These terms and conditions govern your use of the website alphaminr.com and its related services.
These Terms and Conditions (“Terms”) are a binding contract between you and Alphaminr, (“Alphaminr”, “we”, “us” and “service”). You must agree to and accept the Terms. These Terms include the provisions in this document as well as those in the Privacy Policy. These terms may be modified at any time.
Your subscription will be on a month to month basis and automatically renew every month. You may terminate your subscription at any time through your account.
We will provide you with advance notice of any change in fees.
You represent that you are of legal age to form a binding contract. You are responsible for any
activity associated with your account. The account can be logged in at only one computer at a
time.
The Services are intended for your own individual use. You shall only use the Services in a
manner that complies with all laws. You may not use any automated software, spider or system to
scrape data from Alphaminr.
Alphaminr is not a financial advisor and does not provide financial advice of any kind. The service is provided “As is”. The materials and information accessible through the Service are solely for informational purposes. While we strive to provide good information and data, we make no guarantee or warranty as to its accuracy.
TO THE EXTENT PERMITTED BY APPLICABLE LAW, UNDER NO CIRCUMSTANCES SHALL ALPHAMINR BE LIABLE TO YOU FOR DAMAGES OF ANY KIND, INCLUDING DAMAGES FOR INVESTMENT LOSSES, LOSS OF DATA, OR ACCURACY OF DATA, OR FOR ANY AMOUNT, IN THE AGGREGATE, IN EXCESS OF THE GREATER OF (1) FIFTY DOLLARS OR (2) THE AMOUNTS PAID BY YOU TO ALPHAMINR IN THE SIX MONTH PERIOD PRECEDING THIS APPLICABLE CLAIM. SOME STATES DO NOT ALLOW THE EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUENTIAL OR CERTAIN OTHER DAMAGES, SO THE ABOVE LIMITATION AND EXCLUSIONS MAY NOT APPLY TO YOU.
If any provision of these Terms is found to be invalid under any applicable law, such provision shall not affect the validity or enforceability of the remaining provisions herein.
This privacy policy describes how we (“Alphaminr”) collect, use, share and protect your personal information when we provide our service (“Service”). This Privacy Policy explains how information is collected about you either directly or indirectly. By using our service, you acknowledge the terms of this Privacy Notice. If you do not agree to the terms of this Privacy Policy, please do not use our Service. You should contact us if you have questions about it. We may modify this Privacy Policy periodically.
When you register for our Service, we collect information from you such as your name, email address and credit card information.
Like many other websites we use “cookies”, which are small text files that are stored on your computer or other device that record your preferences and actions, including how you use the website. You can set your browser or device to refuse all cookies or to alert you when a cookie is being sent. If you delete your cookies, if you opt-out from cookies, some Services may not function properly. We collect information when you use our Service. This includes which pages you visit.
We use Google Analytics and we use Stripe for payment processing. We will not share the information we collect with third parties for promotional purposes. We may share personal information with law enforcement as required or permitted by law.
|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
36-2723087
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
50 South LaSalle Street
Chicago, Illinois
|
60603
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer
|
x
|
Accelerated filer
|
¨
|
|
|
|
|
Non-accelerated filer
|
¨
|
Smaller reporting company
|
¨
|
|
|
|
|
|
|
Emerging growth company
|
¨
|
|
|
|
|
Page
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|||||||||
CONDENSED INCOME STATEMENTS (In Millions)
|
2019
|
|
2018
|
|
% Change
(1)
|
|||||
Noninterest Income
|
$
|
1,058.9
|
|
|
$
|
1,092.0
|
|
|
(3
|
)%
|
Net Interest Income
|
422.0
|
|
|
384.0
|
|
|
10
|
|
||
Provision for Credit Losses
|
—
|
|
|
(3.0
|
)
|
|
N/M
|
|
||
Noninterest Expense
|
1,028.7
|
|
|
995.3
|
|
|
3
|
|
||
Income before Income Taxes
|
452.2
|
|
|
483.7
|
|
|
(7
|
)
|
||
Provision for Income Taxes
|
105.1
|
|
|
102.1
|
|
|
3
|
|
||
Net Income
|
$
|
347.1
|
|
|
$
|
381.6
|
|
|
(9
|
)%
|
PER COMMON SHARE
|
|
|
|
|
|
|||||
Net Income — Basic
|
$
|
1.49
|
|
|
$
|
1.59
|
|
|
(6
|
)%
|
— Diluted
|
1.48
|
|
|
1.58
|
|
|
(6
|
)
|
||
Cash Dividends Declared Per Common Share
|
0.60
|
|
|
0.42
|
|
|
43
|
|
||
Book Value — End of Period (EOP)
|
44.72
|
|
|
41.66
|
|
|
7
|
|
||
Market Price — EOP
|
90.41
|
|
|
103.13
|
|
|
(12
|
)
|
SELECTED BALANCE SHEET DATA (In Millions)
|
|
|
|
|
|
|||||
|
March 31, 2019
|
|
December 31, 2018
|
|
% Change
(1)
|
|||||
End of Period:
|
|
|
|
|
|
|||||
Assets
|
$
|
121,869.4
|
|
|
$
|
132,212.5
|
|
|
(8
|
)%
|
Earning Assets
|
111,120.5
|
|
|
122,847.3
|
|
|
(10
|
)
|
||
Deposits
|
95,844.2
|
|
|
104,496.8
|
|
|
(8
|
)
|
||
Stockholders’ Equity
|
10,616.2
|
|
|
10,508.3
|
|
|
1
|
|
|
Three Months Ended March 31,
|
|||||||||
|
2019
|
|
2018
|
|
% Change
(1)
|
|||||
Average Balances:
|
|
|
|
|
|
|||||
Assets
|
$
|
119,416.7
|
|
|
$
|
124,493.3
|
|
|
(4
|
)%
|
Earning Assets
|
110,672.2
|
|
|
115,686.3
|
|
|
(4
|
)
|
||
Deposits
|
91,369.8
|
|
|
98,197.5
|
|
|
(7
|
)
|
||
Stockholders’ Equity
|
10,428.8
|
|
|
10,137.7
|
|
|
3
|
|
CLIENT ASSETS (In Billions)
|
March 31, 2019
|
|
December 31, 2018
|
|
% Change
(1)
|
|||||
Assets Under Custody/Administration
(2)
|
$
|
10,927.4
|
|
|
$
|
10,125.3
|
|
|
8
|
%
|
Assets Under Custody
|
8,199.7
|
|
|
7,593.9
|
|
|
8
|
|
||
Assets Under Management
|
1,162.1
|
|
|
1,069.4
|
|
|
9
|
|
(1)
|
Percentage calculations are based on actual balances rather than the rounded amounts presented in the Consolidated Financial Highlights.
|
(2)
|
For the purposes of disclosing Assets Under Custody/Administration, to the extent that both custody and administration services are provided, the value of the assets is included only once.
|
|
Three Months Ended March 31,
|
||||
|
2019
|
|
2018
|
||
Financial Ratios:
|
|
|
|
||
Return on Average Common Equity
|
14.0
|
%
|
|
16.0
|
%
|
Return on Average Assets
|
1.18
|
|
|
1.24
|
|
Dividend Payout Ratio
|
40.5
|
|
|
26.6
|
|
Net Interest Margin
(1)
|
1.58
|
|
|
1.38
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||
|
Advanced
Approach
|
|
Standardized
Approach
|
|
Advanced
Approach
|
|
Standardized
Approach
|
||||
Capital Ratios:
|
|
|
|
|
|
|
|
||||
Northern Trust Corporation
|
|
|
|
|
|
|
|
||||
Common Equity Tier 1
|
13.5
|
%
|
|
13.0
|
%
|
|
13.7
|
%
|
|
12.9
|
%
|
Tier 1
|
14.8
|
|
|
14.3
|
|
|
15.0
|
|
|
14.1
|
|
Total
|
16.6
|
|
|
16.3
|
|
|
16.9
|
|
|
16.1
|
|
Tier 1 Leverage
|
8.2
|
|
|
8.2
|
|
|
8.0
|
|
|
8.0
|
|
Supplementary Leverage
|
7.2
|
|
|
N/A
|
|
|
7.0
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
||||
The Northern Trust Company
|
|
|
|
|
|
|
|
||||
Common Equity Tier 1
|
13.9
|
%
|
|
13.2
|
%
|
|
14.1
|
%
|
|
13.1
|
%
|
Tier 1
|
13.9
|
|
|
13.2
|
|
|
14.1
|
|
|
13.1
|
|
Total
|
15.5
|
|
|
14.9
|
|
|
15.8
|
|
|
14.8
|
|
Tier 1 Leverage
|
7.4
|
|
|
7.4
|
|
|
7.3
|
|
|
7.3
|
|
Supplementary Leverage
|
6.6
|
|
|
N/A
|
|
|
6.4
|
|
|
N/A
|
|
(1)
|
Net interest margin is presented on a fully taxable equivalent (FTE) basis, a non-generally accepted accounting principle (GAAP) financial measure that facilitates the analysis of asset yields. The net interest margin on a GAAP basis and a reconciliation of net interest income on a GAAP basis to net interest income on an FTE basis are presented on page
21
.
|
Noninterest Income
|
Three Months Ended March 31,
|
|
|
|
|
|||||||||
($ In Millions)
|
2019
|
|
2018
|
|
Change
|
|||||||||
Trust, Investment and Other Servicing Fees
|
$
|
928.9
|
|
|
$
|
937.7
|
|
|
$
|
(8.8
|
)
|
|
(1
|
)%
|
Foreign Exchange Trading Income
|
66.2
|
|
|
78.5
|
|
|
(12.3
|
)
|
|
(16
|
)
|
|||
Treasury Management Fees
|
11.7
|
|
|
14.0
|
|
|
(2.3
|
)
|
|
(17
|
)
|
|||
Security Commissions and Trading Income
|
23.3
|
|
|
27.2
|
|
|
(3.9
|
)
|
|
(14
|
)
|
|||
Other Operating Income
|
29.0
|
|
|
34.8
|
|
|
(5.8
|
)
|
|
(16
|
)
|
|||
Investment Security (Losses) Gains, net
|
(0.2
|
)
|
|
(0.2
|
)
|
|
—
|
|
|
30
|
|
|||
Total Noninterest Income
|
$
|
1,058.9
|
|
|
$
|
1,092.0
|
|
|
$
|
(33.1
|
)
|
|
(3
|
)%
|
|
Daily Averages
|
|
Period-End
|
||||||||||||||
|
Three Months Ended March 31,
|
|
As of March 31,
|
||||||||||||||
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
S&P 500
|
2,718
|
|
|
2,733
|
|
|
(1
|
)%
|
|
2,834
|
|
|
2,641
|
|
|
7
|
%
|
MSCI EAFE (U.S. dollars)
|
1,833
|
|
|
2,072
|
|
|
(12
|
)
|
|
1,875
|
|
|
2,002
|
|
|
(6
|
)
|
MSCI EAFE (local currency)
|
1,074
|
|
|
1,147
|
|
|
(6
|
)
|
|
1,105
|
|
|
1,105
|
|
|
—
|
|
|
As of March 31,
|
|||||||
|
2019
|
|
2018
|
|
Change
|
|||
|
|
|
|
|
|
|||
Barclays Capital U.S. Aggregate Bond Index
|
2,107
|
|
|
2,016
|
|
|
4
|
%
|
Barclays Capital Global Aggregate Bond Index
|
489
|
|
|
491
|
|
|
—
|
|
Assets Under Custody / Administration
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2018
|
|
Change Q1-19/Q4-18
|
|
Change Q1-19/Q1-18
|
||||||||
($ In Billions)
|
|||||||||||||||||
Corporate & Institutional
|
$
|
10,238.9
|
|
|
$
|
9,490.5
|
|
|
$
|
10,131.7
|
|
|
8
|
%
|
|
1
|
%
|
Wealth Management
|
688.5
|
|
|
634.8
|
|
|
654.0
|
|
|
8
|
|
|
5
|
|
|||
Total Assets Under Custody / Administration
|
$
|
10,927.4
|
|
|
$
|
10,125.3
|
|
|
$
|
10,785.7
|
|
|
8
|
%
|
|
1
|
%
|
Assets Under Custody
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2018
|
|
Change Q1-19/Q4-18
|
|
Change Q1-19/Q1-18
|
||||||||
($ In Billions)
|
|||||||||||||||||
Corporate & Institutional
|
$
|
7,529.1
|
|
|
$
|
6,971.0
|
|
|
$
|
7,466.5
|
|
|
8
|
%
|
|
1
|
%
|
Wealth Management
|
670.6
|
|
|
622.9
|
|
|
645.2
|
|
|
8
|
|
|
4
|
|
|||
Total Assets Under Custody
|
$
|
8,199.7
|
|
|
$
|
7,593.9
|
|
|
$
|
8,111.7
|
|
|
8
|
%
|
|
1
|
%
|
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2018
|
|||||||||||||||||||||
Assets Under Custody
|
C&IS
|
|
WM
|
|
Total
|
|
C&IS
|
|
WM
|
|
Total
|
|
C&IS
|
|
WM
|
|
Total
|
|||||||||
Equities
|
45
|
%
|
|
57
|
%
|
|
46
|
%
|
|
44
|
%
|
|
54
|
%
|
|
45
|
%
|
|
45
|
%
|
|
58
|
%
|
|
46
|
%
|
Fixed Income
|
38
|
|
|
19
|
|
|
36
|
|
|
39
|
|
|
20
|
|
|
37
|
|
|
37
|
|
|
18
|
|
|
36
|
|
Cash and Other Assets
|
15
|
|
|
24
|
|
|
16
|
|
|
15
|
|
|
26
|
|
|
16
|
|
|
15
|
|
|
24
|
|
|
16
|
|
Securities Lending Collateral
|
2
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
3
|
|
|
—
|
|
|
2
|
|
Assets Under Management
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2018
|
|
Change Q1-19/Q4-18
|
|
Change Q1-19/Q1-18
|
||||||||
($ In Billions)
|
|||||||||||||||||
Corporate & Institutional
|
$
|
867.9
|
|
|
$
|
790.8
|
|
|
$
|
878.3
|
|
|
10
|
%
|
|
(1
|
)%
|
Wealth Management
|
294.2
|
|
|
278.6
|
|
|
287.4
|
|
|
6
|
|
|
2
|
|
|||
Total Assets Under Management
|
$
|
1,162.1
|
|
|
$
|
1,069.4
|
|
|
$
|
1,165.7
|
|
|
9
|
%
|
|
—
|
%
|
($ In Billions)
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2018
|
||||||
Equities
|
$
|
591.8
|
|
|
$
|
534.2
|
|
|
$
|
583.7
|
|
Fixed Income
|
185.1
|
|
|
178.3
|
|
|
177.7
|
|
|||
Cash and Other Assets
|
220.1
|
|
|
207.0
|
|
|
216.8
|
|
|||
Securities Lending Collateral
|
165.1
|
|
|
149.9
|
|
|
187.5
|
|
|||
Total Assets Under Management
|
$
|
1,162.1
|
|
|
$
|
1,069.4
|
|
|
$
|
1,165.7
|
|
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2018
|
|||||||||||||||||||||
Assets Under Management
|
C&IS
|
|
WM
|
|
Total
|
|
C&IS
|
|
WM
|
|
Total
|
|
C&IS
|
|
WM
|
|
Total
|
|||||||||
Equities
|
51
|
%
|
|
50
|
%
|
|
51
|
%
|
|
51
|
%
|
|
47
|
%
|
|
50
|
%
|
|
50
|
%
|
|
52
|
%
|
|
50
|
%
|
Fixed Income
|
13
|
|
|
25
|
|
|
16
|
|
|
13
|
|
|
26
|
|
|
17
|
|
|
12
|
|
|
25
|
|
|
15
|
|
Cash and Other Assets
|
17
|
|
|
25
|
|
|
19
|
|
|
17
|
|
|
27
|
|
|
19
|
|
|
17
|
|
|
23
|
|
|
19
|
|
Securities Lending Collateral
|
19
|
|
|
—
|
|
|
14
|
|
|
19
|
|
|
—
|
|
|
14
|
|
|
21
|
|
|
—
|
|
|
16
|
|
|
|
Three Months Ended
|
||||||||||||||
($ In Billions)
|
March 31, 2019
|
December 31, 2018
|
September 30, 2018
|
June 30, 2018
|
March 31, 2018
|
|||||||||||
Beginning Balance of AUM
|
$
|
1,069.4
|
|
$
|
1,171.5
|
|
$
|
1,148.9
|
|
$
|
1,165.7
|
|
$
|
1,161.0
|
|
|
Inflows by Investment Type
|
|
|
|
|
|
|||||||||||
|
Equity
|
49.8
|
|
43.5
|
|
42.3
|
|
44.7
|
|
44.2
|
|
|||||
|
Fixed Income
|
14.5
|
|
13.7
|
|
15.1
|
|
17.5
|
|
17.4
|
|
|||||
|
Cash & Other Assets
|
133.2
|
|
136.4
|
|
109.3
|
|
124.2
|
|
114.4
|
|
|||||
|
Securities Lending Collateral
|
74.3
|
|
51.8
|
|
23.3
|
|
22.4
|
|
68.1
|
|
|||||
|
|
|
|
|
|
|
||||||||||
Total Inflows
|
271.8
|
|
245.4
|
|
190.0
|
|
208.8
|
|
244.1
|
|
||||||
|
|
|
|
|
|
|
||||||||||
Outflows by Investment Type
|
|
|
|
|
|
|||||||||||
|
Equity
|
(48.8
|
)
|
(45.1
|
)
|
(43.9
|
)
|
(42.4
|
)
|
(47.8
|
)
|
|||||
|
Fixed Income
|
(14.5
|
)
|
(15.3
|
)
|
(12.8
|
)
|
(20.4
|
)
|
(24.0
|
)
|
|||||
|
Cash & Other Assets
|
(127.1
|
)
|
(135.6
|
)
|
(103.8
|
)
|
(130.6
|
)
|
(117.4
|
)
|
|||||
|
Securities Lending Collateral
|
(59.1
|
)
|
(68.4
|
)
|
(30.5
|
)
|
(36.1
|
)
|
(48.3
|
)
|
|||||
|
|
|
|
|
|
|
||||||||||
Total Outflows
|
(249.5
|
)
|
(264.4
|
)
|
(191.0
|
)
|
(229.5
|
)
|
(237.5
|
)
|
||||||
|
|
|
|
|
|
|
||||||||||
Net Inflows / (Outflows)
|
22.3
|
|
(19.0
|
)
|
(1.0
|
)
|
(20.7
|
)
|
6.6
|
|
||||||
|
|
|
|
|
|
|
||||||||||
Market Performance, Currency & Other
|
|
|
|
|
|
|||||||||||
|
Market Performance & Other
|
70.9
|
|
(80.8
|
)
|
24.6
|
|
11.5
|
|
(4.6
|
)
|
|||||
|
Currency
|
(0.5
|
)
|
(2.3
|
)
|
(1.0
|
)
|
(7.6
|
)
|
2.7
|
|
|||||
Total Market Performance, Currency & Other
|
70.4
|
|
(83.1
|
)
|
23.6
|
|
3.9
|
|
(1.9
|
)
|
||||||
|
|
|
|
|
|
|
||||||||||
Ending Balance of AUM
|
$
|
1,162.1
|
|
$
|
1,069.4
|
|
$
|
1,171.5
|
|
$
|
1,148.9
|
|
$
|
1,165.7
|
|
Other Operating Income
|
Three Months Ended March 31,
|
|
|
|
|
|||||||||
($ In Millions)
|
2019
|
|
2018
|
|
Change
|
|||||||||
Loan Service Fees
|
$
|
12.1
|
|
|
$
|
12.5
|
|
|
$
|
(0.4
|
)
|
|
(3
|
)%
|
Banking Service Fees
|
11.2
|
|
|
12.5
|
|
|
(1.3
|
)
|
|
(11
|
)%
|
|||
Other Income
|
5.7
|
|
|
9.8
|
|
|
(4.1
|
)
|
|
(40
|
)
|
|||
Total Other Operating Income
|
$
|
29.0
|
|
|
$
|
34.8
|
|
|
$
|
(5.8
|
)
|
|
(16
|
)%
|
|
NORTHERN TRUST CORPORATION
|
||||||||||||||||||||
(Interest and Rate on a Fully Taxable Equivalent Basis)
|
FIRST QUARTER
|
||||||||||||||||||||
2019
|
|
2018
|
|||||||||||||||||||
($ In Millions)
|
Interest
|
|
Average
Balance
|
|
Rate
(6)
|
|
Interest
|
|
Average
Balance
|
|
Rate
(6)
|
||||||||||
Average Earning Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal Reserve and Other Central Bank Deposits and Other
(1)
|
$
|
61.3
|
|
|
$
|
20,163.2
|
|
|
1.23
|
%
|
|
$
|
47.4
|
|
|
$
|
26,495.1
|
|
|
0.72
|
%
|
Interest-Bearing Due from and Deposits with Banks
(2)
|
17.9
|
|
|
6,452.2
|
|
|
1.13
|
|
|
19.9
|
|
|
6,920.4
|
|
|
1.17
|
|
||||
Federal Funds Sold and Securities Purchased under Agreements to Resell
|
6.8
|
|
|
978.1
|
|
|
2.84
|
|
|
6.8
|
|
|
1,467.1
|
|
|
1.89
|
|
||||
Securities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government
|
28.7
|
|
|
5,238.9
|
|
|
2.22
|
|
|
23.8
|
|
|
5,735.4
|
|
|
1.68
|
|
||||
Obligations of States and Political Subdivisions
|
5.0
|
|
|
770.5
|
|
|
2.57
|
|
|
2.4
|
|
|
678.2
|
|
|
1.42
|
|
||||
Government Sponsored Agency
|
148.5
|
|
|
22,439.0
|
|
|
2.69
|
|
|
81.4
|
|
|
18,848.3
|
|
|
1.75
|
|
||||
Other
(3)
|
102.2
|
|
|
23,440.9
|
|
|
1.77
|
|
|
79.2
|
|
|
23,073.8
|
|
|
1.39
|
|
||||
Total Securities
|
284.4
|
|
|
51,889.3
|
|
|
2.22
|
|
|
186.8
|
|
|
48,335.7
|
|
|
1.57
|
|
||||
Loans and Leases
(4)
|
300.2
|
|
|
31,189.4
|
|
|
3.90
|
|
|
253.7
|
|
|
32,468.0
|
|
|
3.17
|
|
||||
Total Earning Assets
|
670.6
|
|
|
110,672.2
|
|
|
2.46
|
|
|
514.6
|
|
|
115,686.3
|
|
|
1.80
|
|
||||
Allowance for Credit Losses Assigned to Loans and Leases
|
—
|
|
|
(114.0
|
)
|
|
—
|
|
|
—
|
|
|
(131.0
|
)
|
|
—
|
|
||||
Cash and Due from Banks and Other Central Bank Deposits
(5)
|
—
|
|
|
1,940.7
|
|
|
—
|
|
|
—
|
|
|
2,593.2
|
|
|
—
|
|
||||
Buildings and Equipment
|
—
|
|
|
424.4
|
|
|
—
|
|
|
—
|
|
|
457.0
|
|
|
—
|
|
||||
Client Security Settlement Receivables
|
—
|
|
|
981.5
|
|
|
—
|
|
|
—
|
|
|
1,012.0
|
|
|
—
|
|
||||
Goodwill
|
—
|
|
|
675.5
|
|
|
—
|
|
|
—
|
|
|
611.0
|
|
|
—
|
|
||||
Other Assets
|
—
|
|
|
4,836.4
|
|
|
—
|
|
|
—
|
|
|
4,264.8
|
|
|
—
|
|
||||
Total Assets
|
$
|
—
|
|
|
$
|
119,416.7
|
|
|
—
|
%
|
|
$
|
—
|
|
|
$
|
124,493.3
|
|
|
—
|
%
|
Average Source of Funds
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Savings, Money Market and Other
|
$
|
35.0
|
|
|
$
|
14,372.8
|
|
|
0.99
|
%
|
|
$
|
12.9
|
|
|
$
|
15,916.4
|
|
|
0.33
|
%
|
Savings Certificates and Other Time
|
2.8
|
|
|
761.4
|
|
|
1.48
|
|
|
2.1
|
|
|
1,058.5
|
|
|
0.82
|
|
||||
Non-U.S. Offices — Interest-Bearing
|
109.8
|
|
|
58,377.2
|
|
|
0.76
|
|
|
48.1
|
|
|
59,199.7
|
|
|
0.33
|
|
||||
Total Interest-Bearing Deposits
|
147.6
|
|
|
73,511.4
|
|
|
0.81
|
|
|
63.1
|
|
|
76,174.6
|
|
|
0.34
|
|
||||
Short-Term Borrowings
|
65.1
|
|
|
10,494.0
|
|
|
2.52
|
|
|
34.5
|
|
|
9,405.3
|
|
|
1.49
|
|
||||
Senior Notes
|
15.9
|
|
|
2,014.1
|
|
|
3.19
|
|
|
11.8
|
|
|
1,497.4
|
|
|
3.18
|
|
||||
Long-Term Debt
|
10.0
|
|
|
1,112.9
|
|
|
3.64
|
|
|
11.0
|
|
|
1,426.5
|
|
|
3.14
|
|
||||
Floating Rate Capital Debt
|
2.2
|
|
|
277.6
|
|
|
3.27
|
|
|
1.5
|
|
|
277.5
|
|
|
2.21
|
|
||||
Total Interest-Related Funds
|
240.8
|
|
|
87,410.0
|
|
|
1.12
|
|
|
121.9
|
|
|
88,781.3
|
|
|
0.56
|
|
||||
Interest Rate Spread
|
—
|
|
|
—
|
|
|
1.34
|
|
|
—
|
|
|
—
|
|
|
1.24
|
|
||||
Demand and Other Noninterest-Bearing Deposits
|
—
|
|
|
17,858.4
|
|
|
—
|
|
|
—
|
|
|
22,022.9
|
|
|
—
|
|
||||
Other Liabilities
|
—
|
|
|
3,719.5
|
|
|
—
|
|
|
—
|
|
|
3,551.4
|
|
|
—
|
|
||||
Stockholders’ Equity
|
—
|
|
|
10,428.8
|
|
|
—
|
|
|
—
|
|
|
10,137.7
|
|
|
—
|
|
||||
Total Liabilities and Stockholders’ Equity
|
$
|
—
|
|
|
$
|
119,416.7
|
|
|
—
|
%
|
|
$
|
—
|
|
|
$
|
124,493.3
|
|
|
—
|
%
|
Net Interest Income/Margin (FTE Adjusted)
|
$
|
429.8
|
|
|
$
|
—
|
|
|
1.58
|
%
|
|
$
|
392.7
|
|
|
$
|
—
|
|
|
1.38
|
%
|
Net Interest Income/Margin (Unadjusted)
|
$
|
422.0
|
|
|
$
|
—
|
|
|
1.55
|
%
|
|
$
|
384.0
|
|
|
$
|
—
|
|
|
1.35
|
%
|
|
Three Months Ended March 31, 2019/2018
|
||||||||||
|
Change Due To
|
||||||||||
(In Millions)
|
Average
Balance
|
|
Rate
|
|
Total
|
||||||
Earning Assets (FTE)
|
$
|
(9.8
|
)
|
|
$
|
165.8
|
|
|
$
|
156.0
|
|
Interest-Related Funds
|
43.2
|
|
|
75.7
|
|
|
118.9
|
|
|||
Net Interest Income (FTE)
|
$
|
(53.0
|
)
|
|
$
|
90.1
|
|
|
$
|
37.1
|
|
(1)
|
Federal Reserve and Other Central Bank Deposits and Other includes collateral deposits with certain securities depositories and clearing houses, which are classified in other assets in the consolidated balance sheets as of
March 31, 2019
.
|
(2)
|
Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets.
|
(3)
|
Other securities include certain community development investments and Federal Home Loan Bank and Federal Reserve stock, which are classified in other assets in the consolidated balance sheets as of
March 31, 2019
and
2018
.
|
(4)
|
Average balances include nonaccrual loans. Lease financing receivable balances are reduced by deferred income.
|
(5)
|
Cash and Due from Banks and Other Central Bank Deposits includes the noninterest-bearing component of Federal Reserve and Other Central Bank Deposits as presented on the consolidated balance sheets.
|
(6)
|
Rate calculations are based on actual balances rather than the rounded amounts presented in the Average Consolidated Balance Sheets with Analysis of Net Interest Income.
|
Notes:
|
Net Interest Income (FTE Adjusted), a non-generally accepted accounting principle (GAAP) financial measure, includes adjustments to a fully taxable equivalent basis for loans and securities. Such adjustments are based on a blended federal and state tax rate of
24.9%
and
24.8%
for the three months ended
March 31, 2019
and
2018
, respectively. Total taxable equivalent interest adjustments amounted to
$7.8 million
and
$8.7 million
for the three months ended
March 31, 2019
and
2018
, respectively. A reconciliation of net interest income and net interest margin on a GAAP basis to net interest income and net interest margin on an FTE basis (each of which is a non-GAAP financial measure) is provided on page
21
.
|
Noninterest Expense
|
Three Months Ended March 31,
|
|
|
|
|
|||||||||
($ In Millions)
|
2019
|
|
2018
|
|
Change
|
|||||||||
Compensation
|
$
|
482.0
|
|
|
$
|
471.7
|
|
|
$
|
10.3
|
|
|
2
|
%
|
Employee Benefits
|
85.7
|
|
|
91.7
|
|
|
(6.0
|
)
|
|
(7
|
)
|
|||
Outside Services
|
188.4
|
|
|
171.4
|
|
|
17.0
|
|
|
10
|
|
|||
Equipment and Software
|
148.3
|
|
|
140.0
|
|
|
8.3
|
|
|
6
|
|
|||
Occupancy
|
51.6
|
|
|
51.5
|
|
|
0.1
|
|
|
—
|
|
|||
Other Operating Expense
|
72.7
|
|
|
69.0
|
|
|
3.7
|
|
|
6
|
|
|||
Total Noninterest Expense
|
$
|
1,028.7
|
|
|
$
|
995.3
|
|
|
$
|
33.4
|
|
|
3
|
%
|
Other Operating Expense
|
Three Months Ended March 31,
|
|
|
|
|
|||||||||
($ In Millions)
|
2019
|
|
2018
|
|
Change
|
|||||||||
Business Promotion
|
$
|
17.7
|
|
|
$
|
16.1
|
|
|
$
|
1.6
|
|
|
10
|
%
|
Staff Related
|
8.6
|
|
|
5.4
|
|
|
3.2
|
|
|
60
|
|
|||
FDIC Insurance Premiums
|
2.9
|
|
|
8.9
|
|
|
(6.0
|
)
|
|
(67
|
)
|
|||
Other Intangibles Amortization
|
4.2
|
|
|
4.5
|
|
|
(0.3
|
)
|
|
(8
|
)
|
|||
Other Expenses
|
39.3
|
|
|
34.1
|
|
|
5.2
|
|
|
16
|
|
|||
Total Other Operating Expense
|
$
|
72.7
|
|
|
$
|
69.0
|
|
|
$
|
3.7
|
|
|
6
|
%
|
Three Months Ended March 31,
|
Corporate &
Institutional Services
|
|
Wealth
Management
|
|
Treasury and
Other
|
|
Total
Consolidated
|
||||||||||||||||||||||||
($ In Millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
Noninterest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Trust, Investment and Other Servicing Fees
|
$
|
535.2
|
|
|
$
|
544.3
|
|
|
$
|
393.7
|
|
|
$
|
393.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
928.9
|
|
|
$
|
937.7
|
|
Foreign Exchange Trading Income
|
59.7
|
|
|
62.4
|
|
|
6.5
|
|
|
1.2
|
|
|
—
|
|
|
14.9
|
|
|
66.2
|
|
|
78.5
|
|
||||||||
Other Noninterest Income
|
43.4
|
|
|
46.6
|
|
|
25.5
|
|
|
25.7
|
|
|
(5.1
|
)
|
|
3.5
|
|
|
63.8
|
|
|
75.8
|
|
||||||||
Net Interest Income*
|
234.8
|
|
|
229.4
|
|
|
195.0
|
|
|
198.8
|
|
|
—
|
|
|
(35.5
|
)
|
|
429.8
|
|
|
392.7
|
|
||||||||
Revenue*
|
873.1
|
|
|
882.7
|
|
|
620.7
|
|
|
619.1
|
|
|
(5.1
|
)
|
|
(17.1
|
)
|
|
1,488.7
|
|
|
1,484.7
|
|
||||||||
Provision for Credit Losses
|
(1.1
|
)
|
|
(3.9
|
)
|
|
1.1
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.0
|
)
|
||||||||
Noninterest Expense
|
648.0
|
|
|
585.6
|
|
|
379.9
|
|
|
365.7
|
|
|
0.8
|
|
|
44.0
|
|
|
1,028.7
|
|
|
995.3
|
|
||||||||
Income before Income Taxes*
|
226.2
|
|
|
301.0
|
|
|
239.7
|
|
|
252.5
|
|
|
(5.9
|
)
|
|
(61.1
|
)
|
|
460.0
|
|
|
492.4
|
|
||||||||
Provision for Income Taxes*
|
53.6
|
|
|
66.8
|
|
|
60.8
|
|
|
62.4
|
|
|
(1.5
|
)
|
|
(18.4
|
)
|
|
112.9
|
|
|
110.8
|
|
||||||||
Net Income
|
$
|
172.6
|
|
|
$
|
234.2
|
|
|
$
|
178.9
|
|
|
$
|
190.1
|
|
|
$
|
(4.4
|
)
|
|
$
|
(42.7
|
)
|
|
$
|
347.1
|
|
|
$
|
381.6
|
|
Percentage of Consolidated Net Income
|
50
|
%
|
|
61
|
%
|
|
51
|
%
|
|
50
|
%
|
|
(1
|
)%
|
|
(11
|
)%
|
|
100
|
%
|
|
100
|
%
|
||||||||
Average Assets
|
$
|
90,351.7
|
|
|
$
|
83,637.0
|
|
|
$
|
29,065.0
|
|
|
$
|
26,108.0
|
|
|
$
|
—
|
|
|
$
|
14,748.3
|
|
|
$
|
119,416.7
|
|
|
$
|
124,493.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|||||||||
($ In Millions)
|
2019
|
|
2018
|
|
Change
|
|||||||||
Custody and Fund Administration
|
$
|
375.1
|
|
|
$
|
373.9
|
|
|
$
|
1.2
|
|
|
—
|
%
|
Investment Management
|
104.3
|
|
|
109.7
|
|
|
(5.4
|
)
|
|
(5
|
)
|
|||
Securities Lending
|
22.7
|
|
|
26.0
|
|
|
(3.3
|
)
|
|
(13
|
)
|
|||
Other
|
33.1
|
|
|
34.7
|
|
|
(1.6
|
)
|
|
(5
|
)
|
|||
Total C&IS Trust, Investment and Other Servicing Fees
|
$
|
535.2
|
|
|
$
|
544.3
|
|
|
$
|
(9.1
|
)
|
|
(2
|
)%
|
|
Three Months Ended March 31,
|
|
|
|
|
|||||||||
($ In Millions)
|
2019
|
|
2018
|
|
Change
|
|||||||||
Central
|
$
|
150.7
|
|
|
$
|
153.9
|
|
|
$
|
(3.2
|
)
|
|
(2
|
)%
|
East
|
100.9
|
|
|
98.9
|
|
|
2.0
|
|
|
2
|
|
|||
West
|
79.5
|
|
|
78.6
|
|
|
0.9
|
|
|
1
|
|
|||
Global Family Office
|
62.6
|
|
|
62.0
|
|
|
0.6
|
|
|
1
|
|
|||
Total Wealth Management Trust, Investment and Other Servicing Fees
|
$
|
393.7
|
|
|
$
|
393.4
|
|
|
$
|
0.3
|
|
|
—
|
%
|
Capital Ratios — Northern Trust Corporation
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2018
|
||||||||||||
Advanced
Approach
|
|
Standardized
Approach
|
|
Advanced
Approach
|
|
Standardized
Approach
|
|
Advanced
Approach
|
|
Standardized
Approach
|
|||||||
Common Equity Tier 1
|
13.5
|
%
|
|
13.0
|
%
|
|
13.7
|
%
|
|
12.9
|
%
|
|
13.0
|
%
|
|
12.3
|
%
|
Tier 1
|
14.8
|
%
|
|
14.3
|
%
|
|
15.0
|
%
|
|
14.1
|
%
|
|
14.3
|
%
|
|
13.6
|
%
|
Total
|
16.6
|
%
|
|
16.3
|
%
|
|
16.9
|
%
|
|
16.1
|
%
|
|
16.2
|
%
|
|
15.5
|
%
|
Tier 1 Leverage
|
8.2
|
%
|
|
8.2
|
%
|
|
8.0
|
%
|
|
8.0
|
%
|
|
7.6
|
%
|
|
7.6
|
%
|
Supplementary Leverage
|
7.2
|
%
|
|
N/A
|
|
|
7.0
|
%
|
|
N/A
|
|
|
6.6
|
%
|
|
N/A
|
|
Capital Ratios — The Northern Trust Company
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2018
|
||||||||||||
Advanced
Approach
|
|
Standardized
Approach
|
|
Advanced
Approach
|
|
Standardized
Approach
|
|
Advanced
Approach
|
|
Standardized
Approach
|
|||||||
Common Equity Tier 1
|
13.9
|
%
|
|
13.2
|
%
|
|
14.1
|
%
|
|
13.1
|
%
|
|
13.6
|
%
|
|
12.6
|
%
|
Tier 1
|
13.9
|
%
|
|
13.2
|
%
|
|
14.1
|
%
|
|
13.1
|
%
|
|
13.6
|
%
|
|
12.6
|
%
|
Total
|
15.5
|
%
|
|
14.9
|
%
|
|
15.8
|
%
|
|
14.8
|
%
|
|
15.2
|
%
|
|
14.3
|
%
|
Tier 1 Leverage
|
7.4
|
%
|
|
7.4
|
%
|
|
7.3
|
%
|
|
7.3
|
%
|
|
7.0
|
%
|
|
7.0
|
%
|
Supplementary Leverage
|
6.6
|
%
|
|
N/A
|
|
|
6.4
|
%
|
|
N/A
|
|
|
6.1
|
%
|
|
N/A
|
|
($ In Millions)
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2018
|
||||||
Nonperforming Loans and Leases
|
|
|
|
|
|
||||||
Commercial
|
|
|
|
|
|
||||||
Commercial and Institutional
|
$
|
7.6
|
|
|
$
|
6.8
|
|
|
$
|
4.4
|
|
Commercial Real Estate
|
4.2
|
|
|
6.9
|
|
|
6.2
|
|
|||
Non-U.S.
|
0.6
|
|
|
0.4
|
|
|
—
|
|
|||
Total Commercial
|
12.4
|
|
|
14.1
|
|
|
10.6
|
|
|||
Personal
|
|
|
|
|
|
||||||
Residential Real Estate
|
$
|
103.5
|
|
|
$
|
95.0
|
|
|
$
|
114.1
|
|
Private Client
|
0.2
|
|
|
0.2
|
|
|
—
|
|
|||
Total Personal
|
103.7
|
|
|
95.2
|
|
|
114.1
|
|
|||
Total Nonperforming Loans and Leases
|
116.1
|
|
|
109.3
|
|
|
124.7
|
|
|||
Other Real Estate Owned
|
8.0
|
|
|
8.4
|
|
|
4.2
|
|
|||
Total Nonperforming Assets
|
$
|
124.1
|
|
|
$
|
117.7
|
|
|
$
|
128.9
|
|
90 Day Past Due Loans Still Accruing
|
$
|
13.0
|
|
|
$
|
16.4
|
|
|
$
|
6.2
|
|
Nonperforming Loans and Leases to Total Loans and Leases
|
0.38
|
%
|
|
0.34
|
%
|
|
0.39
|
%
|
|||
Coverage of Loan and Lease Allowance to
Nonperforming Loans and Leases
|
1.0
|
x
|
|
1.0
|
x
|
|
1.0
|
x
|
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2018
|
|||||||||||||||
($ In Millions)
|
Allowance
Amount
|
|
Percent of
Loans to
Total
Loans
|
|
Allowance
Amount
|
|
Percent of
Loans to
Total
Loans
|
|
Allowance
Amount
|
|
Percent of
Loans to
Total
Loans
|
|||||||||
Specific Allowance
|
$
|
11.3
|
|
|
—
|
%
|
|
$
|
10.0
|
|
|
—
|
%
|
|
$
|
5.0
|
|
|
—
|
%
|
Allocated Inherent Allowance
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial and Institutional
|
35.2
|
|
|
28
|
|
|
33.5
|
|
|
27
|
|
|
33.7
|
|
|
28
|
|
|||
Commercial Real Estate
|
34.8
|
|
|
10
|
|
|
35.5
|
|
|
10
|
|
|
40.9
|
|
|
11
|
|
|||
Lease Financing, net
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
1
|
|
|||
Non-U.S.
|
—
|
|
|
5
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
5
|
|
|||
Other
|
0.1
|
|
|
1
|
|
|
2.7
|
|
|
2
|
|
|
1.5
|
|
|
1
|
|
|||
Total Commercial
|
70.2
|
|
|
44
|
|
|
71.8
|
|
|
47
|
|
|
76.2
|
|
|
46
|
|
|||
Personal
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Residential Real Estate
|
45.3
|
|
|
21
|
|
|
45.8
|
|
|
20
|
|
|
55.5
|
|
|
22
|
|
|||
Private Client
|
11.2
|
|
|
35
|
|
|
9.2
|
|
|
33
|
|
|
9.5
|
|
|
32
|
|
|||
Other
|
1.4
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
|
1.6
|
|
|
—
|
|
|||
Total Personal
|
57.9
|
|
|
56
|
|
|
56.4
|
|
|
53
|
|
|
66.6
|
|
|
54
|
|
|||
Total Allocated Inherent Allowance
|
$
|
128.1
|
|
|
100
|
%
|
|
$
|
128.2
|
|
|
100
|
%
|
|
$
|
142.8
|
|
|
100
|
%
|
Total Allowance for Credit Losses
|
$
|
139.4
|
|
|
|
|
$
|
138.2
|
|
|
|
|
$
|
147.8
|
|
|
|
|||
Allowance Assigned to
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Loans and Leases
|
$
|
114.5
|
|
|
|
|
$
|
112.6
|
|
|
|
|
$
|
125.4
|
|
|
|
|||
Undrawn Commitments and Standby Letters of Credit
|
24.9
|
|
|
|
|
25.6
|
|
|
|
|
22.4
|
|
|
|
||||||
Total Allowance for Credit Losses
|
$
|
139.4
|
|
|
|
|
$
|
138.2
|
|
|
|
|
$
|
147.8
|
|
|
|
|||
Allowance Assigned to Loans and Leases to Total Loans and Leases
|
0.37
|
%
|
|
|
|
0.35
|
%
|
|
|
|
0.39
|
%
|
|
|
▪
|
the balance sheet size and mix remains constant over the simulation horizon with maturing assets and liabilities replaced with instruments with similar terms as those that are maturing, with the exception of certain nonmaturity deposits that are considered short-term in nature and therefore receive a more conservative interest-bearing treatment;
|
▪
|
prepayments on mortgage loans and securities collateralized by mortgages are projected under each rate scenario using a third-party mortgage analytics system that incorporates market prepayment assumptions;
|
▪
|
cash flows for structured securities are estimated using a third-party vendor in conjunction with the prepayments provided by the third-party mortgage analytics vendor;
|
▪
|
nonmaturity deposit pricing is projected based on Northern Trust’s actual historical patterns and management judgment, depending upon the availability of historical data and current pricing strategies/or judgment; and
|
▪
|
new business rates are based on current spreads to market indices.
|
($ In Millions)
|
Increase/(Decrease)
Estimated Impact on
Next Twelve Months of
Net Interest Income
|
||
Increase in Interest Rates Above Market Implied Forward Rates
|
|
||
100 Basis Points
|
$
|
73
|
|
200 Basis Points
|
116
|
|
|
Decrease in Interest Rates Below Market Implied Forward Rates
|
|
||
100 Basis Points
|
(40
|
)
|
▪
|
the present value of nonmaturity deposits are estimated using dynamic decay methodologies or estimated remaining lives, which are based on a combination of Northern Trust’s actual historical runoff patterns and management judgment — some balances are assumed to be core and have longer lives while other balances are assumed to be temporary and have comparatively shorter lives; and
|
▪
|
the present values of most noninterest-related balances (such as receivables, equipment, and payables) are the same as their book values.
|
($ In Millions)
|
Increase/(Decrease)
Estimated Impact on
Market Value of Equity
|
||
Increase in Interest Rates Above Market Implied Forward Rates
|
|
||
100 Basis Points
|
$
|
383
|
|
200 Basis Points
|
321
|
|
|
Decrease in Interest Rates Below Market Implied Forward Rates
|
|
||
100 Basis Points
|
(373
|
)
|
($ In Millions)
|
Total VaR
(Spot and Forward) |
|
Foreign Exchange
Spot VaR |
|
Foreign Exchange
Forward VaR |
||||||||||||||||||
Three Months Ended
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||
High
|
$
|
0.2
|
|
|
$
|
0.2
|
|
|
$
|
0.2
|
|
|
$
|
0.2
|
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
Low
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Average
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
||||||
Quarter-End
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
Three Months Ended
|
||||||||||||||||||||||
|
March 31, 2019
|
|
March 31, 2018
|
||||||||||||||||||||
($ In Millions)
|
Reported
|
|
FTE Adj.
|
|
FTE
|
|
Reported
|
|
FTE Adj.
|
|
FTE
|
||||||||||||
Interest Income
|
$
|
662.8
|
|
|
$
|
7.8
|
|
|
$
|
670.6
|
|
|
$
|
505.9
|
|
|
$
|
8.7
|
|
|
$
|
514.6
|
|
Interest Expense
|
240.8
|
|
|
—
|
|
|
240.8
|
|
|
121.9
|
|
|
—
|
|
|
121.9
|
|
||||||
Net Interest Income
|
$
|
422.0
|
|
|
$
|
7.8
|
|
|
$
|
429.8
|
|
|
$
|
384.0
|
|
|
$
|
8.7
|
|
|
$
|
392.7
|
|
Net Interest Margin
|
1.55
|
%
|
|
|
|
1.58
|
%
|
|
1.35
|
%
|
|
|
|
1.38
|
%
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenue
|
$
|
1,480.9
|
|
|
$
|
7.8
|
|
|
$
|
1,488.7
|
|
|
$
|
1,476.0
|
|
|
$
|
8.7
|
|
|
$
|
1,484.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
financial market disruptions or economic recession in the United States or other countries across the globe resulting from any of a number of factors, including, for example, actual or potential changes to international trade policy;
|
•
|
volatility or changes in financial markets, including debt and equity markets, that impact the value, liquidity, or credit ratings of financial assets in general, or financial assets held in particular investment funds or client portfolios, including those funds, portfolios, and other financial assets with respect to which Northern Trust has taken, or may in the future take, actions to provide asset value stability or additional liquidity;
|
•
|
the impact of equity markets on fee revenue;
|
•
|
the downgrade of U.S. government-issued and other securities;
|
•
|
changes in foreign exchange trading client volumes and volatility in foreign currency exchange rates, changes in the valuation of the U.S. dollar relative to other currencies in which Northern Trust records revenue or accrues expenses, and Northern Trust’s success in assessing and mitigating the risks arising from all such changes and volatility;
|
•
|
a decline in the value of securities held in Northern Trust’s investment portfolio, particularly asset-backed securities, the liquidity and pricing of which may be negatively impacted by periods of economic turmoil and financial market disruptions;
|
•
|
Northern Trust’s ability to address operating risks, including those related to cyber-security, data security, human errors or omissions, pricing or valuation of securities, fraud, systems performance or defects, systems interruptions, and breakdowns in processes or internal controls;
|
•
|
Northern Trust’s success in responding to and investing in changes and advancements in technology;
|
•
|
a significant downgrade of any of Northern Trust’s debt ratings;
|
•
|
the health and soundness of the financial institutions and other counterparties with which Northern Trust conducts business;
|
•
|
uncertainties inherent in the complex and subjective judgments required to assess credit risk and establish appropriate allowances therefor;
|
•
|
changes in the method pursuant to which the London Interbank Offered Rate (LIBOR) or other interest rate benchmarks are determined;
|
•
|
the pace and extent of continued globalization of investment activity and growth in worldwide financial assets;
|
•
|
changes in interest rates or in the monetary or other policies of various regulatory authorities or central banks;
|
•
|
changes in the legal, regulatory and enforcement framework and oversight applicable to financial institutions, including Northern Trust;
|
•
|
increased costs of compliance and other risks associated with changes in regulation, the current regulatory environment, and areas of increased regulatory emphasis and oversight in the United States and other countries, such as anti-money laundering, anti-bribery, and client privacy;
|
•
|
failure to satisfy regulatory standards or to obtain regulatory approvals when required, including for the use and distribution of capital;
|
•
|
changes in tax laws, accounting requirements or interpretations and other legislation in the United States or other countries that could affect Northern Trust or its clients including with respect to the adoption of the Tax Cuts and Jobs Act;
|
•
|
geopolitical risks and the risks of extraordinary events such as natural disasters, terrorist events and war, and the responses of the United States and other countries to those events;
|
•
|
the pending departure of the United Kingdom from the European Union, commonly referred to as “Brexit,” and any negative effects thereof on global economic conditions, global financial markets, and our business and results of operations;
|
•
|
changes in the nature and activities of Northern Trust’s competition;
|
•
|
Northern Trust’s success in maintaining existing business and continuing to generate new business in existing and targeted markets and its ability to deploy deposits in a profitable manner consistent with its liquidity requirements;
|
•
|
Northern Trust’s ability to address the complex needs of a global client base and manage compliance with legal, tax, regulatory and other requirements;
|
•
|
Northern Trust’s ability to maintain a product mix that achieves acceptable margins;
|
•
|
Northern Trust’s ability to continue to generate investment results that satisfy clients and to develop an array of investment products;
|
•
|
Northern Trust’s success in recruiting and retaining the necessary personnel to support business growth and expansion and maintain sufficient expertise to support increasingly complex products and services;
|
•
|
Northern Trust’s success in implementing its expense management initiatives, including its “Value for Spend” initiative;
|
•
|
uncertainties inherent in Northern Trust’s assumptions concerning its pension plan, including discount rates and expected contributions, returns and payouts;
|
•
|
Northern Trust’s success in continuing to enhance its risk management practices and controls and managing risks inherent in its businesses, including credit risk, operational risk, market and liquidity risk, fiduciary risk, compliance risk and strategic risk;
|
•
|
risks and uncertainties inherent in the litigation and regulatory process, including the possibility that losses may be in excess of Northern Trust’s recorded liability and estimated range of possible loss for litigation exposures;
|
•
|
risks associated with being a holding company, including Northern Trust’s dependence on dividends from its principal subsidiary;
|
•
|
the risk of damage to Northern Trust’s reputation which may undermine the confidence of clients, counterparties, rating agencies, and stockholders; and
|
•
|
other factors identified elsewhere in the Corporation’s Annual Report on Form 10-K for the year ended
December 31, 2018
, including those factors described in Item 1A, “Risk Factors,” and other filings with the SEC, all of which are available on Northern Trust’s website.
|
CONSOLIDATED BALANCE SHEETS
|
NORTHERN TRUST CORPORATION
|
(In Millions Except Share Information)
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
(Unaudited)
|
|
|
||||
Assets
|
|
|
|
||||
Cash and Due from Banks
|
$
|
5,074.1
|
|
|
$
|
4,581.6
|
|
Federal Reserve and Other Central Bank Deposits
|
23,422.2
|
|
|
30,080.2
|
|
||
Interest-Bearing Deposits with Banks
|
3,861.6
|
|
|
4,264.2
|
|
||
Federal Funds Sold and Securities Purchased under Agreements to Resell
|
552.2
|
|
|
1,165.2
|
|
||
Debt Securities
|
|
|
|
||||
Available for Sale
|
37,058.2
|
|
|
36,888.8
|
|
||
Held to Maturity (Fair value of $12,097.7 and $14,267.0)
|
12,143.0
|
|
|
14,354.0
|
|
||
Trading Account
|
0.3
|
|
|
0.3
|
|
||
Total Debt Securities
|
49,201.5
|
|
|
51,243.1
|
|
||
Loans and Leases
|
|
|
|
||||
Commercial
|
13,635.5
|
|
|
15,175.2
|
|
||
Personal
|
16,985.1
|
|
|
17,314.8
|
|
||
Total Loans and Leases (Net of unearned income of $13.3 and $13.2)
|
30,620.6
|
|
|
32,490.0
|
|
||
Allowance for Credit Losses Assigned to Loans and Leases
|
(114.5
|
)
|
|
(112.6
|
)
|
||
Buildings and Equipment
|
411.5
|
|
|
428.2
|
|
||
Client Security Settlement Receivables
|
2,067.3
|
|
|
1,646.1
|
|
||
Goodwill
|
683.0
|
|
|
669.3
|
|
||
Other Assets
|
6,089.9
|
|
|
5,757.2
|
|
||
Total Assets
|
$
|
121,869.4
|
|
|
$
|
132,212.5
|
|
Liabilities
|
|
|
|
||||
Deposits
|
|
|
|
||||
Demand and Other Noninterest-Bearing
|
$
|
14,886.8
|
|
|
$
|
14,508.0
|
|
Savings, Money Market and Other Interest-Bearing
|
14,784.6
|
|
|
14,612.0
|
|
||
Savings Certificates and Other Time
|
856.2
|
|
|
688.7
|
|
||
Non U.S. Offices — Noninterest-Bearing
|
6,977.1
|
|
|
8,220.1
|
|
||
— Interest-Bearing
|
58,339.5
|
|
|
66,468.0
|
|
||
Total Deposits
|
95,844.2
|
|
|
104,496.8
|
|
||
Federal Funds Purchased
|
651.8
|
|
|
2,594.2
|
|
||
Securities Sold Under Agreements to Repurchase
|
39.7
|
|
|
168.3
|
|
||
Other Borrowings
|
7,749.8
|
|
|
7,901.7
|
|
||
Senior Notes
|
2,024.1
|
|
|
2,011.3
|
|
||
Long-Term Debt
|
1,125.8
|
|
|
1,112.4
|
|
||
Floating Rate Capital Debt
|
277.6
|
|
|
277.6
|
|
||
Other Liabilities
|
3,540.2
|
|
|
3,141.9
|
|
||
Total Liabilities
|
111,253.2
|
|
|
121,704.2
|
|
||
Stockholders’ Equity
|
|
|
|
||||
Preferred Stock, No Par Value; Authorized 10,000,000 shares:
|
|
|
|
||||
Series C, outstanding shares of 16,000
|
388.5
|
|
|
388.5
|
|
||
Series D, outstanding shares of 5,000
|
493.5
|
|
|
493.5
|
|
||
Common Stock, $1.66 2/3 Par Value; Authorized 560,000,000 shares;
|
|
|
|
||||
Outstanding shares of 217,676,589 and 219,012,050
|
408.6
|
|
|
408.6
|
|
||
Additional Paid-In Capital
|
1,003.3
|
|
|
1,068.5
|
|
||
Retained Earnings
|
10,972.9
|
|
|
10,776.8
|
|
||
Accumulated Other Comprehensive Loss
|
(345.3
|
)
|
|
(453.7
|
)
|
||
Treasury Stock (27,494,935 and 26,159,474 shares, at cost)
|
(2,305.3
|
)
|
|
(2,173.9
|
)
|
||
Total Stockholders’ Equity
|
10,616.2
|
|
|
10,508.3
|
|
||
Total Liabilities and Stockholders’ Equity
|
$
|
121,869.4
|
|
|
$
|
132,212.5
|
|
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
|
NORTHERN TRUST CORPORATION
|
|
Three Months Ended March 31,
|
||||||
(In Millions Except Share Information)
|
2019
|
|
2018
|
||||
Noninterest Income
|
|
|
|
||||
Trust, Investment and Other Servicing Fees
|
$
|
928.9
|
|
|
$
|
937.7
|
|
Foreign Exchange Trading Income
|
66.2
|
|
|
78.5
|
|
||
Treasury Management Fees
|
11.7
|
|
|
14.0
|
|
||
Security Commissions and Trading Income
|
23.3
|
|
|
27.2
|
|
||
Other Operating Income
|
29.0
|
|
|
34.8
|
|
||
Investment Security Gains (Losses), net (Note)
|
(0.2
|
)
|
|
(0.2
|
)
|
||
Total Noninterest Income
|
1,058.9
|
|
|
1,092.0
|
|
||
Net Interest Income
|
|
|
|
||||
Interest Income
|
662.8
|
|
|
505.9
|
|
||
Interest Expense
|
240.8
|
|
|
121.9
|
|
||
Net Interest Income
|
422.0
|
|
|
384.0
|
|
||
Provision for Credit Losses
|
—
|
|
|
(3.0
|
)
|
||
Net Interest Income after Provision for Credit Losses
|
422.0
|
|
|
387.0
|
|
||
Noninterest Expense
|
|
|
|
||||
Compensation
|
482.0
|
|
|
471.7
|
|
||
Employee Benefits
|
85.7
|
|
|
91.7
|
|
||
Outside Services
|
188.4
|
|
|
171.4
|
|
||
Equipment and Software
|
148.3
|
|
|
140.0
|
|
||
Occupancy
|
51.6
|
|
|
51.5
|
|
||
Other Operating Expense
|
72.7
|
|
|
69.0
|
|
||
Total Noninterest Expense
|
1,028.7
|
|
|
995.3
|
|
||
Income before Income Taxes
|
452.2
|
|
|
483.7
|
|
||
Provision for Income Taxes
|
105.1
|
|
|
102.1
|
|
||
Net Income
|
$
|
347.1
|
|
|
$
|
381.6
|
|
Preferred Stock Dividends
|
17.3
|
|
|
17.3
|
|
||
Net Income Applicable to Common Stock
|
$
|
329.8
|
|
|
$
|
364.3
|
|
Per Common Share
|
|
|
|
||||
Net Income – Basic
|
$
|
1.49
|
|
|
$
|
1.59
|
|
– Diluted
|
1.48
|
|
|
1.58
|
|
||
Average Number of Common Shares Outstanding
|
|
|
|
||||
– Basic
|
218,236,802
|
|
|
225,681,167
|
|
||
– Diluted
|
219,270,215
|
|
|
227,047,519
|
|
||
|
|
|
|
||||
Note: Changes in Other-Than-Temporary-Impairment (OTTI) Losses
|
$
|
—
|
|
|
$
|
(0.2
|
)
|
Other Security Gains (Losses), net
|
(0.2
|
)
|
|
—
|
|
||
Investment Security Gains (Losses), net
|
$
|
(0.2
|
)
|
|
$
|
(0.2
|
)
|
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (UNAUDITED) |
NORTHERN TRUST CORPORATION
|
|
|||||
|
Three Months Ended March 31,
|
||||||
(In Millions)
|
2019
|
|
2018
|
||||
Net Income
|
$
|
347.1
|
|
|
$
|
381.6
|
|
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications)
|
|
|
|
||||
Net Unrealized (Losses) Gains on Debt Securities Available for Sale
|
85.6
|
|
|
(55.0
|
)
|
||
Net Unrealized (Losses) Gains on Cash Flow Hedges
|
(4.3
|
)
|
|
(3.7
|
)
|
||
Foreign Currency Translation Adjustments
|
14.8
|
|
|
(13.1
|
)
|
||
Pension and Other Postretirement Benefit Adjustments
|
12.3
|
|
|
5.7
|
|
||
Other Comprehensive Income
|
108.4
|
|
|
(66.1
|
)
|
||
Comprehensive Income
|
$
|
455.5
|
|
|
$
|
315.5
|
|
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(UNAUDITED)
|
NORTHERN TRUST CORPORATION
|
|
Three Months Ended March 31,
|
||||||
(In Millions)
|
2019
|
|
2018
|
||||
Preferred Stock
|
|
|
|
||||
Balance at January 1 and March 31
|
$
|
882.0
|
|
|
$
|
882.0
|
|
Common Stock
|
|
|
|
||||
Balance at January 1 and March 31
|
408.6
|
|
|
408.6
|
|
||
Additional Paid-in Capital
|
|
|
|
||||
Balance at January 1
|
1,068.4
|
|
|
1,047.3
|
|
||
Treasury Stock Transactions — Stock Options and Awards
|
(120.4
|
)
|
|
(83.5
|
)
|
||
Stock Options and Awards — Amortization
|
55.3
|
|
|
56.6
|
|
||
Balance at March 31
|
1,003.3
|
|
|
1,020.4
|
|
||
Retained Earnings
|
|
|
|
||||
Balance at January 1
|
10,776.8
|
|
|
9,685.1
|
|
||
Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
|
—
|
|
|
25.3
|
|
||
Change in Accounting Principle
|
—
|
|
|
(4.5
|
)
|
||
Net Income
|
347.1
|
|
|
381.6
|
|
||
Dividends Declared — Common Stock
|
(133.7
|
)
|
|
(96.4
|
)
|
||
Dividends Declared — Preferred Stock
|
(17.3
|
)
|
|
(17.3
|
)
|
||
Balance at March 31
|
10,972.9
|
|
|
9,973.8
|
|
||
Accumulated Other Comprehensive Income (Loss)
|
|
|
|
||||
Balance at January 1
|
(453.7
|
)
|
|
(414.3
|
)
|
||
Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
|
—
|
|
|
(25.3
|
)
|
||
Net Unrealized (Losses) Gains on Debt Securities Available for Sale
|
85.6
|
|
|
(55.0
|
)
|
||
Net Unrealized (Losses) Gains on Cash Flow Hedges
|
(4.3
|
)
|
|
(3.7
|
)
|
||
Foreign Currency Translation Adjustments
|
14.8
|
|
|
(13.1
|
)
|
||
Pension and Other Postretirement Benefit Adjustments
|
12.3
|
|
|
5.7
|
|
||
Balance at March 31
|
(345.3
|
)
|
|
(505.7
|
)
|
||
Treasury Stock
|
|
|
|
||||
Balance at January 1
|
(2,173.9
|
)
|
|
(1,392.4
|
)
|
||
Stock Options and Awards
|
126.0
|
|
|
102.5
|
|
||
Stock Purchased
|
(257.4
|
)
|
|
(263.2
|
)
|
||
Balance at March 31
|
(2,305.3
|
)
|
|
(1,553.1
|
)
|
||
Total Stockholders’ Equity at March 31
|
$
|
10,616.2
|
|
|
$
|
10,226.0
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
NORTHERN TRUST CORPORATION
|
|
Three Months Ended March 31,
|
||||||
(In Millions)
|
2019
|
|
2018
|
||||
Cash Flows From Operating Activities
|
|
|
|
||||
Net Income
|
$
|
347.1
|
|
|
$
|
381.6
|
|
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
|
|
|
|
||||
Investment Security Losses, net
|
0.2
|
|
|
0.2
|
|
||
Amortization and Accretion of Securities and Unearned Income, net
|
20.0
|
|
|
35.6
|
|
||
Provision for Credit Losses
|
—
|
|
|
(3.0
|
)
|
||
Depreciation on Buildings and Equipment
|
24.9
|
|
|
27.8
|
|
||
Amortization of Computer Software
|
84.8
|
|
|
83.6
|
|
||
Amortization of Intangibles
|
4.2
|
|
|
4.5
|
|
||
Pension Plan Contributions
|
(3.0
|
)
|
|
(71.9
|
)
|
||
Change in Receivables
|
(105.3
|
)
|
|
(79.7
|
)
|
||
Change in Interest Payable
|
(3.6
|
)
|
|
5.7
|
|
||
Change in Collateral With Derivative Counterparties, net
|
292.7
|
|
|
(619.8
|
)
|
||
Other Operating Activities, net
|
(368.3
|
)
|
|
(242.4
|
)
|
||
Net Cash Provided by (Used in) Operating Activities
|
293.7
|
|
|
(477.8
|
)
|
||
Cash Flows From Investing Activities
|
|
|
|
||||
Net Change in Federal Funds Sold and Securities Purchased under Agreements to Resell
|
620.5
|
|
|
(211.9
|
)
|
||
Change in Interest-Bearing Deposits with Banks
|
400.6
|
|
|
660.2
|
|
||
Net Change in Federal Reserve and Other Central Bank Deposits
|
6,738.8
|
|
|
11,533.0
|
|
||
Purchases of Debt Securities – Held to Maturity
|
(3,724.4
|
)
|
|
(5,511.6
|
)
|
||
Proceeds from Maturity and Redemption of Debt Securities – Held to Maturity
|
5,948.6
|
|
|
4,678.4
|
|
||
Purchases of Debt Securities – Available for Sale
|
(1,834.1
|
)
|
|
(2,725.3
|
)
|
||
Proceeds from Sale, Maturity and Redemption of Debt Securities – Available for Sale
|
1,714.3
|
|
|
2,044.4
|
|
||
Change in Loans and Leases
|
1,875.1
|
|
|
491.2
|
|
||
Purchases of Buildings and Equipment
|
(9.1
|
)
|
|
(6.0
|
)
|
||
Purchases and Development of Computer Software
|
(81.9
|
)
|
|
(79.8
|
)
|
||
Change in Client Security Settlement Receivables
|
(419.7
|
)
|
|
1,058.2
|
|
||
Other Investing Activities, net
|
378.9
|
|
|
(774.6
|
)
|
||
Net Cash Provided by Investing Activities
|
11,607.6
|
|
|
11,156.2
|
|
||
Cash Flows From Financing Activities
|
|
|
|
||||
Change in Deposits
|
(8,838.2
|
)
|
|
(7,841.1
|
)
|
||
Change in Federal Funds Purchased
|
(1,942.4
|
)
|
|
(1,953.3
|
)
|
||
Change in Securities Sold under Agreements to Repurchase
|
(128.5
|
)
|
|
(23.8
|
)
|
||
Change in Short-Term Other Borrowings
|
(158.7
|
)
|
|
997.7
|
|
||
Repayments of Senior Notes and Long-Term Debt
|
—
|
|
|
(1.7
|
)
|
||
Treasury Stock Purchased
|
(257.4
|
)
|
|
(263.2
|
)
|
||
Net Proceeds from Stock Options
|
5.5
|
|
|
19.1
|
|
||
Cash Dividends Paid on Common Stock
|
(120.8
|
)
|
|
(95.0
|
)
|
||
Cash Dividends Paid on Preferred Stock
|
(5.9
|
)
|
|
(5.9
|
)
|
||
Net Cash Used in Financing Activities
|
(11,446.4
|
)
|
|
(9,167.2
|
)
|
||
Effect of Foreign Currency Exchange Rates on Cash
|
37.6
|
|
|
52.1
|
|
||
Change in Cash and Due from Banks
|
492.5
|
|
|
1,563.3
|
|
||
Cash and Due from Banks at Beginning of Year
|
4,581.6
|
|
|
4,518.1
|
|
||
Cash and Due from Banks at End of Year
|
$
|
5,074.1
|
|
|
$
|
6,081.4
|
|
Supplemental Disclosures Of Cash Flow Information
|
|
|
|
||||
Interest Paid
|
$
|
244.2
|
|
|
$
|
116.0
|
|
Income Taxes Paid
|
27.2
|
|
|
29.7
|
|
||
Transfers from Loans to OREO
|
—
|
|
|
1.1
|
|
|
March 31, 2019
|
|||||||||||
Financial Instrument
|
Fair Value
|
|
Valuation
Technique
|
|
Unobservable Inputs
|
|
Range of Inputs
|
|||||
Swaps Related to Sale of Certain Visa Class B Common Shares
|
$
|
35.0
|
million
|
|
Discounted Cash Flow
|
|
Visa Class A Appreciation
|
|
7.0
|
%
|
—
|
11.0%
|
|
|
|
Conversion Rate
|
|
1.62
|
x
|
—
|
1.64x
|
||||
|
|
|
|
Expected Duration
|
|
1.25
|
|
—
|
3.75 years
|
|
December 31, 2018
|
|||||||||||
Financial Instrument
|
Fair Value
|
|
Valuation
Technique
|
|
Unobservable Inputs
|
|
Range of Inputs
|
|||||
Swap Related to Sale of Certain Visa Class B Common Shares
|
$
|
32.8
|
million
|
|
Discounted Cash Flow
|
|
Visa Class A Appreciation
|
|
7.0
|
%
|
—
|
11.0%
|
|
|
|
Conversion Rate
|
|
1.62
|
x
|
—
|
1.64x
|
||||
|
|
|
|
Expected Duration
|
|
1.5
|
|
—
|
4.0 years
|
(In Millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting
|
|
Assets/Liabilities
at Fair Value
|
||||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Debt Securities
|
|
|
|
|
|
|
|
|
|
||||||||||
Available for Sale
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government
|
$
|
5,022.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,022.0
|
|
Obligations of States and Political Subdivisions
|
—
|
|
|
764.8
|
|
|
—
|
|
|
—
|
|
|
764.8
|
|
|||||
Government Sponsored Agency
|
—
|
|
|
22,568.6
|
|
|
—
|
|
|
—
|
|
|
22,568.6
|
|
|||||
Non-U.S. Government
|
—
|
|
|
142.7
|
|
|
—
|
|
|
—
|
|
|
142.7
|
|
|||||
Corporate Debt
|
—
|
|
|
2,293.7
|
|
|
—
|
|
|
—
|
|
|
2,293.7
|
|
|||||
Covered Bonds
|
—
|
|
|
837.4
|
|
|
—
|
|
|
—
|
|
|
837.4
|
|
|||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
—
|
|
|
2,236.1
|
|
|
—
|
|
|
—
|
|
|
2,236.1
|
|
|||||
Other Asset-Backed
|
—
|
|
|
2,520.2
|
|
|
—
|
|
|
—
|
|
|
2,520.2
|
|
|||||
Commercial Mortgage-Backed
|
—
|
|
|
658.1
|
|
|
—
|
|
|
—
|
|
|
658.1
|
|
|||||
Other
|
—
|
|
|
14.6
|
|
|
—
|
|
|
—
|
|
|
14.6
|
|
|||||
Total Available for Sale
|
5,022.0
|
|
|
32,036.2
|
|
|
—
|
|
|
—
|
|
|
37,058.2
|
|
|||||
Trading Account
|
—
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|||||
Total Available for Sale and Trading Debt Securities
|
5,022.0
|
|
|
32,036.5
|
|
|
—
|
|
|
—
|
|
|
37,058.5
|
|
|||||
Other Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
—
|
|
|
1,642.0
|
|
|
—
|
|
|
—
|
|
|
1,642.0
|
|
|||||
Interest Rate Contracts
|
—
|
|
|
104.6
|
|
|
—
|
|
|
—
|
|
|
104.6
|
|
|||||
Total Derivative Assets
|
—
|
|
|
1,746.6
|
|
|
—
|
|
|
(979.9
|
)
|
|
766.7
|
|
|||||
Other Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
—
|
|
|
1,490.5
|
|
|
—
|
|
|
—
|
|
|
1,490.5
|
|
|||||
Interest Rate Contracts
|
—
|
|
|
79.6
|
|
|
—
|
|
|
—
|
|
|
79.6
|
|
|||||
Other Financial Derivatives
(1)
|
—
|
|
|
0.9
|
|
|
35.0
|
|
|
—
|
|
|
35.9
|
|
|||||
Total Derivative Liabilities
|
$
|
—
|
|
|
$
|
1,571.0
|
|
|
$
|
35.0
|
|
|
$
|
(1,123.7
|
)
|
|
$
|
482.3
|
|
(1)
|
This line consists of swaps related to the sale of certain Visa Class B common shares and a total return swap contract.
|
(In Millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting
|
|
Assets/Liabilities
at Fair Value
|
||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Debt Securities
|
|
|
|
|
|
|
|
|
|
||||||||||
Available for Sale
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government
|
$
|
5,185.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,185.3
|
|
Obligations of States and Political Subdivisions
|
—
|
|
|
655.9
|
|
|
—
|
|
|
—
|
|
|
655.9
|
|
|||||
Government Sponsored Agency
|
—
|
|
|
22,424.6
|
|
|
—
|
|
|
—
|
|
|
22,424.6
|
|
|||||
Non-U.S. Government
|
—
|
|
|
142.2
|
|
|
—
|
|
|
—
|
|
|
142.2
|
|
|||||
Corporate Debt
|
—
|
|
|
2,294.7
|
|
|
—
|
|
|
—
|
|
|
2,294.7
|
|
|||||
Covered Bonds
|
—
|
|
|
829.3
|
|
|
—
|
|
|
—
|
|
|
829.3
|
|
|||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
—
|
|
|
2,096.2
|
|
|
—
|
|
|
—
|
|
|
2,096.2
|
|
|||||
Other Asset-Backed
|
—
|
|
|
2,657.7
|
|
|
—
|
|
|
—
|
|
|
2,657.7
|
|
|||||
Commercial Mortgage-Backed
|
—
|
|
|
587.2
|
|
|
—
|
|
|
—
|
|
|
587.2
|
|
|||||
Other
|
—
|
|
|
15.7
|
|
|
—
|
|
|
—
|
|
|
15.7
|
|
|||||
Total Available for Sale
|
5,185.3
|
|
|
31,703.5
|
|
|
—
|
|
|
—
|
|
|
36,888.8
|
|
|||||
Trading Account
|
—
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|||||
Total Available for Sale and Trading Debt Securities
|
5,185.3
|
|
|
31,703.8
|
|
|
—
|
|
|
—
|
|
|
36,889.1
|
|
|||||
Other Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
—
|
|
|
2,466.1
|
|
|
—
|
|
|
—
|
|
|
2,466.1
|
|
|||||
Interest Rate Contracts
|
—
|
|
|
96.1
|
|
|
—
|
|
|
—
|
|
|
96.1
|
|
|||||
Other Financial Derivatives
(1)
|
—
|
|
|
1.3
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
|||||
Total Derivative Assets
|
—
|
|
|
2,563.5
|
|
|
—
|
|
|
(1,357.1
|
)
|
|
1,206.4
|
|
|||||
Other Liabilities
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Derivative Liabilities
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Foreign Exchange Contracts
|
—
|
|
|
2,262.5
|
|
|
—
|
|
|
—
|
|
|
2,262.5
|
|
|||||
Interest Rate Contracts
|
—
|
|
|
93.1
|
|
|
—
|
|
|
—
|
|
|
93.1
|
|
|||||
Other Financial Derivatives
(2)
|
—
|
|
|
—
|
|
|
32.8
|
|
|
—
|
|
|
32.8
|
|
|||||
Total Derivative Liabilities
|
$
|
—
|
|
|
$
|
2,355.6
|
|
|
$
|
32.8
|
|
|
$
|
(1,796.3
|
)
|
|
$
|
592.1
|
|
(1)
|
This line consists of a total return swap contract.
|
(2)
|
This line consists of swaps related to the sale of certain Visa Class B common shares.
|
Level 3 Liabilities
(In Millions)
|
Swaps Related to Sale of
Certain Visa Class B
Common Shares
|
||||||
Three Months Ended March 31,
|
2019
|
|
2018
|
||||
Fair Value at January 1
|
$
|
32.8
|
|
|
$
|
29.7
|
|
Total (Gains) Losses:
|
|
|
|
||||
Included in Earnings
(1)
|
5.1
|
|
|
4.2
|
|
||
Purchases, Issues, Sales, and Settlements
|
|
|
|
||||
Settlements
|
(2.9
|
)
|
|
(2.6
|
)
|
||
Fair Value at March 31
|
$
|
35.0
|
|
|
$
|
31.3
|
|
|
|
|
|
(1)
|
(Gains) losses are recorded in other operating income in the consolidated statements of income.
|
|
|
March 31, 2019
|
|||||||||
Financial Instrument
|
|
Fair Value
|
|
Valuation
Technique
|
|
Unobservable Input
|
|
Range of Discounts
Applied
|
|||
Loans
|
|
$22.3 million
|
|
Market Approach
|
|
Discount to reflect realizable value
|
|
15.0
|
%
|
-
|
30.0%
|
OREO
|
|
$0.1 million
|
|
Market Approach
|
|
Discount to reflect realizable value
|
|
15.0
|
%
|
-
|
30.0%
|
|
|
December 31, 2018
|
|||||||||
Financial Instrument
|
|
Fair Value
|
|
Valuation
Technique
|
|
Unobservable Input
|
|
Range of Discounts
Applied
|
|||
Loans
|
|
$24.9 million
|
|
Market Approach
|
|
Discount to reflect realizable value
|
|
15.0
|
%
|
-
|
30.0%
|
OREO
|
|
$0.4 million
|
|
Market Approach
|
|
Discount to reflect realizable value
|
|
15.0
|
%
|
-
|
30.0%
|
(In Millions)
|
March 31, 2019
|
||||||||||||||
|
Book
Value
|
Total
Fair Value
|
Fair Value
|
||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Assets
|
|
|
|
||||||||||||
Cash and Due from Banks
|
$
|
5,074.1
|
|
$
|
5,074.1
|
|
$
|
5,074.1
|
|
$
|
—
|
|
$
|
—
|
|
Federal Reserve and Other Central Bank Deposits
|
23,422.2
|
|
23,422.2
|
|
—
|
|
23,422.2
|
|
—
|
|
|||||
Interest-Bearing Deposits with Banks
|
3,861.6
|
|
3,861.6
|
|
—
|
|
3,861.6
|
|
—
|
|
|||||
Federal Funds Sold and Securities Purchased under Agreements to Resell
|
552.2
|
|
552.2
|
|
—
|
|
552.2
|
|
—
|
|
|||||
Debt Securities
|
|
|
|
|
|
||||||||||
Available for Sale (
Note
)
|
37,058.2
|
|
37,058.2
|
|
5,022.0
|
|
32,036.2
|
|
—
|
|
|||||
Held to Maturity
|
12,143.0
|
|
12,097.7
|
|
119.6
|
|
11,978.1
|
|
—
|
|
|||||
Trading Account
|
0.3
|
|
0.3
|
|
—
|
|
0.3
|
|
—
|
|
|||||
Loans (excluding Leases)
|
|
|
|
|
|
||||||||||
Held for Investment
|
30,417.0
|
|
30,481.9
|
|
—
|
|
—
|
|
30,481.9
|
|
|||||
Held for Sale
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Client Security Settlement Receivables
|
2,067.3
|
|
2,067.3
|
|
—
|
|
2,067.3
|
|
—
|
|
|||||
Total Assets
|
|
|
|
|
|
||||||||||
Federal Reserve and Federal Home Loan Bank Stock
|
300.5
|
|
300.5
|
|
—
|
|
300.5
|
|
—
|
|
|||||
Community Development Investments
|
589.5
|
|
589.5
|
|
—
|
|
589.5
|
|
—
|
|
|||||
Employee Benefit and Deferred Compensation
|
200.5
|
|
197.5
|
|
131.1
|
|
66.4
|
|
—
|
|
|||||
Liabilities
|
|
|
|
|
|
||||||||||
Deposits
|
|
|
|
||||||||||||
Demand, Noninterest-Bearing, Savings, Money Market and Other Interest-Bearing
|
$
|
36,648.5
|
|
$
|
36,648.5
|
|
$
|
36,648.5
|
|
$
|
—
|
|
$
|
—
|
|
Savings Certificates and Other Time
|
856.2
|
|
866.9
|
|
—
|
|
866.9
|
|
—
|
|
|||||
Non U.S. Offices Interest-Bearing
|
58,339.5
|
|
58,339.5
|
|
—
|
|
58,339.5
|
|
—
|
|
|||||
Federal Funds Purchased
|
651.8
|
|
651.8
|
|
—
|
|
651.8
|
|
—
|
|
|||||
Securities Sold Under Agreements to Repurchase
|
39.7
|
|
39.7
|
|
—
|
|
39.7
|
|
—
|
|
|||||
Other Borrowings
|
7,749.8
|
|
7,754.6
|
|
—
|
|
7,754.6
|
|
—
|
|
|||||
Senior Notes
|
2,024.1
|
|
2,031.0
|
|
—
|
|
2,031.0
|
|
—
|
|
|||||
Long-Term Debt
|
|
|
|
|
|
||||||||||
Subordinated Debt
|
1,125.8
|
|
1,133.2
|
|
—
|
|
1,133.2
|
|
—
|
|
|||||
Floating Rate Capital Debt
|
277.6
|
|
256.4
|
|
—
|
|
256.4
|
|
—
|
|
|||||
Other Liabilities
|
|
|
|
|
|
||||||||||
Standby Letters of Credit
|
56.2
|
|
56.2
|
|
—
|
|
—
|
|
56.2
|
|
|||||
Loan Commitments
|
33.0
|
|
33.0
|
|
—
|
|
—
|
|
33.0
|
|
|||||
Derivative Instruments
|
|
|
|
|
|
||||||||||
Asset/Liability Management
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
|
|
|
|
|
||||||||||
Assets
|
$
|
80.2
|
|
$
|
80.2
|
|
$
|
—
|
|
$
|
80.2
|
|
$
|
—
|
|
Liabilities
|
16.5
|
|
16.5
|
|
—
|
|
16.5
|
|
—
|
|
|||||
Interest Rate Contracts
|
|
|
|
|
|
||||||||||
Assets
|
24.1
|
|
24.1
|
|
—
|
|
24.1
|
|
—
|
|
|||||
Liabilities
|
20.8
|
|
20.8
|
|
—
|
|
20.8
|
|
—
|
|
|||||
Other Financial Derivatives
|
|
|
|
|
|||||||||||
Liabilities
(1)
|
35.9
|
|
35.9
|
|
—
|
|
0.9
|
|
35.0
|
|
|||||
Client-Related and Trading
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
|
|
|
|
|
||||||||||
Assets
|
1,561.8
|
|
1,561.8
|
|
—
|
|
1,561.8
|
|
—
|
|
|||||
Liabilities
|
1,474.0
|
|
1,474.0
|
|
—
|
|
1,474.0
|
|
—
|
|
|||||
Interest Rate Contracts
|
|
|
|
|
|||||||||||
Assets
|
80.5
|
|
80.5
|
|
—
|
|
80.5
|
|
—
|
|
|||||
Liabilities
|
58.8
|
|
58.8
|
|
—
|
|
58.8
|
|
—
|
|
(1)
|
This line consists of a total return swap contract and swaps related to the sale of certain Visa Class B common shares.
|
(In Millions)
|
December 31, 2018
|
||||||||||||||
|
Book
Value
|
Total
Fair Value
|
Fair Value
|
||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Assets
|
|
|
|
|
|
||||||||||
Cash and Due from Banks
|
$
|
4,581.6
|
|
$
|
4,581.6
|
|
$
|
4,581.6
|
|
$
|
—
|
|
$
|
—
|
|
Federal Reserve and Other Central Bank Deposits
|
30,080.2
|
|
30,080.2
|
|
—
|
|
30,080.2
|
|
—
|
|
|||||
Interest-Bearing Deposits with Banks
|
4,264.2
|
|
4,264.2
|
|
—
|
|
4,264.2
|
|
—
|
|
|||||
Federal Funds Sold and Securities Purchased under Agreements to Resell
|
1,165.2
|
|
1,165.2
|
|
—
|
|
1,165.2
|
|
—
|
|
|||||
Debt Securities
|
|
|
|
|
|
||||||||||
Available for Sale (
Note
)
|
36,888.8
|
|
36,888.8
|
|
5,185.3
|
|
31,703.5
|
|
—
|
|
|||||
Held to Maturity
|
14,354.0
|
|
14,267.0
|
|
101.6
|
|
14,165.4
|
|
—
|
|
|||||
Trading Account
|
0.3
|
|
0.3
|
|
—
|
|
0.3
|
|
—
|
|
|||||
Loans (excluding Leases)
|
|
|
|
|
|
||||||||||
Held for Investment
|
32,287.0
|
|
32,339.2
|
|
—
|
|
—
|
|
32,339.2
|
|
|||||
Held for Sale
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Client Security Settlement Receivables
|
1,646.1
|
|
1,646.1
|
|
—
|
|
1,646.1
|
|
—
|
|
|||||
Total Assets
|
|
|
|
|
|
||||||||||
Federal Reserve and Federal Home Loan Bank Stock
|
300.3
|
|
300.3
|
|
—
|
|
300.3
|
|
—
|
|
|||||
Community Development Investments
|
606.6
|
|
606.6
|
|
—
|
|
606.6
|
|
—
|
|
|||||
Employee Benefit and Deferred Compensation
|
202.3
|
|
194.5
|
|
125.0
|
|
69.5
|
|
—
|
|
|||||
Liabilities
|
|
|
|
|
|
||||||||||
Deposits
|
|
|
|
|
|
||||||||||
Demand, Noninterest-Bearing, Savings, Money Market and Other Interest-Bearing
|
$
|
37,340.1
|
|
$
|
37,340.1
|
|
$
|
37,340.1
|
|
$
|
—
|
|
$
|
—
|
|
Savings Certificates and Other Time
|
688.7
|
|
691.8
|
|
—
|
|
691.8
|
|
—
|
|
|||||
Non U.S. Offices Interest-Bearing
|
66,468.0
|
|
66,468.0
|
|
—
|
|
66,468.0
|
|
—
|
|
|||||
Federal Funds Purchased
|
2,594.2
|
|
2,594.2
|
|
—
|
|
2,594.2
|
|
—
|
|
|||||
Securities Sold Under Agreements to Repurchase
|
168.3
|
|
168.3
|
|
—
|
|
168.3
|
|
—
|
|
|||||
Other Borrowings
|
7,901.7
|
|
7,904.1
|
|
—
|
|
7,904.1
|
|
—
|
|
|||||
Senior Notes
|
2,011.3
|
|
1,994.4
|
|
—
|
|
1,994.4
|
|
—
|
|
|||||
Long-Term Debt
|
|
|
|
|
|
||||||||||
Subordinated Debt
|
1,112.4
|
|
1,089.7
|
|
—
|
|
1,089.7
|
|
—
|
|
|||||
Floating Rate Capital Debt
|
277.6
|
|
253.5
|
|
—
|
|
253.5
|
|
—
|
|
|||||
Other Liabilities
|
|
|
|
|
|
||||||||||
Standby Letters of Credit
|
30.8
|
|
30.8
|
|
—
|
|
—
|
|
30.8
|
|
|||||
Loan Commitments
|
34.3
|
|
34.3
|
|
—
|
|
—
|
|
34.3
|
|
|||||
Derivative Instruments
|
|
|
|
|
|
||||||||||
Asset/Liability Management
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
|
|
|
|
|
||||||||||
Assets
|
$
|
306.7
|
|
$
|
306.7
|
|
$
|
—
|
|
$
|
306.7
|
|
$
|
—
|
|
Liabilities
|
72.5
|
|
72.5
|
|
—
|
|
72.5
|
|
—
|
|
|||||
Interest Rate Contracts
|
|
|
|
|
|
||||||||||
Assets
|
30.0
|
|
30.0
|
|
—
|
|
30.0
|
|
—
|
|
|||||
Liabilities
|
24.5
|
|
24.5
|
|
—
|
|
24.5
|
|
—
|
|
|||||
Other Financial Derivatives
|
|
|
|
|
|
||||||||||
Assets
(1)
|
1.3
|
|
1.3
|
|
—
|
|
1.3
|
|
—
|
|
|||||
Liabilities
(2)
|
32.8
|
|
32.8
|
|
—
|
|
—
|
|
32.8
|
|
|||||
Client-Related and Trading
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts
|
|
|
|
|
|
||||||||||
Assets
|
2,159.4
|
|
2,159.4
|
|
—
|
|
2,159.4
|
|
—
|
|
|||||
Liabilities
|
2,190.0
|
|
2,190.0
|
|
—
|
|
2,190.0
|
|
—
|
|
|||||
Interest Rate Contracts
|
|
|
|
|
|
||||||||||
Assets
|
66.1
|
|
66.1
|
|
—
|
|
66.1
|
|
—
|
|
|||||
Liabilities
|
68.6
|
|
68.6
|
|
—
|
|
68.6
|
|
—
|
|
Debt Securities Available for Sale
|
March 31, 2019
|
||||||||||||||
|
Amortized
Cost
|
|
Gross Unrealized
|
|
Fair
Value
|
||||||||||
(In Millions)
|
Gains
|
|
Losses
|
|
|||||||||||
U.S. Government
|
$
|
5,030.0
|
|
|
$
|
19.0
|
|
|
$
|
27.0
|
|
|
$
|
5,022.0
|
|
Obligations of States and Political Subdivisions
|
755.8
|
|
|
10.7
|
|
|
1.7
|
|
|
764.8
|
|
||||
Government Sponsored Agency
|
22,624.9
|
|
|
68.3
|
|
|
124.6
|
|
|
22,568.6
|
|
||||
Non-U.S. Government
|
143.3
|
|
|
—
|
|
|
0.6
|
|
|
142.7
|
|
||||
Corporate Debt
|
2,297.6
|
|
|
10.2
|
|
|
14.1
|
|
|
2,293.7
|
|
||||
Covered Bonds
|
837.4
|
|
|
2.6
|
|
|
2.6
|
|
|
837.4
|
|
||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
2,214.0
|
|
|
24.3
|
|
|
2.2
|
|
|
2,236.1
|
|
||||
Other Asset-Backed
|
2,530.5
|
|
|
3.3
|
|
|
13.6
|
|
|
2,520.2
|
|
||||
Commercial Mortgage-Backed
|
647.6
|
|
|
12.5
|
|
|
2.0
|
|
|
658.1
|
|
||||
Other
|
14.6
|
|
|
—
|
|
|
—
|
|
|
14.6
|
|
||||
Total
|
$
|
37,095.7
|
|
|
$
|
150.9
|
|
|
$
|
188.4
|
|
|
$
|
37,058.2
|
|
Debt Securities Available for Sale
|
December 31, 2018
|
||||||||||||||
|
Amortized
Cost
|
|
Gross Unrealized
|
|
Fair
Value
|
||||||||||
(In Millions)
|
Gains
|
|
Losses
|
|
|||||||||||
U.S. Government
|
$
|
5,203.1
|
|
|
$
|
21.8
|
|
|
$
|
39.6
|
|
|
$
|
5,185.3
|
|
Obligations of States and Political Subdivisions
|
657.6
|
|
|
2.0
|
|
|
3.7
|
|
|
655.9
|
|
||||
Government Sponsored Agency
|
22,522.7
|
|
|
52.4
|
|
|
150.5
|
|
|
22,424.6
|
|
||||
Non-U.S. Government
|
143.3
|
|
|
—
|
|
|
1.1
|
|
|
142.2
|
|
||||
Corporate Debt
|
2,312.6
|
|
|
3.2
|
|
|
21.1
|
|
|
2,294.7
|
|
||||
Covered Bonds
|
832.7
|
|
|
1.4
|
|
|
4.8
|
|
|
829.3
|
|
||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
2,087.8
|
|
|
11.9
|
|
|
3.5
|
|
|
2,096.2
|
|
||||
Other Asset-Backed
|
2,678.9
|
|
|
1.7
|
|
|
22.9
|
|
|
2,657.7
|
|
||||
Commercial Mortgage-Backed
|
587.4
|
|
|
4.0
|
|
|
4.2
|
|
|
587.2
|
|
||||
Other
|
15.7
|
|
|
—
|
|
|
—
|
|
|
15.7
|
|
||||
Total
|
$
|
37,041.8
|
|
|
$
|
98.4
|
|
|
$
|
251.4
|
|
|
$
|
36,888.8
|
|
Debt Securities Held to Maturity
|
March 31, 2019
|
||||||||||||||
|
Amortized
Cost
|
|
Gross Unrealized
|
|
Fair
Value
|
||||||||||
(In Millions)
|
Gains
|
|
Losses
|
|
|||||||||||
U.S Government
|
$
|
119.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
119.6
|
|
Obligations of States and Political Subdivisions
|
16.0
|
|
|
0.6
|
|
|
—
|
|
|
16.6
|
|
||||
Government Sponsored Agency
|
4.3
|
|
|
0.2
|
|
|
—
|
|
|
4.5
|
|
||||
Corporate Debt
|
451.6
|
|
|
0.4
|
|
|
0.3
|
|
|
451.7
|
|
||||
Covered Bonds
|
2,617.8
|
|
|
15.5
|
|
|
4.8
|
|
|
2,628.5
|
|
||||
Non-U.S. Government
|
4,338.1
|
|
|
4.7
|
|
|
5.0
|
|
|
4,337.8
|
|
||||
Certificates of Deposit
|
75.8
|
|
|
—
|
|
|
—
|
|
|
75.8
|
|
||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
3,170.2
|
|
|
13.5
|
|
|
4.6
|
|
|
3,179.1
|
|
||||
Other Asset-Backed
|
1,099.6
|
|
|
0.3
|
|
|
1.2
|
|
|
1,098.7
|
|
||||
Other
|
250.0
|
|
|
—
|
|
|
64.6
|
|
|
185.4
|
|
||||
Total
|
$
|
12,143.0
|
|
|
$
|
35.2
|
|
|
$
|
80.5
|
|
|
$
|
12,097.7
|
|
Debt Securities Held to Maturity
|
December 31, 2018
|
||||||||||||||
|
Amortized
Cost
|
|
Gross Unrealized
|
|
Fair
Value
|
||||||||||
(In Millions)
|
Gains
|
|
Losses
|
|
|||||||||||
U.S Government
|
$
|
101.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
101.6
|
|
Obligations of States and Political Subdivisions
|
18.9
|
|
|
0.6
|
|
|
—
|
|
|
19.5
|
|
||||
Government Sponsored Agency
|
4.5
|
|
|
0.2
|
|
|
—
|
|
|
4.7
|
|
||||
Corporate Debt
|
472.9
|
|
|
0.4
|
|
|
1.8
|
|
|
471.5
|
|
||||
Covered Bonds
|
2,877.6
|
|
|
9.6
|
|
|
9.3
|
|
|
2,877.9
|
|
||||
Non-U.S. Government
|
6,488.2
|
|
|
2.1
|
|
|
8.7
|
|
|
6,481.6
|
|
||||
Certificates of Deposit
|
45.1
|
|
|
—
|
|
|
—
|
|
|
45.1
|
|
||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
2,966.8
|
|
|
5.8
|
|
|
12.3
|
|
|
2,960.3
|
|
||||
Other Asset-Backed
|
1,146.4
|
|
|
—
|
|
|
4.0
|
|
|
1,142.4
|
|
||||
Other
|
232.0
|
|
|
—
|
|
|
69.6
|
|
|
162.4
|
|
||||
Total
|
$
|
14,354.0
|
|
|
$
|
18.7
|
|
|
$
|
105.7
|
|
|
$
|
14,267.0
|
|
|
March 31, 2019
|
||||||
(In Millions)
|
Amortized
Cost
|
|
Fair
Value
|
||||
Available for Sale
|
|
|
|
||||
Due in One Year or Less
|
$
|
9,967.0
|
|
|
$
|
9,950.6
|
|
Due After One Year Through Five Years
|
19,376.6
|
|
|
19,379.5
|
|
||
Due After Five Years Through Ten Years
|
6,790.3
|
|
|
6,771.8
|
|
||
Due After Ten Years
|
961.8
|
|
|
956.3
|
|
||
Total
|
37,095.7
|
|
|
37,058.2
|
|
||
Held to Maturity
|
|
|
|
||||
Due in One Year or Less
|
4,820.9
|
|
|
4,820.7
|
|
||
Due After One Year Through Five Years
|
6,787.3
|
|
|
6,795.4
|
|
||
Due After Five Years Through Ten Years
|
452.5
|
|
|
440.4
|
|
||
Due After Ten Years
|
82.3
|
|
|
41.2
|
|
||
Total
|
$
|
12,143.0
|
|
|
$
|
12,097.7
|
|
Debt Securities with Unrealized Losses as of March 31, 2019
|
|
Less than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
(In Millions)
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
U.S. Government
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,674.5
|
|
|
$
|
27.0
|
|
|
$
|
2,674.5
|
|
|
$
|
27.0
|
|
Obligations of States and Political Subdivisions
|
|
66.2
|
|
|
1.2
|
|
|
209.8
|
|
|
0.5
|
|
|
276.0
|
|
|
1.7
|
|
||||||
Government Sponsored Agency
|
|
6,933.4
|
|
|
31.9
|
|
|
8,371.6
|
|
|
92.7
|
|
|
15,305.0
|
|
|
124.6
|
|
||||||
Non-U.S. Government
|
|
2,321.8
|
|
|
0.1
|
|
|
1,259.6
|
|
|
5.5
|
|
|
3,581.4
|
|
|
5.6
|
|
||||||
Corporate Debt
|
|
339.3
|
|
|
0.9
|
|
|
1,009.1
|
|
|
13.5
|
|
|
1,348.4
|
|
|
14.4
|
|
||||||
Covered Bonds
|
|
181.0
|
|
|
0.3
|
|
|
1,022.9
|
|
|
7.1
|
|
|
1,203.9
|
|
|
7.4
|
|
||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
|
253.4
|
|
|
0.6
|
|
|
1,501.8
|
|
|
6.2
|
|
|
1,755.2
|
|
|
6.8
|
|
||||||
Other Asset-Backed
|
|
1,436.5
|
|
|
8.7
|
|
|
893.8
|
|
|
6.1
|
|
|
2,330.3
|
|
|
14.8
|
|
||||||
Commercial Mortgage-Backed
|
|
18.7
|
|
|
0.1
|
|
|
193.5
|
|
|
1.9
|
|
|
212.2
|
|
|
2.0
|
|
||||||
Other
|
|
60.7
|
|
|
19.8
|
|
|
125.8
|
|
|
44.8
|
|
|
186.5
|
|
|
64.6
|
|
||||||
Total
|
|
$
|
11,611.0
|
|
|
$
|
63.6
|
|
|
$
|
17,262.4
|
|
|
$
|
205.3
|
|
|
$
|
28,873.4
|
|
|
$
|
268.9
|
|
Debt Securities with Unrealized Losses as of December 31, 2018
|
|
Less than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
(In Millions)
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
U.S. Government
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,862.0
|
|
|
$
|
39.6
|
|
|
$
|
2,862.0
|
|
|
$
|
39.6
|
|
Obligations of States and Political Subdivisions
|
|
169.6
|
|
|
2.4
|
|
|
279.6
|
|
|
1.3
|
|
|
449.2
|
|
|
3.7
|
|
||||||
Government Sponsored Agency
|
|
8,368.8
|
|
|
33.5
|
|
|
6,822.4
|
|
|
117.0
|
|
|
15,191.2
|
|
|
150.5
|
|
||||||
Non-U.S. Government
|
|
5,065.2
|
|
|
0.8
|
|
|
1,274.0
|
|
|
9.0
|
|
|
6,339.2
|
|
|
9.8
|
|
||||||
Corporate Debt
|
|
712.7
|
|
|
4.1
|
|
|
1,097.4
|
|
|
18.8
|
|
|
1,810.1
|
|
|
22.9
|
|
||||||
Covered Bonds
|
|
646.4
|
|
|
3.7
|
|
|
696.9
|
|
|
10.4
|
|
|
1,343.3
|
|
|
14.1
|
|
||||||
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds
|
|
1,105.0
|
|
|
4.6
|
|
|
1,189.2
|
|
|
11.2
|
|
|
2,294.2
|
|
|
15.8
|
|
||||||
Other Asset-Backed
|
|
2,507.8
|
|
|
15.9
|
|
|
954.9
|
|
|
11.0
|
|
|
3,462.7
|
|
|
26.9
|
|
||||||
Commercial Mortgage-Backed
|
|
22.8
|
|
|
0.1
|
|
|
274.4
|
|
|
4.1
|
|
|
297.2
|
|
|
4.2
|
|
||||||
Other
|
|
50.5
|
|
|
18.8
|
|
|
112.6
|
|
|
50.8
|
|
|
163.1
|
|
|
69.6
|
|
||||||
Total
|
|
$
|
18,648.8
|
|
|
$
|
83.9
|
|
|
$
|
15,563.4
|
|
|
$
|
273.2
|
|
|
$
|
34,212.2
|
|
|
$
|
357.1
|
|
|
Three Months Ended March 31,
|
||||||
(In Millions)
|
2019
|
|
2018
|
||||
Cumulative Credit-Related Losses on Debt Securities Held — Beginning of Period
|
$
|
4.1
|
|
|
$
|
3.6
|
|
Plus: Losses on Newly Identified Impairments
|
—
|
|
|
0.2
|
|
||
Additional Losses on Previously Identified Impairments
|
—
|
|
|
—
|
|
||
Less: Current and Prior Period Losses on Debt Securities Sold During the Period
|
—
|
|
|
—
|
|
||
Cumulative Credit-Related Losses on Debt Securities Held — End of Period
|
$
|
4.1
|
|
|
$
|
3.8
|
|
|
March 31, 2019
|
||
(In Millions)
|
Remaining Contractual
Maturity of the
Agreements
|
||
Repurchase Agreements
|
Overnight and
Continuous
|
||
U.S. Treasury and Agency Securities
|
$
|
39.7
|
|
Total Borrowings
|
39.7
|
|
|
Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 23
|
39.7
|
|
|
Amounts related to agreements not included in Note 23
|
—
|
|
(In Millions)
|
March 31,
2019 |
|
December 31,
2018 |
||||
Commercial
|
|
|
|
||||
Commercial and Institutional
|
$
|
8,532.1
|
|
|
$
|
8,728.1
|
|
Commercial Real Estate
|
3,185.0
|
|
|
3,228.8
|
|
||
Non-U.S.
|
1,648.6
|
|
|
2,701.6
|
|
||
Lease Financing, net
|
89.3
|
|
|
90.7
|
|
||
Other
|
180.5
|
|
|
426.0
|
|
||
Total Commercial
|
13,635.5
|
|
|
15,175.2
|
|
||
Personal
|
|
|
|
||||
Private Client
|
10,669.9
|
|
|
10,733.3
|
|
||
Residential Real Estate
|
6,286.6
|
|
|
6,514.0
|
|
||
Other
|
28.6
|
|
|
67.5
|
|
||
Total Personal
|
16,985.1
|
|
|
17,314.8
|
|
||
Total Loans and Leases
|
$
|
30,620.6
|
|
|
$
|
32,490.0
|
|
Allowance for Credit Losses Assigned to Loans and Leases
|
(114.5
|
)
|
|
(112.6
|
)
|
||
Net Loans and Leases
|
$
|
30,506.1
|
|
|
$
|
32,377.4
|
|
•
|
Commercial and Institutional: leverage, profit margin, liquidity, asset size and capital levels;
|
•
|
Commercial Real Estate: debt service coverage, loan-to-value ratio, leasing status and guarantor support;
|
•
|
Lease Financing and Commercial-Other: leverage, profit margin, liquidity, asset size and capital levels;
|
•
|
Non-U.S.: leverage, profit margin, liquidity, return on assets and capital levels;
|
•
|
Residential Real Estate: payment history, credit bureau scores and loan-to-value ratio;
|
•
|
Private Client: cash-flow-to-debt and net worth ratios, leverage and liquidity; and
|
•
|
Personal-Other: cash-flow-to-debt and net worth ratios.
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||||||||
(In Millions)
|
1 to 3
Category
|
|
4 to 5
Category
|
|
6 to 9
Category
(Watch List)
|
|
Total
|
|
1 to 3
Category
|
|
4 to 5
Category
|
|
6 to 9
Category
(Watch List)
|
|
Total
|
||||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial and Institutional
|
$
|
5,293.4
|
|
|
$
|
3,118.6
|
|
|
$
|
120.1
|
|
|
$
|
8,532.1
|
|
|
$
|
5,477.4
|
|
|
$
|
3,159.8
|
|
|
$
|
90.9
|
|
|
$
|
8,728.1
|
|
Commercial Real Estate
|
1,095.2
|
|
|
2,068.8
|
|
|
21.0
|
|
|
3,185.0
|
|
|
1,209.6
|
|
|
1,992.2
|
|
|
27.0
|
|
|
3,228.8
|
|
||||||||
Non-U.S.
|
1,021.1
|
|
|
626.3
|
|
|
1.2
|
|
|
1,648.6
|
|
|
1,625.3
|
|
|
1,075.3
|
|
|
1.0
|
|
|
2,701.6
|
|
||||||||
Lease Financing, net
|
76.9
|
|
|
12.4
|
|
|
—
|
|
|
89.3
|
|
|
78.3
|
|
|
12.4
|
|
|
—
|
|
|
90.7
|
|
||||||||
Other
|
104.9
|
|
|
75.6
|
|
|
—
|
|
|
180.5
|
|
|
203.3
|
|
|
222.7
|
|
|
—
|
|
|
426.0
|
|
||||||||
Total Commercial
|
7,591.5
|
|
|
5,901.7
|
|
|
142.3
|
|
|
13,635.5
|
|
|
8,593.9
|
|
|
6,462.4
|
|
|
118.9
|
|
|
15,175.2
|
|
||||||||
Personal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Private Client
|
5,983.0
|
|
|
4,680.2
|
|
|
6.7
|
|
|
10,669.9
|
|
|
6,321.1
|
|
|
4,403.2
|
|
|
9.0
|
|
|
10,733.3
|
|
||||||||
Residential Real Estate
|
2,535.3
|
|
|
3,496.6
|
|
|
254.7
|
|
|
6,286.6
|
|
|
2,745.0
|
|
|
3,502.3
|
|
|
266.7
|
|
|
6,514.0
|
|
||||||||
Other
|
16.6
|
|
|
12.0
|
|
|
—
|
|
|
28.6
|
|
|
32.2
|
|
|
35.3
|
|
|
—
|
|
|
67.5
|
|
||||||||
Total Personal
|
8,534.9
|
|
|
8,188.8
|
|
|
261.4
|
|
|
16,985.1
|
|
|
9,098.3
|
|
|
7,940.8
|
|
|
275.7
|
|
|
17,314.8
|
|
||||||||
Total Loans and Leases
|
$
|
16,126.4
|
|
|
$
|
14,090.5
|
|
|
$
|
403.7
|
|
|
$
|
30,620.6
|
|
|
$
|
17,692.2
|
|
|
$
|
14,403.2
|
|
|
$
|
394.6
|
|
|
$
|
32,490.0
|
|
March 31, 2019
|
|||||||||||||||||||||||||||
(In Millions)
|
Current
|
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
90 Days or
More Past
Due
|
|
Total
Performing
|
|
Nonperforming
|
|
Total Loans
and Leases
|
||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and Institutional
|
$
|
8,499.3
|
|
|
$
|
22.1
|
|
|
$
|
3.1
|
|
|
$
|
—
|
|
|
$
|
8,524.5
|
|
|
$
|
7.6
|
|
|
$
|
8,532.1
|
|
Commercial Real Estate
|
3,161.4
|
|
|
3.3
|
|
|
8.1
|
|
|
8.0
|
|
|
3,180.8
|
|
|
4.2
|
|
|
3,185.0
|
|
|||||||
Non-U.S.
|
1,647.6
|
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|
1,648.0
|
|
|
0.6
|
|
|
1,648.6
|
|
|||||||
Lease Financing, net
|
89.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
89.3
|
|
|
—
|
|
|
89.3
|
|
|||||||
Other
|
180.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
180.5
|
|
|
—
|
|
|
180.5
|
|
|||||||
Total Commercial
|
13,578.1
|
|
|
25.8
|
|
|
11.2
|
|
|
8.0
|
|
|
13,623.1
|
|
|
12.4
|
|
|
13,635.5
|
|
|||||||
Personal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Private Client
|
10,622.5
|
|
|
39.1
|
|
|
7.6
|
|
|
0.5
|
|
|
10,669.7
|
|
|
0.2
|
|
|
10,669.9
|
|
|||||||
Residential Real Estate
|
6,143.2
|
|
|
28.9
|
|
|
6.5
|
|
|
4.5
|
|
|
6,183.1
|
|
|
103.5
|
|
|
6,286.6
|
|
|||||||
Other
|
28.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28.6
|
|
|
—
|
|
|
28.6
|
|
|||||||
Total Personal
|
16,794.3
|
|
|
68.0
|
|
|
14.1
|
|
|
5.0
|
|
|
16,881.4
|
|
|
103.7
|
|
|
16,985.1
|
|
|||||||
Total Loans and Leases
|
$
|
30,372.4
|
|
|
$
|
93.8
|
|
|
$
|
25.3
|
|
|
$
|
13.0
|
|
|
$
|
30,504.5
|
|
|
$
|
116.1
|
|
|
$
|
30,620.6
|
|
|
Other Real Estate Owned
|
|
|
$
|
8.0
|
|
|
|
|||||||||||||||||||
|
Total Nonperforming Assets
|
|
|
$
|
124.1
|
|
|
|
December 31, 2018
|
|||||||||||||||||||||||||||
(In Millions)
|
Current
|
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
90 Days or
More Past
Due
|
|
Total
Performing
|
|
Nonperforming
|
|
Total Loans
and Leases
|
||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and Institutional
|
$
|
8,678.2
|
|
|
$
|
37.4
|
|
|
$
|
4.5
|
|
|
$
|
1.2
|
|
|
$
|
8,721.3
|
|
|
$
|
6.8
|
|
|
$
|
8,728.1
|
|
Commercial Real Estate
|
3,191.5
|
|
|
8.4
|
|
|
15.6
|
|
|
6.4
|
|
|
3,221.9
|
|
|
6.9
|
|
|
3,228.8
|
|
|||||||
Non-U.S.
|
2,701.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,701.2
|
|
|
0.4
|
|
|
2,701.6
|
|
|||||||
Lease Financing, net
|
90.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
90.7
|
|
|
—
|
|
|
90.7
|
|
|||||||
Other
|
426.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
426.0
|
|
|
—
|
|
|
426.0
|
|
|||||||
Total Commercial
|
15,087.6
|
|
|
45.8
|
|
|
20.1
|
|
|
7.6
|
|
|
15,161.1
|
|
|
14.1
|
|
|
15,175.2
|
|
|||||||
Personal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Private Client
|
10,681.1
|
|
|
39.5
|
|
|
12.5
|
|
|
—
|
|
|
10,733.1
|
|
|
0.2
|
|
|
10,733.3
|
|
|||||||
Residential Real Estate
|
6,376.8
|
|
|
27.2
|
|
|
6.2
|
|
|
8.8
|
|
|
6,419.0
|
|
|
95.0
|
|
|
6,514.0
|
|
|||||||
Other
|
67.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67.5
|
|
|
—
|
|
|
67.5
|
|
|||||||
Total Personal
|
17,125.4
|
|
|
66.7
|
|
|
18.7
|
|
|
8.8
|
|
|
17,219.6
|
|
|
95.2
|
|
|
17,314.8
|
|
|||||||
Total Loans and Leases
|
$
|
32,213.0
|
|
|
$
|
112.5
|
|
|
$
|
38.8
|
|
|
$
|
16.4
|
|
|
$
|
32,380.7
|
|
|
$
|
109.3
|
|
|
$
|
32,490.0
|
|
|
Other Real Estate Owned
|
|
|
$
|
8.4
|
|
|
|
|||||||||||||||||||
|
Total Nonperforming Assets
|
|
|
$
|
117.7
|
|
|
|
|
As of March 31, 2019
|
|
As of December 31, 2018
|
||||||||||||||||||||
(In Millions)
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Specific
Allowance
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Specific
Allowance
|
||||||||||||
With No Related Specific Allowance
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and Institutional
|
$
|
0.1
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
0.2
|
|
|
$
|
0.4
|
|
|
$
|
—
|
|
Commercial Real Estate
|
2.8
|
|
|
4.7
|
|
|
—
|
|
|
5.8
|
|
|
7.6
|
|
|
—
|
|
||||||
Private Client
|
1.7
|
|
|
1.7
|
|
|
—
|
|
|
1.7
|
|
|
1.7
|
|
|
—
|
|
||||||
Residential Real Estate
|
88.7
|
|
|
117.6
|
|
|
—
|
|
|
76.7
|
|
|
104.7
|
|
|
—
|
|
||||||
With a Related Specific Allowance
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and Institutional
|
7.5
|
|
|
8.8
|
|
|
3.7
|
|
|
6.4
|
|
|
7.3
|
|
|
3.0
|
|
||||||
Commercial Real Estate
|
1.3
|
|
|
1.4
|
|
|
1.1
|
|
|
2.6
|
|
|
2.8
|
|
|
1.1
|
|
||||||
Residential Real Estate
|
21.2
|
|
|
24.8
|
|
|
2.9
|
|
|
22.8
|
|
|
26.1
|
|
|
3.1
|
|
||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
11.7
|
|
|
15.0
|
|
|
4.8
|
|
|
15.0
|
|
|
18.1
|
|
|
4.1
|
|
||||||
Personal
|
111.6
|
|
|
144.1
|
|
|
2.9
|
|
|
101.2
|
|
|
132.5
|
|
|
3.1
|
|
||||||
Total
|
$
|
123.3
|
|
|
$
|
159.1
|
|
|
$
|
7.7
|
|
|
$
|
116.2
|
|
|
$
|
150.6
|
|
|
$
|
7.2
|
|
|
Three Months Ended March 31,
|
||||||||||||||
|
2019
|
|
2018
|
||||||||||||
(In Millions)
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||
With No Related Specific Allowance
|
|
|
|
|
|
|
|
||||||||
Commercial and Institutional
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
19.6
|
|
|
$
|
—
|
|
Commercial Real Estate
|
3.8
|
|
|
—
|
|
|
6.5
|
|
|
—
|
|
||||
Private Client
|
1.7
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
||||
Residential Real Estate
|
89.2
|
|
|
0.6
|
|
|
93.8
|
|
|
0.5
|
|
||||
With a Related Specific Allowance
|
|
|
|
|
|
|
|
||||||||
Commercial and Institutional
|
7.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Commercial Real Estate
|
1.7
|
|
|
—
|
|
|
1.9
|
|
|
—
|
|
||||
Residential Real Estate
|
20.9
|
|
|
—
|
|
|
13.8
|
|
|
—
|
|
||||
Total
|
|
|
|
|
|
|
|
||||||||
Commercial
|
12.7
|
|
|
—
|
|
|
28.0
|
|
|
—
|
|
||||
Personal
|
111.8
|
|
|
0.6
|
|
|
108.2
|
|
|
0.5
|
|
||||
Total
|
$
|
124.5
|
|
|
$
|
0.6
|
|
|
$
|
136.2
|
|
|
$
|
0.5
|
|
($ In Millions)
|
Three Months Ended March 31, 2019
|
|||||||||
|
Number of
Loans and Leases
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|||||
Commercial
|
|
|
|
|
|
|||||
Commercial and Institutional
|
1
|
|
|
$
|
7.6
|
|
|
$
|
8.8
|
|
Commercial Real Estate
|
—
|
|
|
—
|
|
|
—
|
|
||
Total Commercial
|
1
|
|
|
7.6
|
|
|
8.8
|
|
||
Personal
|
|
|
|
|
|
|||||
Private Client
|
—
|
|
|
—
|
|
|
—
|
|
||
Residential Real Estate
|
13
|
|
|
9.8
|
|
|
9.9
|
|
||
Total Personal
|
13
|
|
|
9.8
|
|
|
9.9
|
|
||
Total Loans and Leases
|
14
|
|
|
$
|
17.4
|
|
|
$
|
18.7
|
|
($ In Millions)
|
Three Months Ended March 31, 2018
|
|||||||||
|
Number of
Loans and Leases
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|||||
Commercial
|
|
|
|
|
|
|||||
Commercial and Institutional
|
1
|
|
|
$
|
0.3
|
|
|
$
|
0.5
|
|
Commercial Real Estate
|
—
|
|
|
—
|
|
|
—
|
|
||
Total Commercial
|
1
|
|
|
0.3
|
|
|
0.5
|
|
||
Personal
|
|
|
|
|
|
|||||
Private Client
|
1
|
|
|
—
|
|
|
0.1
|
|
||
Residential Real Estate
|
14
|
|
|
7.5
|
|
|
8.7
|
|
||
Total Personal
|
15
|
|
|
7.5
|
|
|
8.8
|
|
||
Total Loans and Leases
|
16
|
|
|
$
|
7.8
|
|
|
$
|
9.3
|
|
|
Three Months Ended March 31,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||||
(In Millions)
|
Commercial
|
|
Personal
|
|
Total
|
|
Commercial
|
|
Personal
|
|
Total
|
||||||||||||
Balance at Beginning of Period
|
$
|
78.7
|
|
|
$
|
59.5
|
|
|
$
|
138.2
|
|
|
$
|
80.8
|
|
|
$
|
73.0
|
|
|
$
|
153.8
|
|
Charge-Offs
|
(0.1
|
)
|
|
(0.9
|
)
|
|
(1.0
|
)
|
|
(0.8
|
)
|
|
(3.5
|
)
|
|
(4.3
|
)
|
||||||
Recoveries
|
0.4
|
|
|
1.8
|
|
|
2.2
|
|
|
0.6
|
|
|
0.7
|
|
|
1.3
|
|
||||||
Net (Charge-Offs) Recoveries
|
0.3
|
|
|
0.9
|
|
|
1.2
|
|
|
(0.2
|
)
|
|
(2.8
|
)
|
|
(3.0
|
)
|
||||||
Provision for Credit Losses
|
(0.4
|
)
|
|
0.4
|
|
|
—
|
|
|
(3.5
|
)
|
|
0.5
|
|
|
(3.0
|
)
|
||||||
Balance at End of Period
|
$
|
78.6
|
|
|
$
|
60.8
|
|
|
$
|
139.4
|
|
|
$
|
77.1
|
|
|
$
|
70.7
|
|
|
$
|
147.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
(In Millions)
|
Commercial
|
|
Personal
|
|
Total
|
|
Commercial
|
|
Personal
|
|
Total
|
||||||||||||
Loans and Leases
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Specifically Evaluated for Impairment
|
$
|
11.7
|
|
|
$
|
111.6
|
|
|
$
|
123.3
|
|
|
$
|
15.0
|
|
|
$
|
101.2
|
|
|
$
|
116.2
|
|
Evaluated for Inherent Impairment
|
13,623.8
|
|
|
16,873.5
|
|
|
30,497.3
|
|
|
15,160.2
|
|
|
17,213.6
|
|
|
32,373.8
|
|
||||||
Total Loans and Leases
|
13,635.5
|
|
|
16,985.1
|
|
|
30,620.6
|
|
|
15,175.2
|
|
|
17,314.8
|
|
|
32,490.0
|
|
||||||
Allowance for Credit Losses on Credit Exposures
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Specifically Evaluated for Impairment
|
4.8
|
|
|
2.9
|
|
|
7.7
|
|
|
4.1
|
|
|
3.1
|
|
|
7.2
|
|
||||||
Evaluated for Inherent Impairment
|
53.3
|
|
|
53.5
|
|
|
106.8
|
|
|
53.5
|
|
|
51.9
|
|
|
105.4
|
|
||||||
Allowance Assigned to Loans and Leases
|
58.1
|
|
|
56.4
|
|
|
114.5
|
|
|
57.6
|
|
|
55.0
|
|
|
112.6
|
|
||||||
Allowance for Undrawn Exposures
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commitments and Standby Letters of Credit
|
20.5
|
|
|
4.4
|
|
|
24.9
|
|
|
21.1
|
|
|
4.5
|
|
|
25.6
|
|
||||||
Total Allowance for Credit Losses
|
$
|
78.6
|
|
|
$
|
60.8
|
|
|
$
|
139.4
|
|
|
$
|
78.7
|
|
|
$
|
59.5
|
|
|
$
|
138.2
|
|
(In Millions)
|
Three Months Ended March 31, 2019
|
||
Operating Lease Cost
|
$
|
25.2
|
|
Variable Lease Cost
|
10.1
|
|
|
Sublease Income
|
(1.5
|
)
|
|
Total Lease Cost
|
$
|
33.8
|
|
(In Millions)
|
Maturity of Lease Liabilities
|
|
|
2019 (excluding the three months ended March 31, 2019)
|
$
|
74.9
|
|
2020
|
96.6
|
|
|
2021
|
82.0
|
|
|
2022
|
66.6
|
|
|
2023
|
57.3
|
|
|
Later Years
|
207.0
|
|
|
Total Lease Payments
|
584.4
|
|
|
Less: Imputed Interest
|
(74.7
|
)
|
|
Present Value of Lease Liabilities
|
$
|
509.7
|
|
(In Millions)
|
|
Location of Lease Assets and Liabilities in the Balance Sheet
|
|
March 31,
2019 |
||
Assets
|
|
|
|
|
||
Operating Lease Right-of-Use Asset
|
|
Other Assets
|
|
$
|
460.4
|
|
Liabilities
|
|
|
|
|
||
Operating Lease Liability
|
|
Other Liabilities
|
|
$
|
509.7
|
|
|
March 31,
2019 |
Operating Leases
|
|
Weighted-Average Remaining Lease Term
|
7.7 years
|
Weighted-Average Discount Rate
|
3.4%
|
(In Millions)
|
Three Months Ended March 31, 2019
|
||
Cash paid for amounts included in the measurement of lease liabilities
|
|
||
Operating cash flows for operating leases
|
$
|
28.3
|
|
Right-of-use assets obtained in exchange for new operating lease liabilities
|
1.0
|
|
(In Millions)
|
Future Minimum Lease Payments
|
|
|
2019
|
$
|
98.8
|
|
2020
|
97.8
|
|
|
2021
|
85.9
|
|
|
2022
|
77.2
|
|
|
2023
|
67.7
|
|
|
Later Years
|
335.7
|
|
|
Total Minimum Lease Payments
|
763.1
|
|
|
Less: Sublease Rentals
|
(23.4
|
)
|
|
Net Minimum Lease Payments
|
$
|
739.7
|
|
(In Millions)
|
March 31,
2019 |
|
December 31,
2018 |
||||
Corporate & Institutional Services
|
$
|
611.9
|
|
|
$
|
598.2
|
|
Wealth Management
|
71.1
|
|
|
71.1
|
|
||
Total Goodwill
|
$
|
683.0
|
|
|
$
|
669.3
|
|
(In Millions)
|
March 31,
2019 |
|
December 31,
2018 |
||||
Gross Carrying Amount
|
$
|
206.4
|
|
|
$
|
211.1
|
|
Less: Accumulated Amortization
|
74.0
|
|
|
72.5
|
|
||
Net Book Value
|
$
|
132.4
|
|
|
$
|
138.6
|
|
Three Months Ended March 31,
|
Corporate &
Institutional Services |
|
Wealth
Management |
|
Treasury and
Other |
|
Total
Consolidated |
||||||||||||||||||||||||
($ In Millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
Noninterest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Trust, Investment and Other Servicing Fees
|
$
|
535.2
|
|
|
$
|
544.3
|
|
|
$
|
393.7
|
|
|
$
|
393.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
928.9
|
|
|
$
|
937.7
|
|
Foreign Exchange Trading Income
|
59.7
|
|
|
62.4
|
|
|
6.5
|
|
|
1.2
|
|
|
—
|
|
|
14.9
|
|
|
66.2
|
|
|
78.5
|
|
||||||||
Other Noninterest Income
|
43.4
|
|
|
46.6
|
|
|
25.5
|
|
|
25.7
|
|
|
(5.1
|
)
|
|
3.5
|
|
|
63.8
|
|
|
75.8
|
|
||||||||
Net Interest Income*
|
234.8
|
|
|
229.4
|
|
|
195.0
|
|
|
198.8
|
|
|
—
|
|
|
(35.5
|
)
|
|
429.8
|
|
|
392.7
|
|
||||||||
Revenue*
|
873.1
|
|
|
882.7
|
|
|
620.7
|
|
|
619.1
|
|
|
(5.1
|
)
|
|
(17.1
|
)
|
|
1,488.7
|
|
|
1,484.7
|
|
||||||||
Provision for Credit Losses
|
(1.1
|
)
|
|
(3.9
|
)
|
|
1.1
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.0
|
)
|
||||||||
Noninterest Expense
|
648.0
|
|
|
585.6
|
|
|
379.9
|
|
|
365.7
|
|
|
0.8
|
|
|
44.0
|
|
|
1,028.7
|
|
|
995.3
|
|
||||||||
Income before Income Taxes*
|
226.2
|
|
|
301.0
|
|
|
239.7
|
|
|
252.5
|
|
|
(5.9
|
)
|
|
(61.1
|
)
|
|
460.0
|
|
|
492.4
|
|
||||||||
Provision for Income Taxes*
|
53.6
|
|
|
66.8
|
|
|
60.8
|
|
|
62.4
|
|
|
(1.5
|
)
|
|
(18.4
|
)
|
|
112.9
|
|
|
110.8
|
|
||||||||
Net Income
|
$
|
172.6
|
|
|
$
|
234.2
|
|
|
$
|
178.9
|
|
|
$
|
190.1
|
|
|
$
|
(4.4
|
)
|
|
$
|
(42.7
|
)
|
|
$
|
347.1
|
|
|
$
|
381.6
|
|
Percentage of Consolidated Net Income
|
50
|
%
|
|
61
|
%
|
|
51
|
%
|
|
50
|
%
|
|
(1
|
)%
|
|
(11
|
)%
|
|
100
|
%
|
|
100
|
%
|
||||||||
Average Assets
|
$
|
90,351.7
|
|
|
$
|
83,637.0
|
|
|
$
|
29,065.0
|
|
|
$
|
26,108.0
|
|
|
$
|
—
|
|
|
$
|
14,748.3
|
|
|
$
|
119,416.7
|
|
|
$
|
124,493.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions)
|
Balance at March 31, 2019
|
|
Net Change
|
|
Balance at December 31, 2018
|
||||||
Net Unrealized Gains (Losses) on Debt Securities Available for Sale*
|
$
|
(29.3
|
)
|
|
$
|
85.6
|
|
|
$
|
(114.9
|
)
|
Net Unrealized Gains (Losses) on Cash Flow Hedges
|
(0.3
|
)
|
|
(4.3
|
)
|
|
4.0
|
|
|||
Net Foreign Currency Adjustments
|
82.7
|
|
|
14.8
|
|
|
67.9
|
|
|||
Net Pension and Other Postretirement Benefit Adjustments
|
(398.4
|
)
|
|
12.3
|
|
|
(410.7
|
)
|
|||
Total
|
$
|
(345.3
|
)
|
|
$
|
108.4
|
|
|
$
|
(453.7
|
)
|
(In Millions)
|
Balance at March 31, 2018
|
|
Net Change
|
|
Reclassification of Certain Tax Effects from AOCI
|
|
Balance at December 31, 2017
|
||||||||
Net Unrealized Gains (Losses) on Debt Securities Available for Sale
|
$
|
(147.6
|
)
|
|
$
|
(55.0
|
)
|
|
$
|
(17.8
|
)
|
|
$
|
(74.8
|
)
|
Net Unrealized Gains (Losses) on Cash Flow Hedges
|
1.7
|
|
|
(3.7
|
)
|
|
0.9
|
|
|
4.5
|
|
||||
Net Foreign Currency Adjustments
|
32.6
|
|
|
(13.1
|
)
|
|
47.5
|
|
|
(1.8
|
)
|
||||
Net Pension and Other Postretirement Benefit Adjustments
|
(392.4
|
)
|
|
5.7
|
|
|
(55.9
|
)
|
|
(342.2
|
)
|
||||
Total
|
$
|
(505.7
|
)
|
|
$
|
(66.1
|
)
|
|
$
|
(25.3
|
)
|
|
$
|
(414.3
|
)
|
|
Three Months Ended March 31,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||||
(In Millions)
|
Before Tax
|
|
Tax Effect
|
|
After Tax
|
|
Before Tax
|
|
Tax Effect
|
|
After Tax
|
||||||||||||
Unrealized Gains (Losses) on Debt Securities Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized Gains (Losses) on Debt Securities Available for Sale
|
$
|
115.3
|
|
|
$
|
(29.9
|
)
|
|
$
|
85.4
|
|
|
$
|
(75.4
|
)
|
|
$
|
20.4
|
|
|
$
|
(55.0
|
)
|
Reclassification Adjustment for (Gains) Losses Included in Net Income
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net Change
|
$
|
115.5
|
|
|
$
|
(29.9
|
)
|
|
$
|
85.6
|
|
|
$
|
(75.4
|
)
|
|
$
|
20.4
|
|
|
$
|
(55.0
|
)
|
Unrealized Gains (Losses) on Cash Flow Hedges
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign Exchange Contracts
|
$
|
7.2
|
|
|
$
|
(1.7
|
)
|
|
$
|
5.5
|
|
|
$
|
13.0
|
|
|
$
|
(3.2
|
)
|
|
$
|
9.8
|
|
Interest Rate Contracts
|
0.6
|
|
|
(0.2
|
)
|
|
0.4
|
|
|
(1.4
|
)
|
|
0.4
|
|
|
(1.0
|
)
|
||||||
Reclassification Adjustment for (Gains) Losses Included in Net Income
|
(13.6
|
)
|
|
3.4
|
|
|
(10.2
|
)
|
|
(16.6
|
)
|
|
4.1
|
|
|
(12.5
|
)
|
||||||
Net Change
|
$
|
(5.8
|
)
|
|
$
|
1.5
|
|
|
$
|
(4.3
|
)
|
|
$
|
(5.0
|
)
|
|
$
|
1.3
|
|
|
$
|
(3.7
|
)
|
Foreign Currency Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign Currency Translation Adjustments
|
$
|
(6.5
|
)
|
|
$
|
1.6
|
|
|
$
|
(4.9
|
)
|
|
$
|
44.6
|
|
|
$
|
(2.8
|
)
|
|
$
|
41.8
|
|
Long-Term Intra-Entity Foreign Currency Transaction Gains (Losses)
|
0.7
|
|
|
(0.2
|
)
|
|
0.5
|
|
|
1.2
|
|
|
(0.3
|
)
|
|
0.9
|
|
||||||
Net Investment Hedge Gains (Losses)
|
28.6
|
|
|
(9.4
|
)
|
|
19.2
|
|
|
(74.3
|
)
|
|
18.5
|
|
|
(55.8
|
)
|
||||||
Net Change
|
$
|
22.8
|
|
|
$
|
(8.0
|
)
|
|
$
|
14.8
|
|
|
$
|
(28.5
|
)
|
|
$
|
15.4
|
|
|
$
|
(13.1
|
)
|
Pension and Other Postretirement Benefit Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net Actuarial Gain (Loss)
|
$
|
11.3
|
|
|
$
|
(3.1
|
)
|
|
$
|
8.2
|
|
|
$
|
10.1
|
|
|
$
|
(2.5
|
)
|
|
$
|
7.6
|
|
Reclassification Adjustment for (Gains) Losses Included in Net Income
|
5.4
|
|
|
(1.3
|
)
|
|
4.1
|
|
|
9.1
|
|
|
(11.0
|
)
|
|
(1.9
|
)
|
||||||
Net Change
|
$
|
16.7
|
|
|
$
|
(4.4
|
)
|
|
$
|
12.3
|
|
|
$
|
19.2
|
|
|
$
|
(13.5
|
)
|
|
$
|
5.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions)
|
Location of
Reclassification Adjustments Recognized
in Income
|
Amount of Reclassification
Adjustments Recognized
in Income
|
||
Three Months Ended
|
||||
March 31, 2019
|
||||
Debt Securities Available for Sale
|
|
|
||
Realized (Gains) Losses on Debt Securities Available for Sale
|
Investment Security Gains (Losses), net
|
$
|
0.2
|
|
Realized (Gains) Losses on Cash Flow Hedges
|
|
|
||
Foreign Exchange Contracts
|
Other Operating Income
|
$
|
0.6
|
|
|
Interest Income
|
(14.4
|
)
|
|
Interest Rate Contracts
|
Interest Expense
|
0.2
|
|
|
Total Realized (Gains) on Cash Flow Hedges
|
|
$
|
(13.6
|
)
|
Pension and Other Postretirement Benefit Adjustments
|
|
|
||
Amortization of Net Actuarial Loss
|
Employee Benefits
|
$
|
5.5
|
|
Amortization of Prior Service Cost
|
Employee Benefits
|
(0.1
|
)
|
|
Gross Reclassification Adjustment
|
|
$
|
5.4
|
|
(In Millions)
|
Location of
Reclassification Adjustments Recognized
in Income
|
Amount of Reclassification
Adjustments Recognized
in Income
|
||
Three Months Ended
|
||||
March 31, 2018
|
||||
Debt Securities Available for Sale
|
|
|
||
Realized (Gains) Losses on Debt Securities Available for Sale
|
Investment Security Gains (Losses), net
|
$
|
—
|
|
Realized (Gains) Losses on Cash Flow Hedges
|
|
|
||
Foreign Exchange Contracts
|
Other Operating Income
|
$
|
(2.4
|
)
|
|
Interest Income
|
(14.2
|
)
|
|
Interest Rate Contracts
|
Interest Income
|
—
|
|
|
Total Realized (Gains) on Cash Flow Hedges
|
|
$
|
(16.6
|
)
|
Pension and Other Postretirement Benefit Adjustments
|
|
|
||
Amortization of Net Actuarial Loss
|
Employee Benefits
|
$
|
9.2
|
|
Amortization of Prior Service Cost
|
Employee Benefits
|
(0.1
|
)
|
|
Gross Reclassification Adjustment
|
|
$
|
9.1
|
|
|
Three Months Ended March 31,
|
||||||
($ In Millions Except Per Common Share Information)
|
2019
|
|
2018
|
||||
Basic Net Income Per Common Share
|
|
|
|
||||
Average Number of Common Shares Outstanding
|
218,236,802
|
|
|
225,681,167
|
|
||
Net Income
|
$
|
347.1
|
|
|
$
|
381.6
|
|
Less: Dividends on Preferred Stock
|
17.3
|
|
|
17.3
|
|
||
Net Income Applicable to Common Stock
|
$
|
329.8
|
|
|
$
|
364.3
|
|
Less: Earnings Allocated to Participating Securities
|
4.3
|
|
|
5.2
|
|
||
Earnings Allocated to Common Shares Outstanding
|
$
|
325.5
|
|
|
$
|
359.1
|
|
Basic Net Income Per Common Share
|
$
|
1.49
|
|
|
$
|
1.59
|
|
Diluted Net Income Per Common Share
|
|
|
|
||||
Average Number of Common Shares Outstanding
|
218,236,802
|
|
|
225,681,167
|
|
||
Plus: Dilutive Effect of Share-based Compensation
|
1,033,413
|
|
|
1,366,352
|
|
||
Average Common and Potential Common Shares
|
219,270,215
|
|
|
227,047,519
|
|
||
Earnings Allocated to Common and Potential Common Shares
|
$
|
325.4
|
|
|
$
|
359.2
|
|
Diluted Net Income Per Common Share
|
$
|
1.48
|
|
|
$
|
1.58
|
|
|
Three Months Ended March 31,
|
||||||
(In Millions)
|
2019
|
|
2018
|
||||
Noninterest Income
|
|
|
|
||||
Trust, Investment and Other Servicing Fees
|
|
|
|
||||
Custody and Fund Administration
|
$
|
397.5
|
|
|
$
|
395.9
|
|
Investment Management and Advisory
|
459.2
|
|
|
465.6
|
|
||
Securities Lending
|
22.8
|
|
|
26.2
|
|
||
Other
|
49.4
|
|
|
50.0
|
|
||
Total Trust, Investment and Other Servicing Fees
|
$
|
928.9
|
|
|
$
|
937.7
|
|
Other Noninterest Income
|
|
|
|
||||
Foreign Exchange Income
|
$
|
66.2
|
|
|
$
|
78.5
|
|
Treasury Management
|
11.7
|
|
|
14.0
|
|
||
Securities Commissions and Trading Income
|
23.3
|
|
|
27.2
|
|
||
Other Operating Income
|
29.0
|
|
|
34.8
|
|
||
Investment Security Losses, net
|
(0.2
|
)
|
|
(0.2
|
)
|
||
Total Other Noninterest Income
|
$
|
130.0
|
|
|
$
|
154.3
|
|
Total Noninterest Income
|
$
|
1,058.9
|
|
|
$
|
1,092.0
|
|
(In Millions)
|
March 31,
2019 |
|
December 31,
2018 |
||||
Trust Fees Receivable, net
|
$
|
818.4
|
|
|
$
|
742.5
|
|
Other
|
91.4
|
|
|
90.1
|
|
||
Total Client Receivables
|
$
|
909.8
|
|
|
$
|
832.6
|
|
|
Three Months Ended March 31,
|
||||||
(In Millions)
|
2019
|
|
2018
|
||||
Interest Income
|
|
|
|
||||
Loans and Leases
|
$
|
298.2
|
|
|
$
|
252.0
|
|
Securities — Taxable
|
277.5
|
|
|
177.8
|
|
||
— Non-Taxable
|
1.1
|
|
|
2.0
|
|
||
Interest-Bearing Due from and Deposits with Banks
(1)
|
17.9
|
|
|
19.9
|
|
||
Federal Reserve and Other Central Bank Deposits and Other
|
68.1
|
|
|
54.2
|
|
||
Total Interest Income
|
$
|
662.8
|
|
|
$
|
505.9
|
|
Interest Expense
|
|
|
|
||||
Deposits
|
$
|
147.6
|
|
|
$
|
63.1
|
|
Federal Funds Purchased
|
13.4
|
|
|
5.3
|
|
||
Securities Sold Under Agreements to Repurchase
|
1.8
|
|
|
2.7
|
|
||
Other Borrowings
|
49.9
|
|
|
26.5
|
|
||
Senior Notes
|
15.9
|
|
|
11.8
|
|
||
Long-Term Debt
|
10.0
|
|
|
11.0
|
|
||
Floating Rate Capital Debt
|
2.2
|
|
|
1.5
|
|
||
Total Interest Expense
|
$
|
240.8
|
|
|
$
|
121.9
|
|
Net Interest Income
|
$
|
422.0
|
|
|
$
|
384.0
|
|
(1)
|
Interest-Bearing Due from and Deposits with Banks includes the interest-bearing component of Cash and Due from Banks and Interest-Bearing Deposits with Banks as presented on the consolidated balance sheets.
|
Net Periodic Pension Expense
U.S. Plan
|
Three Months Ended March 31,
|
||||||
(In Millions)
|
2019
|
|
2018
|
||||
Service Cost
|
$
|
10.4
|
|
|
$
|
10.4
|
|
Interest Cost
|
11.8
|
|
|
11.1
|
|
||
Expected Return on Plan Assets
|
(21.7
|
)
|
|
(22.0
|
)
|
||
Amortization
|
|
|
|
||||
Net Actuarial Loss
|
4.3
|
|
|
7.1
|
|
||
Prior Service Cost
|
(0.1
|
)
|
|
(0.1
|
)
|
||
Net Periodic Pension Expense
|
$
|
4.7
|
|
|
$
|
6.5
|
|
Net Periodic Pension Expense
Non-U.S. Plans
|
Three Months Ended March 31,
|
||||||
(In Millions)
|
2019
|
|
2018
|
||||
Service Cost
|
$
|
0.5
|
|
|
$
|
0.4
|
|
Interest Cost
|
1.0
|
|
|
1.0
|
|
||
Expected Return on Plan Assets
|
(1.0
|
)
|
|
(1.1
|
)
|
||
Settlement Expense
|
—
|
|
|
—
|
|
||
Net Actuarial Loss Amortization
|
0.1
|
|
|
0.3
|
|
||
Net Periodic Pension Expense
|
$
|
0.6
|
|
|
$
|
0.6
|
|
Net Periodic Pension Expense
Supplemental Plan
|
Three Months Ended March 31,
|
||||||
(In Millions)
|
2019
|
|
2018
|
||||
Service Cost
|
$
|
1.0
|
|
|
$
|
1.1
|
|
Interest Cost
|
1.5
|
|
|
1.3
|
|
||
Amortization
|
|
|
|
||||
Net Actuarial Loss
|
1.4
|
|
|
1.8
|
|
||
Prior Service Cost
|
—
|
|
|
—
|
|
||
Net Periodic Pension Expense
|
$
|
3.9
|
|
|
$
|
4.2
|
|
Net Periodic Postretirement Expense
Postretirement Health Care Plan
|
Three Months Ended March 31,
|
||||||
(In Millions)
|
2019
|
|
2018
|
||||
Service Cost
|
$
|
—
|
|
|
$
|
—
|
|
Interest Cost
|
0.3
|
|
|
0.3
|
|
||
Amortization
|
|
|
|
||||
Net Actuarial (Gain)
|
(0.3
|
)
|
|
—
|
|
||
Prior Service Cost
|
$
|
—
|
|
|
$
|
—
|
|
Net Periodic Postretirement Expense
|
$
|
—
|
|
|
$
|
0.3
|
|
|
Three Months Ended March 31,
|
||||||
(In Millions)
|
2019
|
|
2018
|
||||
Restricted Stock Unit Awards
|
$
|
39.2
|
|
|
$
|
46.7
|
|
Stock Options
|
0.5
|
|
|
0.8
|
|
||
Performance Stock Units
|
15.6
|
|
|
9.0
|
|
||
Total Share-Based Compensation Expense
|
55.3
|
|
|
56.5
|
|
||
Tax Benefits Recognized
|
$
|
13.7
|
|
|
$
|
14.0
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Notional
Value |
|
Fair Value
|
|
Notional
Value |
|
Fair Value
|
||||||||||||||||
(In Millions)
|
Asset
1
|
|
Liability
2
|
|
Asset
1
|
|
Liability
2
|
||||||||||||||||
Derivatives Designated as Hedging under GAAP
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest Rate Contracts
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fair Value Hedges
|
$
|
4,479.8
|
|
|
$
|
23.9
|
|
|
$
|
19.9
|
|
|
$
|
4,590.4
|
|
|
$
|
29.8
|
|
|
$
|
23.3
|
|
Cash Flow Hedges
|
600.0
|
|
|
0.2
|
|
|
0.9
|
|
|
600.0
|
|
|
0.2
|
|
|
1.2
|
|
||||||
Foreign Exchange Contracts
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash Flow Hedges
|
2,259.1
|
|
|
42.5
|
|
|
10.5
|
|
|
2,648.2
|
|
|
13.8
|
|
|
57.8
|
|
||||||
Net Investment Hedges
|
2,509.7
|
|
|
36.5
|
|
|
5.5
|
|
|
3,475.1
|
|
|
292.4
|
|
|
14.5
|
|
||||||
Total Derivatives Designated as Hedging under GAAP
|
$
|
9,848.6
|
|
|
$
|
103.1
|
|
|
$
|
36.8
|
|
|
$
|
11,313.7
|
|
|
$
|
336.2
|
|
|
$
|
96.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives Not Designated as Hedging under GAAP
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-Designated Risk Management Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign Exchange Contracts
|
$
|
117.3
|
|
|
$
|
1.2
|
|
|
$
|
0.5
|
|
|
$
|
122.2
|
|
|
$
|
0.5
|
|
|
$
|
0.2
|
|
Other Financial Derivatives
3
|
559.8
|
|
|
—
|
|
|
35.9
|
|
|
483.4
|
|
|
1.3
|
|
|
32.8
|
|
||||||
Total Non-Designated Risk Management Derivatives
|
$
|
677.1
|
|
|
$
|
1.2
|
|
|
$
|
36.4
|
|
|
$
|
605.6
|
|
|
$
|
1.8
|
|
|
$
|
33.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Client-Related and Trading Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign Exchange Contracts
|
$
|
286,240.1
|
|
|
$
|
1,561.8
|
|
|
$
|
1,474.0
|
|
|
$
|
281,864.4
|
|
|
$
|
2,159.4
|
|
|
$
|
2,190.0
|
|
Interest Rate Contracts
|
7,621.5
|
|
|
80.5
|
|
|
58.8
|
|
|
7,711.2
|
|
|
66.1
|
|
|
68.6
|
|
||||||
Total Client-Related and Trading Derivatives
|
$
|
293,861.6
|
|
|
$
|
1,642.3
|
|
|
$
|
1,532.8
|
|
|
$
|
289,575.6
|
|
|
$
|
2,225.5
|
|
|
$
|
2,258.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Derivatives Not Designated as Hedging under GAAP
|
$
|
294,538.7
|
|
|
$
|
1,643.5
|
|
|
$
|
1,569.2
|
|
|
$
|
290,181.2
|
|
|
$
|
2,227.3
|
|
|
$
|
2,291.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Gross Derivatives
|
$
|
304,387.3
|
|
|
$
|
1,746.6
|
|
|
$
|
1,606.0
|
|
|
$
|
301,494.9
|
|
|
$
|
2,563.5
|
|
|
$
|
2,388.4
|
|
Less: Netting
4
|
|
|
979.9
|
|
|
1,123.7
|
|
|
|
|
1,357.1
|
|
|
1,796.3
|
|
||||||||
Total Derivative Financial Instruments
|
|
|
|
$
|
766.7
|
|
|
$
|
482.3
|
|
|
|
|
|
$
|
1,206.4
|
|
|
$
|
592.1
|
|
|
Location and Amount of Derivative Gain/(Loss) Recognized in Income
|
||||||||||||||||||||||
(In Millions)
|
Interest Income
|
|
Interest Expense
|
|
Other Operating Income
|
||||||||||||||||||
Three Months Ended March 31,
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||
Total amounts on the consolidated statements of income
|
$
|
662.8
|
|
|
$
|
505.9
|
|
|
$
|
240.8
|
|
|
$
|
121.9
|
|
|
$
|
29.0
|
|
|
$
|
34.8
|
|
Gains/(Losses) on fair value hedges recognized on
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest Rate Contracts
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Recognized on derivatives
|
(35.4
|
)
|
|
54.3
|
|
|
28.5
|
|
|
(21.9
|
)
|
|
—
|
|
|
—
|
|
||||||
Recognized on hedged items
|
35.4
|
|
|
(54.3
|
)
|
|
(28.5
|
)
|
|
21.9
|
|
|
—
|
|
|
—
|
|
||||||
Amounts related to interest settlements on derivatives
|
5.5
|
|
|
(3.7
|
)
|
|
(1.6
|
)
|
|
1.5
|
|
|
—
|
|
|
—
|
|
||||||
Total gain/(loss) recognized on fair value hedges
|
$
|
5.5
|
|
|
$
|
(3.7
|
)
|
|
$
|
(1.6
|
)
|
|
$
|
1.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gains/(Losses) on cash flow hedges recognized on
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign Exchange Contracts
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net gain/(loss) reclassified from AOCI to net income
|
$
|
14.4
|
|
|
$
|
14.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(0.6
|
)
|
|
$
|
2.4
|
|
Interest Rate Contracts
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net gain/(loss) reclassified from AOCI to net income
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total gain/(loss) reclassified from AOCI to net income on cash flow hedges
|
$
|
14.2
|
|
|
$
|
14.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(0.6
|
)
|
|
$
|
2.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||
(In Millions)
|
Carrying Value of the Hedged Items
|
|
Cumulative Hedge Accounting Basis Adjustment
(1)
|
|
Carrying Value of the Hedged Items
|
|
Cumulative Hedge Accounting Basis Adjustment
(1)
|
||||||||
Available for Sale Debt Securities
(2)
|
$
|
3,759.5
|
|
|
$
|
60.5
|
|
|
$
|
3,831.6
|
|
|
$
|
99.4
|
|
Senior Notes and Long-Term Subordinated Debt
|
1,248.9
|
|
|
55.1
|
|
|
1,248.8
|
|
|
29.3
|
|
||||
Total
|
$
|
5,008.4
|
|
|
$
|
115.6
|
|
|
$
|
5,080.4
|
|
|
$
|
128.7
|
|
(In Millions)
|
Location of
Derivative Gain / (Loss) Recognized in Income |
Amount of Derivative Gain / (Loss)
Recognized in Income |
||||||
Three Months Ended March 31,
|
||||||||
2019
|
|
2018
|
||||||
Non-designated risk management derivatives
|
|
|
|
|
||||
Foreign Exchange Contracts
|
Other Operating Income
|
$
|
0.9
|
|
|
$
|
4.0
|
|
Other Financial Derivatives
(1)
|
Other Operating Income
|
(7.3
|
)
|
|
(4.0
|
)
|
||
Gains/(Losses) from non-designated risk management derivatives
|
|
$
|
(6.4
|
)
|
|
$
|
—
|
|
|
|
|
|
|
||||
Client-related and trading derivatives
|
|
|
|
|
||||
Foreign Exchange Contracts
|
Foreign Exchange Trading Income
|
$
|
66.2
|
|
|
$
|
78.5
|
|
Interest Rate Contracts
|
Security Commissions and Trading Income
|
1.5
|
|
|
1.7
|
|
||
Gains/(Losses) from client-related and trading derivatives
|
|
$
|
67.7
|
|
|
$
|
80.2
|
|
|
|
|
|
|
||||
Total gains/(losses) from derivatives not designated as hedging under GAAP
|
|
$
|
61.3
|
|
|
$
|
80.2
|
|
(1)
|
This line includes swaps related to sales of certain Visa Class B common shares and total return swap contracts.
|
March 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
(In Millions)
|
Gross Recognized Assets
|
|
Gross Amounts Offset in the Balance Sheet
(2)
|
|
Net Amounts Presented in the Balance Sheet
|
|
Gross Amounts Not Offset in the Balance Sheet
|
|
Net
Amount
(4)
|
||||||||||
Derivative Assets
(1)
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts Over the Counter (OTC)
|
$
|
1,127.8
|
|
|
$
|
926.8
|
|
|
$
|
201.0
|
|
|
$
|
30.4
|
|
|
$
|
170.6
|
|
Interest Rate Swaps OTC
|
60.5
|
|
|
12.3
|
|
|
48.2
|
|
|
—
|
|
|
48.2
|
|
|||||
Interest Rate Swaps Exchange Cleared
|
44.2
|
|
|
40.8
|
|
|
3.4
|
|
|
—
|
|
|
3.4
|
|
|||||
Total Derivatives Subject to a Master Netting Arrangement
|
1,232.5
|
|
|
979.9
|
|
|
252.6
|
|
|
30.4
|
|
|
222.2
|
|
|||||
Total Derivatives Not Subject to a Master Netting Arrangement
|
514.1
|
|
|
—
|
|
|
514.1
|
|
|
—
|
|
|
514.1
|
|
|||||
Total Derivatives
|
1,746.6
|
|
|
979.9
|
|
|
766.7
|
|
|
30.4
|
|
|
736.3
|
|
|||||
Securities Purchased under Agreements to Resell
(2)
|
$
|
515.2
|
|
|
$
|
—
|
|
|
$
|
515.2
|
|
|
$
|
515.2
|
|
|
$
|
—
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
(In Millions)
|
Gross Recognized Assets
|
|
Gross Amounts Offset in the Balance Sheet
(2)
|
|
Net Amounts Presented in the Balance Sheet
|
|
Gross Amounts Not Offset in the Balance Sheet
|
|
Net
Amount
(4)
|
||||||||||
Derivative Assets
(1)
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts OTC
|
$
|
1,902.3
|
|
|
$
|
1,308.8
|
|
|
$
|
593.5
|
|
|
$
|
12.7
|
|
|
$
|
580.8
|
|
Interest Rate Swaps OTC
|
71.6
|
|
|
22.6
|
|
|
49.0
|
|
|
—
|
|
|
49.0
|
|
|||||
Interest Rate Swaps Exchange Cleared
|
24.5
|
|
|
24.4
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|||||
Other Financial Derivatives
|
1.3
|
|
|
1.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total Derivatives Subject to a Master Netting Arrangement
|
1,999.7
|
|
|
1,357.1
|
|
|
642.6
|
|
|
12.7
|
|
|
629.9
|
|
|||||
Total Derivatives Not Subject to a Master Netting Arrangement
|
563.8
|
|
|
—
|
|
|
563.8
|
|
|
2.7
|
|
|
561.1
|
|
|||||
Total Derivatives
|
2,563.5
|
|
|
1,357.1
|
|
|
1,206.4
|
|
|
15.4
|
|
|
1,191.0
|
|
|||||
Securities Purchased under Agreements to Resell
(3)
|
$
|
1,031.2
|
|
|
$
|
—
|
|
|
$
|
1,031.2
|
|
|
$
|
1,031.2
|
|
|
$
|
—
|
|
(1)
|
Derivative assets are reported in other assets in the consolidated balance sheets. Other assets (excluding derivative assets) totaled
$5.3 billion
and
$4.6 billion
as of
March 31, 2019
and
December 31, 2018
, respectively.
|
(2)
|
Including cash collateral received from counterparties.
|
(3)
|
Securities purchased under agreements to resell are reported in federal funds sold and securities purchased under agreements to resell in the consolidated balance sheets. Federal funds sold totaled
$37.0 million
and
$134.0 million
as of
March 31, 2019
and
December 31, 2018
, respectively.
|
(4)
|
Northern Trust did not possess any cash collateral that was not offset in the consolidated balance sheets that could have been used to offset the net amounts presented in the consolidated balance sheets as of
March 31, 2019
and
December 31, 2018
.
|
March 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
(In Millions)
|
Gross
Recognized
Liabilities
|
|
Gross Amounts Offset in the Balance Sheet
(2)
|
|
Net
Amounts
Presented in the Balance Sheet
|
|
Gross
Amounts
Not Offset in the Balance Sheet
|
|
Net
Amount
(3)
|
||||||||||
Derivative Liabilities
(1)
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts OTC
|
$
|
1,169.5
|
|
|
$
|
1,054.9
|
|
|
$
|
114.6
|
|
|
$
|
0.1
|
|
|
$
|
114.5
|
|
Interest Rate Swaps OTC
|
38.8
|
|
|
27.8
|
|
|
11.0
|
|
|
—
|
|
|
11.0
|
|
|||||
Interest Rate Swaps Exchange Cleared
|
40.8
|
|
|
40.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other Financial Derivatives
|
35.9
|
|
|
0.2
|
|
|
35.7
|
|
|
—
|
|
|
35.7
|
|
|||||
Total Derivatives Subject to a Master Netting Arrangement
|
1,285.0
|
|
|
1,123.7
|
|
|
161.3
|
|
|
0.1
|
|
|
161.2
|
|
|||||
Total Derivatives Not Subject to a Master Netting Arrangement
|
321.0
|
|
|
—
|
|
|
321.0
|
|
|
—
|
|
|
321.0
|
|
|||||
Total Derivatives
|
1,606.0
|
|
|
1,123.7
|
|
|
482.3
|
|
|
0.1
|
|
|
482.2
|
|
|||||
Securities Sold under Agreements to Repurchase
|
$
|
39.7
|
|
|
$
|
—
|
|
|
$
|
39.7
|
|
|
$
|
39.7
|
|
|
$
|
—
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
(In Millions)
|
Gross
Recognized
Liabilities
|
|
Gross Amounts Offset in the Balance Sheet
(2)
|
|
Net
Amounts
Presented in the Balance Sheet
|
|
Gross
Amounts
Not Offset in the Balance Sheet
|
|
Net
Amount
(3)
|
||||||||||
Derivative Liabilities
(1)
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign Exchange Contracts OTC
|
$
|
1,821.0
|
|
|
$
|
1,751.7
|
|
|
$
|
69.3
|
|
|
$
|
—
|
|
|
$
|
69.3
|
|
Interest Rate Swaps OTC
|
68.8
|
|
|
19.0
|
|
|
49.8
|
|
|
—
|
|
|
49.8
|
|
|||||
Interest Rate Swaps Exchange Cleared
|
24.4
|
|
|
24.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other Financial Derivatives
|
32.8
|
|
|
1.2
|
|
|
31.6
|
|
|
—
|
|
|
31.6
|
|
|||||
Total Derivatives Subject to a Master Netting Arrangement
|
1,947.0
|
|
|
1,796.3
|
|
|
150.7
|
|
|
—
|
|
|
150.7
|
|
|||||
Total Derivatives Not Subject to a Master Netting Arrangement
|
441.4
|
|
|
—
|
|
|
441.4
|
|
|
—
|
|
|
441.4
|
|
|||||
Total Derivatives
|
2,388.4
|
|
|
1,796.3
|
|
|
592.1
|
|
|
—
|
|
|
592.1
|
|
|||||
Securities Sold under Agreements to Repurchase
|
$
|
168.3
|
|
|
$
|
—
|
|
|
$
|
168.3
|
|
|
$
|
168.3
|
|
|
$
|
—
|
|
(1)
|
Derivative liabilities are reported in other liabilities in the consolidated balance sheets. Other liabilities (excluding derivative liabilities) totaled
$3.1 billion
and
$2.5 billion
as of
March 31, 2019
and
December 31, 2018
, respectively.
|
(2)
|
Including cash collateral deposited with counterparties.
|
(3)
|
Northern Trust did not place any cash collateral with counterparties that was not offset in the consolidated balance sheets that could have been used to offset the net amounts presented in the consolidated balance sheets as of
March 31, 2019
and
December 31, 2018
.
|
Period
|
Total Number
of Shares Purchased |
|
Average
Price Paid per Share |
|
Total Number of
Shares Purchased as Part of a Publicly Announced Plan (1) |
|
Maximum Number of
Shares that May Yet Be Purchased Under the Plan |
|||||
January 1 - 31, 2019
|
882,492
|
|
|
$
|
87.07
|
|
|
882,492
|
|
|
19,518,379
|
|
February 1 - 28, 2019
|
653,205
|
|
|
91.21
|
|
|
653,205
|
|
|
18,865,174
|
|
|
March 1 - 31, 2019
|
804,444
|
|
|
91.70
|
|
|
804,444
|
|
|
18,060,730
|
|
|
Total (First Quarter)
|
2,340,141
|
|
|
$
|
89.82
|
|
|
2,340,141
|
|
|
18,060,730
|
|
(1)
|
Repurchases were made pursuant to the repurchase program announced by the Corporation on
July 17, 2018
, under which the Corporation’s Board of Directors authorized the Corporation to repurchase up to
25.0 million
shares of the Corporation’s common stock. The repurchase program has no expiration date.
|
|
|
NORTHERN TRUST CORPORATION
|
|
|
|
(Registrant)
|
|
|
|
|
|
Date:
|
April 29, 2019
|
By:
|
/s/ S. Biff Bowman
|
|
|
|
S. Biff Bowman
Executive Vice President and
Chief Financial Officer
(Duly Authorized Officer and Principal Financial Officer)
|
|
|
|
|
Date:
|
April 29, 2019
|
By:
|
/s/ Aileen B. Blake
|
|
|
|
Aileen B. Blake
Executive Vice President and Controller
(Principal Accounting Officer)
|
Exhibit
Number
|
Description
|
|
|
|
|
4.1
|
Certain instruments defining the rights of the holders of long-term debt of the Corporation and certain of its subsidiaries, none of which authorize a total amount of indebtedness in excess of 10% of the total assets of the Corporation and its subsidiaries on a consolidated basis, have not been filed as exhibits. The Corporation hereby agrees to furnish a copy of any of these agreements to the SEC upon request.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101
|
Includes the following financial and related information from Northern Trust’s Quarterly Report on Form 10-Q as of and for the quarter ended March 31, 2019, formatted in Extensible Business Reporting Language (XBRL): (1) the Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018, (2) the Consolidated Statements of Income for the three months ended March 31, 2019 and 2018, (3) the Consolidated Statements of Comprehensive Income for the three months ended March 31, 2019 and 2018, (4) the Consolidated Statements of Changes in Stockholders’ Equity for the three months ended March 31, 2019 and 2018, (5) the Consolidated Statements of Cash Flows for the three months ended March 31, 2019 and 2018, and (6) Notes to Consolidated Financial Statements
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
---|---|---|---|
GEODE CAPITAL MANAGEMENT, LLC | 4,904,871 | 501,443,682 | |
AMUNDI | 1,602,263 | 163,783,461 | |
CONFLUENCE INVESTMENT MANAGEMENT LLC | 1,111,743 | 109,673,451 | |
Parametric Portfolio Associates LLC | 644,532 | 75,056 | |
Raiffeisen Bank International AG | 437,590 | 42,511,870 | |
Polaris Capital Management, LLC | 383,800 | 39,339,500 | |
CALIFORNIA STATE TEACHERS RETIREMENT SYSTEM | 355,732 | 36,462,530 | |
LSV ASSET MANAGEMENT | 317,300 | 31,302 | |
BNP PARIBAS FINANCIAL MARKETS | 242,276 | 24,833,290 | |
BARROW HANLEY MEWHINNEY & STRAUSS LLC | 223,189 | 22,876,872 | |
MARTINGALE ASSET MANAGEMENT L P | 198,807 | 20,377,718 | |
GAMCO INVESTORS, INC. ET AL | 195,695 | 20,058,738 | |
NEW YORK STATE TEACHERS RETIREMENT SYSTEM | 188,001 | 18,546 | |
NEW YORK STATE COMMON RETIREMENT FUND | 134,527 | 13,271 | |
CAISSE DE DEPOT ET PLACEMENT DU QUEBEC | 131,028 | 13,430,370 | |
SPEECE THORSON CAPITAL GROUP INC | 119,282 | 11,767 | |
Achmea Investment Management B.V. | 115,024 | 11,348 | |
Madison Investment Advisors, LLC | 73,265 | 7,509,663 | |
PUBLIC EMPLOYEES RETIREMENT SYSTEM OF OHIO | 71,973 | 7,377,233 | |
VAN ECK ASSOCIATES CORP | 67,689 | 6,938 | |
KLP KAPITALFORVALTNING AS | 67,509 | 6,702,799 | |
THOMPSON INVESTMENT MANAGEMENT, INC. | 61,155 | 6,032,923 | |
GABELLI FUNDS LLC | 60,000 | 6,150,000 | |
Baird Financial Group, Inc. | 54,765 | 5,613,413 | |
MetLife Investment Management, LLC | 52,421 | 5,373,153 | |
KORNITZER CAPITAL MANAGEMENT INC /KS | 41,441 | 4,088,155 | |
FORSTA AP-FONDEN | 41,000 | 4,202,500 | |
DnB Asset Management AS | 38,982 | 3,995,655 | |
AMALGAMATED BANK | 38,065 | 3,755 | |
Ethic Inc. | 35,420 | 3,630,584 | |
GREAT LAKES ADVISORS, LLC | 31,982 | 3,278,194 | |
Global Frontier Investments LLC | 30,000 | 3,075 | |
FAIRVIEW CAPITAL INVESTMENT MANAGEMENT, LLC | 29,060 | 2,978,650 | |
Police & Firemen's Retirement System of New Jersey | 29,018 | 2,862,626 | |
Heritage Way Advisors, LLC | 26,816 | 3,207 | |
YOUSIF CAPITAL MANAGEMENT, LLC | 25,278 | 2,493,675 | |
Sciencast Management LP | 25,025 | 2,565,062 | |
NISA INVESTMENT ADVISORS, LLC | 24,768 | 2,461,941 | |
STRS OHIO | 24,737 | 2,227,072 | |
WEDGE CAPITAL MANAGEMENT L L P/NC | 23,770 | 2,344,911 | |
Bartlett & Co. LLC | 23,030 | 1,974 | |
Twin Tree Management, LP | 21,600 | 2,214,000 | |
PUBLIC EMPLOYEES RETIREMENT ASSOCIATION OF COLORADO | 21,489 | 2,203 | |
Callahan Advisors, LLC | 19,492 | 1,922,905 | |
OREGON PUBLIC EMPLOYEES RETIREMENT FUND | 16,839 | 1,661,167 | |
Tredje AP-fonden | 16,276 | 1,605,627 | |
BARTLETT & CO. WEALTH MANAGEMENT LLC | 15,992 | 1,589,690 | |
OAK ASSOCIATES LTD /OH/ | 15,931 | 1,632,927 | |
TEACHERS RETIREMENT SYSTEM OF THE STATE OF KENTUCKY | 15,293 | 1,509 | |
Sterling Capital Management LLC | 14,873 | 1,524,483 | |
BROWN BROTHERS HARRIMAN & CO | 14,411 | 1,477,128 | |
BESSEMER GROUP INC | 14,390 | 1,419 | |
CIBC Private Wealth Group LLC | 14,118 | 1,443,176 | |
Plato Investment Management Ltd | 12,961 | 1,333,330 | |
PRAXIS INVESTMENT MANAGEMENT INC | 12,757 | 1,258 | |
Douglass Winthrop Advisors, LLC | 12,000 | 1,230,000 | |
HARTFORD INVESTMENT MANAGEMENT CO | 11,997 | 1,183,504 | |
Pacer Advisors, Inc. | 11,930 | 1,176,894 | |
FOLGER NOLAN FLEMING DOUGLAS CAPITAL MANAGEMENT, INC | 10,400 | 1,025,960 | |
Jackson Creek Investment Advisors LLC | 10,366 | 1,023 | |
WEDBUSH SECURITIES INC | 9,820 | 969 | |
YACKTMAN ASSET MANAGEMENT LP | 9,500 | 937,175 | |
NEW MEXICO EDUCATIONAL RETIREMENT BOARD | 9,311 | 919 | |
Mount Lucas Management LP | 9,180 | 905,607 | |
Fruth Investment Management | 9,000 | 922 | |
iA Global Asset Management Inc. | 8,666 | 855 | |
TIAA TRUST, NATIONAL ASSOCIATION | 8,069 | 796,007 | |
RAYMOND JAMES TRUST N.A. | 7,610 | 685,130 | |
STUDIO INVESTMENT MANAGEMENT LLC | 7,407 | 764,736 | |
ALLSTATE INVESTMENT MANAGEMENT CO | 7,083 | 626,775 | |
Hillsdale Investment Management Inc. | 6,950 | 685,618 | |
Fairpointe Capital LLC | 6,108 | 642 | |
DAVIS R M INC | 5,656 | 557,964 | |
TIAA, FSB | 5,207 | 386,047 | |
FIRST MERCANTILE TRUST CO | 5,174 | 558 | |
TOBAM | 5,169 | 510 | |
111 Capital | 4,910 | 503,275 | |
BRADLEY FOSTER & SARGENT INC/CT | 4,774 | 489,292 | |
V-Square Quantitative Management LLC | 4,529 | 464,223 | |
CITY NATIONAL BANK OF FLORIDA /MSD | 3,856 | 380,393 | |
Argent Financial Group, Inc. | 3,841 | 345,805 | |
HighPoint Advisor Group LLC | 3,632 | 341,604 | |
BRR OpCo, LLC | 3,601 | 308 | |
DUMONT & BLAKE INVESTMENT ADVISORS LLC | 3,343 | 329,787 | |
MUFG SECURITIES AMERICAS INC. | 3,284 | 336,610 | |
55I, LLC | 3,220 | 276 | |
EQUITABLE TRUST CO | 3,124 | 308,182 | |
BAHL & GAYNOR INC | 3,095 | 317,238 | |
Heritage Trust Co | 2,644 | 260,831 | |
Ironwood Investment Counsel, LLC | 2,582 | 264,655 | |
BALASA DINVERNO & FOLTZ LLC | 2,581 | 221 | |
NEVILLE RODIE & SHAW INC | 2,500 | 247 | |
Janney Montgomery Scott LLC | 2,426 | 239 | |
Fifth Third Wealth Advisors LLC | 2,179 | 214,958 | |
HUNTINGTON NATIONAL BANK | 2,162 | 221,618 | |
Jump Financial, LLC | 2,105 | 215,763 | |
Independence Bank of Kentucky | 2,075 | 204,699 | |
CIGNA INVESTMENTS INC /NEW | 2,023 | 207 | |
Harvest Fund Management Co., Ltd | 1,714 | 169 | |
Covestor Ltd | 1,448 | 148 |
DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
---|---|---|---|
Professional Experience ● Owl Creek Partners, LLC (private equity firm) ¡ Chairman and Chief Executive Officer, since 2010 ● Susan Crown Exchange Inc. (social investment organization) ¡ Chairman and Founder, since 2009 ● Henry Crown and Company (company with diversified investments) ¡ Vice President, 1984 to 2015 Current Public and/or Investment Company Directorships ● Illinois Tool Works Inc., since 1994 Qualifications The Board concluded that Ms. Crown should serve as a director based on her leadership, risk oversight, governance, and corporate responsibility experience developed through service at various large organizations, both commercial and nonprofit, including as Chair of the Board of Trustees at Rush University Medical Center and the Rush University System for Health. | |||
Professional Experience ● TransUnion (global risk and information solutions provider) ¡ President and Chief Executive Officer, 2007 to 2012 ● HSBC Finance Corporation (owner and servicer of a portfolio of residential real estate loans) and HSBC North America Holdings, Inc. (holding company for HSBC Holdings plc’s operations in the United States) ¡ Chief Executive Officer, 2005 to 2007 Current Public and/or Investment Company Directorships ● The Allstate Corporation, since 2014 ● Jones Lang LaSalle Incorporated, since 2019 Other Recent Public and/or Investment Company Directorships ● TransUnion, 2007 to 2022 ● Piramal Enterprises Limited, 2013 to 2020 Qualifications The Board concluded that Mr. Mehta should serve as a director based on his management and board experience at large, complex organizations and his experience in the financial services industry. | |||
Professional Experience ● PricewaterhouseCoopers LLP (professional services firm) ¡ Global Chairman, PwC International, 2016 to June 2024 ¡ US Chair and Senior Partner, 2009 to 2016 ¡ US Assurance Leader, 2006 to 2009 ¡ Managing Partner, New York Office and Metro Region, 2004 to 2006 ¡ Financial Services Audit and Business Advisory Leader, 2001 to 2004 Current Public and/or Investment Company Directorships ● Walmart Inc., since August 2024 Qualifications The Board concluded that Mr. Moritz should serve as a director based on his global leadership experience and extensive experience with the financial services industry through various roles at PricewaterhouseCoopers LLP. | |||
Professional Experience American Express Company (financial services firm) ● Chief Operating Officer, American Express National Bank, 2020 to June 2024 ● EVP, Corporate Controller and Chief Accounting Officer, 2018 to 2020 ● SVP, Chief Operational Risk Officer and Global Head of Oversight, 2016 to 2018 ● SVP, Head of Global Capital Markets (Treasury), 2014 to 2016 ● SVP, Head of Corporate Planning and Investor Relations, 2007 to 2014 Other Recent Public and/or Investment Company Directorships ● Global Business Travel Group, 2019 to June 2024 Qualifications The Board concluded that Mr. Petrino should serve as a director based on his significant strategic, operating, and risk management experience within the financial services industry as a former executive at American Express Company. | |||
The current leadership structure of the Board consists of a combined Chairman and CEO position (currently Mr. O’Grady) and a separate Lead Director (currently Mr. Henderson) who is appointed annually by the Corporation’s independent directors in accordance with the Corporation’s Corporate Governance Guidelines. The Board has determined that combining the positions of Chairman and CEO is most appropriate for the Corporation at this time, as having one person serve as Chairman and CEO provides unified leadership and direction to the Corporation and strengthens the ability of the CEO to develop and implement strategic initiatives and respond effectively in crisis situations. The Board also believes that the desire for independent leadership of the Board is sufficiently achieved by the prominent role of the Lead Director. | |||
Professional Experience ● Molex LLC (manufacturer of electronic, electrical and fiber optic interconnection products and systems) ¡ Chief Executive Officer, 2005 to 2018 Current Public and/or Investment Company Directorships ● Hub Group, Inc., since 1996 Qualifications The Board concluded that Mr. Slark should serve as a director based on his experience leading a complex global corporation and his risk oversight experience as Chief Executive Officer of Molex LLC and as a director of other large, complex corporations, including Liberty Mutual Insurance Company. | |||
Professional Experience ● Ford Motor Company (global automaker) ¡ Chief Transformation Officer, 2019 ¡ Executive Vice President and President, Mobility, 2017 to 2019 ¡ Chief Information Officer and Group Vice President, Information Technology, 2015 to 2017 ¡ Director, Office of the Chief Information Officer, 2013 to 2015 Current Public and/or Investment Company Directorships ● Cerence, Inc., since 2023 ● Humana, Inc., since 2021 Other Recent Public and/or Investment Company Directorships ● Pivotal Software, Inc., 2016 to 2019 Qualifications The Board concluded that Ms. Klevorn should serve as a director based on her extensive experience with respect to the innovation and application of cutting-edge technologies. | |||
The current leadership structure of the Board consists of a combined Chairman and CEO position (currently Mr. O’Grady) and a separate Lead Director (currently Mr. Henderson) who is appointed annually by the Corporation’s independent directors in accordance with the Corporation’s Corporate Governance Guidelines. The Board has determined that combining the positions of Chairman and CEO is most appropriate for the Corporation at this time, as having one person serve as Chairman and CEO provides unified leadership and direction to the Corporation and strengthens the ability of the CEO to develop and implement strategic initiatives and respond effectively in crisis situations. The Board also believes that the desire for independent leadership of the Board is sufficiently achieved by the prominent role of the Lead Director. | |||
Professional Experience ● Northwestern Memorial HealthCare (the primary teaching affiliate of Northwestern University Feinberg School of Medicine and parent corporation of Northwestern Memorial Hospital) ¡ Executive Chairman, 2023 ¡ President and Chief Executive Officer, 2006 to 2022 Qualifications The Board concluded that Mr. Harrison should serve as a director based on his extensive experience leading a large, complex organization in a highly regulated industry, including his risk oversight experience. | |||
David W. Fox, Jr., who had most recently served as President, Global Family & Private Investment Offices, became Chief Financial Officer. | |||
Professional Experience ● Russell Reynolds Associates (global executive recruiting firm) ¡ Vice Chairman of Board and CEO Advisory Group, since 2020 ¡ Managing Director, since 1989 Qualifications The Board concluded that Mr. Tribbett should serve as a director based on his global leadership consulting experience evaluating and identifying senior management professionals and his leadership experience at Russell Reynolds Associates. |
Name and Principal Position |
Year |
Salary ($) |
Bonus ($) |
Stock Awards ($) |
Non-Equity Incentive Plan Compensation ($) |
Change in Pension Value and Nonqualified Deferred Compensation Earnings ($) |
All Other Compensation ($) |
Total ($) |
||||||||||||||||||||||||||||||||
Michael G. O’Grady
Chairman and
|
2024 | $ | 1,000,000 | $ | — | $ | 7,700,038 | $ | 2,050,000 | $ | 137,067 | $ | 42,681 | $ | 10,929,786 | |||||||||||||||||||||||||
2023 | 1,000,000 | — | 8,500,150 | 500,000 | 138,719 | 35,891 | 10,174,760 | |||||||||||||||||||||||||||||||||
2022 | 987,500 | — | 8,500,158 | 1,000,000 | 289,639 | 39,342 | 10,816,639 | |||||||||||||||||||||||||||||||||
David W. Fox, Jr. Chief Financial Officer |
2024 | 560,000 | — | 726,040 | 657,000 | 58,567 | 15,655 | 2,017,262 | ||||||||||||||||||||||||||||||||
|
|
|
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
|
|
|
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Jason J. Tyler President, Wealth Management (Former Chief Financial Officer) |
2024 | 600,000 | — | 2,310,100 | 1,020,000 | 152,407 | 18,976 | 4,101,483 | ||||||||||||||||||||||||||||||||
2023 | 600,000 | — | 2,520,087 | 990,000 | 155,469 | 18,383 | 4,283,939 | |||||||||||||||||||||||||||||||||
2022 | 587,500 | — | 2,520,081 | 1,080,000 | 141,988 | 18,539 | 4,348,108 | |||||||||||||||||||||||||||||||||
Peter B. Cherecwich Chief Operating Officer |
2024 | 675,000 | — | 2,677,594 | 1,072,500 | 120,460 | 26,937 | 4,572,491 | ||||||||||||||||||||||||||||||||
2023 | 675,000 | — | 3,080,055 | 1,147,500 | 174,409 | 24,038 | 5,101,002 | |||||||||||||||||||||||||||||||||
2022 | 662,500 | — | 3,360,107 | 1,320,000 | 188,623 | 23,480 | 5,554,710 | |||||||||||||||||||||||||||||||||
Steven L. Fradkin Vice Chairman |
2024 | 675,000 | — | 2,677,594 | 1,147,500 | — | 25,117 | 4,525,211 | ||||||||||||||||||||||||||||||||
2023 | 675,000 | — | 3,080,055 | 1,147,500 | 645,057 | 25,575 | 5,573,187 | |||||||||||||||||||||||||||||||||
2022 | 662,500 | — | 3,360,107 | 1,320,000 | — | 26,230 | 5,368,837 | |||||||||||||||||||||||||||||||||
Daniel E. Gamba President, Asset Management |
2024 | 675,000 | — | 2,677,594 | 1,222,500 | 75,306 | 9,284 | 4,659,684 | ||||||||||||||||||||||||||||||||
2023 | 478,125 | — | 4,800,038 | 1,147,500 | 20,986 | 45,393 | 6,492,042 | |||||||||||||||||||||||||||||||||
|
|
|
— | — | — | — | — | — | — |
No Customers Found
Suppliers
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
---|---|---|---|
Parker Teresa | - | 89,450 | 10,227 |
O'Grady Michael | - | 73,590 | 5,460 |
O'Grady Michael | - | 67,941 | 5,460 |
Gamba Daniel | - | 61,848 | 0 |
South Thomas A | - | 54,756 | 3,848 |
Gamba Daniel | - | 54,720 | 0 |
FRADKIN STEVEN L | - | 46,078 | 12,138 |
Tyler Jason J. | - | 41,843 | 0 |
Tyler Jason J. | - | 41,477 | 0 |
Taylor Alexandria | - | 38,500 | 0 |
Tribbett Charles A | - | 36,163 | 1,000 |
Taylor Alexandria | - | 34,509 | 0 |
BYNOE LINDA | - | 32,964 | 0 |
Karpinski Jane | - | 30,271 | 87 |
Gossett Mark C | - | 28,707 | 2,836 |
Thompson Donald | - | 28,620 | 1,743 |
Harrison Dean M | - | 27,128 | 47 |
Bellows Clive | - | 26,666 | 0 |
Cherecwich Peter | - | 26,586 | 6 |
Cherecwich Peter | - | 24,715 | 20,550 |
Prado Becerra Jose Luis | - | 23,327 | 1,946 |
Levy Susan Cohen | - | 22,353 | 12,137 |
Gossett Mark C | - | 21,432 | 2,778 |
CROWN SUSAN | - | 18,400 | 339,696 |
Landers John | - | 7,640 | 0 |
Allnutt Lauren E | - | 5,576 | 0 |
Dhandapani Chandra | - | 2,299 | 0 |
Henderson Jay L | - | 1,902 | 16,416 |
SMITH DAVID BYRON JR | - | 1,902 | 1,037,680 |
Petrino Richard | - | 419 | 0 |
Moritz Robert Edward Jr. | - | 255 | 0 |