Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2016shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q1 |
Trading Symbol | NTRS |
Entity Registrant Name | NORTHERN TRUST CORP |
Entity Central Index Key | 73,124 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 228,163,712 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and Due from Banks | $ 7,005 | $ 6,444.6 |
Federal Funds Sold and Securities Purchased under Agreements to Resell | 1,765.2 | 1,614.2 |
Interest-Bearing Deposits with Banks | 13,535.5 | 14,143.1 |
Federal Reserve Deposits | 14,415.3 | 16,398.5 |
Securities | ||
Fair Value | 33,330.2 | 32,317.9 |
Held to Maturity (Fair value of $5,861.5 and $5,227.5) | 5,869.6 | 5,248.3 |
Trading Account | 0.2 | 1.2 |
Total Securities | 39,200 | 37,567.4 |
Loans and Leases | ||
Total Loans and Leases (Net of unearned income of $93.4 and $103.6) | 34,144.9 | 33,180.9 |
Allowance for Credit Losses Assigned to Loans and Leases | (195.6) | (193.8) |
Buildings and Equipment | 437.8 | 446.9 |
Client Security Settlement Receivables | 1,902.7 | 2,157 |
Goodwill | 523.6 | 526.4 |
Other Assets | 5,064.4 | 4,464.4 |
Total Assets | 117,798.8 | 116,749.6 |
Deposits | ||
Demand and Other Noninterest-Bearing | 22,721.8 | 23,435.5 |
Savings and Money Market | 14,956 | 15,035.9 |
Savings Certificates and Other Time | 1,417 | 1,455.8 |
Non U.S. Offices — Noninterest-Bearing | 7,817.4 | 6,719.9 |
Non U.S. Offices - Interest-Bearing | 50,747.4 | 50,221.8 |
Total Deposits | 97,659.6 | 96,868.9 |
Federal Funds Purchased | 263.3 | 351.5 |
Securities Sold Under Agreements to Repurchase | 507.1 | 546.6 |
Other Borrowings | 4,009.8 | 4,055.1 |
Senior Notes | 1,496.1 | 1,497.4 |
Long-Term Debt | 1,406.2 | 1,371.3 |
Floating Rate Capital Debt | 277.3 | 277.3 |
Other Liabilities | 3,346.6 | 3,075.6 |
Total Liabilities | 108,966 | 108,043.7 |
Stockholders' Equity | ||
Preferred Stock, No Par Value; Authorized 10,000,000 shares: Series C, outstanding shares of 16,000 | 388.5 | 388.5 |
Common Stock, $1.66 2/3 Par Value; Authorized 560,000,000 shares; Outstanding shares of 000,000,000 and 229,293,783 | 408.6 | 408.6 |
Additional Paid-In Capital | 1,022.1 | 1,072.3 |
Retained Earnings | 8,394.8 | 8,242.8 |
Accumulated Other Comprehensive Loss | (283.9) | (372.7) |
Treasury Stock (17,007,812 and 15,877,741 shares, at cost) | (1,097.3) | (1,033.6) |
Total Stockholders’ Equity | 8,832.8 | 8,705.9 |
Total Liabilities and Stockholders’ Equity | 117,798.8 | 116,749.6 |
Commercial | ||
Loans and Leases | ||
Total Loans and Leases (Net of unearned income of $93.4 and $103.6) | 16,240.1 | 15,156.5 |
Personal | ||
Loans and Leases | ||
Total Loans and Leases (Net of unearned income of $93.4 and $103.6) | $ 17,904.8 | $ 18,024.4 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Held to Maturity, Fair value | $ 5,861.5 | $ 5,227.5 |
Total Loans and Leases, unearned income | $ 93.4 | $ 103.6 |
Preferred Stock, Par Value (in dollars per share) | $ 0 | $ 0 |
Preferred Stock, Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Outstanding | 16,000 | 16,000 |
Common Stock, Par Value (in dollars per share) | $ 1.6667 | $ 1.6667 |
Common Stock, Authorized | 560,000,000 | 560,000,000 |
Common Stock, Outstanding | 228,163,712 | 229,293,783 |
Treasury Stock, shares | 17,007,812 | 15,877,741 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Noninterest Income | ||
Trust, Investment and Other Servicing Fees | $ 748.2 | $ 727.5 |
Foreign Exchange Trading Income | 60.5 | 71.6 |
Treasury Management Fees | 16.2 | 16.3 |
Security Commissions and Trading Income | 18.9 | 19.8 |
Other Operating Income | 38.1 | 38.6 |
Investment Security Gains, net (Note) | 0.3 | 0.1 |
Total Noninterest Income | 882.2 | 873.9 |
Net Interest Income | ||
Interest Income | 352 | 298.8 |
Interest Expense | 44.2 | 38.2 |
Net Interest Income | 307.8 | 260.6 |
Provision for Credit Losses | 2 | (4.5) |
Net Interest Income after Provision for Credit Losses | 305.8 | 265.1 |
Noninterest Expense | ||
Compensation | 378.8 | 354.3 |
Employee Benefits | 70.6 | 72.9 |
Outside Services | 149.9 | 135.1 |
Equipment and Software | 114.2 | 110.3 |
Occupancy | 40.9 | 43 |
Other Operating Expense | 74.4 | 73.4 |
Total Noninterest Expense | 828.8 | 789 |
Income before Income Taxes | 359.2 | 350 |
Provision for Income Taxes | 117.4 | 119.3 |
Net Income | 241.8 | 230.7 |
Preferred Stock Dividends | 5.9 | 5.9 |
Net Income Applicable to Common Stock | $ 235.9 | $ 224.8 |
Per Common Share | ||
Net Income — Basic (in dollars per share) | $ 1.01 | $ 0.95 |
Net Income - Diluted (in dollars per share) | $ 1.01 | $ 0.94 |
Average Number of Common Shares Outstanding — Basic | 228,619,089 | 233,381,168 |
Average Number of Common Shares Outstanding - Diluted | 229,979,690 | 235,288,695 |
Note: Changes in Other-Than-Temporary-Impairment (OTTI) Losses | $ 0 | $ 0 |
Noncredit-related OTTI Losses Recorded in/(Reclassified from) OCI | 0 | 0 |
Other Security Gains, net | 0.3 | 0.1 |
Investment Security Gains, net | $ 0.3 | $ 0.1 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 241.8 | $ 230.7 |
Other Comprehensive Income (Loss) (Net of Tax and Reclassifications) | ||
Net Unrealized Gains (Losses) on Securities Available for Sale | 74.7 | 54.1 |
Net Unrealized Gains (Losses) on Cash Flow Hedges | 6.1 | (1.1) |
Foreign Currency Translation Adjustments | 3.9 | (5.9) |
Pension and Other Postretirement Benefit Adjustments | 4.1 | 6.2 |
Other Comprehensive Income (Loss) | 88.8 | 53.3 |
Comprehensive Income | $ 330.6 | $ 284 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning balance at Dec. 31, 2014 | $ 388.5 | $ 408.6 | $ 1,050.9 | $ 7,625.4 | $ (319.7) | $ (704.8) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock Options and Awards | (60.1) | 92.3 | |||||
Stock Options and Awards — Amortization | 23.4 | ||||||
Stock Options and Awards — Tax Benefit | 10.7 | ||||||
Net Income | $ 230.7 | 230.7 | |||||
Dividends Declared — Common Stock | (78.5) | ||||||
Dividends Declared — Preferred Stock | (5.9) | ||||||
Net Unrealized Gains (Losses) on Securities Available for Sale | 54.1 | 54.1 | |||||
Net Unrealized Gains (Losses) on Cash Flow Hedges | (1.1) | (1.1) | |||||
Foreign Currency Translation Adjustments | (5.9) | (5.9) | |||||
Pension and Other Postretirement Benefit Adjustments | 6.2 | 6.2 | |||||
Stock Purchased | (107.2) | ||||||
Ending balance at Mar. 31, 2015 | 8,607.6 | 408.6 | 1,024.9 | 7,771.7 | (266.4) | (719.7) | |
Beginning balance at Dec. 31, 2015 | 8,705.9 | $ 388.5 | 408.6 | 1,072.2 | 8,242.8 | (372.7) | (1,033.6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock Options and Awards | (71.2) | 76.6 | |||||
Stock Options and Awards — Amortization | 26.4 | ||||||
Stock Options and Awards — Tax Benefit | (5.3) | ||||||
Net Income | 241.8 | 241.8 | |||||
Dividends Declared — Common Stock | (83.9) | ||||||
Dividends Declared — Preferred Stock | (5.9) | ||||||
Net Unrealized Gains (Losses) on Securities Available for Sale | 74.7 | 74.7 | |||||
Net Unrealized Gains (Losses) on Cash Flow Hedges | 6.1 | 6.1 | |||||
Foreign Currency Translation Adjustments | 3.9 | 3.9 | |||||
Pension and Other Postretirement Benefit Adjustments | 4.1 | 4.1 | |||||
Stock Purchased | (140.3) | (140.3) | |||||
Ending balance at Mar. 31, 2016 | $ 8,832.8 | $ 408.6 | $ 1,022.1 | $ 8,394.8 | $ (283.9) | $ (1,097.3) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash Flows from Operating Activities: | ||
Net Income | $ 241.8 | $ 230.7 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Investment Security Gains, net | (0.3) | (0.1) |
Amortization and Accretion of Securities and Unearned Income, net | 12.5 | 10.7 |
Provision for Credit Losses | 2 | (4.5) |
Depreciation on Buildings and Equipment | 22.4 | 23.1 |
Pension Plan Contributions | (9.1) | (16.5) |
Change in Receivables | (95.4) | 50.3 |
Change in Interest Payable | 2.3 | (6.2) |
Change in Collateral With Derivative Counterparties, net | (200.1) | 289.5 |
Other Operating Activities, net | (343.1) | (151.5) |
Net Cash (Used in) Provided by Operating Activities | (299.1) | 490.8 |
Cash Flows from Investing Activities: | ||
Net Change in Federal Funds Sold and Securities Purchased under Agreements to Resell | (143.9) | (51.2) |
Change in Interest-Bearing Deposits with Banks | 716.7 | (1,242.6) |
Net Change in Federal Reserve Deposits | 1,983.2 | 8,582.1 |
Purchases of Securities — Held to Maturity | (1,287.7) | (2,101.1) |
Proceeds from Maturity and Redemption of Securities — Held to Maturity | 726.3 | 278.4 |
Purchases of Securities — Available for Sale | (3,285.2) | (2,992.5) |
Proceeds from Sale, Maturity and Redemption of Securities — Available for Sale | 2,416.6 | 1,686.8 |
Change in Loans and Leases | (950.6) | (1,004.2) |
Purchases of Buildings and Equipment | (12) | (25.5) |
Purchases and Development of Computer Software | (65) | (68.4) |
Change in Client Security Settlement Receivables | 261 | (660.7) |
Other Investing Activities, net | 293.8 | 404.8 |
Net Cash Provided by Investing Activities | 653.2 | 2,805.9 |
Cash Flows from Financing Activities: | ||
Change in Deposits | 388.6 | (2,817.7) |
Change in Federal Funds Purchased | (88.2) | (522.2) |
Change in Securities Sold under Agreements to Repurchase | (39.5) | (271.9) |
Change in Short-Term Other Borrowings | (27.1) | 1,064.2 |
Repayments of Senior Notes and Long-Term Debt | (1.4) | (230.1) |
Treasury Stock Purchased | (140.3) | (107.2) |
Net Proceeds from Stock Options | 5.3 | 32.2 |
Cash Dividends Paid on Common Stock | (82.8) | (77) |
Cash Dividends Paid on Preferred Stock | (5.9) | (9.5) |
Other Financing Activities, net | (5.3) | 747.9 |
Net Cash Provided by (Used in) Financing Activities | 3.4 | (2,191.3) |
Effect of Foreign Currency Exchange Rates on Cash | 202.9 | (81.2) |
Increase in Cash and Due from Banks | 560.4 | 1,024.2 |
Cash and Due from Banks at Beginning of Year | 6,444.6 | 3,050.6 |
Cash and Due from Banks at End of Period | 7,005 | 4,074.8 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest Paid | 41.8 | 44.9 |
Income Taxes Paid | 215 | 40.5 |
Transfers from Loans to OREO | 4.6 | 4.6 |
Computer Software | ||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Amortization of Intangibles | 65.8 | 60.7 |
Other Intangible Assets | ||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Amortization of Intangibles | $ 2.1 | $ 4.6 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation — The consolidated financial statements include the accounts of Northern Trust Corporation (the Corporation) and its wholly-owned subsidiary, The Northern Trust Company (the Bank), and various other wholly-owned subsidiaries of the Corporation and the Bank. Throughout the notes, the term “Northern Trust” refers to the Corporation and its subsidiaries. Intercompany balances and transactions have been eliminated. The consolidated financial statements, as of and for the periods ended March 31, 2016 and 2015 , have not been audited by the Corporation’s independent registered public accounting firm. In the opinion of management, all accounting entries and adjustments, including normal recurring accruals, necessary for a fair presentation of the financial position and the results of operations for the interim periods have been made. The accounting and financial reporting policies of Northern Trust conform to U.S. generally accepted accounting principles (GAAP) and reporting practices prescribed by the banking industry. For a description of Northern Trust’s significant accounting policies, refer to Note 1 of the Notes to Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2015 . |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements — In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (ASU 2014-09). ASU 2014-09 is a converged standard between the FASB and the International Accounting Standards Board (IASB) that provides a single comprehensive revenue recognition model for all contracts with customers across transactions and industries. The primary objective of ASU 2014-09 is revenue recognition that represents the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for interim and annual reporting periods beginning after December 15, 2017. Northern Trust is currently assessing the impact of adoption of ASU 2014-09. In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (ASU 2016-01). ASU 2016-01 requires equity investments (except those accounted for under the equity method or those that result in consolidation) to be measured at fair value with changes in fair value recognized in net income unless a policy election is made for investments without readily determinable fair values. Additionally, ASU 2016-01 requires public entities to use the exit price notion when measuring the fair value of financial instruments for measurement purposes and eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost on the balance sheet. Furthermore, it requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. ASU 2016-01 is effective for interim and annual periods beginning after December 15, 2017. Northern Trust is currently assessing the impact of adoption of ASU 2016-01. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (ASU 2016-02). ASU 2016-02 introduces a lessee model that brings most leases on the balance sheet, with certain specified scope exceptions. Specifically within the lessee model under ASU 2016-02, a lessee is required to recognize in the statement of financial position a liability to make lease payments, known as the lease liability, and a right-of-use asset representing its right to use the underlying asset over the lease term. While ASU 2016-02 retains a distinction between finance and operating leases similar to current GAAP, it eliminates the required use of bright-line tests for determining the lease classification. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018, although early adoption is permitted. Northern Trust is currently assessing the impact of adoption of ASU 2016-02. In March 2016, the FASB issued ASU No. 2016-05, “Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships” (ASU 2016-05). ASU 2016-05 clarifies that a change in counterparty to a derivative instrument that has been designated as a hedging instrument under Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU 2016-05 is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. Although Northern Trust is currently assessing the impact of ASU 2016-05, it is not expected to impact significantly Northern Trust’s consolidated financial position or results of operations. In March 2016, the FASB issued ASU No. 2016-06, “Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments” (ASU 2016-06). The amendments in ASU 2016-06 clarify the steps that are required when assessing whether the economic characteristics and risks of call or put options are clearly and closely related to the economic characteristics and risks of their debt hosts. When a call or put option is contingently exercisable, an entity does not have to assess whether the event that triggers the ability to exercise a call or put option is related to interest rates or credit risks. ASU 2016-06 is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. The adoption of ASU 2016-06 by Northern Trust, effective January 1, 2017, is not expected to impact significantly Northern Trust’s consolidated financial position or results of operations. In March 2016, the FASB issued ASU No. 2016-07, “Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting” (ASU 2016-07). ASU 2016-07 eliminates the requirement to adjust the investment, results of operations, and retained earnings on a retroactive basis when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence. ASU 2016-07 provides that, upon qualifying for the equity method of accounting, the equity method investor is required to add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest. ASU 2016-07 is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. Although Northern Trust is currently assessing the impact of ASU 2016-07, it is not expected to impact significantly Northern Trust’s consolidated financial position or results of operations. In March 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718)” (ASU 2016-09). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. Northern Trust is currently assessing the impact of adoption of ASU 2016-09. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements — Fair Value Hierarchy. The following describes the hierarchy of valuation inputs (Levels 1, 2, and 3) used to measure fair value and the primary valuation methodologies used by Northern Trust for financial instruments measured at fair value on a recurring basis. Observable inputs reflect market data obtained from sources independent of the reporting entity; unobservable inputs reflect the entity’s own assumptions about how market participants would value an asset or liability based on the best information available. GAAP requires an entity measuring fair value to maximize the use of observable inputs and minimize the use of unobservable inputs and establishes a fair value hierarchy of inputs. Financial instruments are categorized within the hierarchy based on the lowest level input that is significant to their valuation. Northern Trust’s policy is to recognize transfers into and transfers out of fair value levels as of the end of the reporting period in which the transfer occurred. No transfers between fair value levels occurred during the three months ended March 31, 2016 or the year ended December 31, 2015 . Level 1 — Quoted, active market prices for identical assets or liabilities. Northern Trust’s Level 1 assets are comprised of available for sale investments in U.S. treasury securities. Level 2 — Observable inputs other than Level 1 prices, such as quoted active market prices for similar assets or liabilities, quoted prices for identical or similar assets in inactive markets, and model-derived valuations in which all significant inputs are observable in active markets. Northern Trust’s Level 2 assets include available for sale and trading account securities, the fair values of which are determined predominantly by external pricing vendors. Prices received from vendors are compared to other vendor and third-party prices. If a security price obtained from a pricing vendor is determined to exceed pre-determined tolerance levels that are assigned based on an asset type’s characteristics, the exception is researched and, if the price is not able to be validated, an alternate pricing vendor is utilized, consistent with Northern Trust’s pricing source hierarchy. As of March 31, 2016 , Northern Trust’s available for sale securities portfolio included 1,154 Level 2 securities with an aggregate market value of $26.5 billion . Of those, 1,152 securities, with an aggregate market value of $26.5 billion , were valued by external pricing vendors. The remaining 2 securities, with an aggregate market value of $2.1 million , were valued consistent with prices of similar securities as there were no vendor prices available for these securities. As of December 31, 2015 , Northern Trust’s available for sale securities portfolio included 1,044 Level 2 securities with an aggregate market value of $26.1 billion . All 1,044 securities were valued by external pricing vendors. Trading account securities, which totaled $0.2 million and $1.2 million as of March 31, 2016 and December 31, 2015 , respectively, were all valued using external pricing vendors. Northern Trust has established processes and procedures to assess the suitability of valuation methodologies used by external pricing vendors, including reviews of valuation techniques and assumptions used for selected securities. Quality control reviews of prices received from vendors are conducted on a daily basis, which include comparisons to prices on similar security types received from multiple pricing vendors and to the previous day’s reported prices for each security. Predetermined tolerance level exceptions are researched and may result in additional validation through available market information or the use of an alternate pricing vendor. Quarterly, Northern Trust reviews documentation from third-party pricing vendors regarding the valuation processes and assumptions used in their valuations and assesses whether the fair value levels assigned by Northern Trust to each security classification are appropriate. Annually, valuation inputs used within third-party pricing vendor valuations are reviewed for propriety on a sample basis through a comparison of inputs used to comparable market data, including security classifications that are less actively traded and security classifications comprising significant portions of the portfolio. Level 2 assets and liabilities also include derivative contracts which are valued internally using widely accepted income-based models that incorporate inputs readily observable in actively quoted markets and reflect the contractual terms of the contracts. Observable inputs include foreign exchange rates and interest rates for foreign exchange contracts; interest rates for interest rate swap contracts and forward contracts; and interest rates and volatility inputs for interest rate option contracts. Northern Trust evaluates the impact of counterparty credit risk and its own credit risk on the valuation of its derivative instruments. Factors considered include the likelihood of default by Northern Trust and its counterparties, the remaining maturities of the instruments, net exposures after giving effect to master netting arrangements or similar agreements, available collateral, and other credit enhancements in determining the appropriate fair value of derivative instruments. The resulting valuation adjustments have not been considered material. Level 3 — Valuation techniques in which one or more significant inputs are unobservable in the marketplace. Northern Trust’s Level 3 assets consist of auction rate securities purchased in 2008 from Northern Trust clients. To estimate the fair value of auction rate securities, for which trading is limited and market prices are generally unavailable, Northern Trust developed and maintains a pricing model that discounts estimated cash flows over their estimated remaining lives. Significant inputs to the model include the contractual terms of the securities, credit risk ratings, discount rates, forward interest rates, credit/liquidity spreads, and Northern Trust’s own assumptions about the estimated remaining lives of the securities. The significant unobservable inputs used in the fair value measurement are Northern Trust’s own assumptions about the estimated remaining lives of the securities and the applicable discount rates. Significant increases (decreases) in the estimated remaining lives or the discount rates in isolation would result in a significantly lower (higher) fair value measurement. Northern Trust’s Level 3 liabilities consist of a swap that Northern Trust entered into with the purchaser of 1.0 million shares of Visa Inc. Class B common stock (Visa Class B common shares) previously held by Northern Trust and sold in June 2015. Pursuant to the swap, Northern Trust retains the risks associated with the ultimate conversion of the Visa Class B common shares into shares of Visa Inc. Class A common stock (Visa Class A common shares), such that the counterparty will be compensated for any dilutive adjustments to the conversion ratio and Northern Trust will be compensated for any anti-dilutive adjustments to the ratio. The swap also requires periodic payments from Northern Trust to the counterparty calculated by reference to the market price of Visa Class A common shares and a fixed rate of interest. The fair value of the swap is determined using a discounted cash flow methodology. The significant unobservable inputs used in the fair value measurement are Northern Trust’s own assumptions about estimated changes in the conversion rate of the Visa Class B common shares into Visa Class A common shares, the date on which such conversion is expected to occur and the estimated growth rate of the Visa Class A common share price. See “Visa Class B Common Shares” under Note 19 — Contingent Liabilities for further information. Northern Trust believes its valuation methods for its assets and liabilities carried at fair value are appropriate; however, the use of different methodologies or assumptions, particularly as applied to Level 3 assets and liabilities, could have a material effect on the computation of their estimated fair values. Management of various businesses and departments of Northern Trust (including Corporate Market Risk, Credit Risk Management, Corporate Financial Management, Corporate & Institutional Services (C&IS) and Wealth Management) determine the valuation policies and procedures for Level 3 assets and liabilities. Generally, valuation policies are reviewed by management of each business or department. Fair value measurements are performed upon acquisition of an asset or liability. As necessary, the valuation models are reviewed by management of the appropriate business or department, and adjusted for changes in inputs. Management of each business or department reviews the inputs in order to substantiate the unobservable inputs used in each fair value measurement. When appropriate, management reviews forecasts used in the valuation process in light of other relevant financial projections to understand any variances between current and previous fair value measurements. In certain circumstances, third-party information is used to support the fair value measurements. If certain third-party information seems inconsistent with consensus views, a review of the information is performed by management of the respective business or department to conclude as to the appropriate fair value of the asset or liability. The following presents the fair values of, and the valuation techniques, significant unobservable inputs, and quantitative information used to develop significant unobservable inputs for, Northern Trust’s Level 3 assets and liabilities as of March 31, 2016 and December 31, 2015 . Table 22: Level 3 Significant Unobservable Inputs March 31, 2016 Financial Instrument Fair Value Valuation Technique Unobservable Inputs Range of Lives and Rates Auction Rate Securities $ 16.6 million Discounted Cash Flow Remaining lives 0.17 — 8.64 years Discount rates 0.2 % — 3.9% Swap Related to Sale of Certain Visa Class B Common Shares $ 9.7 million Discounted Cash Flow Visa Class A Appreciation 9.5 % — 15.0% Conversion Rate 1.61x — 1.65x Expected Duration 1.25 — 4.25 years December 31, 2015 Financial Instrument Fair Value Valuation Technique Unobservable Inputs Range of Lives and Rates Auction Rate Securities $ 17.1 million Discounted Cash Flow Remaining lives 0.42 — 8.64 years Discount rates 0.3 % — 4.4% Swap Related to Sale of Certain Visa Class B Common Shares $ 10.8 million Discounted Cash Flow Visa Class A Appreciation 9.5 % — 15.0% Conversion Rate 1.61x — 1.65x Expected Duration 1.50 — 4.50 years The following tables present assets and liabilities measured at fair value on a recurring basis as of March 31, 2016 and December 31, 2015 , segregated by fair value hierarchy level. Table 23: Recurring Basis Hierarchy Leveling (In Millions) Level 1 Level 2 Level 3 Netting Assets/Liabilities at Fair Value March 31, 2016 Securities Available for Sale U.S. Government $ 6,857.1 $ — $ — $ — $ 6,857.1 Obligations of States and Political Subdivisions — 189.8 — — 189.8 Government Sponsored Agency — 16,892.6 — — 16,892.6 Non-U.S. Government — 280.7 — — 280.7 Corporate Debt — 3,857.8 — — 3,857.8 Covered Bonds — 1,374.8 — — 1,374.8 Sub-Sovereign, Supranational and Non-U.S. Agency Bonds — 1,070.2 — — 1,070.2 Other Asset-Backed — 2,300.1 — — 2,300.1 Auction Rate — — 16.6 — 16.6 Commercial Mortgage-Backed — 406.9 — — 406.9 Other — 83.6 — — 83.6 Total Available for Sale 6,857.1 26,456.5 16.6 — 33,330.2 Trading Account — 0.2 — — 0.2 Total Available for Sale and Trading Securities 6,857.1 26,456.7 16.6 — 33,330.4 Other Assets Derivative Assets Foreign Exchange Contracts — 3,952.6 — — 3,952.6 Interest Rate Contracts — 334.0 — — 334.0 Total Derivative Assets — 4,286.6 — (2,556.5 ) 1,730.1 Other Liabilities Derivative Liabilities Foreign Exchange Contracts — 4,028.4 — — 4,028.4 Interest Rate Contracts — 215.1 — — 215.1 Other Financial Derivatives (1) — 0.7 9.7 — 10.4 Total Derivative Liabilities $ — $ 4,244.2 $ 9.7 $ (2,916.0 ) $ 1,337.9 Note: Northern Trust has elected to net derivative assets and liabilities when legally enforceable master netting arrangements or similar agreements exist between Northern Trust and the counterparty. As of March 31, 2016 , derivative assets and liabilities shown above also include reductions of $871.9 million and $1.2 billion , respectively, as a result of cash collateral received from and deposited with derivative counterparties. (1) This line includes a swap related to the sale of certain Visa Class B common shares, total return swap contracts, and credit default swap contracts. (In Millions) Level 1 Level 2 Level 3 Netting Assets/Liabilities at Fair Value December 31, 2015 Securities Available for Sale U.S. Government $ 6,178.3 $ — $ — $ — $ 6,178.3 Obligations of States and Political Subdivisions — 36.4 — — 36.4 Government Sponsored Agency — 16,366.8 — — 16,366.8 Non-U.S. Government — 309.5 — — 309.5 Corporate Debt — 3,712.2 — — 3,712.2 Covered Bonds — 1,870.2 — — 1,870.2 Sub-Sovereign, Supranational and Non-U.S. Agency Bonds — 859.4 — — 859.4 Other Asset-Backed — 2,500.1 — — 2,500.1 Auction Rate — — 17.1 — 17.1 Commercial Mortgage-Backed 374.4 374.4 Other — 93.5 — — 93.5 Total Available for Sale 6,178.3 26,122.5 17.1 — 32,317.9 Trading Account — 1.2 — — 1.2 Total Available for Sale and Trading Securities 6,178.3 26,123.7 17.1 — 32,319.1 Other Assets Derivative Assets Foreign Exchange Contracts — 2,623.4 — — 2,623.4 Interest Rate Contracts — 228.5 — — 228.5 Total Derivative Assets — 2,851.9 — (1,600.2 ) 1,251.7 Other Liabilities Derivative Liabilities Foreign Exchange Contracts — 2,519.4 — — 2,519.4 Interest Rate Contracts — 131.2 — — 131.2 Other Financial Derivatives (1) $ — $ 0.1 $ 10.8 $ — 10.9 Total Derivative Liabilities $ — $ 2,650.7 $ 10.8 $ (1,717.6 ) $ 943.9 Note: Northern Trust has elected to net derivative assets and liabilities when legally enforceable master netting arrangements or similar agreements exist between Northern Trust and the counterparty. As of December 31, 2015 , derivative assets and liabilities shown above also include reductions of $322.8 million and $440.3 million , respectively, as a result of cash collateral received from and deposited with derivative counterparties. (1) This line includes a swap related to the sale of certain Visa Class B common shares and total return swap contracts. The following tables present the changes in Level 3 assets and liabilities for the three months ended March 31, 2016 and 2015 . Table 24: Changes in Level 3 Assets Level 3 Assets (In Millions) Auction Rate Securities Three Months Ended March 31, 2016 2015 Fair Value at January 1 $ 17.1 $ 18.1 Total Gains (Losses): Included in Earnings — — Included in Other Comprehensive Income (1) (0.4 ) (0.3 ) Purchases, Issues, Sales, and Settlements Sales (0.1 ) — Settlements — (0.3 ) Fair Value at March 31 $ 16.6 $ 17.5 (1) Unrealized gains (losses) are included in net unrealized gains (losses) on securities available for sale in the consolidated statements of comprehensive income. Table 25: Changes in Level 3 Liabilities Level 3 Liabilities (In Millions) Swap Related to Sale of Certain Visa Class B Common Shares Three Months Ended March 31, 2016 2015 Fair Value at January 1 $ 10.8 $ — Total (Gains) Losses: Included in Earnings (1) (0.3 ) — Included in Other Comprehensive Income — — Purchases, Issues, Sales, and Settlements Purchases — — Settlements (0.8 ) — Fair Value at March 31 $ 9.7 $ — (1) (Gains) losses are recorded in other operating income (expense) in the consolidated statements of income. During the three months ended March 31, 2016 and 2015 , there were no transfers into or out of Level 3 assets or liabilities. Carrying values of assets and liabilities that are not measured at fair value on a recurring basis may be adjusted to fair value in periods subsequent to their initial recognition, for example, to record an impairment of an asset. GAAP requires entities to disclose separately these subsequent fair value measurements and to classify them under the fair value hierarchy. Assets measured at fair value on a nonrecurring basis at March 31, 2016 and 2015 , all of which were categorized as Level 3 under the fair value hierarchy, were comprised of impaired loans whose values were based on real estate and other available collateral, and of other real estate owned (OREO) properties. Fair values of real-estate loan collateral were estimated using a market approach typically supported by third-party valuations and property-specific fees and taxes, and were subject to adjustments to reflect management’s judgment as to realizable value. Other loan collateral, which typically consists of accounts receivable, inventory and equipment, is valued using a market approach adjusted for asset-specific characteristics and in limited instances third-party valuations are used. OREO assets are carried at the lower of cost or fair value less estimated costs to sell, with fair value typically based on third-party appraisals. Collateral-based impaired loans and OREO assets that have been adjusted to fair value totaled $10.1 million and $2.5 million , respectively, at March 31, 2016 , and $23.1 million and $0.3 million , respectively, at March 31, 2015 . Assets measured at fair value on a nonrecurring basis reflect management’s judgment as to realizable value. The following table provides the fair value of, and the valuation technique, significant unobservable inputs and quantitative information used to develop the significant unobservable inputs for, Northern Trust’s Level 3 assets that were measured at fair value on a nonrecurring basis as of March 31, 2016 and December 31, 2015 . Table 26: Level 3 Nonrecurring Basis Significant Unobservable Inputs March 31, 2016 Financial Instrument Fair Value Valuation Technique Unobservable Input Range of Discounts Applied Loans $10.1 million Market Approach Discount to reflect realizable value 15.0 % - 25.0% OREO $2.5 million Market Approach Discount to reflect realizable value 15.0 % - 20.0% December 31, 2015 Financial Instrument Fair Value Valuation Technique Unobservable Input Range of Discounts Applied Loans $10.4 million Market Approach Discount to reflect realizable value 15.0 % - 25.0% OREO $3.6 million Market Approach Discount to reflect realizable value 15.0 % - 20.0% Fair Value of Financial Instruments. GAAP requires disclosure of the estimated fair value of certain financial instruments and the methods and significant assumptions used to estimate fair value. It excludes from this requirement nonfinancial assets and liabilities, as well as a wide range of franchise, relationship and intangible values that add value to Northern Trust. Accordingly, the required fair value disclosures provide only a partial estimate of the fair value of Northern Trust. Financial instruments recorded at fair value in Northern Trust’s consolidated balance sheets are discussed above. The following methods and assumptions were used in estimating the fair values of financial instruments that are not carried at fair value. Held to Maturity Securities. The fair values of held to maturity securities, excluding U.S. treasury securities, were obtained from external pricing vendors, or in limited cases internally, using widely accepted models which are based on an income approach (discounted cash flow) that incorporates current market yield curves. The fair values of U.S. treasury securities were determined using quoted, active market prices for identical securities. Loans (excluding lease receivables). The fair value of the loan portfolio was estimated using an income approach (discounted cash flow) that incorporates current market rates offered by Northern Trust as of the date of the consolidated financial statements. The fair values of all loans were adjusted to reflect current assessments of loan collectability. Loans held for sale are recorded at the lower of cost or fair value. Federal Reserve and Federal Home Loan Bank Stock. The fair values of Federal Reserve and Federal Home Loan Bank stock are equal to their carrying values which represent redemption value. Community Development Investments. The fair values of these instruments were estimated using an income approach (discounted cash flow) that incorporates current market rates. Employee Benefit and Deferred Compensation. These assets include U.S. Treasury securities and investments in mutual and collective trust funds held to fund certain supplemental employee benefit obligations and deferred compensation plans. Fair values of U.S. Treasury securities were determined using quoted, active market prices for identical securities. The fair values of investments in mutual and collective trust funds were valued at the funds’ net asset values based on a market approach. Savings Certificates and Other Time Deposits. The fair values of these instruments were estimated using an income approach (discounted cash flow) that incorporates market interest rates currently offered by Northern Trust for deposits with similar maturities. Senior Notes, Subordinated Debt, and Floating Rate Capital Debt. Fair values were determined using a market approach based on quoted market prices, when available. If quoted market prices were not available, fair values were based on quoted market prices for comparable instruments. Federal Home Loan Bank Borrowings. The fair values of these instruments were estimated using an income approach (discounted cash flow) that incorporates market interest rates available to Northern Trust. Loan Commitments. The fair values of loan commitments represent the estimated costs to terminate or otherwise settle the obligations with a third party adjusted for any related allowance for credit losses. Standby Letters of Credit. The fair values of standby letters of credit are measured as the amount of unamortized fees on these instruments, inclusive of the related allowance for credit losses. Fees are determined by applying basis points to the principal amounts of the letters of credit. Financial Instruments Valued at Carrying Value. Due to their short maturity, the carrying values of certain financial instruments approximated their fair values. These financial instruments include: cash and due from banks; federal funds sold and securities purchased under agreements to resell; interest-bearing deposits with banks; Federal Reserve deposits; client security settlement receivables; non-U.S. offices interest-bearing deposits; federal funds purchased; securities sold under agreements to repurchase; and other borrowings (includes term federal funds purchased and other short-term borrowings). The fair values of demand, noninterest-bearing, savings, and money market deposits represent the amounts payable on demand as of the reporting date, although such deposits are typically priced at a premium in banking industry consolidations. The following tables summarize the fair values of all financial instruments. Table 27: Fair Value of Financial Instruments (In Millions) March 31, 2016 Book Value Total Fair Value Fair Value Level 1 Level 2 Level 3 Assets Cash and Due from Banks $ 7,005.0 $ 7,005.0 $ 7,005.0 $ — $ — Federal Funds Sold and Resell Agreements 1,765.2 1,765.2 — 1,765.2 — Interest-Bearing Deposits with Banks 13,535.5 13,535.5 — 13,535.5 — Federal Reserve Deposits 14,415.3 14,415.3 — 14,415.3 — Securities Available for Sale (Note) 33,330.2 33,330.2 6,857.1 26,456.5 16.6 Held to Maturity 5,869.6 5,861.5 28.0 5,833.5 — Trading Account 0.2 0.2 — 0.2 — Loans (excluding Leases) Held for Investment 33,478.4 33,715.2 — — 33,715.2 Held for Sale 1.4 1.4 — — 1.4 Client Security Settlement Receivables 1,902.7 1,902.7 — 1,902.7 — Other Assets Federal Reserve and Federal Home Loan Bank Stock 253.1 253.1 — 253.1 — Community Development Investments 193.0 199.4 — 199.4 — Employee Benefit and Deferred Compensation 165.4 169.5 117.7 51.8 — Liabilities Deposits Demand, Noninterest-Bearing, Savings and Money Market $ 45,495.2 $ 45,495.2 $ 45,495.2 $ — $ — Savings Certificates and Other Time 1,417.0 1,425.1 — 1,425.1 — Non U.S. Offices Interest-Bearing 50,747.4 50,747.4 — 50,747.4 — Federal Funds Purchased 263.3 263.3 — 263.3 — Securities Sold under Agreements to Repurchase 507.1 507.1 — 507.1 — Other Borrowings 4,009.8 4,009.8 — 4,009.8 — Senior Notes 1,496.1 1,573.3 — 1,573.3 — Long Term Debt (excluding Leases) Subordinated Debt 1,377.9 1,353.6 — 1,353.6 — Floating Rate Capital Debt 277.3 223.5 — 223.5 — Other Liabilities Standby Letters of Credit 45.3 45.3 — — 45.3 Loan Commitments 46.3 46.3 — — 46.3 Derivative Instruments Asset/Liability Management Foreign Exchange Contracts Assets $ 12.3 $ 12.3 $ — $ 12.3 $ — Liabilities 80.2 80.2 — 80.2 — Interest Rate Contracts Assets 158.5 158.5 — 158.5 — Liabilities 42.2 42.2 — 42.2 — Other Financial Derivatives Liabilities (1) 10.4 10.4 — 0.7 9.7 Client-Related and Trading Foreign Exchange Contracts Assets 3,940.3 3,940.3 — 3,940.3 — Liabilities 3,948.2 3,948.2 — 3,948.2 — Interest Rate Contracts Assets 175.5 175.5 — 175.5 — Liabilities 172.9 172.9 — 172.9 — Note: Refer to the table located on page 30 for the disaggregation of available for sale securities. (1) This line includes a swap related to the sale of certain Visa Class B common shares, credit default swaps and total return swaps. (In Millions) December 31, 2015 Book Value Total Fair Value Fair Value Level 1 Level 2 Level 3 Assets Cash and Due from Banks $ 6,444.6 $ 6,444.6 $ 6,444.6 $ — $ — Federal Funds Sold and Resell Agreements 1,614.2 1,614.2 — 1,614.2 — Interest-Bearing Deposits with Banks 14,143.1 14,143.1 — 14,143.1 — Federal Reserve Deposits 16,398.5 16,398.5 — 16,398.5 — Securities Available for Sale (Note) 32,317.9 32,317.9 6,178.3 26,122.5 17.1 Held to Maturity 5,248.3 5,227.5 26.0 5,201.5 — Trading Account 1.2 1.2 — 1.2 — Loans (excluding Leases) Held for Investment 32,432.7 32,596.5 — — 32,596.5 Held for Sale 12.0 12.0 — — 12.0 Client Security Settlement Receivables 2,157.0 2,157.0 — 2,157.0 — Other Assets Federal Reserve and Federal Home Loan Bank Stock 253.1 253.1 — 253.1 — Community Development Investments 173.5 177.1 — 177.1 — Employee Benefit and Deferred Compensation 155.3 153.4 104.2 49.2 — Liabilities Deposits Demand, Noninterest-Bearing, Savings and Money Market $ 45,191.3 $ 45,191.3 $ 45,191.3 $ — $ — Savings Certificates and Other Time 1,455.8 1,463.5 — 1,463.5 — Non U.S. Offices Interest-Bearing 50,221.8 50,221.8 — 50,221.8 — Federal Funds Purchased 351.5 351.5 — 351.5 — Securities Sold under Agreements to Repurchase 546.6 546.6 — 546.6 — Other Borrowings 4,055.1 4,055.7 — 4,055.7 — Senior Notes 1,497.4 1,531.8 — 1,531.8 — Long Term Debt (excluding Leases) Subordinated Debt 1,341.6 1,332.2 — 1,332.2 — Floating Rate Capital Debt 277.3 236.6 — 236.6 — Other Liabilities Standby Letters of Credit 46.6 46.6 — — 46.6 Loan Commitments 48.9 48.9 — — 48.9 Derivative Instruments Asset/Liability Management Foreign Exchange Contracts Assets $ 81.6 $ 81.6 $ — $ 81.6 $ — Liabilities 19.0 19.0 — 19.0 — Interest Rate Contracts Assets 117.4 117.4 — 117.4 — Liabilities 22.7 22.7 — 22.7 — Other Financial Derivatives Liabilities (1) 10.9 10.9 — 0.1 10.8 Client-Related and Trading Foreign Exchange Contracts Assets 2,541.8 2,541.8 — 2,541.8 — Liabilities 2,500.4 2,500.4 — 2,500.4 — Interest Rate Contracts Assets 111.1 111.1 — 111.1 — Liabilities 108.5 108.5 — 108.5 — Note: Refer to the table located on page 31 for the disaggregation of available for sale securities. (1) This line consists of a swap related to the sale of certain Visa Class B common shares and total return swaps. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities — The following tables provide the amortized cost and fair values of securities at March 31, 2016 and December 31, 2015 . Table 28: Reconciliation of Amortized Cost to Fair Value of Securities Available for Sale Securities Available for Sale March 31, 2016 Amortized Cost Gross Unrealized Fair Value (In Millions) Gains Losses U.S. Government $ 6,803.3 $ 53.8 $ — $ 6,857.1 Obligations of States and Political Subdivisions 190.5 0.3 1.0 189.8 Government Sponsored Agency 16,866.1 56.6 30.1 16,892.6 Non-U.S. Government 280.5 0.2 — 280.7 Corporate Debt 3,865.3 10.3 17.8 3,857.8 Covered Bonds 1,377.6 2.1 4.9 1,374.8 Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 1,069.5 2.6 1.9 1,070.2 Other Asset-Backed 2,300.4 1.2 1.5 2,300.1 Auction Rate 16.6 0.5 0.5 16.6 Commercial Mortgage-Backed 406.5 0.7 0.3 406.9 Other 83.6 0.1 0.1 83.6 Total $ 33,259.9 $ 128.4 $ 58.1 $ 33,330.2 Securities Available for Sale December 31, 2015 Amortized Cost Gross Unrealized Fair Value (In Millions) Gains Losses U.S. Government $ 6,180.4 $ 3.4 $ 5.5 $ 6,178.3 Obligations of States and Political Subdivisions 36.4 0.1 0.1 36.4 Government Sponsored Agency 16,370.5 42.8 46.5 16,366.8 Non-U.S. Government 309.5 0.1 0.1 309.5 Corporate Debt 3,744.4 0.9 33.1 3,712.2 Covered Bonds 1,873.3 1.8 4.9 1,870.2 Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 860.9 0.5 2.0 859.4 Other Asset-Backed 2,504.2 0.1 4.2 2,500.1 Auction Rate 16.7 0.5 0.1 17.1 Commercial Mortgage-Backed 378.1 — 3.7 374.4 Other 93.4 0.1 — 93.5 Total $ 32,367.8 $ 50.3 $ 100.2 $ 32,317.9 Table 29: Reconciliation of Amortized Cost to Fair Value of Securities Held to Maturity Securities Held to Maturity March 31, 2016 Amortized Cost Gross Unrealized Fair Value (In Millions) Gains Losses U.S Government $ 28.0 $ — $ — $ 28.0 Obligations of States and Political Subdivisions 79.3 4.9 — 84.2 Government Sponsored Agency 9.2 0.7 — 9.9 Corporate Debt 85.5 0.1 — 85.6 Covered Bonds 1,578.4 5.2 1.6 1,582.0 Non-U.S. Government 1,077.2 6.7 — 1,083.9 Certificates of Deposit 730.5 0.1 0.2 730.4 Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 2,186.8 10.4 0.5 2,196.7 Other 94.7 — 33.9 60.8 Total $ 5,869.6 $ 28.1 $ 36.2 $ 5,861.5 Securities Held to Maturity December 31, 2015 Amortized Cost Gross Unrealized Fair Value (In Millions) Gains Losses U.S Government $ 26.0 $ — $ — $ 26.0 Obligations of States and Political Subdivisions 89.2 5.2 — 94.4 Government Sponsored Agency 9.9 0.7 — 10.6 Covered Bonds 892.4 0.4 1.9 890.9 Non-U.S. Government 1,118.0 4.8 0.5 1,122.3 Certificates of Deposit 691.6 0.1 0.1 691.6 Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 2,326.2 8.3 0.9 2,333.6 Other 95.0 — 36.9 58.1 Total $ 5,248.3 $ 19.5 $ 40.3 $ 5,227.5 Securities held to maturity consist of debt securities that management intends to, and Northern Trust has the ability to, hold until maturity. The following table provides the remaining maturity of securities as of March 31, 2016 . Table 30: Remaining Maturity of Securities Available for Sale and Held to Maturity March 31, 2016 (In Millions) Amortized Cost Fair Value Available for Sale Due in One Year or Less $ 9,795.2 $ 9,807.1 Due After One Year Through Five Years 17,443.3 17,498.9 Due After Five Years Through Ten Years 4,742.3 4,745.1 Due After Ten Years 1,279.1 1,279.1 Total 33,259.9 33,330.2 Held to Maturity Due in One Year or Less 1,979.0 1,982.8 Due After One Year Through Five Years 3,823.7 3,841.9 Due After Five Years Through Ten Years 13.8 11.1 Due After Ten Years 53.1 25.7 Total $ 5,869.6 $ 5,861.5 Note: Mortgage-backed and asset-backed securities are included in the above table taking into account anticipated future prepayments. Investment Security Gains. There were $0.3 million net investment security gains recognized in the three months ended March 31, 2016 . Net investment security gains of $0.1 million were recognized in the three months ended March 31, 2015 . Gross proceeds from the sale of securities during the three months ended March 31, 2016 and 2015 were $513.6 million and $102.0 million , respectively. Securities with Unrealized Losses. The following tables provide information regarding securities that had been in a continuous unrealized loss position for less than twelve months and for twelve months or longer as of March 31, 2016 and December 31, 2015 . Table 31: Securities with Unrealized Losses Securities with Unrealized Losses as of March 31, 2016 Less than 12 Months 12 Months or Longer Total (In Millions) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Obligations of States and Political Subdivisions $ 97.2 $ 1.0 $ — $ — $ 97.2 $ 1.0 Government Sponsored Agency 6,251.9 21.9 1,327.1 8.2 7,579.0 30.1 Corporate Debt 893.3 5.6 1,041.7 12.2 1,935.0 17.8 Covered Bonds 1,054.8 6.5 — — 1,054.8 6.5 Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 578.6 2.3 109.8 0.1 688.4 2.4 Other Asset-Backed 1,383.1 1.4 60.3 0.1 1,443.4 1.5 Certificates of Deposit 314.3 0.2 — — 314.3 0.2 Auction Rate — — 6.0 0.5 6.0 0.5 Commercial Mortgage-Backed 140.5 0.3 — — 140.5 0.3 Other 73.5 12.0 49.6 22.0 123.1 34.0 Total $ 10,787.2 $ 51.2 $ 2,594.5 $ 43.1 $ 13,381.7 $ 94.3 Securities with Unrealized Losses as of December 31, 2015 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 $ 3,888.0 $ 5.5 $ — $ — $ 3,888.0 $ 5.5 Obligations of States and Political Subdivisions 15.1 0.1 — — 15.1 0.1 Government Sponsored Agency 9,208.5 38.7 1,213.6 7.8 10,422.1 46.5 Non-U.S. Government 314.3 0.6 — — 314.3 0.6 Corporate Debt 2,067.6 10.3 1,057.1 22.8 3,124.7 33.1 Covered Bonds 1,598.4 6.7 10.0 0.1 1,608.4 6.8 Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 1,132.9 2.3 109.3 0.6 1,242.2 2.9 Other Asset-Backed 2,122.7 4.0 170.6 0.2 2,293.3 4.2 Certificates of Deposit 180.3 0.1 — — 180.3 0.1 Auction Rate — — 6.4 0.1 6.4 0.1 Commercial Mortgage-Backed 374.4 3.7 — — 374.4 3.7 Other 28.7 13.3 50.7 23.6 79.4 36.9 Total $ 20,930.9 $ 85.3 $ 2,617.7 $ 55.2 $ 23,548.6 $ 140.5 As of March 31, 2016 , 644 securities with a combined fair value of $13.4 billion were in an unrealized loss position, with their unrealized losses totaling $94.3 million . Unrealized losses of $30.1 million related to government sponsored agency securities were primarily attributable to higher market interest rates since purchase. Unrealized losses of $17.8 million within corporate debt securities primarily reflected higher market rates since purchase; 33% of the corporate debt portfolio is backed by guarantees provided by U.S. and non-U.S. governmental entities. The majority of the $34.0 million of unrealized losses in securities classified as “other” at March 31, 2016 , related to securities primarily purchased at a premium or par by Northern Trust for compliance with the CRA. Unrealized losses on these CRA-related securities were attributable to yields that were below market rates for the purpose of supporting institutions and programs that benefit low- to moderate- income communities within Northern Trust’s market area. Unrealized losses of $0.5 million related to auction rate securities primarily reflected reduced market liquidity as a majority of auctions continued to fail, preventing holders from liquidating their investments at par. The remaining unrealized losses on Northern Trust’s securities portfolio as of March 31, 2016 , were attributable to changes in overall market interest rates, increased credit spreads or reduced market liquidity. As of March 31, 2016 , Northern Trust did not intend to sell any investment in an unrealized loss position and it was not more likely than not that Northern Trust would be required to sell any such investment before the recovery of its amortized cost basis, which may be maturity. Security impairment reviews are conducted quarterly to identify and evaluate securities that have indications of possible OTTI. A determination as to whether a security’s decline in market value is other-than-temporary takes into consideration numerous factors and the relative significance of any single factor can vary by security. Factors Northern Trust considers in determining whether impairment is other-than-temporary include, but are not limited to: the length of time the security has been impaired; the severity of the impairment; the cause of the impairment and the financial condition and near-term prospects of the issuer; activity in the market of the issuer which may indicate adverse credit conditions; Northern Trust’s intent regarding the sale of the security as of the balance sheet date; and the likelihood that it will not be required to sell the security for a period of time sufficient to allow for the recovery of the security’s amortized cost basis. For each security meeting the requirements of Northern Trust’s internal screening process, an extensive review is conducted to determine if OTTI has occurred. While all securities are considered, the process for identifying credit impairment within CRA-eligible mortgage-backed securities incorporates an expected loss approach using discounted cash flows on the underlying collateral pools. To evaluate whether an unrealized loss on CRA-eligible mortgage-backed securities is other-than-temporary, a calculation of the security’s present value is made using current pool data, the current delinquency pipeline, default rates and loan loss severities based on the historical performance of like collateral, and Northern Trust’s outlook for the housing market and the overall economy. If the present value of the collateral pools was found to be less than the current amortized cost of the security, a credit-related OTTI loss would be recorded in earnings equal to the difference between the two amounts. Impairments of CRA-eligible mortgage-backed securities are influenced by a number of factors, including but not limited to, U.S. economic and housing market performance, pool credit enhancement level, year of origination and estimated credit quality of the collateral. The factors used in estimating losses related to CRA-eligible mortgage-backed securities vary by vintage of loan origination and collateral quality. There were no OTTI losses recognized in the three months ended March 31, 2016 or 2015 related to CRA-eligible mortgage-backed securities. Credit Losses on Debt Securities. The table below provides the cumulative credit-related losses recognized in earnings on debt securities other-than-temporarily impaired. Table 32: Cumulative Credit-Related Losses on Securities Three Months Ended (In Millions) 2016 2015 Cumulative Credit-Related Losses on Securities Held — Beginning of Period $ 5.2 $ 5.2 Plus: Losses on Newly Identified Impairments — — Additional Losses on Previously Identified Impairments — — Less: Current and Prior Period Losses on Securities Sold During the Period — — Cumulative Credit-Related Losses on Securities Held — End of Period $ 5.2 $ 5.2 |
Securities Sold Under Agreement
Securities Sold Under Agreements to Repurchase | 3 Months Ended |
Mar. 31, 2016 | |
Banking and Thrift [Abstract] | |
Securities Sold Under Agreements to Repurchase | Securities Sold Under Agreements to Repurchase — Securities sold under agreements to repurchase are accounted for as collateralized financings and recorded at the amounts at which the securities were sold plus accrued interest. To minimize any potential credit risk associated with these transactions, the fair value of the securities sold is monitored, limits are set on exposure with counterparties, and the financial condition of counterparties is regularly assessed. Securities sold under agreements to repurchase are held by the counterparty until the repurchase. The following table provides information regarding repurchase agreements that are accounted for as secured borrowings as of March 31, 2016 . Table 33: Repurchase Agreements Accounted for as Secured Borrowings March 31, 2016 (In Millions) Remaining Contractual Maturity of the Agreements Repurchase Agreements Overnight and Continuous U.S. Treasury and Agency Securities $ 507.1 Total Borrowings $ 507.1 Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 21 $ 507.1 Amounts related to agreements not included in Note 21 $ — |
Loans and Leases
Loans and Leases | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Loans and Leases | Loans and Leases — Amounts outstanding for loans and leases, by segment and class, are shown below. Table 34: Loans and Leases (In Millions) March 31, December 31, Commercial Commercial and Institutional $ 9,941.1 $ 9,431.5 Commercial Real Estate 3,902.9 3,848.8 Lease Financing, net 470.6 544.4 Non-U.S. 1,769.9 1,137.7 Other 155.6 194.1 Total Commercial 16,240.1 15,156.5 Personal Residential Real Estate 8,652.6 8,850.7 Private Client 9,232.6 9,136.4 Other 19.6 37.3 Total Personal 17,904.8 18,024.4 Total Loans and Leases 34,144.9 33,180.9 Allowance for Credit Losses Assigned to Loans and Leases (195.6 ) (193.8 ) Net Loans and Leases $ 33,949.3 $ 32,987.1 Residential real estate loans consist of traditional first lien mortgages and equity credit lines that generally require a loan-to-collateral value of no more than 65% to 75% at inception. Northern Trust’s equity credit line products generally have draw periods of up to 10 years and a balloon payment of any outstanding balance is due at maturity. Payments are interest only with variable interest rates. Northern Trust does not offer equity credit lines that include an option to convert the outstanding balance to an amortizing payment loan. As of March 31, 2016 and December 31, 2015 , equity credit lines totaled $1.4 billion and $1.5 billion , respectively, and equity credit lines for which first liens were held by Northern Trust represented 89% of the total equity credit lines as of both of those dates. Included within the non-U.S., commercial-other and personal-other classes are short-duration advances primarily related to the processing of custodied client investments that totaled $1.0 billion at March 31, 2016 , and $719.5 million at December 31, 2015 . Demand deposits reclassified as loan balances totaled $58.1 million and $75.4 million at March 31, 2016 and December 31, 2015 , respectively. Loans and leases classified as held for sale totaled $1.4 million and $134.2 million at March 31, 2016 , respectively, and totaled $12.0 million and $112.3 million , at December 31, 2015 , respectively, primarily related to the decision to exit a non-strategic loan and lease portfolio. Credit Quality Indicators. Credit quality indicators are statistics, measurements or other metrics that provide information regarding the relative credit risk of loans and leases. Northern Trust utilizes a variety of credit quality indicators to assess the credit risk of loans and leases at the segment, class and individual credit exposure levels. As part of its credit process, Northern Trust utilizes an internal borrower risk rating system to support identification, approval and monitoring of credit risk. Borrower risk ratings are used in credit underwriting, management reporting and the calculation of credit loss allowances and economic capital. Risk ratings are used for ranking the credit risk of borrowers and the probability of their default. Each borrower is rated using one of a number of ratings models or other subjective assessment methodologies, which consider both quantitative and qualitative factors. The ratings models vary among classes of loans and leases in order to capture the unique risk characteristics inherent within each particular type of credit exposure. Provided below are the more significant performance indicator attributes considered within Northern Trust’s borrower rating models, by loan and lease class. • Commercial and Institutional: leverage, profit margin, liquidity, asset size and capital levels; • Commercial Real Estate: debt service coverage, loan-to-value ratio, leasing status and guarantor support; • Lease Financing and Commercial-Other: leverage, profit margin, liquidity, asset size and capital levels; • Non-U.S.: leverage, profit margin, liquidity, return on assets and capital levels; • Residential Real Estate: payment history, credit bureau scores and loan-to-value ratio; • Private Client: cash-flow-to-debt and net worth ratios, leverage and liquidity; and • Personal-Other: cash-flow-to-debt and net worth ratios. While the criteria vary by model, the objective is for the borrower ratings to be consistent in both the measurement and ranking of risk. Each model is calibrated to a master rating scale to support this consistency. Ratings for borrowers not in default range from “1” for the strongest credits to “7” for the weakest non-defaulted credits. Ratings of “8” or “9” are used for defaulted borrowers. Borrower risk ratings are monitored and are revised when events or circumstances indicate a change is required. Risk ratings are validated at least annually. Loan and lease segment and class balances as of March 31, 2016 and December 31, 2015 are provided below, segregated by borrower ratings into “1 to 3,” “4 to 5” and “6 to 9” (watch list), categories. Table 35: Borrower Ratings March 31, 2016 December 31, 2015 (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 $ 6,743.8 $ 2,999.5 $ 197.8 $ 9,941.1 $ 6,360.6 $ 2,897.2 $ 173.7 $ 9,431.5 Commercial Real Estate 1,876.2 1,988.8 37.9 3,902.9 1,822.6 1,992.7 33.5 3,848.8 Lease Financing, net 312.5 125.1 33.0 470.6 377.0 133.1 34.3 544.4 Non-U.S. 598.7 1,170.5 0.7 1,769.9 313.8 823.3 0.6 1,137.7 Other 67.0 88.6 — 155.6 94.9 99.2 — 194.1 Total Commercial 9,598.2 6,372.5 269.4 16,240.1 8,968.9 5,945.5 242.1 15,156.5 Personal Residential Real Estate 3,009.4 5,335.2 308.0 8,652.6 3,014.9 5,516.7 319.1 8,850.7 Private Client 5,793.9 3,415.2 23.5 9,232.6 5,908.3 3,207.1 21.0 9,136.4 Other 8.4 11.2 — 19.6 18.3 19.0 — 37.3 Total Personal 8,811.7 8,761.6 331.5 17,904.8 8,941.5 8,742.8 340.1 18,024.4 Total Loans and Leases $ 18,409.9 $ 15,134.1 $ 600.9 $ 34,144.9 $ 17,910.4 $ 14,688.3 $ 582.2 $ 33,180.9 Loans and leases in the “1 to 3” category are expected to exhibit minimal to modest probabilities of default and are characterized by borrowers having the strongest financial qualities, including above average financial flexibility, cash flows and capital levels. Borrowers assigned these ratings are anticipated to experience very little to moderate financial pressure in adverse down cycle scenarios. As a result of these characteristics, borrowers within this category exhibit a minimal to modest likelihood of loss. Loans and leases in the “4 to 5” category are expected to exhibit moderate to acceptable probabilities of default and are characterized by borrowers with less financial flexibility than those in the “1 to 3” category. Cash flows and capital levels are generally sufficient to allow for borrowers to meet current requirements, but have reduced cushion in adverse down cycle scenarios. As a result of these characteristics, borrowers within this category exhibit a moderate likelihood of loss. Loans and leases in the watch list category have elevated credit risk profiles that are monitored through internal watch lists, and consist of credits with borrower ratings of “6 to 9.” These credits, which include all nonperforming credits, are expected to exhibit minimally acceptable probabilities of default, elevated risk of default, or are currently in default. Borrowers associated with these risk profiles that are not currently in default have limited financial flexibility. Cash flows and capital levels range from acceptable to potentially insufficient to meet current requirements, particularly in adverse down cycle scenarios. As a result of these characteristics, borrowers in this category exhibit an elevated likelihood of loss. Recognition of Income. Interest income on loans is recorded on an accrual basis unless, in the opinion of management, there is a question as to the ability of the debtor to meet the terms of the loan agreement, or interest or principal is more than 90 days contractually past due and the loan is not well-secured and in the process of collection. Loans meeting such criteria are classified as nonperforming and interest income is recorded on a cash basis. At the time a loan is determined to be nonperforming, interest accrued but not collected is reversed against interest income in the current period. Interest collected on nonperforming loans is applied to principal unless, in the opinion of management, collectability of principal is not in doubt. Management’s assessment of the indicators of loan and lease collectability, and its policies relative to the recognition of interest income, including the suspension and subsequent resumption of income recognition, do not meaningfully vary between loan and lease classes. Nonperforming loans are returned to performing status when factors indicating doubtful collectability no longer exist. Factors considered in returning a loan to performing status are consistent across all classes of loans and leases and, in accordance with regulatory guidance, relate primarily to expected payment performance. Loans are eligible to be returned to performing status when: (i) no principal or interest that is due is unpaid and repayment of the remaining contractual principal and interest is expected or (ii) the loan has otherwise become well-secured (possessing realizable value sufficient to discharge the debt, including accrued interest, in full) and is in the process of collection (through action reasonably expected to result in debt repayment or restoration to a current status in the near future). A loan that has not been brought fully current may be restored to performing status provided there has been a sustained period of repayment performance (generally a minimum of six months) by the borrower in accordance with the contractual terms, and Northern Trust is reasonably assured of repayment within a reasonable period of time. Additionally, a loan that has been formally restructured so as to be reasonably assured of repayment and performance according to its modified terms may be returned to accrual status, provided there was a well-documented credit evaluation of the borrower’s financial condition and prospects of repayment under the revised terms and there has been a sustained period of repayment performance (generally a minimum of six months) under the revised terms. Past due status is based on how long since the contractual due date a principal or interest payment has been past due. For disclosure purposes, loans that are 29 days past due or less are reported as current. The following tables provide balances and delinquency status of performing and nonperforming loans and leases by segment and class, as well as the total OREO and nonperforming asset balances, as of March 31, 2016 and December 31, 2015 . Table 36: Delinquency Status March 31, 2016 (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 $ 9,874.5 $ 23.8 $ 0.1 $ 1.0 $ 9,899.4 $ 41.7 $ 9,941.1 Commercial Real Estate 3,878.8 3.6 3.8 3.2 3,889.4 13.5 3,902.9 Lease Financing, net 470.6 — — — 470.6 — 470.6 Non-U.S. 1,769.9 — — — 1,769.9 — 1,769.9 Other 155.6 — — — 155.6 — 155.6 Total Commercial 16,149.4 27.4 3.9 4.2 16,184.9 55.2 16,240.1 Personal Residential Real Estate 8,499.1 39.5 1.6 3.9 8,544.1 108.5 8,652.6 Private Client 9,146.1 39.6 44.5 2.1 9,232.3 0.3 9,232.6 Other 19.6 — — — 19.6 — 19.6 Total Personal 17,664.8 79.1 46.1 6.0 17,796.0 108.8 17,904.8 Total Loans and Leases $ 33,814.2 $ 106.5 $ 50.0 $ 10.2 $ 33,980.9 $ 164.0 $ 34,144.9 Other Real Estate Owned 10.4 Total Nonperforming Assets $ 174.4 December 31, 2015 (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 $ 9,377.6 $ 7.8 $ 0.9 $ 2.3 $ 9,388.6 $ 42.9 $ 9,431.5 Commercial Real Estate 3,823.3 2.4 4.9 1.5 3,832.1 16.7 3,848.8 Lease Financing, net 544.4 — — — 544.4 — 544.4 Non-U.S. 1,137.7 — — — 1,137.7 — 1,137.7 Other 194.1 — — — 194.1 — 194.1 Total Commercial 15,077.1 10.2 5.8 3.8 15,096.9 59.6 15,156.5 Personal Residential Real Estate 8,679.3 35.2 14.5 1.6 8,730.6 120.1 8,850.7 Private Client 9,104.8 17.5 12.0 1.7 9,136.0 0.4 9,136.4 Other 37.3 — — — 37.3 — 37.3 Total Personal 17,821.4 52.7 26.5 3.3 17,903.9 120.5 18,024.4 Total Loans and Leases $ 32,898.5 $ 62.9 $ 32.3 $ 7.1 $ 33,000.8 $ 180.1 $ 33,180.9 Other Real Estate Owned 8.2 Total Nonperforming Assets $ 188.3 Impaired Loans. A loan is considered to be impaired when, based on current information and events, management determines that it is probable that Northern Trust will be unable to collect all amounts due according to the contractual terms of the loan agreement. Impaired loans are identified through ongoing credit management and risk rating processes, including the formal review of past due and watch list credits. Payment performance and delinquency status are critical factors in identifying impairment for all loans and leases, particularly those within the residential real estate, private client and personal-other classes. Other key factors considered in identifying impairment of loans and leases within the commercial and institutional, non-U.S., lease financing and commercial-other classes relate to the borrower’s ability to perform under the terms of the obligation as measured through the assessment of future cash flows, including consideration of collateral value, market value and other factors. A loan is also considered to be impaired if its terms have been modified as a concession resulting from the debtor’s financial difficulties, referred to as a troubled debt restructuring (TDR) and discussed in further detail below. Impairment is measured based upon the loan’s market price, the present value of expected future cash flows, discounted at the loan’s effective interest rate, or the fair value of the collateral if the loan is collateral dependent. If the loan valuation is less than the recorded value of the loan, based on the certainty of loss, either a specific allowance is established or a charge-off is recorded for the difference. Smaller balance (individually less than $1 million ) homogeneous loans are collectively evaluated for impairment and excluded from impaired loan disclosures as allowed under applicable accounting standards. Northern Trust’s accounting policies for impaired loans are consistent across all classes of loans and leases. The following tables provide information related to impaired loans by segment and class. Table 37: Information about Impaired Loans as of the Period End As of March 31, 2016 As of December 31, 2015 (In Millions) Recorded Investment Unpaid Principal Balance Specific Allowance Recorded Investment Unpaid Principal Balance Specific Allowance With No Related Specific Allowance Commercial and Institutional $ 28.9 $ 32.5 $ — $ 27.1 $ 30.7 $ — Commercial Real Estate 16.8 21.2 — 17.2 21.2 — Lease Financing, net 1.3 1.3 — — — — Residential Real Estate 99.0 139.0 — 99.3 140.7 — Private Client 0.2 0.2 — 0.2 0.2 — With a Related Specific Allowance Commercial and Institutional 8.0 10.1 0.4 9.3 11.4 1.6 Commercial Real Estate — 1.4 — — 1.4 — Lease Financing, net 0.8 0.8 0.8 2.7 2.7 1.4 Residential Real Estate 1.4 1.5 0.2 1.5 1.5 0.1 Private Client — — — — — — Total Commercial 55.8 67.3 1.2 56.3 67.4 3.0 Personal 100.6 140.7 0.2 101.0 142.4 0.1 Total $ 156.4 $ 208.0 $ 1.4 $ 157.3 $ 209.8 $ 3.1 Three Months Ended March 31, 2016 2015 (In Millions) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With No Related Specific Allowance Commercial and Institutional $ 28.3 $ — $ 9.2 $ — Commercial Real Estate 17.7 0.1 48.5 0.2 Lease Financing, net 0.4 0.1 3.4 0.1 Residential Real Estate 99.6 0.4 161.3 0.3 Private Client 0.3 — 0.2 — With a Related Specific Allowance Commercial and Institutional 8.4 — 8.5 — Commercial Real Estate — — 12.2 — Lease Financing, net 2.1 — — — Residential Real Estate 1.5 — 2.8 — Private Client — — 0.8 — Total Commercial 56.9 0.2 81.8 0.3 Personal 101.4 0.4 165.1 0.3 Total $ 158.3 $ 0.6 $ 246.9 $ 0.6 Note: Average recorded investment in impaired loans is calculated as the average of the month-end impaired loan balances for the period. Interest income that would have been recorded for nonperforming loans in accordance with their original terms was $2.1 million for the three months ended March 31, 2016 and 2015 , respectively. There were $2.4 million and $3.1 million of aggregate undrawn loan commitments and standby letters of credit at March 31, 2016 and December 31, 2015 , respectively, issued to borrowers whose loans were classified as nonperforming or impaired. Troubled Debt Restructurings (TDRs). Included within impaired loans were $83.4 million and $79.2 million of nonperforming TDRs, and $40.8 million and $37.9 million of performing TDRs as of March 31, 2016 and December 31, 2015 , respectively. All TDRs are reported as impaired loans in the calendar year of their restructuring. In subsequent years, a TDR may cease being reported as impaired if the loan was modified at a market rate and has performed according to the modified terms for at least six months. A loan that has been modified at a below market rate will return to performing status if it satisfies the six-month performance requirement; however, it will remain reported as impaired. The following tables provide, by segment and class, the number of loans and leases modified in TDRs during the three month periods ended March 31, 2016 and 2015 , and the recorded investments and unpaid principal balances as of March 31, 2016 and 2015 . Table 38: Troubled Debt Restructurings ($ In Millions) Three Months Ended March 31, 2016 Number of Loans and Leases Recorded Investment Unpaid Principal Balance Commercial Commercial and Institutional 2 $ 4.0 $ 6.0 Commercial Real Estate 5 5.4 7.7 Total Commercial 7 9.4 13.7 Personal Residential Real Estate 24 5.5 6.2 Private Client — — — Total Personal 24 5.5 6.2 Total Loans and Leases 31 $ 14.9 $ 19.9 Note: Period end balances reflect all paydowns and charge-offs during the period. ($ In Millions) Three Months Ended March 31, 2015 Number of Loans and Leases Recorded Investment Unpaid Principal Balance Commercial Commercial and Institutional 1 $ 0.1 $ 0.1 Commercial Real Estate 1 0.7 0.7 Total Commercial 2 0.8 0.8 Personal Residential Real Estate 57 7.1 10.2 Total Personal 57 7.1 10.2 Total Loans and Leases 59 $ 7.9 $ 11.0 Note: Period end balances reflect all paydowns and charge-offs during the period. TDR modifications involve interest rate concessions, extensions of term, deferrals of principal and other modifications. Other modifications typically reflect other nonstandard terms which Northern Trust would not offer in non-troubled situations. During the three months ended March 31, 2016 , the majority of TDR modifications of loans within residential real estate were deferred principal, extension of term, interest rate concessions, and other modifications. During the three months ended March 31, 2016 , the majority of TDR modifications within commercial and institutional, and commercial real estate classes were extension of term and other modifications. During the three months ended March 31, 2015 , the majority of TDR modifications of loans within residential real estate were interest rate concessions, extension of term, deferred principal, and other modifications. The majority of TDR modifications of loans within commercial and institutional, commercial real estate, and private client classes were deferred principal, extension of term, and other modifications. There was one loan modified in a TDR during the twelve months ended December 31, 2015 , which subsequently became nonperforming during the three months ended March 31, 2016 . The total recorded investment and unpaid principal balance for this loan was approximately $0.1 million . There were four residential real estate loans modified in TDRs during the twelve months ended December 31, 2014, which subsequently became nonperforming during the three months ended March 31, 2015 . The total recorded investment and unpaid principal balance for these loans was approximately $ 0.7 million . All loans and leases modified in TDRs are evaluated for impairment. The nature and extent of impairment of TDRs, including those that have experienced a subsequent default, is considered in the determination of an appropriate level of allowance for credit losses. Northern Trust may obtain physical possession of residential real estate collateralizing a consumer mortgage loan via foreclosure on an in-substance repossession. As of March 31, 2016 , Northern Trust held foreclosed residential real estate properties with a carrying value of $10.0 million as a result of obtaining physical possession. In addition, as of March 31, 2016 , Northern Trust had consumer loans with a carrying value of $23.8 million collateralized by residential real estate property for which formal foreclosure proceedings were in process. |
Allowance for Credit Losses
Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses — The allowance for credit losses, which represents management’s estimate of probable losses related to specific borrower relationships and inherent in the various loan and lease portfolios, undrawn commitments, and standby letters of credit, is determined by management through a disciplined credit review process. Northern Trust’s accounting policies related to the estimation of the allowance for credit losses and the charging off of loans, leases and other extensions of credit deemed uncollectible are consistent across both loan and lease segments. As of December 31, 2015, Northern Trust changed the estimation methodology for inherent losses that have been incurred in the loan and lease portfolio. The new estimation methodology is more quantitatively focused than the previous methodology as it is based on internally developed loss data specific to the Northern Trust loan and lease portfolio. The change in methodology is accounted for as a change in estimate applicable to the current period and future periods. The new estimation methodology and the related qualitative adjustment framework segregate the loan and lease portfolio into homogeneous segments. For each segment, the probability of default and the loss given default are applied to the total exposure at default to determine a quantitative inherent allowance. The estimated allowance is reviewed by the Loan Loss Reserve Committee within a qualitative adjustment framework to determine an appropriate adjustment to the quantitative inherent allowance for each segment of the loan portfolio. In determining the appropriate adjustment, management applies judgment by assessing internal risk factors, potential limitations in the quantitative methodology and environmental factors that are not contemplated in the quantitative methodology. The Loan Loss Reserve Committee is comprised of representatives from Credit Risk Management, the reporting segments and Corporate Finance. The new methodology was used to determine the inherent allowance as of March 31, 2016 . For periods prior to the methodology change, including as of March 31, 2015 , the amount of inherent allowance was based on factors that incorporated management’s evaluation of historical charge-off experience and various qualitative factors such as management’s evaluation of economic and business conditions and changes in the character and size of the loan portfolio. Factors were applied to loan and lease credit exposures aggregated by shared risk characteristics and were reviewed quarterly by the Loan Loss Reserve Committee. Loans, leases and other extensions of credit deemed uncollectible are charged to the allowance for credit losses. Subsequent recoveries, if any, are credited to the allowance. Determinations as to whether an uncollectible loan is charged-off or a specific allowance is established are based on management’s assessment as to the level of certainty regarding the amount of loss. The following table provides information regarding changes in the total allowance for credit losses by segment during the three months ended March 31, 2016 and 2015 . Table 39: Changes in the Allowance for Credit Losses Three Months Ended March 31, 2016 2015 (In Millions) Commercial Personal Total Commercial Personal Total Balance at Beginning of Period $ 114.8 $ 118.5 $ 233.3 $ 169.7 $ 126.2 $ 295.9 Charge-Offs (3.5 ) (1.8 ) (5.3 ) (2.7 ) (4.8 ) (7.5 ) Recoveries 1.2 1.4 2.6 1.7 1.2 2.9 Net (Charge-Offs) Recoveries (2.3 ) (0.4 ) (2.7 ) (1.0 ) (3.6 ) (4.6 ) Provision for Credit Losses 2.7 (0.7 ) 2.0 (4.3 ) (0.2 ) (4.5 ) Effect of Foreign Exchange Rates — — — (0.1 ) — (0.1 ) Balance at End of Period $ 115.2 $ 117.4 $ 232.6 $ 164.3 $ 122.4 $ 286.7 The following table provides information regarding the balances of the recorded investments in loans and leases and the allowance for credit losses by segment as of March 31, 2016 and December 31, 2015 . Table 40: Information about the Recorded Investments in Loans and Leases March 31, 2016 December 31, 2015 (In Millions) Commercial Personal Total Commercial Personal Total Loans and Leases Specifically Evaluated for Impairment $ 55.8 $ 100.6 $ 156.4 $ 56.3 $ 101.0 $ 157.3 Evaluated for Inherent Impairment 16,184.3 17,804.2 33,988.5 15,100.2 17,923.4 33,023.6 Total Loans and Leases 16,240.1 17,904.8 34,144.9 15,156.5 18,024.4 33,180.9 Allowance for Loans and Leases Specifically Evaluated for Impairment 1.2 0.2 1.4 3.0 0.1 3.1 Evaluated for Inherent Impairment 87.5 106.7 194.2 83.3 107.4 190.7 Allowance Assigned to Loans and Leases 88.7 106.9 195.6 86.3 107.5 193.8 Allowance for Unfunded Exposures Commitments and Standby Letters of Credit 26.5 10.5 37.0 28.5 11.0 39.5 Total Allowance for Credit Losses $ 115.2 $ 117.4 $ 232.6 $ 114.8 $ 118.5 $ 233.3 |
Pledged Assets
Pledged Assets | 3 Months Ended |
Mar. 31, 2016 | |
Transfers and Servicing [Abstract] | |
Pledged Assets | Pledged Assets — Certain of Northern Trust’s subsidiaries, as required or permitted by law, pledge assets to secure public and trust deposits, repurchase agreements and Federal Home Loan Bank borrowings, as well as for other purposes, including support for securities settlement, primarily related to client activities, and for potential Federal Reserve Bank discount window borrowings. As of March 31, 2016 , securities and loans totaling $35.5 billion ( $26.8 billion of government-sponsored agency and other securities, $211.0 million of obligations of states and political subdivisions and $8.5 billion of loans) were pledged. This compares to $35.8 billion ( $27.1 billion of government-sponsored agency and other securities, $117.5 million of obligations of states and political subdivisions and $8.6 billion of loans) at December 31, 2015 . Collateral required for these purposes totaled $6.9 billion and $8.9 billion at March 31, 2016 and December 31, 2015 , respectively. Included in the total pledged assets at March 31, 2016 and December 31, 2015 , were available for sale securities with a total fair value of $1,405.7 million and $1,545.6 million , respectively, which were pledged as collateral for agreements to repurchase securities sold transactions. The secured parties to these transactions have the right to repledge or sell these securities. Northern Trust is not permitted, by contract or custom, to repledge or sell collateral from agreements to resell securities purchased transactions. The total fair value of accepted collateral was $1.6 billion as of March 31, 2016 and $1.5 billion as of December 31, 2015 . There was no repledged or sold collateral at March 31, 2016 or December 31, 2015 . Deposits maintained to meet Federal Reserve Bank reserve requirements averaged $1.8 billion and $1.5 billion for the three months ended March 31, 2016 and 2015 , respectively. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles — The carrying amounts of goodwill and other intangibles assets, reflecting the effect of foreign exchange rates on non-U.S.-dollar-denominated balances, by reporting segment at March 31, 2016 , and December 31, 2015 , were as follows: Table 41: Goodwill by Reporting Segment (In Millions) March 31, December 31, Corporate & Institutional Services $ 452.3 $ 455.1 Wealth Management 71.3 71.3 Total Goodwill $ 523.6 $ 526.4 The gross carrying amount and accumulated amortization of other intangible assets subject to amortization as of March 31, 2016 and December 31, 2015 , were as follows: Table 42: Other Intangible Assets (In Millions) March 31, December 31, Gross Carrying Amount $ 87.2 $ 182.3 Less: Accumulated Amortization 41.9 135.8 Net Book Value $ 45.3 $ 46.5 Other intangible assets consist primarily of the value of acquired client relationships and are included within other assets in the consolidated balance sheets. Amortization expense related to other intangible assets totaled $2.1 million and $4.6 million for the three months ended March 31, 2016 and 2015 , respectively. Amortization for the remainder of 2016 and for the years 2017 , 2018 , 2019 , and 2020 is estimated to be $6.4 million , $8.5 million , $7.9 million , $7.7 million and $7.7 million , respectively. |
Reporting Segments
Reporting Segments | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Reporting Segments | Reporting Segments — The following table shows the earnings contributions of Northern Trust’s reporting segments for the three -month periods ended March 31, 2016 and 2015 . Table 43: Results of Reporting Segments Three Months Ended March 31, Corporate & Wealth Treasury and Total ($ In Millions) 2016 2015 2016 2015 2016 2015 2016 2015 Noninterest Income Trust, Investment and Other Servicing Fees $ 433.4 $ 407.3 $ 314.8 $ 320.2 $ — $ — $ 748.2 $ 727.5 Foreign Exchange Trading Income 51.7 67.5 4.5 4.1 4.3 — 60.5 71.6 Other Noninterest Income 45.6 41.9 26.8 28.8 1.1 4.1 73.5 74.8 Net Interest Income* 138.4 96.0 158.5 138.3 17.1 32.5 314.0 266.8 Revenue* 669.1 612.7 504.6 491.4 22.5 36.6 1,196.2 1,140.7 Provision for Credit Losses (3.2 ) (2.2 ) 5.2 (2.3 ) — — 2.0 (4.5 ) Noninterest Expense 475.3 434.9 326.9 321.9 26.6 32.2 828.8 789.0 Income before Income Taxes* 197.0 180.0 172.5 171.8 (4.1 ) 4.4 365.4 356.2 Provision for Income Taxes* 62.2 57.3 64.9 64.6 (3.5 ) 3.6 123.6 125.5 Net Income $ 134.8 $ 122.7 $ 107.6 $ 107.2 $ (0.6 ) $ 0.8 $ 241.8 $ 230.7 Percentage of Consolidated Net Income 56 % 53 % 44 % 47 % — % — % 100 % 100 % Average Assets $ 75,372.9 $ 69,224.5 $ 26,237.8 $ 24,233.7 $ 11,806.4 $ 14,055.0 $ 113,417.1 $ 107,513.2 * Stated on a fully taxable equivalent basis (FTE). Total consolidated includes FTE adjustments of $6.2 million for 2016 and 2015 . In the three -month periods ended March 31, 2016 and March 31, 2015, the presentation of average assets was changed to reflect a modification to the methodology by which assets are allocated among our reporting segments. The change in presentation resulted in an increase in average assets and a reduction in net interest margin for C&IS and a reduction in average assets and an increase in net interest margin for Treasury and Other. Further discussion of reporting segment results is provided within the “Reporting Segments” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred Stock. The Corporation is authorized to issue 10 million shares of preferred stock without par value. The Board of Directors is authorized to fix the particular designations, preferences and relative, participating, optional and other special rights and qualifications, limitations or restrictions for each series of preferred stock issued. As of March 31, 2016 and December 31, 2015 , preferred stock totaled $388.5 million , related to the issuance of Series C Non-Cumulative Perpetual Preferred Stock (Series C Preferred Stock) in August 2014. As of March 31, 2016 and December 31, 2015 , 16 million depositary shares, each representing 1/1000 ownership interest in a share of Series C Preferred Stock, were issued and outstanding. Series C Preferred Stock has no par value and has a liquidation preference of $25,000 ( $25 per depositary share). Dividends on the Series C Preferred Stock will accrue and be payable on the liquidation preference amount, on a non-cumulative basis, quarterly in arrears on the first day of January, April, July and October of each year, at a rate per annum equal to 5.85% . On January 19, 2016, the Corporation declared a cash dividend of $365.625 per share of Series C Preferred Stock payable on April 1, 2016 , to stockholders of record as of March 15, 2016 . Common Stock. During the three months ended March 31, 2016 , the Corporation repurchased 2,310,617 shares of common stock, including 385,604 shares withheld related to share-based compensation, at a total cost of $140.3 million ( $60.71 average price per share). The Corporation’s current common stock repurchase authorization was approved by the Board of Directors in April 2015, pursuant to which the Corporation may repurchase up to 15 million shares. The stock repurchase authorization remaining as of March 31, 2016 was 7,393,385 shares. The repurchase authorization approved by the Board of Directors has no expiration date. Under the Corporation’s capital plan submitted in January 2015, which was reviewed without objection by the Federal Reserve, the Corporation may repurchase up to $145.0 million of common stock after March 31, 2016 , through June 2016. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) — The following tables summarize the components of accumulated other comprehensive income (loss) (AOCI) at March 31, 2016 and 2015 , and changes during the three month periods then ended. Table 44: Summary of Changes in Accumulated Other Comprehensive Income (Loss) (In Millions) Balance at March 31, 2016 Net Change Balance at December 31, 2015 Net Unrealized Gains (Losses) on Securities Available for Sale $ 43.7 $ 74.7 $ (31.0 ) Net Unrealized Gains (Losses) on Cash Flow Hedges 3.1 6.1 (3.0 ) Net Foreign Currency Adjustments (13.7 ) 3.9 (17.6 ) Net Pension and Other Postretirement Benefit Adjustments (317.0 ) 4.1 (321.1 ) Total $ (283.9 ) $ 88.8 $ (372.7 ) (In Millions) Balance at March 31, 2015 Net Change Balance at December 31, 2014 Net Unrealized Gains (Losses) on Securities Available for Sale $ 81.7 $ 54.1 $ 27.6 Net Unrealized Gains (Losses) on Cash Flow Hedges (5.8 ) (1.1 ) (4.7 ) Net Foreign Currency Adjustments (7.6 ) (5.9 ) (1.7 ) Net Pension and Other Postretirement Benefit Adjustments (334.7 ) 6.2 (340.9 ) Total $ (266.4 ) $ 53.3 $ (319.7 ) Table 45: Details of Changes in Accumulated Other Comprehensive Income (Loss) Three Months Ended March 31, 2016 2015 (In Millions) Before Tax Tax Effect After Tax Before Tax Tax Effect After Tax Unrealized Gains (Losses) on Securities Available for Sale Noncredit-Related Unrealized Losses on Securities OTTI $ — $ — $ — $ — $ — $ — Other Unrealized Gains (Losses) on Securities Available for Sale 120.5 (45.6 ) 74.9 86.8 (32.7 ) 54.1 Reclassification Adjustment for (Gains) Losses Included in Net Income (0.3 ) 0.1 (0.2 ) (0.1 ) 0.1 — Net Change 120.2 (45.5 ) 74.7 86.7 (32.6 ) 54.1 Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Cash Flow Hedges 9.4 (3.7 ) 5.7 (4.7 ) 3.0 (1.7 ) Reclassification Adjustment for (Gains) Losses Included in Net Income 0.6 (0.2 ) 0.4 1.0 (0.4 ) 0.6 Net Change 10.0 (3.9 ) 6.1 (3.7 ) 2.6 (1.1 ) Foreign Currency Adjustments Foreign Currency Translation Adjustments 17.3 (0.3 ) 17.0 (90.1 ) 12.2 (77.9 ) Long-Term Intra-Entity Foreign Currency Transaction Gains (Losses) 4.2 (1.0 ) 3.2 (1.0 ) 0.3 (0.7 ) Net Investment Hedge Gains (Losses) (26.5 ) 10.2 (16.3 ) 116.6 (43.9 ) 72.7 Reclassification Adjustment for (Gains) Losses Included in Net Income — — — — — — Net Change (5.0 ) 8.9 3.9 25.5 (31.4 ) (5.9 ) Pension and Other Postretirement Benefit Adjustments Net Actuarial Gain (Loss) — — — — — — Reclassification Adjustment for (Gains) Losses Included in Net Income 6.4 (2.3 ) 4.1 9.5 (3.3 ) 6.2 Net Change $ 6.4 $ (2.3 ) $ 4.1 $ 9.5 $ (3.3 ) $ 6.2 The following table provides the location and before-tax amounts of reclassifications out of AOCI during the three months ended March 31, 2016 . Table 46: Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) (In Millions) Location of Reclassification Adjustments Recognized in Income Amount of Reclassification Adjustments Recognized in Income Three Months Ended March 31, 2016 Securities Available for Sale Realized (Gains) Losses on Securities Available for Sale Investment Security Gains, net $ (0.3 ) Realized Losses on Cash Flow Hedges Foreign Exchange Contracts Other Operating Income/Expense 0.6 Pension and Other Postretirement Benefit Adjustments Amortization of Net Actuarial Loss Employee Benefits 6.5 Amortization of Prior Service Cost Employee Benefits (0.1 ) Gross Reclassification Adjustment $ 6.4 |
Net Income Per Common Share Com
Net Income Per Common Share Computations | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share Computations | Net Income Per Common Share Computations — The computations of net income per common share are presented in the following table. Table 47: Net Income per Common Share Three Months Ended ($ In Millions Except Per Common Share Information) 2016 2015 Basic Net Income Per Common Share Average Number of Common Shares Outstanding 228,619,089 233,381,168 Net Income $ 241.8 $ 230.7 Less: Dividends on Preferred Stock 5.9 5.9 Net Income Applicable to Common Stock 235.9 224.8 Less: Earnings Allocated to Participating Securities 4.1 3.7 Earnings Allocated to Common Shares Outstanding 231.8 221.1 Basic Net Income Per Common Share $ 1.01 $ 0.95 Diluted Net Income Per Common Share Average Number of Common Shares Outstanding 228,619,089 233,381,168 Plus: Dilutive Effect of Share-based Compensation 1,360,601 1,907,527 Average Common and Potential Common Shares 229,979,690 235,288,695 Earnings Allocated to Common and Potential Common Shares $ 231.9 $ 221.1 Diluted Net Income Per Common Share 1.01 0.94 Note: Common stock equivalents of 1,796,320 and 1,504,850 for the three months ended March 31, 2016 and 2015 , respectively, were not included in the computation of diluted net income per common share because their inclusion would have been antidilutive. |
Net Interest Income
Net Interest Income | 3 Months Ended |
Mar. 31, 2016 | |
Banking and Thrift, Interest [Abstract] | |
Net Interest Income | Net Interest Income — The components of net interest income were as follows: Table 48: Net Interest Income Three Months Ended (In Millions) 2016 2015 Interest Income Loans and Leases $ 200.9 $ 183.9 Securities — Taxable 103.3 76.6 — Non-Taxable 1.1 1.3 Interest-Bearing Due from and Deposits with Banks (1) 23.7 26.6 Federal Reserve Deposits and Other 23.0 10.4 Total Interest Income 352.0 298.8 Interest Expense Deposits 22.2 16.7 Federal Funds Purchased 0.3 0.2 Securities Sold Under Agreements to Repurchase 0.4 0.1 Other Borrowings 2.7 1.2 Senior Notes 11.7 11.6 Long-Term Debt 6.1 7.8 Floating Rate Capital Debt 0.8 0.6 Total Interest Expense 44.2 38.2 Net Interest Income $ 307.8 $ 260.6 (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. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes — Income tax expense for the three months ended March 31, 2016 , of $117.4 million was recorded, representing an effective tax rate of 32.7% . The prior-year three month provision for income taxes was $119.3 million , representing an effective tax rate of 34.1% . |
Pension and Postretirement Heal
Pension and Postretirement Health Care | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Postretirement Health Care | Pension and Postretirement Health Care — The following tables set forth the net periodic pension and postretirement benefit expense for Northern Trust’s U.S. and non-U.S. pension plans, supplemental pension plan, and postretirement health care plan for the three months ended March 31, 2016 and 2015 . Table 49: Net Periodic Pension Expense (Benefit) Net Periodic Pension Expense U.S. Plan Three Months Ended (In Millions) 2016 2015 Service Cost $ 9.3 $ 9.5 Interest Cost 11.5 11.2 Expected Return on Plan Assets (23.6 ) (24.1 ) Amortization Net Actuarial Loss 4.7 7.4 Prior Service Cost (0.1 ) (0.1 ) Net Periodic Pension Expense $ 1.8 $ 3.9 Net Periodic Pension Expense Non-U.S. Plans Three Months Ended (In Millions) 2016 2015 Interest Cost $ 1.3 $ 1.4 Expected Return on Plan Assets (1.3 ) (1.5 ) Net Actuarial Loss Amortization 0.3 0.4 Net Periodic Pension Expense $ 0.3 $ 0.3 Net Periodic Pension Expense Supplemental Plan Three Months Ended (In Millions) 2016 2015 Service Cost $ 0.9 $ 0.9 Interest Cost 1.3 1.3 Amortization Net Actuarial Loss 1.5 1.8 Prior Service Cost — — Net Periodic Pension Expense $ 3.7 $ 4.0 Net Periodic Postretirement Expense Postretirement Health Care Plan Three Months Ended (In Millions) 2016 2015 Service Cost $ — $ — Interest Cost 0.4 0.3 Amortization Net Actuarial (Gain) — — Net Periodic Postretirement Expense $ 0.4 $ 0.3 |
Share-Based Compensation Plans
Share-Based Compensation Plans | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Plans | Share-Based Compensation Plans — The Northern Trust Corporation 2012 Stock Plan provides for the grant of nonqualified stock options, incentive stock options, stock appreciation rights, stock awards, restricted stock units and performance stock units. In the first quarter of 2016, the Corporation granted 633,224 non-qualified stock options with a total grant-date fair value of $9.5 million , 1,190,617 stock unit awards with a total grant-date fair value of $69.4 million , and 354,606 performance stock units with a total grant-date fair value of $20.7 million . Stock unit award compensation expense for the three months ended March 31, 2016 and 2015 included $2.0 million and $1.5 million , respectively, attributable to restricted stock units which vested in full and were expensed in their entirety upon their date of grant. Compensation expense for the three months ended March 31, 2016 and 2015 included $5.5 million and $4.3 million , respectively, attributable to stock options granted to retirement-eligible employees that were expensed in their entirety on the date of grant. Total compensation expense for share-based payment arrangements and the associated tax impacts were as follows for the three months ended March 31, 2016 and 2015 . Table 50: Total Compensation Expense for Share-Based Payment Arrangements Three Months Ended (In Millions) 2016 2015 Restricted Stock Unit Awards $ 15.3 $ 13.5 Stock Options 6.4 6.0 Performance Stock Units 4.1 3.4 Total Share-Based Compensation Expense 25.8 22.9 Tax Benefits Recognized $ 9.7 $ 8.6 |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities — Variable Interest Entities (VIEs) are defined within GAAP as entities that either have a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support or whose equity investors lack the characteristics of a controlling financial interest. Investors that finance a VIE through debt or equity interests, or other counterparties that provide other forms of support, such as guarantees, subordinated fee arrangements, or certain types of derivative contracts, are variable interest holders in the entity. The variable interest holder, if any, that has both the power to direct the activities that most significantly impact the entity and a variable interest that could potentially be significant to the entity is deemed to be the VIE’s primary beneficiary and is required to consolidate the VIE. On January 1, 2016, Northern Trust adopted ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis” (ASU 2015-02), which modified the Corporation’s evaluation of whether certain legal entities are VIEs, and if Northern Trust would be deemed to be the primary beneficiary of the VIEs. Upon adoption, Northern Trust was not deemed to be the primary beneficiary of the VIEs, and therefore there was no impact to its consolidated financial position or statement of operations. Leveraged Leases. In leveraged leasing transactions, Northern Trust acts as lessor of the underlying asset subject to the lease and typically funds 20 - 30% of the asset’s cost via an equity ownership in a trust with the remaining 70 - 80% provided by third-party non-recourse debt holders. In such transactions, the trusts, which are VIEs, are created to provide the lessee use of the property with substantially all of the rights and obligations of ownership. The lessee’s maintenance and operation of the leased property has a direct effect on the fair value of the underlying property, and the lessee also has the ability to increase the benefits it can receive and limit the losses it can suffer by the manner in which it uses the property. As a result, Northern Trust has determined that it is not the primary beneficiary of these VIEs given it lacks the power to direct the activities that most significantly impact the economic performance of the VIEs. Northern Trust’s maximum exposure to loss as a result of its involvement with the leveraged lease trust VIEs is limited to the carrying amounts of its leveraged lease investments. As of March 31, 2016 and December 31, 2015 , the carrying amounts of these investments, which are included in loans and leases in the consolidated balance sheets, were $320.8 million and $389.4 million , respectively. Northern Trust’s funding requirements relative to the VIEs are limited to its invested capital. Northern Trust has no other liquidity arrangements or obligations to purchase assets of the VIEs that would expose Northern Trust to a loss. Tax Credit Structures. Northern Trust invests in qualified affordable housing projects and community development entities (collectively, community development projects) that are designed to generate a return primarily through the realization of tax credits. The community development projects are formed as limited partnerships and LLCs in which Northern Trust invests as a limited partner/investor member through equity contributions. The economic performance of the community development projects, which are VIEs, is subject to the performance of their underlying investment and their ability to operate in compliance with the rules and regulations necessary for the qualification of tax credits generated by equity investments. Northern Trust has determined that it is not the primary beneficiary of any community development projects as it lacks the power to direct the activities that most significantly impact the economic performance of the underlying investments or to affect their ability to operate in compliance with the rules and regulations necessary for the qualification of tax credits generated by equity investments. This power is held by the general partners and managing members who exercise full and exclusive control of the operations of the VIEs. Northern Trust’s maximum exposure to loss as a result of its involvement with community development projects is limited to the carrying amount of its investments, including any undrawn commitments. As of March 31, 2016 and December 31, 2015 , the carrying amount of investments in community development projects that generate tax credits, included in other assets in the consolidated balance sheets, totaled $161.6 million and $173.5 million , respectively. As of March 31, 2016 and December 31, 2015 , liabilities related to undrawn commitments on investments in tax credit community development projects, included in other liabilities in the consolidated balance sheets, totaled $10.1 million and $10.5 million , respectively. Northern Trust’s funding requirements are limited to its invested capital and undrawn commitments for future equity contributions. Northern Trust has no exposure to loss from liquidity arrangements and no obligation to purchase assets of the community development projects. Affordable housing tax credits and other tax benefits attributable to community development projects totaled $12.0 million and $13.2 million , respectively, for the three months ended March 31, 2016 and 2015 , respectively. Investment Funds. Northern Trust acts as asset manager for various funds in which clients of Northern Trust are investors. As an asset manager of funds, Northern Trust earns a competitively priced fee that is based on assets managed and varies with each fund’s investment objective. Based on its analysis, Northern Trust has determined that it is not the primary beneficiary of these VIEs under GAAP. Some of the funds (Funds) for which Northern Trust acts as asset manager comply or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds and therefore are exempt from the consolidation requirements in ASU 2015-02. For the three months ended March 31, 2016 , Northern Trust voluntarily waived $7.7 million of money market mutual fund fees of the Funds. Northern Trust does not have any explicit arrangements to provide financial support to the Funds. Any potential future support of the Funds will be at the discretion of Northern Trust after an evaluation of the specific facts and circumstances. Periodically, Northern Trust makes seed capital investments to certain funds. As of March 31, 2016 and December 31, 2015 , Northern Trust had a $27.0 million and $25.3 million investment, valued using net asset value per share and included in other assets, and a $23.5 million and $25.0 million unfunded commitment related to seed capital investments, respectively. |
Contingent Liabilities
Contingent Liabilities | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities | Contingent Liabilities Commitments, Letters of Credit and Indemnifications . Northern Trust, in the normal course of business, enters into various types of commitments and issues letters of credit to meet the liquidity and credit enhancement needs of its clients. Legally binding commitments to extend credit generally have fixed expiration dates or other termination clauses. Since a significant portion of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future loans or liquidity requirements. Legally binding commitments to extend credit totaled $37.4 billion and $37.2 billion as of March 31, 2016 and December 31, 2015 , respectively. Standby letters of credit obligate Northern Trust to meet certain financial obligations of its clients, if, under the contractual terms of the agreement, the clients are unable to do so. These instruments are primarily issued to support public and private financial commitments, including commercial paper, bond financing, initial margin requirements on futures exchanges and similar transactions. Northern Trust is obligated to meet the entire financial obligation of these agreements and in certain cases is able to recover the amounts paid through recourse against collateral received or other participants. Standby letters of credit outstanding were $4.3 billion as of March 31, 2016 and December 31, 2015 . As part of its securities custody activities and at the direction of its clients, Northern Trust lends securities owned by clients to borrowers who are reviewed and approved by the Northern Trust Counterparty Risk Management Committee. In connection with these activities, Northern Trust has issued indemnifications to certain clients against certain losses that are a direct result of a borrower’s failure to return securities when due, should the value of such securities exceed the value of the collateral required to be posted. Borrowers are required to collateralize fully securities received with cash or marketable securities. As securities are loaned, collateral is maintained at a minimum of 100% of the fair value of the securities plus accrued interest. The collateral is revalued on a daily basis. The amount of securities loaned as of March 31, 2016 and December 31, 2015 subject to indemnification was $97.2 billion and $94.5 billion , respectively. Because of the credit quality of the borrowers and the requirement to collateralize fully securities borrowed, management believes that the exposure to credit loss from this activity is not significant and no liability was recorded as of March 31, 2016 or December 31, 2015 , related to these indemnifications. Legal Proceedings. In the normal course of business, the Corporation and its subsidiaries are routinely defendants in or parties to a number of pending and threatened legal actions, including, but not limited to, actions brought on behalf of various claimants or classes of claimants, regulatory matters, employment matters and challenges from tax authorities regarding the amount of taxes due. In certain of these actions and proceedings, claims for substantial monetary damages or adjustments to recorded tax liabilities are asserted. Based on current knowledge, after consultation with legal counsel and after taking into account current accruals, management does not believe that losses, if any, arising from pending litigation or threatened legal actions or regulatory matters will have a material adverse effect on the consolidated financial position or liquidity of the Corporation, although such matters could have a material adverse effect on the Corporation’s operating results for a particular period. Under GAAP, (i) an event is “probable” if the “future event or events are likely to occur”; (ii) an event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely”; and (iii) an event is “remote” if “the chance of the future event or events occurring is slight.” For the reasons set out in this paragraph, the outcome of some matters is inherently difficult to predict and/or the range of loss cannot be reasonably estimated. This may be the case in matters that (i) will be decided by a jury, (ii) are in early stages, (iii) involve uncertainty as to the likelihood of a class being certified or the ultimate size of the class, (iv) are subject to appeals or motions, (v) involve significant factual issues to be resolved, including with respect to the amount of damages, (vi) do not specify the amount of damages sought or (vii) seek very large damages based on novel and complex damage and liability legal theories. Accordingly, the Corporation cannot reasonably estimate the eventual outcome of these pending matters, the timing of their ultimate resolution or what the eventual loss, fines or penalties, if any, related to each pending matter will be. In accordance with applicable accounting guidance, the Corporation records accruals for litigation and regulatory matters when those matters present loss contingencies that are both probable and reasonably estimable. When loss contingencies are not both probable and reasonably estimable, the Corporation does not record accruals. No material accruals have been recorded for pending litigation or threatened legal actions or regulatory matters. For a limited number of the matters for which a loss is reasonably possible in future periods, whether in excess of an accrued liability or where there is no accrued liability, the Corporation is able to estimate a range of possible loss. As of March 31, 2016 , the Corporation has estimated the upper end of the range of reasonably possible losses for these matters to be approximately $140 million in the aggregate. This aggregate amount of reasonably possible loss is based upon currently available information and is subject to significant judgment and a variety of assumptions and known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results will vary significantly from the current estimate. In certain other pending matters, there may be a range of reasonably possible losses (including reasonably possible losses in excess of amounts accrued) that cannot be reasonably estimated for the reasons described above. Such matters are not included in the estimate of reasonably possible losses identified above. A number of participants in Northern Trust’s securities lending program, which is associated with its asset servicing business, have commenced either individual lawsuits or purported class actions in which they claim, among other things, that Northern Trust failed to exercise prudence in the investment management of the collateral received from the borrowers of the securities, resulting in losses that they seek to recover. The cases assert various contractual, statutory and common law claims, including claims for breach of fiduciary duty under common law and under the Employee Retirement Income Security Act (ERISA). In 2013, Northern Trust recorded a $19.2 million pre-tax charge in connection with a settlement to resolve certain claims related to two of these lawsuits. Other lawsuits and claims related to securities lending are not part of the previously-announced settlement, and accordingly remain pending. As previously disclosed in April 2014, Northern Trust remains subject to an investigation by the U.S. Securities and Exchange Commission (SEC) related to Northern Trust’s securities lending activities. Northern Trust continues to cooperate with the SEC in this investigation. In January 2015, the Public Prosecutor’s Office of France recommended that certain charges be brought against Northern Trust Fiduciary Services (Guernsey) Limited (NTFS), an indirect subsidiary of the Corporation, relating to the administration of two trusts for which NTFS serves as trustee. In April 2015, a French investigating magistrate judge charged NTFS with complicity in estate tax fraud. Charges also were brought against a number of other persons and entities related to this matter. As trustee, NTFS provided no tax advice and had no involvement in the preparation or filing of the challenged estate tax filings. NTFS has contested the criminal charge in the French court. The trial of all defendants began on January 4, 2016. On January 6, 2016, the trial court postponed the trial in light of certain constitutional questions raised by some of the individual defendants, which are currently being considered by the French Supreme Court and French Constitutional Court. No new trial date has been set. Visa Class B Common Shares. Northern Trust, as a member of Visa U.S.A. Inc. (Visa U.S.A.) and in connection with the 2007 restructuring of Visa U.S.A. and its affiliates and the 2008 initial public offering of Visa Inc. (Visa), received certain Visa Class B common shares. The Visa Class B common shares are subject to certain selling restrictions until the final resolution of the covered litigation noted below, at which time the shares are convertible into Visa Class A common shares based on a conversion rate dependent upon the ultimate cost of resolving the covered litigation. Certain members of Visa U.S.A. are obligated to indemnify Visa for losses resulting from certain litigation relating to interchange fees (the covered litigation). On October 19, 2012, Visa signed a settlement agreement with plaintiff representatives for binding settlement of the covered litigation. On January 14, 2014, the trial court entered a final judgment order approving the settlement with the class plaintiffs, which is subject to appeal. A number of objectors have appealed from that order and more than 30 opt-out cases have been filed by merchants in various federal district courts. The ultimate resolution of the covered litigation and the timing for removal of the selling restrictions on the Visa Class B common shares are uncertain. As of March 31, 2016 , Northern Trust continued to hold approximately 5.2 million Visa Class B common shares, which are recorded at their original cost basis of zero . |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments — Northern Trust is a party to various derivative financial instruments that are used in the normal course of business to meet the needs of its clients, as part of its trading activity for its own account and as part of its risk management activities. These instruments include foreign exchange contracts, interest rate contracts, total return swap contracts, and credit default swap contracts. Northern Trust’s primary risks associated with these instruments are the possibility that interest rates, foreign exchange rates, equity prices, or credit spreads could change in an unanticipated manner, resulting in higher costs or a loss in the underlying value of the instrument. These risks are mitigated by establishing limits, monitoring the level of actual positions taken against such established limits and monitoring the level of any interest rate sensitivity gaps created by such positions. When establishing position limits, market liquidity and volatility, as well as experience in each market, are taken into account. Credit risk associated with derivative instruments relates to the failure of the counterparty and the failure of Northern Trust to pay based on the contractual terms of the agreement, and is generally limited to the unrealized fair value gains and losses, respectively, on these instruments, net of any cash collateral received or deposited. The amount of credit risk will increase or decrease during the lives of the instruments as interest rates, foreign exchange rates or other underlying exposures fluctuate. Northern Trust’s risk is controlled by limiting such activity to an approved list of counterparties and by subjecting such activity to the same credit and quality controls as are followed in lending and investment activities. Credit Support Annexes and other similar agreements are currently in place with a number of Northern Trust’s counterparties which mitigate the aforementioned credit risk associated with derivative activity conducted with those counterparties by requiring that significant net unrealized fair value gains be supported by collateral placed with Northern Trust. All derivative financial instruments, whether designated as hedges or not, are recorded in the consolidated balance sheets at fair value within other assets or other liabilities. As noted in the discussions below, the manner in which changes in the fair value of a derivative is accounted for in the consolidated statements of income depends on whether the contract has been designated as a hedge and qualifies for hedge accounting under GAAP. Northern Trust has elected to net derivative assets and liabilities when legally enforceable master netting arrangements or similar agreements exist between Northern Trust and the counterparty. Derivative assets and liabilities recorded in the consolidated balance sheets were each reduced by $1.7 billion and $1.3 billion as of March 31, 2016 and December 31, 2015 , respectively, as a result of master netting arrangements and similar agreements in place. Derivative assets and liabilities recorded at March 31, 2016 , also reflect reductions of $871.9 million and $1.2 billion , respectively, as a result of cash collateral received from and deposited with derivative counterparties, respectively. This compares with reductions of derivative assets and liabilities of $322.8 million and $440.3 million , respectively, at December 31, 2015 . Additional cash collateral received from and deposited with derivative counterparties totaling $96.5 million and $37.3 million , respectively, as of March 31, 2016 , and $31.1 million and $27.3 million , respectively, as of December 31, 2015 , were not offset against derivative assets and liabilities in the consolidated balance sheets as the amounts exceeded the net derivative positions with those counterparties. Northern Trust centrally clears eligible interest rate derivative instruments as required under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Securities posted as collateral for these transactions totaled $35.9 million and $15.4 million at March 31, 2016 and December 31, 2015 , respectively, are not offset against derivative assets and liabilities in the consolidated balance sheets, and the counterparty receiving the securities as collateral does not have the right to repledge or sell the securities. Certain master netting arrangements Northern Trust enters into with derivative counterparties contain credit-risk-related contingent features in which the counterparty has the option to declare Northern Trust in default and accelerate cash settlement of net derivative liabilities with the counterparty in the event Northern Trust’s credit rating falls below specified levels. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position was $1.5 billion and $553.2 million at March 31, 2016 and December 31, 2015 , respectively. Cash collateral amounts deposited with derivative counterparties on those dates included $1.1 billion and $163.0 million , respectively, posted against these liabilities, resulting in a net maximum amount of termination payments that could have been required at March 31, 2016 and December 31, 2015 , of $351.1 million and $390.2 million , respectively. Accelerated settlement of these liabilities would not have a material effect on the consolidated financial position or liquidity of Northern Trust. Foreign exchange contracts are agreements to exchange specific amounts of currencies at a future date, at a specified rate of exchange. Foreign exchange contracts are entered into primarily to meet the foreign exchange needs of clients. Foreign exchange contracts are also used for trading purposes and risk management. For risk management purposes, Northern Trust uses foreign exchange contracts to reduce its exposure to changes in foreign exchange rates relating to certain forecasted non-functional-currency-denominated revenue and expenditure transactions, foreign-currency-denominated assets and liabilities and net investments in non-U.S. affiliates. Interest rate contracts include swap and option contracts. Interest rate swap contracts involve the exchange of fixed and floating rate interest payment obligations without the exchange of the underlying principal amounts. Northern Trust enters into interest rate swap contracts with its clients and also may utilize such contracts to reduce or eliminate the exposure to changes in the cash flows or fair value of hedged assets or liabilities due to changes in interest rates. Interest rate option contracts may include caps, floors, collars and swaptions, and provide for the transfer or reduction of interest rate risk, typically in exchange for a fee. Northern Trust enters into option contracts primarily as a seller of interest rate protection to clients. Northern Trust receives a fee at the outset of the agreement for the assumption of the risk of an unfavorable change in interest rates. This assumed interest rate risk is then mitigated by entering into an offsetting position with an outside counterparty. Northern Trust may also purchase or enter into option contracts for risk management purposes including to reduce the exposure to changes in the cash flows of hedged assets due to changes in interest rates. Client-Related and Trading Derivative Instruments . Approximately 97% of Northern Trust’s derivatives outstanding at March 31, 2016 and December 31, 2015 , measured on a notional value basis, relate to client-related and trading activities. These activities consist principally of providing foreign exchange services to clients in connection with Northern Trust’s global custody business. However, in the normal course of business, Northern Trust also engages in trading of currencies for its own account. The following table shows the notional and fair values of client-related and trading derivative financial instruments. Notional amounts of derivative financial instruments do not represent credit risk, and are not recorded in the consolidated balance sheets. They are used merely to express the volume of this activity. Northern Trust’s credit-related risk of loss is limited to the positive fair value of the derivative instrument, which is significantly less than the notional amount. Table 51: Notional and Fair Values of Client-Related and Trading Derivative Financial Instruments March 31, 2016 December 31, 2015 Notional Value Fair Value Notional Value Fair Value (In Millions) Asset Liability Asset Liability Foreign Exchange Contracts $ 264,219.3 $ 3,940.3 $ 3,948.2 $ 246,628.5 $ 2,541.8 $ 2,500.4 Interest Rate Contracts 6,534.1 175.5 172.9 6,209.5 111.1 108.5 Total $ 270,753.4 $ 4,115.8 $ 4,121.1 $ 252,838.0 $ 2,652.9 $ 2,608.9 Changes in the fair value of client-related and trading derivative instruments are recognized currently in income. The following table shows the location and amount of gains and losses recorded in the consolidated statements of income for the three months ended March 31, 2016 and 2015 . Table 52: Location and Amount of Gains and Losses Recorded in Income Amount of Derivative Gain Recognized in Income Location of Derivative Gain Recognized in Income Three Months Ended (In Millions) 2016 2015 Foreign Exchange Contracts Foreign Exchange Trading Income $ 60.5 $ 71.6 Interest Rate Contracts Security Commissions and Trading Income 4.1 4.9 Total $ 64.6 $ 76.5 Risk Management Instruments. Northern Trust uses derivative instruments to hedge its exposure to foreign currency, interest rate, equity price, and credit risk. Certain hedging relationships are formally designated and qualify for hedge accounting under GAAP as fair value, cash flow or net investment hedges. Other derivatives that are entered into for risk management purposes as economic hedges are not formally designated as hedges and changes in fair value are recognized currently in other operating income. In order to qualify for hedge accounting, a formal assessment is performed on a calendar-quarter basis to verify that derivatives used in designated hedging transactions continue to be highly effective in offsetting the changes in fair value or cash flows of the hedged item. If a derivative ceases to be highly effective, matures, is sold or is terminated, or if a hedged forecasted transaction is no longer probable of occurring, hedge accounting is terminated and the derivative is treated as if it were a trading instrument. The following table identifies the types and classifications of derivative instruments formally designated as hedges under GAAP and used by Northern Trust to manage risk, their notional and fair values, and the respective risks addressed. Table 53: Notional and Fair Value of Designated Risk Management Derivative Financial Instruments March 31, 2016 December 31, 2015 Derivative Instrument Risk Classification Notional Value Fair Value Notional Value Fair Value (In Millions) Asset Liability Asset Liability Fair Value Hedges Available for Sale Investment Securities Interest Rate Swap Contracts Interest Rate $ 3,274.8 $ 3.5 $ 39.5 $ 3,042.1 $ 10.8 $ 19.8 Senior Notes and Long-Term Subordinated Debt Interest Rate Swap Contracts Interest Rate 1,250.0 148.8 2.7 1,250.0 104.6 2.2 Cash Flow Hedges Forecasted Foreign Currency Denominated Transactions and Investment Securities Foreign Exchange Contracts Foreign Currency 379.4 8.5 9.1 367.4 8.5 13.8 Available for Sale Investment Securities Interest Rate Contracts Interest Rate 985.0 6.3 — 935.0 2.0 0.7 Net Investment Hedges Net Investments in Non-U.S. Affiliates Foreign Exchange Contracts Foreign Currency 2,190.3 — 70.7 1,961.5 72.9 1.5 Total $ 8,079.5 $ 167.1 $ 122.0 $ 7,556.0 $ 198.8 $ 38.0 Derivatives are designated as fair value hedges to limit Northern Trust’s exposure to changes in the fair value of assets and liabilities due to movements in interest rates. For a fair value hedge, changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability attributable to the hedged risk are recorded currently in income. The following table shows the location and amount of derivative gains and losses recorded in the consolidated statements of income related to fair value hedges for the three months ended March 31, 2016 and 2015 . Table 54: Location and Amount of Derivative Gains and Losses Recorded in Income Location of Derivative Gain/(Loss) Recognized in Income Amount of Derivative Gain/(Loss) Recognized in Income Derivative Instrument Three Months Ended (In Millions) 2016 2015 Available for Sale Investment Securities Interest Rate Swap Contracts Interest Income $ (34.7 ) $ (17.3 ) Senior Notes and Long-Term Subordinated Debt Interest Rate Swap Contracts Interest Expense 47.4 29.8 Total $ 12.7 $ 12.5 Northern Trust applies the “shortcut” method of accounting, available under GAAP, to substantially all of its fair value hedges, which assumes there is no ineffectiveness in a hedge. For fair value hedges that do not qualify for the “shortcut” method of accounting, Northern Trust utilizes regression analysis, the “long-haul” method of accounting, in assessing whether the hedging relationships are highly effective at inception and quarterly thereafter. There was no ineffectiveness or changes in the fair value of hedged items recognized in income for fair value hedges accounted for under the “long-haul” method of accounting during the three month periods ended March 31, 2016 and 2015 . Derivatives are also designated as cash flow hedges in order to minimize the variability in cash flows of earning assets or forecasted transactions caused by movements in interest or foreign exchange rates. There was no ineffectiveness recognized in income for cash flow hedges during the three months ended March 31, 2016 and 2015 . As of March 31, 2016 , 23 months was the maximum length of time over which the exposure to variability in future cash flows of forecasted foreign-currency-denominated transactions was being hedged. The following table provides cash flow hedge derivative gains and losses recognized in AOCI and the amounts reclassified to income during the three months ended March 31, 2016 and 2015 . Table 55: Cash Flow Hedge Derivative Gains and Losses Recognized in AOCI and Reclassified to Income (In Millions) Foreign Exchange Contracts (Before Tax) Interest Rate Contracts (Before Tax) Three Months Ended March 31, 2016 2015 2016 2015 Net Gain/(Loss) Recognized in AOCI $ 4.2 $ (7.9 ) $ 5.2 $ 3.2 Net Gain/(Loss) Reclassified from AOCI to Net Income Other Operating Income (1.1 ) (1.6 ) — — Interest Income — — 0.9 1.1 Other Operating Expense (0.4 ) (0.5 ) — — Total $ (1.5 ) $ (2.1 ) $ 0.9 $ 1.1 There were no gains or losses reclassified into earnings during the three months ended March 31, 2016 and 2015 , as a result of the discontinuance of forecasted transactions that were no longer probable of occurring. It is estimated that a net loss of $1.8 million will be reclassified into net income within the next twelve months relating to cash flow hedges of foreign currency denominated transactions and investment securities. It is estimated that a net gain of $2.8 million will be reclassified into net income upon the receipt of interest payments on earning assets within the next twelve months relating to cash flow hedges of available for sale investment securities. Certain foreign exchange contracts and qualifying nonderivative instruments are designated as net investment hedges to minimize Northern Trust’s exposure to variability in the foreign currency translation of net investments in non-U.S. branches and subsidiaries. There was no ineffectiveness recorded during the three months ended March 31, 2016 and 2015 . Amounts recorded in AOCI are reclassified to net income only upon the sale or liquidation of an investment in a non-U.S. branch or subsidiary. The following table provides net investment hedge gains and losses recognized in AOCI during the three months ended March 31, 2016 and 2015 . Table 56: Net Investment Hedge Gains and Losses Recognized in AOCI Hedging Gain / (Loss) Recognized in OCI (Before Tax) Three Months Ended (In Millions) 2016 2015 Foreign Exchange Contracts $ (26.5 ) $ 111.6 Sterling Denominated Subordinated Debt — 5.0 Total $ (26.5 ) $ 116.6 Derivatives that are not formally designated as a hedge under GAAP are entered into for risk management purposes. Foreign exchange contracts are entered into to manage the foreign currency risk of non-U.S.-dollar-denominated assets and liabilities, the net investment in certain non-U.S. affiliates, commercial loans and forecasted foreign-currency-denominated transactions. A swap related to the sale of certain Visa Class B common shares was entered into which retains the risks associated with the ultimate conversion of the Visa Class B common shares into Visa Class A common shares. Credit default swaps were entered into to manage credit risk associated with certain loans and loan commitments. Total return swaps are entered into to manage the equity price risk associated with certain investments. The following table identifies the types of risk management derivative instruments not formally designated as hedges and their notional amounts and fair values. Table 57: Notional and Fair Values of Non-Designated Risk Management Derivative Instruments (In Millions) March 31, 2016 December 31, 2015 Notional Value Fair Value Notional Value Fair Value Asset Liability Asset Liability Foreign Exchange Contracts $ 274.8 $ 3.8 $ 0.4 $ 244.6 $ 0.2 $ 3.7 Other Financial Derivatives (1) 200.3 — 10.4 152.8 — 10.9 Total $ 475.1 $ 3.8 $ 10.8 $ 397.4 $ 0.2 $ 14.6 (1) This line includes a swap related to the sale of certain Visa Class B common shares, total return swap contracts, and credit default swap contracts. Changes in the fair value of derivative instruments not formally designated as hedges are recognized currently in income. The following table provides the location and amount of gains and losses recorded in the consolidated statements of income for the three months ended March 31, 2016 and 2015 . Table 58: Location and Amount of Gains and Losses Recorded in Income for Non-Designated Risk Management Derivative Instruments (In Millions) Location of Derivative Gain / (Loss) Recognized in Income Amount of Derivative Gain / (Loss) Recognized in Income Three Months Ended 2016 2015 Foreign Exchange Contracts Other Operating Income $ 2.7 $ (8.7 ) Other Financial Derivatives (1) Other Operating Income (0.8 ) — Total $ 1.9 $ (8.7 ) (1) This line includes a swap related to the sale of certain Visa Class B common shares, total return swap contracts, and credit default swap contracts. |
Offsetting of Assets and Liabil
Offsetting of Assets and Liabilities | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Offsetting of Assets and Liabilities | Offsetting of Assets and Liabilities The following tables provide information regarding the offsetting of derivative assets and securities purchased under agreements to resell within the consolidated balance sheets as of March 31, 2016 and December 31, 2015 . Table 59: Offsetting of Derivative Assets and Securities Purchased Under Agreements to Resell March 31, 2016 (In Millions) Gross Recognized Assets Gross Amounts Offset Net Amounts Presented Gross Amounts Not Offset Net Amount (3) Derivative Assets (1) Foreign Exchange Contracts Over the Counter (OTC) $ 3,134.9 $ 1,523.1 $ 1,611.8 $ — $ 1,611.8 Interest Rate Swaps OTC 232.5 22.3 210.2 — 210.2 Interest Rate Swaps Exchange Cleared 101.5 96.8 4.7 — 4.7 Cross Product Netting Adjustment — 42.4 — — — Cross Product Collateral Adjustment — 871.9 — — — Total Derivatives Subject to a Master Netting Arrangement 3,468.9 2,556.5 912.4 — 912.4 Total Derivatives Not Subject to a Master Netting Arrangement 817.7 — 817.7 — 817.7 Total Derivatives $ 4,286.6 $ 2,556.5 $ 1,730.1 $ — $ 1,730.1 Securities Purchased under Agreements to Resell (2) $ 1,755.2 $ — $ 1,755.2 $ 1,755.2 $ — December 31, 2015 (In Millions) Gross Recognized Assets Gross Amounts Offset Net Amounts Presented Gross Amounts Not Offset Net Amount (3) Derivative Assets (1) Foreign Exchange Contracts OTC $ 1,636.0 $ 1,194.3 $ 441.7 $ — $ 441.7 Interest Rate Swaps OTC 170.3 21.5 $ 148.8 — $ 148.8 Interest Rate Swaps Exchange Cleared 58.2 38.1 $ 20.1 — $ 20.1 Cross Product Netting Adjustment — 23.5 $ — — $ — Cross Product Collateral Adjustment — 322.8 $ — — $ — Total Derivatives Subject to a Master Netting Arrangement 1,864.5 1,600.2 264.3 — 264.3 Total Derivatives Not Subject to a Master Netting Arrangement 987.4 — 987.4 — 987.4 Total Derivatives 2,851.9 1,600.2 1,251.7 — 1,251.7 Securities Purchased under Agreements to Resell (2) $ 1,600.0 $ — $ 1,600.0 $ 1,600.0 $ — (1) Derivative assets are reported in other assets in the consolidated balance sheets. Other assets (excluding derivative assets) totaled $3,334.4 million and $3,212.7 million as of March 31, 2016 and December 31, 2015 , respectively. (2) 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 $10.0 million and $14.2 million as of March 31, 2016 and December 31, 2015 , respectively. (3) 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, 2016 and December 31, 2015 . The following tables provide information regarding the offsetting of derivative liabilities and securities sold under agreements to repurchase within the consolidated balance sheets as of March 31, 2016 and December 31, 2015 . Table 60: Offsetting of Derivative Liabilities and Securities Sold Under Agreements to Repurchase March 31, 2016 (In Millions) Gross Recognized Liabilities Gross Amounts Offset Net Amounts Presented Gross Amounts Not Offset Net Amount (2) Derivative Liabilities (1) Foreign Exchange Contracts OTC $ 3,210.3 $ 1,523.1 $ 1,687.2 $ — $ 1,687.2 Interest Rate Swaps OTC 118.3 22.3 96.0 — 96.0 Interest Rate Swaps Exchange Cleared 96.8 96.8 — — — Other Financial Derivatives 10.4 — 10.4 — 10.4 Cross Product Netting Adjustment — 42.4 — — — Cross Product Collateral Adjustment — 1,231.4 — — — Total Derivatives Subject to a Master Netting Arrangement 3,435.8 2,916.0 519.8 — 519.8 Total Derivatives Not Subject to a Master Netting Arrangement 818.1 — 818.1 — 818.1 Total Derivatives 4,253.9 2,916.0 1,337.9 — 1,337.9 Securities Sold under Agreements to Repurchase $ 507.1 $ — $ 507.1 $ 507.1 $ — December 31, 2015 (In Millions) Gross Recognized Liabilities Gross Amounts Offset Net Amounts Presented Gross Amounts Not Offset Net Amount (2) Derivative Liabilities (1) Foreign Exchange Contracts OTC $ 2,119.7 $ 1,194.3 $ 925.4 $ — $ 925.4 Interest Rate Swaps OTC 93.1 21.5 71.6 — 71.6 Interest Rate Swaps Exchange Cleared 38.1 38.1 — — — Other Financial Derivatives 10.9 — 10.9 10.9 Cross Product Netting Adjustment — 23.5 — — — Cross Product Collateral Adjustment — 440.2 — — — Total Derivatives Subject to a Master Netting Arrangement 2,261.8 1,717.6 544.2 — 544.2 Total Derivatives Not Subject to a Master Netting Arrangement 399.7 — 399.7 — 399.7 Total Derivatives 2,661.5 1,717.6 943.9 — 943.9 Securities Sold under Agreements to Repurchase $ 546.6 $ — $ 546.6 $ 546.6 $ — (1) Derivative liabilities are reported in other liabilities in the consolidated balance sheets. Other liabilities (excluding derivative liabilities) totaled $2,008.7 million and $2,131.7 million as of March 31, 2016 and December 31, 2015 , respectively. (2) 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, 2016 and December 31, 2015 . All of Northern Trust’s securities sold under agreements to repurchase (repurchase agreements) and securities purchased under agreements to resell (reverse repurchase agreements) involve the transfer of financial assets in exchange for cash subject to a right and obligation to repurchase those assets for an agreed upon amount. In the event of a repurchase failure, the cash or financial assets are available for offset. All of Northern Trust’s repurchase agreements and reverse repurchase agreements are subject to a master netting arrangement, which sets forth the rights and obligations for repurchase and offset. Under the master netting arrangement, Northern Trust is entitled to set off receivables from and collateral placed with a single counterparty against obligations owed to that counterparty. In addition, collateral held by Northern Trust can be offset against receivables from that counterparty. Derivative asset and liability positions with a single counterparty can be offset against each other in cases where legally enforceable master netting arrangements or similar agreements exist. Derivative assets and liabilities can be further offset by cash collateral received from, and deposited with, the transacting counterparty. The basis for this view is that, upon termination of transactions subject to a master netting arrangement or similar agreement, the individual derivative receivables do not represent resources to which general creditors have rights and individual derivative payables do not represent claims that are equivalent to the claims of general creditors. Northern Trust centrally clears those interest rate derivative instruments addressed under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act. These transactions are subject to an agreement similar to a master netting arrangement which has the same rights of offset as described above. |
Recent Accounting Pronounceme29
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (ASU 2014-09). ASU 2014-09 is a converged standard between the FASB and the International Accounting Standards Board (IASB) that provides a single comprehensive revenue recognition model for all contracts with customers across transactions and industries. The primary objective of ASU 2014-09 is revenue recognition that represents the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for interim and annual reporting periods beginning after December 15, 2017. Northern Trust is currently assessing the impact of adoption of ASU 2014-09. In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (ASU 2016-01). ASU 2016-01 requires equity investments (except those accounted for under the equity method or those that result in consolidation) to be measured at fair value with changes in fair value recognized in net income unless a policy election is made for investments without readily determinable fair values. Additionally, ASU 2016-01 requires public entities to use the exit price notion when measuring the fair value of financial instruments for measurement purposes and eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost on the balance sheet. Furthermore, it requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. ASU 2016-01 is effective for interim and annual periods beginning after December 15, 2017. Northern Trust is currently assessing the impact of adoption of ASU 2016-01. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (ASU 2016-02). ASU 2016-02 introduces a lessee model that brings most leases on the balance sheet, with certain specified scope exceptions. Specifically within the lessee model under ASU 2016-02, a lessee is required to recognize in the statement of financial position a liability to make lease payments, known as the lease liability, and a right-of-use asset representing its right to use the underlying asset over the lease term. While ASU 2016-02 retains a distinction between finance and operating leases similar to current GAAP, it eliminates the required use of bright-line tests for determining the lease classification. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018, although early adoption is permitted. Northern Trust is currently assessing the impact of adoption of ASU 2016-02. In March 2016, the FASB issued ASU No. 2016-05, “Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships” (ASU 2016-05). ASU 2016-05 clarifies that a change in counterparty to a derivative instrument that has been designated as a hedging instrument under Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU 2016-05 is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. Although Northern Trust is currently assessing the impact of ASU 2016-05, it is not expected to impact significantly Northern Trust’s consolidated financial position or results of operations. In March 2016, the FASB issued ASU No. 2016-06, “Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments” (ASU 2016-06). The amendments in ASU 2016-06 clarify the steps that are required when assessing whether the economic characteristics and risks of call or put options are clearly and closely related to the economic characteristics and risks of their debt hosts. When a call or put option is contingently exercisable, an entity does not have to assess whether the event that triggers the ability to exercise a call or put option is related to interest rates or credit risks. ASU 2016-06 is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. The adoption of ASU 2016-06 by Northern Trust, effective January 1, 2017, is not expected to impact significantly Northern Trust’s consolidated financial position or results of operations. In March 2016, the FASB issued ASU No. 2016-07, “Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting” (ASU 2016-07). ASU 2016-07 eliminates the requirement to adjust the investment, results of operations, and retained earnings on a retroactive basis when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence. ASU 2016-07 provides that, upon qualifying for the equity method of accounting, the equity method investor is required to add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest. ASU 2016-07 is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. Although Northern Trust is currently assessing the impact of ASU 2016-07, it is not expected to impact significantly Northern Trust’s consolidated financial position or results of operations. In March 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718)” (ASU 2016-09). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. Northern Trust is currently assessing the impact of adoption of ASU 2016-09. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Recurring Basis Hierarchy Leveling | The following tables present assets and liabilities measured at fair value on a recurring basis as of March 31, 2016 and December 31, 2015 , segregated by fair value hierarchy level. Table 23: Recurring Basis Hierarchy Leveling (In Millions) Level 1 Level 2 Level 3 Netting Assets/Liabilities at Fair Value March 31, 2016 Securities Available for Sale U.S. Government $ 6,857.1 $ — $ — $ — $ 6,857.1 Obligations of States and Political Subdivisions — 189.8 — — 189.8 Government Sponsored Agency — 16,892.6 — — 16,892.6 Non-U.S. Government — 280.7 — — 280.7 Corporate Debt — 3,857.8 — — 3,857.8 Covered Bonds — 1,374.8 — — 1,374.8 Sub-Sovereign, Supranational and Non-U.S. Agency Bonds — 1,070.2 — — 1,070.2 Other Asset-Backed — 2,300.1 — — 2,300.1 Auction Rate — — 16.6 — 16.6 Commercial Mortgage-Backed — 406.9 — — 406.9 Other — 83.6 — — 83.6 Total Available for Sale 6,857.1 26,456.5 16.6 — 33,330.2 Trading Account — 0.2 — — 0.2 Total Available for Sale and Trading Securities 6,857.1 26,456.7 16.6 — 33,330.4 Other Assets Derivative Assets Foreign Exchange Contracts — 3,952.6 — — 3,952.6 Interest Rate Contracts — 334.0 — — 334.0 Total Derivative Assets — 4,286.6 — (2,556.5 ) 1,730.1 Other Liabilities Derivative Liabilities Foreign Exchange Contracts — 4,028.4 — — 4,028.4 Interest Rate Contracts — 215.1 — — 215.1 Other Financial Derivatives (1) — 0.7 9.7 — 10.4 Total Derivative Liabilities $ — $ 4,244.2 $ 9.7 $ (2,916.0 ) $ 1,337.9 Note: Northern Trust has elected to net derivative assets and liabilities when legally enforceable master netting arrangements or similar agreements exist between Northern Trust and the counterparty. As of March 31, 2016 , derivative assets and liabilities shown above also include reductions of $871.9 million and $1.2 billion , respectively, as a result of cash collateral received from and deposited with derivative counterparties. (1) This line includes a swap related to the sale of certain Visa Class B common shares, total return swap contracts, and credit default swap contracts. (In Millions) Level 1 Level 2 Level 3 Netting Assets/Liabilities at Fair Value December 31, 2015 Securities Available for Sale U.S. Government $ 6,178.3 $ — $ — $ — $ 6,178.3 Obligations of States and Political Subdivisions — 36.4 — — 36.4 Government Sponsored Agency — 16,366.8 — — 16,366.8 Non-U.S. Government — 309.5 — — 309.5 Corporate Debt — 3,712.2 — — 3,712.2 Covered Bonds — 1,870.2 — — 1,870.2 Sub-Sovereign, Supranational and Non-U.S. Agency Bonds — 859.4 — — 859.4 Other Asset-Backed — 2,500.1 — — 2,500.1 Auction Rate — — 17.1 — 17.1 Commercial Mortgage-Backed 374.4 374.4 Other — 93.5 — — 93.5 Total Available for Sale 6,178.3 26,122.5 17.1 — 32,317.9 Trading Account — 1.2 — — 1.2 Total Available for Sale and Trading Securities 6,178.3 26,123.7 17.1 — 32,319.1 Other Assets Derivative Assets Foreign Exchange Contracts — 2,623.4 — — 2,623.4 Interest Rate Contracts — 228.5 — — 228.5 Total Derivative Assets — 2,851.9 — (1,600.2 ) 1,251.7 Other Liabilities Derivative Liabilities Foreign Exchange Contracts — 2,519.4 — — 2,519.4 Interest Rate Contracts — 131.2 — — 131.2 Other Financial Derivatives (1) $ — $ 0.1 $ 10.8 $ — 10.9 Total Derivative Liabilities $ — $ 2,650.7 $ 10.8 $ (1,717.6 ) $ 943.9 Note: Northern Trust has elected to net derivative assets and liabilities when legally enforceable master netting arrangements or similar agreements exist between Northern Trust and the counterparty. As of December 31, 2015 , derivative assets and liabilities shown above also include reductions of $322.8 million and $440.3 million , respectively, as a result of cash collateral received from and deposited with derivative counterparties. (1) This line includes a swap related to the sale of certain Visa Class B common shares and total return swap contracts. |
Changes in Level 3 Assets | The following tables present the changes in Level 3 assets and liabilities for the three months ended March 31, 2016 and 2015 . Table 24: Changes in Level 3 Assets Level 3 Assets (In Millions) Auction Rate Securities Three Months Ended March 31, 2016 2015 Fair Value at January 1 $ 17.1 $ 18.1 Total Gains (Losses): Included in Earnings — — Included in Other Comprehensive Income (1) (0.4 ) (0.3 ) Purchases, Issues, Sales, and Settlements Sales (0.1 ) — Settlements — (0.3 ) Fair Value at March 31 $ 16.6 $ 17.5 (1) Unrealized gains (losses) are included in net unrealized gains (losses) on securities available for sale in the consolidated statements of comprehensive income. |
Changes in Level 3 Liabilities | Table 25: Changes in Level 3 Liabilities Level 3 Liabilities (In Millions) Swap Related to Sale of Certain Visa Class B Common Shares Three Months Ended March 31, 2016 2015 Fair Value at January 1 $ 10.8 $ — Total (Gains) Losses: Included in Earnings (1) (0.3 ) — Included in Other Comprehensive Income — — Purchases, Issues, Sales, and Settlements Purchases — — Settlements (0.8 ) — Fair Value at March 31 $ 9.7 $ — (1) (Gains) losses are recorded in other operating income (expense) in the consolidated statements of income. |
Fair Value of Financial Instruments | The following tables summarize the fair values of all financial instruments. Table 27: Fair Value of Financial Instruments (In Millions) March 31, 2016 Book Value Total Fair Value Fair Value Level 1 Level 2 Level 3 Assets Cash and Due from Banks $ 7,005.0 $ 7,005.0 $ 7,005.0 $ — $ — Federal Funds Sold and Resell Agreements 1,765.2 1,765.2 — 1,765.2 — Interest-Bearing Deposits with Banks 13,535.5 13,535.5 — 13,535.5 — Federal Reserve Deposits 14,415.3 14,415.3 — 14,415.3 — Securities Available for Sale (Note) 33,330.2 33,330.2 6,857.1 26,456.5 16.6 Held to Maturity 5,869.6 5,861.5 28.0 5,833.5 — Trading Account 0.2 0.2 — 0.2 — Loans (excluding Leases) Held for Investment 33,478.4 33,715.2 — — 33,715.2 Held for Sale 1.4 1.4 — — 1.4 Client Security Settlement Receivables 1,902.7 1,902.7 — 1,902.7 — Other Assets Federal Reserve and Federal Home Loan Bank Stock 253.1 253.1 — 253.1 — Community Development Investments 193.0 199.4 — 199.4 — Employee Benefit and Deferred Compensation 165.4 169.5 117.7 51.8 — Liabilities Deposits Demand, Noninterest-Bearing, Savings and Money Market $ 45,495.2 $ 45,495.2 $ 45,495.2 $ — $ — Savings Certificates and Other Time 1,417.0 1,425.1 — 1,425.1 — Non U.S. Offices Interest-Bearing 50,747.4 50,747.4 — 50,747.4 — Federal Funds Purchased 263.3 263.3 — 263.3 — Securities Sold under Agreements to Repurchase 507.1 507.1 — 507.1 — Other Borrowings 4,009.8 4,009.8 — 4,009.8 — Senior Notes 1,496.1 1,573.3 — 1,573.3 — Long Term Debt (excluding Leases) Subordinated Debt 1,377.9 1,353.6 — 1,353.6 — Floating Rate Capital Debt 277.3 223.5 — 223.5 — Other Liabilities Standby Letters of Credit 45.3 45.3 — — 45.3 Loan Commitments 46.3 46.3 — — 46.3 Derivative Instruments Asset/Liability Management Foreign Exchange Contracts Assets $ 12.3 $ 12.3 $ — $ 12.3 $ — Liabilities 80.2 80.2 — 80.2 — Interest Rate Contracts Assets 158.5 158.5 — 158.5 — Liabilities 42.2 42.2 — 42.2 — Other Financial Derivatives Liabilities (1) 10.4 10.4 — 0.7 9.7 Client-Related and Trading Foreign Exchange Contracts Assets 3,940.3 3,940.3 — 3,940.3 — Liabilities 3,948.2 3,948.2 — 3,948.2 — Interest Rate Contracts Assets 175.5 175.5 — 175.5 — Liabilities 172.9 172.9 — 172.9 — Note: Refer to the table located on page 30 for the disaggregation of available for sale securities. (1) This line includes a swap related to the sale of certain Visa Class B common shares, credit default swaps and total return swaps. (In Millions) December 31, 2015 Book Value Total Fair Value Fair Value Level 1 Level 2 Level 3 Assets Cash and Due from Banks $ 6,444.6 $ 6,444.6 $ 6,444.6 $ — $ — Federal Funds Sold and Resell Agreements 1,614.2 1,614.2 — 1,614.2 — Interest-Bearing Deposits with Banks 14,143.1 14,143.1 — 14,143.1 — Federal Reserve Deposits 16,398.5 16,398.5 — 16,398.5 — Securities Available for Sale (Note) 32,317.9 32,317.9 6,178.3 26,122.5 17.1 Held to Maturity 5,248.3 5,227.5 26.0 5,201.5 — Trading Account 1.2 1.2 — 1.2 — Loans (excluding Leases) Held for Investment 32,432.7 32,596.5 — — 32,596.5 Held for Sale 12.0 12.0 — — 12.0 Client Security Settlement Receivables 2,157.0 2,157.0 — 2,157.0 — Other Assets Federal Reserve and Federal Home Loan Bank Stock 253.1 253.1 — 253.1 — Community Development Investments 173.5 177.1 — 177.1 — Employee Benefit and Deferred Compensation 155.3 153.4 104.2 49.2 — Liabilities Deposits Demand, Noninterest-Bearing, Savings and Money Market $ 45,191.3 $ 45,191.3 $ 45,191.3 $ — $ — Savings Certificates and Other Time 1,455.8 1,463.5 — 1,463.5 — Non U.S. Offices Interest-Bearing 50,221.8 50,221.8 — 50,221.8 — Federal Funds Purchased 351.5 351.5 — 351.5 — Securities Sold under Agreements to Repurchase 546.6 546.6 — 546.6 — Other Borrowings 4,055.1 4,055.7 — 4,055.7 — Senior Notes 1,497.4 1,531.8 — 1,531.8 — Long Term Debt (excluding Leases) Subordinated Debt 1,341.6 1,332.2 — 1,332.2 — Floating Rate Capital Debt 277.3 236.6 — 236.6 — Other Liabilities Standby Letters of Credit 46.6 46.6 — — 46.6 Loan Commitments 48.9 48.9 — — 48.9 Derivative Instruments Asset/Liability Management Foreign Exchange Contracts Assets $ 81.6 $ 81.6 $ — $ 81.6 $ — Liabilities 19.0 19.0 — 19.0 — Interest Rate Contracts Assets 117.4 117.4 — 117.4 — Liabilities 22.7 22.7 — 22.7 — Other Financial Derivatives Liabilities (1) 10.9 10.9 — 0.1 10.8 Client-Related and Trading Foreign Exchange Contracts Assets 2,541.8 2,541.8 — 2,541.8 — Liabilities 2,500.4 2,500.4 — 2,500.4 — Interest Rate Contracts Assets 111.1 111.1 — 111.1 — Liabilities 108.5 108.5 — 108.5 — Note: Refer to the table located on page 31 for the disaggregation of available for sale securities. (1) This line consists of a swap related to the sale of certain Visa Class B common shares and total return swaps. |
Fair Value, Measurements, Recurring | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Level 3 Nonrecurring Basis Significant Unobservable Inputs | The following presents the fair values of, and the valuation techniques, significant unobservable inputs, and quantitative information used to develop significant unobservable inputs for, Northern Trust’s Level 3 assets and liabilities as of March 31, 2016 and December 31, 2015 . Table 22: Level 3 Significant Unobservable Inputs March 31, 2016 Financial Instrument Fair Value Valuation Technique Unobservable Inputs Range of Lives and Rates Auction Rate Securities $ 16.6 million Discounted Cash Flow Remaining lives 0.17 — 8.64 years Discount rates 0.2 % — 3.9% Swap Related to Sale of Certain Visa Class B Common Shares $ 9.7 million Discounted Cash Flow Visa Class A Appreciation 9.5 % — 15.0% Conversion Rate 1.61x — 1.65x Expected Duration 1.25 — 4.25 years December 31, 2015 Financial Instrument Fair Value Valuation Technique Unobservable Inputs Range of Lives and Rates Auction Rate Securities $ 17.1 million Discounted Cash Flow Remaining lives 0.42 — 8.64 years Discount rates 0.3 % — 4.4% Swap Related to Sale of Certain Visa Class B Common Shares $ 10.8 million Discounted Cash Flow Visa Class A Appreciation 9.5 % — 15.0% Conversion Rate 1.61x — 1.65x Expected Duration 1.50 — 4.50 years |
Fair Value, Measurements, Nonrecurring | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Level 3 Nonrecurring Basis Significant Unobservable Inputs | The following table provides the fair value of, and the valuation technique, significant unobservable inputs and quantitative information used to develop the significant unobservable inputs for, Northern Trust’s Level 3 assets that were measured at fair value on a nonrecurring basis as of March 31, 2016 and December 31, 2015 . Table 26: Level 3 Nonrecurring Basis Significant Unobservable Inputs March 31, 2016 Financial Instrument Fair Value Valuation Technique Unobservable Input Range of Discounts Applied Loans $10.1 million Market Approach Discount to reflect realizable value 15.0 % - 25.0% OREO $2.5 million Market Approach Discount to reflect realizable value 15.0 % - 20.0% December 31, 2015 Financial Instrument Fair Value Valuation Technique Unobservable Input Range of Discounts Applied Loans $10.4 million Market Approach Discount to reflect realizable value 15.0 % - 25.0% OREO $3.6 million Market Approach Discount to reflect realizable value 15.0 % - 20.0% |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |
Reconciliation of Amortized Cost to Fair Value of Securities Available for Sale | The following tables provide the amortized cost and fair values of securities at March 31, 2016 and December 31, 2015 . Table 28: Reconciliation of Amortized Cost to Fair Value of Securities Available for Sale Securities Available for Sale March 31, 2016 Amortized Cost Gross Unrealized Fair Value (In Millions) Gains Losses U.S. Government $ 6,803.3 $ 53.8 $ — $ 6,857.1 Obligations of States and Political Subdivisions 190.5 0.3 1.0 189.8 Government Sponsored Agency 16,866.1 56.6 30.1 16,892.6 Non-U.S. Government 280.5 0.2 — 280.7 Corporate Debt 3,865.3 10.3 17.8 3,857.8 Covered Bonds 1,377.6 2.1 4.9 1,374.8 Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 1,069.5 2.6 1.9 1,070.2 Other Asset-Backed 2,300.4 1.2 1.5 2,300.1 Auction Rate 16.6 0.5 0.5 16.6 Commercial Mortgage-Backed 406.5 0.7 0.3 406.9 Other 83.6 0.1 0.1 83.6 Total $ 33,259.9 $ 128.4 $ 58.1 $ 33,330.2 Securities Available for Sale December 31, 2015 Amortized Cost Gross Unrealized Fair Value (In Millions) Gains Losses U.S. Government $ 6,180.4 $ 3.4 $ 5.5 $ 6,178.3 Obligations of States and Political Subdivisions 36.4 0.1 0.1 36.4 Government Sponsored Agency 16,370.5 42.8 46.5 16,366.8 Non-U.S. Government 309.5 0.1 0.1 309.5 Corporate Debt 3,744.4 0.9 33.1 3,712.2 Covered Bonds 1,873.3 1.8 4.9 1,870.2 Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 860.9 0.5 2.0 859.4 Other Asset-Backed 2,504.2 0.1 4.2 2,500.1 Auction Rate 16.7 0.5 0.1 17.1 Commercial Mortgage-Backed 378.1 — 3.7 374.4 Other 93.4 0.1 — 93.5 Total $ 32,367.8 $ 50.3 $ 100.2 $ 32,317.9 |
Reconciliation of Amortized Cost to Fair Values of Securities Held to Maturity | Table 29: Reconciliation of Amortized Cost to Fair Value of Securities Held to Maturity Securities Held to Maturity March 31, 2016 Amortized Cost Gross Unrealized Fair Value (In Millions) Gains Losses U.S Government $ 28.0 $ — $ — $ 28.0 Obligations of States and Political Subdivisions 79.3 4.9 — 84.2 Government Sponsored Agency 9.2 0.7 — 9.9 Corporate Debt 85.5 0.1 — 85.6 Covered Bonds 1,578.4 5.2 1.6 1,582.0 Non-U.S. Government 1,077.2 6.7 — 1,083.9 Certificates of Deposit 730.5 0.1 0.2 730.4 Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 2,186.8 10.4 0.5 2,196.7 Other 94.7 — 33.9 60.8 Total $ 5,869.6 $ 28.1 $ 36.2 $ 5,861.5 Securities Held to Maturity December 31, 2015 Amortized Cost Gross Unrealized Fair Value (In Millions) Gains Losses U.S Government $ 26.0 $ — $ — $ 26.0 Obligations of States and Political Subdivisions 89.2 5.2 — 94.4 Government Sponsored Agency 9.9 0.7 — 10.6 Covered Bonds 892.4 0.4 1.9 890.9 Non-U.S. Government 1,118.0 4.8 0.5 1,122.3 Certificates of Deposit 691.6 0.1 0.1 691.6 Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 2,326.2 8.3 0.9 2,333.6 Other 95.0 — 36.9 58.1 Total $ 5,248.3 $ 19.5 $ 40.3 $ 5,227.5 |
Securities Continuous Unrealized Loss Position | The following tables provide information regarding securities that had been in a continuous unrealized loss position for less than twelve months and for twelve months or longer as of March 31, 2016 and December 31, 2015 . Table 31: Securities with Unrealized Losses Securities with Unrealized Losses as of March 31, 2016 Less than 12 Months 12 Months or Longer Total (In Millions) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Obligations of States and Political Subdivisions $ 97.2 $ 1.0 $ — $ — $ 97.2 $ 1.0 Government Sponsored Agency 6,251.9 21.9 1,327.1 8.2 7,579.0 30.1 Corporate Debt 893.3 5.6 1,041.7 12.2 1,935.0 17.8 Covered Bonds 1,054.8 6.5 — — 1,054.8 6.5 Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 578.6 2.3 109.8 0.1 688.4 2.4 Other Asset-Backed 1,383.1 1.4 60.3 0.1 1,443.4 1.5 Certificates of Deposit 314.3 0.2 — — 314.3 0.2 Auction Rate — — 6.0 0.5 6.0 0.5 Commercial Mortgage-Backed 140.5 0.3 — — 140.5 0.3 Other 73.5 12.0 49.6 22.0 123.1 34.0 Total $ 10,787.2 $ 51.2 $ 2,594.5 $ 43.1 $ 13,381.7 $ 94.3 Securities with Unrealized Losses as of December 31, 2015 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 $ 3,888.0 $ 5.5 $ — $ — $ 3,888.0 $ 5.5 Obligations of States and Political Subdivisions 15.1 0.1 — — 15.1 0.1 Government Sponsored Agency 9,208.5 38.7 1,213.6 7.8 10,422.1 46.5 Non-U.S. Government 314.3 0.6 — — 314.3 0.6 Corporate Debt 2,067.6 10.3 1,057.1 22.8 3,124.7 33.1 Covered Bonds 1,598.4 6.7 10.0 0.1 1,608.4 6.8 Sub-Sovereign, Supranational and Non-U.S. Agency Bonds 1,132.9 2.3 109.3 0.6 1,242.2 2.9 Other Asset-Backed 2,122.7 4.0 170.6 0.2 2,293.3 4.2 Certificates of Deposit 180.3 0.1 — — 180.3 0.1 Auction Rate — — 6.4 0.1 6.4 0.1 Commercial Mortgage-Backed 374.4 3.7 — — 374.4 3.7 Other 28.7 13.3 50.7 23.6 79.4 36.9 Total $ 20,930.9 $ 85.3 $ 2,617.7 $ 55.2 $ 23,548.6 $ 140.5 |
Credit Related Impairment Losses Recognized in Earnings on Other Than Temporarily Impaired Securities | he table below provides the cumulative credit-related losses recognized in earnings on debt securities other-than-temporarily impaired. Table 32: Cumulative Credit-Related Losses on Securities Three Months Ended (In Millions) 2016 2015 Cumulative Credit-Related Losses on Securities Held — Beginning of Period $ 5.2 $ 5.2 Plus: Losses on Newly Identified Impairments — — Additional Losses on Previously Identified Impairments — — Less: Current and Prior Period Losses on Securities Sold During the Period — — Cumulative Credit-Related Losses on Securities Held — End of Period $ 5.2 $ 5.2 |
Securities Available for Sale | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |
Remaining Maturity of Securities | The following table provides the remaining maturity of securities as of March 31, 2016 . Table 30: Remaining Maturity of Securities Available for Sale and Held to Maturity March 31, 2016 (In Millions) Amortized Cost Fair Value Available for Sale Due in One Year or Less $ 9,795.2 $ 9,807.1 Due After One Year Through Five Years 17,443.3 17,498.9 Due After Five Years Through Ten Years 4,742.3 4,745.1 Due After Ten Years 1,279.1 1,279.1 Total 33,259.9 33,330.2 Held to Maturity Due in One Year or Less 1,979.0 1,982.8 Due After One Year Through Five Years 3,823.7 3,841.9 Due After Five Years Through Ten Years 13.8 11.1 Due After Ten Years 53.1 25.7 Total $ 5,869.6 $ 5,861.5 Note: Mortgage-backed and asset-backed securities are included in the above table taking into account anticipated future prepayments. |
Held-to-maturity Securities | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |
Remaining Maturity of Securities | March 31, 2016 (In Millions) Amortized Cost Fair Value Available for Sale Due in One Year or Less $ 9,795.2 $ 9,807.1 Due After One Year Through Five Years 17,443.3 17,498.9 Due After Five Years Through Ten Years 4,742.3 4,745.1 Due After Ten Years 1,279.1 1,279.1 Total 33,259.9 33,330.2 Held to Maturity Due in One Year or Less 1,979.0 1,982.8 Due After One Year Through Five Years 3,823.7 3,841.9 Due After Five Years Through Ten Years 13.8 11.1 Due After Ten Years 53.1 25.7 Total $ 5,869.6 $ 5,861.5 Note: Mortgage-backed and asset-backed securities are included in the above table taking into account anticipated future prepayments. |
Securities Sold Under Agreeme32
Securities Sold Under Agreements to Repurchase (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Banking and Thrift [Abstract] | |
Repurchase Agreements Accounted for as Secured Borrowings | The following table provides information regarding repurchase agreements that are accounted for as secured borrowings as of March 31, 2016 . Table 33: Repurchase Agreements Accounted for as Secured Borrowings March 31, 2016 (In Millions) Remaining Contractual Maturity of the Agreements Repurchase Agreements Overnight and Continuous U.S. Treasury and Agency Securities $ 507.1 Total Borrowings $ 507.1 Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 21 $ 507.1 Amounts related to agreements not included in Note 21 $ — |
Loans and Leases (Tables)
Loans and Leases (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Amounts Outstanding for Loans and Leases by Segment and Class | Amounts outstanding for loans and leases, by segment and class, are shown below. Table 34: Loans and Leases (In Millions) March 31, December 31, Commercial Commercial and Institutional $ 9,941.1 $ 9,431.5 Commercial Real Estate 3,902.9 3,848.8 Lease Financing, net 470.6 544.4 Non-U.S. 1,769.9 1,137.7 Other 155.6 194.1 Total Commercial 16,240.1 15,156.5 Personal Residential Real Estate 8,652.6 8,850.7 Private Client 9,232.6 9,136.4 Other 19.6 37.3 Total Personal 17,904.8 18,024.4 Total Loans and Leases 34,144.9 33,180.9 Allowance for Credit Losses Assigned to Loans and Leases (195.6 ) (193.8 ) Net Loans and Leases $ 33,949.3 $ 32,987.1 |
Loan and Lease Segment and Class Balances Segregated by Borrower Ratings into "1 to 3", "4 to 5" and "6 to 9" (Watch List) Categories | Loan and lease segment and class balances as of March 31, 2016 and December 31, 2015 are provided below, segregated by borrower ratings into “1 to 3,” “4 to 5” and “6 to 9” (watch list), categories. Table 35: Borrower Ratings March 31, 2016 December 31, 2015 (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 $ 6,743.8 $ 2,999.5 $ 197.8 $ 9,941.1 $ 6,360.6 $ 2,897.2 $ 173.7 $ 9,431.5 Commercial Real Estate 1,876.2 1,988.8 37.9 3,902.9 1,822.6 1,992.7 33.5 3,848.8 Lease Financing, net 312.5 125.1 33.0 470.6 377.0 133.1 34.3 544.4 Non-U.S. 598.7 1,170.5 0.7 1,769.9 313.8 823.3 0.6 1,137.7 Other 67.0 88.6 — 155.6 94.9 99.2 — 194.1 Total Commercial 9,598.2 6,372.5 269.4 16,240.1 8,968.9 5,945.5 242.1 15,156.5 Personal Residential Real Estate 3,009.4 5,335.2 308.0 8,652.6 3,014.9 5,516.7 319.1 8,850.7 Private Client 5,793.9 3,415.2 23.5 9,232.6 5,908.3 3,207.1 21.0 9,136.4 Other 8.4 11.2 — 19.6 18.3 19.0 — 37.3 Total Personal 8,811.7 8,761.6 331.5 17,904.8 8,941.5 8,742.8 340.1 18,024.4 Total Loans and Leases $ 18,409.9 $ 15,134.1 $ 600.9 $ 34,144.9 $ 17,910.4 $ 14,688.3 $ 582.2 $ 33,180.9 |
Balances and Delinquency Status of Performing and Nonperforming Loans and Leases by Segment and Class as well as Total OREO and Nonperforming Asset Balances | The following tables provide balances and delinquency status of performing and nonperforming loans and leases by segment and class, as well as the total OREO and nonperforming asset balances, as of March 31, 2016 and December 31, 2015 . Table 36: Delinquency Status March 31, 2016 (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 $ 9,874.5 $ 23.8 $ 0.1 $ 1.0 $ 9,899.4 $ 41.7 $ 9,941.1 Commercial Real Estate 3,878.8 3.6 3.8 3.2 3,889.4 13.5 3,902.9 Lease Financing, net 470.6 — — — 470.6 — 470.6 Non-U.S. 1,769.9 — — — 1,769.9 — 1,769.9 Other 155.6 — — — 155.6 — 155.6 Total Commercial 16,149.4 27.4 3.9 4.2 16,184.9 55.2 16,240.1 Personal Residential Real Estate 8,499.1 39.5 1.6 3.9 8,544.1 108.5 8,652.6 Private Client 9,146.1 39.6 44.5 2.1 9,232.3 0.3 9,232.6 Other 19.6 — — — 19.6 — 19.6 Total Personal 17,664.8 79.1 46.1 6.0 17,796.0 108.8 17,904.8 Total Loans and Leases $ 33,814.2 $ 106.5 $ 50.0 $ 10.2 $ 33,980.9 $ 164.0 $ 34,144.9 Other Real Estate Owned 10.4 Total Nonperforming Assets $ 174.4 December 31, 2015 (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 $ 9,377.6 $ 7.8 $ 0.9 $ 2.3 $ 9,388.6 $ 42.9 $ 9,431.5 Commercial Real Estate 3,823.3 2.4 4.9 1.5 3,832.1 16.7 3,848.8 Lease Financing, net 544.4 — — — 544.4 — 544.4 Non-U.S. 1,137.7 — — — 1,137.7 — 1,137.7 Other 194.1 — — — 194.1 — 194.1 Total Commercial 15,077.1 10.2 5.8 3.8 15,096.9 59.6 15,156.5 Personal Residential Real Estate 8,679.3 35.2 14.5 1.6 8,730.6 120.1 8,850.7 Private Client 9,104.8 17.5 12.0 1.7 9,136.0 0.4 9,136.4 Other 37.3 — — — 37.3 — 37.3 Total Personal 17,821.4 52.7 26.5 3.3 17,903.9 120.5 18,024.4 Total Loans and Leases $ 32,898.5 $ 62.9 $ 32.3 $ 7.1 $ 33,000.8 $ 180.1 $ 33,180.9 Other Real Estate Owned 8.2 Total Nonperforming Assets $ 188.3 |
Impaired Loans By Segment and Class | The following tables provide information related to impaired loans by segment and class. Table 37: Information about Impaired Loans as of the Period End As of March 31, 2016 As of December 31, 2015 (In Millions) Recorded Investment Unpaid Principal Balance Specific Allowance Recorded Investment Unpaid Principal Balance Specific Allowance With No Related Specific Allowance Commercial and Institutional $ 28.9 $ 32.5 $ — $ 27.1 $ 30.7 $ — Commercial Real Estate 16.8 21.2 — 17.2 21.2 — Lease Financing, net 1.3 1.3 — — — — Residential Real Estate 99.0 139.0 — 99.3 140.7 — Private Client 0.2 0.2 — 0.2 0.2 — With a Related Specific Allowance Commercial and Institutional 8.0 10.1 0.4 9.3 11.4 1.6 Commercial Real Estate — 1.4 — — 1.4 — Lease Financing, net 0.8 0.8 0.8 2.7 2.7 1.4 Residential Real Estate 1.4 1.5 0.2 1.5 1.5 0.1 Private Client — — — — — — Total Commercial 55.8 67.3 1.2 56.3 67.4 3.0 Personal 100.6 140.7 0.2 101.0 142.4 0.1 Total $ 156.4 $ 208.0 $ 1.4 $ 157.3 $ 209.8 $ 3.1 Three Months Ended March 31, 2016 2015 (In Millions) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With No Related Specific Allowance Commercial and Institutional $ 28.3 $ — $ 9.2 $ — Commercial Real Estate 17.7 0.1 48.5 0.2 Lease Financing, net 0.4 0.1 3.4 0.1 Residential Real Estate 99.6 0.4 161.3 0.3 Private Client 0.3 — 0.2 — With a Related Specific Allowance Commercial and Institutional 8.4 — 8.5 — Commercial Real Estate — — 12.2 — Lease Financing, net 2.1 — — — Residential Real Estate 1.5 — 2.8 — Private Client — — 0.8 — Total Commercial 56.9 0.2 81.8 0.3 Personal 101.4 0.4 165.1 0.3 Total $ 158.3 $ 0.6 $ 246.9 $ 0.6 Note: Average recorded investment in impaired loans is calculated as the average of the month-end impaired loan balances for the period. |
Number of Loans and Leases Modified in TDRs and Total Recorded Investments and Unpaid Principal Balances | The following tables provide, by segment and class, the number of loans and leases modified in TDRs during the three month periods ended March 31, 2016 and 2015 , and the recorded investments and unpaid principal balances as of March 31, 2016 and 2015 . Table 38: Troubled Debt Restructurings ($ In Millions) Three Months Ended March 31, 2016 Number of Loans and Leases Recorded Investment Unpaid Principal Balance Commercial Commercial and Institutional 2 $ 4.0 $ 6.0 Commercial Real Estate 5 5.4 7.7 Total Commercial 7 9.4 13.7 Personal Residential Real Estate 24 5.5 6.2 Private Client — — — Total Personal 24 5.5 6.2 Total Loans and Leases 31 $ 14.9 $ 19.9 Note: Period end balances reflect all paydowns and charge-offs during the period. ($ In Millions) Three Months Ended March 31, 2015 Number of Loans and Leases Recorded Investment Unpaid Principal Balance Commercial Commercial and Institutional 1 $ 0.1 $ 0.1 Commercial Real Estate 1 0.7 0.7 Total Commercial 2 0.8 0.8 Personal Residential Real Estate 57 7.1 10.2 Total Personal 57 7.1 10.2 Total Loans and Leases 59 $ 7.9 $ 11.0 Note: Period end balances reflect all paydowns and charge-offs during the period. |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Changes in Allowance for Credit Losses by Segment | The following table provides information regarding changes in the total allowance for credit losses by segment during the three months ended March 31, 2016 and 2015 . Table 39: Changes in the Allowance for Credit Losses Three Months Ended March 31, 2016 2015 (In Millions) Commercial Personal Total Commercial Personal Total Balance at Beginning of Period $ 114.8 $ 118.5 $ 233.3 $ 169.7 $ 126.2 $ 295.9 Charge-Offs (3.5 ) (1.8 ) (5.3 ) (2.7 ) (4.8 ) (7.5 ) Recoveries 1.2 1.4 2.6 1.7 1.2 2.9 Net (Charge-Offs) Recoveries (2.3 ) (0.4 ) (2.7 ) (1.0 ) (3.6 ) (4.6 ) Provision for Credit Losses 2.7 (0.7 ) 2.0 (4.3 ) (0.2 ) (4.5 ) Effect of Foreign Exchange Rates — — — (0.1 ) — (0.1 ) Balance at End of Period $ 115.2 $ 117.4 $ 232.6 $ 164.3 $ 122.4 $ 286.7 |
Allowances for Credit Losses and Recorded Investments in Loans and Leases by Segment | The following table provides information regarding the balances of the recorded investments in loans and leases and the allowance for credit losses by segment as of March 31, 2016 and December 31, 2015 . Table 40: Information about the Recorded Investments in Loans and Leases March 31, 2016 December 31, 2015 (In Millions) Commercial Personal Total Commercial Personal Total Loans and Leases Specifically Evaluated for Impairment $ 55.8 $ 100.6 $ 156.4 $ 56.3 $ 101.0 $ 157.3 Evaluated for Inherent Impairment 16,184.3 17,804.2 33,988.5 15,100.2 17,923.4 33,023.6 Total Loans and Leases 16,240.1 17,904.8 34,144.9 15,156.5 18,024.4 33,180.9 Allowance for Loans and Leases Specifically Evaluated for Impairment 1.2 0.2 1.4 3.0 0.1 3.1 Evaluated for Inherent Impairment 87.5 106.7 194.2 83.3 107.4 190.7 Allowance Assigned to Loans and Leases 88.7 106.9 195.6 86.3 107.5 193.8 Allowance for Unfunded Exposures Commitments and Standby Letters of Credit 26.5 10.5 37.0 28.5 11.0 39.5 Total Allowance for Credit Losses $ 115.2 $ 117.4 $ 232.6 $ 114.8 $ 118.5 $ 233.3 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes by Reporting Segment in Carrying Amounts of Goodwill, including Effect of Foreign Exchange Rates on Non-U.S.-Dollar-Denominated Balances | The carrying amounts of goodwill and other intangibles assets, reflecting the effect of foreign exchange rates on non-U.S.-dollar-denominated balances, by reporting segment at March 31, 2016 , and December 31, 2015 , were as follows: Table 41: Goodwill by Reporting Segment (In Millions) March 31, December 31, Corporate & Institutional Services $ 452.3 $ 455.1 Wealth Management 71.3 71.3 Total Goodwill $ 523.6 $ 526.4 |
Other Intangible Assets Subject to Amortization | The gross carrying amount and accumulated amortization of other intangible assets subject to amortization as of March 31, 2016 and December 31, 2015 , were as follows: Table 42: Other Intangible Assets (In Millions) March 31, December 31, Gross Carrying Amount $ 87.2 $ 182.3 Less: Accumulated Amortization 41.9 135.8 Net Book Value $ 45.3 $ 46.5 |
Reporting Segments (Tables)
Reporting Segments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Earnings Contribution of Northern Trust's Reporting Segments | The following table shows the earnings contributions of Northern Trust’s reporting segments for the three -month periods ended March 31, 2016 and 2015 . Table 43: Results of Reporting Segments Three Months Ended March 31, Corporate & Wealth Treasury and Total ($ In Millions) 2016 2015 2016 2015 2016 2015 2016 2015 Noninterest Income Trust, Investment and Other Servicing Fees $ 433.4 $ 407.3 $ 314.8 $ 320.2 $ — $ — $ 748.2 $ 727.5 Foreign Exchange Trading Income 51.7 67.5 4.5 4.1 4.3 — 60.5 71.6 Other Noninterest Income 45.6 41.9 26.8 28.8 1.1 4.1 73.5 74.8 Net Interest Income* 138.4 96.0 158.5 138.3 17.1 32.5 314.0 266.8 Revenue* 669.1 612.7 504.6 491.4 22.5 36.6 1,196.2 1,140.7 Provision for Credit Losses (3.2 ) (2.2 ) 5.2 (2.3 ) — — 2.0 (4.5 ) Noninterest Expense 475.3 434.9 326.9 321.9 26.6 32.2 828.8 789.0 Income before Income Taxes* 197.0 180.0 172.5 171.8 (4.1 ) 4.4 365.4 356.2 Provision for Income Taxes* 62.2 57.3 64.9 64.6 (3.5 ) 3.6 123.6 125.5 Net Income $ 134.8 $ 122.7 $ 107.6 $ 107.2 $ (0.6 ) $ 0.8 $ 241.8 $ 230.7 Percentage of Consolidated Net Income 56 % 53 % 44 % 47 % — % — % 100 % 100 % Average Assets $ 75,372.9 $ 69,224.5 $ 26,237.8 $ 24,233.7 $ 11,806.4 $ 14,055.0 $ 113,417.1 $ 107,513.2 * Stated on a fully taxable equivalent basis (FTE). Total consolidated includes FTE adjustments of $6.2 million for 2016 and 2015 . |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) (AOCI) | The following tables summarize the components of accumulated other comprehensive income (loss) (AOCI) at March 31, 2016 and 2015 , and changes during the three month periods then ended. Table 44: Summary of Changes in Accumulated Other Comprehensive Income (Loss) (In Millions) Balance at March 31, 2016 Net Change Balance at December 31, 2015 Net Unrealized Gains (Losses) on Securities Available for Sale $ 43.7 $ 74.7 $ (31.0 ) Net Unrealized Gains (Losses) on Cash Flow Hedges 3.1 6.1 (3.0 ) Net Foreign Currency Adjustments (13.7 ) 3.9 (17.6 ) Net Pension and Other Postretirement Benefit Adjustments (317.0 ) 4.1 (321.1 ) Total $ (283.9 ) $ 88.8 $ (372.7 ) (In Millions) Balance at March 31, 2015 Net Change Balance at December 31, 2014 Net Unrealized Gains (Losses) on Securities Available for Sale $ 81.7 $ 54.1 $ 27.6 Net Unrealized Gains (Losses) on Cash Flow Hedges (5.8 ) (1.1 ) (4.7 ) Net Foreign Currency Adjustments (7.6 ) (5.9 ) (1.7 ) Net Pension and Other Postretirement Benefit Adjustments (334.7 ) 6.2 (340.9 ) Total $ (266.4 ) $ 53.3 $ (319.7 ) |
Components of Changes in Accumulated Other Comprehensive Income (Loss) | Table 45: Details of Changes in Accumulated Other Comprehensive Income (Loss) Three Months Ended March 31, 2016 2015 (In Millions) Before Tax Tax Effect After Tax Before Tax Tax Effect After Tax Unrealized Gains (Losses) on Securities Available for Sale Noncredit-Related Unrealized Losses on Securities OTTI $ — $ — $ — $ — $ — $ — Other Unrealized Gains (Losses) on Securities Available for Sale 120.5 (45.6 ) 74.9 86.8 (32.7 ) 54.1 Reclassification Adjustment for (Gains) Losses Included in Net Income (0.3 ) 0.1 (0.2 ) (0.1 ) 0.1 — Net Change 120.2 (45.5 ) 74.7 86.7 (32.6 ) 54.1 Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Cash Flow Hedges 9.4 (3.7 ) 5.7 (4.7 ) 3.0 (1.7 ) Reclassification Adjustment for (Gains) Losses Included in Net Income 0.6 (0.2 ) 0.4 1.0 (0.4 ) 0.6 Net Change 10.0 (3.9 ) 6.1 (3.7 ) 2.6 (1.1 ) Foreign Currency Adjustments Foreign Currency Translation Adjustments 17.3 (0.3 ) 17.0 (90.1 ) 12.2 (77.9 ) Long-Term Intra-Entity Foreign Currency Transaction Gains (Losses) 4.2 (1.0 ) 3.2 (1.0 ) 0.3 (0.7 ) Net Investment Hedge Gains (Losses) (26.5 ) 10.2 (16.3 ) 116.6 (43.9 ) 72.7 Reclassification Adjustment for (Gains) Losses Included in Net Income — — — — — — Net Change (5.0 ) 8.9 3.9 25.5 (31.4 ) (5.9 ) Pension and Other Postretirement Benefit Adjustments Net Actuarial Gain (Loss) — — — — — — Reclassification Adjustment for (Gains) Losses Included in Net Income 6.4 (2.3 ) 4.1 9.5 (3.3 ) 6.2 Net Change $ 6.4 $ (2.3 ) $ 4.1 $ 9.5 $ (3.3 ) $ 6.2 |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | The following table provides the location and before-tax amounts of reclassifications out of AOCI during the three months ended March 31, 2016 . Table 46: Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) (In Millions) Location of Reclassification Adjustments Recognized in Income Amount of Reclassification Adjustments Recognized in Income Three Months Ended March 31, 2016 Securities Available for Sale Realized (Gains) Losses on Securities Available for Sale Investment Security Gains, net $ (0.3 ) Realized Losses on Cash Flow Hedges Foreign Exchange Contracts Other Operating Income/Expense 0.6 Pension and Other Postretirement Benefit Adjustments Amortization of Net Actuarial Loss Employee Benefits 6.5 Amortization of Prior Service Cost Employee Benefits (0.1 ) Gross Reclassification Adjustment $ 6.4 |
Net Income Per Common Share C38
Net Income Per Common Share Computations (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Computations of Net Income per Common Share | The computations of net income per common share are presented in the following table. Table 47: Net Income per Common Share Three Months Ended ($ In Millions Except Per Common Share Information) 2016 2015 Basic Net Income Per Common Share Average Number of Common Shares Outstanding 228,619,089 233,381,168 Net Income $ 241.8 $ 230.7 Less: Dividends on Preferred Stock 5.9 5.9 Net Income Applicable to Common Stock 235.9 224.8 Less: Earnings Allocated to Participating Securities 4.1 3.7 Earnings Allocated to Common Shares Outstanding 231.8 221.1 Basic Net Income Per Common Share $ 1.01 $ 0.95 Diluted Net Income Per Common Share Average Number of Common Shares Outstanding 228,619,089 233,381,168 Plus: Dilutive Effect of Share-based Compensation 1,360,601 1,907,527 Average Common and Potential Common Shares 229,979,690 235,288,695 Earnings Allocated to Common and Potential Common Shares $ 231.9 $ 221.1 Diluted Net Income Per Common Share 1.01 0.94 Note: Common stock equivalents of 1,796,320 and 1,504,850 for the three months ended March 31, 2016 and 2015 , respectively, were not included in the computation of diluted net income per common share because their inclusion would have been antidilutive. |
Net Interest Income (Tables)
Net Interest Income (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Banking and Thrift, Interest [Abstract] | |
Components of Net Interest Income | The components of net interest income were as follows: Table 48: Net Interest Income Three Months Ended (In Millions) 2016 2015 Interest Income Loans and Leases $ 200.9 $ 183.9 Securities — Taxable 103.3 76.6 — Non-Taxable 1.1 1.3 Interest-Bearing Due from and Deposits with Banks (1) 23.7 26.6 Federal Reserve Deposits and Other 23.0 10.4 Total Interest Income 352.0 298.8 Interest Expense Deposits 22.2 16.7 Federal Funds Purchased 0.3 0.2 Securities Sold Under Agreements to Repurchase 0.4 0.1 Other Borrowings 2.7 1.2 Senior Notes 11.7 11.6 Long-Term Debt 6.1 7.8 Floating Rate Capital Debt 0.8 0.6 Total Interest Expense 44.2 38.2 Net Interest Income $ 307.8 $ 260.6 (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. |
Pension and Postretirement He40
Pension and Postretirement Health Care (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Company's Net Periodic Benefit Cost | The following tables set forth the net periodic pension and postretirement benefit expense for Northern Trust’s U.S. and non-U.S. pension plans, supplemental pension plan, and postretirement health care plan for the three months ended March 31, 2016 and 2015 . Table 49: Net Periodic Pension Expense (Benefit) Net Periodic Pension Expense U.S. Plan Three Months Ended (In Millions) 2016 2015 Service Cost $ 9.3 $ 9.5 Interest Cost 11.5 11.2 Expected Return on Plan Assets (23.6 ) (24.1 ) Amortization Net Actuarial Loss 4.7 7.4 Prior Service Cost (0.1 ) (0.1 ) Net Periodic Pension Expense $ 1.8 $ 3.9 Net Periodic Pension Expense Non-U.S. Plans Three Months Ended (In Millions) 2016 2015 Interest Cost $ 1.3 $ 1.4 Expected Return on Plan Assets (1.3 ) (1.5 ) Net Actuarial Loss Amortization 0.3 0.4 Net Periodic Pension Expense $ 0.3 $ 0.3 Net Periodic Pension Expense Supplemental Plan Three Months Ended (In Millions) 2016 2015 Service Cost $ 0.9 $ 0.9 Interest Cost 1.3 1.3 Amortization Net Actuarial Loss 1.5 1.8 Prior Service Cost — — Net Periodic Pension Expense $ 3.7 $ 4.0 Net Periodic Postretirement Expense Postretirement Health Care Plan Three Months Ended (In Millions) 2016 2015 Service Cost $ — $ — Interest Cost 0.4 0.3 Amortization Net Actuarial (Gain) — — Net Periodic Postretirement Expense $ 0.4 $ 0.3 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Compensation Expense for Share-Based Payment Arrangements and Associated Tax Impacts | Total compensation expense for share-based payment arrangements and the associated tax impacts were as follows for the three months ended March 31, 2016 and 2015 . Table 50: Total Compensation Expense for Share-Based Payment Arrangements Three Months Ended (In Millions) 2016 2015 Restricted Stock Unit Awards $ 15.3 $ 13.5 Stock Options 6.4 6.0 Performance Stock Units 4.1 3.4 Total Share-Based Compensation Expense 25.8 22.9 Tax Benefits Recognized $ 9.7 $ 8.6 |
Derivative Financial Instrume42
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional and Fair Value Amounts of Client-related and Trading Derivative Financial Instruments | The following table shows the notional and fair values of client-related and trading derivative financial instruments. Notional amounts of derivative financial instruments do not represent credit risk, and are not recorded in the consolidated balance sheets. They are used merely to express the volume of this activity. Northern Trust’s credit-related risk of loss is limited to the positive fair value of the derivative instrument, which is significantly less than the notional amount. Table 51: Notional and Fair Values of Client-Related and Trading Derivative Financial Instruments March 31, 2016 December 31, 2015 Notional Value Fair Value Notional Value Fair Value (In Millions) Asset Liability Asset Liability Foreign Exchange Contracts $ 264,219.3 $ 3,940.3 $ 3,948.2 $ 246,628.5 $ 2,541.8 $ 2,500.4 Interest Rate Contracts 6,534.1 175.5 172.9 6,209.5 111.1 108.5 Total $ 270,753.4 $ 4,115.8 $ 4,121.1 $ 252,838.0 $ 2,652.9 $ 2,608.9 |
Location and Amount of Gains and Losses Recorded in Consolidated Statements of Income | The following table shows the location and amount of gains and losses recorded in the consolidated statements of income for the three months ended March 31, 2016 and 2015 . Table 52: Location and Amount of Gains and Losses Recorded in Income Amount of Derivative Gain Recognized in Income Location of Derivative Gain Recognized in Income Three Months Ended (In Millions) 2016 2015 Foreign Exchange Contracts Foreign Exchange Trading Income $ 60.5 $ 71.6 Interest Rate Contracts Security Commissions and Trading Income 4.1 4.9 Total $ 64.6 $ 76.5 |
Types and Classifications of Derivative Instruments | The following table identifies the types and classifications of derivative instruments formally designated as hedges under GAAP and used by Northern Trust to manage risk, their notional and fair values, and the respective risks addressed. Table 53: Notional and Fair Value of Designated Risk Management Derivative Financial Instruments March 31, 2016 December 31, 2015 Derivative Instrument Risk Classification Notional Value Fair Value Notional Value Fair Value (In Millions) Asset Liability Asset Liability Fair Value Hedges Available for Sale Investment Securities Interest Rate Swap Contracts Interest Rate $ 3,274.8 $ 3.5 $ 39.5 $ 3,042.1 $ 10.8 $ 19.8 Senior Notes and Long-Term Subordinated Debt Interest Rate Swap Contracts Interest Rate 1,250.0 148.8 2.7 1,250.0 104.6 2.2 Cash Flow Hedges Forecasted Foreign Currency Denominated Transactions and Investment Securities Foreign Exchange Contracts Foreign Currency 379.4 8.5 9.1 367.4 8.5 13.8 Available for Sale Investment Securities Interest Rate Contracts Interest Rate 985.0 6.3 — 935.0 2.0 0.7 Net Investment Hedges Net Investments in Non-U.S. Affiliates Foreign Exchange Contracts Foreign Currency 2,190.3 — 70.7 1,961.5 72.9 1.5 Total $ 8,079.5 $ 167.1 $ 122.0 $ 7,556.0 $ 198.8 $ 38.0 |
Gains/Losses of Derivative Financial Instruments | The following table shows the location and amount of derivative gains and losses recorded in the consolidated statements of income related to fair value hedges for the three months ended March 31, 2016 and 2015 . Table 54: Location and Amount of Derivative Gains and Losses Recorded in Income Location of Derivative Gain/(Loss) Recognized in Income Amount of Derivative Gain/(Loss) Recognized in Income Derivative Instrument Three Months Ended (In Millions) 2016 2015 Available for Sale Investment Securities Interest Rate Swap Contracts Interest Income $ (34.7 ) $ (17.3 ) Senior Notes and Long-Term Subordinated Debt Interest Rate Swap Contracts Interest Expense 47.4 29.8 Total $ 12.7 $ 12.5 |
Cash Flow Hedge Derivative Gains and Losses Recognized in AOCI and the Amounts Reclassified to Earnings | The following table provides cash flow hedge derivative gains and losses recognized in AOCI and the amounts reclassified to income during the three months ended March 31, 2016 and 2015 . Table 55: Cash Flow Hedge Derivative Gains and Losses Recognized in AOCI and Reclassified to Income (In Millions) Foreign Exchange Contracts (Before Tax) Interest Rate Contracts (Before Tax) Three Months Ended March 31, 2016 2015 2016 2015 Net Gain/(Loss) Recognized in AOCI $ 4.2 $ (7.9 ) $ 5.2 $ 3.2 Net Gain/(Loss) Reclassified from AOCI to Net Income Other Operating Income (1.1 ) (1.6 ) — — Interest Income — — 0.9 1.1 Other Operating Expense (0.4 ) (0.5 ) — — Total $ (1.5 ) $ (2.1 ) $ 0.9 $ 1.1 |
Net Investment Hedge Gains and Losses Recognized in AOCI | The following table provides net investment hedge gains and losses recognized in AOCI during the three months ended March 31, 2016 and 2015 . Table 56: Net Investment Hedge Gains and Losses Recognized in AOCI Hedging Gain / (Loss) Recognized in OCI (Before Tax) Three Months Ended (In Millions) 2016 2015 Foreign Exchange Contracts $ (26.5 ) $ 111.6 Sterling Denominated Subordinated Debt — 5.0 Total $ (26.5 ) $ 116.6 |
Types of Risk Management Derivative Instruments Not Formally Designated as Hedges, Including Notional Amounts and Fair Values | The following table identifies the types of risk management derivative instruments not formally designated as hedges and their notional amounts and fair values. Table 57: Notional and Fair Values of Non-Designated Risk Management Derivative Instruments (In Millions) March 31, 2016 December 31, 2015 Notional Value Fair Value Notional Value Fair Value Asset Liability Asset Liability Foreign Exchange Contracts $ 274.8 $ 3.8 $ 0.4 $ 244.6 $ 0.2 $ 3.7 Other Financial Derivatives (1) 200.3 — 10.4 152.8 — 10.9 Total $ 475.1 $ 3.8 $ 10.8 $ 397.4 $ 0.2 $ 14.6 (1) This line includes a swap related to the sale of certain Visa Class B common shares, total return swap contracts, and credit default swap contracts. |
Gains/Losses of Derivative Financial Instruments | The following table provides the location and amount of gains and losses recorded in the consolidated statements of income for the three months ended March 31, 2016 and 2015 . Table 58: Location and Amount of Gains and Losses Recorded in Income for Non-Designated Risk Management Derivative Instruments (In Millions) Location of Derivative Gain / (Loss) Recognized in Income Amount of Derivative Gain / (Loss) Recognized in Income Three Months Ended 2016 2015 Foreign Exchange Contracts Other Operating Income $ 2.7 $ (8.7 ) Other Financial Derivatives (1) Other Operating Income (0.8 ) — Total $ 1.9 $ (8.7 ) (1) This line includes a swap related to the sale of certain Visa Class B common shares, total return swap contracts, and credit default swap contracts. |
Offsetting of Assets and Liab43
Offsetting of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Securities Purchased Under Agreements to Resell and Derivative Assets in the Consolidated Balance Sheets | The following tables provide information regarding the offsetting of derivative assets and securities purchased under agreements to resell within the consolidated balance sheets as of March 31, 2016 and December 31, 2015 . Table 59: Offsetting of Derivative Assets and Securities Purchased Under Agreements to Resell March 31, 2016 (In Millions) Gross Recognized Assets Gross Amounts Offset Net Amounts Presented Gross Amounts Not Offset Net Amount (3) Derivative Assets (1) Foreign Exchange Contracts Over the Counter (OTC) $ 3,134.9 $ 1,523.1 $ 1,611.8 $ — $ 1,611.8 Interest Rate Swaps OTC 232.5 22.3 210.2 — 210.2 Interest Rate Swaps Exchange Cleared 101.5 96.8 4.7 — 4.7 Cross Product Netting Adjustment — 42.4 — — — Cross Product Collateral Adjustment — 871.9 — — — Total Derivatives Subject to a Master Netting Arrangement 3,468.9 2,556.5 912.4 — 912.4 Total Derivatives Not Subject to a Master Netting Arrangement 817.7 — 817.7 — 817.7 Total Derivatives $ 4,286.6 $ 2,556.5 $ 1,730.1 $ — $ 1,730.1 Securities Purchased under Agreements to Resell (2) $ 1,755.2 $ — $ 1,755.2 $ 1,755.2 $ — December 31, 2015 (In Millions) Gross Recognized Assets Gross Amounts Offset Net Amounts Presented Gross Amounts Not Offset Net Amount (3) Derivative Assets (1) Foreign Exchange Contracts OTC $ 1,636.0 $ 1,194.3 $ 441.7 $ — $ 441.7 Interest Rate Swaps OTC 170.3 21.5 $ 148.8 — $ 148.8 Interest Rate Swaps Exchange Cleared 58.2 38.1 $ 20.1 — $ 20.1 Cross Product Netting Adjustment — 23.5 $ — — $ — Cross Product Collateral Adjustment — 322.8 $ — — $ — Total Derivatives Subject to a Master Netting Arrangement 1,864.5 1,600.2 264.3 — 264.3 Total Derivatives Not Subject to a Master Netting Arrangement 987.4 — 987.4 — 987.4 Total Derivatives 2,851.9 1,600.2 1,251.7 — 1,251.7 Securities Purchased under Agreements to Resell (2) $ 1,600.0 $ — $ 1,600.0 $ 1,600.0 $ — (1) Derivative assets are reported in other assets in the consolidated balance sheets. Other assets (excluding derivative assets) totaled $3,334.4 million and $3,212.7 million as of March 31, 2016 and December 31, 2015 , respectively. (2) 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 $10.0 million and $14.2 million as of March 31, 2016 and December 31, 2015 , respectively. (3) 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, 2016 and December 31, 2015 . |
Securities Sold Under Agreements to Repurchase and Derivative Liabilities in the Consolidated Balance Sheets | The following tables provide information regarding the offsetting of derivative liabilities and securities sold under agreements to repurchase within the consolidated balance sheets as of March 31, 2016 and December 31, 2015 . Table 60: Offsetting of Derivative Liabilities and Securities Sold Under Agreements to Repurchase March 31, 2016 (In Millions) Gross Recognized Liabilities Gross Amounts Offset Net Amounts Presented Gross Amounts Not Offset Net Amount (2) Derivative Liabilities (1) Foreign Exchange Contracts OTC $ 3,210.3 $ 1,523.1 $ 1,687.2 $ — $ 1,687.2 Interest Rate Swaps OTC 118.3 22.3 96.0 — 96.0 Interest Rate Swaps Exchange Cleared 96.8 96.8 — — — Other Financial Derivatives 10.4 — 10.4 — 10.4 Cross Product Netting Adjustment — 42.4 — — — Cross Product Collateral Adjustment — 1,231.4 — — — Total Derivatives Subject to a Master Netting Arrangement 3,435.8 2,916.0 519.8 — 519.8 Total Derivatives Not Subject to a Master Netting Arrangement 818.1 — 818.1 — 818.1 Total Derivatives 4,253.9 2,916.0 1,337.9 — 1,337.9 Securities Sold under Agreements to Repurchase $ 507.1 $ — $ 507.1 $ 507.1 $ — December 31, 2015 (In Millions) Gross Recognized Liabilities Gross Amounts Offset Net Amounts Presented Gross Amounts Not Offset Net Amount (2) Derivative Liabilities (1) Foreign Exchange Contracts OTC $ 2,119.7 $ 1,194.3 $ 925.4 $ — $ 925.4 Interest Rate Swaps OTC 93.1 21.5 71.6 — 71.6 Interest Rate Swaps Exchange Cleared 38.1 38.1 — — — Other Financial Derivatives 10.9 — 10.9 10.9 Cross Product Netting Adjustment — 23.5 — — — Cross Product Collateral Adjustment — 440.2 — — — Total Derivatives Subject to a Master Netting Arrangement 2,261.8 1,717.6 544.2 — 544.2 Total Derivatives Not Subject to a Master Netting Arrangement 399.7 — 399.7 — 399.7 Total Derivatives 2,661.5 1,717.6 943.9 — 943.9 Securities Sold under Agreements to Repurchase $ 546.6 $ — $ 546.6 $ 546.6 $ — (1) Derivative liabilities are reported in other liabilities in the consolidated balance sheets. Other liabilities (excluding derivative liabilities) totaled $2,008.7 million and $2,131.7 million as of March 31, 2016 and December 31, 2015 , respectively. (2) Northern Trust did not place any cash collateral with counterparties that was not offset in the consolidated balance sheets that could have been used to offset the net amounts presented in the consolidated balance sheets as of March 31, 2016 and December 31, 2015 . |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) shares in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016USD ($)Securitiesshares | Dec. 31, 2015USD ($)Securities | Mar. 31, 2015USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale securities portfolio, value | $ 33,330,200,000 | $ 32,317,900,000 | |
Trading account securities | 200,000 | 1,200,000 | |
Transfers into Level 3 assets | 0 | 0 | |
Transfers out of Level 3 assets | 0 | 0 | |
Transfers into Level 3 liabilities | 0 | 0 | |
Transfers out of Level 3 liabilities | $ 0 | $ 0 | |
Visa Class B | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of common stock shares sold | shares | 1 | ||
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of available for sale securities portfolio | Securities | 1,154 | 1,044 | |
Available for sale securities portfolio, value | $ 26,500,000,000 | $ 26,100,000,000 | |
Level 2 | External Pricing | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of available for sale securities portfolio | Securities | 1,152 | 1,044 | |
Trading account securities | $ 200,000 | $ 1,200,000 | |
Level 2 | Market Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of available for sale securities portfolio | Securities | 2 | ||
Available for sale securities portfolio, value | $ 2,100,000 | ||
Fair Value, Measurements, Nonrecurring | Level 3 | Loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 10,100,000 | 10,400,000 | $ 23,100,000 |
Fair Value, Measurements, Nonrecurring | Level 3 | OREO | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 2,500,000 | $ 3,600,000 | $ 300,000 |
Fair Value Measurements (Level
Fair Value Measurements (Level 3 Significant Unobservable Inputs) (Details) - Fair Value, Measurements, Recurring - Level 3 - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Swap Related to Sale of Certain Visa Class B Common Shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instrument, fair value liabilities | $ 9.7 | $ 10.8 |
Swap Related to Sale of Certain Visa Class B Common Shares | Group One | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Valuation Technique | Discounted Cash Flow | Discounted Cash Flow |
Unobservable inputs | Visa Class A Appreciation | Visa Class A Appreciation |
Swap Related to Sale of Certain Visa Class B Common Shares | Group Two | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable inputs | Conversion Rate | Conversion Rate |
Swap Related to Sale of Certain Visa Class B Common Shares | Group Three | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable inputs | Expected Duration | Expected Duration |
Swap Related to Sale of Certain Visa Class B Common Shares | Lower Limit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instrument visa class A appreciation | 9.50% | 9.50% |
Financial instrument conversion rate | 1.61% | 1.61% |
Financial instrument expected conversion rate | 1 year 3 months | 1 year 6 months |
Swap Related to Sale of Certain Visa Class B Common Shares | Upper Limit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instrument visa class A appreciation | 15.00% | 15.00% |
Financial instrument conversion rate | 1.65% | 1.65% |
Financial instrument expected conversion rate | 4 years 3 months | 4 years 6 months |
Auction Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 16.6 | $ 17.1 |
Auction Rate | Group One | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Valuation Technique | Discounted Cash Flow | Discounted Cash Flow |
Unobservable inputs | Remaining lives | Remaining lives |
Auction Rate | Group Two | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable inputs | Discount rates | Discount rates |
Auction Rate | Lower Limit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instrument remaining lives | 2 months 1 day | 5 months 1 day |
Financial instrument discount rate | 0.20% | 0.30% |
Auction Rate | Upper Limit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instrument remaining lives | 8 years 7 months 20 days | 8 years 7 months 20 days |
Financial instrument discount rate | 3.90% | 4.40% |
Fair Value Measurements (Recurr
Fair Value Measurements (Recurring Basis Hierarchy Leveling) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | $ 33,330.2 | $ 32,317.9 |
Trading Account | 0.2 | 1.2 |
Other Financial Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 10.4 | 10.9 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 26,500 | 26,100 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total Available for Sale and Trading Securities | 33,330.4 | 32,319.1 |
Fair Value, Measurements, Recurring | Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 33,330.2 | 32,317.9 |
Trading Account | 0.2 | 1.2 |
Fair Value, Measurements, Recurring | Securities | U.S. Government | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 6,857.1 | 6,178.3 |
Fair Value, Measurements, Recurring | Securities | Obligations of States and Political Subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 189.8 | 36.4 |
Fair Value, Measurements, Recurring | Securities | Government Sponsored Agency | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 16,892.6 | 16,366.8 |
Fair Value, Measurements, Recurring | Securities | Non-U.S. Government | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 280.7 | 309.5 |
Fair Value, Measurements, Recurring | Securities | Corporate Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 3,857.8 | 3,712.2 |
Fair Value, Measurements, Recurring | Securities | Covered Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 1,374.8 | 1,870.2 |
Fair Value, Measurements, Recurring | Securities | Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 859.4 | |
Fair Value, Measurements, Recurring | Securities | Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 1,070.2 | |
Fair Value, Measurements, Recurring | Securities | Other Asset-Backed | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 2,300.1 | 2,500.1 |
Fair Value, Measurements, Recurring | Securities | Auction Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 16.6 | 17.1 |
Fair Value, Measurements, Recurring | Securities | Commercial Mortgage-Backed | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 406.9 | 374.4 |
Fair Value, Measurements, Recurring | Securities | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 83.6 | 93.5 |
Fair Value, Measurements, Recurring | Other Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 1,730.1 | 1,251.7 |
Fair Value, Measurements, Recurring | Other Assets | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 3,952.6 | 2,623.4 |
Fair Value, Measurements, Recurring | Other Assets | Interest Rate Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 334 | 228.5 |
Fair Value, Measurements, Recurring | Other Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 1,337.9 | 943.9 |
Fair Value, Measurements, Recurring | Other Liabilities | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 4,028.4 | 2,519.4 |
Fair Value, Measurements, Recurring | Other Liabilities | Interest Rate Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 215.1 | 131.2 |
Fair Value, Measurements, Recurring | Other Liabilities | Other Financial Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 10.4 | 10.9 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total Available for Sale and Trading Securities | 6,857.1 | 6,178.3 |
Fair Value, Measurements, Recurring | Level 1 | Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 6,857.1 | 6,178.3 |
Fair Value, Measurements, Recurring | Level 1 | Securities | U.S. Government | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 6,857.1 | 6,178.3 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total Available for Sale and Trading Securities | 26,456.7 | 26,123.7 |
Fair Value, Measurements, Recurring | Level 2 | Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 26,456.5 | 26,122.5 |
Trading Account | 0.2 | 1.2 |
Fair Value, Measurements, Recurring | Level 2 | Securities | Obligations of States and Political Subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 189.8 | 36.4 |
Fair Value, Measurements, Recurring | Level 2 | Securities | Government Sponsored Agency | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 16,892.6 | 16,366.8 |
Fair Value, Measurements, Recurring | Level 2 | Securities | Non-U.S. Government | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 280.7 | 309.5 |
Fair Value, Measurements, Recurring | Level 2 | Securities | Corporate Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 3,857.8 | 3,712.2 |
Fair Value, Measurements, Recurring | Level 2 | Securities | Covered Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 1,374.8 | 1,870.2 |
Fair Value, Measurements, Recurring | Level 2 | Securities | Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 859.4 | |
Fair Value, Measurements, Recurring | Level 2 | Securities | Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 1,070.2 | |
Fair Value, Measurements, Recurring | Level 2 | Securities | Other Asset-Backed | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 2,300.1 | 2,500.1 |
Fair Value, Measurements, Recurring | Level 2 | Securities | Commercial Mortgage-Backed | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 406.9 | 374.4 |
Fair Value, Measurements, Recurring | Level 2 | Securities | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 83.6 | 93.5 |
Fair Value, Measurements, Recurring | Level 2 | Other Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 4,286.6 | 2,851.9 |
Fair Value, Measurements, Recurring | Level 2 | Other Assets | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 3,952.6 | 2,623.4 |
Fair Value, Measurements, Recurring | Level 2 | Other Assets | Interest Rate Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | 334 | 228.5 |
Fair Value, Measurements, Recurring | Level 2 | Other Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 4,244.2 | 2,650.7 |
Fair Value, Measurements, Recurring | Level 2 | Other Liabilities | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 4,028.4 | 2,519.4 |
Fair Value, Measurements, Recurring | Level 2 | Other Liabilities | Interest Rate Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 215.1 | 131.2 |
Fair Value, Measurements, Recurring | Level 2 | Other Liabilities | Other Financial Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 0.7 | 0.1 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total Available for Sale and Trading Securities | 16.6 | 17.1 |
Fair Value, Measurements, Recurring | Level 3 | Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 16.6 | 17.1 |
Fair Value, Measurements, Recurring | Level 3 | Securities | Auction Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair Value | 16.6 | 17.1 |
Fair Value, Measurements, Recurring | Level 3 | Other Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 9.7 | 10.8 |
Fair Value, Measurements, Recurring | Level 3 | Other Liabilities | Other Financial Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | 9.7 | 10.8 |
Fair Value, Measurements, Recurring | Netting | Derivative Financial Instruments, Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Reduction in derivatives due to cash collateral received from and deposited with derivative counterparties | 871.9 | 322.8 |
Fair Value, Measurements, Recurring | Netting | Other Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative assets | (2,556.5) | (1,600.2) |
Fair Value, Measurements, Recurring | Netting | Other Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liabilities | (2,916) | (1,717.6) |
Derivative Financial Instruments, Liabilities | Fair Value, Measurements, Recurring | Netting | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Reduction in derivatives due to cash collateral received from and deposited with derivative counterparties | $ 1,200 | $ 440.3 |
Fair Value Measurements (Change
Fair Value Measurements (Changes in Level 3 Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Total Gains (Losses): | ||
Included in Earnings | $ 0 | $ 0 |
Auction Rate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value assets beginning balance | 17.1 | 18.1 |
Total Gains (Losses): | ||
Included in Other Comprehensive Income | (0.4) | (0.3) |
Purchases, Issues, Sales, and Settlements | ||
Sales | (0.1) | 0 |
Settlements | 0 | (0.3) |
Fair value assets ending balance | $ 16.6 | $ 17.5 |
Fair Value Measurements (Chan48
Fair Value Measurements (Changes in Level 3 Liabilities) (Details) - Swap Related to Sale of Certain Visa Class B Common Shares - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value liabilities beginning balance | $ 10.8 | $ 0 |
Total (Gains) Losses: | ||
Included in Earnings | (0.3) | 0 |
Included in Other Comprehensive Income | 0 | 0 |
Purchases, Issues, Sales, and Settlements | ||
Purchases | 0 | 0 |
Settlements | (0.8) | 0 |
Fair value liabilities ending balance | $ 9.7 | $ 0 |
Fair Value Measurements (Nonrec
Fair Value Measurements (Nonrecurring Basis Significant Unobservable Inputs) (Details) - Fair Value, Measurements, Nonrecurring - Level 3 - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | |
Loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 10.1 | $ 10.4 | $ 23.1 |
Valuation Technique | Market Approach | Market Approach | |
Unobservable Input | Discount to reflect realizable value | Discount to reflect realizable value | |
OREO | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 2.5 | $ 3.6 | $ 0.3 |
Valuation Technique | Market Approach | Market Approach | |
Unobservable Input | Discount to reflect realizable value | Discount to reflect realizable value | |
Lower Limit | Loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Range of Discounts Applied | 15.00% | 15.00% | |
Lower Limit | OREO | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Range of Discounts Applied | 15.00% | 15.00% | |
Upper Limit | Loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Range of Discounts Applied | 25.00% | 25.00% | |
Upper Limit | OREO | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Range of Discounts Applied | 20.00% | 20.00% |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | $ 5,861.5 | $ 5,227.5 | ||
Assets | ||||
Cash and Due from Banks | 7,005 | 6,444.6 | $ 4,074.8 | $ 3,050.6 |
Federal Funds Sold and Resell Agreements | 1,765.2 | 1,614.2 | ||
Interest-Bearing Deposits with Banks | 13,535.5 | 14,143.1 | ||
Federal Reserve Deposits | 14,415.3 | 16,398.5 | ||
Securities | ||||
Available for Sale | 33,330.2 | 32,317.9 | ||
Held to Maturity | 5,869.6 | 5,248.3 | ||
Trading Account | 0.2 | 1.2 | ||
Loans (excluding Leases) | ||||
Client Security Settlement Receivables | 1,902.7 | 2,157 | ||
Deposits | ||||
Savings Certificates and Other Time | 1,417 | 1,455.8 | ||
Non U.S. Offices Interest-Bearing | 50,747.4 | 50,221.8 | ||
Federal Funds Purchased | 263.3 | 351.5 | ||
Securities Sold Under Agreements to Repurchase | 507.1 | 546.6 | ||
Other Borrowings | 4,009.8 | 4,055.1 | ||
Senior Notes | 1,496.1 | 1,497.4 | ||
Long Term Debt (excluding Leases) | ||||
Floating Rate Capital Debt | 277.3 | 277.3 | ||
Other Financial Derivatives | ||||
Derivative Instruments | ||||
Liabilities | 10.4 | 10.9 | ||
Asset And Liability Management | ||||
Derivative Instruments | ||||
Assets | 167.1 | 198.8 | ||
Liabilities | 122 | 38 | ||
Client Related and Trading | ||||
Derivative Instruments | ||||
Assets | 4,115.8 | 2,652.9 | ||
Liabilities | 4,121.1 | 2,608.9 | ||
Client Related and Trading | Foreign Exchange Contracts | ||||
Derivative Instruments | ||||
Assets | 3,940.3 | 2,541.8 | ||
Liabilities | 3,948.2 | 2,500.4 | ||
Client Related and Trading | Interest Rate Contracts | ||||
Derivative Instruments | ||||
Assets | 175.5 | 111.1 | ||
Liabilities | 172.9 | 108.5 | ||
Level 2 | ||||
Securities | ||||
Available for Sale | 26,500 | 26,100 | ||
Carrying (Reported) Amount, Fair Value Disclosure | ||||
Assets | ||||
Cash and Due from Banks | 7,005 | 6,444.6 | ||
Federal Funds Sold and Resell Agreements | 1,765.2 | 1,614.2 | ||
Interest-Bearing Deposits with Banks | 13,535.5 | 14,143.1 | ||
Federal Reserve Deposits | 14,415.3 | 16,398.5 | ||
Securities | ||||
Available for Sale | 33,330.2 | 32,317.9 | ||
Held to Maturity | 5,869.6 | 5,248.3 | ||
Trading Account | 0.2 | 1.2 | ||
Loans (excluding Leases) | ||||
Held for Investment | 33,478.4 | 32,432.7 | ||
Held for Sale | 1.4 | 12 | ||
Client Security Settlement Receivables | 1,902.7 | 2,157 | ||
Other Assets | ||||
Federal Reserve and Federal Home Loan Bank Stock | 253.1 | 253.1 | ||
Community Development Investments | 193 | 173.5 | ||
Employee Benefit and Deferred Compensation | 165.4 | 155.3 | ||
Deposits | ||||
Demand, Noninterest-Bearing, Savings and Money Market | 45,495.2 | 45,191.3 | ||
Savings Certificates and Other Time | 1,417 | 1,455.8 | ||
Non U.S. Offices Interest-Bearing | 50,747.4 | 50,221.8 | ||
Federal Funds Purchased | 263.3 | 351.5 | ||
Securities Sold Under Agreements to Repurchase | 507.1 | 546.6 | ||
Other Borrowings | 4,009.8 | 4,055.1 | ||
Senior Notes | 1,496.1 | 1,497.4 | ||
Long Term Debt (excluding Leases) | ||||
Subordinated Debt | 1,377.9 | 1,341.6 | ||
Floating Rate Capital Debt | 277.3 | 277.3 | ||
Other Liabilities | ||||
Standby Letters of Credit | 45.3 | 46.6 | ||
Loan Commitments | 46.3 | 48.9 | ||
Carrying (Reported) Amount, Fair Value Disclosure | Asset And Liability Management | Foreign Exchange Contracts | ||||
Derivative Instruments | ||||
Assets | 12.3 | 81.6 | ||
Liabilities | 80.2 | 19 | ||
Carrying (Reported) Amount, Fair Value Disclosure | Asset And Liability Management | Interest Rate Contracts | ||||
Derivative Instruments | ||||
Assets | 158.5 | 117.4 | ||
Liabilities | 42.2 | 22.7 | ||
Carrying (Reported) Amount, Fair Value Disclosure | Asset And Liability Management | Other Financial Derivatives | ||||
Derivative Instruments | ||||
Liabilities | 10.4 | 10.9 | ||
Carrying (Reported) Amount, Fair Value Disclosure | Client Related and Trading | Foreign Exchange Contracts | ||||
Derivative Instruments | ||||
Assets | 3,940.3 | 2,541.8 | ||
Liabilities | 3,948.2 | 2,500.4 | ||
Carrying (Reported) Amount, Fair Value Disclosure | Client Related and Trading | Interest Rate Contracts | ||||
Derivative Instruments | ||||
Assets | 175.5 | 111.1 | ||
Liabilities | 172.9 | 108.5 | ||
Estimate of Fair Value, Fair Value Disclosure | ||||
Assets | ||||
Cash and Due from Banks | 7,005 | 6,444.6 | ||
Federal Funds Sold and Resell Agreements | 1,765.2 | 1,614.2 | ||
Interest-Bearing Deposits with Banks | 13,535.5 | 14,143.1 | ||
Federal Reserve Deposits | 14,415.3 | 16,398.5 | ||
Securities | ||||
Available for Sale | 33,330.2 | 32,317.9 | ||
Held to Maturity | 5,861.5 | 5,227.5 | ||
Trading Account | 0.2 | 1.2 | ||
Loans (excluding Leases) | ||||
Held for Investment | 33,715.2 | 32,596.5 | ||
Held for Sale | 1.4 | 12 | ||
Client Security Settlement Receivables | 1,902.7 | 2,157 | ||
Other Assets | ||||
Federal Reserve and Federal Home Loan Bank Stock | 253.1 | 253.1 | ||
Community Development Investments | 199.4 | 177.1 | ||
Employee Benefit and Deferred Compensation | 169.5 | 153.4 | ||
Deposits | ||||
Demand, Noninterest-Bearing, Savings and Money Market | 45,495.2 | 45,191.3 | ||
Savings Certificates and Other Time | 1,425.1 | 1,463.5 | ||
Non U.S. Offices Interest-Bearing | 50,747.4 | 50,221.8 | ||
Federal Funds Purchased | 263.3 | 351.5 | ||
Securities Sold Under Agreements to Repurchase | 507.1 | 546.6 | ||
Other Borrowings | 4,009.8 | 4,055.7 | ||
Senior Notes | 1,573.3 | 1,531.8 | ||
Long Term Debt (excluding Leases) | ||||
Subordinated Debt | 1,353.6 | 1,332.2 | ||
Floating Rate Capital Debt | 223.5 | 236.6 | ||
Other Liabilities | ||||
Standby Letters of Credit | 45.3 | 46.6 | ||
Loan Commitments | 46.3 | 48.9 | ||
Estimate of Fair Value, Fair Value Disclosure | Asset And Liability Management | Foreign Exchange Contracts | ||||
Derivative Instruments | ||||
Assets | 12.3 | 81.6 | ||
Liabilities | 80.2 | 19 | ||
Estimate of Fair Value, Fair Value Disclosure | Asset And Liability Management | Interest Rate Contracts | ||||
Derivative Instruments | ||||
Assets | 158.5 | 117.4 | ||
Liabilities | 42.2 | 22.7 | ||
Estimate of Fair Value, Fair Value Disclosure | Asset And Liability Management | Other Financial Derivatives | ||||
Derivative Instruments | ||||
Liabilities | 10.4 | 10.9 | ||
Estimate of Fair Value, Fair Value Disclosure | Client Related and Trading | Foreign Exchange Contracts | ||||
Derivative Instruments | ||||
Assets | 3,940.3 | 2,541.8 | ||
Liabilities | 3,948.2 | 2,500.4 | ||
Estimate of Fair Value, Fair Value Disclosure | Client Related and Trading | Interest Rate Contracts | ||||
Derivative Instruments | ||||
Assets | 175.5 | 111.1 | ||
Liabilities | 172.9 | 108.5 | ||
Estimate of Fair Value, Fair Value Disclosure | Level 1 | ||||
Assets | ||||
Cash and Due from Banks | 7,005 | 6,444.6 | ||
Securities | ||||
Available for Sale | 6,857.1 | 6,178.3 | ||
Held to Maturity | 26 | |||
Other Assets | ||||
Employee Benefit and Deferred Compensation | 117.7 | 104.2 | ||
Deposits | ||||
Demand, Noninterest-Bearing, Savings and Money Market | 45,495.2 | 45,191.3 | ||
Estimate of Fair Value, Fair Value Disclosure | Level 2 | ||||
Assets | ||||
Federal Funds Sold and Resell Agreements | 1,765.2 | 1,614.2 | ||
Interest-Bearing Deposits with Banks | 13,535.5 | 14,143.1 | ||
Federal Reserve Deposits | 14,415.3 | 16,398.5 | ||
Securities | ||||
Available for Sale | 26,456.5 | 26,122.5 | ||
Held to Maturity | 5,833.5 | 5,201.5 | ||
Trading Account | 0.2 | 1.2 | ||
Loans (excluding Leases) | ||||
Client Security Settlement Receivables | 1,902.7 | 2,157 | ||
Other Assets | ||||
Federal Reserve and Federal Home Loan Bank Stock | 253.1 | 253.1 | ||
Community Development Investments | 199.4 | 177.1 | ||
Employee Benefit and Deferred Compensation | 51.8 | 49.2 | ||
Deposits | ||||
Savings Certificates and Other Time | 1,425.1 | 1,463.5 | ||
Non U.S. Offices Interest-Bearing | 50,747.4 | 50,221.8 | ||
Federal Funds Purchased | 263.3 | 351.5 | ||
Securities Sold Under Agreements to Repurchase | 507.1 | 546.6 | ||
Other Borrowings | 4,009.8 | 4,055.7 | ||
Senior Notes | 1,573.3 | 1,531.8 | ||
Long Term Debt (excluding Leases) | ||||
Subordinated Debt | 1,353.6 | 1,332.2 | ||
Floating Rate Capital Debt | 223.5 | 236.6 | ||
Estimate of Fair Value, Fair Value Disclosure | Level 2 | Asset And Liability Management | Foreign Exchange Contracts | ||||
Derivative Instruments | ||||
Assets | 12.3 | 81.6 | ||
Liabilities | 80.2 | 19 | ||
Estimate of Fair Value, Fair Value Disclosure | Level 2 | Asset And Liability Management | Interest Rate Contracts | ||||
Derivative Instruments | ||||
Assets | 158.5 | 117.4 | ||
Liabilities | 42.2 | 22.7 | ||
Estimate of Fair Value, Fair Value Disclosure | Level 2 | Asset And Liability Management | Other Financial Derivatives | ||||
Derivative Instruments | ||||
Liabilities | 0.7 | 0.1 | ||
Estimate of Fair Value, Fair Value Disclosure | Level 2 | Client Related and Trading | Foreign Exchange Contracts | ||||
Derivative Instruments | ||||
Assets | 3,940.3 | 2,541.8 | ||
Liabilities | 3,948.2 | 2,500.4 | ||
Estimate of Fair Value, Fair Value Disclosure | Level 2 | Client Related and Trading | Interest Rate Contracts | ||||
Derivative Instruments | ||||
Assets | 175.5 | 111.1 | ||
Liabilities | 172.9 | 108.5 | ||
Estimate of Fair Value, Fair Value Disclosure | Level 3 | ||||
Securities | ||||
Available for Sale | 16.6 | 17.1 | ||
Loans (excluding Leases) | ||||
Held for Investment | 33,715.2 | 32,596.5 | ||
Held for Sale | 1.4 | 12 | ||
Other Liabilities | ||||
Standby Letters of Credit | 45.3 | 46.6 | ||
Loan Commitments | 46.3 | 48.9 | ||
Estimate of Fair Value, Fair Value Disclosure | Level 3 | Asset And Liability Management | Other Financial Derivatives | ||||
Derivative Instruments | ||||
Liabilities | $ 9.7 | $ 10.8 |
Securities (Narrative) (Details
Securities (Narrative) (Details) | 3 Months Ended | ||
Mar. 31, 2016USD ($)Investment | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Investment Security Gains, net (Note) | $ 300,000 | $ 100,000 | |
Gross proceeds from sale of securities | $ 513,600,000 | $ 102,000,000 | |
Number of securities in an unrealized loss position | Investment | 644 | ||
Total fair value | $ 13,381,700,000 | $ 23,548,600,000 | |
Total unrealized losses | 94,300,000 | $ 140,500,000 | |
Net impairment losses recognized in earnings | 0 | ||
Government Sponsored Agency | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Total unrealized losses | 30,100,000 | ||
Corporate Debt | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Total unrealized losses | $ 17,800,000 | ||
Percent of corporate debt portfolio | 33.00% | ||
Other | Community Reinvestment Act CRA | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Total unrealized losses | $ 34,000,000 | ||
Auction Rate | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Total unrealized losses | $ 500,000 |
Securities (Reconciliation of A
Securities (Reconciliation of Amortized Cost to Fair Value of Securities Available for Sale) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Investment Holdings [Line Items] | ||
Amortized Cost | $ 33,259.9 | $ 32,367.8 |
Gross unrealized, gains | 128.4 | 50.3 |
Gross unrealized, losses | 58.1 | 100.2 |
Fair Value | 33,330.2 | 32,317.9 |
U.S. Government | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 6,803.3 | 6,180.4 |
Gross unrealized, gains | 53.8 | 3.4 |
Gross unrealized, losses | 0 | 5.5 |
Fair Value | 6,857.1 | 6,178.3 |
Obligations of States and Political Subdivisions | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 190.5 | 36.4 |
Gross unrealized, gains | 0.3 | 0.1 |
Gross unrealized, losses | 1 | 0.1 |
Fair Value | 189.8 | 36.4 |
Government Sponsored Agency | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 16,866.1 | 16,370.5 |
Gross unrealized, gains | 56.6 | 42.8 |
Gross unrealized, losses | 30.1 | 46.5 |
Fair Value | 16,892.6 | 16,366.8 |
Non-U.S. Government | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 280.5 | 309.5 |
Gross unrealized, gains | 0.2 | 0.1 |
Gross unrealized, losses | 0 | 0.1 |
Fair Value | 280.7 | 309.5 |
Corporate Debt | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 3,865.3 | 3,744.4 |
Gross unrealized, gains | 10.3 | 0.9 |
Gross unrealized, losses | 17.8 | 33.1 |
Fair Value | 3,857.8 | 3,712.2 |
Covered Bonds | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 1,377.6 | 1,873.3 |
Gross unrealized, gains | 2.1 | 1.8 |
Gross unrealized, losses | 4.9 | 4.9 |
Fair Value | 1,374.8 | 1,870.2 |
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 1,069.5 | 860.9 |
Gross unrealized, gains | 2.6 | 0.5 |
Gross unrealized, losses | 1.9 | 2 |
Fair Value | 1,070.2 | 859.4 |
Other Asset-Backed | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 2,300.4 | 2,504.2 |
Gross unrealized, gains | 1.2 | 0.1 |
Gross unrealized, losses | 1.5 | 4.2 |
Fair Value | 2,300.1 | 2,500.1 |
Auction Rate | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 16.6 | 16.7 |
Gross unrealized, gains | 0.5 | 0.5 |
Gross unrealized, losses | 0.5 | 0.1 |
Fair Value | 16.6 | 17.1 |
Commercial Mortgage-Backed | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 406.5 | 378.1 |
Gross unrealized, gains | 0.7 | 0 |
Gross unrealized, losses | 0.3 | 3.7 |
Fair Value | 406.9 | 374.4 |
Other | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 83.6 | 93.4 |
Gross unrealized, gains | 0.1 | 0.1 |
Gross unrealized, losses | 0.1 | 0 |
Fair Value | $ 83.6 | $ 93.5 |
Securities (Reconciliation of53
Securities (Reconciliation of Amortized Cost to Fair Value of Securities Held to Maturity) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | $ 5,869.6 | $ 5,248.3 |
Gross Unrealized Gains | 28.1 | 19.5 |
Gross Unrealized Losses | 36.2 | 40.3 |
Fair Value | 5,861.5 | 5,227.5 |
U.S. Government | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 28 | 26 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 28 | 26 |
Obligations of States and Political Subdivisions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 79.3 | 89.2 |
Gross Unrealized Gains | 4.9 | 5.2 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 84.2 | 94.4 |
Government Sponsored Agency | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 9.2 | 9.9 |
Gross Unrealized Gains | 0.7 | 0.7 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 9.9 | 10.6 |
Corporate Debt | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 85.5 | |
Gross Unrealized Gains | 0.1 | |
Gross Unrealized Losses | 0 | |
Fair Value | 85.6 | |
Covered Bonds | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 1,578.4 | 892.4 |
Gross Unrealized Gains | 5.2 | 0.4 |
Gross Unrealized Losses | 1.6 | 1.9 |
Fair Value | 1,582 | 890.9 |
Non-U.S. Government | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 1,077.2 | 1,118 |
Gross Unrealized Gains | 6.7 | 4.8 |
Gross Unrealized Losses | 0 | 0.5 |
Fair Value | 1,083.9 | 1,122.3 |
Certificates of Deposit | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 730.5 | 691.6 |
Gross Unrealized Gains | 0.1 | 0.1 |
Gross Unrealized Losses | 0.2 | 0.1 |
Fair Value | 730.4 | 691.6 |
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 2,186.8 | 2,326.2 |
Gross Unrealized Gains | 10.4 | 8.3 |
Gross Unrealized Losses | 0.5 | 0.9 |
Fair Value | 2,196.7 | 2,333.6 |
Other | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total | 94.7 | 95 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 33.9 | 36.9 |
Fair Value | $ 60.8 | $ 58.1 |
Securities (Remaining Maturity
Securities (Remaining Maturity of Securities Available for Sale and Held to Maturity) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Available for Sale - Cost | ||
Due in One Year or Less | $ 9,795.2 | |
Due After One Year Through Five Years | 17,443.3 | |
Due After Five Years Through Ten Years | 4,742.3 | |
Due After Ten Years | 1,279.1 | |
Total | 33,259.9 | |
Held to Maturity - Amortized Cost | ||
Due in One Year or Less | 1,979 | |
Due After One Year Through Five Years | 3,823.7 | |
Due After Five Years Through Ten Years | 13.8 | |
Due After Ten Years | 53.1 | |
Total | 5,869.6 | $ 5,248.3 |
Available for Sale - Value | ||
Due in One Year or Less | 9,807.1 | |
Due After One Year Through Five Years | 17,498.9 | |
Due After Five Years Through Ten Years | 4,745.1 | |
Due After Ten Years | 1,279.1 | |
Total | 33,330.2 | |
Held to Maturity - Fair Value | ||
Due in One Year or Less | 1,982.8 | |
Due After One Year Through Five Years | 3,841.9 | |
Due After Five Years Through Ten Years | 11.1 | |
Due After Ten Years | 25.7 | |
Total | $ 5,861.5 | $ 5,227.5 |
Securities (Securities with Unr
Securities (Securities with Unrealized Losses) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Gain (Loss) on Investments [Line Items] | ||
Less than 12 months, fair value | $ 10,787.2 | $ 20,930.9 |
Less than 12 months, unrealized losses | 51.2 | 85.3 |
12 months or longer fair value | 2,594.5 | 2,617.7 |
12 months or longer unrealized losses | 43.1 | 55.2 |
Total fair value | 13,381.7 | 23,548.6 |
Total unrealized losses | 94.3 | 140.5 |
Government Sponsored Agency | ||
Gain (Loss) on Investments [Line Items] | ||
Less than 12 months, fair value | 6,251.9 | 9,208.5 |
Less than 12 months, unrealized losses | 21.9 | 38.7 |
12 months or longer fair value | 1,327.1 | 1,213.6 |
12 months or longer unrealized losses | 8.2 | 7.8 |
Total fair value | 7,579 | 10,422.1 |
Total unrealized losses | 30.1 | 46.5 |
Non-U.S. Government | ||
Gain (Loss) on Investments [Line Items] | ||
Less than 12 months, fair value | 314.3 | |
Less than 12 months, unrealized losses | 0.6 | |
12 months or longer fair value | 0 | |
12 months or longer unrealized losses | 0 | |
Total fair value | 314.3 | |
Total unrealized losses | 0.6 | |
U.S. Government | ||
Gain (Loss) on Investments [Line Items] | ||
Less than 12 months, fair value | 3,888 | |
Less than 12 months, unrealized losses | 5.5 | |
12 months or longer fair value | 0 | |
12 months or longer unrealized losses | 0 | |
Total fair value | 3,888 | |
Total unrealized losses | 5.5 | |
Obligations of States and Political Subdivisions | ||
Gain (Loss) on Investments [Line Items] | ||
Less than 12 months, fair value | 97.2 | 15.1 |
Less than 12 months, unrealized losses | 1 | 0.1 |
12 months or longer fair value | 0 | 0 |
12 months or longer unrealized losses | 0 | 0 |
Total fair value | 97.2 | 15.1 |
Total unrealized losses | 1 | 0.1 |
Corporate Debt | ||
Gain (Loss) on Investments [Line Items] | ||
Less than 12 months, fair value | 893.3 | 2,067.6 |
Less than 12 months, unrealized losses | 5.6 | 10.3 |
12 months or longer fair value | 1,041.7 | 1,057.1 |
12 months or longer unrealized losses | 12.2 | 22.8 |
Total fair value | 1,935 | 3,124.7 |
Total unrealized losses | 17.8 | 33.1 |
Covered Bonds | ||
Gain (Loss) on Investments [Line Items] | ||
Less than 12 months, fair value | 1,054.8 | 1,598.4 |
Less than 12 months, unrealized losses | 6.5 | 6.7 |
12 months or longer fair value | 0 | 10 |
12 months or longer unrealized losses | 0 | 0.1 |
Total fair value | 1,054.8 | 1,608.4 |
Total unrealized losses | 6.5 | 6.8 |
Sub-Sovereign, Supranational and Non-U.S. Agency Bonds | ||
Gain (Loss) on Investments [Line Items] | ||
Less than 12 months, fair value | 578.6 | 1,132.9 |
Less than 12 months, unrealized losses | 2.3 | 2.3 |
12 months or longer fair value | 109.8 | 109.3 |
12 months or longer unrealized losses | 0.1 | 0.6 |
Total fair value | 688.4 | 1,242.2 |
Total unrealized losses | 2.4 | 2.9 |
Other Asset-Backed | ||
Gain (Loss) on Investments [Line Items] | ||
Less than 12 months, fair value | 1,383.1 | 2,122.7 |
Less than 12 months, unrealized losses | 1.4 | 4 |
12 months or longer fair value | 60.3 | 170.6 |
12 months or longer unrealized losses | 0.1 | 0.2 |
Total fair value | 1,443.4 | 2,293.3 |
Total unrealized losses | 1.5 | 4.2 |
Certificates of Deposit | ||
Gain (Loss) on Investments [Line Items] | ||
Less than 12 months, fair value | 314.3 | 180.3 |
Less than 12 months, unrealized losses | 0.2 | 0.1 |
12 months or longer fair value | 0 | 0 |
12 months or longer unrealized losses | 0 | 0 |
Total fair value | 314.3 | 180.3 |
Total unrealized losses | 0.2 | 0.1 |
Auction Rate | ||
Gain (Loss) on Investments [Line Items] | ||
Less than 12 months, fair value | 0 | 0 |
Less than 12 months, unrealized losses | 0 | 0 |
12 months or longer fair value | 6 | 6.4 |
12 months or longer unrealized losses | 0.5 | 0.1 |
Total fair value | 6 | 6.4 |
Total unrealized losses | 0.5 | 0.1 |
Commercial Mortgage-Backed | ||
Gain (Loss) on Investments [Line Items] | ||
Less than 12 months, fair value | 140.5 | 374.4 |
Less than 12 months, unrealized losses | 0.3 | 3.7 |
12 months or longer fair value | 0 | 0 |
12 months or longer unrealized losses | 0 | 0 |
Total fair value | 140.5 | 374.4 |
Total unrealized losses | 0.3 | 3.7 |
Other | ||
Gain (Loss) on Investments [Line Items] | ||
Less than 12 months, fair value | 73.5 | 28.7 |
Less than 12 months, unrealized losses | 12 | 13.3 |
12 months or longer fair value | 49.6 | 50.7 |
12 months or longer unrealized losses | 22 | 23.6 |
Total fair value | 123.1 | 79.4 |
Total unrealized losses | $ 34 | $ 36.9 |
Securities (Cumulative Credit-R
Securities (Cumulative Credit-Related Losses on Securities) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Cumulative Credit-Related Losses on Securities Held — Beginning of Period | $ 5.2 | $ 5.2 |
Plus: Losses on Newly Identified Impairments | 0 | 0 |
Additional Losses on Previously Identified Impairments | 0 | 0 |
Less: Current and Prior Period Losses on Securities Sold During the Period | 0 | 0 |
Cumulative Credit-Related Losses on Securities Held — End of Period | $ 5.2 | $ 5.2 |
Securities Sold Under Agreeme57
Securities Sold Under Agreements to Repurchase (Repurchase Agreements Accounted for as Secured Borrowings) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 21 | $ 1,200 | $ 440.3 |
Amounts related to agreements not included in Note 21 | 37.3 | $ 27.3 |
Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Borrowings | 507.1 | |
Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 21 | 507.1 | |
Amounts related to agreements not included in Note 21 | 0 | |
Overnight and Continuous | U.S. Treasury and Agency Securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Borrowings | $ 507.1 |
Loans and Leases (Narrative) (D
Loans and Leases (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016USD ($)Loan | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($)Loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Collateral required on Residential real estate loan, lower limit | 65.00% | ||
Collateral required on Residential real estate loan, upper limit | 75.00% | ||
Draw period for credit line products | 10 years | ||
Other U.S. loans and non-U.S. loans, short duration advances | $ 1,000,000,000 | $ 719,500,000 | |
Demand deposits | 58,100,000 | 75,400,000 | |
Loans classified as held for sale | 1,400,000 | 12,000,000 | |
Leases classified as held for sale | 134,200,000 | 112,300,000 | |
Interest income that would have been recorded for nonperforming loans | 2,100,000 | $ 2,100,000 | |
Undrawn loan commitments and standby letters of credit | 2,400,000 | 3,100,000 | |
Total Loans and Leases | 34,144,900,000 | 33,180,900,000 | |
Unpaid principal balance | 208,000,000 | 209,800,000 | |
Foreclosed residential real estate properties with carrying value | 10,000,000 | ||
Consumer loans with carrying value collateralized by residential real estate property | $ 23,800,000 | ||
Lower Limit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Days contractually past due for interest and principal and the loan is not well-secured and in the process of collection | 90 days | ||
Upper Limit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Limit of individual homogeneous loans collective evaluation for impairment and excluded from impaired loan disclosures | $ 1,000,000 | ||
Equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Equity credit lines | $ 1,400,000,000 | $ 1,500,000,000 | |
Percentage of total equity credit lines | 89.00% | 89.00% | |
Nonperforming Financing Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | $ 83,400,000 | $ 79,200,000 | |
Performing Financing Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | $ 40,800,000 | $ 37,900,000 | |
Performing Financing Receivable | Lower Limit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Period for which troubled debt restructurings with modified terms is performing before ceasing to be classified as impaired loan | 6 months | ||
Residential Real Estate | Re-Defaulted | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Loans and Leases | Loan | 1 | 4 | |
Recorded Investment | $ 100,000 | $ 700,000 |
Loans and Leases (Loans and Lea
Loans and Leases (Loans and Leases) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | $ 34,144.9 | $ 33,180.9 |
Allowance for Credit Losses Assigned to Loans and Leases | (195.6) | (193.8) |
Net Loans and Leases | 33,949.3 | 32,987.1 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Allowance for Credit Losses Assigned to Loans and Leases | (88.7) | (86.3) |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 16,240.1 | 15,156.5 |
Commercial | Commercial and Institutional | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 9,941.1 | 9,431.5 |
Commercial | Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 3,902.9 | 3,848.8 |
Commercial | Lease Financing, net | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 470.6 | 544.4 |
Commercial | Non-U.S. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 1,769.9 | 1,137.7 |
Commercial | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 155.6 | 194.1 |
Personal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 17,904.8 | 18,024.4 |
Personal | Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 8,652.6 | 8,850.7 |
Personal | Private Client | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 9,232.6 | 9,136.4 |
Personal | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | $ 19.6 | $ 37.3 |
Loans and Leases (Borrower Rati
Loans and Leases (Borrower Ratings) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | $ 34,144.9 | $ 33,180.9 |
1 to 3 Category | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 18,409.9 | 17,910.4 |
4 to 5 Category | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 15,134.1 | 14,688.3 |
6 to 9 Category (Watch List) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 600.9 | 582.2 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 16,240.1 | 15,156.5 |
Commercial | 1 to 3 Category | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 9,598.2 | 8,968.9 |
Commercial | 4 to 5 Category | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 6,372.5 | 5,945.5 |
Commercial | 6 to 9 Category (Watch List) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 269.4 | 242.1 |
Commercial | Commercial and Institutional | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 9,941.1 | 9,431.5 |
Commercial | Commercial and Institutional | 1 to 3 Category | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 6,743.8 | 6,360.6 |
Commercial | Commercial and Institutional | 4 to 5 Category | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 2,999.5 | 2,897.2 |
Commercial | Commercial and Institutional | 6 to 9 Category (Watch List) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 197.8 | 173.7 |
Commercial | Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 3,902.9 | 3,848.8 |
Commercial | Real Estate | 1 to 3 Category | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 1,876.2 | 1,822.6 |
Commercial | Real Estate | 4 to 5 Category | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 1,988.8 | 1,992.7 |
Commercial | Real Estate | 6 to 9 Category (Watch List) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 37.9 | 33.5 |
Commercial | Lease Financing, net | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 470.6 | 544.4 |
Commercial | Lease Financing, net | 1 to 3 Category | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 312.5 | 377 |
Commercial | Lease Financing, net | 4 to 5 Category | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 125.1 | 133.1 |
Commercial | Lease Financing, net | 6 to 9 Category (Watch List) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 33 | 34.3 |
Commercial | Non-U.S. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 1,769.9 | 1,137.7 |
Commercial | Non-U.S. | 1 to 3 Category | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 598.7 | 313.8 |
Commercial | Non-U.S. | 4 to 5 Category | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 1,170.5 | 823.3 |
Commercial | Non-U.S. | 6 to 9 Category (Watch List) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 0.7 | 0.6 |
Commercial | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 155.6 | 194.1 |
Commercial | Other | 1 to 3 Category | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 67 | 94.9 |
Commercial | Other | 4 to 5 Category | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 88.6 | 99.2 |
Commercial | Other | 6 to 9 Category (Watch List) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 0 | 0 |
Personal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 17,904.8 | 18,024.4 |
Personal | 1 to 3 Category | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 8,811.7 | 8,941.5 |
Personal | 4 to 5 Category | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 8,761.6 | 8,742.8 |
Personal | 6 to 9 Category (Watch List) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 331.5 | 340.1 |
Personal | Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 8,652.6 | 8,850.7 |
Personal | Real Estate | 1 to 3 Category | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 3,009.4 | 3,014.9 |
Personal | Real Estate | 4 to 5 Category | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 5,335.2 | 5,516.7 |
Personal | Real Estate | 6 to 9 Category (Watch List) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 308 | 319.1 |
Personal | Private Client | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 9,232.6 | 9,136.4 |
Personal | Private Client | 1 to 3 Category | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 5,793.9 | 5,908.3 |
Personal | Private Client | 4 to 5 Category | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 3,415.2 | 3,207.1 |
Personal | Private Client | 6 to 9 Category (Watch List) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 23.5 | 21 |
Personal | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 19.6 | 37.3 |
Personal | Other | 1 to 3 Category | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 8.4 | 18.3 |
Personal | Other | 4 to 5 Category | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 11.2 | 19 |
Personal | Other | 6 to 9 Category (Watch List) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | $ 0 | $ 0 |
Loans and Leases (Delinquency S
Loans and Leases (Delinquency Status) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | $ 34,144.9 | $ 33,180.9 |
Other Real Estate Owned | 10.4 | 8.2 |
Total Nonperforming Assets | 174.4 | 188.3 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 16,240.1 | 15,156.5 |
Commercial | Commercial and Institutional | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 9,941.1 | 9,431.5 |
Commercial | Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 3,902.9 | 3,848.8 |
Commercial | Lease Financing, net | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 470.6 | 544.4 |
Commercial | Non-U.S. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 1,769.9 | 1,137.7 |
Commercial | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 155.6 | 194.1 |
Personal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 17,904.8 | 18,024.4 |
Personal | Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 8,652.6 | 8,850.7 |
Personal | Private Client | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 9,232.6 | 9,136.4 |
Personal | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 19.6 | 37.3 |
Performing Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 33,814.2 | 32,898.5 |
Total Loans and Leases | 33,980.9 | 33,000.8 |
Performing Financing Receivable | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due | 106.5 | 62.9 |
Performing Financing Receivable | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due | 50 | 32.3 |
Performing Financing Receivable | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due | 10.2 | 7.1 |
Performing Financing Receivable | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 16,149.4 | 15,077.1 |
Total Loans and Leases | 16,184.9 | 15,096.9 |
Performing Financing Receivable | Commercial | Commercial and Institutional | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 9,874.5 | 9,377.6 |
Total Loans and Leases | 9,899.4 | 9,388.6 |
Performing Financing Receivable | Commercial | Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 3,878.8 | 3,823.3 |
Total Loans and Leases | 3,889.4 | 3,832.1 |
Performing Financing Receivable | Commercial | Lease Financing, net | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 470.6 | 544.4 |
Total Loans and Leases | 470.6 | 544.4 |
Performing Financing Receivable | Commercial | Non-U.S. | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 1,769.9 | 1,137.7 |
Total Loans and Leases | 1,769.9 | 1,137.7 |
Performing Financing Receivable | Commercial | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 155.6 | 194.1 |
Total Loans and Leases | 155.6 | 194.1 |
Performing Financing Receivable | Commercial | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due | 27.4 | 10.2 |
Performing Financing Receivable | Commercial | 30-59 Days Past Due | Commercial and Institutional | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due | 23.8 | 7.8 |
Performing Financing Receivable | Commercial | 30-59 Days Past Due | Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due | 3.6 | 2.4 |
Performing Financing Receivable | Commercial | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due | 3.9 | 5.8 |
Performing Financing Receivable | Commercial | 60-89 Days Past Due | Commercial and Institutional | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due | 0.1 | 0.9 |
Performing Financing Receivable | Commercial | 60-89 Days Past Due | Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due | 3.8 | 4.9 |
Performing Financing Receivable | Commercial | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due | 4.2 | 3.8 |
Performing Financing Receivable | Commercial | 90 Days or More Past Due | Commercial and Institutional | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due | 1 | 2.3 |
Performing Financing Receivable | Commercial | 90 Days or More Past Due | Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due | 3.2 | 1.5 |
Performing Financing Receivable | Personal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 17,664.8 | 17,821.4 |
Total Loans and Leases | 17,796 | 17,903.9 |
Performing Financing Receivable | Personal | Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 8,499.1 | 8,679.3 |
Total Loans and Leases | 8,544.1 | 8,730.6 |
Performing Financing Receivable | Personal | Private Client | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 9,146.1 | 9,104.8 |
Total Loans and Leases | 9,232.3 | 9,136 |
Performing Financing Receivable | Personal | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 19.6 | 37.3 |
Total Loans and Leases | 19.6 | 37.3 |
Performing Financing Receivable | Personal | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due | 79.1 | 52.7 |
Performing Financing Receivable | Personal | 30-59 Days Past Due | Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due | 39.5 | 35.2 |
Performing Financing Receivable | Personal | 30-59 Days Past Due | Private Client | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due | 39.6 | 17.5 |
Performing Financing Receivable | Personal | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due | 46.1 | 26.5 |
Performing Financing Receivable | Personal | 60-89 Days Past Due | Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due | 1.6 | 14.5 |
Performing Financing Receivable | Personal | 60-89 Days Past Due | Private Client | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due | 44.5 | 12 |
Performing Financing Receivable | Personal | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due | 6 | 3.3 |
Performing Financing Receivable | Personal | 90 Days or More Past Due | Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due | 3.9 | 1.6 |
Performing Financing Receivable | Personal | 90 Days or More Past Due | Private Client | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due | 2.1 | 1.7 |
Nonperforming Financing Receivable | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 164 | 180.1 |
Nonperforming Financing Receivable | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 55.2 | 59.6 |
Nonperforming Financing Receivable | Commercial | Commercial and Institutional | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 41.7 | 42.9 |
Nonperforming Financing Receivable | Commercial | Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 13.5 | 16.7 |
Nonperforming Financing Receivable | Personal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 108.8 | 120.5 |
Nonperforming Financing Receivable | Personal | Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | 108.5 | 120.1 |
Nonperforming Financing Receivable | Personal | Private Client | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans and Leases | $ 0.3 | $ 0.4 |
Loans and Leases (Information a
Loans and Leases (Information about Impaired Loans as of the Period End) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | $ 156.4 | $ 157.3 | |
Unpaid principal balance | 208 | 209.8 | |
Specific allowance | 1.4 | 3.1 | |
Average recorded investment | 158.3 | $ 246.9 | |
Interest income recognized | 0.6 | 0.6 | |
Commercial | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 55.8 | 56.3 | |
Unpaid principal balance | 67.3 | 67.4 | |
Specific allowance | 1.2 | 3 | |
Average recorded investment | 56.9 | 81.8 | |
Interest income recognized | 0.2 | 0.3 | |
Commercial | Commercial and Institutional | |||
Financing Receivable, Impaired [Line Items] | |||
With no related specific reserve, recorded investment | 28.9 | 27.1 | |
With a related specific reserve, recorded investment | 8 | 9.3 | |
With no related specific reserve, unpaid principal balance | 32.5 | 30.7 | |
With a related specific reserve, unpaid principal balance | 10.1 | 11.4 | |
Specific allowance | 0.4 | 1.6 | |
With no related specific reserve, average recorded investment | 28.3 | 9.2 | |
With a related specific reserve, average recorded investment | 8.4 | 8.5 | |
With no related specific reserve, interest income recognized | 0 | 0 | |
With a related specific reserve, interest income recognized | 0 | 0 | |
Commercial | Real Estate | |||
Financing Receivable, Impaired [Line Items] | |||
With no related specific reserve, recorded investment | 16.8 | 17.2 | |
With a related specific reserve, recorded investment | 0 | 0 | |
With no related specific reserve, unpaid principal balance | 21.2 | 21.2 | |
With a related specific reserve, unpaid principal balance | 1.4 | 1.4 | |
Specific allowance | 0 | 0 | |
With no related specific reserve, average recorded investment | 17.7 | 48.5 | |
With a related specific reserve, average recorded investment | 0 | 12.2 | |
With no related specific reserve, interest income recognized | 0.1 | 0.2 | |
With a related specific reserve, interest income recognized | 0 | 0 | |
Commercial | Lease Financing, net | |||
Financing Receivable, Impaired [Line Items] | |||
With no related specific reserve, recorded investment | 1.3 | 0 | |
With a related specific reserve, recorded investment | 0.8 | 2.7 | |
With no related specific reserve, unpaid principal balance | 1.3 | 0 | |
With a related specific reserve, unpaid principal balance | 0.8 | 2.7 | |
Specific allowance | 0.8 | 1.4 | |
With no related specific reserve, average recorded investment | 0.4 | 3.4 | |
With a related specific reserve, average recorded investment | 2.1 | 0 | |
With no related specific reserve, interest income recognized | 0.1 | 0.1 | |
With a related specific reserve, interest income recognized | 0 | 0 | |
Personal | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 100.6 | 101 | |
Unpaid principal balance | 140.7 | 142.4 | |
Specific allowance | 0.2 | 0.1 | |
Average recorded investment | 101.4 | 165.1 | |
Interest income recognized | 0.4 | 0.3 | |
Personal | Real Estate | |||
Financing Receivable, Impaired [Line Items] | |||
With no related specific reserve, recorded investment | 99 | 99.3 | |
With a related specific reserve, recorded investment | 1.4 | 1.5 | |
With no related specific reserve, unpaid principal balance | 139 | 140.7 | |
With a related specific reserve, unpaid principal balance | 1.5 | 1.5 | |
Specific allowance | 0.2 | 0.1 | |
With no related specific reserve, average recorded investment | 99.6 | 161.3 | |
With a related specific reserve, average recorded investment | 1.5 | 2.8 | |
With no related specific reserve, interest income recognized | 0.4 | 0.3 | |
With a related specific reserve, interest income recognized | 0 | 0 | |
Personal | Private Client | |||
Financing Receivable, Impaired [Line Items] | |||
With no related specific reserve, recorded investment | 0.2 | 0.2 | |
With a related specific reserve, recorded investment | 0 | 0 | |
With no related specific reserve, unpaid principal balance | 0.2 | 0.2 | |
With a related specific reserve, unpaid principal balance | 0 | 0 | |
Specific allowance | 0 | $ 0 | |
With no related specific reserve, average recorded investment | 0.3 | 0.2 | |
With a related specific reserve, average recorded investment | 0 | 0.8 | |
With no related specific reserve, interest income recognized | 0 | 0 | |
With a related specific reserve, interest income recognized | $ 0 | $ 0 |
Loans and Leases (Troubled Debt
Loans and Leases (Troubled Debt Restructurings) (Details) - Lease Financing, net $ in Millions | 3 Months Ended | |
Mar. 31, 2016USD ($)Contract | Mar. 31, 2015USD ($)Contract | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans and Leases | Contract | 31 | 59 |
Financing Receivable, Modifications, Recorded Investment, Modified During Period | $ 14.9 | $ 7.9 |
Financing Receivable, Modifications, Unpaid Principal Balance | $ 19.9 | $ 11 |
Commercial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans and Leases | Contract | 7 | 2 |
Financing Receivable, Modifications, Recorded Investment, Modified During Period | $ 9.4 | $ 0.8 |
Financing Receivable, Modifications, Unpaid Principal Balance | $ 13.7 | $ 0.8 |
Commercial | Commercial and Institutional | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans and Leases | Contract | 2 | 1 |
Financing Receivable, Modifications, Recorded Investment, Modified During Period | $ 4 | $ 0.1 |
Financing Receivable, Modifications, Unpaid Principal Balance | $ 6 | $ 0.1 |
Commercial | Real Estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans and Leases | Contract | 5 | 1 |
Financing Receivable, Modifications, Recorded Investment, Modified During Period | $ 5.4 | $ 0.7 |
Financing Receivable, Modifications, Unpaid Principal Balance | $ 7.7 | $ 0.7 |
Personal | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans and Leases | Contract | 24 | 57 |
Financing Receivable, Modifications, Recorded Investment, Modified During Period | $ 5.5 | $ 7.1 |
Financing Receivable, Modifications, Unpaid Principal Balance | $ 6.2 | $ 10.2 |
Personal | Real Estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans and Leases | Contract | 24 | 57 |
Financing Receivable, Modifications, Recorded Investment, Modified During Period | $ 5.5 | $ 7.1 |
Financing Receivable, Modifications, Unpaid Principal Balance | $ 6.2 | $ 10.2 |
Personal | Private Client | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans and Leases | Contract | 0 | |
Financing Receivable, Modifications, Recorded Investment, Modified During Period | $ 0 | |
Financing Receivable, Modifications, Unpaid Principal Balance | $ 0 |
Allowance for Credit Losses (Ch
Allowance for Credit Losses (Changes in Allowance for Credit Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | $ 233.3 | $ 295.9 |
Charge-Offs | (5.3) | (7.5) |
Recoveries | 2.6 | 2.9 |
Net (Charge-Offs) Recoveries | (2.7) | (4.6) |
Provision for Credit Losses | 2 | (4.5) |
Effect of Foreign Exchange Rates | 0 | (0.1) |
Balance at end of period | 232.6 | 286.7 |
Commercial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 114.8 | 169.7 |
Charge-Offs | (3.5) | (2.7) |
Recoveries | 1.2 | 1.7 |
Net (Charge-Offs) Recoveries | (2.3) | (1) |
Provision for Credit Losses | 2.7 | (4.3) |
Effect of Foreign Exchange Rates | 0 | (0.1) |
Balance at end of period | 115.2 | 164.3 |
Personal | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 118.5 | 126.2 |
Charge-Offs | (1.8) | (4.8) |
Recoveries | 1.4 | 1.2 |
Net (Charge-Offs) Recoveries | (0.4) | (3.6) |
Provision for Credit Losses | (0.7) | (0.2) |
Effect of Foreign Exchange Rates | 0 | 0 |
Balance at end of period | $ 117.4 | $ 122.4 |
Allowance for Credit Losses (Re
Allowance for Credit Losses (Recorded Investments in Loans and Leases) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Loans and Leases | ||||
Specifically Evaluated for Impairment | $ 156.4 | $ 157.3 | ||
Evaluated for Inherent Impairment | 33,988.5 | 33,023.6 | ||
Total Loans and Leases (Net of unearned income of $93.4 and $103.6) | 34,144.9 | 33,180.9 | ||
Allowance for Loans and Leases | ||||
Specifically Evaluated for Impairment | 1.4 | 3.1 | ||
Evaluated for Inherent Impairment | 194.2 | 190.7 | ||
Allowance Assigned to Loans and Leases | 195.6 | 193.8 | ||
Allowance for Unfunded Exposures | ||||
Commitments and Standby Letters of Credit | 37 | 39.5 | ||
Total Allowance for Credit Losses | 232.6 | 233.3 | $ 286.7 | $ 295.9 |
Commercial | ||||
Loans and Leases | ||||
Specifically Evaluated for Impairment | 55.8 | 56.3 | ||
Evaluated for Inherent Impairment | 16,184.3 | 15,100.2 | ||
Total Loans and Leases (Net of unearned income of $93.4 and $103.6) | 16,240.1 | 15,156.5 | ||
Allowance for Loans and Leases | ||||
Specifically Evaluated for Impairment | 1.2 | 3 | ||
Evaluated for Inherent Impairment | 87.5 | 83.3 | ||
Allowance Assigned to Loans and Leases | 88.7 | 86.3 | ||
Allowance for Unfunded Exposures | ||||
Commitments and Standby Letters of Credit | 26.5 | 28.5 | ||
Total Allowance for Credit Losses | 115.2 | 114.8 | 164.3 | 169.7 |
Personal | ||||
Loans and Leases | ||||
Specifically Evaluated for Impairment | 100.6 | 101 | ||
Evaluated for Inherent Impairment | 17,804.2 | 17,923.4 | ||
Total Loans and Leases (Net of unearned income of $93.4 and $103.6) | 17,904.8 | 18,024.4 | ||
Allowance for Loans and Leases | ||||
Specifically Evaluated for Impairment | 0.2 | 0.1 | ||
Evaluated for Inherent Impairment | 106.7 | 107.4 | ||
Allowance Assigned to Loans and Leases | 106.9 | 107.5 | ||
Allowance for Unfunded Exposures | ||||
Commitments and Standby Letters of Credit | 10.5 | 11 | ||
Total Allowance for Credit Losses | $ 117.4 | $ 118.5 | $ 122.4 | $ 126.2 |
Pledged Assets (Narrative) (Det
Pledged Assets (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Amount of securities and loans pledged | $ 35,500,000,000 | $ 35,800,000,000 | |
Fair value of accepted collateral | 1,600,000,000 | 1,500,000,000 | |
Amount of securities repledged or sold collateral | 0 | 0 | |
Average deposits maintained to meet Federal Reserve Bank reserve requirements | 1,800,000,000 | $ 1,500,000,000 | |
US Government Agencies Debt Securities And Other Securities | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Amount of securities and loans pledged | 26,800,000,000 | 27,100,000,000 | |
Obligations of States and Political Subdivisions | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Amount of securities and loans pledged | 211,000,000 | 117,500,000 | |
Loans | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Amount of securities and loans pledged | 8,500,000,000 | 8,600,000,000 | |
Collateral Requirements | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Amount of securities and loans pledged | 6,900,000,000 | 8,900,000,000 | |
Securities Available for Sale | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Amount of securities and loans pledged | $ 1,405,700,000 | $ 1,545,600,000 |
Goodwill and Other Intangible67
Goodwill and Other Intangibles (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated future amortization expense for 2016 | $ 6.4 | |
Estimated future amortization expense for 2017 | 8.5 | |
Estimated future amortization expense for 2018 | 7.9 | |
Estimated future amortization expense for 2019 | 7.7 | |
Estimated future amortization expense for 2020 | 7.7 | |
Other Intangible Assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense related to other intangible assets | $ 2.1 | $ 4.6 |
Goodwill and Other Intangible68
Goodwill and Other Intangibles (Goodwill by Reporting Segment) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Goodwill [Line Items] | ||
Goodwill | $ 523.6 | $ 526.4 |
Corporate & Institutional Services | ||
Goodwill [Line Items] | ||
Goodwill | 452.3 | 455.1 |
Wealth Management | ||
Goodwill [Line Items] | ||
Goodwill | $ 71.3 | $ 71.3 |
Goodwill and Other Intangible69
Goodwill and Other Intangibles (Other Intangible Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Gross Carrying Amount | $ 87.2 | $ 182.3 |
Less: Accumulated Amortization | 41.9 | 135.8 |
Net Book Value | $ 45.3 | $ 46.5 |
Reporting Segments (Results of
Reporting Segments (Results of Reporting Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Trust, Investment and Other Servicing Fees | $ 748.2 | $ 727.5 |
Foreign Exchange Trading Income | 60.5 | 71.6 |
Other Noninterest Income | 73.5 | 74.8 |
Net Interest Income | 314 | 266.8 |
Revenue | 1,196.2 | 1,140.7 |
Provision for Credit Losses | 2 | (4.5) |
Noninterest Expense | 828.8 | 789 |
Income before Income Taxes | 365.4 | 356.2 |
Provision for Income Taxes | 123.6 | 125.5 |
Net Income | $ 241.8 | $ 230.7 |
Percentage of Consolidated Net Income | 100.00% | 100.00% |
Average Assets | $ 113,417.1 | $ 107,513.2 |
FTE adjustments | 6.2 | 6.2 |
Corporate & Institutional Services | ||
Segment Reporting Information [Line Items] | ||
Trust, Investment and Other Servicing Fees | 433.4 | 407.3 |
Foreign Exchange Trading Income | 51.7 | 67.5 |
Other Noninterest Income | 45.6 | 41.9 |
Net Interest Income | 138.4 | 96 |
Revenue | 669.1 | 612.7 |
Provision for Credit Losses | (3.2) | (2.2) |
Noninterest Expense | 475.3 | 434.9 |
Income before Income Taxes | 197 | 180 |
Provision for Income Taxes | 62.2 | 57.3 |
Net Income | $ 134.8 | $ 122.7 |
Percentage of Consolidated Net Income | 56.00% | 53.00% |
Average Assets | $ 75,372.9 | $ 69,224.5 |
Wealth Management | ||
Segment Reporting Information [Line Items] | ||
Trust, Investment and Other Servicing Fees | 314.8 | 320.2 |
Foreign Exchange Trading Income | 4.5 | 4.1 |
Other Noninterest Income | 26.8 | 28.8 |
Net Interest Income | 158.5 | 138.3 |
Revenue | 504.6 | 491.4 |
Provision for Credit Losses | 5.2 | (2.3) |
Noninterest Expense | 326.9 | 321.9 |
Income before Income Taxes | 172.5 | 171.8 |
Provision for Income Taxes | 64.9 | 64.6 |
Net Income | $ 107.6 | $ 107.2 |
Percentage of Consolidated Net Income | 44.00% | 47.00% |
Average Assets | $ 26,237.8 | $ 24,233.7 |
Treasury and Other | ||
Segment Reporting Information [Line Items] | ||
Trust, Investment and Other Servicing Fees | 0 | 0 |
Foreign Exchange Trading Income | 4.3 | 0 |
Other Noninterest Income | 1.1 | 4.1 |
Net Interest Income | 17.1 | 32.5 |
Revenue | 22.5 | 36.6 |
Provision for Credit Losses | 0 | 0 |
Noninterest Expense | 26.6 | 32.2 |
Income before Income Taxes | (4.1) | 4.4 |
Provision for Income Taxes | (3.5) | 3.6 |
Net Income | $ (0.6) | $ 0.8 |
Percentage of Consolidated Net Income | 0.00% | 0.00% |
Average Assets | $ 11,806.4 | $ 14,055 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) | Jul. 21, 2015 | Mar. 31, 2016 | Dec. 31, 2015 |
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |
Preferred stock | $ 388,500,000 | $ 388,500,000 | |
Preferred stock, without par value | $ 0 | $ 0 | |
Preferred Stock, Outstanding | 16,000 | 16,000 | |
Stock repurchase, shares | 2,310,617 | ||
Stock repurchase, share-based compensation plan, shares | 385,604 | ||
Average price paid per share for common stock repurchased | $ 60.71 | ||
Stock repurchase, aggregate cost | $ 140,300,000 | ||
Stock repurchase authorized, remaining shares | 7,393,385 | ||
Upper Limit | |||
Class of Stock [Line Items] | |||
Stock repurchase authorized shares | 15,000,000 | ||
Stock repurchase authorized amount | $ 145,000,000 | ||
Series C Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock | $ 388,500,000 | $ 388,500,000 | |
Stock issued during period | 16,000,000 | ||
Shares issued | 0 | 0 | |
Preferred stock, without par value | $ 0 | $ 0 | |
Preferred Stock, Outstanding | 16,000 | 16,000 | |
Preferred stock, liquidation preference | $ 25,000 | $ 25,000 | |
Depository shares, liquidation preference per share | $ 25 | $ 25 | |
Preferred stock, annual dividend rate | 5.85% | ||
Preferred stock, dividends per share, declared | $ 365.625 | ||
Dividends payable, date to be paid | Apr. 1, 2016 | ||
Dividends payable, date of record | Mar. 15, 2016 | ||
Per share ownership interest, percentage | 0.10% | 0.10% |
Accumulated Other Comprehensi72
Accumulated Other Comprehensive Income (Loss) (Summary of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | $ (372.7) | $ (319.7) |
Net Change | 88.8 | 53.3 |
Ending balance | (283.9) | (266.4) |
Net Unrealized Gains (Losses) on Securities Available for Sale | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (31) | 27.6 |
Net Change | 74.7 | 54.1 |
Ending balance | 43.7 | 81.7 |
Net Unrealized Gains (Losses) on Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (3) | (4.7) |
Net Change | 6.1 | (1.1) |
Ending balance | 3.1 | (5.8) |
Net Foreign Currency Adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (17.6) | (1.7) |
Net Change | 3.9 | (5.9) |
Ending balance | (13.7) | (7.6) |
Net Pension and Other Postretirement Benefit Adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (321.1) | (340.9) |
Net Change | 4.1 | 6.2 |
Ending balance | $ (317) | $ (334.7) |
Accumulated Other Comprehensi73
Accumulated Other Comprehensive Income (Loss) (Details of Changes In Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive Income (Loss) | $ 88.8 | $ 53.3 |
Net Unrealized Gains (Losses) on Securities Available for Sale | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before Tax | 120.2 | 86.7 |
Tax Effect | (45.5) | (32.6) |
Other Comprehensive Income (Loss) | 74.7 | 54.1 |
Net Unrealized Gains (Losses) on Securities Available for Sale | Noncredit-Related Unrealized Losses on Securities OTTI | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before Tax | 0 | 0 |
Tax Effect | 0 | 0 |
Other Comprehensive Income (Loss) | 0 | 0 |
Net Unrealized Gains (Losses) on Securities Available for Sale | Other Unrealized Gains (Losses) on Securities Available for Sale | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before Tax | 120.5 | 86.8 |
Tax Effect | (45.6) | (32.7) |
Other Comprehensive Income (Loss) | 74.9 | 54.1 |
Net Unrealized Gains (Losses) on Securities Available for Sale | Reclassification Adjustment for (Gains) Losses Included in Net Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before Tax | (0.3) | (0.1) |
Tax Effect | 0.1 | 0.1 |
Other Comprehensive Income (Loss) | (0.2) | 0 |
Net Unrealized Gains (Losses) on Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before Tax | 10 | (3.7) |
Tax Effect | (3.9) | 2.6 |
Other Comprehensive Income (Loss) | 6.1 | (1.1) |
Net Unrealized Gains (Losses) on Cash Flow Hedges | Reclassification Adjustment for (Gains) Losses Included in Net Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before Tax | 0.6 | 1 |
Tax Effect | (0.2) | (0.4) |
Other Comprehensive Income (Loss) | 0.4 | 0.6 |
Net Unrealized Gains (Losses) on Cash Flow Hedges | Unrealized Gains (Losses) on Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before Tax | 9.4 | (4.7) |
Tax Effect | (3.7) | 3 |
Other Comprehensive Income (Loss) | 5.7 | (1.7) |
Net Foreign Currency Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before Tax | (5) | 25.5 |
Tax Effect | 8.9 | (31.4) |
Other Comprehensive Income (Loss) | 3.9 | (5.9) |
Net Foreign Currency Adjustments | Reclassification Adjustment for (Gains) Losses Included in Net Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before Tax | 0 | 0 |
Tax Effect | 0 | 0 |
Other Comprehensive Income (Loss) | 0 | 0 |
Net Foreign Currency Adjustments | Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before Tax | 17.3 | (90.1) |
Tax Effect | (0.3) | 12.2 |
Other Comprehensive Income (Loss) | 17 | (77.9) |
Net Foreign Currency Adjustments | Long-Term Intra-Entity Foreign Currency Transaction Gains (Losses) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before Tax | 4.2 | (1) |
Tax Effect | (1) | 0.3 |
Other Comprehensive Income (Loss) | 3.2 | (0.7) |
Net Foreign Currency Adjustments | Net Investment Hedge Gains (Losses) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before Tax | (26.5) | 116.6 |
Tax Effect | 10.2 | (43.9) |
Other Comprehensive Income (Loss) | (16.3) | 72.7 |
Net Pension and Other Postretirement Benefit Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before Tax | 6.4 | 9.5 |
Tax Effect | (2.3) | (3.3) |
Other Comprehensive Income (Loss) | 4.1 | 6.2 |
Net Pension and Other Postretirement Benefit Adjustments | Reclassification Adjustment for (Gains) Losses Included in Net Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before Tax | 6.4 | 9.5 |
Tax Effect | (2.3) | (3.3) |
Other Comprehensive Income (Loss) | 4.1 | 6.2 |
Net Pension and Other Postretirement Benefit Adjustments | Net Actuarial Gain (Loss) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before Tax | 0 | 0 |
Tax Effect | 0 | 0 |
Other Comprehensive Income (Loss) | $ 0 | $ 0 |
Accumulated Other Comprehensi74
Accumulated Other Comprehensive Income (Loss) (Reclassification Adjustment Out of Accumulated Other Comprehensive Income (Loss)) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Securities Available for Sale | Realized (Gains) Losses on Securities Available for Sale | Investment Security Gains, net | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |
Gross Reclassification Adjustment | $ (0.3) |
Realized Losses on Cash Flow Hedges | Foreign Exchange Contracts | Other Operating Income/Expense | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |
Gross Reclassification Adjustment | 0.6 |
Pension and Other Postretirement Benefit Adjustments | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |
Gross Reclassification Adjustment | 6.4 |
Pension and Other Postretirement Benefit Adjustments | Employee Benefits | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |
Amortization of Net Actuarial (Gains) Losses | 6.5 |
Amortization of Prior Service Cost | $ (0.1) |
Net Income Per Common Share C75
Net Income Per Common Share Computations (Net Income Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Basic Net Income Per Common Share | ||
Average Number of Common Shares Outstanding | 228,619,089 | 233,381,168 |
Net Income | $ 241.8 | $ 230.7 |
Less: Dividends on Preferred Stock | 5.9 | 5.9 |
Net Income Applicable to Common Stock | 235.9 | 224.8 |
Less: Earnings Allocated to Participating Securities | 4.1 | 3.7 |
Earnings Allocated to Common Shares Outstanding | $ 231.8 | $ 221.1 |
Basic Net Income Per Common Share (in dollars per share) | $ 1.01 | $ 0.95 |
Diluted Net Income Per Common Share | ||
Average Number of Common Shares Outstanding | 228,619,089 | 233,381,168 |
Plus: Dilutive Effect of Share-based Compensation | 1,360,601 | 1,907,527 |
Average Common and Potential Common Shares | 229,979,690 | 235,288,695 |
Earnings Allocated to Common and Potential Common Shares | $ 231.9 | $ 221.1 |
Diluted Net Income Per Common Share (in dollars per share) | $ 1.01 | $ 0.94 |
Common stock equivalents not included in the computation of diluted earnings per share because their inclusion would have been antidilutive | 1,796,320 | 1,504,850 |
Net Interest Income (Net Intere
Net Interest Income (Net Interest Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Interest Income | ||
Loans and Leases | $ 200.9 | $ 183.9 |
Securities - Taxable | 103.3 | 76.6 |
Securities - Non-Taxable | 1.1 | 1.3 |
Interest-Bearing Due from and Deposits with Banks | 23.7 | 26.6 |
Federal Reserve Deposits and Other | 23 | 10.4 |
Total Interest Income | 352 | 298.8 |
Interest Expense | ||
Deposits | 22.2 | 16.7 |
Federal Funds Purchased | 0.3 | 0.2 |
Securities Sold Under Agreements to Repurchase | 0.4 | 0.1 |
Other Borrowings | 2.7 | 1.2 |
Senior Notes | 11.7 | 11.6 |
Long-Term Debt | 6.1 | 7.8 |
Floating Rate Capital Debt | 0.8 | 0.6 |
Total Interest Expense | 44.2 | 38.2 |
Net Interest Income | $ 307.8 | $ 260.6 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 117.4 | $ 119.3 |
Effective tax rate | 32.70% | 34.10% |
Pension and Postretirement He78
Pension and Postretirement Health Care (Net Periodic Pension Expense (Benefit)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
U.S. Plan | ||
Defined Benefit plan Net periodic benefit cost | ||
Service Cost | $ 9.3 | $ 9.5 |
Interest Cost | 11.5 | 11.2 |
Expected Return on Plan Assets | (23.6) | (24.1) |
Amortization | ||
Net Actuarial Loss (Gain) | 4.7 | 7.4 |
Prior Service Cost | (0.1) | (0.1) |
Net Periodic Pension Expense | 1.8 | 3.9 |
Non U.S. Plans | ||
Defined Benefit plan Net periodic benefit cost | ||
Interest Cost | 1.3 | 1.4 |
Expected Return on Plan Assets | (1.3) | (1.5) |
Amortization | ||
Net Actuarial Loss (Gain) | 0.3 | 0.4 |
Net Periodic Pension Expense | 0.3 | 0.3 |
Supplemental Plan | ||
Defined Benefit plan Net periodic benefit cost | ||
Service Cost | 0.9 | 0.9 |
Interest Cost | 1.3 | 1.3 |
Amortization | ||
Net Actuarial Loss (Gain) | 1.5 | 1.8 |
Prior Service Cost | 0 | 0 |
Net Periodic Pension Expense | 3.7 | 4 |
Postretirement Health Care Plan | ||
Defined Benefit plan Net periodic benefit cost | ||
Service Cost | 0 | 0 |
Interest Cost | 0.4 | 0.3 |
Amortization | ||
Net Actuarial Loss (Gain) | 0 | 0 |
Net Periodic Pension Expense | $ 0.4 | $ 0.3 |
Share-Based Compensation Plan79
Share-Based Compensation Plans (Compensation Expense for Share-Based Arrangements and Tax Impacts) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 25.8 | $ 22.9 |
Tax Benefits Recognized | 9.7 | 8.6 |
Restricted Stock Unit Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 15.3 | 13.5 |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 6.4 | 6 |
Performance Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 4.1 | $ 3.4 |
Share-Based Compensation Plan80
Share-Based Compensation Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted | 633,224 | |
Compensation expense on fully vested on options | $ 5.5 | $ 4.3 |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant-date fair value | $ 9.5 | |
Restricted Stock Unit Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units granted | 1,190,617 | |
Grant-date fair value | $ 69.4 | |
Compensation expense on fully vested equity units | $ 2 | $ 1.5 |
Performance Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units granted | 354,606 | |
Grant-date fair value | $ 20.7 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Variable Interest Entity [Line Items] | |||
Unfunded commitment related to seed capital investments | $ 23,500,000 | $ 25,000,000 | |
Tax Credit Structures | |||
Variable Interest Entity [Line Items] | |||
Carrying amounts | 161,600,000 | 173,500,000 | |
Exposure to loss from liquidity arrangements and obligations to purchase assets | 0 | ||
Liabilities related to undrawn commitments | 10,100,000 | 10,500,000 | |
Affordable housing tax credits and other tax benefits | 12,000,000 | $ 13,200,000 | |
Leveraged Leasing Transactions | |||
Variable Interest Entity [Line Items] | |||
Carrying amounts | 320,800,000 | 389,400,000 | |
Exposure to loss from liquidity arrangements and obligations to purchase assets | $ 0 | ||
Leveraged Leasing Transactions | Lower Limit | |||
Variable Interest Entity [Line Items] | |||
Funding of asset's cost via an equity interest | 20.00% | ||
Funding of asset's cost via third party non recourse debt holders | 70.00% | ||
Leveraged Leasing Transactions | Upper Limit | |||
Variable Interest Entity [Line Items] | |||
Funding of asset's cost via an equity interest | 30.00% | ||
Funding of asset's cost via third party non recourse debt holders | 80.00% | ||
Other Assets | |||
Variable Interest Entity [Line Items] | |||
Investments valued using net asset value per share | $ 27,000,000 | $ 25,300,000 | |
Accounting Standards Update 2015-02 | |||
Variable Interest Entity [Line Items] | |||
Money market mutual funds fees waived | $ 7,700,000 |
Contingent Liabilities (Narrati
Contingent Liabilities (Narrative) (Details) shares in Millions | Jan. 14, 2014case | Jan. 31, 2015trust | Dec. 31, 2013USD ($)lawsuit | Mar. 31, 2016USD ($)shares | Dec. 31, 2015USD ($) |
Loss Contingencies [Line Items] | |||||
Commitments and letters of credit | $ 37,400,000,000 | $ 37,200,000,000 | |||
Standby letters of credit outstanding | $ 4,300,000,000 | ||||
Minimum securities lending related collateral percentage | 100.00% | ||||
Legal settlement charge | $ 19,200,000 | ||||
Number of lawsuits settled, charges that have been recorded | lawsuit | 2 | ||||
Number of opt-out cases filed by merchants | case | 30 | ||||
Remaining Visa shares held by Northern Trust, original cost basis | $ 0 | ||||
Visa Class B | |||||
Loss Contingencies [Line Items] | |||||
Remaining Visa shares held by Northern Trust | shares | 5.2 | ||||
Northern Trust Fiduciary Services (Guernsey) Limited | Subsidiaries | |||||
Loss Contingencies [Line Items] | |||||
Number of administrated trusts serving as trustee on | trust | 2 | ||||
Indemnification Agreement | |||||
Loss Contingencies [Line Items] | |||||
Collateralized securities loaned, subject to indemnification | $ 97,200,000,000 | 94,500,000,000 | |||
Credit loss liability | 0 | $ 0 | |||
Upper Limit | |||||
Loss Contingencies [Line Items] | |||||
Possible loss in future periods in excess of accrual | $ 140,000,000 |
Derivative Financial Instrume83
Derivative Financial Instruments (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Derivative [Line Items] | |||
Derivative assets recorded on the consolidated balance sheet, reduced as a result of master netting agreements | $ 1,700,000,000 | $ 1,300,000,000 | |
Derivative liabilities recorded on the consolidated balance sheet, reduced as a result of master netting agreements | 1,700,000,000 | 1,300,000,000 | |
Reduction in derivative assets due to cash collateral received from derivative counterparties | 871,900,000 | 322,800,000 | |
Reduction in derivative liabilities due to cash collateral deposited with derivative counterparties | 1,200,000,000 | 440,300,000 | |
This amount represents additional cash collateral received from derivative counterparties not offset against derivative assets | 96,500,000 | 31,100,000 | |
This amount represents additional cash collateral deposited with derivative counterparties not offset against derivative liabilities | 37,300,000 | 27,300,000 | |
Gains or losses reclassified into earnings | $ 0 | $ 0 | |
maximum length of time over which exposure was being hedged | 23 months | ||
Securities posted as collateral | $ 35,900,000 | 15,400,000 | |
Aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a liability position | 1,500,000,000 | 553,200,000 | |
Collateral deposited with derivative counterparties for derivatives instruments with credit-risk-related contingent features that are in a liability position | 1,100,000,000 | 163,000,000 | |
Termination payments that could have been required for derivative instruments with credit-risk-related contingent features | 351,100,000 | $ 390,200,000 | |
Ineffectiveness or changes in the fair value of hedged items recognized in earnings for fair value hedges | 0 | 0 | |
Ineffectiveness recognized in earnings for cash flow hedges | 0 | 0 | |
Ineffectiveness from net investment hedges | $ 0 | $ 0 | |
Client Related and Trading | |||
Derivative [Line Items] | |||
Percentage of derivatives outstanding related to client-related and trading activities | 97.00% | 97.00% | |
Foreign Currency Denominate | |||
Derivative [Line Items] | |||
Estimated net gain (loss) to be reclassified into net income within the next twelve months relating to cash flow hedges | $ (1,800,000) | ||
Securities Available for Sale | |||
Derivative [Line Items] | |||
Estimated net gain (loss) to be reclassified into net income within the next twelve months relating to cash flow hedges | $ 2,800,000 |
Derivative Financial Instrume84
Derivative Financial Instruments (Notional and Fair Values of Client-Related and Trading Derivative Financial Instruments) (Details) - Client Related and Trading - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Notional Value | $ 270,753.4 | $ 252,838 |
Fair Value Asset | 4,115.8 | 2,652.9 |
Fair Value Liability | 4,121.1 | 2,608.9 |
Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
Notional Value | 264,219.3 | 246,628.5 |
Fair Value Asset | 3,940.3 | 2,541.8 |
Fair Value Liability | 3,948.2 | 2,500.4 |
Interest Rate Contracts | ||
Derivative [Line Items] | ||
Notional Value | 6,534.1 | 6,209.5 |
Fair Value Asset | 175.5 | 111.1 |
Fair Value Liability | $ 172.9 | $ 108.5 |
Derivative Financial Instrume85
Derivative Financial Instruments (Location and Amount of Gains and Losses Recorded in Income) (Details) - Client Related and Trading - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of derivative gain/(loss) recognized in income | $ 64.6 | $ 76.5 |
Foreign Exchange Contracts | Foreign Exchange Trading Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of derivative gain/(loss) recognized in income | 60.5 | 71.6 |
Interest Rate Contracts | Security Commissions and Trading Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of derivative gain/(loss) recognized in income | $ 4.1 | $ 4.9 |
Derivative Financial Instrume86
Derivative Financial Instruments (Notional and Fair Value of Designated Risk Management Derivative Financial Instruments) (Details) - Asset And Liability Management - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Notional Value | $ 8,079.5 | $ 7,556 |
Fair Value Asset | 167.1 | 198.8 |
Fair Value Liability | 122 | 38 |
Fair Value Hedges | Senior Notes and Long-Term Subordinated Debt | Interest Rate Swap Contracts | ||
Derivative [Line Items] | ||
Notional Value | 1,250 | 1,250 |
Fair Value Asset | 148.8 | 104.6 |
Fair Value Liability | 2.7 | 2.2 |
Fair Value Hedges | Securities Available for Sale | Interest Rate Swap Contracts | ||
Derivative [Line Items] | ||
Notional Value | 3,274.8 | 3,042.1 |
Fair Value Asset | 3.5 | 10.8 |
Fair Value Liability | 39.5 | 19.8 |
Cash Flow Hedges | Forecasted Foreign Currency Denominated Transactions and Investment Securities | Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
Notional Value | 379.4 | 367.4 |
Fair Value Asset | 8.5 | 8.5 |
Fair Value Liability | 9.1 | 13.8 |
Cash Flow Hedges | Securities Available for Sale | Interest Rate Contracts | ||
Derivative [Line Items] | ||
Notional Value | 985 | 935 |
Fair Value Asset | 6.3 | 2 |
Fair Value Liability | 0 | 0.7 |
Net Investment Hedges | Net Investments in Non-U.S. Affiliates | Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
Notional Value | 2,190.3 | 1,961.5 |
Fair Value Asset | 0 | 72.9 |
Fair Value Liability | $ 70.7 | $ 1.5 |
Derivative Financial Instrume87
Derivative Financial Instruments (Location and Amount of Derivative Gains and Losses Recorded in Income) (Details) - Asset And Liability Management - Fair Value Hedges - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of derivative gain/(loss) recognized in income | $ 12.7 | $ 12.5 |
Securities Available for Sale | Interest Rate Swap Contracts | Interest Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of derivative gain/(loss) recognized in income | (34.7) | (17.3) |
Senior Notes and Long-Term Subordinated Debt | Interest Rate Swap Contracts | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of derivative gain/(loss) recognized in income | $ 47.4 | $ 29.8 |
Derivative Financial Instrume88
Derivative Financial Instruments (Cash Flow Hedge Derivative Gains and Losses Recognized in AOCI and Reclassified to Earnings) (Details) - Asset And Liability Management - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Foreign Exchange Contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Gain/(Loss) Recognized in AOCI | $ 4.2 | $ (7.9) |
Net Gain/(Loss) Reclassified from AOCI to Net Income | (1.5) | (2.1) |
Interest Rate Contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net Gain/(Loss) Recognized in AOCI | 5.2 | 3.2 |
Net Gain/(Loss) Reclassified from AOCI to Net Income | 0.9 | 1.1 |
Net Gain/(Loss) Reclassified from AOCI to Net Income | Foreign Exchange Contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Operating Income | (1.1) | (1.6) |
Interest Income | 0 | 0 |
Other Operating Expense | (0.4) | (0.5) |
Net Gain/(Loss) Reclassified from AOCI to Net Income | Interest Rate Contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Operating Income | 0 | 0 |
Interest Income | 0.9 | 1.1 |
Other Operating Expense | $ 0 | $ 0 |
Derivative Financial Instrume89
Derivative Financial Instruments (Net Investment Hedge Gains and Losses Recognized in AOCI) (Details) - Net Investment Hedges - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative [Line Items] | ||
Hedging Instrument Gain/(Loss) Recognized in AOCI (Before Tax) | $ (26.5) | $ 116.6 |
Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
Hedging Instrument Gain/(Loss) Recognized in AOCI (Before Tax) | (26.5) | 111.6 |
Sterling Denominated Subordinated Debt | ||
Derivative [Line Items] | ||
Hedging Instrument Gain/(Loss) Recognized in AOCI (Before Tax) | $ 0 | $ 5 |
Derivative Financial Instrume90
Derivative Financial Instruments (Notional and Fair Values of Non-Designated Risk Management Derivative Instruments) (Details) - Nondesignated - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Notional Value | $ 475.1 | $ 397.4 |
Fair Value Asset | 3.8 | 0.2 |
Fair Value Liability | 10.8 | 14.6 |
Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
Notional Value | 274.8 | 244.6 |
Fair Value Asset | 3.8 | 0.2 |
Fair Value Liability | 0.4 | 3.7 |
Other Financial Derivatives | ||
Derivative [Line Items] | ||
Notional Value | 200.3 | 152.8 |
Fair Value Asset | 0 | 0 |
Fair Value Liability | $ 10.4 | $ 10.9 |
Derivative Financial Instrume91
Derivative Financial Instruments (Location and Amount of Gains and Losses Recorded in Income for Non-Designated Risk Management Derivative Instruments) (Details) - Nondesignated - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of derivative gain/(loss) recognized in income | $ 1.9 | $ (8.7) |
Foreign Exchange Contracts | Others Operating Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of derivative gain/(loss) recognized in income | 2.7 | (8.7) |
Other Financial Derivatives | Others Operating Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of derivative gain/(loss) recognized in income | $ (0.8) | $ 0 |
Offsetting of Assets and Liab92
Offsetting of Assets and Liabilities (Offsetting of Derivative Assets and Securities Purchased Under Agreements to Resell) (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Other Assets (excluding Derivative Assets) | $ 3,334,400,000 | $ 3,212,700,000 |
Federal funds sold | 10,000,000 | 14,200,000 |
Cash collateral possessed that was not offset | 0 | 0 |
Derivatives | ||
Derivative [Line Items] | ||
Gross Recognized Assets | 4,286,600,000 | 2,851,900,000 |
Gross Amounts Offset | 2,556,500,000 | 1,600,200,000 |
Net Amounts Presented | 1,730,100,000 | 1,251,700,000 |
Net Amount | 1,730,100,000 | 1,251,700,000 |
Derivatives | Total Derivatives Subject to a Master Netting Arrangement | ||
Derivative [Line Items] | ||
Gross Recognized Assets | 3,468,900,000 | 1,864,500,000 |
Gross Amounts Offset | 2,556,500,000 | 1,600,200,000 |
Net Amounts Presented | 912,400,000 | 264,300,000 |
Net Amount | 912,400,000 | 264,300,000 |
Derivatives | Total Derivatives Not Subject to a Master Netting Arrangement | ||
Derivative [Line Items] | ||
Gross Recognized Assets | 817,700,000 | 987,400,000 |
Net Amounts Presented | 817,700,000 | 987,400,000 |
Net Amount | 817,700,000 | 987,400,000 |
Securities Purchased under Agreements to Resell | ||
Derivative [Line Items] | ||
Gross Recognized Assets | 1,755,200,000 | 1,600,000,000 |
Net Amounts Presented | 1,755,200,000 | 1,600,000,000 |
Gross Amounts Not Offset | (1,755,200,000) | (1,600,000,000) |
Foreign Exchange Contracts | Over the Counter Derivative | ||
Derivative [Line Items] | ||
Gross Recognized Assets | 3,134,900,000 | 1,636,000,000 |
Gross Amounts Offset | 1,523,100,000 | 1,194,300,000 |
Net Amounts Presented | 1,611,800,000 | 441,700,000 |
Net Amount | 1,611,800,000 | 441,700,000 |
Interest Rate Swap Contracts | Over the Counter Derivative | ||
Derivative [Line Items] | ||
Gross Recognized Assets | 232,500,000 | 170,300,000 |
Gross Amounts Offset | 22,300,000 | 21,500,000 |
Net Amounts Presented | 210,200,000 | 148,800,000 |
Net Amount | 210,200,000 | 148,800,000 |
Interest Rate Swap Contracts | Exchange Cleared | ||
Derivative [Line Items] | ||
Gross Recognized Assets | 101,500,000 | 58,200,000 |
Gross Amounts Offset | 96,800,000 | 38,100,000 |
Net Amounts Presented | 4,700,000 | 20,100,000 |
Net Amount | 4,700,000 | 20,100,000 |
Cross Product Netting Adjustment | ||
Derivative [Line Items] | ||
Gross Amounts Offset | 42,400,000 | 23,500,000 |
Cross Product Collateral Adjustment | ||
Derivative [Line Items] | ||
Gross Amounts Offset | $ 871,900,000 | $ 322,800,000 |
Offsetting of Assets and Liab93
Offsetting of Assets and Liabilities (Offsetting of Derivative Liabilities and Securities Sold Under Agreements to Repurchase) (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Net Amounts Presented | $ 507,100,000 | $ 546,600,000 |
Other liabilities | 2,008,700,000 | 2,131,700,000 |
Cash collateral placed that was not offset | 0 | 0 |
Securities Sold under Agreements to Repurchase | ||
Derivative [Line Items] | ||
Gross Recognized Liabilities | 507,100,000 | 546,600,000 |
Net Amounts Presented | 507,100,000 | 546,600,000 |
Gross Amounts Not Offset | (507,100,000) | (546,600,000) |
Derivatives | ||
Derivative [Line Items] | ||
Gross Recognized Liabilities | 4,253,900,000 | 2,661,500,000 |
Gross Amounts Offset | 2,916,000,000 | 1,717,600,000 |
Net Amounts Presented | 1,337,900,000 | 943,900,000 |
Net Amount | 1,337,900,000 | 943,900,000 |
Derivatives | Total Derivatives Subject to a Master Netting Arrangement | ||
Derivative [Line Items] | ||
Gross Recognized Liabilities | 3,435,800,000 | 2,261,800,000 |
Gross Amounts Offset | 2,916,000,000 | 1,717,600,000 |
Net Amounts Presented | 519,800,000 | 544,200,000 |
Net Amount | 519,800,000 | 544,200,000 |
Derivatives | Total Derivatives Not Subject to a Master Netting Arrangement | ||
Derivative [Line Items] | ||
Gross Recognized Liabilities | 818,100,000 | 399,700,000 |
Net Amounts Presented | 818,100,000 | 399,700,000 |
Net Amount | 818,100,000 | 399,700,000 |
Foreign Exchange Contracts | Over the Counter Derivative | ||
Derivative [Line Items] | ||
Gross Recognized Liabilities | 3,210,300,000 | 2,119,700,000 |
Gross Amounts Offset | 1,523,100,000 | 1,194,300,000 |
Net Amounts Presented | 1,687,200,000 | 925,400,000 |
Net Amount | 1,687,200,000 | 925,400,000 |
Interest Rate Swap Contracts | Over the Counter Derivative | ||
Derivative [Line Items] | ||
Gross Recognized Liabilities | 118,300,000 | 93,100,000 |
Gross Amounts Offset | 22,300,000 | 21,500,000 |
Net Amounts Presented | 96,000,000 | 71,600,000 |
Net Amount | 96,000,000 | 71,600,000 |
Interest Rate Swap Contracts | Exchange Cleared | ||
Derivative [Line Items] | ||
Gross Recognized Liabilities | 96,800,000 | 38,100,000 |
Gross Amounts Offset | 96,800,000 | 38,100,000 |
Other Financial Derivatives | ||
Derivative [Line Items] | ||
Gross Recognized Liabilities | 10,400,000 | 10,900,000 |
Net Amounts Presented | 10,400,000 | 10,900,000 |
Net Amount | 10,400,000 | 10,900,000 |
Cross Product Netting Adjustment | ||
Derivative [Line Items] | ||
Gross Amounts Offset | 42,400,000 | 23,500,000 |
Cross Product Collateral Adjustment | ||
Derivative [Line Items] | ||
Gross Amounts Offset | $ 1,231,400,000 | $ 440,200,000 |