to repledge or sell the securities as it relates to $33.5 million and $487.2 million of the pledged collateral as of December 31, 2020 and 2019, respectively. Northern Trust accepts financial assets as collateral that it is and is not permitted to repledge or sell. The collateral is generally obtained under certain reverse repurchase agreements and derivative contracts. The following table presents the fair value of securities accepted as collateral. There was no repledged or sold collateral at December 31, 2020 or 2019. TABLE 137: ACCEPTED COLLATERAL 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 — Deposits maintained to meet Federal Reserve Bank reserve requirements averaged $0.4 billion in 2020 as compared to $1.5 billion in 2019. As a result of the economic environment arising from the COVID-19 pandemic, the Federal Reserve reduced the reserve requirement to zero percent on March 26, 2020. |
Restrictions on Subsidiary Divi
Restrictions on Subsidiary Dividends and Loans or Advances | 12 Months Ended |
Dec. 31, 2020 | |
Banking and Thrift, Other Disclosures [Abstract] | |
Restrictions on Subsidiary Dividends and Loans or Advances | Restrictions on Subsidiary Dividends and Loans or Advances Various federal and state statutory provisions limit the amount of dividends the Bank can pay to the Corporation without regulatory approval. Approval of the Federal Reserve Board is required for payment of any dividend by a state-chartered bank that is a member of the Federal Reserve System if the total of all dividends declared by the bank in any calendar year would exceed the total of its retained net income (as defined by regulatory agencies) for that year combined with its retained net income for the preceding two years. In addition, a state member bank may not pay a dividend in an amount greater than its “undivided profits,” as defined, without regulatory and stockholder approval. Under Illinois law, an Illinois state bank, prior to paying a dividend, must carry over to surplus at least one-tenth of its net profits since the date of the declaration of the last preceding dividend, until the bank’s surplus is equal to its capital. In addition, an Illinois state bank may not pay any dividend in an amount greater than its net profits then on hand, after deduction of losses and bad debts (defined as debts due to a state bank on which interest is past due and unpaid for a period of six months or more, unless the same are well secured and in the process of collection). The Bank is also prohibited under federal law from paying any dividends if the Bank is undercapitalized or if the payment of the dividends would cause the Bank to become undercapitalized. In addition, the federal regulatory agencies are authorized to prohibit a bank or bank holding company from engaging in an unsafe or unsound banking practice. The payment of dividends could, depending on the financial condition of the Bank, be deemed to constitute an unsafe or unsound practice. The Dodd-Frank Wall Street Reform and Consumer Protection Act and Basel III impose additional restrictions on the ability of banking institutions to pay dividends (e.g., the Corporation may pay dividends only in accordance with the capital plan rules and capital adequacy standards of the Federal Reserve). Under federal law, financial transactions by the Bank, the Corporation’s insured banking subsidiary, with the Corporation and its affiliates that are in the form of loans or extensions of credit, investments, guarantees, derivative transactions, repurchase agreements, securities lending transactions or purchases of assets, are restricted. These transactions must be on terms and conditions that are, or in good faith would be, offered to non-affiliated companies (i.e. on terms not less favorable to the Bank than market terms). Further, extensions of credit must be secured fully with qualifying collateral and are limited to 10% of the Bank’s capital and surplus for transactions with a single affiliate and to 20% of the Bank’s capital and surplus with all affiliates. Other state and federal laws may limit the transfer of funds by the Corporation’s banking subsidiaries to the Corporation and certain of its affiliates. |
Reporting Segments and Related
Reporting Segments and Related Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Reporting Segments and Related Information | Reporting Segments and Related Information Segment Information. Northern Trust is organized around its two client-focused reporting segments: C&IS and Wealth Management. Asset management and related services are provided to C&IS and Wealth Management clients primarily by the Asset Management business. The revenue and expenses of Asset Management and certain other support functions are allocated fully to C&IS and Wealth Management. Reporting segment financial information, presented on an internal management-reporting basis, is determined by accounting systems used to allocate revenue and expense to each segment, and incorporates processes for allocating assets, liabilities, equity and the applicable interest income and expense utilizing a funds transfer pricing (FTP) methodology. Under the methodology, assets and liabilities receive a funding charge or credit that considers interest rate risk, liquidity risk, and other product characteristics on an instrument level. Equity is allocated to the reporting segments based on a variety of factors including, but not limited to, risk, regulatory considerations, and internal metrics. Allocations of capital and certain corporate expense may not be representative of levels that would be required if the segments were independent entities. The accounting policies used for management reporting are consistent with those described in Note 1, “Summary of Significant Accounting Policies.” Transfers of income and expense items are recorded at cost; there is no consolidated profit or loss on sales or transfers between reporting segments. Northern Trust’s presentations are not necessarily consistent with similar information for other financial institutions. Effective January 1, 2019, Northern Trust implemented several enhancements to its FTP methodology, including the allocation of contingent liquidity charges to C&IS and Wealth Management client instruments and products. These methodology enhancements affect the results of each reporting segment. Due to the lack of historical information, segment results for periods ended prior to January 1, 2019 have not been revised to reflect the methodology enhancements. Also effective January 1, 2019, revenues, expenses and average assets are allocated to C&IS and Wealth Management with the exception of non-recurring activities such as certain costs associated with acquisitions, divestitures, litigation, restructuring, and tax adjustments not directly attributable to a specific reporting segment. For reporting periods ended prior to January 1, 2019, income and expense associated with the wholesale funding activities and investment portfolios of the Corporation and the Bank, as well as certain corporate-based expense, executive-level compensation and nonrecurring items, were not allocated to C&IS and Wealth Management, and were reported in Treasury and Other. Reporting segment results are subject to reclassification when organizational changes are made. The results are also subject to refinements in revenue and expense allocation methodologies, which are typically reflected on a prospective basis. The following tables reflect the earnings contribution and average assets of Northern Trust’s reporting segments for the years ended December 31, 2020, 2019, and 2018. TABLE 138: CORPORATE & INSTITUTIONAL SERVICES RESULTS OF OPERATIONS 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 (1) Non-GAAP financial measures stated on an FTE basis. TABLE 139: WEALTH MANAGEMENT RESULTS OF OPERATIONS 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 (1) Non-GAAP financial measures stated on an FTE basis. TABLE 140: TREASURY AND OTHER RESULTS OF OPERATIONS 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 (1) Non-GAAP financial measures stated on an FTE basis. TABLE 141: CONSOLIDATED FINANCIAL INFORMATION 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 (1) Non-GAAP financial measures stated on an FTE basis. The consolidated figures include $34.4 million, $32.8 million, and $41.2 million, of FTE adjustments for 2020, 2019, and 2018, respectively. Further discussion of reporting segment results is provided within the “Reporting Segments and Related Information” section of Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Geographic Area Information. Northern Trust’s non-U.S. activities are primarily related to its asset servicing, asset management, foreign exchange, cash management, and commercial banking businesses. The operations of Northern Trust are managed on a reporting segment basis and include components of both U.S and non-U.S. source income and assets. Non-U.S. source income and assets are not separately identified in Northern Trust’s internal management reporting system. However, Northern Trust is required to disclose non-U.S. activities based on the domicile of the customer. Due to the complex and integrated nature of Northern Trust’s activities, it is difficult to segregate with precision revenues, expenses and assets between U.S. and non-U.S.-domiciled customers. Therefore, certain subjective estimates and assumptions have been made to allocate revenues, expenses and assets between U.S. and non-U.S. operations. For purposes of this disclosure, all foreign exchange trading income has been allocated to non-U.S. operations. Interest expense is allocated to non-U.S. operations based on specifically matched or pooled funding. Allocations of indirect noninterest expenses, when made, are based on various methods such as time, space, and number of employees. The following table summarizes Northern Trust’s performance based on the allocation process described above without regard to guarantors or the location of collateral. TABLE 142: DISTRIBUTION OF TOTAL ASSETS AND OPERATING PERFORMANCE (In Millions) TOTAL ASSETS TOTAL REVENUE (1) INCOME BEFORE 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 (1) Total revenue is comprised of net interest income and noninterest income. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2020 | |
Regulatory Capital Requirements Abstract [Abstract] | |
Regulatory Capital Requirements | Regulatory Capital Requirements Northern Trust Corporation and the Bank are subject to various regulatory capital requirements administered by the federal bank regulatory authorities. Under these requirements, banks must maintain specific risk-based and leverage ratios in order to be classified as “well-capitalized.” The regulatory capital requirements impose certain restrictions upon banks that meet minimum capital requirements but are not “well-capitalized” and obligate the federal bank regulatory authorities to take “prompt corrective action” with respect to banks that do not maintain such minimum ratios. Such prompt corrective action could have a direct material effect on a bank’s financial statements. As of December 31, 2020 and 2019, the Bank had capital ratios above the levels required for classification as a “well-capitalized” institution and had not received any regulatory notification of a lower classification. As a result of the stress test results published by the Federal Reserve on June 25, 2020, Northern Trust’s stress capital buffer requirement for the 2020 Capital Plan cycle was set at 2.5%. The 2020 stress capital buffer became effective October 1, 2020, and results in a common equity tier 1 capital ratio minimum requirement of 7.0%. Additionally, Northern Trust’s subsidiary banks located outside the U.S. are subject to regulatory capital requirements in the jurisdictions in which they operate. As of December 31, 2020 and 2019, Northern Trust’s non-U.S. banking subsidiaries had capital ratios above their specified minimum requirements. There were no conditions or events since December 31, 2020, that management believes have adversely affected the capital categorization of any Northern Trust subsidiary bank. The following table provides capital ratios for the Corporation and the Bank determined by Basel III phased in requirements. TABLE 143: RISK-BASED AND LEVERAGE CAPITAL AMOUNTS AND RATIOS DECEMBER 31, 2020 DECEMBER 31, 2019 ($ In Millions) STANDARDIZED APPROACH ADVANCED APPROACH STANDARDIZED APPROACH ADVANCED 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 (1) In November 2019, the Federal Reserve and other U.S. federal banking agencies adopted a final rule that established a deduction for central bank deposits from the total leverage exposures of custodial banking organizations, including Northern Trust Corporation and The Northern Trust Company, equal to the lesser of (i) the total amount of funds the custodial banking organization and its consolidated subsidiaries have on deposit at qualifying central banks and (ii) the total amount of client funds on deposit at the custodial banking organization that are linked to fiduciary or custodial and safekeeping accounts. The rule became effective on April 1, 2020. Further, on April 1, 2020, the Federal Reserve issued an interim final rule that requires bank holding companies, including Northern Trust Corporation, to deduct, on a temporary basis, deposits with the Federal Reserve and investments in U.S. Treasury securities from their total leverage exposure. The U.S. Treasury securities deduction is applied in addition to the central bank deposits relief referred to above. This rule became effective on April 1, 2020 and will remain in effect through the first quarter of 2021. On May 15, 2020, the U.S. federal banking agencies released an interim final rule that permits insured depository institutions of bank holding companies also to temporarily exclude deposits with the Federal Reserve and investments in U.S. Treasury securities from their total leverage exposure. The Northern Trust Company did not elect to take this deduction. The supplementary leverage ratios at December 31, 2020 for the Northern Trust Corporation and The Northern Trust Company reflect the impact of these final rules. The U.S. banking agencies’ capital rules are based on the Basel III framework. Under the Basel III framework, these rules are currently being phased in, and will come into full effect by January 1, 2022. Northern Trust Corporation’s remaining elements of the rules subject to the phase in requirements are not material to regulatory capital ratios. Under the final Basel III rules, the Corporation and the Bank are required to calculate and publicly disclose risk-based capital ratios using two methodologies: an advanced approach and a standardized approach. Under the advanced approach, credit risk weighted assets (RWA) are based on internal credit models and parameters. Additionally, the advanced approach incorporates operational risk RWA. Under the standardized approach, RWA are based on supervisory prescribed risk weights that are primarily dependent on counterparty type and asset class. |
Northern Trust Corporation (Cor
Northern Trust Corporation (Corporation only) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Northern Trust Corporation (Corporation only) | Northern Trust Corporation (Corporation only) Condensed financial information is presented in the following tables. Investments in wholly-owned subsidiaries are carried on the equity method of accounting. TABLE 144: CONDENSED BALANCE SHEETS 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 TABLE 145: CONDENSED STATEMENTS OF INCOME 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 TABLE 146: CONDENSED STATEMENTS OF CASH FLOWS 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 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation. The consolidated financial statements include the accounts of Northern Trust Corporation (Corporation) and its wholly-owned subsidiary, The Northern Trust Company (Bank), and various other wholly-owned subsidiaries of the Corporation and Bank. Throughout the notes to the consolidated financial statements, the term “Northern Trust” refers to the Corporation and its subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The consolidated statements of income include results of acquired subsidiaries from the dates of acquisition. Certain prior-year balances have been reclassified consistent with the current year’s presentation. |
Nature of Operations | Nature of Operations. The Corporation is a bank holding company that has elected to be a financial holding company under the Bank Holding Company Act of 1956, as amended. The Bank is an Illinois banking corporation headquartered in Chicago and the Corporation’s principal subsidiary. The Corporation conducts business in the United States (U.S.) and internationally through various U.S. and non-U.S. subsidiaries, including the Bank. Northern Trust generates the majority of its revenue from its two client-focused reporting segments: Corporate & Institutional Services (C&IS) and Wealth Management. Asset management and related services are provided to C&IS and Wealth Management clients primarily by the Asset Management business. C&IS is a leading global provider of asset servicing and related services to corporate and public retirement funds, foundations, endowments, fund managers, insurance companies, sovereign wealth funds, and other institutional investors around the globe. Asset servicing and related services encompass a full range of capabilities including but not limited to: global custody; fund administration; investment operations outsourcing; investment management; investment risk and analytical services; employee benefit services; securities lending; foreign exchange; treasury management; brokerage services; transition management services; banking and cash management. Client relationships are managed through the Bank and the Bank’s and the Corporation’s other subsidiaries, including support from locations in North America, Europe, the Middle East, and the Asia-Pacific region. Wealth Management focuses on high-net-worth individuals and families, business owners, executives, professionals, retirees, and established privately-held businesses in its target markets. The business also includes the Global Family Office, which provides customized services to meet the complex financial needs of individuals and family offices in the U.S. and throughout the world with assets typically exceeding $200 million. In supporting these targeted segments, Wealth Management provides trust, investment management, custody, and philanthropic services; financial consulting; guardianship and estate administration; family business consulting; family financial education; brokerage services; and private and business banking. Wealth Management services are delivered by multidisciplinary teams through a network of offices in 19 U.S. states and Washington, D.C., as well as offices in London, Guernsey, and Abu Dhabi. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions in the application of certain of our significant accounting policies that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. |
Foreign Currency Remeasurement and Translation | Foreign Currency Remeasurement and Translation. Asset and liability accounts denominated in nonfunctional currencies are remeasured into functional currencies at period-end rates of exchange, except for certain balance sheet items including but not limited to buildings and equipment, goodwill and other intangible assets, which are remeasured at historical exchange rates. Results from remeasurement of asset and liability accounts are reported in Other Operating Income as currency translation gains (losses), net, on the consolidated statements of income. Income and expense accounts are remeasured at period-average rates of exchange.Asset and liability accounts of entities with functional currencies that are not the U.S. dollar are translated at period-end rates of exchange. Income and expense accounts are translated at period-average rates of exchange. Translation adjustments, net of applicable taxes, are reported directly to accumulated other comprehensive income (AOCI), a component of stockholders’ equity. |
Securities | Securities. Securities Available for Sale are reported at fair value, with unrealized gains and losses credited or charged, net of the tax effect, to AOCI. Realized gains and losses on securities available for sale are determined on a specific identification basis and are reported within Investment Security Gains (Losses), net, on the consolidated statements of income. Interest income is recorded on the accrual basis, adjusted for the amortization of premium and accretion of discount. Securities Held to Maturity consist of debt securities that management intends to, and Northern Trust has the ability to, hold until maturity. Such securities are reported at cost, adjusted for amortization of premium and accretion of discount. Interest income is recorded on the accrual basis adjusted for the amortization of premium and accretion of discount. Securities Held for Trading are reported at fair value. Realized and unrealized gains and losses on securities held for trading are reported within Security Commissions and Trading Income on the consolidated statements of income. Nonmarketable Securities primarily consist of Federal Reserve Bank of Chicago and Federal Home Loan Bank stock and community development investments, each of which are recorded in Other Assets on the consolidated balance sheets. Federal Reserve Bank of Chicago and Federal Home Loan Bank stock are reported at cost, which represents redemption value. Community development investments are typically reported at amortized cost. Those community development investments that are designed to generate a return primarily through realization of tax credits and other tax benefits, which are discussed in further detail in Note 29, “Variable Interest Entities,” are amortized over the lives of the related tax credits and other tax benefits. |
Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase | Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase. Northern Trust participates in the repurchase agreement market as a relatively low cost alternative for short-term funding. Securities purchased under agreements to resell and securities sold under agreements to repurchase are accounted for as collateralized financings and recorded at the amounts at which the securities were acquired or sold plus accrued interest. To minimize any potential credit risk associated with these transactions, the fair value of the securities purchased or sold is monitored, limits are set on exposure with counterparties, and the financial condition of counterparties is regularly assessed. It is Northern Trust’s policy to take possession, either directly or via third-party custodians, of securities purchased under agreements to resell. Securities sold under agreements to repurchase are held by the counterparty until the repurchase. |
Derivative Financial Instruments | Derivative Financial Instruments. Northern Trust is a party to various derivative financial instruments that are used in the normal course of business to meet the needs of its clients, as part of its trading activity for its own account, and as part of its risk management activities. These instruments generally include foreign exchange contracts, interest rate contracts, total return swap contracts and credit default swap contracts. All derivative financial instruments, whether designated as hedges or not, are recorded at fair value within Other Assets and Other Liabilities on the consolidated balance sheets. Derivative asset and liability positions with the same counterparty are reflected on a net basis on the consolidated balance sheets in cases where legally enforceable master netting arrangements or similar agreements exist. These derivative assets and liabilities are further reduced by cash collateral received from, and deposited with, derivative counterparties. The accounting for changes in the fair value of a derivative on the consolidated statements of income depends on whether or not the contract has been designated as a hedge and qualifies for hedge accounting under GAAP. Derivative financial instruments are recorded within the line item, Other Operating Activities, net, on the consolidated statement of cash flows, except for net investment hedges which are recorded within Other Investing Activities, net. Changes in the fair value of client-related and trading derivative instruments, which are not designated hedges under GAAP, are recognized currently in either Foreign Exchange Trading Income or Security Commissions and Trading Income on the consolidated statements of income. Changes in the fair value of derivative instruments entered into for risk management purposes but not designated as hedges are recognized currently in Other Operating Income on the consolidated statements of income. Certain derivative instruments used by Northern Trust to manage risk are formally designated and qualify for hedge accounting as fair value, cash flow, or net investment hedges. Derivatives designated as fair value hedges are used to limit Northern Trust’s exposure to changes in the fair value of assets and liabilities due to movements in interest rates. Changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability attributable to the hedged risk are recognized currently in Interest Income or Interest Expense on the consolidated statements of income. For substantially all fair value hedges, Northern Trust applies the “shortcut” method of accounting, available under GAAP. As a result, changes recorded in the fair value of the hedged item are assumed to equal the offsetting gain or loss on the derivative. For fair value hedges that do not qualify for the “shortcut” method of accounting, Northern Trust utilizes regression analysis in assessing whether these hedging relationships are highly effective at inception and quarterly thereafter. Derivatives designated as cash flow hedges are used to minimize the variability in cash flows of earning assets or forecasted transactions caused by movements in interest or foreign exchange rates. Changes in the fair value of such derivatives are recognized in AOCI, a component of stockholders’ equity, and there is no change to the accounting for the hedged item. Balances in AOCI are reclassified to earnings when the hedged forecasted transaction impacts earnings, and are reflected in the same income statement line item. Northern Trust applies the “shortcut” method of accounting for cash flow hedges of certain available for sale investment securities. For cash flow hedges of certain other available for sale investment securities, foreign currency denominated investment securities, and forecasted foreign currency denominated revenue and expenditure transactions, Northern Trust closely matches all terms of the hedged item and hedging derivative at inception and on an ongoing basis. For cash flow hedges of available for sale investment securities, to the extent all terms are not perfectly matched, effectiveness is assessed using regression analysis. For cash flow hedges of forecasted foreign currency denominated revenue and expenditure transactions and investment securities, to the extent all terms are not perfectly matched, effectiveness is assessed using the dollar-offset method. Foreign exchange contracts and qualifying non-derivative instruments designated as net investment hedges are used to minimize Northern Trust’s exposure to variability in the foreign currency translation of net investments in non-U.S. branches and subsidiaries. Changes in the fair value of the hedging instrument are recognized in AOCI consistent with the related translation gains and losses of the hedged net investment. For net investment hedges, all critical terms of the hedged item and the hedging instrument are matched at inception and on an ongoing basis. Amounts recorded in AOCI are reclassified to earnings only upon the sale or liquidation of an investment in a non-U.S. branch or subsidiary. Fair value, cash flow, and net investment hedges are designated and formally documented as such contemporaneous with the transaction. The formal documentation describes the hedge relationship and identifies the hedging instruments and hedged items. Included in the documentation is a discussion of the risk management objectives and strategies for undertaking such hedges, the nature of the risk being hedged, and a description of the method for assessing hedge effectiveness at inception and on an ongoing basis. For hedges that do not qualify for the “shortcut” or the critical terms match methods of accounting, a formal assessment is performed on a calendar quarter basis to verify that derivatives used in hedging transactions continue to be highly effective in offsetting the changes in fair value or cash flows of the hedged item. Hedge accounting is discontinued if a derivative ceases to be highly effective, matures, is terminated or sold, if a hedged forecasted transaction is no longer expected to occur, or if Northern Trust removes the derivative’s hedge designation. Subsequent gains and losses on these derivatives are included in Foreign Exchange Trading Income or Security Commissions and Trading Income on the consolidated statements of income. For discontinued cash flow hedges, the accumulated gain or loss on the derivative remains in AOCI and is reclassified to earnings in the period in which the previously hedged forecasted transaction impacts earnings or is no longer probable of occurring. For discontinued fair value hedges, the previously hedged asset or liability ceases to be adjusted for changes in its fair value. Previous adjustments to the hedged item are amortized over the remaining life of the hedged item. |
Loans and Leases | Loans and Leases. Loans and leases are recognized assets that represent a contractual right to receive money either on demand or on fixed or determinable dates. Loans and leases are disaggregated for disclosure purposes by portfolio segment (segment) and by class. Northern Trust has defined its segments as commercial and personal. A class of loans and leases is a subset of a segment, the components of which have similar risk characteristics, measurement attributes, or risk monitoring methods. The classes within the commercial segment have been defined as commercial and institutional, commercial real estate, lease financing, net, non-U.S. and other. The classes within the personal segment have been defined as residential real estate, private client and other. Loan Classification. Loans that are held for investment are reported at the principal amount outstanding, net of unearned income. Loans classified as held for sale are reported at the lower of cost or fair value. Undrawn commitments relating to loans that are not held for sale are recorded in Other Liabilities and are carried at the amount of unamortized fees with an allowance for credit loss liability recognized for any estimated expected losses. Nonaccrual Loans and Recognition of Income. Interest income on loans and leases is recorded on an accrual basis unless, in the opinion of management, there is a question as to the ability of the debtor to meet the terms of the loan agreement, or interest or principal is more than 90 days contractually past due and the loan is not well-secured and in the process of collection. Loans meeting such criteria are classified as nonaccrual and interest income is recorded on a cash basis. Past due status is based on how long since the contractual due date a principal or interest payment has been past due. For disclosure purposes, loans that are 29 days past due or less are reported as current. At the time a loan is determined to be nonaccrual, interest accrued but not collected is reversed against interest income in the current period. Interest collected on nonaccrual loans is applied to principal unless, in the opinion of management, collectability of principal is not in doubt. Management’s assessment of indicators of loan and lease collectability, and its policies relative to the recognition of interest income, including the suspension and subsequent resumption of income recognition, do not meaningfully vary between loan and lease classes. Nonaccrual loans are returned to performing status when factors indicating doubtful collectability no longer exist. Factors considered in returning a loan to performing status are consistent across all classes of loans and leases and, in accordance with regulatory guidance, relate primarily to expected payment performance. A loan is eligible to be returned to performing status when: (i) no principal or interest that is due is unpaid and repayment of the remaining contractual principal and interest is expected or (ii) the loan has otherwise become well-secured (possessing realizable value sufficient to discharge the debt, including accrued interest, in full) and is in the process of collection (through action reasonably expected to result in debt repayment or restoration to a current status in the near future). A loan that has not been brought fully current may be restored to performing status provided there has been a sustained period of repayment performance (generally a minimum of six payment periods) by the borrower in accordance with the contractual terms, and Northern Trust is reasonably assured of repayment within a reasonable period of time. Additionally, a loan that has been formally restructured so as to be reasonably assured of repayment and performance according to its modified terms may be returned to accrual status, provided there was a well-documented credit evaluation of the borrower’s financial condition and prospects of repayment under the revised terms, and there has been a sustained period of repayment performance (generally a minimum of six payment periods) under the revised terms. Troubled Debt Restructurings (TDRs). A loan that has been modified as a concession by Northern Trust or a bankruptcy court resulting from the debtor’s financial difficulties is referred to as a troubled debt restructuring (TDR). All TDRs are reported as TDRs starting in the calendar year of their restructuring. In subsequent years, a TDR may cease being reported as a TDR if the loan was modified at a market rate and has performed according to the modified terms for at least six payment periods. A loan that has been modified at a below market rate will return to accrual status if it satisfies the six-payment-period performance requirement. The expected credit loss is measured based upon the present value of expected future cash flows, discounted at the effective interest rate based on the original contractual rate. If a loan’s contractual interest rate varies based on subsequent changes in an independent factor, such as an index or rate, the loan’s effective interest rate is calculated based on the factor as it changes over the life of the loan. Northern Trust elected not to project changes in the factor for purposes of estimating expected future cash flows. Further, Northern Trust elected not to adjust the effective interest rate for prepayments. If the loan is collateral dependent, the expected loss is measured based on the fair value of the collateral at the reporting date. If the loan valuation is less than the recorded value of the loan, either an allowance is established, or a charge-off is recorded, for the difference. Smaller balance (individually less than $1 million) homogeneous loans are collectively evaluated. Northern Trust’s accounting policies for material nonaccrual loans is consistent across all classes of loans and leases. All loans and leases with TDR modifications are evaluated for additional expected credit losses. The nature and extent of further deterioration in credit quality, including a subsequent default, is considered in the determination of an appropriate level of allowance for credit losses. Collateral Dependent Financial Assets. A financial asset is collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. Most of Northern Trust’s collateral dependent credit exposure relates to its residential real estate portfolio for which the collateral is usually the underlying real estate property. For collateral dependent financial assets, it is Northern Trust’s policy to reserve or charge-off the difference between the amortized cost basis of the loan and the value of the collateral. Premium, Discounts, Origination Costs and Fees. Premiums and discounts on loans are recognized as an adjustment of yield using the interest method based on the contractual terms of the loan. Certain direct origination costs and fees are netted, deferred and amortized over the life of the related loan as an adjustment to the loan’s yield. |
Allowance for Credit Losses | Allowance for Credit Losses. 2020 Allowance for Credit Losses after the Adoption of Accounting Standards Update No. 2016-13 As of December 31, 2020, the allowance for credit losses represents management’s best estimate of lifetime expected credit losses related to various portfolios subject to credit risk, off-balance sheet credit exposure, and specific borrower relationships. Northern Trust measures expected credit losses of financial assets with similar risk characteristics on a collective basis. A financial asset is measured individually if it does not share similar risk characteristics with other financial assets and the related allowance is determined through an individual evaluation. Management’s estimates utilized in establishing an appropriate level of allowance for credit losses are not dependent on any single assumption. In determining an appropriate allowance level, management evaluates numerous variables, many of which are interrelated or dependent on other assumptions and estimates, and takes into consideration past events, current conditions and reasonable and supportable forecasts. Forecasting and Reversion. Estimating expected lifetime credit losses requires the consideration of the effect of future economic conditions. Northern Trust employs multiple scenarios over a reasonable and supportable period to project future conditions. Management determines the probability weights assigned to each scenario at each quarter-end. Key variables determined to be relevant for projecting credit losses on the portfolios in scope include macroeconomic factors, such as corporate profits, unemployment, and real estate price indices, as well as financial market factors such as equity prices, volatility, and credit spreads. For periods beyond the reasonable and supportable period, Northern Trust reverts to its own historical loss experiences. Allowance for Loans and Leases. The allowance estimation methodology for the collective assessment is primarily based on internally developed loss data specific to the Northern Trust financial asset portfolio from a historical observation period that includes both expansionary and recessionary periods. The estimation methodology and the related qualitative adjustment framework segregate the loan and lease portfolio into homogeneous segments based on similar risk characteristics or risk monitoring methods. Northern Trust utilizes a quantitative probability of default/loss given default approach for the calculation of its credit allowance on a collective basis. For each of the different parameters, specific credit models for the individual loan segments were developed. For each segment, the probability of default and the loss given default are applied to the exposure at default for each projected quarter to determine the quantitative component of the allowance. The quantitative allowance is then reviewed within a qualitative adjustment framework, through which management applies judgment by assessing internal risk factors, potential limitations in the quantitative methodology, and environmental factors that are not fully contemplated in the forecast to compute an adjustment to the quantitative allowance for each segment of the loan portfolio. The allowance related to credit exposure evaluated on an individual basis is determined through an individual evaluation of loans, leases, and lending-related commitments considered impaired that is based on expected future cash flows, the value of collateral, and other factors that may impact the borrower’s ability to pay. For impaired loans for which the amount of allowance, if any, is determined based on the value of the underlying real estate collateral, third-party appraisals are typically obtained and utilized by management. These appraisals are generally less than twelve months old and are subject to adjustments to reflect management’s judgment as to the realizable value of the collateral. Northern Trust analyzes its exposure to credit losses from both on-balance sheet and off-balance sheet activity using a consistent methodology for the quantitative framework as well as the qualitative framework. As of December 31, 2020, for purposes of estimating the allowance for credit losses for undrawn loan commitments and standby letters of credit, the exposure at default includes an estimated drawdown of unused credit based on credit utilization factors, resulting in a proportionate amount of expected credit losses. Allowance for HTM Securities. Debt securities held to maturity classified as U.S. government, government sponsored agency, and certain securities classified as obligations of states and political subdivisions are considered to be guarantees of the U.S. government or an agency of the U.S. government and therefore an allowance for credit losses is not estimated for such investments as the expected probability of non-payment of the amortized cost basis is zero. Debt securities held to maturity classified as other asset-backed represent pools of underlying receivables from which the cash flows are used to pay the bonds that vary in seniority. Utilizing a qualitative estimation approach, the allowance for other asset-backed securities is assessed by evaluating underlying pool performance based on delinquency rates and available credit support. Debt securities held to maturity classified as other relates to investments purchased by Northern Trust to fulfill its obligations under the Community Reinvestment Act (CRA). Northern Trust fulfills its obligations under the CRA by making qualified investments for purposes of supporting institutions and programs that benefit low-to-moderate income communities within Northern Trust’s market area. The allowance for CRA investments is assessed using a qualitative estimation approach primarily based on internal historical performance experience and default history of the underlying CRA portfolios to determine a quantitative component of the allowance. The allowance estimation methodology for all other debt securities held to maturity is developed using a combination of external and internal data. The estimation methodology groups securities with shared characteristics for which the probability of default and the loss given default are applied to the total exposure at default to determine a quantitative component of the allowance. Allowance for Available for Sale Securities. Securities available for sale impairment reviews are conducted quarterly to identify and evaluate securities that have indications of possible credit losses. A determination as to whether a security’s decline in market value is related to credit impairment takes into consideration numerous factors and the relative significance of any single factor can vary by security. Factors Northern Trust considers in determining whether impairment is credit related include, but are not limited to, the severity of the impairment; the cause of the impairment and the financial condition and near-term prospects of the issuer; activity in the market of the issuer, which may indicate adverse credit conditions; Northern Trust’s intent regarding the sale of the security as of the balance sheet date; and the likelihood that Northern Trust will not be required to sell the security for a period of time sufficient to allow for the recovery of the security’s amortized cost basis. For each security meeting the requirements of Northern Trust’s internal screening process, an extensive review is conducted to determine if a credit loss has occurred that is then based on the best estimate of cash flows to be collected from the security, discounted using the security’s effective interest rate. If the present value of the expected cash flows is found to be less than the current amortized cost of the security, an allowance for credit losses is generally recorded equal to the difference between the two amounts, limited to the amount the amortized cost basis exceeds the fair value of the security. Allowance for Other Financial Assets. The allowance for other financial assets consists of the allowance for those other financial assets presented in Cash and Due from Banks, Other Central Bank Deposits, Interest-Bearing Deposits with Banks, Federal Funds Sold, and Other Assets. The Other Assets category includes other miscellaneous credit exposures reported in Other Assets on the consolidated balance sheets. The allowance estimation methodology for other financial assets primarily utilizes a similar approach as used for the debt securities held to maturity portfolio. It consists of a combination of externally and internally developed loss data, adjusted for the appropriate contractual term. Northern Trust’s portfolio is composed mostly of institutions within the “1 to 3” internal borrower rating category and expected to exhibit minimal to modest likelihood of loss. The portion of the allowance assigned to loans and leases, debt securities held to maturity, and other financial assets is presented as a contra asset in Allowance for Credit Losses on the consolidated balance sheets. The portion of the allowance assigned to undrawn loan commitments and standby letters of credit is reported in Other Liabilities on the consolidated balance sheets. The allowance for AFS securities is presented parenthetically with the amortized cost basis of AFS securities on the consolidated balance sheets. The Provision for Credit Losses on the consolidated statements of income represents the change in the Allowance for Credit Losses on the consolidated balance sheets and is the charge to current period earnings. It represents the amount needed to maintain the Allowance for Credit Losses on the consolidated balance sheets at an appropriate level to absorb lifetime expected credit losses related to financial assets in scope. Actual losses may vary from current estimates and the amount of the Provision for Credit Losses may be either greater than or less than actual net charge-offs. Contractual Term. Northern Trust estimates expected credit losses over the contractual term of the financial assets adjusted for prepayments, unless prepayments are not relevant to specific portfolios or sub-portfolios. Extension and renewal options are typically not considered since it is not Northern Trust’s practice to enter into arrangements where the borrower has the unconditional option to renew, or a conditional extension option whereby the conditions are beyond Northern Trust’s control. Accrued Interest. Northern Trust elected not to measure an allowance for credit losses for accrued interest receivables related to its loan and securities portfolios as its policy is to write-off uncollectible accrued interest receivable balances in a timely manner. Accrued interest is written off by reversing interest income during the quarter the financial asset is moved from an accrual to a nonaccrual status. 2019 Allowance for Credit Losses prior to the Adoption of Accounting Standards Update No. 2016-13 Allowance for Loans and Leases under the Previous “Incurred Loss” Model. As of December 31, 2019, the Allowance for Credit Losses represented management’s estimate of probable losses which occurred as of the date of the consolidated financial statements. The loan and lease portfolio and other lending-related credit exposures were regularly reviewed to evaluate the level of the Allowance for Credit Losses. In determining an appropriate allowance level, Northern Trust evaluated the allowance necessary for impaired loans and lending-related commitments and also estimated losses inherent in other lending-related credit exposures. The allowance for credit losses consisted of the following components: Specific Allowance. A loan was considered to be impaired when, based on existing information and events, management determined that it was probable that Northern Trust would be unable to collect all amounts due according to the contractual terms of the loan agreement. Impaired loans were identified through ongoing credit management and risk rating processes, including the formal review of past due and watch list credits. Payment performance and delinquency status were critical factors in identifying impairment for all loans and leases, particularly those within the residential real estate, private client and personal-other classes. Other key factors considered in identifying impairment of loans and leases within the commercial and institutional, lease financing, net, non-U.S., and commercial-other classes related to the borrower’s ability to perform under the terms of the obligation as measured through the assessment of future cash flows, including consideration of collateral value, market value, and other factors. The specific allowance was determined through an individual evaluation of loans and lending-related commitments considered impaired that was based on expected future cash flows, the value of collateral, and other factors that may impact the borrower’s ability to pay. For impaired loans where the amount of specific allowance, if any, was determined based on the value of the underlying real estate collateral, third-party appraisals were typically obtained and utilized by management. These appraisals were generally less than twelve months old and were subject to adjustments to reflect management’s judgment as to the realizable value of the collateral. Inherent Allowance. The inherent allowance estimation methodology was based on internally developed loss data specific to the Northern Trust loan and lease portfolio. The estimation methodology and the related qualitative adjustment framework segregated the loan and lease portfolio into homogeneous segments. For each segment, the probability of default and the loss given default were applied to the total exposure at default to determine a quantitative inherent allowance. The quantitative inherent allowance was then reviewed within the qualitative adjustment framework, where management applied judgment by assessing internal risk factors, potential limitations in the quantitative methodology and environmental factors that were not fully contemplated in the quantitative methodology to compute an adjustment to the quantitative inherent allowance for each segment of the loan portfolio. The results of the inherent allowance estimation methodology were reviewed quarterly by Northern Trust’s Loan Loss Reserve Committee, which included representatives from Credit Risk Management, reporting segment management, and Corporate Finance. Loans, leases, and other extensions of credit deemed uncollectible were charged to the Allowance for Credit Losses. Subsequent recoveries, if any, were credited to the allowance. Northern Trust’s policies relative to the charging-off of uncollectible loans and leases were consistent across both loan and lease segments. Determinations as to whether loan balances for which the collectability was in question were charged-off or a specific reserve was established were based on management’s assessment as to the level of certainty regarding the amount of loss. The Provision for Credit Losses, which was charged to income, was the amount necessary to adjust the allowance for credit losses to the level determined to be appropriate through the above processes. As of December 31, 2019, for purposes of estimating the allowance for credit losses for undrawn loan commitments and standby letters of credit, the exposure at default included an estimated drawdown of unused credit based on a credit conversion factor. The proportionate amount of the quantitative methodology calculation after any required adjustment in the qualitative framework resulted in the required allowance for undrawn loan commitments and standby letters of credit as of the reporting date. The portion of the allowance assigned to loans and leases was reported as a contra asset, directly following loans and leases in the consolidated balance sheets. The portion of the allowance assigned to undrawn loan commitments and standby letters of credit was reported in Other Liabilities on the consolidated balance sheets. Other-Than-Temporary Impairment (OTTI) related to Securities. As of December 31, 2019, a security was considered to be other-than-temporarily impaired if the present value of cash flows expected to be collected was less than the security’s amortized cost basis (the difference being defined as the credit loss) or if the fair value of the security was less than the security’s amortized cost basis and the investor intended, or more-likely-than-not would have been required, to sell the security before recovery of the security’s amortized cost basis. If OTTI existed, the charge to earnings was limited to the amount of credit loss if the investor did not intend to sell the security, and it was more-likely-than-not that it would not have been required to sell the security, before recovery of the security’s amortized cost basis. Any remaining difference between fair value and amortized cost was recognized in AOCI, net of applicable taxes. Otherwise, the entire difference between fair value and amortized cost was charged to earnings. |
Standby Letters of Credit | Standby Letters of Credit. Fees on standby letters of credit are recognized in Other Operating Income on the consolidated statements of income using the straight-line method over the lives of the underlying agreements. Northern Trust’s recorded other liability for standby letters of credit, reflecting the obligation it has undertaken, is measured as the amount of unamortized fees on these instruments. |
Buildings and Equipment | Buildings and Equipment. Buildings and equipment owned are carried at original cost less accumulated depreciation. The charge for depreciation is computed using the straight-line method based on the following range of lives: buildings – up to 30 years; equipment – 3 to 10 years; and leasehold improvements – the shorter of the lease term or 15 years. |
Other Real Estate Owned (OREO) | Other Real Estate Owned (OREO). OREO is comprised of commercial and residential real estate properties acquired in partial or total satisfaction of loans. OREO assets are carried at the lower of cost or fair value less estimated costs to sell and are recorded in Other Assets on the consolidated balance sheets. Fair value is typically based on third-party appraisals. Appraisals of OREO properties are updated on an annual basis and are subject to adjustments to reflect management’s judgment as to the realizable value of the properties. Losses identified during the 90-day period after the acquisition of such properties are charged against the Allowance for Credit Losses assigned to Loans and Leases. Subsequent write-downs that may be required to the carrying value of these assets and gains or losses realized from asset sales are recorded within Other Operating Expense on the consolidated statements of income. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets. Goodwill is not subject to amortization. Separately identifiable acquired intangible assets with finite lives are amortized over their estimated useful lives, primarily on a straight-line basis. Purchased software, software licenses, and allowable internal costs, including compensation relating to software developed for internal use, are capitalized. Software is amortized using the straight-line method over the estimated useful lives of the assets, generally ranging from 3 to 10 years. Fees paid for the use of software services that do not convey a software license are expensed as incurred. Goodwill and other intangible assets are reviewed for impairment on an annual basis or more frequently if events or changes in circumstances indicate the carrying amounts may not be recoverable. |
Trust, Investment and Other Servicing Fees | Trust, Investment and Other Servicing Fees. Trust, investment and other servicing fees are recorded on an accrual basis, over the period in which the service is provided. Fees are primarily a function of the market value of assets custodied, managed and serviced, transaction volumes, and securities lending volume and spreads, as set forth in the underlying client agreement. This revenue recognition involves the use of estimates and assumptions, including components that are calculated based on estimated asset valuations and transaction volumes. |
Client Security Settlement Receivables | Client Security Settlement Receivables. These receivables result from custody client withdrawals from short-term investment funds that settle on the following business day as well as custody client security sales executed under contractual settlement date accounting that have not yet settled. Northern Trust advances cash to the client on the date of either client withdrawal or trade execution and awaits collection from either the short-term investment funds or via the settled trade. |
Income Taxes | Income Taxes. Northern Trust follows an asset and liability approach to account for income taxes. The objective is to recognize the amount of taxes payable or refundable for the current year, and to recognize deferred tax assets and liabilities resulting from temporary differences between the amounts reported in the financial statements and the tax bases of assets and liabilities. The measurement of tax assets and liabilities is based on enacted tax laws and applicable tax rates.Tax positions taken or expected to be taken on a tax return are evaluated based on their likelihood of being sustained upon examination by tax authorities. Only tax positions that are considered more-likely-than-not to be sustained are recorded on the consolidated financial statements. A valuation allowance is established for deferred tax assets if it is more-likely-than-not that all or a portion will not be realized. Northern Trust recognizes any interest and penalties related to unrecognized tax benefits in the Provision for Income Taxes on the consolidated statements of income. |
Cash Flow Statements | Cash Flow Statements. Cash and cash equivalents have been defined as “Cash and Due from Banks” on the consolidated balance sheets. |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits. Northern Trust records the funded status of its defined benefit pension and other postretirement plans on the consolidated balance sheets. Funded pension and postretirement benefits are reported in Other Assets and unfunded pension and postretirement benefits are reported in Other Liabilities on the consolidated balance sheets. Plan assets and benefit obligations are measured annually at December 31. Plan assets are determined based on fair value generally representing observable market prices. The projected benefit obligations are determined based on the present value of projected benefit distributions at an assumed discount rate. Pension costs are recognized ratably over the estimated working lifetime of eligible participants. |
Share-Based Compensation Plans | Share-Based Compensation Plans. Northern Trust recognizes as expense the grant-date fair value of stock and stock unit awards and other share-based compensation granted to employees as Compensation on the consolidated statements of income. The fair values of stock and stock unit awards, including performance stock unit awards and director awards, are based on the closing price of the Corporation’s stock on the date of grant adjusted for certain awards that do not accrue dividends while vesting. The fair value of stock options is estimated on the date of grant using the Black-Scholes option pricing model. The model utilizes weighted-average assumptions regarding the period of time that options granted are expected to be outstanding (expected term) based primarily on the historical exercise behavior attributable to previous option grants, the estimated yield from dividends paid on the Corporation’s stock over the expected term of the options, the historical volatility of Northern Trust’s stock price and the implied volatility of traded options on Northern Trust stock, and a risk free interest rate based on the U.S. Treasury yield curve at the time of grant for a period equal to the expected term of the options granted. Compensation expense for share-based award grants with terms that provide for a graded vesting schedule, whereby portions of the award vest in increments over the requisite service period, are recognized on a straight-line basis over the requisite service period for the entire award. Compensation expense for performance stock unit awards are recognized on a straight-line basis over the requisite service period of the award based on expected achievement of the performance condition. Adjustments are made for employees that meet certain eligibility criteria at the grant date or during the requisite service period. Northern Trust does not include an estimate of future forfeitures in its recognition of share-based compensation expense. Share-based compensation expense is adjusted based on forfeitures as they occur. Dividend equivalents are paid on a current basis for restricted stock units granted prior to February 21, 2017 that are not yet vested. Dividend equivalents are accrued for performance stock unit awards, most restricted stock units granted on or after February 21, 2017 and director awards not yet vested, and are paid upon vesting. Certain restricted stock units granted on or after February 20, 2018 are not entitled to dividend equivalents during the vesting period. Cash flows resulting from the realization of excess tax benefits are classified as operating cash flows on the consolidated statements of cash flows. |
Net Income Per Common Share | Net Income Per Common Share. Basic net income per common share is computed by dividing net income/loss applicable to common stock by the weighted average number of common shares outstanding during each period. Diluted net income per common share is computed by dividing net income applicable to common stock and potential common shares by the aggregate of the weighted average number of common shares outstanding during the period and common share equivalents calculated for stock options outstanding using the treasury stock method. In a period of a net loss, diluted net income per common share is calculated in the same manner as basic net income per common share.Northern Trust has issued certain restricted stock unit awards, which are unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents. These units are considered participating securities. Accordingly, Northern Trust calculates net income applicable to common stock using the two-class method, whereby net income is allocated between common stock and participating securities. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements On January 1, 2020, Northern Trust adopted Accounting Standards Update (ASU) No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13). ASU 2016-13 significantly changed the way impairment of financial instruments is recognized by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of financial instruments. The main provisions of ASU 2016-13 include (1) replacing the “incurred loss” approach under current GAAP with an “expected loss” model for instruments measured at amortized cost, (2) requiring entities to record an allowance for available for sale debt securities rather than reduce the carrying amount of the investments, as is required by the other-than-temporary-impairment model under legacy GAAP, and (3) a simplified accounting model for purchased credit-impaired debt securities and loans. Upon adoption of ASU 2016-13, Northern Trust recorded a $13.7 million increase in the allowance for credit losses with a corresponding cumulative effect adjustment to decrease retained earnings by $10.1 million, net of income taxes, on January 1, 2020. Northern Trust did not restate comparative periods for the effects of applying ASU 2016-13. There was no significant impact to Northern Trust’s consolidated statements of income. Please refer to Note 7 — Allowance for Credit Losses for further information. On January 1, 2020, Northern Trust adopted ASU No. 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (ASU 2017-04). ASU 2017-04 amends the subsequent measurement of goodwill whereby Step 2 from the goodwill impairment test is eliminated. As a result, the goodwill impairment test is performed by comparing the fair value of a reporting unit to its carrying value and an impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. Upon adoption of ASU 2017-04, there was no significant impact to Northern Trust’s consolidated balance sheets or consolidated statements of income. On January 1, 2020, Northern Trust adopted ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” (ASU 2018-13). The primary objective of ASU 2018-13 is to improve the effectiveness of disclosures in the notes to financial statements. Upon adoption of ASU 2018-13, there was no significant impact to Northern Trust’s consolidated balance sheets or consolidated statements of income. On January 1, 2020, Northern Trust adopted ASU No. 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)” (ASU 2018-15). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). Upon adoption of ASU 2018-15, there was no significant impact to Northern Trust’s consolidated balance sheets or consolidated statements of income. On January 1, 2020, Northern Trust adopted ASU No. 2018-17, “Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities” (ASU 2018-17). ASU 2018-17 requires that indirect interests held through related parties in common control arrangements be considered on a proportional basis (rather than as the equivalent of a direct interest in its entirety) for determining whether fees paid to decision makers and service providers are variable interests. Upon adoption of ASU 2018-17, there was no significant impact to Northern Trust’s consolidated balance sheets or consolidated statements of income. On April 1, 2020, Northern Trust adopted ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (ASU 2020-04). The global transition toward alternative reference rates and away from referencing the London Interbank Offered Rate (LIBOR) and other interbank offered rates (Reference Rate Reform) is expected to have a significant impact on the volume of contract modifications, hedge accounting, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of Reference Rate Reform. ASU 2020-04 provides temporary optional expedients and exceptions for applying GAAP to contract modifications, hedging relationships, and other transactions affected by Reference Rate Reform if certain criteria are met. The main provisions of ASU 2020-04 provide the following optional expedients: (1) simplification of the accounting evaluations under current GAAP for contract modifications, including loan, debt, lease and other contracts with potential embedded derivatives, if qualifying criteria are met (2) preservation of hedging relationships without dedesignation upon certain changes to the critical terms of an existing hedging relationship due to Reference Rate Reform and other optional hedge accounting relief provisions and (3) a one-time election to sell or transfer, or both sell and transfer, debt securities classified as held to maturity that reference a rate affected by Reference Rate Reform and are classified as held to maturity before January 1, 2020. The optional expedients in ASU 2020-04 for contract modifications and hedging relationships are applied prospectively, while the one-time election to sell or transfer, or both sell and transfer debt securities classified as held to maturity may be made at any time after March 12, 2020. The optional expedients and exceptions provided by ASU 2020-04 do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022 for which an entity has elected certain optional expedients and which are retained through the end of the hedging relationship. Upon adoption of ASU 2020-04, there was no significant impact on Northern Trust’s consolidated balance sheets or consolidated statements of income. Northern Trust expects to elect the optional expedients provided in ASU 2020-04 and does not expect a significant impact on Northern Trust’s consolidated balance sheets or consolidated statements of income as a result of electing such expedients. On January 7, 2021, Northern Trust retrospectively adopted ASU No. 2021-01, “Reference Rate Reform (Topic 848): Scope” (ASU 2021-01). ASU 2021-01 clarifies the scope of Topic 848 to explicitly include those derivative instruments affected by changes in interest rates used for margining, discounting, or contract price alignment as eligible for certain optional expedients and exceptions in Topic 848. Upon adoption of ASU 2021-01, Northern Trust elected the expedients provided in Topic 848 with no significant impact on Northern Trust’s consolidated balance sheets or consolidated statements of income. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Valuation Techniques, Significant Unobservable Inputs, and Quantitative Information | The following table presents the fair values of Northern Trust’s Level 3 liabilities as of December 31, 2020 and 2019, as well as the valuation techniques, significant unobservable inputs, and quantitative information used to develop significant unobservable inputs for such liabilities as of such dates. TABLE 55: LEVEL 3 SIGNIFICANT UNOBSERVABLE INPUTS 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 (1) Weighted average of expected duration based on scenario probability. 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 (1) Weighted average of expected duration based on scenario probability. The following table presents the fair values of Northern Trust’s Level 3 assets that were measured at fair value on a nonrecurring basis as of December 31, 2020 and 2019, as well as the valuation technique, significant unobservable inputs, and quantitative information used to develop the significant unobservable inputs for such assets as of such dates. TABLE 58: LEVEL 3 NONRECURRING BASIS SIGNIFICANT UNOBSERVABLE INPUTS DECEMBER 31, 2020 FINANCIAL INSTRUMENT FAIR VALUE (1) VALUATION 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% (1) Includes real estate collateral-based loans and other collateral-based loans. DECEMBER 31, 2019 FINANCIAL INSTRUMENT FAIR VALUE (1) VALUATION 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% (1) Includes real estate collateral-based loans and other collateral-based loans. |
Assets and Liabilities Measured at Fair Value on Recurring Basis Segregated by Fair Value Hierarchy Level | The following presents assets and liabilities measured at fair value on a recurring basis as of December 31, 2020 and 2019, segregated by fair value hierarchy level. TABLE 56: RECURRING BASIS HIERARCHY LEVELING DECEMBER 31, 2020 (In Millions) LEVEL 1 LEVEL 2 LEVEL 3 NETTING ASSETS/ 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 Note: Northern Trust has elected to net derivative assets and liabilities when legally enforceable master netting arrangements or similar agreements exist between Northern Trust and the counterparty. As of December 31, 2020, derivative assets and liabilities shown above also include reductions of $1,867.8 million and $1,177.2 million, respectively, as a result of cash collateral received from and deposited with derivative counterparties. (1) This line consists of swaps related to the sale of certain Visa Class B common shares. DECEMBER 31, 2019 (In Millions) LEVEL 1 LEVEL 2 LEVEL 3 NETTING ASSETS/ 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 Note: Northern Trust has elected to net derivative assets and liabilities when legally enforceable master netting arrangements or similar agreements exist between Northern Trust and the counterparty. As of December 31, 2019, derivative assets and liabilities shown above also include reductions of $1,136.8 million and $417.2 million, respectively, as a result of cash collateral received from and deposited with derivative counterparties. (1) This line consists of swaps related to the sale of certain Visa Class B common shares. |
Changes in Level 3 Assets | The following table presents the changes in Level 3 liabilities for the years ended December 31, 2020 and 2019. TABLE 57: CHANGES IN LEVEL 3 LIABILITIES LEVEL 3 LIABILITIES SWAPS RELATED TO SALE OF CERTAIN VISA CLASS B (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 (1) Gains (losses) are recorded in Other Operating Income on the consolidated statements of income. |
Changes in Level 3 Liabilities | The following table presents the changes in Level 3 liabilities for the years ended December 31, 2020 and 2019. TABLE 57: CHANGES IN LEVEL 3 LIABILITIES LEVEL 3 LIABILITIES SWAPS RELATED TO SALE OF CERTAIN VISA CLASS B (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 (1) Gains (losses) are recorded in Other Operating Income on the consolidated statements of income. |
Book and Fair Values of All Financial Instruments | The following tables summarize the fair values of all financial instruments. TABLE 59: FAIR VALUE OF FINANCIAL INSTRUMENTS DECEMBER 31, 2020 FAIR VALUE (In Millions) BOOK VALUE TOTAL 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 — (1) Refer to the table located on page 105 for the disaggregation of available for sale debt securities. (2) This line consists of swaps related to the sale of certain Visa Class B common shares. DECEMBER 31, 2019 FAIR VALUE (In Millions) BOOK VALUE TOTAL 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 — (1) Refer to the table located on page 106 for the disaggregation of available for sale debt securities. (3) This line consists of swaps related to the sale of certain Visa Class B common shares. |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Reconciliation of Amortized Cost to Fair Value of Securities Available for Sale | The following tables provide the amortized cost, fair values, and remaining maturities of debt securities available for sale. TABLE 60: RECONCILIATION OF AMORTIZED COST TO FAIR VALUE OF DEBT SECURITIES AVAILABLE FOR SALE DECEMBER 31, 2020 (In Millions) AMORTIZED GROSS GROSS FAIR 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 GROSS GROSS FAIR 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 |
Remaining Maturity of Securities | 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 Note: Mortgage-backed and asset-backed securities are included in the above table taking into account anticipated future prepayments. 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 Note: Mortgage-backed and asset-backed securities are included in the above table taking into account anticipated future prepayments. |
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value | The following table provides information regarding debt securities available for sale with no credit losses reported that had been in a continuous unrealized loss position for less than twelve months and for twelve months or longer as of December 31, 2020 and 2019. TABLE 62: DEBT SECURITIES AVAILABLE FOR SALE IN UNREALIZED LOSS POSITION WITH NO CREDIT LOSSES REPORTED AS OF DECEMBER 31, 2020 LESS THAN 12 MONTHS 12 MONTHS OR LONGER TOTAL (In Millions) FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED 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 UNREALIZED FAIR UNREALIZED FAIR UNREALIZED 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 |
Reconciliation of Amortized Cost to Fair Values of Securities Held to Maturity | The following tables provide the amortized cost, fair values and remaining maturities of debt securities held to maturity. TABLE 63: RECONCILIATION OF AMORTIZED COST TO FAIR VALUES OF DEBT SECURITIES HELD TO MATURITY DECEMBER 31, 2020 (In Millions) AMORTIZED GROSS GROSS FAIR 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 GROSS GROSS FAIR 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 |
Debt Securities, Held-to-maturity, Credit Quality Indicator | The following table provides the amortized cost of debt securities held to maturity by credit rating. TABLE 65: AMORTIZED COST OF DEBT SECURITIES HELD TO MATURITY BY CREDIT RATING 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 % |
Schedule of Realized Gain (Loss) | TABLE 66: INVESTMENT SECURITY GAINS AND LOSSES 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) (1) Other-than-temporary impairment losses relate to certain Community Reinvestment Act (CRA) eligible held to maturity debt securities. |
Securities Purchased Under Ag_2
Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Purchased under Agreements to Resell | ($ 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 |
Securities Sold under Agreements to Repurchase | ($ 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 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | 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 — — |
Loans and Leases (Tables)
Loans and Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Amounts Outstanding for Loans and Leases by Segment and Class | TABLE 70: LOANS AND LEASES 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 |
Components of Net Investment in Direct Finance and Leveraged Leases | The components of the net investment in direct finance and leveraged leases are as follows: TABLE 71: DIRECT FINANCE AND LEVERAGED LEASES 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 |
Loan and Lease Segment and Class Balances Segregated by Borrower Ratings into "1 to 3", "4 to 5" and "6 to 9" (Watch List) Categories | TABLE 72: CREDIT QUALITY INDICATOR AT AMORTIZED COST BASIS BY ORIGINATION YEAR 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 |
Impaired Loans By Segment and Class | The following table provides balances and delinquency status of accrual and nonaccrual loans and leases by segment and class, as well as the other real estate owned and nonaccrual asset balances, as of December 31, 2020 and 2019. TABLE 73: DELINQUENCY STATUS ACCRUAL NONACCRUAL WITH NO ALLOWANCE (In Millions) CURRENT 30 – 59 DAYS 60 – 89 DAYS 90 DAYS TOTAL ACCRUAL NONACCRUAL TOTAL LOANS December 31, 2020 Commercial Commercial and Institutional $ 9,877.0 $ 153.7 $ 1.2 $ — $ 10,031.9 $ 26.4 $ 10,058.3 $ 9.1 Commercial Real Estate 3,516.2 2.0 — — 3,518.2 40.2 3,558.4 32.3 Non-U.S. 1,345.7 — — — 1,345.7 — 1,345.7 — Lease Financing, net 11.4 — — — 11.4 — 11.4 — Other 288.2 — — — 288.2 — 288.2 — Total Commercial 15,038.5 155.7 1.2 — 15,195.4 66.6 15,262.0 41.4 Personal Private Client 11,765.4 29.1 9.9 7.8 11,812.2 2.9 11,815.1 2.9 Residential Real Estate 5,946.0 23.5 2.9 1.1 5,973.5 62.2 6,035.7 53.8 Non-U.S. 596.7 1.2 — — 597.9 — 597.9 — Other 49.0 — — — 49.0 — 49.0 — Total Personal 18,357.1 53.8 12.8 8.9 18,432.6 65.1 18,497.7 56.7 Total Loans and Leases $ 33,395.6 $ 209.5 $ 14.0 $ 8.9 $ 33,628.0 $ 131.7 $ 33,759.7 $ 98.1 Other Real Estate Owned $ 0.7 Total Nonaccrual Assets $ 132.4 ACCRUAL NONACCRUAL WITH NO ALLOWANCE (In Millions) CURRENT 30 – 59 DAYS 60 – 89 DAYS 90 DAYS TOTAL ACCRUAL NONACCRUAL TOTAL LOANS 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 |
Number of Loans and Leases Modified in TDRs and Total Recorded Investments and Unpaid Principal Balances | The following table provides, by segment and class, the number of TDR modifications of loans and leases during the years ended December 31, 2020, and 2019, and the recorded investments and unpaid principal balances as of December 31, 2020 and 2019. TABLE 74: TROUBLED DEBT RESTRUCTURINGS ($ In Millions) NUMBER OF RECORDED UNPAID 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 Note: Period-end balances reflect all paydowns and charge-offs during the year. ($ In Millions) NUMBER OF RECORDED UNPAID 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 Note: Period-end balances reflect all paydowns and charge-offs during the year. |
Schedule Of Non-Troubled Debt Restructuring Modifications | The following tables provide, by segment and class, the number of total COVID-19-related loan modifications including the loan volume and deferred principal and interest balances as of December 31, 2020, for which Northern Trust applied an exemption from TDR classification that are in active deferral (loans currently in the deferral period) or completed deferral (loans that returned to their regular payment schedule). TABLE 75: COVID-19 LOAN MODIFICATIONS NOT CONSIDERED TDRS IN ACTIVE DEFERRAL STATUS 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 TABLE 76: COVID-19 LOAN MODIFICATIONS NOT CONSIDERED TDRS THAT HAVE COMPLETED DEFERRAL 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 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Allowances for Credit Losses and Recorded Investments in Loans and Leases by Segment | The following table provides information regarding changes in the total allowance for credit losses. TABLE 77: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES 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 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 TABLE 78: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES RELATED TO LOANS AND LEASES 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 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 The following table provides information regarding the recorded investments in loans and leases and the allowance for credit losses for loans and leases and undrawn loan commitments and standby letters of credit by segment as of December 31, 2020 and 2019. TABLE 79: RECORDED INVESTMENTS IN LOANS AND LEASES 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 |
Debt Securities, Held-to-maturity, Allowance for Credit Loss | The following table provides information regarding changes in the total allowance for credit losses for debt securities held to maturity during 2020. TABLE 80: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES RELATED TO DEBT SECURITIES HELD TO MATURITY 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 |
Schedule of Accrued Interest | The following table provides the amount of accrued interest excluded from the amortized cost basis of the following portfolios. TABLE 81: ACCRUED INTEREST (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 |
Concentrations of Credit Risk (
Concentrations of Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Commercial Real Estate Loan Types | The table below provides additional detail regarding commercial real estate loan types. During the first quarter of 2020, the Corporation implemented a change in the classification of certain loans and leases to specific segments to enhance the consistency of its reporting across various regulatory regimes. As a result, commercial real estate balances as of December 31, 2019 below have been adjusted to conform to the presentation for periods ended after such date. The adjustments generally reflect reclassification of loans from the commercial real estate class to commercial and institutional, residential real estate, and private client classes. There was no impact on total Loans and Leases previously reported. TABLE 82: COMMERCIAL REAL ESTATE LOANS 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 |
Buildings and Equipment (Tables
Buildings and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of Buildings and Equipment | A summary of Buildings and Equipment is presented in the following table. TABLE 83: BUILDINGS AND EQUIPMENT DECEMBER 31, 2020 (In Millions) ORIGINAL ACCUMULATED NET BOOK 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 ACCUMULATED NET BOOK 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 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lease Cost Components | The components of lease costs for the years ended December 31, 2020 and 2019 were as follows. TABLE 84: LEASE COST COMPONENTS (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 The following table provides supplemental cash flow information related to leases for the years ended December 31, 2020 and 2019. TABLE 88: SUPPLEMENTAL CASH FLOW INFORMATION (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 |
Maturity of Lease Liability | The following table presents a maturity analysis of lease liabilities as of December 31, 2020. TABLE 85: MATURITY OF LEASE LIABILITIES (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 |
Leases | The location and amount of ROU assets and lease liabilities recorded on the consolidated balance sheets as of December 31, 2020 and 2019 are presented in the following table. TABLE 86: LOCATION AND AMOUNT OF LEASE ASSETS AND LIABILITIES (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 The weighted-average remaining lease term and weighted-average discount rate applied to leases as of December 31, 2020 and 2019 were as follows: TABLE 87: WEIGHTED-AVERAGE REMAINING LEASE TERM AND DISCOUNT RATE 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 % |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes by Reporting Segment in Carrying Amounts of Goodwill, including Effect of Foreign Exchange Rates on Non-U.S.-Dollar-Denominated Balances | Changes by reporting segment in the carrying amount of Goodwill for the years ended December 31, 2020 and 2019, including the effect of foreign exchange rates on non-U.S. dollar denominated balances, were as follows. TABLE 89: GOODWILL (In Millions) CORPORATE & INSTITUTIONAL WEALTH 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 |
Other Intangible Assets Subject to Amortization | The gross carrying amount and accumulated amortization of other intangible assets subject to amortization as of December 31, 2020 and 2019 were as follows. TABLE 90: OTHER INTANGIBLE ASSETS 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 TABLE 91: CAPITALIZED SOFTWARE 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 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Banking And Thrift, Time Deposits [Abstract] | |
Time Deposit Maturities | The following table provides the scheduled maturity of total time deposits in denominations of $250,000 or greater at December 31, 2020. TABLE 92: REMAINING MATURITY OF TIME DEPOSITS $250,000 OR MORE 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 |
Senior Notes and Long-Term De_2
Senior Notes and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Senior Notes Outstanding | A summary of Senior Notes outstanding at December 31, 2020 and 2019 is presented in the following table. TABLE 93: SENIOR NOTES 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 (1) As of December 31, 2020, debt issuance costs of $3.4 million are included as a direct deduction from the carrying amount and amortized on a straight-line basis over the life of the Note. (2) Not redeemable prior to maturity. (3) Redeemable within three months of maturity. (4) Interest rate swap contracts were entered into to modify the interest expense from fixed rates to floating rates. The swaps are recorded as fair value hedges and increases in the carrying values of senior notes outstanding of $130.7 million and $77.1 million were recorded as of December 31, 2020 and 2019, respectively. See further detail in Note 27, “Derivative Financial Instruments.” |
Summary of Long-Term Debt Outstanding | A summary of Long-Term Debt outstanding at December 31, 2020 and 2019 is presented in the following table. TABLE 94: LONG-TERM DEBT DECEMBER 31, ($ 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 (1) As of December 31, 2020, debt issuance costs of $1.1 million are included as a direct deduction from the carrying amount and amortized on a straight-line basis over the life of the Note. (2) Not redeemable prior to maturity. (3) Interest rate swap contracts were entered into to modify the interest expense from fixed rates to floating rates. The swaps are recorded as fair value hedges and increases in the carrying values of the subordinated notes outstanding of $90.8 million and $49.8 million were recorded as of December 31, 2020 and 2019, respectively. See further detail in Note 27, “Derivative Financial Instruments.” |
Floating Rate Capital Debt (Tab
Floating Rate Capital Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Brokers and Dealers [Abstract] | |
Summary of Book Values of Outstanding Subordinated Debentures | The following table summarizes the book values of the outstanding subordinated debentures as of December 31, 2020 and 2019. TABLE 95: SUBORDINATED DEBENTURES 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 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Analysis of Changes in Number of Shares of Common Stock Outstanding | An analysis of changes in the number of shares of common stock outstanding follows: TABLE 96: SHARES OF COMMON STOCK 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 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The following tables summarize the components of Accumulated Other Comprehensive Income (Loss) (AOCI) at December 31, 2020, 2019, and 2018, and changes during the years then ended. TABLE 97: SUMMARY OF CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (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 (1) Includes net unrealized gains (losses) on debt securities transferred from available for sale to held to maturity during the years ended December 31, 2020, 2019, and 2018. |
Components of Changes in Accumulated Other Comprehensive Income (Loss) | FOR THE YEAR ENDED DECEMBER 31, 2020 2019 2018 (In Millions) BEFORE TAX AFTER BEFORE TAX AFTER BEFORE TAX AFTER 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) (1) The before-tax reclassification adjustment out of AOCI related to the realized gains (losses) on debt securities available for sale is recorded in Investment Security Gains (Losses), net on the consolidated statements of income. (2) See Note 27, "Derivative Financial Instruments" for the location of the reclassification adjustment related to cash flow hedges. (3) The before-tax reclassification adjustment out of AOCI related to pension and other postretirement benefit adjustments is recorded in Employee Benefits expense on the consolidated statements of income. |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computations of Net Income per Common Share | The computations of net income per common share are presented in the following table. TABLE 99: NET INCOME PER COMMON SHARE 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 |
Revenue from Contracts with C_2
Revenue from Contracts with Clients Revenue from Contracts with Clients (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Disaggregation | The following table presents revenues disaggregated by major revenue source. TABLE 100: REVENUE DISAGGREGATION 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 |
Client Receivables | The following table represents receivables balances from contracts with clients, which are included in Other Assets on the consolidated balance sheets, at December 31, 2020 and 2019. TABLE 101: CLIENT RECEIVABLES 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 (1) Trust Fees Receivable is net of a $7.2 million and $5.6 million fee receivable allowance as of December 31, 2020 and 2019, respectively. |
Net Interest Income (Tables)
Net Interest Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Banking and Thrift, Interest [Abstract] | |
Components of Net Interest Income | The components of Net Interest Income were as follows: TABLE 102: NET INTEREST INCOME 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 (1) Non-Taxable Securities represent securities that are exempt from U.S. federal income taxes. (2) Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets. |
Other Operating Income (Tables)
Other Operating Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Components of Other Operating Income | The components of Other Operating Income were as follows: TABLE 103: OTHER OPERATING INCOME 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 |
Other Operating Expense (Tables
Other Operating Expense (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Summary of other operating expenses | The components of Other Operating Expense were as follows: TABLE 104: OTHER OPERATING EXPENSE 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 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Total Provision for Income Taxes with Amounts Computed at Federal Tax Rate of 35% | The following table reconciles the statutory federal tax rate with the effective tax rate for the periods presented below. TABLE 105: INCOME TAXES 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 % |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows. TABLE 106: UNRECOGNIZED TAX BENEFITS (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 |
Components of Consolidated Provision for Income Taxes | The components of the consolidated Provision for Income Taxes for each of the three years ended December 31 are as follows. TABLE 107: PROVISION FOR INCOME TAXES 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 |
Tax Charges (Benefits) Recorded Directly to Stockholders' Equity | In addition to the amounts shown above, tax charges and benefits have been recorded directly to Stockholders’ Equity for the following. TABLE 108: TAX CHARGES AND BENEFITS RECORDED DIRECTLY TO STOCKHOLDERS’ EQUITY FOR THE YEAR ENDED DECEMBER 31, (In Millions) 2020 2019 2018 Tax Effect of Other Comprehensive Income $ 168.1 $ 88.9 $ 25.7 |
Deferred Tax Liabilities and Assets | Deferred tax assets and liabilities have been computed as follows. TABLE 109: NET DEFERRED TAX LIABILITIES 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 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Plan Status of U.S. Plan, Non-U.S. Plans and Supplemental Plan | The following tables set forth the status, amounts included in AOCI, and net periodic pension expense of the U.S. Qualified Plan, Non-U.S. Pension Plans, and U.S. Non-Qualified Plan for 2020, 2019, and 2018. Prior service costs are being amortized on a straight-line basis over 11 years for the U.S. Qualified Plan and 10 years for the U.S. Non-Qualified Plan of which approximately one year was remaining as of December 31, 2020 for both the U.S. Qualified Plan and the U.S. Non-Qualified Plan. TABLE 110: EMPLOYEE BENEFIT PLAN STATUS U.S. QUALIFIED PLAN NON-U.S. PENSION PLANS U.S. NON-QUALIFIED PLAN ($ In Millions) 2020 2019 2020 2019 2020 2019 Accumulated Benefit Obligation $ 1,312.9 $ 1,181.9 $ 228.5 $ 204.7 $ 139.8 $ 131.5 Projected Benefit Obligation $ 1,470.6 $ 1,323.4 $ 236.1 $ 211.1 $ 162.3 $ 149.2 Plan Assets at Fair Value 1,793.7 1,601.2 211.5 190.1 — — Funded Status at December 31 $ 323.1 $ 277.8 $ (24.6) $ (21.0) $ (162.3) $ (149.2) Weighted-Average Assumptions: Discount Rates 2.75 % 3.37 % 0.93 % 1.40 % 2.45 % 3.37 % Rate of Increase in Compensation Level 4.97 4.97 1.50 1.50 4.97 4.97 Expected Long-Term Rate of Return on Assets 5.25 5.25 1.28 1.72 N/A N/A The following tables set forth the postretirement health care plan status and amounts included in AOCI at December 31, 2020 and 2019, the net periodic postretirement benefit cost of the plan for 2020 and 2019, and the change in the accumulated postretirement benefit obligation during 2020 and 2019. TABLE 117: POSTRETIREMENT HEALTH CARE PLAN STATUS 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 |
Amount Included in Accumulated Other Comprehensive Income | 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 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) |
Components of Company's Net Periodic Benefit Cost | 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 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 |
Change in Benefit Obligation, Postretirement Health Care, and in Accumulated Postretirement Benefit Obligation | 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 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 |
Estimated Future Benefit Payments | (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 (In Millions) TOTAL 2021 $ 1.7 2022 1.5 2023 1.4 2024 1.3 2025 1.2 2026-2030 5.1 |
Change in Plan Assets | 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 |
Fair Values of U.S. Pension Plan Assets by Major Asset Category, and their Level within Fair Value Hierarchy | The following table presents the fair values of Northern Trust’s U.S. Qualified Plan assets, by major asset category, and their level within the fair value hierarchy defined by GAAP as of December 31, 2020 and 2019. TABLE 116: FAIR VALUE OF U.S. QUALIFIED PLAN ASSETS 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 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 |
Changes in Level 3 U.S. Pension Plan Assets |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation Expense for Share-Based Payment Arrangements and Associated Tax Impacts | Total compensation expense for share-based payment arrangements to employees and the associated tax impacts were as follows for the periods presented. TABLE 122: TOTAL COMPENSATION EXPENSE FOR SHARE-BASED PAYMENT ARRANGEMENTS TO EMPLOYEES 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 |
Information Pertaining to Stock Options Granted, Vested and Exercised | The following table provides information about stock options granted, vested, and exercised in the years ended December 31, 2020, 2019, and 2018. TABLE 123: STOCK OPTIONS GRANTED, VESTED, AND EXERCISED 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 |
Summary of Status of Stock Options | A summary of the status of stock options at December 31, 2020, and changes during the year then ended, are presented in the following table. TABLE 125: STATUS OF STOCK OPTIONS AND CHANGES ($ 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 |
Unvested Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Changes in Nonvested Stock | The following is a summary of changes in nonvested stock options for the year ended December 31, 2020. TABLE 124: CHANGES IN NONVESTED STOCK OPTIONS NONVESTED OPTIONS SHARES WEIGHTED- AVERAGE GRANT-DATE 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 |
Restricted Stock Unit Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Status of Outstanding Restricted Stock Unit Awards | A summary of the status of outstanding restricted stock unit awards at December 31, 2020, and changes during the year then ended, is presented in the following table. TABLE 126: OUTSTANDING RESTRICTED STOCK UNIT AWARDS ($ 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 |
Changes in Nonvested Restricted Stock Unit Awards | The following is a summary of nonvested restricted stock unit awards at December 31, 2020, and changes during the year then ended. TABLE 127: NONVESTED RESTRICTED STOCK UNIT AWARDS NONVESTED RESTRICTED 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 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Summary of Off-Balance Sheet Financial Instruments | The following table provides details of Northern Trust's off-balance sheet financial instruments as of December 31, 2020 and 2019. TABLE 128: SUMMARY OF OFF-BALANCE SHEET FINANCIAL INSTRUMENTS 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 (1) These amounts exclude $384.7 million and $243.6 million of commitments participated to others at December 31, 2020 and 2019, respectively. (2) These amounts include $24.2 million and $44.5 million of standby letters of credit secured by cash deposits or participated to others as of December 31, 2020 and 2019, respectively. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional and Fair Value Amounts of Client-related and Trading Derivative Financial Instruments | The following table shows the notional and fair values of all derivative financial instruments as of December 31, 2020 and 2019. TABLE 129: NOTIONAL AND FAIR VALUES OF DERIVATIVE FINANCIAL INSTRUMENTS DECEMBER 31, 2020 DECEMBER 31, 2019 FAIR VALUE FAIR VALUE (In Millions) NOTIONAL ASSET (1) LIABILITY (2) NOTIONAL 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 (1) Derivative assets are reported in Other Assets on the consolidated balance sheets. (2) Derivative liabilities are reported in Other Liabilities on the consolidated balance sheets. (3) This line includes swaps related to sales of certain Visa Class B common shares. (4) See further detail in Note 28, "Offsetting of Assets and Liabilities." |
Gains/Losses of Derivative Financial Instruments | The following table provides fair value and cash flow hedge derivative gains and losses recognized in income during the years ended December 31, 2020, 2019 and 2018. TABLE 130: LOCATION AND AMOUNT OF FAIR VALUE AND CASH FLOW HEDGE DERIVATIVE GAINS AND LOSSES RECORDED IN INCOME (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 The following table provides the impact of fair value hedge accounting on the carrying value of the designated hedged items as of December 31, 2020 and 2019. TABLE 131: HEDGED ITEMS IN FAIR VALUE HEDGES 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 (1) The cumulative hedge accounting basis adjustment includes $10.4 million related to discontinued hedging relationships of available for sale debt securities as of December 31, 2020. There are no amounts related to discontinued hedging relationships in the cumulative hedge accounting basis adjustment of senior notes and long-term debt as of December 31, 2020. (2) The cumulative hedge accounting basis adjustment includes $1.5 million related to discontinued hedging relationships of available for sale debt securities as of December 31, 2019. There were no amounts related to discontinued hedging relationships in the cumulative hedge accounting basis adjustment of senior notes and long-term debt as of December 31, 2019. (3) Carrying value represents amortized cost. |
Gains/Losses of Derivative Financial Instruments Not Designated as Hedging | The following table provides the location and amount of gains and losses recorded on the consolidated statements of income for the years ended December 31, 2020, 2019, and 2018 for derivative instruments not designated as hedges under GAAP. TABLE 132: LOCATION AND AMOUNT OF GAINS AND LOSSES RECORDED IN INCOME FOR DERIVATIVES NOT DESIGNATED AS HEDGING UNDER GAAP (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 (1) This line includes swaps related to the sale of certain Visa Class B common shares and total return swap contracts. |
Offsetting of Assets and Liab_2
Offsetting of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Securities Purchased Under Agreements to Resell and Derivative Assets in the Consolidated Balance Sheet | The following table provides information regarding the offsetting of derivative assets and of securities purchased under agreements to resell within the consolidated balance sheets as of December 31, 2020 and 2019. TABLE 133: OFFSETTING OF DERIVATIVE ASSETS AND SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL DECEMBER 31, 2020 (In Millions) GROSS 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 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 $ — (1) Derivative assets are reported in Other Assets on the consolidated balance sheets. Other Assets (excluding derivative assets) totaled $7.3 billion and $7.4 billion as of December 31, 2020 and 2019, respectively. (2) Including cash collateral received from counterparties. (3) Northern Trust did not possess any cash collateral that was not offset on the consolidated balance sheets that could have been used to offset the net amounts presented on the consolidated balance sheets as of December 31, 2020 and 2019. |
Securities Sold Under Agreements to Repurchase and Derivative Liabilities in the Consolidated Balance Sheet | The following table provides information regarding the offsetting of derivative liabilities and of securities sold under agreements to repurchase within the consolidated balance sheets as of December 31, 2020 and 2019. TABLE 134: OFFSETTING OF DERIVATIVE LIABILITIES AND SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE DECEMBER 31, 2020 (In Millions) GROSS 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 GROSS AMOUNTS OFFSET IN THE BALANCE SHEET (2) NET AMOUNTS PRESENTED IN THE BALANCE SHEET GROSS AMOUNTS NOT OFFSET IN THE BALANCE SHEET NET (3) Derivative Liabilities (1) Foreign Exchange Contracts OTC $ 2,181.6 $ 1,548.6 $ 633.0 $ 0.1 $ 632.9 Interest Rate Swaps OTC 96.7 57.3 39.4 — 39.4 Interest Rate Swaps Exchange Cleared 0.7 — 0.7 — 0.7 Other Financial Derivatives 33.4 12.5 20.9 — 20.9 Total Derivatives Subject to a Master Netting Arrangement 2,312.4 1,618.4 694.0 0.1 693.9 Total Derivatives Not Subject to a Master Netting Arrangement 1,000.6 — 1,000.6 — 1,000.6 Total Derivatives 3,313.0 1,618.4 1,694.6 0.1 1,694.5 Securities Sold under Agreements to Repurchase $ 489.7 $ — $ 489.7 $ 489.7 $ — (1) Derivative liabilities are reported in Other Liabilities on the consolidated balance sheets. Other Liabilities (excluding derivative liabilities) totaled $3.5 billion and $3.1 billion as of December 31, 2020 and 2019, respectively. (2) Including cash collateral deposited with counterparties. (3) Northern Trust did not place any cash collateral with counterparties that was not offset on the consolidated balance sheets that could have been used to offset the net amounts presented on the consolidated balance sheets as of December 31, 2020 and 2019. |
Pledged and Restricted Assets (
Pledged and Restricted Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments Owned and Pledged as Collateral [Abstract] | |
Type of Pledged Assets | The following table presents Northern Trust’s pledged assets. TABLE 135: TYPE OF PLEDGED ASSETS 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 TABLE 136: FAIR VALUE OF AVAILABLE FOR SALE DEBT SECURITIES INCLUDED IN PLEDGED ASSETS 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 |
Accepted Collateral | The following table presents the fair value of securities accepted as collateral. There was no repledged or sold collateral at December 31, 2020 or 2019. TABLE 137: ACCEPTED COLLATERAL 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 — |
Reporting Segments and Relate_2
Reporting Segments and Related Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Earnings Contribution of Northern Trust's Reporting Segments | The following tables reflect the earnings contribution and average assets of Northern Trust’s reporting segments for the years ended December 31, 2020, 2019, and 2018. TABLE 138: CORPORATE & INSTITUTIONAL SERVICES RESULTS OF OPERATIONS 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 (1) Non-GAAP financial measures stated on an FTE basis. TABLE 139: WEALTH MANAGEMENT RESULTS OF OPERATIONS 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 (1) Non-GAAP financial measures stated on an FTE basis. TABLE 140: TREASURY AND OTHER RESULTS OF OPERATIONS 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 (1) Non-GAAP financial measures stated on an FTE basis. TABLE 141: CONSOLIDATED FINANCIAL INFORMATION 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 (1) Non-GAAP financial measures stated on an FTE basis. The consolidated figures include $34.4 million, $32.8 million, and $41.2 million, of FTE adjustments for 2020, 2019, and 2018, respectively. |
Distribution of Total Assets and Operating Performance | The following table summarizes Northern Trust’s performance based on the allocation process described above without regard to guarantors or the location of collateral. TABLE 142: DISTRIBUTION OF TOTAL ASSETS AND OPERATING PERFORMANCE (In Millions) TOTAL ASSETS TOTAL REVENUE (1) INCOME BEFORE 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 (1) Total revenue is comprised of net interest income and noninterest income. |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Regulatory Capital Requirements Abstract [Abstract] | |
Risk-Based Capital Amounts and Ratios for Northern Trust on Consolidated Basis and for Bank | The following table provides capital ratios for the Corporation and the Bank determined by Basel III phased in requirements. TABLE 143: RISK-BASED AND LEVERAGE CAPITAL AMOUNTS AND RATIOS DECEMBER 31, 2020 DECEMBER 31, 2019 ($ In Millions) STANDARDIZED APPROACH ADVANCED APPROACH STANDARDIZED APPROACH ADVANCED 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 (1) In November 2019, the Federal Reserve and other U.S. federal banking agencies adopted a final rule that established a deduction for central bank deposits from the total leverage exposures of custodial banking organizations, including Northern Trust Corporation and The Northern Trust Company, equal to the lesser of (i) the total amount of funds the custodial banking organization and its consolidated subsidiaries have on deposit at qualifying central banks and (ii) the total amount of client funds on deposit at the custodial banking organization that are linked to fiduciary or custodial and safekeeping accounts. The rule became effective on April 1, 2020. Further, on April 1, 2020, the Federal Reserve issued an interim final rule that requires bank holding companies, including Northern Trust Corporation, to deduct, on a temporary basis, deposits with the Federal Reserve and investments in U.S. Treasury securities from their total leverage exposure. The U.S. Treasury securities deduction is applied in addition to the central bank deposits relief referred to above. This rule became effective on April 1, 2020 and will remain in effect through the first quarter of 2021. On May 15, 2020, the U.S. federal banking agencies released an interim final rule that permits insured depository institutions of bank holding companies also to temporarily exclude deposits with the Federal Reserve and investments in U.S. Treasury securities from their total leverage exposure. The Northern Trust Company did not elect to take this deduction. |
Northern Trust Corporation (C_2
Northern Trust Corporation (Corporation only) (Tables) - Parent Company | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Statements, Captions [Line Items] | |
Condensed Balance Sheet | 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 |
Condensed Statement of Income | 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 |
Condensed Statement of Cash Flows | 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 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Detail) | 12 Months Ended |
Dec. 31, 2020USD ($)segmentlocation | |
Property, Plant and Equipment [Line Items] | |
Number of client-focused reportable segment | segment | 2 |
Lower Limit | |
Property, Plant and Equipment [Line Items] | |
Days contractually past due for interest and principal and the loan is not well-secured and in the process of collection | 90 days |
Upper Limit | |
Property, Plant and Equipment [Line Items] | |
Number of days past due for disclosure purposes to be categorized as a current | 29 days |
Buildings | Upper Limit | |
Property, Plant and Equipment [Line Items] | |
Charge for depreciation, range of life | 30 years |
Equipment | Lower Limit | |
Property, Plant and Equipment [Line Items] | |
Charge for depreciation, range of life | 3 years |
Equipment | Upper Limit | |
Property, Plant and Equipment [Line Items] | |
Charge for depreciation, range of life | 10 years |
Computer Software | |
Property, Plant and Equipment [Line Items] | |
Software, useful life | 15 years |
Computer Software | Lower Limit | |
Property, Plant and Equipment [Line Items] | |
Software, useful life | 3 years |
Computer Software | Upper Limit | |
Property, Plant and Equipment [Line Items] | |
Software, useful life | 10 years |
WEALTH MANAGEMENT | |
Property, Plant and Equipment [Line Items] | |
Minimum assets requirement to be managed | $ | $ 200,000,000 |
Services provided by business units, states | location | 19 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for credit loss | $ 190.7 | $ 104.5 | $ 112.6 | $ 131.2 |
Stockholders' equity attributable to parent | 11,688.3 | 11,091 | 10,508.3 | 10,216.2 |
RETAINED EARNINGS | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders' equity attributable to parent | $ 12,207.7 | 11,656.7 | $ 10,776.8 | 9,685.1 |
Cumulative Effect Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for credit loss | (2.2) | |||
Stockholders' equity attributable to parent | (10.1) | (4.5) | ||
Cumulative Effect Adjustment | Accounting Standards Update 2016-13 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for credit loss | 13.7 | |||
Cumulative Effect Adjustment | RETAINED EARNINGS | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders' equity attributable to parent | (10.1) | $ (4.5) | ||
Cumulative Effect Adjustment | RETAINED EARNINGS | Accounting Standards Update 2016-13 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders' equity attributable to parent | $ (10.1) |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Detail) shares in Millions, $ in Millions | Dec. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security | Jun. 30, 2016shares | Jun. 30, 2015shares |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for Sale | $ 42,022 | $ 38,876.3 | ||
Trading account securities | $ 0.5 | $ 0.3 | ||
Visa Class B | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Common stock issued (in shares) | shares | 1.1 | 1 | ||
LEVEL 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Number of available for sale securities portfolio | security | 2,260 | 1,704 | ||
Available for Sale | $ 39,200 | $ 34,300 | ||
LEVEL 2 | External Pricing | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Trading account securities | $ 0.5 | $ 0.3 | ||
Fair Value, Measurements, Nonrecurring | LEVEL 3 | Discount factor applied to real estate collateral-based loans to reflect realizable value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, measurement input | 0.168 | 0.153 | ||
Loans | Fair Value, Measurements, Nonrecurring | LEVEL 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets, fair value | $ 24.6 | $ 8 |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 Significant Unobservable Inputs (Detail) $ in Millions | Dec. 31, 2020USD ($)yearmonth | Dec. 31, 2019USD ($)month |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative liability | $ | $ 2,065.7 | $ 1,694.6 |
Swap | Fair Value, Measurements, Recurring | LEVEL 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative liability | $ | $ 35.3 | $ 33.4 |
Conversion Rate | Swap | Fair Value, Measurements, Recurring | LEVEL 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative liability, measurement input | 1.62 | 1.62 |
Visa Class A Appreciation | Swap | Fair Value, Measurements, Recurring | LEVEL 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative liability, measurement input | 0.0873 | 0.0854 |
Expected Duration | Swap | Fair Value, Measurements, Recurring | LEVEL 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative liability, measurement input | month | 20 | 22 |
Expected Duration | Swap | Fair Value, Measurements, Recurring | LEVEL 3 | Lower Limit | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative liability, measurement input | 12 | 12 |
Expected Duration | Swap | Fair Value, Measurements, Recurring | LEVEL 3 | Upper Limit | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative liability, measurement input | month | 33 | 36 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Basis Hierarchy Leveling (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | $ 42,022 | $ 38,876.3 |
Derivative Assets | 4,558.2 | 3,387.7 |
Asset, Netting | (3,507.8) | (2,338) |
Derivative Assets | 1,050.4 | 1,049.7 |
Derivative Liabilities | 4,882.8 | 3,313 |
Liability, Netting | (2,817.1) | (1,618.4) |
Derivative Liabilities | 2,065.7 | 1,694.6 |
Cross Product Collateral Adjustment | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Asset, Netting | (1,867.8) | (1,136.8) |
Liability, Netting | (1,177.2) | (417.2) |
LEVEL 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 39,200 | 34,300 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 42,022 | 38,876.3 |
Trading Account | 0.5 | 0.3 |
Total Available for Sale and Trading Debt Securities | 42,022.5 | 38,876.6 |
Fair Value, Measurements, Recurring | Other Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Asset, Netting | (3,507.8) | (2,338) |
Derivative Assets | 1,050.4 | 1,049.7 |
Fair Value, Measurements, Recurring | Other Assets | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Asset, Netting | (3,505.3) | (2,334.1) |
Derivative Assets | 755.4 | 900.7 |
Fair Value, Measurements, Recurring | Other Assets | Interest Rate Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Asset, Netting | (2.5) | (3.9) |
Derivative Assets | 295 | 149 |
Fair Value, Measurements, Recurring | Other Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Liability, Netting | (2,817.1) | (1,618.4) |
Derivative Liabilities | 2,065.7 | 1,694.6 |
Fair Value, Measurements, Recurring | Other Liabilities | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Liability, Netting | (2,718.6) | (1,548.6) |
Derivative Liabilities | 2,003.9 | 1,633.6 |
Fair Value, Measurements, Recurring | Other Liabilities | Interest Rate Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Liability, Netting | (98.5) | (57.3) |
Derivative Liabilities | 26.5 | 40.1 |
Fair Value, Measurements, Recurring | Other Liabilities | Other Financial Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Liability, Netting | 0 | (12.5) |
Derivative Liabilities | 35.3 | 20.9 |
Fair Value, Measurements, Recurring | LEVEL 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 2,799.9 | 4,549.1 |
Trading Account | 0 | 0 |
Total Available for Sale and Trading Debt Securities | 2,799.9 | 4,549.1 |
Fair Value, Measurements, Recurring | LEVEL 1 | Other Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Assets | 0 | 0 |
Fair Value, Measurements, Recurring | LEVEL 1 | Other Assets | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Assets | 0 | 0 |
Fair Value, Measurements, Recurring | LEVEL 1 | Other Assets | Interest Rate Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Assets | 0 | 0 |
Fair Value, Measurements, Recurring | LEVEL 1 | Other Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | LEVEL 1 | Other Liabilities | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | LEVEL 1 | Other Liabilities | Interest Rate Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | LEVEL 1 | Other Liabilities | Other Financial Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | LEVEL 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 39,222.1 | 34,327.2 |
Trading Account | 0.5 | 0.3 |
Total Available for Sale and Trading Debt Securities | 39,222.6 | 34,327.5 |
Fair Value, Measurements, Recurring | LEVEL 2 | Other Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Assets | 4,558.2 | 3,387.7 |
Fair Value, Measurements, Recurring | LEVEL 2 | Other Assets | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Assets | 4,260.7 | 3,234.8 |
Fair Value, Measurements, Recurring | LEVEL 2 | Other Assets | Interest Rate Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Assets | 297.5 | 152.9 |
Fair Value, Measurements, Recurring | LEVEL 2 | Other Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Liabilities | 4,847.5 | 3,279.6 |
Fair Value, Measurements, Recurring | LEVEL 2 | Other Liabilities | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Liabilities | 4,722.5 | 3,182.2 |
Fair Value, Measurements, Recurring | LEVEL 2 | Other Liabilities | Interest Rate Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Liabilities | 125 | 97.4 |
Fair Value, Measurements, Recurring | LEVEL 2 | Other Liabilities | Other Financial Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | LEVEL 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 0 | 0 |
Trading Account | 0 | 0 |
Total Available for Sale and Trading Debt Securities | 0 | 0 |
Fair Value, Measurements, Recurring | LEVEL 3 | Other Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Assets | 0 | 0 |
Fair Value, Measurements, Recurring | LEVEL 3 | Other Assets | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Assets | 0 | 0 |
Fair Value, Measurements, Recurring | LEVEL 3 | Other Assets | Interest Rate Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Assets | 0 | 0 |
Fair Value, Measurements, Recurring | LEVEL 3 | Other Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Liabilities | 35.3 | 33.4 |
Fair Value, Measurements, Recurring | LEVEL 3 | Other Liabilities | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | LEVEL 3 | Other Liabilities | Interest Rate Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | LEVEL 3 | Other Liabilities | Other Financial Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Liabilities | 35.3 | 33.4 |
U.S. Government | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 2,799.9 | 4,549.1 |
U.S. Government | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 2,799.9 | 4,549.1 |
U.S. Government | Fair Value, Measurements, Recurring | LEVEL 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 2,799.9 | 4,549.1 |
U.S. Government | Fair Value, Measurements, Recurring | LEVEL 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 0 | 0 |
U.S. Government | Fair Value, Measurements, Recurring | LEVEL 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 0 | 0 |
Obligations of States and Political Subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 3,083.6 | 1,615.3 |
Obligations of States and Political Subdivisions | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 3,083.6 | 1,615.3 |
Obligations of States and Political Subdivisions | Fair Value, Measurements, Recurring | LEVEL 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 0 | 0 |
Obligations of States and Political Subdivisions | Fair Value, Measurements, Recurring | LEVEL 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 3,083.6 | 1,615.3 |
Obligations of States and Political Subdivisions | Fair Value, Measurements, Recurring | LEVEL 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 0 | 0 |
Government Sponsored Agency | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 24,956.7 | 23,271.2 |
Government Sponsored Agency | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 24,956.7 | 23,271.2 |
Government Sponsored Agency | Fair Value, Measurements, Recurring | LEVEL 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 0 | 0 |
Government Sponsored Agency | Fair Value, Measurements, Recurring | LEVEL 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 24,956.7 | 23,271.2 |
Government Sponsored Agency | Fair Value, Measurements, Recurring | LEVEL 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 0 | 0 |
Non-U.S. Government | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 714 | 3.3 |
Non-U.S. Government | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 714 | 3.3 |
Non-U.S. Government | Fair Value, Measurements, Recurring | LEVEL 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 0 | 0 |
Non-U.S. Government | Fair Value, Measurements, Recurring | LEVEL 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 714 | 3.3 |
Non-U.S. Government | Fair Value, Measurements, Recurring | LEVEL 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 0 | 0 |
Corporate Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 2,539.6 | 2,402.7 |
Corporate Debt | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 2,539.6 | 2,402.7 |
Corporate Debt | Fair Value, Measurements, Recurring | LEVEL 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 0 | 0 |
Corporate Debt | Fair Value, Measurements, Recurring | LEVEL 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 2,539.6 | 2,402.7 |
Corporate Debt | Fair Value, Measurements, Recurring | LEVEL 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 0 | 0 |
Covered Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 553.1 | 769.9 |
Covered Bonds | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 553.1 | 769.9 |
Covered Bonds | Fair Value, Measurements, Recurring | LEVEL 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 0 | 0 |
Covered Bonds | Fair Value, Measurements, Recurring | LEVEL 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 553.1 | 769.9 |
Covered Bonds | Fair Value, Measurements, Recurring | LEVEL 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 0 | 0 |
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 2,345.8 | 2,127.6 |
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 2,345.8 | 2,127.6 |
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | Fair Value, Measurements, Recurring | LEVEL 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 0 | 0 |
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | Fair Value, Measurements, Recurring | LEVEL 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 2,345.8 | 2,127.6 |
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | Fair Value, Measurements, Recurring | LEVEL 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 0 | 0 |
Other Asset-Backed | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 3,997.5 | 3,330.5 |
Other Asset-Backed | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 3,997.5 | 3,330.5 |
Other Asset-Backed | Fair Value, Measurements, Recurring | LEVEL 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 0 | 0 |
Other Asset-Backed | Fair Value, Measurements, Recurring | LEVEL 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 3,997.5 | 3,330.5 |
Other Asset-Backed | Fair Value, Measurements, Recurring | LEVEL 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 0 | 0 |
Commercial Mortgage-Backed | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 1,031.8 | 797.7 |
Commercial Mortgage-Backed | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 1,031.8 | 797.7 |
Commercial Mortgage-Backed | Fair Value, Measurements, Recurring | LEVEL 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 0 | 0 |
Commercial Mortgage-Backed | Fair Value, Measurements, Recurring | LEVEL 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 1,031.8 | 797.7 |
Commercial Mortgage-Backed | Fair Value, Measurements, Recurring | LEVEL 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | $ 0 | 0 |
Other | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 9 | |
Other | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 9 | |
Other | Fair Value, Measurements, Recurring | LEVEL 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 0 | |
Other | Fair Value, Measurements, Recurring | LEVEL 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | 9 | |
Other | Fair Value, Measurements, Recurring | LEVEL 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available for Sale | $ 0 |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Level 3 Liabilities (Detail) - Visa Conversion Rate Swap - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 33.4 | $ 32.8 |
Total (Gains) Losses: | ||
Included in Earnings | 18.3 | 17.1 |
Purchases, Issues, Sales, and Settlements | ||
Settlements | (16.4) | (16.5) |
Balance at end of period | 35.3 | 33.4 |
Unrealized (Gains) Losses Included in Earnings Related to Financial Instruments Held at December 31 | $ 18.6 | $ 12.3 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation Techniques, Significant Unobservable Inputs, Quantitative Information Non-recurring Basis (Detail) - Discount factor applied to real estate collateral-based loans to reflect realizable value - Fair Value, Measurements, Nonrecurring - LEVEL 3 $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
INPUT VALUES | 0.168 | 0.153 |
Lower Limit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
INPUT VALUES | 0.150 | 0.150 |
Upper Limit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
INPUT VALUES | 0.200 | 0.200 |
Loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
FAIR VALUE | $ 24.6 | $ 8 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Of Financial Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 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 |
Interest-Bearing Deposits with Banks | 4,372.6 | 4,877.1 |
Federal Funds Sold | 1,600 | |
Securities Purchased under Agreements to Resell | 1,596.5 | 707.8 |
Debt Securities | ||
Available for Sale | 42,022 | 38,876.3 |
Held to Maturity | 17,791.1 | 12,284.5 |
Loans (excluding Leases) | ||
Client Security Settlement Receivables | 1,160.2 | 845.7 |
Deposits | ||
Savings Certificates and Other Time | 937.1 | 986.7 |
Non U.S. Offices Interest-Bearing | 71,198.4 | 60,400.3 |
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 |
Long-Term Debt | ||
Floating Rate Capital Debt | 277.8 | 277.7 |
DERIVATIVE INSTRUMENTS | ||
Assets | 4,097.2 | 2,844 |
Derivative Liability, Fair Value, Gross Liability | 3,738 | 2,312.4 |
LEVEL 2 | ||
Debt Securities | ||
Available for Sale | 39,200 | 34,300 |
BOOK VALUE | ||
ASSETS | ||
Cash and Due from Banks | 4,389.5 | 4,459.2 |
Federal Reserve and Other Central Bank Deposits | 55,503.6 | 33,886 |
Interest-Bearing Deposits with Banks | 4,372.6 | 4,877.1 |
Federal Funds Sold | 5 | |
Securities Purchased under Agreements to Resell | 1,596.5 | 707.8 |
Debt Securities | ||
Available for Sale | 42,022 | 38,876.3 |
Held to Maturity | 17,791.1 | 12,284.5 |
Trading Account | 0.5 | 0.3 |
Loans (excluding Leases) | ||
Held for Investment | 33,558 | 31,239.5 |
Client Security Settlement Receivables | 1,160.2 | 845.7 |
Other Assets | ||
Federal Reserve and Federal Home Loan Bank Stock | 275 | 301.2 |
Community Development Investments | 919.6 | 749.3 |
Employee Benefit and Deferred Compensation | 215.8 | 199.5 |
Deposits | ||
Demand, Noninterest-Bearing, Savings, Money Market and Other Interest-Bearing | 71,742.5 | 47,733.6 |
Savings Certificates and Other Time | 937.1 | 986.7 |
Non U.S. Offices Interest-Bearing | 71,198.4 | 60,400.3 |
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 |
Long-Term Debt | ||
Subordinated Debt | 1,189.3 | 1,148.1 |
Floating Rate Capital Debt | 277.8 | 277.7 |
Floating Rate Capital Debt | ||
Standby Letters of Credit | 22.4 | 25.5 |
Loan Commitments | 77 | 32.3 |
BOOK VALUE | Asset/Liability Management | Foreign Exchange Contracts | ||
DERIVATIVE INSTRUMENTS | ||
Assets | 15.6 | 83.1 |
Derivative Liability, Fair Value, Gross Liability | 311.8 | 24.1 |
BOOK VALUE | Asset/Liability Management | Interest Rate Contracts | ||
DERIVATIVE INSTRUMENTS | ||
Assets | 8.3 | 20.5 |
Derivative Liability, Fair Value, Gross Liability | 10.2 | 21.1 |
BOOK VALUE | Asset/Liability Management | Other Financial Derivatives | ||
DERIVATIVE INSTRUMENTS | ||
Derivative Liability, Fair Value, Gross Liability | 35.3 | 33.4 |
BOOK VALUE | Client-Related and Trading | Foreign Exchange Contracts | ||
DERIVATIVE INSTRUMENTS | ||
Assets | 4,245.1 | 3,151.7 |
Derivative Liability, Fair Value, Gross Liability | 4,410.7 | 3,158.1 |
BOOK VALUE | Client-Related and Trading | Interest Rate Contracts | ||
DERIVATIVE INSTRUMENTS | ||
Assets | 289.2 | 132.4 |
Derivative Liability, Fair Value, Gross Liability | 114.8 | 76.3 |
Estimate of Fair Value, Fair Value Disclosure | ||
ASSETS | ||
Cash and Due from Banks | 4,389.5 | 4,459.2 |
Federal Reserve and Other Central Bank Deposits | 55,503.6 | 33,886 |
Interest-Bearing Deposits with Banks | 4,372.6 | 4,877.1 |
Federal Funds Sold | 5 | |
Securities Purchased under Agreements to Resell | 1,596.5 | 707.8 |
Debt Securities | ||
Available for Sale | 42,022 | 38,876.3 |
Held to Maturity | 17,797.4 | 12,249.3 |
Trading Account | 0.5 | 0.3 |
Loans (excluding Leases) | ||
Held for Investment | 34,017.5 | 31,517.8 |
Client Security Settlement Receivables | 1,160.2 | 845.7 |
Other Assets | ||
Federal Reserve and Federal Home Loan Bank Stock | 275 | 301.2 |
Community Development Investments | 919.6 | 749.3 |
Employee Benefit and Deferred Compensation | 228.9 | 207.6 |
Deposits | ||
Demand, Noninterest-Bearing, Savings, Money Market and Other Interest-Bearing | 71,742.5 | 47,733.6 |
Savings Certificates and Other Time | 943 | 994.2 |
Non U.S. Offices Interest-Bearing | 71,198.4 | 60,400.3 |
Federal Funds Purchased | 260.2 | 552.9 |
Securities Sold Under Agreements to Repurchase | 39.8 | 489.7 |
Other Borrowings | 4,012.7 | 6,745.9 |
Senior Notes | 3,222.6 | 2,593 |
Long-Term Debt | ||
Subordinated Debt | 1,250.1 | 1,169.5 |
Floating Rate Capital Debt | 264.6 | 262.1 |
Floating Rate Capital Debt | ||
Standby Letters of Credit | 22.4 | 25.5 |
Loan Commitments | 77 | 32.3 |
Estimate of Fair Value, Fair Value Disclosure | Asset/Liability Management | Foreign Exchange Contracts | ||
DERIVATIVE INSTRUMENTS | ||
Assets | 15.6 | 83.1 |
Derivative Liability, Fair Value, Gross Liability | 311.8 | 24.1 |
Estimate of Fair Value, Fair Value Disclosure | Asset/Liability Management | Interest Rate Contracts | ||
DERIVATIVE INSTRUMENTS | ||
Assets | 8.3 | 20.5 |
Derivative Liability, Fair Value, Gross Liability | 10.2 | 21.1 |
Estimate of Fair Value, Fair Value Disclosure | Asset/Liability Management | Other Financial Derivatives | ||
DERIVATIVE INSTRUMENTS | ||
Derivative Liability, Fair Value, Gross Liability | 35.3 | 33.4 |
Estimate of Fair Value, Fair Value Disclosure | Client-Related and Trading | Foreign Exchange Contracts | ||
DERIVATIVE INSTRUMENTS | ||
Assets | 4,245.1 | 3,151.7 |
Derivative Liability, Fair Value, Gross Liability | 4,410.7 | 3,158.1 |
Estimate of Fair Value, Fair Value Disclosure | Client-Related and Trading | Interest Rate Contracts | ||
DERIVATIVE INSTRUMENTS | ||
Assets | 289.2 | 132.4 |
Derivative Liability, Fair Value, Gross Liability | 114.8 | 76.3 |
Estimate of Fair Value, Fair Value Disclosure | LEVEL 1 | ||
ASSETS | ||
Cash and Due from Banks | 4,389.5 | 4,459.2 |
Federal Reserve and Other Central Bank Deposits | 0 | 0 |
Interest-Bearing Deposits with Banks | 0 | 0 |
Federal Funds Sold | 0 | |
Securities Purchased under Agreements to Resell | 0 | 0 |
Debt Securities | ||
Available for Sale | 2,799.9 | 4,549.1 |
Held to Maturity | 90 | 138.8 |
Trading Account | 0 | 0 |
Loans (excluding Leases) | ||
Held for Investment | 0 | 0 |
Client Security Settlement Receivables | 0 | 0 |
Other Assets | ||
Federal Reserve and Federal Home Loan Bank Stock | 0 | 0 |
Community Development Investments | 0 | 0 |
Employee Benefit and Deferred Compensation | 138.6 | 131 |
Deposits | ||
Demand, Noninterest-Bearing, Savings, Money Market and Other Interest-Bearing | 71,742.5 | 47,733.6 |
Savings Certificates and Other Time | 0 | 0 |
Non U.S. Offices Interest-Bearing | 0 | 0 |
Federal Funds Purchased | 0 | 0 |
Securities Sold Under Agreements to Repurchase | 0 | 0 |
Other Borrowings | 0 | 0 |
Senior Notes | 0 | 0 |
Long-Term Debt | ||
Subordinated Debt | 0 | 0 |
Floating Rate Capital Debt | 0 | 0 |
Floating Rate Capital Debt | ||
Standby Letters of Credit | 0 | 0 |
Loan Commitments | 0 | 0 |
Estimate of Fair Value, Fair Value Disclosure | LEVEL 1 | Asset/Liability Management | Foreign Exchange Contracts | ||
DERIVATIVE INSTRUMENTS | ||
Assets | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Estimate of Fair Value, Fair Value Disclosure | LEVEL 1 | Asset/Liability Management | Interest Rate Contracts | ||
DERIVATIVE INSTRUMENTS | ||
Assets | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Estimate of Fair Value, Fair Value Disclosure | LEVEL 1 | Asset/Liability Management | Other Financial Derivatives | ||
DERIVATIVE INSTRUMENTS | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Estimate of Fair Value, Fair Value Disclosure | LEVEL 1 | Client-Related and Trading | Foreign Exchange Contracts | ||
DERIVATIVE INSTRUMENTS | ||
Assets | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Estimate of Fair Value, Fair Value Disclosure | LEVEL 1 | Client-Related and Trading | Interest Rate Contracts | ||
DERIVATIVE INSTRUMENTS | ||
Assets | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Estimate of Fair Value, Fair Value Disclosure | LEVEL 2 | ||
ASSETS | ||
Cash and Due from Banks | 0 | 0 |
Federal Reserve and Other Central Bank Deposits | 55,503.6 | 33,886 |
Interest-Bearing Deposits with Banks | 4,372.6 | 4,877.1 |
Federal Funds Sold | 5 | |
Securities Purchased under Agreements to Resell | 1,596.5 | 707.8 |
Debt Securities | ||
Available for Sale | 39,222.1 | 34,327.2 |
Held to Maturity | 17,707.4 | 12,110.5 |
Trading Account | 0.5 | 0.3 |
Loans (excluding Leases) | ||
Held for Investment | 0 | 0 |
Client Security Settlement Receivables | 1,160.2 | 845.7 |
Other Assets | ||
Federal Reserve and Federal Home Loan Bank Stock | 275 | 301.2 |
Community Development Investments | 919.6 | 749.3 |
Employee Benefit and Deferred Compensation | 90.3 | 76.6 |
Deposits | ||
Demand, Noninterest-Bearing, Savings, Money Market and Other Interest-Bearing | 0 | 0 |
Savings Certificates and Other Time | 943 | 994.2 |
Non U.S. Offices Interest-Bearing | 71,198.4 | 60,400.3 |
Federal Funds Purchased | 260.2 | 552.9 |
Securities Sold Under Agreements to Repurchase | 39.8 | 489.7 |
Other Borrowings | 4,012.7 | 6,745.9 |
Senior Notes | 3,222.6 | 2,593 |
Long-Term Debt | ||
Subordinated Debt | 1,250.1 | 1,169.5 |
Floating Rate Capital Debt | 264.6 | 262.1 |
Floating Rate Capital Debt | ||
Standby Letters of Credit | 0 | 0 |
Loan Commitments | 0 | 0 |
Estimate of Fair Value, Fair Value Disclosure | LEVEL 2 | Asset/Liability Management | Foreign Exchange Contracts | ||
DERIVATIVE INSTRUMENTS | ||
Assets | 15.6 | 83.1 |
Derivative Liability, Fair Value, Gross Liability | 311.8 | 24.1 |
Estimate of Fair Value, Fair Value Disclosure | LEVEL 2 | Asset/Liability Management | Interest Rate Contracts | ||
DERIVATIVE INSTRUMENTS | ||
Assets | 8.3 | 20.5 |
Derivative Liability, Fair Value, Gross Liability | 10.2 | 21.1 |
Estimate of Fair Value, Fair Value Disclosure | LEVEL 2 | Asset/Liability Management | Other Financial Derivatives | ||
DERIVATIVE INSTRUMENTS | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Estimate of Fair Value, Fair Value Disclosure | LEVEL 2 | Client-Related and Trading | Foreign Exchange Contracts | ||
DERIVATIVE INSTRUMENTS | ||
Assets | 4,245.1 | 3,151.7 |
Derivative Liability, Fair Value, Gross Liability | 4,410.7 | 3,158.1 |
Estimate of Fair Value, Fair Value Disclosure | LEVEL 2 | Client-Related and Trading | Interest Rate Contracts | ||
DERIVATIVE INSTRUMENTS | ||
Assets | 289.2 | 132.4 |
Derivative Liability, Fair Value, Gross Liability | 114.8 | 76.3 |
Estimate of Fair Value, Fair Value Disclosure | LEVEL 3 | ||
ASSETS | ||
Cash and Due from Banks | 0 | 0 |
Federal Reserve and Other Central Bank Deposits | 0 | 0 |
Interest-Bearing Deposits with Banks | 0 | 0 |
Federal Funds Sold | 0 | |
Securities Purchased under Agreements to Resell | 0 | 0 |
Debt Securities | ||
Available for Sale | 0 | 0 |
Held to Maturity | 0 | 0 |
Trading Account | 0 | 0 |
Loans (excluding Leases) | ||
Held for Investment | 34,017.5 | 31,517.8 |
Client Security Settlement Receivables | 0 | 0 |
Other Assets | ||
Federal Reserve and Federal Home Loan Bank Stock | 0 | 0 |
Community Development Investments | 0 | 0 |
Employee Benefit and Deferred Compensation | 0 | 0 |
Deposits | ||
Demand, Noninterest-Bearing, Savings, Money Market and Other Interest-Bearing | 0 | 0 |
Savings Certificates and Other Time | 0 | 0 |
Non U.S. Offices Interest-Bearing | 0 | 0 |
Federal Funds Purchased | 0 | 0 |
Securities Sold Under Agreements to Repurchase | 0 | 0 |
Other Borrowings | 0 | 0 |
Senior Notes | 0 | 0 |
Long-Term Debt | ||
Subordinated Debt | 0 | 0 |
Floating Rate Capital Debt | 0 | 0 |
Floating Rate Capital Debt | ||
Standby Letters of Credit | 22.4 | 25.5 |
Loan Commitments | 77 | 32.3 |
Estimate of Fair Value, Fair Value Disclosure | LEVEL 3 | Asset/Liability Management | Foreign Exchange Contracts | ||
DERIVATIVE INSTRUMENTS | ||
Assets | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Estimate of Fair Value, Fair Value Disclosure | LEVEL 3 | Asset/Liability Management | Interest Rate Contracts | ||
DERIVATIVE INSTRUMENTS | ||
Assets | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Estimate of Fair Value, Fair Value Disclosure | LEVEL 3 | Asset/Liability Management | Other Financial Derivatives | ||
DERIVATIVE INSTRUMENTS | ||
Derivative Liability, Fair Value, Gross Liability | 35.3 | 33.4 |
Estimate of Fair Value, Fair Value Disclosure | LEVEL 3 | Client-Related and Trading | Foreign Exchange Contracts | ||
DERIVATIVE INSTRUMENTS | ||
Assets | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Estimate of Fair Value, Fair Value Disclosure | LEVEL 3 | Client-Related and Trading | Interest Rate Contracts | ||
DERIVATIVE INSTRUMENTS | ||
Assets | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | $ 0 | $ 0 |
Securities (Reconciliation of A
Securities (Reconciliation of Amortized Cost to Fair Value of Securities Available for Sale) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Investment Holdings [Line Items] | ||
AMORTIZED COST | $ 41,155.7 | $ 38,722.2 |
GROSS UNREALIZED GAINS | 897.6 | 262.7 |
GROSS UNREALIZED LOSSES | 31.3 | 108.6 |
FAIR VALUE | 42,022 | 38,876.3 |
U.S. Government | ||
Investment Holdings [Line Items] | ||
AMORTIZED COST | 2,728.8 | 4,527.5 |
GROSS UNREALIZED GAINS | 71.1 | 26.7 |
GROSS UNREALIZED LOSSES | 0 | 5.1 |
FAIR VALUE | 2,799.9 | 4,549.1 |
Obligations of States and Political Subdivisions | ||
Investment Holdings [Line Items] | ||
AMORTIZED COST | 2,927.8 | 1,604 |
GROSS UNREALIZED GAINS | 155.9 | 24.6 |
GROSS UNREALIZED LOSSES | 0.1 | 13.3 |
FAIR VALUE | 3,083.6 | 1,615.3 |
Government Sponsored Agency | ||
Investment Holdings [Line Items] | ||
AMORTIZED COST | 24,595.1 | 23,247.5 |
GROSS UNREALIZED GAINS | 388.5 | 101.8 |
GROSS UNREALIZED LOSSES | 26.9 | 78.1 |
FAIR VALUE | 24,956.7 | 23,271.2 |
Non-U.S. Government | ||
Investment Holdings [Line Items] | ||
AMORTIZED COST | 713.6 | 3.3 |
GROSS UNREALIZED GAINS | 1.1 | 0 |
GROSS UNREALIZED LOSSES | 0.7 | 0 |
FAIR VALUE | 714 | 3.3 |
Corporate Debt | ||
Investment Holdings [Line Items] | ||
AMORTIZED COST | 2,459.9 | 2,378.9 |
GROSS UNREALIZED GAINS | 79.8 | 27.8 |
GROSS UNREALIZED LOSSES | 0.1 | 4 |
FAIR VALUE | 2,539.6 | 2,402.7 |
Covered Bonds | ||
Investment Holdings [Line Items] | ||
AMORTIZED COST | 543.1 | 766.3 |
GROSS UNREALIZED GAINS | 10 | 4.4 |
GROSS UNREALIZED LOSSES | 0 | 0.8 |
FAIR VALUE | 553.1 | 769.9 |
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | ||
Investment Holdings [Line Items] | ||
AMORTIZED COST | 2,281.7 | 2,091.3 |
GROSS UNREALIZED GAINS | 64.7 | 37.4 |
GROSS UNREALIZED LOSSES | 0.6 | 1.1 |
FAIR VALUE | 2,345.8 | 2,127.6 |
Other Asset-Backed | ||
Investment Holdings [Line Items] | ||
AMORTIZED COST | 3,953.5 | 3,324.5 |
GROSS UNREALIZED GAINS | 46.8 | 11.3 |
GROSS UNREALIZED LOSSES | 2.8 | 5.3 |
FAIR VALUE | 3,997.5 | 3,330.5 |
Commercial Mortgage-Backed | ||
Investment Holdings [Line Items] | ||
AMORTIZED COST | 952.2 | 769.9 |
GROSS UNREALIZED GAINS | 79.7 | 28.7 |
GROSS UNREALIZED LOSSES | 0.1 | 0.9 |
FAIR VALUE | $ 1,031.8 | 797.7 |
Other | ||
Investment Holdings [Line Items] | ||
AMORTIZED COST | 9 | |
GROSS UNREALIZED GAINS | 0 | |
GROSS UNREALIZED LOSSES | 0 | |
FAIR VALUE | $ 9 |
Securities (Remaining Maturity
Securities (Remaining Maturity of Securities Available for Sale and Held to Maturity) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Available for Sale - Amortized Cost | ||
Amortized cost, one year or less | $ 7,508.1 | |
Amortized cost, one to five years | 18,696.4 | |
Amortized cost, five to ten years | 12,334 | |
Amortized cost, over ten years | 2,617.2 | |
AMORTIZED COST | 41,155.7 | $ 38,722.2 |
Available for Sale - Fair Value | ||
Fair value, one year or less | 7,598.7 | |
Fair value, one to five years | 19,076.1 | |
Fair value, five to ten years | 12,673.3 | |
Fair value, over ten years | 2,673.9 | |
Total | 42,022 | 38,876.3 |
Held to Maturity - Amortized Cost | ||
Amortized cost, one year or less | 11,593.6 | |
Amortized cost, one to five years | 5,607.2 | |
Amortized cost, five to ten years | 473.3 | |
Amortized cost, over ten years | 117 | |
AMORTIZED COST | 17,791.1 | 12,284.5 |
Held to Maturity - Fair Value | ||
Fair value, one year or less | 11,603.3 | |
Fair value, one to five years | 5,660.8 | |
Fair value, five to ten years | 468.1 | |
Fair value, over ten years | 65.2 | |
FAIR VALUE | 17,797.4 | 12,249.3 |
U.S. Government | ||
Available for Sale - Amortized Cost | ||
Amortized cost, one year or less | 300.9 | |
Amortized cost, one to five years | 1,732.8 | |
Amortized cost, five to ten years | 695.1 | |
Amortized cost, over ten years | 0 | |
AMORTIZED COST | 2,728.8 | 4,527.5 |
Available for Sale - Fair Value | ||
Fair value, one year or less | 303.2 | |
Fair value, one to five years | 1,767 | |
Fair value, five to ten years | 729.7 | |
Fair value, over ten years | 0 | |
Total | 2,799.9 | 4,549.1 |
Held to Maturity - Amortized Cost | ||
Amortized cost, one year or less | 90 | |
Amortized cost, one to five years | 0 | |
Amortized cost, five to ten years | 0 | |
Amortized cost, over ten years | 0 | |
AMORTIZED COST | 90 | 138.8 |
Held to Maturity - Fair Value | ||
Fair value, one year or less | 90 | |
Fair value, one to five years | 0 | |
Fair value, five to ten years | 0 | |
Fair value, over ten years | 0 | |
FAIR VALUE | 90 | 138.8 |
Obligations of States and Political Subdivisions | ||
Available for Sale - Amortized Cost | ||
Amortized cost, one year or less | 7.9 | |
Amortized cost, one to five years | 252.1 | |
Amortized cost, five to ten years | 2,578.4 | |
Amortized cost, over ten years | 89.4 | |
AMORTIZED COST | 2,927.8 | 1,604 |
Available for Sale - Fair Value | ||
Fair value, one year or less | 8 | |
Fair value, one to five years | 266.8 | |
Fair value, five to ten years | 2,718.4 | |
Fair value, over ten years | 90.4 | |
Total | 3,083.6 | 1,615.3 |
Held to Maturity - Amortized Cost | ||
Amortized cost, one year or less | 1.4 | |
Amortized cost, one to five years | 0.7 | |
Amortized cost, five to ten years | 0 | |
Amortized cost, over ten years | 0 | |
AMORTIZED COST | 2.1 | 10.1 |
Held to Maturity - Fair Value | ||
Fair value, one year or less | 1.4 | |
Fair value, one to five years | 0.8 | |
Fair value, five to ten years | 0 | |
Fair value, over ten years | 0 | |
FAIR VALUE | 2.2 | 10.3 |
Government Sponsored Agency | ||
Available for Sale - Amortized Cost | ||
Amortized cost, one year or less | 5,540 | |
Amortized cost, one to five years | 8,942.2 | |
Amortized cost, five to ten years | 7,682.1 | |
Amortized cost, over ten years | 2,430.8 | |
AMORTIZED COST | 24,595.1 | 23,247.5 |
Available for Sale - Fair Value | ||
Fair value, one year or less | 5,613.6 | |
Fair value, one to five years | 9,063 | |
Fair value, five to ten years | 7,793.6 | |
Fair value, over ten years | 2,486.5 | |
Total | 24,956.7 | 23,271.2 |
Held to Maturity - Amortized Cost | ||
Amortized cost, one year or less | 0.5 | |
Amortized cost, one to five years | 1.3 | |
Amortized cost, five to ten years | 0.8 | |
Amortized cost, over ten years | 0.4 | |
AMORTIZED COST | 3 | 4.1 |
Held to Maturity - Fair Value | ||
Fair value, one year or less | 0.5 | |
Fair value, one to five years | 1.4 | |
Fair value, five to ten years | 0.9 | |
Fair value, over ten years | 0.5 | |
FAIR VALUE | 3.3 | 4.3 |
Non-U.S. Government | ||
Available for Sale - Amortized Cost | ||
Amortized cost, one year or less | 414.3 | |
Amortized cost, one to five years | 40.6 | |
Amortized cost, five to ten years | 258.7 | |
Amortized cost, over ten years | 0 | |
AMORTIZED COST | 713.6 | |
Available for Sale - Fair Value | ||
Fair value, one year or less | 414.6 | |
Fair value, one to five years | 40.8 | |
Fair value, five to ten years | 258.6 | |
Fair value, over ten years | 0 | |
Total | 714 | |
Held to Maturity - Amortized Cost | ||
Amortized cost, one year or less | 8,065.4 | |
Amortized cost, one to five years | 271.2 | |
Amortized cost, five to ten years | 0 | |
Amortized cost, over ten years | 0 | |
AMORTIZED COST | 8,336.6 | 4,076 |
Held to Maturity - Fair Value | ||
Fair value, one year or less | 8,065.5 | |
Fair value, one to five years | 278.2 | |
Fair value, five to ten years | 0 | |
Fair value, over ten years | 0 | |
FAIR VALUE | 8,343.7 | 4,078.8 |
Corporate Debt | ||
Available for Sale - Amortized Cost | ||
Amortized cost, one year or less | 443.5 | |
Amortized cost, one to five years | 2,016.4 | |
Amortized cost, five to ten years | 0 | |
Amortized cost, over ten years | 0 | |
AMORTIZED COST | 2,459.9 | 2,378.9 |
Available for Sale - Fair Value | ||
Fair value, one year or less | 448.6 | |
Fair value, one to five years | 2,091 | |
Fair value, five to ten years | 0 | |
Fair value, over ten years | 0 | |
Total | 2,539.6 | 2,402.7 |
Held to Maturity - Amortized Cost | ||
Amortized cost, one year or less | 126.2 | |
Amortized cost, one to five years | 461.8 | |
Amortized cost, five to ten years | 0 | |
Amortized cost, over ten years | 0 | |
AMORTIZED COST | 588 | 405.1 |
Held to Maturity - Fair Value | ||
Fair value, one year or less | 126.3 | |
Fair value, one to five years | 468.1 | |
Fair value, five to ten years | 0 | |
Fair value, over ten years | 0 | |
FAIR VALUE | 594.4 | 406.2 |
Covered Bonds | ||
Available for Sale - Amortized Cost | ||
Amortized cost, one year or less | 108.2 | |
Amortized cost, one to five years | 434.9 | |
Amortized cost, five to ten years | 0 | |
Amortized cost, over ten years | 0 | |
AMORTIZED COST | 543.1 | 766.3 |
Available for Sale - Fair Value | ||
Fair value, one year or less | 108.6 | |
Fair value, one to five years | 444.5 | |
Fair value, five to ten years | 0 | |
Fair value, over ten years | 0 | |
Total | 553.1 | 769.9 |
Held to Maturity - Amortized Cost | ||
Amortized cost, one year or less | 1,283.7 | |
Amortized cost, one to five years | 1,836.3 | |
Amortized cost, five to ten years | 64.6 | |
Amortized cost, over ten years | 0 | |
AMORTIZED COST | 3,184.6 | 3,006.7 |
Held to Maturity - Fair Value | ||
Fair value, one year or less | 1,289.5 | |
Fair value, one to five years | 1,854.7 | |
Fair value, five to ten years | 64.7 | |
Fair value, over ten years | 0 | |
FAIR VALUE | 3,208.9 | 3,020.4 |
Certificates of Deposit | ||
Held to Maturity - Amortized Cost | ||
Amortized cost, one year or less | 807.2 | |
Amortized cost, one to five years | 0 | |
Amortized cost, five to ten years | 0 | |
Amortized cost, over ten years | 0 | |
AMORTIZED COST | 807.2 | 262.9 |
Held to Maturity - Fair Value | ||
Fair value, one year or less | 807.2 | |
Fair value, one to five years | 0 | |
Fair value, five to ten years | 0 | |
Fair value, over ten years | 0 | |
FAIR VALUE | 807.2 | 262.9 |
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | ||
Available for Sale - Amortized Cost | ||
Amortized cost, one year or less | 163.9 | |
Amortized cost, one to five years | 1,960.8 | |
Amortized cost, five to ten years | 157 | |
Amortized cost, over ten years | 0 | |
AMORTIZED COST | 2,281.7 | 2,091.3 |
Available for Sale - Fair Value | ||
Fair value, one year or less | 164.1 | |
Fair value, one to five years | 2,024 | |
Fair value, five to ten years | 157.7 | |
Fair value, over ten years | 0 | |
Total | 2,345.8 | 2,127.6 |
Held to Maturity - Amortized Cost | ||
Amortized cost, one year or less | 943.2 | |
Amortized cost, one to five years | 2,354.8 | |
Amortized cost, five to ten years | 350 | |
Amortized cost, over ten years | 0 | |
AMORTIZED COST | 3,648 | 3,285.4 |
Held to Maturity - Fair Value | ||
Fair value, one year or less | 947.2 | |
Fair value, one to five years | 2,393.4 | |
Fair value, five to ten years | 350 | |
Fair value, over ten years | 0 | |
FAIR VALUE | 3,690.6 | 3,305 |
Other Asset-Backed | ||
Available for Sale - Amortized Cost | ||
Amortized cost, one year or less | 517.4 | |
Amortized cost, one to five years | 2,903.1 | |
Amortized cost, five to ten years | 436 | |
Amortized cost, over ten years | 97 | |
AMORTIZED COST | 3,953.5 | 3,324.5 |
Available for Sale - Fair Value | ||
Fair value, one year or less | 525.9 | |
Fair value, one to five years | 2,937.8 | |
Fair value, five to ten years | 436.8 | |
Fair value, over ten years | 97 | |
Total | 3,997.5 | 3,330.5 |
Held to Maturity - Amortized Cost | ||
Amortized cost, one year or less | 239.4 | |
Amortized cost, one to five years | 433.4 | |
Amortized cost, five to ten years | 4.2 | |
Amortized cost, over ten years | 0 | |
AMORTIZED COST | 677 | 804.3 |
Held to Maturity - Fair Value | ||
Fair value, one year or less | 239.7 | |
Fair value, one to five years | 433.9 | |
Fair value, five to ten years | 4.3 | |
Fair value, over ten years | 0 | |
FAIR VALUE | 677.9 | 804.7 |
Commercial Mortgage-Backed | ||
Available for Sale - Amortized Cost | ||
Amortized cost, one year or less | 12 | |
Amortized cost, one to five years | 413.5 | |
Amortized cost, five to ten years | 526.7 | |
Amortized cost, over ten years | 0 | |
AMORTIZED COST | 952.2 | 769.9 |
Available for Sale - Fair Value | ||
Fair value, one year or less | 12.1 | |
Fair value, one to five years | 441.2 | |
Fair value, five to ten years | 578.5 | |
Fair value, over ten years | 0 | |
Total | 1,031.8 | 797.7 |
Other | ||
Available for Sale - Amortized Cost | ||
AMORTIZED COST | 9 | |
Available for Sale - Fair Value | ||
Total | 9 | |
Held to Maturity - Amortized Cost | ||
Amortized cost, one year or less | 36.6 | |
Amortized cost, one to five years | 247.7 | |
Amortized cost, five to ten years | 53.7 | |
Amortized cost, over ten years | 116.6 | |
AMORTIZED COST | 454.6 | 291.1 |
Held to Maturity - Fair Value | ||
Fair value, one year or less | 36 | |
Fair value, one to five years | 230.3 | |
Fair value, five to ten years | 48.2 | |
Fair value, over ten years | 64.7 | |
FAIR VALUE | $ 379.2 | $ 217.9 |
Securities (Securities with Unr
Securities (Securities with Unrealized Losses) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
FAIR VALUE | ||
Less Than 12 Months, Fair Value | $ 2,995.7 | $ 7,850.3 |
12 Months or Longer, Fair Value | 3,370.9 | 10,615.2 |
Total, Fair Value | 6,366.6 | 18,465.5 |
UNREALIZED LOSSES | ||
Less Than 12 Months, Unrealized Losses | 15.3 | 57 |
12 Months or Longer, Unrealized Losses | 16 | 51.6 |
Total, Unrealized Losses | 31.3 | 108.6 |
U.S. Government | ||
FAIR VALUE | ||
Less Than 12 Months, Fair Value | 252.2 | |
12 Months or Longer, Fair Value | 899.7 | |
Total, Fair Value | 1,151.9 | |
UNREALIZED LOSSES | ||
Less Than 12 Months, Unrealized Losses | 2.8 | |
12 Months or Longer, Unrealized Losses | 2.3 | |
Total, Unrealized Losses | 5.1 | |
Obligations of States and Political Subdivisions | ||
FAIR VALUE | ||
Less Than 12 Months, Fair Value | 52.3 | 902.4 |
12 Months or Longer, Fair Value | 0 | 0 |
Total, Fair Value | 52.3 | 902.4 |
UNREALIZED LOSSES | ||
Less Than 12 Months, Unrealized Losses | 0.1 | 13.3 |
12 Months or Longer, Unrealized Losses | 0 | 0 |
Total, Unrealized Losses | 0.1 | 13.3 |
Government Sponsored Agency | ||
FAIR VALUE | ||
Less Than 12 Months, Fair Value | 2,402.3 | 5,405 |
12 Months or Longer, Fair Value | 2,528.7 | 7,818.4 |
Total, Fair Value | 4,931 | 13,223.4 |
UNREALIZED LOSSES | ||
Less Than 12 Months, Unrealized Losses | 13.6 | 35.6 |
12 Months or Longer, Unrealized Losses | 13.3 | 42.5 |
Total, Unrealized Losses | 26.9 | 78.1 |
Non-U.S. Government | ||
FAIR VALUE | ||
Less Than 12 Months, Fair Value | 90.5 | |
12 Months or Longer, Fair Value | 0 | |
Total, Fair Value | 90.5 | |
UNREALIZED LOSSES | ||
Less Than 12 Months, Unrealized Losses | 0.7 | |
12 Months or Longer, Unrealized Losses | 0 | |
Total, Unrealized Losses | 0.7 | |
Corporate Debt | ||
FAIR VALUE | ||
Less Than 12 Months, Fair Value | 66.6 | 279.3 |
12 Months or Longer, Fair Value | 0 | 492.7 |
Total, Fair Value | 66.6 | 772 |
UNREALIZED LOSSES | ||
Less Than 12 Months, Unrealized Losses | 0.1 | 1.1 |
12 Months or Longer, Unrealized Losses | 0 | 2.9 |
Total, Unrealized Losses | 0.1 | 4 |
Covered Bonds | ||
FAIR VALUE | ||
Less Than 12 Months, Fair Value | 138.7 | |
12 Months or Longer, Fair Value | 25 | |
Total, Fair Value | 163.7 | |
UNREALIZED LOSSES | ||
Less Than 12 Months, Unrealized Losses | 0.7 | |
12 Months or Longer, Unrealized Losses | 0.1 | |
Total, Unrealized Losses | 0.8 | |
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | ||
FAIR VALUE | ||
Less Than 12 Months, Fair Value | 162.8 | 217.5 |
12 Months or Longer, Fair Value | 49.9 | 155.2 |
Total, Fair Value | 212.7 | 372.7 |
UNREALIZED LOSSES | ||
Less Than 12 Months, Unrealized Losses | 0.5 | 1 |
12 Months or Longer, Unrealized Losses | 0.1 | 0.1 |
Total, Unrealized Losses | 0.6 | 1.1 |
Other Asset-Backed | ||
FAIR VALUE | ||
Less Than 12 Months, Fair Value | 176.8 | 592.4 |
12 Months or Longer, Fair Value | 792.3 | 1,164.9 |
Total, Fair Value | 969.1 | 1,757.3 |
UNREALIZED LOSSES | ||
Less Than 12 Months, Unrealized Losses | 0.2 | 1.8 |
12 Months or Longer, Unrealized Losses | 2.6 | 3.5 |
Total, Unrealized Losses | 2.8 | 5.3 |
Commercial Mortgage-Backed | ||
FAIR VALUE | ||
Less Than 12 Months, Fair Value | 44.4 | 62.8 |
12 Months or Longer, Fair Value | 0 | 59.3 |
Total, Fair Value | 44.4 | 122.1 |
UNREALIZED LOSSES | ||
Less Than 12 Months, Unrealized Losses | 0.1 | 0.7 |
12 Months or Longer, Unrealized Losses | 0 | 0.2 |
Total, Unrealized Losses | $ 0.1 | $ 0.9 |
Securities (Narrative) (Details
Securities (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)investment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Number of securities in an unrealized loss position | investment | 412 | ||
Total fair value | $ 6,400,000,000 | ||
Total unrealized losses | 31,300,000 | ||
Provision for credit losses | 125,000,000 | $ (14,500,000) | $ (14,500,000) |
Held to Maturity | 17,791,100,000 | 12,284,500,000 | |
Debt Securities, held-to-maturity, unrealized loss position, fair value | 76,500,000 | ||
Transferred from available for sale to held to maturity | $ 301,500,000 | 160,800,000 | |
Percentage of debt securities, held-to-maturity, portfolio | 1 | ||
Gross proceeds from sale of securities | $ 879,900,000 | 1,200,000,000 | $ 307,300,000 |
Moodys And Standard Poors A Or Higher Rating | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Percentage of debt securities, held-to-maturity, portfolio | 0.93 | ||
NOT RATED | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Held to Maturity | $ 1,261,800,000 | ||
Percentage of debt securities, held-to-maturity, portfolio | 0.07 | ||
Government Sponsored Agency | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Total unrealized losses | $ 26,900,000 | ||
Held to Maturity | 3,000,000 | 4,100,000 | |
Government Sponsored Agency | NOT RATED | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Held to Maturity | 0 | ||
Other Asset-Backed | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Total unrealized losses | 2,800,000 | ||
Held to Maturity | 677,000,000 | 804,300,000 | |
Other Asset-Backed | NOT RATED | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Held to Maturity | $ 0 | ||
Corporate Debt | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Percent of corporate debt portfolio | 16.00% | ||
Provision for credit losses | $ 0 | ||
Held to Maturity | 588,000,000 | $ 405,100,000 | |
Corporate Debt | NOT RATED | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Held to Maturity | $ 0 |
Securities (Reconciliation of_2
Securities (Reconciliation of Amortized Cost to Fair Value of Securities Held to Maturity) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Held-to-maturity Securities [Line Items] | ||
AMORTIZED COST | $ 17,791.1 | $ 12,284.5 |
GROSS UNREALIZED GAINS | 84.3 | 45.7 |
GROSS UNREALIZED LOSSES | 78 | 80.9 |
FAIR VALUE | 17,797.4 | 12,249.3 |
U.S. Government | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
AMORTIZED COST | 90 | 138.8 |
GROSS UNREALIZED GAINS | 0 | 0 |
GROSS UNREALIZED LOSSES | 0 | 0 |
FAIR VALUE | 90 | 138.8 |
Obligations of States and Political Subdivisions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
AMORTIZED COST | 2.1 | 10.1 |
GROSS UNREALIZED GAINS | 0.1 | 0.2 |
GROSS UNREALIZED LOSSES | 0 | 0 |
FAIR VALUE | 2.2 | 10.3 |
Government Sponsored Agency | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
AMORTIZED COST | 3 | 4.1 |
GROSS UNREALIZED GAINS | 0.3 | 0.2 |
GROSS UNREALIZED LOSSES | 0 | 0 |
FAIR VALUE | 3.3 | 4.3 |
Non-U.S. Government | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
AMORTIZED COST | 8,336.6 | 4,076 |
GROSS UNREALIZED GAINS | 7.3 | 5.3 |
GROSS UNREALIZED LOSSES | 0.2 | 2.5 |
FAIR VALUE | 8,343.7 | 4,078.8 |
Corporate Debt | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
AMORTIZED COST | 588 | 405.1 |
GROSS UNREALIZED GAINS | 6.5 | 1.4 |
GROSS UNREALIZED LOSSES | 0.1 | 0.3 |
FAIR VALUE | 594.4 | 406.2 |
Covered Bonds | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
AMORTIZED COST | 3,184.6 | 3,006.7 |
GROSS UNREALIZED GAINS | 24.6 | 16.1 |
GROSS UNREALIZED LOSSES | 0.3 | 2.4 |
FAIR VALUE | 3,208.9 | 3,020.4 |
Certificates of Deposit | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
AMORTIZED COST | 807.2 | 262.9 |
GROSS UNREALIZED GAINS | 0 | 0 |
GROSS UNREALIZED LOSSES | 0 | 0 |
FAIR VALUE | 807.2 | 262.9 |
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
AMORTIZED COST | 3,648 | 3,285.4 |
GROSS UNREALIZED GAINS | 43.5 | 21.7 |
GROSS UNREALIZED LOSSES | 0.9 | 2.1 |
FAIR VALUE | 3,690.6 | 3,305 |
Other Asset-Backed | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
AMORTIZED COST | 677 | 804.3 |
GROSS UNREALIZED GAINS | 0.9 | 0.7 |
GROSS UNREALIZED LOSSES | 0 | 0.3 |
FAIR VALUE | 677.9 | 804.7 |
Other | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
AMORTIZED COST | 454.6 | 291.1 |
GROSS UNREALIZED GAINS | 1.1 | 0.1 |
GROSS UNREALIZED LOSSES | 76.5 | 73.3 |
FAIR VALUE | $ 379.2 | $ 217.9 |
Securities (Credit Quality Indi
Securities (Credit Quality Indicators) (Details) $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | $ 17,791.1 | $ 12,284.5 |
Percentage of debt securities, held-to-maturity, portfolio | 1 | |
AAA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | $ 6,869.1 | |
Percentage of debt securities, held-to-maturity, portfolio | 0.39 | |
AA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | $ 2,674.6 | |
Percentage of debt securities, held-to-maturity, portfolio | 0.15 | |
A | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | $ 6,935.7 | |
Percentage of debt securities, held-to-maturity, portfolio | 0.39 | |
BBB | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | $ 49.9 | |
Percentage of debt securities, held-to-maturity, portfolio | 0 | |
NOT RATED | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | $ 1,261.8 | |
Percentage of debt securities, held-to-maturity, portfolio | 0.07 | |
U.S. Government | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | $ 90 | 138.8 |
U.S. Government | AAA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 90 | |
U.S. Government | AA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
U.S. Government | A | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
U.S. Government | BBB | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
U.S. Government | NOT RATED | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Obligations of States and Political Subdivisions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 2.1 | 10.1 |
Obligations of States and Political Subdivisions | AAA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Obligations of States and Political Subdivisions | AA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 1 | |
Obligations of States and Political Subdivisions | A | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Obligations of States and Political Subdivisions | BBB | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 1.1 | |
Obligations of States and Political Subdivisions | NOT RATED | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Government Sponsored Agency | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 3 | 4.1 |
Government Sponsored Agency | AAA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 3 | |
Government Sponsored Agency | AA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Government Sponsored Agency | A | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Government Sponsored Agency | BBB | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Government Sponsored Agency | NOT RATED | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Non-U.S. Government | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 8,336.6 | 4,076 |
Non-U.S. Government | AAA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 319.8 | |
Non-U.S. Government | AA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 1,337.4 | |
Non-U.S. Government | A | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 6,630.6 | |
Non-U.S. Government | BBB | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 48.8 | |
Non-U.S. Government | NOT RATED | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Corporate Debt | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 588 | 405.1 |
Corporate Debt | AAA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 3.8 | |
Corporate Debt | AA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 279.1 | |
Corporate Debt | A | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 305.1 | |
Corporate Debt | BBB | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Corporate Debt | NOT RATED | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Covered Bonds | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 3,184.6 | 3,006.7 |
Covered Bonds | AAA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 3,184.6 | |
Covered Bonds | AA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Covered Bonds | A | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Covered Bonds | BBB | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Covered Bonds | NOT RATED | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Certificates of Deposit | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 807.2 | 262.9 |
Certificates of Deposit | AAA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Certificates of Deposit | AA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Certificates of Deposit | A | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Certificates of Deposit | BBB | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Certificates of Deposit | NOT RATED | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 807.2 | |
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 3,648 | 3,285.4 |
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | AAA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 2,590.9 | |
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | AA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 1,057.1 | |
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | A | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | BBB | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | NOT RATED | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Other Asset-Backed | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 677 | 804.3 |
Other Asset-Backed | AAA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 677 | |
Other Asset-Backed | AA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Other Asset-Backed | A | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Other Asset-Backed | BBB | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Other Asset-Backed | NOT RATED | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Other | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 454.6 | $ 291.1 |
Other | AAA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Other | AA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Other | A | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Other | BBB | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | 0 | |
Other | NOT RATED | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to Maturity | $ 454.6 |
Securities (Investment Security
Securities (Investment Security Gains and Losses) (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||||
Gross Realized Debt Securities Gains | $ 3.4 | $ 2.4 | $ 1.5 | |
Gross Realized Debt Securities Losses | (3.8) | (3.5) | (2) | |
Changes in Other-Than-Temporary Impairment Losses | $ (4.4) | 0 | (0.3) | (0.5) |
Net Investment Security (Losses) Gains | $ (0.4) | $ (1.4) | $ (1) |
Securities Purchased Under Ag_3
Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase - Securities Purchased under Agreements to Resell (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Balance at December 31 | $ 1,596.5 | $ 707.8 |
Average Balance During the Year | $ 1,253.1 | $ 835 |
Average Interest Rate Earned During the Year | 0.31% | 2.10% |
Maximum Month-End Balance During the Year | $ 2,055.6 | $ 1,290 |
Securities Purchased Under Ag_4
Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase - Securities Sold under Agreements to Repurchase (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Balance at December 31 | $ 39.8 | $ 489.7 |
Average Balance During the Year | $ 218.3 | $ 339 |
Average Interest Rate Paid During the Year | 0.47% | 1.89% |
Maximum Month-End Balance During the Year | $ 269.8 | $ 489.7 |
Securities Purchased Under Ag_5
Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase - Repurchase Agreements Accounted for as Secured Borrowings (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 28 | $ 920.4 | $ 693.9 |
Maturity overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total borrowings, repurchase agreements | 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 | 0 | 0 |
Maturity overnight and continuous | U.S. Treasury and Agency Securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total borrowings, repurchase agreements | $ 39.8 | $ 489.7 |
Loans and Leases (Loans and Lea
Loans and Leases (Loans and Leases) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans and Leases | $ 33,759.7 | $ 31,409.6 |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans and Leases | 15,262 | 14,001.3 |
Commercial | Commercial and Institutional | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans and Leases | 10,058.3 | 9,091.1 |
Commercial | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans and Leases | 3,558.4 | 3,104.3 |
Commercial | Non-U.S. | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans and Leases | 1,345.7 | 1,576.3 |
Commercial | Lease Financing, net | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans and Leases | 11.4 | 65.6 |
Commercial | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans and Leases | 288.2 | 164 |
Personal | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans and Leases | 18,497.7 | 17,408.3 |
Personal | Private Client | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans and Leases | 11,815.1 | 11,071.4 |
Personal | Residential Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans and Leases | 6,035.7 | 6,095 |
Personal | Non-U.S. | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans and Leases | 597.9 | 174.8 |
Personal | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans and Leases | $ 49 | $ 67.1 |
Loans and Leases (Narrative) (D
Loans and Leases (Narrative) (Details) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020USD ($)contract | Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Draw period for credit line products | 10 years | |||
Total loans and leases | $ 33,759,700,000 | $ 31,409,600,000 | ||
Other U.S. loans and non-U.S. loans, short duration advances | 1,100,000,000 | 1,100,000,000 | ||
Demand deposits | 26,400,000 | 90,400,000 | ||
Financing Receivable, Nonaccrual, Interest Income | 4,600,000 | 7,300,000 | $ 8,000,000 | |
Financing receivable, nonaccrual troubled debt restructuring | 38,900,000 | 54,900,000 | ||
Financing receivable, troubled debt restructuring | 29,300,000 | 27,700,000 | ||
Financing receivable, troubled debt restructuring, commitment to lend | $ 10,400,000 | $ 8,200,000 | ||
Financing receivable, troubled debt restructuring, subsequent default, number of contracts | loan | 0 | 5 | ||
Impaired financing receivable, recorded investment | $ 5,800,000 | |||
Impaired financing receivable, unpaid principal balance | 6,100,000 | |||
Other real estate, foreclosed assets, and repossessed assets | $ 700,000 | 3,200,000 | ||
Consumer loans collateralized by residential properties in foreclosure | $ 7,900,000 | 18,100,000 | ||
Paycheck Protection Program | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of loans approved for forgiveness | loan | 41 | |||
Loan processing fee | $ 2,600,000 | |||
Loans Approved For Forgiveness | $ 6,700,000 | |||
Number Of Loans Fully Forgiven | loan | 36 | |||
Personal | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans and leases | $ 18,497,700,000 | 17,408,300,000 | ||
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans and leases | $ 15,262,000,000 | 14,001,300,000 | ||
CARES Act | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivable, non-TDR modifications, number of contracts paid off | contract | 57 | |||
Financing receivable, non-TDR modifications, recorded investment paid off | $ 63,000,000 | |||
Residential Real Estate | Personal | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Lower limit of generally required loan to collateral value for residential real estate loans | 65.00% | |||
Upper limit of generally required loan to collateral value for residential real estate loans | 80.00% | |||
Total loans and leases | $ 6,035,700,000 | 6,095,000,000 | ||
Home Equity Loan | Personal | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans and leases | $ 304,400,000 | $ 448,500,000 | ||
Loans held by Northern trust | 97.00% | 97.00% | ||
Mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans and leases | $ 3,053,500,000 | $ 2,672,200,000 | ||
Loans held for sale | 0 | 0 | ||
Leases | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held for sale | 0 | 53,600,000 | ||
Commercial and Institutional | Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans and leases | 10,058,300,000 | $ 9,091,100,000 | ||
Commercial and Institutional | Commercial | Paycheck Protection Program | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans and leases | $ 207,100,000 | |||
Financing receivable, number of contracts | loan | 1,087,000,000 | |||
Financing receivable, average balance per loan | $ 200,000 |
Loans and Leases (Direct Financ
Loans and Leases (Direct Finance and Leveraged Leases) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Direct Finance Leases | ||
Lease Receivable | $ 0 | $ 1.5 |
Residual Value | 0 | 21.3 |
Initial Direct Costs | 0 | 0.2 |
Unearned Income | 0 | 0 |
Investment in Direct Finance Leases | 0 | 23 |
Leveraged Leases | ||
Net Rental Receivable | 11.8 | 19.1 |
Residual Value | 0 | 33.1 |
Unearned Income | (0.4) | (9.6) |
Investment in Leveraged Leases | 11.4 | 42.6 |
Lease Financing, net | $ 11.4 | $ 65.6 |
Loans and Leases (Credit Qualit
Loans and Leases (Credit Quality Indicator At Amortized Cost By Origination Year) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | $ 7,448.6 | |
2019 | 3,667.9 | |
2018 | 1,352.6 | |
2017 | 1,123.1 | |
2016 | 1,254.8 | |
PRIOR | 3,128.5 | |
REVOLVING LOANS | 15,453.6 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 330.6 | |
Lease Financing, net | 33,759.7 | $ 31,409.6 |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 3,772.7 | |
2019 | 2,187.7 | |
2018 | 990.3 | |
2017 | 725 | |
2016 | 749.9 | |
PRIOR | 1,285.8 | |
REVOLVING LOANS | 5,490.9 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 59.7 | |
Lease Financing, net | 15,262 | 14,001.3 |
Commercial | Commercial and Institutional | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 1,491.5 | |
2019 | 1,170.9 | |
2018 | 596 | |
2017 | 544.2 | |
2016 | 553.6 | |
PRIOR | 622.1 | |
REVOLVING LOANS | 5,042.2 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 37.8 | |
Lease Financing, net | 10,058.3 | 9,091.1 |
Commercial | Commercial and Institutional | 1 to 3 Category | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 663.8 | |
2019 | 546 | |
2018 | 204.6 | |
2017 | 96 | |
2016 | 396 | |
PRIOR | 448.8 | |
REVOLVING LOANS | 3,742.4 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 5.5 | |
Lease Financing, net | 6,103.1 | |
Commercial | Commercial and Institutional | 4 to 5 Category | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 793.4 | |
2019 | 505.1 | |
2018 | 354.1 | |
2017 | 405.4 | |
2016 | 134.6 | |
PRIOR | 167.3 | |
REVOLVING LOANS | 1,238.7 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 32.3 | |
Lease Financing, net | 3,630.9 | |
Commercial | Commercial and Institutional | 6 to 9 Category | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 34.3 | |
2019 | 119.8 | |
2018 | 37.3 | |
2017 | 42.8 | |
2016 | 23 | |
PRIOR | 6 | |
REVOLVING LOANS | 61.1 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 0 | |
Lease Financing, net | 324.3 | |
Commercial | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 1,124.7 | |
2019 | 976.2 | |
2018 | 392.3 | |
2017 | 169.7 | |
2016 | 196.3 | |
PRIOR | 494.4 | |
REVOLVING LOANS | 184.7 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 20.1 | |
Lease Financing, net | 3,558.4 | 3,104.3 |
Commercial | Commercial Real Estate | 1 to 3 Category | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 406.3 | |
2019 | 109.2 | |
2018 | 27.6 | |
2017 | 36.5 | |
2016 | 11.8 | |
PRIOR | 99.4 | |
REVOLVING LOANS | 124.3 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 8.7 | |
Lease Financing, net | 823.8 | |
Commercial | Commercial Real Estate | 4 to 5 Category | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 703.1 | |
2019 | 811.8 | |
2018 | 332.7 | |
2017 | 107.4 | |
2016 | 184.5 | |
PRIOR | 382.8 | |
REVOLVING LOANS | 60.4 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 11.4 | |
Lease Financing, net | 2,594.1 | |
Commercial | Commercial Real Estate | 6 to 9 Category | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 15.3 | |
2019 | 55.2 | |
2018 | 32 | |
2017 | 25.8 | |
2016 | 0 | |
PRIOR | 12.2 | |
REVOLVING LOANS | 0 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 0 | |
Lease Financing, net | 140.5 | |
Commercial | Non-U.S. | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 868.3 | |
2019 | 40.6 | |
2018 | 2 | |
2017 | 11.1 | |
2016 | 0 | |
PRIOR | 157.9 | |
REVOLVING LOANS | 264 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 1.8 | |
Lease Financing, net | 1,345.7 | 1,576.3 |
Commercial | Non-U.S. | 1 to 3 Category | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 555.2 | |
2019 | 16.8 | |
2018 | 0 | |
2017 | 11.1 | |
2016 | 0 | |
PRIOR | 0 | |
REVOLVING LOANS | 78.5 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 0 | |
Lease Financing, net | 661.6 | |
Commercial | Non-U.S. | 4 to 5 Category | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 313.1 | |
2019 | 0.7 | |
2018 | 2 | |
2017 | 0 | |
2016 | 0 | |
PRIOR | 157.9 | |
REVOLVING LOANS | 39.2 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 1.8 | |
Lease Financing, net | 514.7 | |
Commercial | Non-U.S. | 6 to 9 Category | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 23.1 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
PRIOR | 0 | |
REVOLVING LOANS | 146.3 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 0 | |
Lease Financing, net | 169.4 | |
Commercial | Lease Financing, net | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
PRIOR | 11.4 | |
REVOLVING LOANS | 0 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 0 | |
Lease Financing, net | 11.4 | 65.6 |
Commercial | Lease Financing, net | 4 to 5 Category | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
PRIOR | 11.4 | |
REVOLVING LOANS | 0 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 0 | |
Lease Financing, net | 11.4 | |
Commercial | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 288.2 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
PRIOR | 0 | |
REVOLVING LOANS | 0 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 0 | |
Lease Financing, net | 288.2 | 164 |
Commercial | Other | 1 to 3 Category | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 81.7 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
PRIOR | 0 | |
REVOLVING LOANS | 0 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 0 | |
Lease Financing, net | 81.7 | |
Commercial | Other | 4 to 5 Category | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 206.5 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
PRIOR | 0 | |
REVOLVING LOANS | 0 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 0 | |
Lease Financing, net | 206.5 | |
Personal | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 3,675.9 | |
2019 | 1,480.2 | |
2018 | 362.3 | |
2017 | 398.1 | |
2016 | 504.9 | |
PRIOR | 1,842.7 | |
REVOLVING LOANS | 9,962.7 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 270.9 | |
Lease Financing, net | 18,497.7 | 17,408.3 |
Personal | Private Client | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 1,166.7 | |
2019 | 754.1 | |
2018 | 191.1 | |
2017 | 124 | |
2016 | 87.7 | |
PRIOR | 213.6 | |
REVOLVING LOANS | 9,021.2 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 256.7 | |
Lease Financing, net | 11,815.1 | 11,071.4 |
Personal | Private Client | 1 to 3 Category | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 668.6 | |
2019 | 273.7 | |
2018 | 51.7 | |
2017 | 60.4 | |
2016 | 10.2 | |
PRIOR | 136.1 | |
REVOLVING LOANS | 5,392.8 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 47.9 | |
Lease Financing, net | 6,641.4 | |
Personal | Private Client | 4 to 5 Category | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 492.1 | |
2019 | 479.9 | |
2018 | 117.3 | |
2017 | 60.4 | |
2016 | 77.5 | |
PRIOR | 77.5 | |
REVOLVING LOANS | 3,564.7 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 207.3 | |
Lease Financing, net | 5,076.7 | |
Personal | Private Client | 6 to 9 Category | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 6 | |
2019 | 0.5 | |
2018 | 22.1 | |
2017 | 3.2 | |
2016 | 0 | |
PRIOR | 0 | |
REVOLVING LOANS | 63.7 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 1.5 | |
Lease Financing, net | 97 | |
Personal | Residential Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 2,424.2 | |
2019 | 685.2 | |
2018 | 159.4 | |
2017 | 273.6 | |
2016 | 416.7 | |
PRIOR | 1,619.1 | |
REVOLVING LOANS | 448.4 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 9.1 | |
Lease Financing, net | 6,035.7 | 6,095 |
Personal | Residential Real Estate | 1 to 3 Category | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 1,554.3 | |
2019 | 317.4 | |
2018 | 42.9 | |
2017 | 109.9 | |
2016 | 205.1 | |
PRIOR | 627.8 | |
REVOLVING LOANS | 152.8 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 1.7 | |
Lease Financing, net | 3,011.9 | |
Personal | Residential Real Estate | 4 to 5 Category | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 854.6 | |
2019 | 359.5 | |
2018 | 115.8 | |
2017 | 163.2 | |
2016 | 209.7 | |
PRIOR | 896.5 | |
REVOLVING LOANS | 273.1 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 7.4 | |
Lease Financing, net | 2,879.8 | |
Personal | Residential Real Estate | 6 to 9 Category | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 15.3 | |
2019 | 8.3 | |
2018 | 0.7 | |
2017 | 0.5 | |
2016 | 1.9 | |
PRIOR | 94.8 | |
REVOLVING LOANS | 22.5 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 0 | |
Lease Financing, net | 144 | |
Personal | Non-U.S. | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 36 | |
2019 | 40.9 | |
2018 | 11.8 | |
2017 | 0.5 | |
2016 | 0.5 | |
PRIOR | 10 | |
REVOLVING LOANS | 493.1 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 5.1 | |
Lease Financing, net | 597.9 | 174.8 |
Personal | Non-U.S. | 1 to 3 Category | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 23.3 | |
2019 | 14.9 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
PRIOR | 1.8 | |
REVOLVING LOANS | 275.6 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 0 | |
Lease Financing, net | 315.6 | |
Personal | Non-U.S. | 4 to 5 Category | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 12.7 | |
2019 | 26 | |
2018 | 11.8 | |
2017 | 0.5 | |
2016 | 0.5 | |
PRIOR | 7.9 | |
REVOLVING LOANS | 217.5 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 5.1 | |
Lease Financing, net | 282 | |
Personal | Non-U.S. | 6 to 9 Category | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
PRIOR | 0.3 | |
REVOLVING LOANS | 0 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 0 | |
Lease Financing, net | 0.3 | |
Personal | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 49 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
PRIOR | 0 | |
REVOLVING LOANS | 0 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 0 | |
Lease Financing, net | 49 | $ 67.1 |
Personal | Other | 1 to 3 Category | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 34.6 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
PRIOR | 0 | |
REVOLVING LOANS | 0 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 0 | |
Lease Financing, net | 34.6 | |
Personal | Other | 4 to 5 Category | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 14.4 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
PRIOR | 0 | |
REVOLVING LOANS | 0 | |
REVOLVING LOANS CONVERTED TO TERM LOANS | 0 | |
Lease Financing, net | $ 14.4 |
Loans and Leases (Delinquency S
Loans and Leases (Delinquency Status) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
CURRENT | $ 33,395.6 | $ 31,230.6 |
TOTAL ACCRUAL | 33,628 | 31,326 |
NONACCRUAL | 131.7 | 83.6 |
Lease Financing, net | 33,759.7 | 31,409.6 |
NONACCRUAL WITH NO ALLOWANCE | 98.1 | 70.6 |
Other Real Estate Owned | 0.7 | 3.2 |
Total Nonaccrual Assets | 132.4 | 86.8 |
30 – 59 DAYS PAST DUE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 209.5 | 59.6 |
60 – 89 DAYS PAST DUE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 14 | 28.4 |
90 DAYS OR MORE PAST DUE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 8.9 | 7.4 |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
CURRENT | 15,038.5 | 13,963.8 |
TOTAL ACCRUAL | 15,195.4 | 13,990.1 |
NONACCRUAL | 66.6 | 11.2 |
Lease Financing, net | 15,262 | 14,001.3 |
NONACCRUAL WITH NO ALLOWANCE | 41.4 | 3.2 |
Commercial | Commercial and Institutional | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
CURRENT | 9,877 | 9,068.3 |
TOTAL ACCRUAL | 10,031.9 | 9,083.5 |
NONACCRUAL | 26.4 | 7.6 |
Lease Financing, net | 10,058.3 | 9,091.1 |
NONACCRUAL WITH NO ALLOWANCE | 9.1 | 0.8 |
Commercial | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
CURRENT | 3,516.2 | 3,089.6 |
TOTAL ACCRUAL | 3,518.2 | 3,100.7 |
NONACCRUAL | 40.2 | 3.6 |
Lease Financing, net | 3,558.4 | 3,104.3 |
NONACCRUAL WITH NO ALLOWANCE | 32.3 | 2.4 |
Commercial | Non-U.S. | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
CURRENT | 1,345.7 | 1,576.3 |
TOTAL ACCRUAL | 1,345.7 | 1,576.3 |
NONACCRUAL | 0 | 0 |
Lease Financing, net | 1,345.7 | 1,576.3 |
NONACCRUAL WITH NO ALLOWANCE | 0 | 0 |
Commercial | Lease Financing, net | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
CURRENT | 11.4 | 65.6 |
TOTAL ACCRUAL | 11.4 | 65.6 |
NONACCRUAL | 0 | 0 |
Lease Financing, net | 11.4 | 65.6 |
NONACCRUAL WITH NO ALLOWANCE | 0 | 0 |
Commercial | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
CURRENT | 288.2 | 164 |
TOTAL ACCRUAL | 288.2 | 164 |
NONACCRUAL | 0 | 0 |
Lease Financing, net | 288.2 | 164 |
NONACCRUAL WITH NO ALLOWANCE | 0 | 0 |
Commercial | 30 – 59 DAYS PAST DUE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 155.7 | 6.4 |
Commercial | 30 – 59 DAYS PAST DUE | Commercial and Institutional | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 153.7 | 4.1 |
Commercial | 30 – 59 DAYS PAST DUE | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 2 | 2.3 |
Commercial | 30 – 59 DAYS PAST DUE | Non-U.S. | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 0 | 0 |
Commercial | 30 – 59 DAYS PAST DUE | Lease Financing, net | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 0 | 0 |
Commercial | 30 – 59 DAYS PAST DUE | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 0 | 0 |
Commercial | 60 – 89 DAYS PAST DUE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 1.2 | 14 |
Commercial | 60 – 89 DAYS PAST DUE | Commercial and Institutional | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 1.2 | 9.9 |
Commercial | 60 – 89 DAYS PAST DUE | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 0 | 4.1 |
Commercial | 60 – 89 DAYS PAST DUE | Non-U.S. | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 0 | 0 |
Commercial | 60 – 89 DAYS PAST DUE | Lease Financing, net | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 0 | 0 |
Commercial | 60 – 89 DAYS PAST DUE | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 0 | 0 |
Commercial | 90 DAYS OR MORE PAST DUE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 0 | 5.9 |
Commercial | 90 DAYS OR MORE PAST DUE | Commercial and Institutional | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 0 | 1.2 |
Commercial | 90 DAYS OR MORE PAST DUE | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 0 | 4.7 |
Commercial | 90 DAYS OR MORE PAST DUE | Non-U.S. | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 0 | 0 |
Commercial | 90 DAYS OR MORE PAST DUE | Lease Financing, net | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 0 | 0 |
Commercial | 90 DAYS OR MORE PAST DUE | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 0 | 0 |
Personal | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
CURRENT | 18,357.1 | 17,266.8 |
TOTAL ACCRUAL | 18,432.6 | 17,335.9 |
NONACCRUAL | 65.1 | 72.4 |
Lease Financing, net | 18,497.7 | 17,408.3 |
NONACCRUAL WITH NO ALLOWANCE | 56.7 | 67.4 |
Personal | Private Client | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
CURRENT | 11,765.4 | 11,027.9 |
TOTAL ACCRUAL | 11,812.2 | 11,070.9 |
NONACCRUAL | 2.9 | 0.5 |
Lease Financing, net | 11,815.1 | 11,071.4 |
NONACCRUAL WITH NO ALLOWANCE | 2.9 | 0.5 |
Personal | Residential Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
CURRENT | 5,946 | 5,997.7 |
TOTAL ACCRUAL | 5,973.5 | 6,023.6 |
NONACCRUAL | 62.2 | 71.4 |
Lease Financing, net | 6,035.7 | 6,095 |
NONACCRUAL WITH NO ALLOWANCE | 53.8 | 66.4 |
Personal | Non-U.S. | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
CURRENT | 596.7 | 174.1 |
TOTAL ACCRUAL | 597.9 | 174.3 |
NONACCRUAL | 0 | 0.5 |
Lease Financing, net | 597.9 | 174.8 |
NONACCRUAL WITH NO ALLOWANCE | 0 | 0.5 |
Personal | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
CURRENT | 49 | 67.1 |
TOTAL ACCRUAL | 49 | 67.1 |
NONACCRUAL | 0 | 0 |
Lease Financing, net | 49 | 67.1 |
NONACCRUAL WITH NO ALLOWANCE | 0 | 0 |
Personal | 30 – 59 DAYS PAST DUE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 53.8 | 53.2 |
Personal | 30 – 59 DAYS PAST DUE | Private Client | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 29.1 | 33.2 |
Personal | 30 – 59 DAYS PAST DUE | Residential Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 23.5 | 19.8 |
Personal | 30 – 59 DAYS PAST DUE | Non-U.S. | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 1.2 | 0.2 |
Personal | 30 – 59 DAYS PAST DUE | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 0 | 0 |
Personal | 60 – 89 DAYS PAST DUE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 12.8 | 14.4 |
Personal | 60 – 89 DAYS PAST DUE | Private Client | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 9.9 | 9.5 |
Personal | 60 – 89 DAYS PAST DUE | Residential Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 2.9 | 4.9 |
Personal | 60 – 89 DAYS PAST DUE | Non-U.S. | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 0 | 0 |
Personal | 60 – 89 DAYS PAST DUE | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 0 | 0 |
Personal | 90 DAYS OR MORE PAST DUE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 8.9 | 1.5 |
Personal | 90 DAYS OR MORE PAST DUE | Private Client | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 7.8 | 0.3 |
Personal | 90 DAYS OR MORE PAST DUE | Residential Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 1.1 | 1.2 |
Personal | 90 DAYS OR MORE PAST DUE | Non-U.S. | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | 0 | 0 |
Personal | 90 DAYS OR MORE PAST DUE | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past Due | $ 0 | $ 0 |
Loans and Leases (Troubled Debt
Loans and Leases (Troubled Debt Restructurings) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)contract | Dec. 31, 2019USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
NUMBER OF LOANS AND LEASES | contract | 25 | 48 |
RECORDED INVESTMENT | $ 40.5 | $ 44.9 |
UNPAID PRINCIPAL BALANCE | $ 41.2 | $ 47.6 |
Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
NUMBER OF LOANS AND LEASES | contract | 3 | 3 |
RECORDED INVESTMENT | $ 24.3 | $ 7.5 |
UNPAID PRINCIPAL BALANCE | $ 24.5 | $ 8.8 |
Commercial | Commercial and Institutional | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
NUMBER OF LOANS AND LEASES | contract | 3 | 1 |
RECORDED INVESTMENT | $ 24.3 | $ 7.5 |
UNPAID PRINCIPAL BALANCE | $ 24.5 | $ 8.8 |
Commercial | Commercial Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
NUMBER OF LOANS AND LEASES | contract | 2 | |
RECORDED INVESTMENT | $ 0 | |
UNPAID PRINCIPAL BALANCE | $ 0 | |
Personal | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
NUMBER OF LOANS AND LEASES | contract | 22 | 45 |
RECORDED INVESTMENT | $ 16.2 | $ 37.4 |
UNPAID PRINCIPAL BALANCE | $ 16.7 | $ 38.8 |
Personal | Residential Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
NUMBER OF LOANS AND LEASES | contract | 22 | 45 |
RECORDED INVESTMENT | $ 16.2 | $ 37.4 |
UNPAID PRINCIPAL BALANCE | $ 16.7 | $ 38.8 |
Loans and Leases (COVID-19 Loan
Loans and Leases (COVID-19 Loan Modifications Not Considered TDRS) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)contract | Dec. 31, 2019contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
NUMBER OF LOANS AND LEASES | contract | 25 | 48 |
CARES Act | Active Deferral | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
NUMBER OF LOANS AND LEASES | contract | 31,000,000 | |
LOAN VOLUME | $ 20.7 | |
DEFERRED PRINCIPAL AMOUNT | 0.2 | |
DEFERRED INTEREST AMOUNT | $ 0.2 | |
CARES Act | Completed Deferral | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
NUMBER OF LOANS AND LEASES | contract | 635,000,000 | |
LOAN VOLUME | $ 1,071.7 | |
DEFERRED PRINCIPAL AMOUNT | 1.7 | |
DEFERRED INTEREST AMOUNT | $ 8.7 | |
Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
NUMBER OF LOANS AND LEASES | contract | 3 | 3 |
Commercial | CARES Act | Active Deferral | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
NUMBER OF LOANS AND LEASES | contract | 2,000,000 | |
LOAN VOLUME | $ 6.7 | |
DEFERRED PRINCIPAL AMOUNT | 0 | |
DEFERRED INTEREST AMOUNT | $ 0 | |
Commercial | CARES Act | Completed Deferral | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
NUMBER OF LOANS AND LEASES | contract | 196,000,000 | |
LOAN VOLUME | $ 717.1 | |
DEFERRED PRINCIPAL AMOUNT | 0.1 | |
DEFERRED INTEREST AMOUNT | $ 5.4 | |
Commercial | Commercial and Institutional | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
NUMBER OF LOANS AND LEASES | contract | 3 | 1 |
Commercial | Commercial and Institutional | CARES Act | Active Deferral | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
NUMBER OF LOANS AND LEASES | contract | 1,000,000 | |
LOAN VOLUME | $ 6 | |
DEFERRED PRINCIPAL AMOUNT | 0 | |
DEFERRED INTEREST AMOUNT | $ 0 | |
Commercial | Commercial and Institutional | CARES Act | Completed Deferral | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
NUMBER OF LOANS AND LEASES | contract | 99,000,000 | |
LOAN VOLUME | $ 249.3 | |
DEFERRED PRINCIPAL AMOUNT | 0.1 | |
DEFERRED INTEREST AMOUNT | $ 2.2 | |
Commercial | Commercial Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
NUMBER OF LOANS AND LEASES | contract | 2 | |
Commercial | Commercial Real Estate | CARES Act | Active Deferral | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
NUMBER OF LOANS AND LEASES | contract | 1,000,000 | |
LOAN VOLUME | $ 0.7 | |
DEFERRED PRINCIPAL AMOUNT | 0 | |
DEFERRED INTEREST AMOUNT | $ 0 | |
Commercial | Commercial Real Estate | CARES Act | Completed Deferral | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
NUMBER OF LOANS AND LEASES | contract | 97,000,000 | |
LOAN VOLUME | $ 467.8 | |
DEFERRED PRINCIPAL AMOUNT | 0 | |
DEFERRED INTEREST AMOUNT | $ 3.2 | |
Personal | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
NUMBER OF LOANS AND LEASES | contract | 22 | 45 |
Personal | CARES Act | Active Deferral | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
NUMBER OF LOANS AND LEASES | contract | 29,000,000 | |
LOAN VOLUME | $ 14 | |
DEFERRED PRINCIPAL AMOUNT | 0.2 | |
DEFERRED INTEREST AMOUNT | $ 0.2 | |
Personal | CARES Act | Completed Deferral | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
NUMBER OF LOANS AND LEASES | contract | 439,000,000 | |
LOAN VOLUME | $ 354.6 | |
DEFERRED PRINCIPAL AMOUNT | 1.6 | |
DEFERRED INTEREST AMOUNT | $ 3.3 | |
Personal | Private Client | CARES Act | Active Deferral | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
NUMBER OF LOANS AND LEASES | contract | 8,000,000 | |
LOAN VOLUME | $ 8.9 | |
DEFERRED PRINCIPAL AMOUNT | 0.1 | |
DEFERRED INTEREST AMOUNT | $ 0.1 | |
Personal | Private Client | CARES Act | Completed Deferral | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
NUMBER OF LOANS AND LEASES | contract | 27,000,000 | |
LOAN VOLUME | $ 171.9 | |
DEFERRED PRINCIPAL AMOUNT | 0 | |
DEFERRED INTEREST AMOUNT | $ 1.1 | |
Personal | Residential Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
NUMBER OF LOANS AND LEASES | contract | 22 | 45 |
Personal | Residential Real Estate | CARES Act | Active Deferral | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
NUMBER OF LOANS AND LEASES | contract | 21,000,000 | |
LOAN VOLUME | $ 5.1 | |
DEFERRED PRINCIPAL AMOUNT | 0.1 | |
DEFERRED INTEREST AMOUNT | $ 0.1 | |
Personal | Residential Real Estate | CARES Act | Completed Deferral | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
NUMBER OF LOANS AND LEASES | contract | 412,000,000 | |
LOAN VOLUME | $ 182.7 | |
DEFERRED PRINCIPAL AMOUNT | 1.6 | |
DEFERRED INTEREST AMOUNT | $ 2.2 |
Allowance for Credit Losses (Na
Allowance for Credit Losses (Narrative) (Details) - USD ($) | Jan. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Allowance for credit loss | $ 190,700,000 | $ 104,500,000 | $ 112,600,000 | $ 131,200,000 | |
Decrease to stockholders equity | $ (11,688,300,000) | (11,091,000,000) | (10,508,300,000) | (10,216,200,000) | |
Time period used for projecting future conditions to estimate credit losses | 2 years | ||||
Other-than-temporary impairment loss, debt securities, portion recognized in earnings | $ 4,400,000 | $ 0 | 300,000 | 500,000 | |
Other financial assets, allowance for credit loss | 800,000 | 0 | |||
Other Financial Assets | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Financing receivable, accrued interest, writeoff | 0 | 0 | 0 | ||
Cumulative Effect Adjustment | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Allowance for credit loss | (2,200,000) | ||||
Decrease to stockholders equity | 10,100,000 | 4,500,000 | |||
Cumulative Effect Adjustment | Accounting Standards Update 2016-13 | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Allowance for credit loss | 13,700,000 | ||||
Retained Earnings | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Decrease to stockholders equity | $ (12,207,700,000) | (11,656,700,000) | $ (10,776,800,000) | (9,685,100,000) | |
Retained Earnings | Cumulative Effect Adjustment | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Decrease to stockholders equity | 10,100,000 | $ 4,500,000 | |||
Retained Earnings | Cumulative Effect Adjustment | Accounting Standards Update 2016-13 | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Decrease to stockholders equity | $ 10,100,000 |
Allowance for Credit Losses (Ch
Allowance for Credit Losses (Changes in Allowance for Credit Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at Beginning of Period | $ 104.5 | $ 112.6 | $ 131.2 |
Charge-Offs | (9.7) | (6.5) | (10.1) |
Recoveries | 6.5 | 7.2 | 9 |
Net Recoveries (Charge-Offs) | (3.2) | 0.7 | (1.1) |
Provision for Credit Losses | 91.6 | (8.8) | (17.5) |
Balance at End of Period | 190.7 | 104.5 | 112.6 |
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT | |||
Balance at Beginning of Period | 19.9 | 25.6 | 22.6 |
Charge-Offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Net Recoveries (Charge-Offs) | 0 | 0 | 0 |
Provision for Credit Losses | 32.3 | (5.7) | 3 |
Balance at End of Period | 61.1 | 19.9 | 25.6 |
DEBT SECURITIES HELD TO MATURITY | |||
Balance at Beginning of Period | 0 | ||
Charge-Offs | 0 | ||
Recoveries | 0 | ||
Net Recoveries (Charge-Offs) | 0 | ||
Provision for Credit Losses | 0.7 | ||
Balance at End of Period | 7.3 | 0 | |
OTHER FINANCIAL ASSETS | |||
Balance at Beginning of Period | 0 | ||
Charge-Offs | 0 | ||
Recoveries | 0 | ||
Net Recoveries (Charge-Offs) | 0 | ||
Provision for Credit Losses | 0.4 | ||
Balance at End of Period | 0.8 | 0 | |
TOTAL | |||
Balance at Beginning of Period | 124.4 | 138.2 | 153.8 |
Charge-Offs | (9.7) | (6.5) | (10.1) |
Recoveries | 6.5 | 7.2 | 9 |
Net Recoveries (Charge-Offs) | (3.2) | ||
Provision for Credit Losses | 125 | (14.5) | (14.5) |
Balance at End of Period | 259.9 | 124.4 | $ 138.2 |
Cumulative Effect Adjustment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at Beginning of Period | (2.2) | ||
Balance at End of Period | (2.2) | ||
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT | |||
Balance at Beginning of Period | 8.9 | ||
Balance at End of Period | 8.9 | ||
DEBT SECURITIES HELD TO MATURITY | |||
Balance at Beginning of Period | 6.6 | ||
Balance at End of Period | 6.6 | ||
Cumulative Effect Adjustment | Commercial and Consumer Portfolio Segment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at Beginning of Period | (2.2) | ||
Balance at End of Period | (2.2) | ||
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT | |||
Balance at Beginning of Period | 8.9 | ||
Balance at End of Period | 8.9 | ||
DEBT SECURITIES HELD TO MATURITY | |||
Balance at Beginning of Period | 6.6 | ||
Balance at End of Period | 6.6 | ||
OTHER FINANCIAL ASSETS | |||
Balance at Beginning of Period | 0.4 | ||
Balance at End of Period | 0.4 | ||
TOTAL | |||
Balance at Beginning of Period | 13.7 | ||
Balance at End of Period | 13.7 | ||
Adjusted Balance | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at Beginning of Period | 102.3 | ||
Balance at End of Period | 102.3 | ||
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT | |||
Balance at Beginning of Period | 28.8 | ||
Balance at End of Period | 28.8 | ||
DEBT SECURITIES HELD TO MATURITY | |||
Balance at Beginning of Period | 6.6 | ||
Balance at End of Period | 6.6 | ||
OTHER FINANCIAL ASSETS | |||
Balance at Beginning of Period | 0.4 | ||
Balance at End of Period | 0.4 | ||
TOTAL | |||
Balance at Beginning of Period | $ 138.1 | ||
Balance at End of Period | $ 138.1 |
Allowance for Credit Losses (_2
Allowance for Credit Losses (Changes in Allowance for Credit Losses Related to Loan and Leases) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
LOANS AND LEASES | |||
Balance at Beginning of Period | $ 104.5 | $ 112.6 | $ 131.2 |
Charge-Offs | (9.7) | (6.5) | (10.1) |
Recoveries | 6.5 | 7.2 | 9 |
Net Recoveries (Charge-Offs) | (3.2) | 0.7 | (1.1) |
Provision for Credit Losses | 91.6 | (8.8) | (17.5) |
Balance at End of Period | 190.7 | 104.5 | 112.6 |
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT | |||
Balance at Beginning of Period | 19.9 | 25.6 | 22.6 |
Charge-Offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Net Recoveries (Charge-Offs) | 0 | 0 | 0 |
Provision for Credit Losses | 32.3 | (5.7) | 3 |
Balance at End of Period | 61.1 | 19.9 | 25.6 |
Commercial | |||
LOANS AND LEASES | |||
Balance at Beginning of Period | 58.1 | 57.6 | 63.5 |
Charge-Offs | (6.3) | (3) | (0.9) |
Recoveries | 2.4 | 0.9 | 1.7 |
Net Recoveries (Charge-Offs) | (3.9) | (2.1) | 0.8 |
Provision for Credit Losses | 93.9 | 2.6 | (6.7) |
Balance at End of Period | 142.2 | 58.1 | 57.6 |
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT | |||
Balance at Beginning of Period | 15.8 | 21.1 | 17.3 |
Charge-Offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Net Recoveries (Charge-Offs) | 0 | 0 | 0 |
Provision for Credit Losses | 29.9 | (5.3) | 3.8 |
Balance at End of Period | 57.6 | 15.8 | 21.1 |
PERSONAL | |||
LOANS AND LEASES | |||
Balance at Beginning of Period | 46.4 | 55 | 67.7 |
Charge-Offs | (3.4) | (3.5) | (9.2) |
Recoveries | 4.1 | 6.3 | 7.3 |
Net Recoveries (Charge-Offs) | 0.7 | 2.8 | (1.9) |
Provision for Credit Losses | (2.3) | (11.4) | (10.8) |
Balance at End of Period | 48.5 | 46.4 | 55 |
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT | |||
Balance at Beginning of Period | 4.1 | 4.5 | 5.3 |
Charge-Offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Net Recoveries (Charge-Offs) | 0 | 0 | 0 |
Provision for Credit Losses | 2.4 | (0.4) | (0.8) |
Balance at End of Period | 3.5 | 4.1 | $ 4.5 |
Cumulative Effect Adjustment | |||
LOANS AND LEASES | |||
Balance at Beginning of Period | (2.2) | ||
Balance at End of Period | (2.2) | ||
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT | |||
Balance at Beginning of Period | 8.9 | ||
Balance at End of Period | 8.9 | ||
Cumulative Effect Adjustment | Commercial | |||
LOANS AND LEASES | |||
Balance at Beginning of Period | (5.9) | ||
Balance at End of Period | (5.9) | ||
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT | |||
Balance at Beginning of Period | 11.9 | ||
Balance at End of Period | 11.9 | ||
Cumulative Effect Adjustment | PERSONAL | |||
LOANS AND LEASES | |||
Balance at Beginning of Period | 3.7 | ||
Balance at End of Period | 3.7 | ||
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT | |||
Balance at Beginning of Period | (3) | ||
Balance at End of Period | (3) | ||
Adjusted Balance | |||
LOANS AND LEASES | |||
Balance at Beginning of Period | 102.3 | ||
Balance at End of Period | 102.3 | ||
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT | |||
Balance at Beginning of Period | 28.8 | ||
Balance at End of Period | 28.8 | ||
Adjusted Balance | Commercial | |||
LOANS AND LEASES | |||
Balance at Beginning of Period | 52.2 | ||
Balance at End of Period | 52.2 | ||
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT | |||
Balance at Beginning of Period | 27.7 | ||
Balance at End of Period | 27.7 | ||
Adjusted Balance | PERSONAL | |||
LOANS AND LEASES | |||
Balance at Beginning of Period | 50.1 | ||
Balance at End of Period | 50.1 | ||
UNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT | |||
Balance at Beginning of Period | $ 1.1 | ||
Balance at End of Period | $ 1.1 |
Allowance for Credit Losses (Re
Allowance for Credit Losses (Recorded Investments in Loans and Leases) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Loans and Leases | ||||
Evaluated on an Individual Basis | $ 131.7 | $ 92.2 | ||
Evaluated on a Collective Basis | 33,628 | 31,317.4 | ||
Lease Financing, net | 33,759.7 | 31,409.6 | ||
Allowance for Credit Losses on Credit Exposures | ||||
Evaluated on an Individual Basis | 9.1 | 5 | ||
Evaluated on a Collective Basis | 181.6 | 99.5 | ||
Allowance Assigned to Loans and Leases | 190.7 | 104.5 | $ 112.6 | $ 131.2 |
Allowance for Undrawn Loan Commitments and Standby Letters of Credit | ||||
Evaluated on an Individual Basis | 1.6 | 1.9 | ||
Evaluated on a Collective Basis | 59.5 | 18 | ||
Allowance Assigned to Undrawn Loan Commitments and Standby Letters of Credit | 61.1 | 19.9 | 25.6 | 22.6 |
Total Allowance Assigned to Loans and Leases and Undrawn Loan Commitments and Standby Letters of Credit | 251.8 | 124.4 | ||
Commercial | ||||
Loans and Leases | ||||
Evaluated on an Individual Basis | 66.6 | 10.4 | ||
Evaluated on a Collective Basis | 15,195.4 | 13,990.9 | ||
Lease Financing, net | 15,262 | |||
Allowance for Credit Losses on Credit Exposures | ||||
Evaluated on an Individual Basis | 8.8 | 3.4 | ||
Evaluated on a Collective Basis | 133.4 | 54.7 | ||
Allowance Assigned to Loans and Leases | 142.2 | 58.1 | ||
Allowance for Undrawn Loan Commitments and Standby Letters of Credit | ||||
Evaluated on an Individual Basis | 1.6 | 1.9 | ||
Evaluated on a Collective Basis | 56 | 13.9 | ||
Allowance Assigned to Undrawn Loan Commitments and Standby Letters of Credit | 57.6 | 15.8 | ||
Total Allowance Assigned to Loans and Leases and Undrawn Loan Commitments and Standby Letters of Credit | 199.8 | 73.9 | ||
Personal | ||||
Loans and Leases | ||||
Evaluated on an Individual Basis | 65.1 | 81.8 | ||
Evaluated on a Collective Basis | 18,432.6 | 17,326.5 | ||
Lease Financing, net | 18,497.7 | |||
Allowance for Credit Losses on Credit Exposures | ||||
Evaluated on an Individual Basis | 0.3 | 1.6 | ||
Evaluated on a Collective Basis | 48.2 | 44.8 | ||
Allowance Assigned to Loans and Leases | 48.5 | 46.4 | ||
Allowance for Undrawn Loan Commitments and Standby Letters of Credit | ||||
Evaluated on an Individual Basis | 0 | 0 | ||
Evaluated on a Collective Basis | 3.5 | 4.1 | ||
Allowance Assigned to Undrawn Loan Commitments and Standby Letters of Credit | 3.5 | 4.1 | ||
Total Allowance Assigned to Loans and Leases and Undrawn Loan Commitments and Standby Letters of Credit | 52 | 50.5 | ||
Commercial | ||||
Loans and Leases | ||||
Lease Financing, net | 15,262 | 14,001.3 | ||
Allowance for Credit Losses on Credit Exposures | ||||
Allowance Assigned to Loans and Leases | 142.2 | 58.1 | 57.6 | 63.5 |
Allowance for Undrawn Loan Commitments and Standby Letters of Credit | ||||
Allowance Assigned to Undrawn Loan Commitments and Standby Letters of Credit | 57.6 | 15.8 | 21.1 | 17.3 |
Personal | ||||
Loans and Leases | ||||
Lease Financing, net | 18,497.7 | 17,408.3 | ||
Allowance for Credit Losses on Credit Exposures | ||||
Allowance Assigned to Loans and Leases | 48.5 | 46.4 | 55 | 67.7 |
Allowance for Undrawn Loan Commitments and Standby Letters of Credit | ||||
Allowance Assigned to Undrawn Loan Commitments and Standby Letters of Credit | $ 3.5 | $ 4.1 | $ 4.5 | $ 5.3 |
Allowance for Credit Losses (_3
Allowance for Credit Losses (Changes in The Allowance for Credit Losses Related to Debt Securities Held to Maturity) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
DEBT SECURITIES HELD TO MATURITY | |
Balance at Beginning of Period | $ 0 |
Provision for Credit Losses | 0.7 |
Balance at End of Period | 7.3 |
Cumulative Effect Adjustment | |
DEBT SECURITIES HELD TO MATURITY | |
Balance at Beginning of Period | 6.6 |
Adjusted Balance | |
DEBT SECURITIES HELD TO MATURITY | |
Balance at Beginning of Period | 6.6 |
CORPORATE DEBT | |
DEBT SECURITIES HELD TO MATURITY | |
Balance at Beginning of Period | 0 |
Provision for Credit Losses | 0 |
Balance at End of Period | 0.8 |
CORPORATE DEBT | Cumulative Effect Adjustment | |
DEBT SECURITIES HELD TO MATURITY | |
Balance at Beginning of Period | 0.8 |
CORPORATE DEBT | Adjusted Balance | |
DEBT SECURITIES HELD TO MATURITY | |
Balance at Beginning of Period | 0.8 |
Non-U.S. Government | |
DEBT SECURITIES HELD TO MATURITY | |
Balance at Beginning of Period | 0 |
Provision for Credit Losses | (0.1) |
Balance at End of Period | 0.2 |
Non-U.S. Government | Cumulative Effect Adjustment | |
DEBT SECURITIES HELD TO MATURITY | |
Balance at Beginning of Period | 0.3 |
Non-U.S. Government | Adjusted Balance | |
DEBT SECURITIES HELD TO MATURITY | |
Balance at Beginning of Period | 0.3 |
SUB-SOVEREIGN, SUPERNATIONAL, AND NON-U.S. AGENCY BONDS | |
DEBT SECURITIES HELD TO MATURITY | |
Balance at Beginning of Period | 0 |
Provision for Credit Losses | 0.3 |
Balance at End of Period | 1.2 |
SUB-SOVEREIGN, SUPERNATIONAL, AND NON-U.S. AGENCY BONDS | Cumulative Effect Adjustment | |
DEBT SECURITIES HELD TO MATURITY | |
Balance at Beginning of Period | 0.9 |
SUB-SOVEREIGN, SUPERNATIONAL, AND NON-U.S. AGENCY BONDS | Adjusted Balance | |
DEBT SECURITIES HELD TO MATURITY | |
Balance at Beginning of Period | 0.9 |
COVERED BONDS | |
DEBT SECURITIES HELD TO MATURITY | |
Balance at Beginning of Period | 0 |
Provision for Credit Losses | 0.1 |
Balance at End of Period | 0.1 |
COVERED BONDS | Cumulative Effect Adjustment | |
DEBT SECURITIES HELD TO MATURITY | |
Balance at Beginning of Period | 0 |
COVERED BONDS | Adjusted Balance | |
DEBT SECURITIES HELD TO MATURITY | |
Balance at Beginning of Period | 0 |
OTHER | |
DEBT SECURITIES HELD TO MATURITY | |
Balance at Beginning of Period | 0 |
Provision for Credit Losses | 0.4 |
Balance at End of Period | 5 |
OTHER | Cumulative Effect Adjustment | |
DEBT SECURITIES HELD TO MATURITY | |
Balance at Beginning of Period | 4.6 |
OTHER | Adjusted Balance | |
DEBT SECURITIES HELD TO MATURITY | |
Balance at Beginning of Period | $ 4.6 |
Allowance for Credit Losses (Ac
Allowance for Credit Losses (Accrued Interest) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Loans and Leases | $ 55.3 | $ 84.5 |
Debt Securities | ||
Held to Maturity | 73.8 | 82.3 |
Available for Sale | 106.3 | 119 |
Other Financial Assets | $ 1.4 | $ 14.7 |
Concentrations of Credit Risk -
Concentrations of Credit Risk - Narrative (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Concentration Risk [Line Items] | ||
Interest bearing balances held at banks | $ 4,400 | $ 4,900 |
Federal funds sold and securities purchased under agreements to resell | 1,600 | |
Credit risk to banks | 4,300 | 4,300 |
Federal funds sold | 0 | 5 |
Residential real estate | $ 6,000 | $ 6,000 |
Residential real estate loans as percentage of total U.S. loans | 19.00% | 20.00% |
Legally binding undrawn commitments to extend credit | $ 676.1 | $ 714.2 |
Balance at December 31 | 1,596.5 | $ 707.8 |
Florida | ||
Concentration Risk [Line Items] | ||
Residential real estate | 1,600 | |
California | ||
Concentration Risk [Line Items] | ||
Residential real estate | 1,300 | |
Greater Chicago Area | ||
Concentration Risk [Line Items] | ||
Residential real estate | $ 894.9 |
Concentrations of Credit Risk_2
Concentrations of Credit Risk - Commercial Real Estate Loans (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Commercial Mortgages | ||
Lease Financing, net | $ 33,759.7 | $ 31,409.6 |
Mortgages | ||
Commercial Mortgages | ||
Office | 831.3 | 754.3 |
Apartment/ Multi-family | 906.8 | 646.5 |
Retail | 561.3 | 573.3 |
Industrial/ Warehouse | 344.2 | 278 |
Other | 409.9 | 420.1 |
Lease Financing, net | 3,053.5 | 2,672.2 |
Real Estate | ||
Commercial Mortgages | ||
Lease Financing, net | 3,558.4 | 3,104.3 |
Construction, Acquisition and Development Loans | $ 504.9 | $ 432.1 |
Buildings and Equipment (Detail
Buildings and Equipment (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
ORIGINAL COST | $ 1,612.6 | $ 1,467.4 |
ACCUMULATED DEPRECIATION | 1,097.7 | 984.1 |
NET BOOK VALUE | 514.9 | 483.3 |
Land and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
ORIGINAL COST | 14.5 | 14.5 |
ACCUMULATED DEPRECIATION | 0.5 | 0.5 |
NET BOOK VALUE | 14 | 14 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
ORIGINAL COST | 257.8 | 305.8 |
ACCUMULATED DEPRECIATION | 163 | 156 |
NET BOOK VALUE | 94.8 | 149.8 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
ORIGINAL COST | 816.4 | 731 |
ACCUMULATED DEPRECIATION | 596.8 | 521.5 |
NET BOOK VALUE | 219.6 | 209.5 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
ORIGINAL COST | 523.9 | 416.1 |
ACCUMULATED DEPRECIATION | 337.4 | 306.1 |
NET BOOK VALUE | $ 186.5 | $ 110 |
Buildings and Equipment - Narra
Buildings and Equipment - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation of assets | $ 116.5 | $ 103.2 | $ 108.6 |
Lease Commitments - Lease Cost
Lease Commitments - Lease Cost Components (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
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 |
Lease Commitments - Maturity of
Lease Commitments - Maturity of Lease Liability (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 99.1 | |
2022 | 92.6 | |
2023 | 85.6 | |
2024 | 74.7 | |
2025 | 77 | |
Later Years | 372.5 | |
Total Lease Payments | 801.5 | |
Less: Imputed Interest | (100.9) | |
Present Value of Lease Liabilities | $ 700.6 | $ 603.1 |
Lease Commitments - Narrative (
Lease Commitments - Narrative (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, lease not yet commenced, liability | $ 32.3 |
Lower Limit | |
Lessee, Lease, Description [Line Items] | |
Lease terms (in years) | 10 years |
Upper Limit | |
Lessee, Lease, Description [Line Items] | |
Lease terms (in years) | 15 years |
Lease Commitments - Assets and
Lease Commitments - Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Operating Lease Right-of-Use Asset | $ 560.5 | $ 491.6 |
Liabilities | ||
Operating Lease Liability | $ 700.6 | $ 603.1 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities | us-gaap:OtherLiabilities |
Lease Commitments - Weighted-Av
Lease Commitments - Weighted-Average Remaining Lease Term and Discount Rate (Detail) | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
Weighted-Average Remaining Lease Term | 10 years | 9 years 2 months 12 days |
Weighted-Average Discount Rate | 2.50% | 3.00% |
Lease Commitments - Supplementa
Lease Commitments - Supplemental Cash Flow Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
SUPPLEMENTAL DISCLOSURES OF 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 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 696.8 | $ 669.3 |
Goodwill Acquired | 23.5 | |
Foreign Exchange Rates | 10.4 | 4 |
Ending Balance | 707.2 | 696.8 |
CORPORATE & INSTITUTIONAL SERVICES | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 625.7 | 598.2 |
Goodwill Acquired | 23.5 | |
Foreign Exchange Rates | 10.3 | 4 |
Ending Balance | 636 | 625.7 |
WEALTH MANAGEMENT | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 71.1 | 71.1 |
Goodwill Acquired | 0 | |
Foreign Exchange Rates | 0.1 | 0 |
Ending Balance | $ 71.2 | $ 71.1 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Other Intangible Assets and Capitalized Software (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Other Intangible Assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 221.3 | $ 207.2 |
Less: Accumulated Amortization | 108.7 | 86.6 |
Net Book Value | 112.6 | 120.6 |
Computer Software | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
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 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Other Intangibles Amortization | $ 16.9 | $ 16.6 | $ 17.4 | ||
Goodwill | 707.2 | 696.8 | 669.3 | ||
Other Intangible Assets | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Other Intangibles Amortization | 16.9 | 16.6 | 17.4 | ||
Estimated future amortization expense for 2021 | 15.1 | ||||
Estimated future amortization expense for 2022 | 10.5 | ||||
Estimated future amortization expense for 2023 | 10.2 | ||||
Estimated future amortization expense for 2024 | 10.1 | ||||
Estimated future amortization expense for 2025 | 9.5 | ||||
Computer Software | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Other Intangibles Amortization | $ 366.9 | $ 339.1 | $ 334.9 | ||
Belvedere Advisors LLC | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Purchase price | $ 17.6 | ||||
Goodwill | 9.3 | ||||
Belvedere Advisors LLC | Computer Software | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets acquired | $ 8.3 | ||||
BEx LLC | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Purchase price | $ 37.9 | ||||
Goodwill | 12.5 | ||||
Intangible assets acquired | $ 25 |
Deposits - Scheduled Maturity o
Deposits - Scheduled Maturity of Total Time Deposits (Details) $ in Millions | Dec. 31, 2020USD ($) |
Time Deposits [Line Items] | |
1 Year or Less | $ 865.6 |
Over 1 Year to 2 Years | 36.1 |
Over 2 Years to 3 Years | 3.1 |
Over 3 Years to 4 Years | 1.2 |
Over 4 Years to 5 Years | 0.3 |
Over 5 Years | 0.5 |
Total | 906.8 |
U.S. OFFICE | |
Time Deposits [Line Items] | |
1 Year or Less | 660.2 |
Over 1 Year to 2 Years | 36.1 |
Over 2 Years to 3 Years | 3.1 |
Over 3 Years to 4 Years | 1.2 |
Over 4 Years to 5 Years | 0.3 |
Over 5 Years | 0.5 |
Total | 701.4 |
NON-U.S. OFFICES | |
Time Deposits [Line Items] | |
1 Year or Less | 205.4 |
Over 1 Year to 2 Years | 0 |
Over 2 Years to 3 Years | 0 |
Over 3 Years to 4 Years | 0 |
Over 4 Years to 5 Years | 0 |
Over 5 Years | 0 |
Total | $ 205.4 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Banking And Thrift, Time Deposits [Abstract] | ||
Total | $ 906.8 | |
Time deposits, certificates of deposits | $ 711.4 | |
Time deposits, non-U.S | 1,000 | |
Time Deposits, at or Above FDIC Insurance Limit | $ 1,700 |
Senior Notes and Long-Term De_3
Senior Notes and Long-Term Debt - Senior Notes (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Senior Notes | $ 3,122.4 | $ 2,573 |
Fixed Rate Due Nov. 2020 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.45% | |
Senior Notes | $ 0 | 499.9 |
Fixed Rate Due Aug. 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.375% | |
Senior Notes | $ 499.8 | 499.4 |
Fixed Rate Due Aug. 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.375% | |
Senior Notes | $ 499.6 | 499.4 |
Fixed Rate Due Aug. 2028 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.65% | |
Senior Notes | $ 584.4 | 547.2 |
Fixed Rate Due May. 2029 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.15% | |
Senior Notes | $ 567.9 | 527.1 |
Fixed Rate Due May. 2030 | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.95% | |
Senior Notes | $ 970.7 | $ 0 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt issue costs | $ 3.4 |
Senior Notes and Long-Term De_4
Senior Notes and Long-Term Debt - Long-Term Debt (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Total corporation subordinated debt | $ 1,189.3 | $ 1,148.1 |
Long-Term Debt Qualifying as Risk-Based Capital | $ 949.7 | 1,099.5 |
Redemption price, percentage | 100.00% | |
Corporation Subordinated Notes | ||
Debt Instrument [Line Items] | ||
Total corporation subordinated debt | $ 1,189.3 | 1,148.1 |
Corporation-Subordinated 3.95% Notes due Oct. 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.95% | |
Total corporation subordinated debt | $ 839.8 | 798.7 |
Corporation Subordinated 3.375% Notes due May 2032 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.375% | |
Total corporation subordinated debt | $ 349.5 | 349.4 |
Debt instrument, basis spread on variable rate | 1.131% | |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Debt issue costs | $ 1.1 | |
Subordinated Debt | Interest Rate Swaps | ||
Debt Instrument [Line Items] | ||
Increases in the carrying values of notes outstanding covered by interest-rate swap contracts | 90.8 | 49.8 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt issue costs | 3.4 | |
Senior Notes | Interest Rate Swaps | ||
Debt Instrument [Line Items] | ||
Increases in the carrying values of notes outstanding covered by interest-rate swap contracts | $ 130.7 | $ 77.1 |
Floating Rate Capital Debt - Na
Floating Rate Capital Debt - Narrative (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |
Apr. 30, 1997 | Jan. 31, 1997 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Percentage of securities eligible for Tier 2 capital treatment | 20.00% | ||
Securities eligible for Tier 2 capital treatment, decline rate | 10.00% | ||
Liquidation amount per security (in usd per share) | $ 1,000 | ||
NTC Capital I Subordinated Debentures due January 15, 2027 | |||
Debt Instrument [Line Items] | |||
Floating rate capital securities, issued | $ 150,000,000 | ||
Debt instrument, basis spread on variable rate | 0.52% | ||
Floating rate capital securities, due date | Jan. 15, 2027 | ||
Liquidation amount per security (in usd per share) | 1,000 | ||
NTC Capital II Subordinated Debentures due April 15, 2027 | |||
Debt Instrument [Line Items] | |||
Floating rate capital securities, issued | $ 120,000,000 | ||
Debt instrument, basis spread on variable rate | 0.59% | ||
Liquidation amount per security (in usd per share) | $ 1,000 | ||
London Interbank Offered Rate (LIBOR) | NTC Capital I Subordinated Debentures due January 15, 2027 | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 60.50% | ||
London Interbank Offered Rate (LIBOR) | NTC Capital II Subordinated Debentures due April 15, 2027 | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 67.90% |
Floating Rate Capital Debt - Su
Floating Rate Capital Debt - Subordinated Debentures (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Outstanding [Line Items] | ||
Floating rate capital debt | $ 277.8 | $ 277.7 |
NTC Capital I Subordinated Debentures due January 15, 2027 | ||
Debt Outstanding [Line Items] | ||
Floating rate capital debt | 154.3 | 154.3 |
NTC Capital II Subordinated Debentures due April 15, 2027 | ||
Debt Outstanding [Line Items] | ||
Floating rate capital debt | $ 123.5 | $ 123.4 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Detail) - USD ($) | Oct. 20, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 31, 2018 |
Class of Stock [Line Items] | |||||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | |||
Proceeds from issuance of preferred stock | $ 0 | $ 392,500,000 | $ 0 | ||
Number of shares authorized to be repurchased (in shares) | 25,000,000 | ||||
Treasury stock, shares, acquired (in shares) | 3,276,589 | ||||
Treasury stock, share-based compensation shares, acquired (in shares) | 532,713 | ||||
Treasury stock, value, acquired, cost method | $ 299,800,000 | $ 1,100,200,000 | $ 924,300,000 | ||
Average price paid per share for common stock repurchased (in dollars per share) | $ 91.49 | $ 93.40 | $ 102.69 | ||
Series D Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Preferred stock, shares outstanding (in shares) | 5,000 | 5,000 | |||
Per share ownership interest, percentage | 1.00% | ||||
Preferred stock | $ 493,500,000 | $ 493,500,000 | |||
Preferred stock, par value (in dollars per share) | $ 0 | ||||
Preferred stock, liquidation preference | $ 100,000 | ||||
Depository shares, liquidation preference (in dollars per share) | $ 1,000 | ||||
Preferred stock, annual dividend rate | 4.60% | ||||
Preferred stock, variable rate | 3.202% | ||||
Series E Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Preferred stock, shares outstanding (in shares) | 16,000 | 16,000 | |||
Per share ownership interest, percentage | 0.10% | ||||
Preferred stock | $ 391,400,000 | $ 391,400,000 | |||
Preferred stock, par value (in dollars per share) | $ 0 | ||||
Preferred stock, liquidation preference | $ 25,000 | ||||
Depository shares, liquidation preference (in dollars per share) | $ 25 | ||||
Preferred stock, annual dividend rate | 4.70% | ||||
Proceeds from issuance of preferred stock | $ 391,400,000 | $ 391,400,000 | |||
Preferred stock, dividends per share, declared (in dollars per share) | $ 293.75 | ||||
Series D Preferred Stock, Depositary Shares | |||||
Class of Stock [Line Items] | |||||
Preferred stock, shares issued (in shares) | 500,000 | ||||
Series E Preferred Stock, Depositary Shares | |||||
Class of Stock [Line Items] | |||||
Preferred stock, shares issued (in shares) | 16,000,000 |
Stockholders' Equity - Shares o
Stockholders' Equity - Shares of Common Stock (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Beginning balance (in shares) | 209,709,046 | 219,012,050 | 226,126,674 |
Incentive Plan and Awards (in shares) | 1,512,035 | 1,688,931 | 1,310,778 |
Stock Options Exercised (in shares) | 344,686 | 786,931 | 575,662 |
Treasury Stock Purchased (in shares) | (3,276,589) | (11,778,866) | (9,001,064) |
Ending balance (in shares) | 208,289,178 | 209,709,046 | 219,012,050 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of period | $ 11,091 | $ 10,508.3 | $ 10,216.2 |
Reclassification of Certain Tax Effects from AOCI | 0 | ||
Net Change | 622.7 | 259 | (14.1) |
Balance, end of period | 11,688.3 | 11,091 | 10,508.3 |
TOTAL | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (194.7) | (453.7) | (414.3) |
Reclassification of Certain Tax Effects from AOCI | (25.3) | ||
Balance, end of period | 428 | (194.7) | (453.7) |
NET UNREALIZED GAINS (LOSSES) ON DEBT SECURITIES AVAILABLE FOR SALE | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of period | 114 | (114.9) | (74.8) |
Reclassification of Certain Tax Effects from AOCI | (17.8) | ||
Net Change | 527.8 | 228.9 | (22.3) |
Balance, end of period | 641.8 | 114 | (114.9) |
NET UNREALIZED (LOSSES) GAINS ON CASH FLOW HEDGES | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (3.7) | 4 | 4.5 |
Reclassification of Certain Tax Effects from AOCI | 0.9 | ||
Net Change | 0.5 | (7.7) | (1.4) |
Balance, end of period | (3.2) | (3.7) | 4 |
NET FOREIGN CURRENCY ADJUSTMENT | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of period | 117.8 | 67.9 | (1.8) |
Reclassification of Certain Tax Effects from AOCI | 47.5 | ||
Net Change | 26.9 | 49.9 | 22.2 |
Balance, end of period | 144.7 | 117.8 | 67.9 |
NET PENSION AND OTHER POSTRETIREMENT BENEFIT ADJUSTMENTS | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (422.8) | (410.7) | (342.2) |
Reclassification of Certain Tax Effects from AOCI | (55.9) | ||
Net Change | 67.5 | (12.1) | (12.6) |
Balance, end of period | $ (355.3) | $ (422.8) | $ (410.7) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Details of Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
BEFORE TAX | |||
Net Change | $ 790.8 | $ 347.9 | $ 11.6 |
TAX EFFECT | |||
Net Change | (168.1) | (88.9) | (25.7) |
AFTER TAX | |||
Other comprehensive income (loss) before reclassifications | 622.7 | 259 | (14.1) |
Unrealized Gains (Losses) on Debt Securities Available for Sale | |||
BEFORE TAX | |||
Gains (Losses) | 706.8 | 306.1 | (31.9) |
Reclassification Adjustment for Losses (Gains) Included in Net Income | 0.4 | 1.1 | 0.5 |
Net Change | 707.2 | 307.2 | (31.4) |
TAX EFFECT | |||
Gains (Losses) | (179.3) | (78) | 9.2 |
Reclassification Adjustment for Losses (Gains) Included in Net Income | (0.1) | (0.3) | (0.1) |
Net Change | (179.4) | (78.3) | 9.1 |
AFTER TAX | |||
Gains (Losses) | 527.5 | 228.1 | (22.7) |
Reclassification Adjustment for Losses (Gains) Included in Net Income | 0.3 | 0.8 | 0.4 |
Other comprehensive income (loss) before reclassifications | 527.8 | 228.9 | (22.3) |
Unrealized (Losses) Gains on Cash Flow Hedges | |||
BEFORE TAX | |||
Reclassification Adjustment for Losses (Gains) Included in Net Income | (28.1) | (26.7) | (71.1) |
Net Change | 0.8 | (10.3) | (1.8) |
TAX EFFECT | |||
Reclassification Adjustment for Losses (Gains) Included in Net Income | 7 | 6.6 | 17.7 |
Net Change | (0.3) | 2.6 | 0.4 |
AFTER TAX | |||
Reclassification Adjustment for Losses (Gains) Included in Net Income | (21.1) | (20.1) | (53.4) |
Other comprehensive income (loss) before reclassifications | 0.5 | (7.7) | (1.4) |
Foreign Currency Adjustments | |||
BEFORE TAX | |||
Net Change | (7.5) | 65.6 | 63.4 |
TAX EFFECT | |||
Net Change | 34.4 | (15.7) | (41.2) |
AFTER TAX | |||
Other comprehensive income (loss) before reclassifications | 26.9 | 49.9 | 22.2 |
Foreign Currency Translation Adjustments | |||
BEFORE TAX | |||
Net Change | 169.1 | 6.4 | (107.8) |
TAX EFFECT | |||
Net Change | (8.3) | (1.6) | 1.5 |
AFTER TAX | |||
Other comprehensive income (loss) before reclassifications | 160.8 | 4.8 | (106.3) |
Long-Term Intra-Entity Foreign Currency Transaction (Losses) Gains | |||
BEFORE TAX | |||
Net Change | 2.1 | (0.5) | (1.8) |
TAX EFFECT | |||
Net Change | (0.5) | 0.1 | 0.5 |
AFTER TAX | |||
Other comprehensive income (loss) before reclassifications | 1.6 | (0.4) | (1.3) |
Net Investment Hedge Gains (Losses) | |||
BEFORE TAX | |||
Net Change | (178.7) | 59.7 | 173 |
TAX EFFECT | |||
Net Change | 43.2 | (14.2) | (43.2) |
AFTER TAX | |||
Other comprehensive income (loss) before reclassifications | (135.5) | 45.5 | 129.8 |
Pension and Other Postretirement Benefit Adjustments | |||
BEFORE TAX | |||
Gains (Losses) | 47.4 | (36.8) | (54.9) |
Net Change | 90.3 | (14.6) | (18.6) |
TAX EFFECT | |||
Gains (Losses) | (12.3) | 7.9 | 9.6 |
Net Change | (22.8) | 2.5 | 6 |
AFTER TAX | |||
Gains (Losses) | 35.1 | (28.9) | (45.3) |
Other comprehensive income (loss) before reclassifications | 67.5 | (12.1) | (12.6) |
Amortization of Net Actuarial Loss | |||
BEFORE TAX | |||
Reclassification Adjustment for Losses (Gains) Included in Net Income | 43 | 22.4 | 36.6 |
TAX EFFECT | |||
Reclassification Adjustment for Losses (Gains) Included in Net Income | (10.5) | (5.4) | (3.6) |
AFTER TAX | |||
Reclassification Adjustment for Losses (Gains) Included in Net Income | 32.5 | 17 | 33 |
Amortization of Prior Service Cost | |||
BEFORE TAX | |||
Reclassification Adjustment for Losses (Gains) Included in Net Income | (0.1) | (0.2) | (0.3) |
TAX EFFECT | |||
Reclassification Adjustment for Losses (Gains) Included in Net Income | 0 | 0 | 0 |
AFTER TAX | |||
Reclassification Adjustment for Losses (Gains) Included in Net Income | (0.1) | (0.2) | (0.3) |
Foreign Exchange Contracts | Unrealized (Losses) Gains on Cash Flow Hedges | |||
BEFORE TAX | |||
Gains (Losses) | 28.9 | 14.9 | 70.5 |
TAX EFFECT | |||
Gains (Losses) | (7.3) | (3.7) | (17.6) |
AFTER TAX | |||
Gains (Losses) | 21.6 | 11.2 | 52.9 |
Interest Rate Contracts | Unrealized (Losses) Gains on Cash Flow Hedges | |||
BEFORE TAX | |||
Gains (Losses) | 0 | 1.5 | (1.2) |
TAX EFFECT | |||
Gains (Losses) | 0 | (0.3) | 0.3 |
AFTER TAX | |||
Gains (Losses) | $ 0 | $ 1.2 | $ (0.9) |
Net Income per Common Share - N
Net Income per Common Share - Net Income Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
BASIC NET INCOME PER COMMON SHARE | |||
Average Number of Common Shares Outstanding (in shares) | 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 |
Less: Earnings Allocated to Participating Securities | 12.1 | 16.9 | 20.1 |
Earnings Allocated to Common Shares Outstanding | $ 1,141 | $ 1,428.9 | $ 1,489.9 |
Basic Net Income Per Common Share (in dollars per share) | $ 5.48 | $ 6.66 | $ 6.68 |
DILUTED NET INCOME PER COMMON SHARE | |||
Average Number of Common Shares Outstanding (in shares) | 208,319,412 | 214,525,547 | 223,148,335 |
Plus Dilutive Effect of Share-based Compensation (in shares) | 688,574 | 1,075,602 | 1,339,991 |
Average Common and Potential Common Shares (in 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 |
Diluted Net Income Per Common Share (in dollars per share) | $ 5.46 | $ 6.63 | $ 6.64 |
Common stock equivalents not included in the computation of diluted earnings per share because their inclusion would have been antidilutive (in shares) | 0 | 0 | 0 |
Revenue from Contracts with C_3
Revenue from Contracts with Clients (Revenue Disaggregated by Major Source) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Trust, Investment and Other Servicing Fees | $ 3,995 | $ 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 | 145.5 | 127.5 |
Investment Security Gains (Losses), net | (0.4) | (1.4) | (1) |
Total Other Noninterest Income | 662.6 | 543.1 | 583.8 |
Total Noninterest Income | 4,657.6 | 4,395.2 | 4,337.5 |
Custody and Fund Administration | |||
Disaggregation of Revenue [Line Items] | |||
Trust, Investment and Other Servicing Fees | 1,674.3 | 1,636.4 | 1,589.1 |
Investment Management and Advisory | |||
Disaggregation of Revenue [Line Items] | |||
Trust, Investment and Other Servicing Fees | 2,029.3 | 1,930.6 | 1,862.6 |
Securities Lending | |||
Disaggregation of Revenue [Line Items] | |||
Trust, Investment and Other Servicing Fees | 88.3 | 87.7 | 102.8 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Trust, Investment and Other Servicing Fees | $ 203.1 | $ 197.4 | $ 199.2 |
Revenue from Contracts with C_4
Revenue from Contracts with Clients (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Trust, investment and other servicing fees | $ 3,995 | $ 3,852.1 | $ 3,753.7 |
Security commissions and trading income | 133.2 | 103.6 | 98.3 |
Other operating income | 194 | 145.5 | 127.5 |
Securities Commission and Trading | |||
Disaggregation of Revenue [Line Items] | |||
Trust, investment and other servicing fees | 102.4 | 87.1 | 86.7 |
Products and Services, Other Operating Income | |||
Disaggregation of Revenue [Line Items] | |||
Trust, investment and other servicing fees | $ 42.8 | $ 41.8 | $ 44 |
Revenue from Contracts with C_5
Revenue from Contracts with Clients (Client Receivables) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disaggregation of Revenue [Line Items] | ||
Total Client Receivables | $ 935.8 | $ 903 |
Trust Fees Receivable, net | ||
Disaggregation of Revenue [Line Items] | ||
Total Client Receivables | 819.3 | 801.9 |
Contract with customer, asset, allowance for credit loss | 7.2 | 5.6 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total Client Receivables | $ 116.5 | $ 101.1 |
Net Interest Income - Net Inter
Net Interest Income - Net Interest Income (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest Income | ||||
Loans and Leases | $ 774.6 | $ 1,153.4 | $ 1,098.8 | |
Securities – Taxable | 812.4 | 1,070.7 | 905.2 | |
Securities - Non-Taxable | 1.4 | 3.8 | 7 | |
Interest-Bearing Due from and Deposits with Banks | 22.4 | 72.4 | 70 | |
Federal Reserve and Other Central Bank Deposits and Other | 32.7 | 199.6 | 240.4 | |
Total Interest Income | $ 2,321.4 | 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 | 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 | |
Floating Rate Capital Debt | 4.2 | 8.2 | 7.5 | |
Total Interest Expense | $ 698.7 | 200.3 | 822 | 698.7 |
Net Interest Income | $ 1,443.2 | $ 1,677.9 | $ 1,622.7 |
Other Operating Income - (Detai
Other Operating Income - (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Components of Other Operating Income [Line Items] | |||
Total Other Operating Income | $ 194 | $ 145.5 | $ 127.5 |
Loan Service Fees | |||
Components of Other Operating Income [Line Items] | |||
Total Other Operating Income | 52.5 | 48 | 48.9 |
Banking Service Fees | |||
Components of Other Operating Income [Line Items] | |||
Total Other Operating Income | 46.1 | 45.6 | 46.4 |
Other Income | |||
Components of Other Operating Income [Line Items] | |||
Total Other Operating Income | $ 95.4 | $ 51.9 | $ 32.2 |
Other Operating Expense (Detail
Other Operating Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Income and Other Expense [Line Items] | |||
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 |
Processing Error, Increase In Mutual Fund Fees and Lower Business Promotion Expense | |||
Other Income and Other Expense [Line Items] | |||
Total Other Operating Expense | $ 43.4 |
Income Taxes - Income Taxes (De
Income Taxes - Income Taxes (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Statutory Federal Tax Rate | 21.00% | 21.00% | 21.00% |
Tax Exempt Income | (0.90%) | (0.60%) | (0.40%) |
Foreign Tax Rate Differential | 0.70% | 0.20% | (0.40%) |
Excess Tax Benefit Related to Share-Based Compensation | (0.60%) | (0.90%) | (0.90%) |
Tax Credits | (1.70%) | (1.00%) | (1.10%) |
Reversal of Tax Benefits Previously Recognized through Earnings | 1.60% | 0.00% | 0.00% |
State Taxes, net | 3.20% | 2.80% | 3.40% |
Impact of Tax Cuts and Jobs Act | 0 | 0 | (0.002) |
Change in Accounting Method | 0.00% | 0.00% | (1.20%) |
Valuation Allowance | 1.60% | 1.50% | 0.00% |
Other | 0.80% | 0.20% | 0.30% |
Effective Tax Rate | 25.70% | 23.20% | 20.50% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Tax Credit Carryforward [Line Items] | ||||
Provision for income taxes | $ 418,300,000 | $ 451,900,000 | $ 401,400,000 | |
Effective income tax rate reconciliation, percent | 25.70% | 23.20% | 20.50% | |
Effective income tax rate reconciliation, prior year income taxes, amount | $ 26,800,000 | |||
Unrecognized tax benefit | 22,400,000 | $ 25,300,000 | $ 21,900,000 | $ 27,700,000 |
Increase in net income from recognition of unrecognized tax benefits | 20,700,000 | 22,700,000 | ||
Interest and penalties, net of tax, included in the provision (benefit) for income taxes | 1,200,000 | 1,300,000 | $ 300,000 | |
Income tax examination, penalties and interest accrued | 9,600,000 | 8,400,000 | ||
Valuation allowance | 55,200,000 | 29,800,000 | ||
State and Local Jurisdiction | ||||
Tax Credit Carryforward [Line Items] | ||||
Net operating loss carryforwards | 500,000 | 1,000,000 | ||
Valuation allowance | 500,000 | 300,000 | ||
Foreign Tax Authority | ||||
Tax Credit Carryforward [Line Items] | ||||
Valuation allowance | $ 25,300,000 | $ 29,500,000 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 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 | 1.7 |
Reductions for Tax Positions Taken in Prior Years | (4.2) | (1.5) | (7.8) |
Reductions Resulting from Expiration of Statutes | 0 | 0 | (0.2) |
Ending Balance | $ 22.4 | $ 25.3 | $ 21.9 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current Tax Provision: | |||
Federal | $ 203 | $ 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 |
Effective Tax Rate | $ 418.3 | $ 451.9 | $ 401.4 |
Income Taxes - Tax Charges and
Income Taxes - Tax Charges and Benefits Recorded Directly to Stockholders' Equity (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Tax Effect of Other Comprehensive Income | $ 168.1 | $ 88.9 | $ 25.7 |
Income Taxes - Deferred Tax Lia
Income Taxes - Deferred Tax Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Tax Liabilities: | ||
Lease Financing | $ 9 | $ 36.9 |
Software Development | 268.1 | 249.4 |
Accumulated Depreciation | 99.7 | 99.8 |
Compensation and Benefits | 31 | 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 |
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 |
Employee Benefits - Narrative (
Employee Benefits - Narrative (Detail) | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2020USD ($) | Dec. 31, 2020USD ($)agenumberOfDerivativeInstrumentsinvestment | Dec. 31, 2019USD ($)numberOfDerivativeInstruments | Dec. 31, 2018USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Amortization period for prior service cost remaining | 1 year | |||
Actuarial Loss (Gain) | $ 176,000,000 | $ 256,200,000 | ||
Number of investments held in diversified portfolios | investment | 1 | |||
Number of derivatives held by the plan | numberOfDerivativeInstruments | 5 | 5 | ||
Expected long-term rate of return on assets | 5.25% | |||
Postretirement Health Care, minimum retirement age | age | 55 | |||
Postretirement Health Care, minimum service term | 15 years | |||
Estimated contribution defined contribution plans | $ 62,900,000 | $ 57,600,000 | $ 54,400,000 | |
Trust for Benefit of Employees | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Assets related to the pension plan | $ 137,500,000 | $ 128,800,000 | ||
Long Credit Bonds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation of plan assets | 45.00% | |||
Global Equities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation of plan assets | 20.00% | |||
Custom Completion | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation of plan assets | 10.00% | |||
High Yield Bonds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation of plan assets | 5.00% | |||
Northern Trust Private Equity Funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation of plan assets | 5.00% | |||
Northern Trust Private Equity Funds | Upper Limit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation of plan assets | 20.00% | |||
Emerging Market Debt | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation of plan assets | 4.00% | |||
Global Listed Infrastructure | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation of plan assets | 4.00% | |||
Real Estate | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation of plan assets | 4.00% | |||
Northern Trust Hedge Fund | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation of plan assets | 3.00% | |||
Supplemental Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Assets related to the pension plan | $ 0 | $ 0 | ||
Prior service costs, amortization period (years) | 10 years | |||
Actuarial Loss (Gain) | $ 20,400,000 | 22,000,000 | ||
Prior service (benefit) cost | 200,000 | 200,000 | 200,000 | |
Plan Amendment | $ 0 | $ 0 | ||
Weighted average discount rate used in determining the accumulated postretirement benefit obligation | 2.45% | 3.37% | ||
Other Postretirement Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Prior service costs, amortization period (years) | 13 years 10 months 24 days | |||
Actuarial Loss (Gain) | $ (100,000) | $ 200,000 | ||
Prior service (benefit) cost | $ (12,700,000) | $ (300,000) | $ 0 | 0 |
Plan Amendment | 12,600,000 | |||
Defined benefit plan, net periodic benefit cost (credit), increase (decrease) for plan amendment | $ 300,000 | |||
Weighted average discount rate used in determining the accumulated postretirement benefit obligation | 2.16% | 3.37% | ||
Current health care cost trend rate | 7.50% | |||
Ultimate health care rate | 4.50% | |||
Other Postretirement Plan | Pre-Age 65 Medical and Drug Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Current health care cost trend rate | 5.75% | |||
Pension Plans, Defined Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Assets related to the pension plan | $ 1,793,700,000 | $ 1,601,200,000 | ||
Contributions made to the pension plan | $ 10,600,000 | 3,000,000 | ||
Pension Plans, Defined Benefit | Lower Limit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value, investments, entities that calculate net asset value per share, liquidating investment, remaining period | 1 year | |||
Pension Plans, Defined Benefit | Upper Limit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value, investments, entities that calculate net asset value per share, liquidating investment, remaining period | 8 years | |||
Pension Plans, Defined Benefit | Northern Trust Private Equity Funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Assets related to the pension plan | $ 20,300,000 | 20,300,000 | ||
Pension Plans, Defined Benefit | Northern Trust Hedge Fund | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Assets related to the pension plan | $ 34,200,000 | 30,200,000 | ||
Fair value, investments, entities that calculate net asset value per share, investment redemption, notice period | 60 days | |||
Pension Plans, Defined Benefit | Domestic Common Stock | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Assets related to the pension plan | $ 13,500,000 | 12,300,000 | ||
Pension Plans, Defined Benefit | Real Estate Funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Assets related to the pension plan | $ 46,100,000 | 46,300,000 | ||
Fair value, investments, entities that calculate net asset value per share, investment redemption, notice period | 45 days | |||
U.S. Plan | Pension Plans, Defined Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Assets related to the pension plan | $ 1,793,700,000 | 1,601,200,000 | $ 1,380,100,000 | |
Contributions made to the pension plan | $ 0 | 0 | ||
Prior service costs, amortization period (years) | 11 years | |||
Actuarial Loss (Gain) | $ 136,500,000 | $ 213,300,000 | ||
Expected long-term rate of return on assets | 5.25% | 6.00% | 6.00% | |
Prior service (benefit) cost | $ (400,000) | $ (400,000) | $ (400,000) | |
Plan Amendment | $ 0 | $ 0 | ||
Weighted average discount rate used in determining the accumulated postretirement benefit obligation | 2.75% | 3.37% | ||
U.S. Plan | Pension Plans, Defined Benefit | Lower Limit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution to plan assets | $ 0 | |||
U.S. Plan | Pension Plans, Defined Benefit | Upper Limit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution to plan assets | $ 255,000,000 |
Employee Benefits - Employee Be
Employee Benefits - Employee Benefit Plan Status (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets at Fair Value | $ 1,793.7 | $ 1,601.2 | |
Supplemental Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated Benefit Obligation | 139.8 | 131.5 | |
Projected Benefit Obligation | 162.3 | 149.2 | $ 135.6 |
Plan Assets at Fair Value | 0 | 0 | |
Funded Status at end of year | $ (162.3) | $ (149.2) | |
Weighted-Average Assumptions: | |||
Discount Rates | 2.45% | 3.37% | |
Rate of Increase in Compensation Level | 4.97% | 4.97% | |
U.S. Plan | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated Benefit Obligation | $ 1,312.9 | $ 1,181.9 | |
Projected Benefit Obligation | 1,470.6 | 1,323.4 | 1,092 |
Plan Assets at Fair Value | 1,793.7 | 1,601.2 | 1,380.1 |
Funded Status at end of year | $ 323.1 | $ 277.8 | |
Weighted-Average Assumptions: | |||
Discount Rates | 2.75% | 3.37% | |
Rate of Increase in Compensation Level | 4.97% | 4.97% | |
Expected Long-Term Rate of Return on Assets | 5.25% | 5.25% | |
Non U.S. Plans | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated Benefit Obligation | $ 228.5 | $ 204.7 | |
Projected Benefit Obligation | 236.1 | 211.1 | 183.5 |
Plan Assets at Fair Value | 211.5 | 190.1 | $ 166.7 |
Funded Status at end of year | $ (24.6) | $ (21) | |
Weighted-Average Assumptions: | |||
Discount Rates | 0.93% | 1.40% | |
Rate of Increase in Compensation Level | 1.50% | 1.50% | |
Expected Long-Term Rate of Return on Assets | 1.28% | 1.72% |
Employee Benefits - Amounts Inc
Employee Benefits - Amounts Included in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Supplemental Plan | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net Actuarial Loss | $ 96.3 | $ 82.5 |
Prior Service (Benefit) Cost | 0.1 | 0.2 |
Gross Amount in Accumulated Other Comprehensive Income | 96.4 | 82.7 |
Income Tax Effect | 23.9 | 20.4 |
Net Amount in Accumulated Other Comprehensive Income | 72.5 | 62.3 |
U.S. Plan | Pension Plans, Defined Benefit | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net Actuarial Loss | 332.4 | 426.7 |
Prior Service (Benefit) Cost | (0.6) | (1) |
Gross Amount in Accumulated Other Comprehensive Income | 331.8 | 425.7 |
Income Tax Effect | 82.1 | 105.7 |
Net Amount in Accumulated Other Comprehensive Income | 249.7 | 320 |
Non U.S. Plans | Pension Plans, Defined Benefit | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net Actuarial Loss | 49 | 46.5 |
Prior Service (Benefit) Cost | 2.2 | 3 |
Gross Amount in Accumulated Other Comprehensive Income | 51.2 | 49.5 |
Income Tax Effect | 6.4 | 6.2 |
Net Amount in Accumulated Other Comprehensive Income | $ 44.8 | $ 43.3 |
Employee Benefits - Net Periodi
Employee Benefits - Net Periodic Pension Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Weighted-Average Assumptions: | |||
Expected Long-Term Rate of Return on Assets | 5.25% | ||
Supplemental Plan | |||
Defined Benefit plan Net periodic benefit cost | |||
Service Cost | $ 4.6 | $ 4.1 | $ 4.3 |
Interest Cost | 4.8 | 5.8 | 5.3 |
Settlement Expense | 0 | 0 | 0 |
Amortization: | |||
Net Actuarial Loss | 7 | 5.6 | 7.4 |
Prior Service (Benefit) Cost | 0.2 | 0.2 | 0.2 |
Net Periodic Pension Expense | $ 16.6 | $ 15.7 | $ 17.2 |
Weighted-Average Assumptions: | |||
Discount Rates | 3.37% | 4.47% | 3.79% |
Rate of Increase in Compensation Level | 4.97% | 4.39% | 4.39% |
U.S. Plan | Pension Plans, Defined Benefit | |||
Defined Benefit plan Net periodic benefit cost | |||
Service Cost | $ 47.4 | $ 41.6 | $ 41.4 |
Interest Cost | 43.3 | 47.2 | 44.3 |
Expected Return on Plan Assets | (76.8) | (86.9) | (88.2) |
Settlement Expense | 0 | 0 | 0 |
Amortization: | |||
Net Actuarial Loss | 35 | 17.2 | 28.2 |
Prior Service (Benefit) Cost | (0.4) | (0.4) | (0.4) |
Net Periodic Pension Expense | $ 48.5 | $ 18.7 | $ 25.3 |
Weighted-Average Assumptions: | |||
Discount Rates | 3.37% | 4.47% | 3.79% |
Rate of Increase in Compensation Level | 4.97% | 4.39% | 4.39% |
Expected Long-Term Rate of Return on Assets | 5.25% | 6.00% | 6.00% |
Non U.S. Plans | Pension Plans, Defined Benefit | |||
Defined Benefit plan Net periodic benefit cost | |||
Service Cost | $ 1.9 | $ 2 | $ 1.7 |
Interest Cost | 2.9 | 3.9 | 4 |
Expected Return on Plan Assets | (3.1) | (4.4) | (4.4) |
Settlement Expense | 0.8 | 0 | 0.5 |
Amortization: | |||
Net Actuarial Loss | 0.8 | 0.6 | 0.9 |
Prior Service (Benefit) Cost | 0.4 | 0.3 | 0.2 |
Net Periodic Pension Expense | $ 3.7 | $ 2.4 | $ 2.9 |
Weighted-Average Assumptions: | |||
Discount Rates | 1.40% | 2.16% | 2.08% |
Rate of Increase in Compensation Level | 1.50% | 1.75% | 1.75% |
Expected Long-Term Rate of Return on Assets | 1.72% | 2.39% | 2.61% |
Employee Benefits - Change in P
Employee Benefits - Change in Projected Benefit Obligation (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Actuarial Loss (Gain) | $ 176 | $ 256.2 | |
Supplemental Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Beginning Balance | 149.2 | 135.6 | |
Service Cost | 4.6 | 4.1 | $ 4.3 |
Interest Cost | 4.8 | 5.8 | 5.3 |
Employee Contributions | 0 | 0 | |
Plan Amendment | 0 | 0 | |
Actuarial Loss (Gain) | 20.4 | 22 | |
Settlement | 0 | 0 | |
Benefits Paid | (16.7) | (18.3) | |
Foreign Exchange Rate Changes | 0 | 0 | |
Ending Balance | 162.3 | 149.2 | 135.6 |
U.S. Plan | Pension Plans, Defined Benefit | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Beginning Balance | 1,323.4 | 1,092 | |
Service Cost | 47.4 | 41.6 | 41.4 |
Interest Cost | 43.3 | 47.2 | 44.3 |
Employee Contributions | 0 | 0 | |
Plan Amendment | 0 | 0 | |
Actuarial Loss (Gain) | 136.5 | 213.3 | |
Settlement | 0 | 0 | |
Benefits Paid | (80) | (70.7) | |
Foreign Exchange Rate Changes | 0 | 0 | |
Ending Balance | 1,470.6 | 1,323.4 | 1,092 |
Non U.S. Plans | Pension Plans, Defined Benefit | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Beginning Balance | 211.1 | 183.5 | |
Service Cost | 1.9 | 2 | 1.7 |
Interest Cost | 2.9 | 3.9 | 4 |
Employee Contributions | 0.6 | 0.6 | |
Plan Amendment | (0.5) | (0.4) | |
Actuarial Loss (Gain) | 19.1 | 20.9 | |
Settlement | (5.4) | 0 | |
Benefits Paid | (4.1) | (3.6) | |
Foreign Exchange Rate Changes | 10.5 | 4.2 | |
Ending Balance | $ 236.1 | $ 211.1 | $ 183.5 |
Employee Benefits - Estimated F
Employee Benefits - Estimated Future Benefit Payments (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Supplemental Plan | |
Schedule of Pension Expected Future Benefit Payments [Line Items] | |
2021 | $ 18 |
2022 | 20 |
2023 | 18.2 |
2024 | 11.6 |
2025 | 12.7 |
2026-2030 | 62 |
U.S. Plan | Pension Plans, Defined Benefit | |
Schedule of Pension Expected Future Benefit Payments [Line Items] | |
2021 | 86.8 |
2022 | 88.9 |
2023 | 96.3 |
2024 | 96.4 |
2025 | 98.6 |
2026-2030 | 495.5 |
Non U.S. Plans | Pension Plans, Defined Benefit | |
Schedule of Pension Expected Future Benefit Payments [Line Items] | |
2021 | 4.4 |
2022 | 4.3 |
2023 | 4.8 |
2024 | 5 |
2025 | 5 |
2026-2030 | $ 32.4 |
Employee Benefits - Change In_2
Employee Benefits - Change In Plan Assets (Detail) - Pension Plans, Defined Benefit - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair Value at beginning of year | $ 1,601.2 | |
Employer Contributions | 10.6 | $ 3 |
Fair Value at end of year | 1,793.7 | 1,601.2 |
U.S. Plan | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair Value at beginning of year | 1,601.2 | 1,380.1 |
Actual Return on Assets | 272.5 | 291.8 |
Employer Contributions | 0 | 0 |
Employee Contributions | 0 | 0 |
Settlement | 0 | 0 |
Benefits Paid | (80) | (70.7) |
Foreign Exchange Rate Changes | 0 | 0 |
Fair Value at end of year | 1,793.7 | 1,601.2 |
Non U.S. Plans | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair Value at beginning of year | 190.1 | 166.7 |
Actual Return on Assets | 17.9 | 18.6 |
Employer Contributions | 5 | 3.1 |
Employee Contributions | 0.6 | 0.6 |
Settlement | (5.4) | 0 |
Benefits Paid | (4.1) | (3.6) |
Foreign Exchange Rate Changes | 7.4 | 4.7 |
Fair Value at end of year | $ 211.5 | $ 190.1 |
Employee Benefits - Fair Value
Employee Benefits - Fair Value of U.S. Pension Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Northern Trust Private Equity Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List] | us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember | us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember |
Northern Trust Hedge Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List] | us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember | us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember |
Real Estate Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List] | us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember | us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember |
Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | $ 1,793.7 | $ 1,601.2 |
Pension Plans, Defined Benefit | Domestic Common Stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 13.5 | 12.3 |
Pension Plans, Defined Benefit | Domestic Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 314.4 | 254.6 |
Pension Plans, Defined Benefit | Foreign Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 43.6 | 45 |
Pension Plans, Defined Benefit | U.S. Government Obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 116 | 168.3 |
Pension Plans, Defined Benefit | Non-U.S. Government Obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 22.9 | 18.8 |
Pension Plans, Defined Benefit | Domestic Municipal and Provincial Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 22.4 | 23.1 |
Pension Plans, Defined Benefit | Foreign Municipal and Provincial Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 0.3 | 0.3 |
Pension Plans, Defined Benefit | Collective Trust Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 985.5 | 866.6 |
Pension Plans, Defined Benefit | Mutual Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 167 | 112.8 |
Pension Plans, Defined Benefit | Cash and Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 7.5 | 2.6 |
Pension Plans, Defined Benefit | Northern Trust Private Equity Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 20.3 | 20.3 |
Pension Plans, Defined Benefit | Northern Trust Hedge Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 34.2 | 30.2 |
Pension Plans, Defined Benefit | Real Estate Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 46.1 | 46.3 |
Pension Plans, Defined Benefit | Fair Value, Inputs, Level 1, 2 and 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 1,693.1 | 1,504.4 |
Pension Plans, Defined Benefit | LEVEL 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 190.9 | 127.7 |
Pension Plans, Defined Benefit | LEVEL 1 | Domestic Common Stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 13.5 | 12.3 |
Pension Plans, Defined Benefit | LEVEL 1 | Domestic Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 0 | 0 |
Pension Plans, Defined Benefit | LEVEL 1 | Foreign Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 0 | 0 |
Pension Plans, Defined Benefit | LEVEL 1 | U.S. Government Obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 2.9 | 0 |
Pension Plans, Defined Benefit | LEVEL 1 | Non-U.S. Government Obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 0 | 0 |
Pension Plans, Defined Benefit | LEVEL 1 | Domestic Municipal and Provincial Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 0 | 0 |
Pension Plans, Defined Benefit | LEVEL 1 | Foreign Municipal and Provincial Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 0 | 0 |
Pension Plans, Defined Benefit | LEVEL 1 | Collective Trust Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 0 | 0 |
Pension Plans, Defined Benefit | LEVEL 1 | Mutual Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 167 | 112.8 |
Pension Plans, Defined Benefit | LEVEL 1 | Cash and Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 7.5 | 2.6 |
Pension Plans, Defined Benefit | LEVEL 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 1,502.2 | 1,376.7 |
Pension Plans, Defined Benefit | LEVEL 2 | Domestic Common Stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 0 | 0 |
Pension Plans, Defined Benefit | LEVEL 2 | Domestic Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 314.4 | 254.6 |
Pension Plans, Defined Benefit | LEVEL 2 | Foreign Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 43.6 | 45 |
Pension Plans, Defined Benefit | LEVEL 2 | U.S. Government Obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 113.1 | 168.3 |
Pension Plans, Defined Benefit | LEVEL 2 | Non-U.S. Government Obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 22.9 | 18.8 |
Pension Plans, Defined Benefit | LEVEL 2 | Domestic Municipal and Provincial Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 22.4 | 23.1 |
Pension Plans, Defined Benefit | LEVEL 2 | Foreign Municipal and Provincial Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 0.3 | 0.3 |
Pension Plans, Defined Benefit | LEVEL 2 | Collective Trust Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 985.5 | 866.6 |
Pension Plans, Defined Benefit | LEVEL 2 | Mutual Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 0 | 0 |
Pension Plans, Defined Benefit | LEVEL 2 | Cash and Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 0 | 0 |
Pension Plans, Defined Benefit | LEVEL 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 0 | 0 |
Pension Plans, Defined Benefit | LEVEL 3 | Domestic Common Stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 0 | 0 |
Pension Plans, Defined Benefit | LEVEL 3 | Domestic Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 0 | 0 |
Pension Plans, Defined Benefit | LEVEL 3 | Foreign Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 0 | 0 |
Pension Plans, Defined Benefit | LEVEL 3 | U.S. Government Obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 0 | 0 |
Pension Plans, Defined Benefit | LEVEL 3 | Non-U.S. Government Obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 0 | 0 |
Pension Plans, Defined Benefit | LEVEL 3 | Domestic Municipal and Provincial Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 0 | 0 |
Pension Plans, Defined Benefit | LEVEL 3 | Foreign Municipal and Provincial Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 0 | 0 |
Pension Plans, Defined Benefit | LEVEL 3 | Collective Trust Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 0 | 0 |
Pension Plans, Defined Benefit | LEVEL 3 | Mutual Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | 0 | 0 |
Pension Plans, Defined Benefit | LEVEL 3 | Cash and Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets at Fair Value | $ 0 | $ 0 |
Employee Benefits - Postretirem
Employee Benefits - Postretirement Health Care Plan Status (Detail) - Other Postretirement Plan - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Net Postretirement Benefit Obligation | $ 15.7 | $ 28.8 | $ 28.1 |
Retirees and Dependents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net Postretirement Benefit Obligation | 13.2 | 25.2 | |
Actives Eligible for Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net Postretirement Benefit Obligation | $ 2.5 | $ 3.6 |
Employee Benefits - Postretir_2
Employee Benefits - Postretirement Amounts Included in Accumulated Other Comprehensive Income (Detail) - Other Postretirement Plan - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net Actuarial (Gain) Loss | $ (4.9) | $ (5.4) |
Prior Service Cost | (12.4) | 0 |
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) | $ (4) |
Employee Benefits - Net Perio_2
Employee Benefits - Net Periodic Postretirement (Benefit) Expense (Detail) - Other Postretirement Plan - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service Cost | $ 0 | $ 0 | $ 0 | |
Interest Cost | 0.7 | 1.2 | 1.3 | |
Expected Return on Plan Assets | 0 | 0 | 0 | |
Amortization | ||||
Net Gain | (0.6) | (1.1) | 0 | |
Prior Service Benefit | $ (12.7) | (0.3) | 0 | 0 |
Net Periodic Pension Expense | $ (0.2) | $ 0.1 | $ 1.3 |
Employee Benefits - Change in A
Employee Benefits - Change in Accumulated Postretirement Benefit Obligation (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Actuarial Loss (Gain) | $ 176 | $ 256.2 | |
Other Postretirement Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Beginning Balance | 28.8 | 28.1 | |
Service Cost | 0 | 0 | $ 0 |
Interest Cost | 0.7 | 1.2 | 1.3 |
Plan Amendment | (12.7) | 0 | |
Actuarial Loss (Gain) | (0.1) | 0.2 | |
Net Claims Paid | (1) | (0.7) | |
Ending Balance | $ 15.7 | $ 28.8 | $ 28.1 |
Employee Benefits - Postretir_3
Employee Benefits - Postretirement Estimated Future Benefit Payments (Detail) - Other Postretirement Plan $ in Millions | Dec. 31, 2020USD ($) |
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | |
2021 | $ 1.7 |
2022 | 1.5 |
2023 | 1.4 |
2024 | 1.3 |
2025 | 1.2 |
2026-2030 | $ 5.1 |
Share-Based Compensation Plan_2
Share-Based Compensation Plans - Total Compensation Expense for Share-Based Payment Arrangements to Employees (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Share-Based Compensation Expense | $ 91.4 | $ 107.9 | $ 130.9 |
Tax Benefits Recognized | 22.9 | 26.7 | 32.5 |
Restricted Stock Unit Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Share-Based Compensation Expense | 78.1 | 81.4 | 96.3 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Share-Based Compensation Expense | 0.5 | 1.4 | 2.6 |
Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Share-Based Compensation Expense | $ 12.8 | $ 25.1 | $ 32 |
Share-Based Compensation Plan_3
Share-Based Compensation Plans - Narrative (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to unvested share-based compensation | $ 70.8 | ||
Weighted average period of recognition of unvested share-based compensation (in years) | 2 years | ||
Share-based compensation expense | $ 91.4 | $ 107.9 | $ 130.9 |
Stock options under the Plan, the 2002 Plan, and the 1992 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants in period (in shares) | 0 | 0 | 0 |
Stock options under the Plan, the 2002 Plan, and the 1992 Plan | Upper Limit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option maximum term (in years) | 10 years | ||
Options vest and become exercisable after the date of grant (in years) | 4 years | ||
Stock options under the Plan, the 2002 Plan, and the 1992 Plan | Lower Limit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of the fair value for options to purchase common stock on the date the options are granted | 100.00% | ||
Options vest and become exercisable after the date of grant (in years) | 1 year | ||
Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Conversion ratio | 1 | ||
Number of restricted stock units granted (in shares) | 205,847 | 213,044 | 242,232 |
Restricted stock units weighted average grant date fair value (in usd per share) | $ 100.83 | $ 93 | $ 104.72 |
Performance based units vesting period | 3 years | ||
Shares outstanding (in shares) | 660,510 | 667,741 | 797,531 |
Aggregate intrinsic value of options granted | $ 61.5 | $ 70.9 | $ 66.7 |
Vesting term of units granted | 1 year | 1 year | 1 year |
Share-based compensation expense | $ 12.8 | $ 25.1 | $ 32 |
Performance stock units, granted | Upper Limit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage at which units can vest | 150.00% | ||
Performance stock units, granted | Lower Limit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage at which units can vest | 0.00% | ||
Stock Incentive Plan 2017 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock authorized for issuance under the Plan (in shares) | 20,000,000 | ||
Stock Incentive Plan 2012 Plan and 2002 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future grant under the Plan (in shares) | 17,168,019 | ||
Non Employee Directors, Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Conversion ratio | 1 | ||
Total value of stock awards granted | $ 1.5 | $ 1.3 | $ 1.2 |
Number of stock units granted (in shares) | 20,148 | 14,232 | 11,363 |
Share-based compensation expense | $ 1.6 | $ 1.4 | $ 1.3 |
Restricted Stock Unit Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock units granted (in shares) | 772,848 | 855,112 | 815,314 |
Restricted stock units weighted average grant date fair value (in usd per share) | $ 99.58 | $ 91.89 | $ 103.74 |
Fair value of restricted stock units vested | $ 100.2 | $ 89.3 | $ 66.4 |
Restricted Stock Unit Awards | Fourth Anniversary Of Grant Date | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Conversion ratio | 1 | ||
Percentage at which units can vest | 25.00% |
Share-Based Compensation Plan_4
Share-Based Compensation Plans - Stock Options Granted, Vested, and Exercised (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
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 | 32.6 |
Tax Deduction Benefits Realized | $ 13.4 | $ 35.2 | $ 27.7 |
Share-Based Compensation Plan_5
Share-Based Compensation Plans - Changes in Nonvested Stock Options (Detail) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
SHARES | |
Nonvested stock options outstanding, at beginning of the year (in shares) | shares | 384,939 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (270,110) |
Forfeited or Cancelled (in shares) | shares | 0 |
Nonvested stock options outstanding, at end of the year (in shares) | shares | 114,829 |
WEIGHTED- AVERAGE GRANT-DATE FAIR VALUE PER SHARE | |
Nonvested stock options weighted average grant date fair value at beginning of the year (in dollars per share) | $ / shares | $ 17.45 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 16.71 |
Forfeited or Cancelled (in dollars per share) | $ / shares | 0 |
Nonvested stock options weighted average grant date fair value at end of the year (in dollars per share) | $ / shares | $ 19.18 |
Share-Based Compensation Plan_6
Share-Based Compensation Plans - Status of Stock Options and Changes (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SHARES | |||
Granted (in shares) | 0 | ||
Exercised (in shares) | (344,686) | (786,931) | (575,662) |
Stock options under the Plan, the 2002 Plan, and the 1992 Plan | |||
SHARES | |||
Options Outstanding, at beginning of the year (in shares) | 1,696,936 | ||
Granted (in shares) | 0 | ||
Exercised (in shares) | (344,686) | ||
Forfeited, Expired or Cancelled (in shares) | (2,325) | ||
Options Outstanding, at the end of year (in shares) | 1,349,925 | 1,696,936 | |
Options Exercisable at the end of year (in shares) | 1,235,096 | ||
Weighted average exercise price per share | |||
Options Outstanding, Beginning Balance (in dollars per share) | $ 64.77 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 56.65 | ||
Forfeited, Expired or Cancelled (in dollars per share) | 49.54 | ||
Options Outstanding, Ending Balance (in dollars per share) | 66.87 | $ 64.77 | |
Options Exercisable, at the end of the year (in dollars per share) | $ 64.90 | ||
Weighted average remaining contractual term (years) | |||
Options Outstanding, at the end of the year | 3 years 3 months 18 days | ||
Options Exercisable, at the end of the year | 3 years 2 months 12 days | ||
Aggregate intrinsic value | |||
Options Outstanding, at the end of year | $ 35.5 | ||
Options Exercisable at end of the year | $ 34.9 |
Share-Based Compensation Plan_7
Share-Based Compensation Plans - Outstanding Restricted Stock Unit Awards (Detail) - Restricted Stock Unit Awards - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
NUMBER | ||
Balance at beginning of period (in shares) | 2,644,762 | |
Granted (in shares) | 772,848 | |
Distributed (in shares) | (1,245,412) | |
Forfeited (in shares) | (26,547) | |
Balance at end of period (in shares) | 2,145,651 | |
Units Convertible, at the end of year (in shares) | 19,770 | |
AGGREGATE INTRINSIC VALUE | ||
AGGREGATE INTRINSIC VALUE | $ 199.8 | $ 281 |
Units Convertible, at the end of year | $ 1.8 |
Share-Based Compensation Plan_8
Share-Based Compensation Plans - Nonvested Restricted Stock Unit Awards (Detail) - Restricted Stock Unit Awards - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
NUMBER | ||
Beginning Balance (in shares) | 2,624,210 | |
Granted (in shares) | 772,848 | |
Vested (in shares) | (1,244,630) | |
Forfeited (in shares) | (26,547) | |
Ending Balance (in shares) | 2,125,881 | 2,624,210 |
WEIGHTED AVERAGE GRANT- DATE FAIR VALUE PER UNIT | ||
Nonvested at beginning of year (in dollars per share) | $ 87.26 | |
Granted (in dollars per share) | 99.58 | |
Vested (in dollars per share) | 80.46 | |
Forfeited (in dollars per share) | 95.41 | |
Nonvested at end of year (in dollars per share) | $ 95.61 | $ 87.26 |
WEIGHTED AVERAGE REMAINING VESTING TERM (YEARS) | ||
WEIGHTED AVERAGE REMAINING VESTING TERM (YEARS) | 2 years 1 month 6 days | 1 year 8 months 12 days |
Cash-Based Compensation Plans -
Cash-Based Compensation Plans - Narrative (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Compensation Related Costs [Abstract] | |||
Cash based compensation expense | $ 296.2 | $ 326.1 | $ 326.5 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Summary of Off-Balance Sheet Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Loss Contingencies [Line Items] | ||
ONE YEAR AND LESS | $ 170,021.2 | $ 147,186 |
OVER ONE YEAR | 18,441.5 | 17,751.9 |
TOTAL | 188,462.7 | 164,937.9 |
Legally Binding Commitments to Extend Credit | ||
Loss Contingencies [Line Items] | ||
Commitments, participated to others | 384.7 | 243.6 |
Custody Securities Lent with Indemnification | ||
Loss Contingencies [Line Items] | ||
ONE YEAR AND LESS | 157,478 | 138,085.9 |
OVER ONE YEAR | 0 | 0 |
TOTAL | 157,478 | 138,085.9 |
Secured by Cash Deposits or Participated to Others | Standby Letters of Credit | ||
Loss Contingencies [Line Items] | ||
TOTAL | 24.2 | 44.5 |
Legally Binding Commitments to Extend Credit | ||
Loss Contingencies [Line Items] | ||
ONE YEAR AND LESS | 11,260.5 | 7,500.2 |
OVER ONE YEAR | 17,678 | 16,906 |
TOTAL | 28,938.5 | 24,406.2 |
Standby Letters of Credit | ||
Loss Contingencies [Line Items] | ||
ONE YEAR AND LESS | 1,228.1 | 1,567.6 |
OVER ONE YEAR | 763.5 | 845.9 |
TOTAL | 1,991.6 | 2,413.5 |
Commercial Letters of Credit | ||
Loss Contingencies [Line Items] | ||
ONE YEAR AND LESS | 54.6 | 32.3 |
OVER ONE YEAR | 0 | 0 |
TOTAL | $ 54.6 | $ 32.3 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - Narrative (Detail) shares in Millions | Sep. 27, 2019USD ($) | Jun. 28, 2018USD ($) | Jun. 30, 2016USD ($)shares | Jun. 30, 2015USD ($)shares | Dec. 31, 2015trust | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares |
Loss Contingencies [Line Items] | |||||||
Minimum collateral maintained against fair value of client securities loaned plus accrued interest | 100.00% | ||||||
Accruals recorded for pending litigation or threatened legal actions or regulatory matters | $ 0 | ||||||
Indemnification Agreement | |||||||
Loss Contingencies [Line Items] | |||||||
Securities loaned and subject to indemnification | 157,500,000,000 | $ 138,100,000,000 | |||||
Credit loss liability | $ 0 | $ 0 | |||||
Visa Class B | |||||||
Loss Contingencies [Line Items] | |||||||
Redemption gain | $ 123,100,000 | $ 99,900,000 | |||||
Common stock issued (in shares) | shares | 1.1 | 1 | |||||
Common stock shares held (in shares) | shares | 4.1 | 4.1 | |||||
Remaining visa shares held by Northern Trust, original cost basis | $ 0 | $ 0 | |||||
Northern Trust Fiduciary Services (Guernsey) Limited | Subsidiaries | |||||||
Loss Contingencies [Line Items] | |||||||
Number of administrated trusts served as trustee on | trust | 2 | ||||||
Lower Limit | |||||||
Loss Contingencies [Line Items] | |||||||
Possible loss in future periods in excess of accrual | 0 | ||||||
Upper Limit | |||||||
Loss Contingencies [Line Items] | |||||||
Possible loss in future periods in excess of accrual | $ 20,000,000 | ||||||
Visa Class B Litigation Case | Visa Inc. | |||||||
Loss Contingencies [Line Items] | |||||||
Payment to escrow deposit | $ 300,000,000 | $ 600,000,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Notional and Fair Value Amounts of Derivative Financial Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
NOTIONAL VALUE | $ 346,752.1 | $ 310,600.7 |
ASSET | 4,097.2 | 2,844 |
Asset, Total Gross Derivative | 4,558.2 | 3,387.7 |
Less: Asset, Netting | 3,507.8 | 2,338 |
Derivative Assets | 1,050.4 | 1,049.7 |
LIABILITY | 3,738 | 2,312.4 |
Derivative Liabilities | 4,882.8 | 3,313 |
Less: Liability, Netting | 2,817.1 | 1,618.4 |
Derivative Liabilities | 2,065.7 | 1,694.6 |
Derivatives Designated as Hedging under GAAP | ||
Derivative [Line Items] | ||
NOTIONAL VALUE | 14,802.3 | 9,273.5 |
ASSET | 23.8 | 102.7 |
LIABILITY | 321.9 | 44.5 |
Derivatives Designated as Hedging under GAAP | Fair Value Hedges | Interest Rate Contracts | ||
Derivative [Line Items] | ||
NOTIONAL VALUE | 4,717.6 | 4,538.2 |
ASSET | 8.2 | 20.3 |
LIABILITY | 10.2 | 20.9 |
Derivatives Designated as Hedging under GAAP | Cash Flow Hedges | Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
NOTIONAL VALUE | 6,554.4 | 1,661.5 |
ASSET | 15.4 | 8.5 |
LIABILITY | 104 | 11.5 |
Derivatives Designated as Hedging under GAAP | Cash Flow Hedges | Interest Rate Contracts | ||
Derivative [Line Items] | ||
NOTIONAL VALUE | 50 | 200 |
ASSET | 0.1 | 0.2 |
LIABILITY | 0 | 0.2 |
Derivatives Designated as Hedging under GAAP | Net Investment Hedges | Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
NOTIONAL VALUE | 3,480.3 | 2,873.8 |
ASSET | 0.1 | 73.7 |
LIABILITY | 207.7 | 11.9 |
Total Derivatives Not Designated as Hedging under GAAP | Fair Value Hedges | ||
Derivative [Line Items] | ||
NOTIONAL VALUE | 331,949.8 | 301,327.2 |
ASSET | 4,534.4 | 3,285 |
LIABILITY | 4,560.9 | 3,268.5 |
Derivatives Not Designated as Hedging under GAAP | Fair Value Hedges | ||
Derivative [Line Items] | ||
NOTIONAL VALUE | 813.1 | 816.8 |
ASSET | 0.1 | 0.9 |
LIABILITY | 35.4 | 34.1 |
Derivatives Not Designated as Hedging under GAAP | Fair Value Hedges | Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
NOTIONAL VALUE | 67.7 | 176.5 |
ASSET | 0.1 | 0.9 |
LIABILITY | 0.1 | 0.7 |
Derivatives Not Designated as Hedging under GAAP | Fair Value Hedges | Other Financial Derivatives | ||
Derivative [Line Items] | ||
NOTIONAL VALUE | 745.4 | 640.3 |
ASSET | 0 | 0 |
LIABILITY | 35.3 | 33.4 |
Client-Related and Trading Derivatives | Fair Value Hedges | ||
Derivative [Line Items] | ||
NOTIONAL VALUE | 331,136.7 | 300,510.4 |
ASSET | 4,534.3 | 3,284.1 |
LIABILITY | 4,525.5 | 3,234.4 |
Client-Related and Trading Derivatives | Fair Value Hedges | Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
NOTIONAL VALUE | 320,563.4 | 291,533.6 |
ASSET | 4,245.1 | 3,151.7 |
LIABILITY | 4,410.7 | 3,158.1 |
Client-Related and Trading Derivatives | Fair Value Hedges | Interest Rate Contracts | ||
Derivative [Line Items] | ||
NOTIONAL VALUE | 10,573.3 | 8,976.8 |
ASSET | 289.2 | 132.4 |
LIABILITY | $ 114.8 | $ 76.3 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Net foreign exchange contract gains (losses) reclassified from AOCI | $ 0 | $ 0 | $ 0 |
Maximum length of time being hedged for exposure to variability in future cash flows of forecasted foreign currency denominated transactions | 23 months | ||
Net investment hedge losses recognized in AOCI | $ 178.7 | $ (59.7) | |
Foreign Currency Denominate | |||
Derivative [Line Items] | |||
Estimated net gain (loss) to be reclassified into earnings within the next twelve months relating to cash flow hedges | 3.2 | ||
Foreign Currency Denominated Investment Securities | |||
Derivative [Line Items] | |||
Estimated net gain (loss) to be reclassified into earnings within the next twelve months relating to cash flow hedges | 83.1 | ||
Available-for-sale Securities | |||
Derivative [Line Items] | |||
Estimated net gain (loss) to be reclassified into earnings within the next twelve months relating to cash flow hedges | $ 0.1 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Location and Amount of Fair Value Hedge Derivative Gains and Losses Recorded in Income (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest Income | $ 2,321.4 | $ 1,643.5 | $ 2,499.9 | $ 2,321.4 |
Interest Expense | 698.7 | 200.3 | 822 | 698.7 |
Other Operating Income | 127.5 | 194 | 145.5 | $ 127.5 |
INTEREST INCOME | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gains (losses) recognized on fair value hedges | 17.8 | (13.2) | 21.2 | |
Total gain/(loss) recognized on cash flow hedges | 67.2 | 27.9 | 25.9 | |
INTEREST EXPENSE | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gains (losses) recognized on fair value hedges | 7.9 | 29.9 | 5.2 | |
Total gain/(loss) recognized on cash flow hedges | 0 | 0 | 0 | |
OTHER OPERATING INCOME | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gains (losses) recognized on fair value hedges | 0 | 0 | 0 | |
Total gain/(loss) recognized on cash flow hedges | 3.9 | 0.2 | 0.8 | |
Interest Rate Contracts | INTEREST INCOME | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest Rate Contracts, Recognized on Derivatives | 13.9 | (66.3) | (95.9) | |
Interest Rate Contracts, Recognized on Hedged Items | (13.9) | 66.3 | 95.9 | |
Interest Rate Contracts, Amounts Related to Interest Settlements on Derivatives | 17.8 | (13.2) | 21.2 | |
Total gain/(loss) recognized on cash flow hedges | (0.2) | 0.5 | (0.5) | |
Interest Rate Contracts | INTEREST EXPENSE | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest Rate Contracts, Recognized on Derivatives | (9.5) | 100.2 | 99.4 | |
Interest Rate Contracts, Recognized on Hedged Items | 9.5 | (100.2) | (99.4) | |
Interest Rate Contracts, Amounts Related to Interest Settlements on Derivatives | 7.9 | 29.9 | 5.2 | |
Total gain/(loss) recognized on cash flow hedges | 0 | 0 | 0 | |
Interest Rate Contracts | OTHER OPERATING INCOME | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest Rate Contracts, Recognized on Derivatives | 0 | 0 | 0 | |
Interest Rate Contracts, Recognized on Hedged Items | 0 | 0 | 0 | |
Interest Rate Contracts, Amounts Related to Interest Settlements on Derivatives | 0 | 0 | 0 | |
Total gain/(loss) recognized on cash flow hedges | 0 | 0 | 0 | |
Foreign Exchange Contracts | INTEREST INCOME | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain/(loss) recognized on cash flow hedges | 67.4 | 27.4 | 26.4 | |
Foreign Exchange Contracts | INTEREST EXPENSE | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain/(loss) recognized on cash flow hedges | 0 | 0 | 0 | |
Foreign Exchange Contracts | OTHER OPERATING INCOME | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain/(loss) recognized on cash flow hedges | $ 3.9 | $ 0.2 | $ 0.8 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Hedged Items in Fair Value (Detail) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Carrying Value Of The Hedged Items, Available for Sale Debt Securities | $ 2,075,100,000 | $ 2,981,000,000 |
Carrying Value Of The Hedged Items, Senior Notes and Long-Term Subordinated Debt | 2,745,100,000 | 1,748,500,000 |
Carrying Value Of the Hedged Items, Total | 4,820,200,000 | 4,729,500,000 |
Cumulative Hedge Accounting Basis Adjustment, Available for Sale Debt Securities | 48,800,000 | 3,300,000 |
Cumulative Hedge Accounting Basis Adjustment, Senior Notes and Long-Term Subordinated Debt | 221,500,000 | 126,900,000 |
Cumulative Hedge Accounting Basis Adjustment, Total | 270,300,000 | 130,200,000 |
Hedged asset, fair value hedge, discontinued, cumulative increase (decrease) | 10,400,000 | |
Hedged liability, fair value hedge, discontinued, cumulative increase (decrease) | $ 0 | 0 |
Hedged asset (liability), fair value hedge, discontinued, cumulative increase (decrease), net | $ 1,500,000 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Location and Amount of Gains and Losses Recorded in Income for Derivatives not Designated as Hedging Under GAAP (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Non-designated risk management derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) from derivatives not designated as hedging under GAAP | $ (11.9) | $ (21.6) | $ (23.3) |
Client-related and trading derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) from derivatives not designated as hedging under GAAP | 312.8 | 263.8 | 314.9 |
Total Derivatives Not Designated as Hedging under GAAP | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) from derivatives not designated as hedging under GAAP | 300.9 | 242.2 | 291.6 |
Foreign Exchange Contracts | Other Operating Income | Non-designated risk management derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) from derivatives not designated as hedging under GAAP | 6.4 | (1.6) | (4.1) |
Foreign Exchange Contracts | Foreign Exchange Trading Income | Client-related and trading derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) from derivatives not designated as hedging under GAAP | 290.4 | 250.9 | 307.2 |
Other Financial Derivatives | Other Operating Income | Non-designated risk management derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) from derivatives not designated as hedging under GAAP | (18.3) | (20) | (19.2) |
Interest Rate Contracts | Security Commissions and Trading Income | Client-related and trading derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) from derivatives not designated as hedging under GAAP | $ 22.4 | $ 12.9 | $ 7.7 |
Offsetting of Assets and Liab_3
Offsetting of Assets and Liabilities - Offsetting of Derivative Assets and Securities Purchased Under Agreements to Resell (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Total Derivatives Subject to a Master Netting Arrangement | ||
Assets | $ 4,097.2 | $ 2,844 |
GROSS AMOUNTS OFFSET IN THE BALANCE SHEET | 3,507.8 | 2,338 |
NET AMOUNTS PRESENTED IN THE BALANCE SHEET | 589.4 | 506 |
GROSS AMOUNTS NOT OFFSET IN THE BALANCE SHEET | 0.9 | 16.5 |
Net Amount | 588.5 | 489.5 |
Total Derivatives Not Subject to a Master Netting Arrangement | ||
Total Derivatives Not Subject to a Master Netting Arrangement | 461 | 543.7 |
GROSS AMOUNTS NOT OFFSET IN THE BALANCE SHEET | 0 | 0.3 |
Net Amount | 461 | 543.4 |
Total Derivatives | ||
GROSS RECOGNIZED ASSETS | 4,558.2 | 3,387.7 |
Derivative Assets | 1,050.4 | 1,049.7 |
GROSS AMOUNTS NOT OFFSET IN THE BALANCE SHEET | 0.9 | 16.8 |
Net Amount | 1,049.5 | 1,032.9 |
Securities Purchased under Agreements to Resell | ||
GROSS RECOGNIZED ASSETS | 1,596.5 | 707.8 |
NET AMOUNTS PRESENTED IN THE BALANCE SHEET | 1,596.5 | 707.8 |
GROSS AMOUNTS NOT OFFSET IN THE BALANCE SHEET | 1,596.5 | 707.8 |
Other assets (excluding derivative assets) | 7,300 | 7,400 |
Foreign Exchange Contracts | Over the Counter Derivative | ||
Total Derivatives Subject to a Master Netting Arrangement | ||
Assets | 3,799.7 | 2,691.1 |
GROSS AMOUNTS OFFSET IN THE BALANCE SHEET | 3,505.3 | 2,334.1 |
NET AMOUNTS PRESENTED IN THE BALANCE SHEET | 294.4 | 357 |
GROSS AMOUNTS NOT OFFSET IN THE BALANCE SHEET | 0.9 | 16.5 |
Net Amount | 293.5 | 340.5 |
Interest Rate Swaps | Over the Counter Derivative | ||
Total Derivatives Subject to a Master Netting Arrangement | ||
Assets | 295.9 | 151.9 |
GROSS AMOUNTS OFFSET IN THE BALANCE SHEET | 2.5 | 3.9 |
NET AMOUNTS PRESENTED IN THE BALANCE SHEET | 293.4 | 148 |
Net Amount | 293.4 | 148 |
Interest Rate Swaps | Interest Rate Swaps Exchange Cleared | ||
Total Derivatives Subject to a Master Netting Arrangement | ||
Assets | 1.6 | 1 |
GROSS AMOUNTS OFFSET IN THE BALANCE SHEET | 0 | 0 |
NET AMOUNTS PRESENTED IN THE BALANCE SHEET | 1.6 | 1 |
Net Amount | $ 1.6 | $ 1 |
Offsetting of Assets and Liab_4
Offsetting of Assets and Liabilities - Offsetting of Derivative Liabilities and of Securities Sold Under Agreements to Repurchase (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Total Derivatives Subject to a Master Netting Arrangement | ||
GROSS RECOGNIZED LIABILITIES | $ 3,738 | $ 2,312.4 |
GROSS AMOUNTS OFFSET IN THE BALANCE SHEET | 2,817.1 | 1,618.4 |
NET AMOUNTS PRESENTED IN THE BALANCE SHEET | 920.9 | 694 |
GROSS AMOUNTS NOT OFFSET IN THE BALANCE SHEET | 0.5 | 0.1 |
Net Amount | 920.4 | 693.9 |
Total Derivatives Not Subject to a Master Netting Arrangement | ||
GROSS RECOGNIZED LIABILITIES | 1,144.8 | 1,000.6 |
Total Derivatives Not Subject to a Master Netting Arrangement | 0.5 | 0.1 |
Total Derivatives | ||
GROSS RECOGNIZED LIABILITIES | 4,882.8 | 3,313 |
Derivative Liabilities | 2,065.7 | 1,694.6 |
Net Amount | 2,065.2 | 1,694.5 |
Securities Sold under Agreements to Repurchase | ||
GROSS RECOGNIZED LIABILITIES | 39.8 | 489.7 |
NET AMOUNTS PRESENTED IN THE BALANCE SHEET | 39.8 | 489.7 |
GROSS AMOUNTS NOT OFFSET IN THE BALANCE SHEET | (39.8) | (489.7) |
Other liabilities | 3,500 | 3,100 |
Foreign Exchange Contracts | Over the Counter Derivative | ||
Total Derivatives Subject to a Master Netting Arrangement | ||
GROSS RECOGNIZED LIABILITIES | 3,577.7 | 2,181.6 |
GROSS AMOUNTS OFFSET IN THE BALANCE SHEET | 2,718.6 | 1,548.6 |
NET AMOUNTS PRESENTED IN THE BALANCE SHEET | 859.1 | 633 |
GROSS AMOUNTS NOT OFFSET IN THE BALANCE SHEET | 0.5 | 0.1 |
Net Amount | 858.6 | 632.9 |
Interest Rate Swaps | Over the Counter Derivative | ||
Total Derivatives Subject to a Master Netting Arrangement | ||
GROSS RECOGNIZED LIABILITIES | 125 | 96.7 |
GROSS AMOUNTS OFFSET IN THE BALANCE SHEET | 98.5 | 57.3 |
NET AMOUNTS PRESENTED IN THE BALANCE SHEET | 26.5 | 39.4 |
Net Amount | 26.5 | 39.4 |
Interest Rate Swaps | Interest Rate Swaps Exchange Cleared | ||
Total Derivatives Subject to a Master Netting Arrangement | ||
GROSS RECOGNIZED LIABILITIES | 0 | 0.7 |
GROSS AMOUNTS OFFSET IN THE BALANCE SHEET | 0 | 0 |
NET AMOUNTS PRESENTED IN THE BALANCE SHEET | 0 | 0.7 |
Net Amount | 0 | 0.7 |
Other Financial Derivatives | ||
Total Derivatives Subject to a Master Netting Arrangement | ||
NET AMOUNTS PRESENTED IN THE BALANCE SHEET | 35.3 | 20.9 |
Net Amount | 35.3 | 20.9 |
Other Financial Derivatives | Other Financial Derivatives | ||
Total Derivatives Subject to a Master Netting Arrangement | ||
GROSS RECOGNIZED LIABILITIES | 35.3 | 33.4 |
GROSS AMOUNTS OFFSET IN THE BALANCE SHEET | $ 0 | $ 12.5 |
Offsetting of Assets and Liab_5
Offsetting of Assets and Liabilities - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Gross amounts not offset in the balance sheet, received from | $ 0.9 | $ 16.5 |
Gross amounts not offset in the balance sheet, deposited | 0.5 | 0.1 |
Aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a liability position | 1,648.2 | 766.2 |
Collateral deposited with derivative counterparties for derivatives instruments with credit-risk-related contingent features that are in a liability position | 1,044 | 327.1 |
Assets needed for immediate settlement, aggregate fair value | 604.2 | 439.1 |
Net Investment Hedges | ||
Derivative [Line Items] | ||
Gross amounts not offset in the balance sheet, received from | 111 | |
Gross amounts not offset in the balance sheet, deposited | $ 49 | |
Cash collateral received from derivative counterparties not offset against derivative assets | 196.3 | |
Cash collateral deposited with derivative counterparties not offset against derivative liabilities | $ 2 |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | |||
Assets | $ 170,003,900,000 | $ 136,828,400,000 | $ 132,212,500,000 |
Liabilities | 158,315,600,000 | 125,737,400,000 | |
Investment company, voluntary fee waived | 36,400,000 | ||
Unfunded commitment related to seed capital investments | 0 | 0 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Seed Capital Investments | 0 | ||
Tax Credit Structures | |||
Variable Interest Entity [Line Items] | |||
Exposure to loss from liquidity arrangements and obligations to purchase assets | 0 | ||
Affordable housing tax credits and other tax benefits | 78,900,000 | 67,400,000 | |
Leveraged Leasing Transactions | |||
Variable Interest Entity [Line Items] | |||
Exposure to loss from liquidity arrangements and obligations to purchase assets | 0 | ||
Leveraged Leasing Transactions | Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | $ 11,400,000 | 42,600,000 | |
Leveraged Leasing Transactions | Lower Limit | |||
Variable Interest Entity [Line Items] | |||
Funding of asset's cost via an equity interest | 20.00% | ||
Funding of asset's cost via third party non recourse debt holders | 70.00% | ||
Leveraged Leasing Transactions | Upper Limit | |||
Variable Interest Entity [Line Items] | |||
Funding of asset's cost via an equity interest | 30.00% | ||
Funding of asset's cost via third party non recourse debt holders | 80.00% | ||
Other Assets | |||
Variable Interest Entity [Line Items] | |||
Investments in community development projects, carrying amount, assets | $ 919,600,000 | 749,300,000 | |
Alternative investment | 112,000,000 | ||
Other Assets | Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | 874,000,000 | 700,300,000 | |
Other Liabilities | |||
Variable Interest Entity [Line Items] | |||
Investments in community development projects, carrying amount, liabilities | 351,600,000 | 376,200,000 | |
Other Liabilities | Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Liabilities | $ 335,900,000 | $ 354,300,000 |
Pledged and Restricted Assets -
Pledged and Restricted Assets - Type of Pledged Assets (Details) - USD ($) $ in Billions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Amount of securities and loans pledged | $ 47.5 | $ 42.1 |
Obligations of States and Political Subdivisions | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Amount of securities and loans pledged | 2.9 | 1 |
Government Sponsored Agency and Other Securities | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Amount of securities and loans pledged | 32.5 | 33.4 |
Loans | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Amount of securities and loans pledged | $ 12.1 | $ 7.7 |
Pledged and Restricted Assets_2
Pledged and Restricted Assets - Narrative (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Amount of securities and loans pledged | $ 47,500,000,000 | $ 42,100,000,000 |
Financial instruments owned and pledged as collateral, amount eligible to be repledged by counterparty | 33,500,000 | 487,200,000 |
Amount of securities repledged or sold collateral | 0 | 0 |
Average deposits maintained to meet Federal Reserve Bank reserve requirements | 400,000,000 | 1,500,000,000 |
Collateral Requirements | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Amount of securities and loans pledged | $ 5,700,000,000 | $ 8,500,000,000 |
Pledged and Restricted Assets_3
Pledged and Restricted Assets - Fair Value of Available for Sale Debt Securities Included In Pledged Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Amount of securities and loans pledged | $ 47,500 | $ 42,100 |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Amount of securities and loans pledged | 33 | 487.1 |
Derivative contracts | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Amount of securities and loans pledged | $ 27.1 | $ 14.4 |
Pledged and Restricted Assets_4
Pledged and Restricted Assets - Accepted Collateral (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Reverse repurchase agreements | ||
Customer Securities for which Entity has Right to Sell or Repledge (Including Securities Sold or Repledged) [Line Items] | ||
Fair value of securities received as collateral that can be resold or repledged | $ 1,179.8 | $ 707.8 |
Fair value of accepted collateral | 500 | 0 |
Derivative contracts | ||
Customer Securities for which Entity has Right to Sell or Repledge (Including Securities Sold or Repledged) [Line Items] | ||
Fair value of securities received as collateral that can be resold or repledged | $ 0.9 | $ 16.8 |
Reporting Segments and Relate_3
Reporting Segments and Related Information - Narrative (Detail) | 12 Months Ended |
Dec. 31, 2020segment | |
Segment Reporting [Abstract] | |
Number of client-focused reportable segment | 2 |
Reporting Segments and Relate_4
Reporting Segments and Related Information - Earnings Contribution of Northern Trust's Reporting Segments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Noninterest Income | |||
Trust, Investment and Other Servicing Fees | $ 3,995 | $ 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 | 1,477.6 | 1,710.7 | 1,663.9 |
Revenue | 6,135.2 | 6,105.9 | 6,001.4 |
Provision for Credit Losses | (14.5) | (14.5) | |
Noninterest Expense | 4,348.2 | 4,143.5 | 4,016.9 |
Income (Loss) before Income Taxes | 1,662 | 1,976.9 | 1,999 |
Provision (Benefit) for Income Taxes | 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 |
Segment reporting information, fully taxable-equivalent adjustment | 34.4 | 32.8 | 41.2 |
Corporate and Institutional Services Results of Operations | |||
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 |
Total Noninterest Income | 2,820.4 | 2,621.9 | 2,589.5 |
Net Interest Income | 665.5 | 918.7 | 992.2 |
Revenue | 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 (Loss) before Income Taxes | 695.1 | 933.2 | 1,158.4 |
Provision (Benefit) for Income Taxes | 174.4 | 219.4 | 255.3 |
NET INCOME | $ 520.7 | $ 713.8 | $ 903.1 |
Percentage of Consolidated Net Income | 43.00% | 48.00% | 58.00% |
Average Assets | $ 104,790.6 | $ 87,557.1 | $ 82,996.5 |
Wealth Management | |||
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 | 131.1 | 102.7 |
Total Noninterest Income | 1,855.5 | 1,790.4 | 1,687.5 |
Net Interest Income | 812.1 | 792 | 816.5 |
Revenue | 2,667.6 | 2,582.4 | 2,504 |
Provision for Credit Losses | 86.9 | (16.4) | (16.4) |
Noninterest Expense | 1,559.7 | 1,531.6 | 1,460 |
Income (Loss) before Income Taxes | 1,021 | 1,067.2 | 1,060.4 |
Provision (Benefit) for Income Taxes | 291.8 | 271.1 | 262.1 |
NET INCOME | $ 729.2 | $ 796.1 | $ 798.3 |
Percentage of Consolidated Net Income | 60.00% | 53.00% | 51.00% |
Average Assets | $ 32,020.5 | $ 29,994.3 | $ 26,163.7 |
Treasury and Other Results of Operations | |||
Noninterest Income | |||
Total Noninterest Income | (18.3) | (17.1) | 60.5 |
Net Interest Income | 0 | 0 | (144.8) |
Revenue | (18.3) | (17.1) | (84.3) |
Noninterest Expense | 35.8 | 6.4 | 135.5 |
Income (Loss) before Income Taxes | (54.1) | (23.5) | (219.8) |
Provision (Benefit) for Income Taxes | (13.5) | (5.8) | (74.8) |
NET INCOME | $ (40.6) | $ (17.7) | $ (145) |
Percentage of Consolidated Net Income | (3.00%) | (1.00%) | (9.00%) |
Average Assets | $ 0 | $ 0 | $ 13,786.4 |
Reporting Segments and Relate_5
Reporting Segments and Related Information - Distribution of Total Assets and Operating Performance (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
TOTAL ASSETS | $ 170,003.9 | $ 136,828.4 | $ 132,212.5 |
TOTAL REVENUE | 6,100.8 | 6,073.1 | 5,960.2 |
INCOME BEFORE INCOME TAXES | 1,627.6 | 1,944.1 | 1,957.8 |
Net Income | 1,209.3 | 1,492.2 | 1,556.4 |
Non-U.S. | |||
Segment Reporting Information [Line Items] | |||
TOTAL ASSETS | 38,393.8 | 27,888.6 | 32,712.9 |
TOTAL REVENUE | 1,737.6 | 1,889.5 | 2,018.1 |
INCOME BEFORE INCOME TAXES | 404 | 600 | 786.4 |
Net Income | 302.6 | 451 | 625.7 |
U.S. | |||
Segment Reporting Information [Line Items] | |||
TOTAL ASSETS | 131,610.1 | 108,939.8 | 99,499.6 |
TOTAL REVENUE | 4,363.2 | 4,183.6 | 3,942.1 |
INCOME BEFORE INCOME TAXES | 1,223.6 | 1,344.1 | 1,171.4 |
Net Income | $ 906.7 | $ 1,041.2 | $ 930.7 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements - Risk-Based Capital Amounts and Ratios (Detail) $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
STANDARDIZED APPROACH | Parent Company | ||
Tier 1 Capital | ||
BALANCE | $ 10,822.2 | $ 10,152 |
RATIO | 0.139 | 0.145 |
Minimum to qualify as well-capitalized balance | $ 4,659.7 | $ 4,205.3 |
Minimum to qualify as well-capitalized ratio | 0.060 | 0.060 |
Total Capital | ||
BALANCE | $ 12,085.7 | $ 11,456.7 |
RATIO | 0.156 | 0.163 |
Minimum to qualify as well-capitalized balance | $ 7,766.2 | $ 7,008.8 |
Minimum to qualify as well-capitalized ratio | 0.100 | 0.100 |
Leverage (Tier 1 Capital to Adjusted Average Fourth Quarter Assets) | ||
BALANCE | $ 10,822.2 | $ 10,152 |
RATIO | 0.076 | 0.087 |
STANDARDIZED APPROACH | Parent Company | Common Stock | ||
Tier 1 Capital | ||
BALANCE | $ 9,962.2 | $ 8,898.7 |
RATIO | 0.128 | 0.127 |
STANDARDIZED APPROACH | The Northern Trust Company | ||
Tier 1 Capital | ||
BALANCE | $ 10,003.3 | $ 8,476 |
RATIO | 0.130 | 0.123 |
Minimum to qualify as well-capitalized balance | $ 6,147 | $ 5,504 |
Minimum to qualify as well-capitalized ratio | 0.080 | 0.080 |
Total Capital | ||
BALANCE | $ 11,123.1 | $ 9,610.4 |
RATIO | 0.145 | 0.140 |
Minimum to qualify as well-capitalized balance | $ 7,683.7 | $ 6,880.1 |
Minimum to qualify as well-capitalized ratio | 0.100 | 0.100 |
Leverage (Tier 1 Capital to Adjusted Average Fourth Quarter Assets) | ||
BALANCE | $ 10,003.3 | $ 8,476 |
RATIO | 0.070 | 0.073 |
Minimum to qualify as well-capitalized balance | $ 7,105 | $ 5,835.4 |
Minimum to qualify as well-capitalized ratio | 0.050 | 0.050 |
STANDARDIZED APPROACH | The Northern Trust Company | Common Stock | ||
Tier 1 Capital | ||
BALANCE | $ 10,003.3 | $ 8,476 |
RATIO | 0.130 | 0.123 |
Minimum to qualify as well-capitalized balance | $ 4,994.4 | $ 4,472 |
Minimum to qualify as well-capitalized ratio | 0.065 | 0.065 |
ADVANCED APPROACH | Parent Company | ||
Tier 1 Capital | ||
BALANCE | $ 10,822.2 | $ 10,152 |
RATIO | 0.145 | 0.150 |
Minimum to qualify as well-capitalized balance | $ 4,467.6 | $ 4,051.6 |
Minimum to qualify as well-capitalized ratio | 0.060 | 0.060 |
Total Capital | ||
BALANCE | $ 11,825.8 | $ 11,332.3 |
RATIO | 0.159 | 0.168 |
Minimum to qualify as well-capitalized balance | $ 7,446 | $ 6,752.7 |
Minimum to qualify as well-capitalized ratio | 0.100 | 0.100 |
Leverage (Tier 1 Capital to Adjusted Average Fourth Quarter Assets) | ||
BALANCE | $ 10,822.2 | $ 10,152 |
RATIO | 0.076 | 0.087 |
Supplementary Leverage Capital [Abstract] | ||
Supplementary leverage capital | $ 10,822.2 | $ 10,152 |
Supplementary leverage capital to average assets | 8.60% | 7.60% |
ADVANCED APPROACH | Parent Company | Common Stock | ||
Tier 1 Capital | ||
BALANCE | $ 9,962.2 | $ 8,898.7 |
RATIO | 0.134 | 0.132 |
ADVANCED APPROACH | The Northern Trust Company | ||
Tier 1 Capital | ||
BALANCE | $ 10,003.3 | $ 8,476 |
RATIO | 0.138 | 0.130 |
Minimum to qualify as well-capitalized balance | $ 5,805.6 | $ 5,206.2 |
Minimum to qualify as well-capitalized ratio | 0.080 | 0.080 |
Total Capital | ||
BALANCE | $ 10,863.3 | $ 9,486 |
RATIO | 0.150 | 0.146 |
Minimum to qualify as well-capitalized balance | $ 7,257 | $ 6,507.7 |
Minimum to qualify as well-capitalized ratio | 0.100 | 0.100 |
Leverage (Tier 1 Capital to Adjusted Average Fourth Quarter Assets) | ||
BALANCE | $ 10,003.3 | $ 8,476 |
RATIO | 0.070 | 0.073 |
Minimum to qualify as well-capitalized balance | $ 7,105 | $ 5,835.4 |
Minimum to qualify as well-capitalized ratio | 0.050 | 0.050 |
Supplementary Leverage Capital [Abstract] | ||
Supplementary leverage capital | $ 10,003.3 | $ 8,476 |
Supplementary leverage capital to average assets | 7.70% | 6.40% |
Supplementary leverage capital required to be well capitalized | $ 3,883.4 | $ 3,983.6 |
Supplementary leverage ratio | 0.030 | 0.030 |
ADVANCED APPROACH | The Northern Trust Company | Common Stock | ||
Tier 1 Capital | ||
BALANCE | $ 10,003.3 | $ 8,476 |
RATIO | 0.138 | 0.130 |
Minimum to qualify as well-capitalized balance | $ 4,717.1 | $ 4,230 |
Minimum to qualify as well-capitalized ratio | 0.065 | 0.065 |
Northern Trust Corporation (C_3
Northern Trust Corporation (Corporation only) - Condensed Balance Sheet (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||||
Cash on Deposit with Subsidiary Bank | $ 4,389.5 | $ 4,459.2 | ||
Other Assets | 8,384.9 | 8,401.3 | ||
Total Assets | 170,003.9 | 136,828.4 | $ 132,212.5 | |
LIABILITIES | ||||
Senior Notes | 3,122.4 | 2,573 | ||
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 | ||||
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 | (194.7) | ||
Treasury Stock | (3,204.5) | (3,066.1) | ||
Total Stockholders’ Equity | 11,688.3 | 11,091 | 10,508.3 | $ 10,216.2 |
Total Liabilities and Stockholders’ Equity | 170,003.9 | 136,828.4 | ||
Parent Company | ||||
ASSETS | ||||
Cash on Deposit with Subsidiary Bank | 2,516 | 2,559.1 | $ 866.8 | $ 1,002.5 |
Other Assets | 900.9 | 1,444.7 | ||
Total Assets | 17,059.6 | 15,886.6 | ||
LIABILITIES | ||||
Senior Notes | 3,122.4 | 2,573 | ||
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 | (194.7) | ||
Treasury Stock | (3,204.5) | (3,066.1) | ||
Total Stockholders’ Equity | 11,688.3 | 11,091 | ||
Total Liabilities and Stockholders’ Equity | 17,059.6 | 15,886.6 | ||
Parent Company | Banks Industry | ||||
ASSETS | ||||
Advances to Wholly-Owned Subsidiaries | 2,670 | 2,370 | ||
Investments in Wholly-Owned Subsidiaries | 10,799.9 | 9,349.8 | ||
Parent Company | Nonbank Subsidiaries | ||||
ASSETS | ||||
Investments in Wholly-Owned Subsidiaries | $ 172.8 | $ 163 |
Northern Trust Corporation (C_4
Northern Trust Corporation (Corporation only) - Condensed Statement of Income (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING INCOME | ||||
Total Operating Income | $ 6,100.8 | $ 6,073.1 | $ 5,960.2 | |
OPERATING EXPENSES | ||||
Interest Expense | $ 698.7 | 200.3 | 822 | 698.7 |
Other Operating Expenses | 346.7 | 329.8 | 330.6 | |
Total Noninterest Expense | 4,348.2 | 4,143.5 | 4,016.9 | |
Benefit 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 | |
Parent Company | ||||
OPERATING INCOME | ||||
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 | |
Total Noninterest Expense | 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 | 345.9 | (541.7) | 362 | |
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 | |
Banks Industry | Parent Company | ||||
OPERATING INCOME | ||||
Dividends from Subsidiaries | 900 | 2,024.1 | 1,200.9 | |
OPERATING EXPENSES | ||||
Equity in Undistributed Net Income of Subsidiaries | 326 | (559.9) | 336.7 | |
Nonbank Subsidiaries | Parent Company | ||||
OPERATING INCOME | ||||
Dividends from Subsidiaries | 0 | 0.4 | 0 | |
OPERATING EXPENSES | ||||
Equity in Undistributed Net Income of Subsidiaries | $ 19.9 | $ 18.2 | $ 25.3 |
Northern Trust Corporation (C_5
Northern Trust Corporation (Corporation only) - Condensed Statement of Cash Flows (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 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 | |||
Change in Accrued Income Taxes | 25.4 | (70.7) | (130) |
Other Operating Activities, net | (16.4) | (448.2) | 729.9 |
Net Cash Provided by Operating Activities | 1,896.8 | 2,592 | 1,767.5 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Proceeds from Sale, Maturity and Redemption of Debt Securities – Available for Sale | 8,748.2 | 11,057.2 | 8,958.7 |
Acquisition of a Business, Net of Cash Received | 0 | (10.5) | (104.2) |
Other Investing Activities, net | (322.7) | 225.1 | (873.6) |
Net Cash (Used in) Provided by Investing Activities | (29,923) | (3,405) | 4,327.1 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Repayments of Senior Notes | (508.6) | 0 | (314.3) |
Redemption of Preferred Stock - Series C | (400) | 0 | 0 |
Proceeds from Issuance of Preferred Stock - Series E | 0 | 392.5 | 0 |
Treasury Stock Purchased | (299.8) | (1,100.2) | (924.3) |
Net Proceeds from Stock Options | 19.5 | 44 | 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) | 1.1 |
Net Cash Provided by (Used In) Financing Activities | 27,871.9 | 615.9 | (5,818.2) |
Cash and Due from Banks at Beginning of Year | 4,459.2 | ||
Cash and Due from Banks at End of Year | 4,389.5 | 4,459.2 | |
Parent Company | |||
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) |
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 | 0 | 0 | 1 |
Investments in and Advances to Subsidiaries, net | (800) | 540 | (436.5) |
Acquisition of a Business, Net of Cash Received | 0 | 0 | (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 | 497.9 |
Repayments of Senior Notes | (508.6) | 0 | 0 |
Redemption of Preferred Stock - Series C | (400) | 0 | 0 |
Proceeds from Issuance of Preferred Stock - Series E | 0 | 392.5 | 0 |
Treasury Stock Purchased | (299.8) | (1,100.2) | (924.3) |
Net Proceeds from Stock Options | 19.5 | 44 | 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 Provided by (Used In) Financing Activities | (810.8) | (740.9) | (843.5) |
Change in Cash and Due from Banks | (43.1) | 1,692.3 | (135.7) |
Cash and Due from Banks at Beginning of Year | 2,559.1 | 866.8 | 1,002.5 |
Cash and Due from Banks at End of Year | $ 2,516 | $ 2,559.1 | $ 866.8 |