Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Mar. 31, 2014 | |
Document Information [Line Items] | ' |
Document Type | '10-Q |
Amendment Flag | 'false |
Document Period End Date | 31-Mar-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q1 |
Trading Symbol | 'NTRS |
Entity Registrant Name | 'NORTHERN TRUST CORP |
Entity Central Index Key | '0000073124 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 236,481,078 |
Consolidated_Balance_Sheet
Consolidated Balance Sheet (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Cash and Due from Banks | $3,676.30 | $3,162.40 |
Federal Funds Sold and Securities Purchased under Agreements to Resell | 510 | 529.6 |
Interest-Bearing Deposits with Banks | 17,155.80 | 19,397.40 |
Federal Reserve Deposits and Other Interest-Bearing | 12,211 | 12,911.50 |
Securities | ' | ' |
Available for Sale | 29,540.60 | 28,392.80 |
Held to Maturity (Fair value of $4,209.2 and $2,321.4) | 4,211.70 | 2,325.80 |
Trading Account | 1.5 | 1.7 |
Total Securities | 33,753.80 | 30,720.30 |
Loans and Leases | ' | ' |
Commercial | 13,280.70 | 12,620 |
Personal | 16,380.10 | 16,765.50 |
Total Loans and Leases | 29,660.80 | 29,385.50 |
Allowance for Credit Losses Assigned to Loans and Leases | -279.2 | -278.1 |
Buildings and Equipment | 449.4 | 458.8 |
Client Security Settlement Receivables | 1,845.20 | 1,355.20 |
Goodwill | 541.6 | 540.7 |
Other Assets | 4,307.90 | 4,764 |
Total Assets | 103,832.60 | 102,947.30 |
Deposits | ' | ' |
Demand and Other Noninterest-Bearing | 19,102.40 | 16,888.70 |
Savings and Money Market | 15,506 | 14,991.50 |
Savings Certificates and Other Time | 2,034.50 | 1,874.40 |
Non U.S. Offices - Noninterest-Bearing | 2,060.40 | 1,881.80 |
- Interest-Bearing | 47,564.40 | 48,461.70 |
Total Deposits | 86,267.70 | 84,098.10 |
Federal Funds Purchased | 1,013.90 | 965.1 |
Securities Sold under Agreements to Repurchase | 736.6 | 917.3 |
Other Borrowings | 652.4 | 1,558.60 |
Senior Notes | 1,996.70 | 1,996.60 |
Long-Term Debt | 1,731.30 | 1,709.20 |
Floating Rate Capital Debt | 277.2 | 277.1 |
Other Liabilities | 3,208.50 | 3,513.30 |
Total Liabilities | 95,884.30 | 95,035.30 |
Stockholders' Equity | ' | ' |
Common Stock, $1.66 2/3 Par Value; Authorized 560,000,000 shares; Outstanding shares of 236,481,078 and 237,322,035 | 408.6 | 408.6 |
Additional Paid-In Capital | 1,022.90 | 1,035.70 |
Retained Earnings | 7,241.40 | 7,134.80 |
Accumulated Other Comprehensive Loss | -236.1 | -244.3 |
Treasury Stock (8,690,446 and 7,849,489 shares, at cost) | -488.5 | -422.8 |
Total Stockholders' Equity | 7,948.30 | 7,912 |
Total Liabilities and Stockholders' Equity | $103,832.60 | $102,947.30 |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Held to Maturity, Fair value | $4,209.20 | $2,321.40 |
Total Loans and Leases, unearned income | $300.40 | $286.20 |
Common Stock, Par Value | $1.67 | $1.67 |
Common Stock, Authorized | 560,000,000 | 560,000,000 |
Common Stock, Outstanding | 236,481,078 | 237,322,035 |
Treasury Stock, shares | 8,690,446 | 7,849,489 |
Consolidated_Statement_of_Inco
Consolidated Statement of Income (USD $) | 3 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Noninterest Income | ' | ' | ||
Trust, Investment and Other Servicing Fees | $679.50 | $630.70 | ||
Foreign Exchange Trading Income | 50.1 | 59.5 | ||
Treasury Management Fees | 16.8 | 16.8 | ||
Security Commissions and Trading Income | 14.7 | 18.3 | ||
Other Operating Income | 37.7 | 24.8 | ||
Investment Security Gains (Losses), net | -4 | [1] | 0.2 | [1] |
Total Noninterest Income | 794.8 | 750.3 | ||
Net Interest Income | ' | ' | ||
Interest Income | 295.4 | 286.7 | ||
Interest Expense | 49.7 | 60.6 | ||
Net Interest Income | 245.7 | 226.1 | ||
Provision for Credit Losses | 3 | 5 | ||
Net Interest Income after Provision for Credit Losses | 242.7 | 221.1 | ||
Noninterest Expense | ' | ' | ||
Compensation | 341.8 | 320.3 | ||
Employee Benefits | 66.9 | 63.3 | ||
Outside Services | 144.4 | 129.9 | ||
Equipment and Software | 101.3 | 91.4 | ||
Occupancy | 44.2 | 43.2 | ||
Other Operating Expense | 69.4 | 80.8 | ||
Total Noninterest Expense | 768 | 728.9 | ||
Income before Income Taxes | 269.5 | 242.5 | ||
Provision for Income Taxes | 88.1 | 78.5 | ||
Net Income | 181.4 | 164 | ||
Net Income Applicable to Common Stock | $181.40 | $164 | ||
Per Common Share | ' | ' | ||
Net Income - Basic | $0.75 | $0.68 | ||
Net Income - Diluted | $0.75 | $0.67 | ||
Average Number of Common Shares Outstanding - Basic | 237,208,151 | 239,167,559 | ||
Average Number of Common Shares Outstanding - Diluted | 239,050,714 | 240,189,215 | ||
[1] | Changes in Other-Than-Temporary-Impairment (OTTI) Losses $ (4.6 ) $ - Noncredit-related OTTI Losses Recorded in/(Reclassified from) OCI 0.7 - Other Security Gains (Losses), net (0.1 ) 0.2 Investment Security Gains (Losses), net $ (4.0 ) $ 0.2 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net Income | $181.40 | $164 |
Other Comprehensive Income (Net of Tax and Reclassifications) | ' | ' |
Net Unrealized Gains (Losses) on Securities Available for Sale | 4.5 | 1.3 |
Net Unrealized Gains (Losses) on Cash Flow Hedges | 1.6 | -5.2 |
Foreign Currency Translation Adjustments | -1.3 | -4.2 |
Pension and Other Postretirement Benefit Adjustments | 3.4 | 7 |
Other Comprehensive Income (Loss) | 8.2 | -1.1 |
Comprehensive Income | $189.60 | $162.90 |
Consolidated_Statement_of_Inco1
Consolidated Statement of Income (Parenthetical) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Changes in Other-Than-Temporary-Impairment (OTTI) Losses | ($4.60) | [1] | ' | |
Noncredit-related OTTI Losses Recorded in/(Reclassified from) OCI | 0.7 | [2] | ' | |
Other Security Gains (Losses), net | -0.1 | 0.2 | ||
Investment Security Gains (Losses), net | ($4) | [3] | $0.20 | [3] |
[1] | For initial other-than-temporary impairments in the respective period, the balance includes the excess of the amortized cost over the fair value of the impaired securities. For subsequent impairments of the same security, the balance includes any additional changes in fair value of the security subsequent to its most recently recorded OTTI. | |||
[2] | For initial other-than-temporary impairments in the respective period, the balance includes the portion of the excess of amortized cost over the fair value of the impaired securities that was recorded in OCI. For subsequent impairments of the same security, the balance includes additional changes in OCI for that security subsequent to its most recently recorded OTTI. | |||
[3] | Changes in Other-Than-Temporary-Impairment (OTTI) Losses $ (4.6 ) $ - Noncredit-related OTTI Losses Recorded in/(Reclassified from) OCI 0.7 - Other Security Gains (Losses), net (0.1 ) 0.2 Investment Security Gains (Losses), net $ (4.0 ) $ 0.2 |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
In Millions | ||||||
Balance at Dec. 31, 2012 | ' | $408.60 | $1,012.70 | $6,702.70 | ($283) | ($314) |
Net Unrealized Gains (Losses) on Securities Available for Sale | 1.3 | ' | ' | ' | 1.3 | ' |
Stock Options and Awards | ' | ' | -35.6 | ' | ' | 87.1 |
Net Income | 164 | ' | ' | 164 | ' | ' |
Net Unrealized Gains (Losses) on Cash Flow Hedges | -5.2 | ' | ' | ' | -5.2 | ' |
Stock Options and Awards - Amortization | ' | ' | 20.8 | ' | ' | ' |
Dividends Declared - Common Stock | ' | ' | ' | -72.9 | ' | ' |
Stock Purchased | ' | ' | ' | ' | ' | -74.5 |
Foreign Currency Translation Adjustments | -4.2 | ' | ' | ' | -4.2 | ' |
Stock Options and Awards - Tax Benefits | ' | ' | -2.7 | ' | ' | ' |
Pension and Other Postretirement Benefit Adjustments | 7 | ' | ' | ' | 7 | ' |
Balance at Mar. 31, 2013 | 7,612.10 | 408.6 | 995.2 | 6,793.80 | -284.1 | -301.4 |
Balance at Dec. 31, 2013 | 7,912 | 408.6 | 1,035.70 | 7,134.80 | -244.3 | -422.8 |
Net Unrealized Gains (Losses) on Securities Available for Sale | 4.5 | ' | ' | ' | 4.5 | ' |
Stock Options and Awards | ' | ' | -43.2 | ' | ' | 97.3 |
Net Income | 181.4 | ' | ' | 181.4 | ' | ' |
Net Unrealized Gains (Losses) on Cash Flow Hedges | 1.6 | ' | ' | ' | 1.6 | ' |
Stock Options and Awards - Amortization | ' | ' | 23.3 | ' | ' | ' |
Dividends Declared - Common Stock | ' | ' | ' | -74.8 | ' | ' |
Stock Purchased | ' | ' | ' | ' | ' | -163 |
Foreign Currency Translation Adjustments | -1.3 | ' | ' | ' | -1.3 | ' |
Stock Options and Awards - Tax Benefits | ' | ' | 7.1 | ' | ' | ' |
Pension and Other Postretirement Benefit Adjustments | 3.4 | ' | ' | ' | 3.4 | ' |
Balance at Mar. 31, 2014 | $7,948.30 | $408.60 | $1,022.90 | $7,241.40 | ($236.10) | ($488.50) |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Cash Flows from Operating Activities: | ' | ' | ||
Net Income | $181.40 | $164 | ||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ' | ' | ||
Investment Security (Gains) Losses, net | 4 | [1] | -0.2 | [1] |
Amortization and Accretion of Securities and Unearned Income, net | 3 | 1.5 | ||
Provision for Credit Losses | 3 | 5 | ||
Depreciation on Buildings and Equipment | 23 | 22.4 | ||
Pension Plan Contributions | -13.9 | -16.4 | ||
Change in Receivables | -254.9 | -32.3 | ||
Change in Interest Payable | -0.1 | -18.8 | ||
Change in Collateral With Derivative Counterparties, net | 505.7 | 52.3 | ||
Other Operating Activities, net | 26.8 | 81.1 | ||
Net Cash Provided by Operating Activities | 538.5 | 312.5 | ||
Cash Flows from Investing Activities: | ' | ' | ||
Net Change in Federal Funds Sold and Securities Purchased under Agreements to Resell | 19.6 | -190.7 | ||
Change in Interest-Bearing Deposits with Banks | 2,329.10 | 108.7 | ||
Net Change in Federal Reserve Deposits and Other Interest-Bearing Assets | 700.2 | 1,791 | ||
Purchases of Securities - Held to Maturity | -2,467.40 | -2,182.60 | ||
Proceeds from Maturity and Redemption of Securities - Held to Maturity | 597.6 | 1,633.60 | ||
Purchases of Securities - Available for Sale | -3,939.10 | -2,276.80 | ||
Proceeds from Sale, Maturity and Redemption of Securities - Available for Sale | 2,803.70 | 3,728.90 | ||
Change in Loans and Leases | -274.9 | 637.4 | ||
Purchases of Buildings and Equipment | -13.5 | -11.9 | ||
Purchases and Development of Computer Software | -74.9 | -60.4 | ||
Change in Client Security Settlement Receivables | -485.6 | 1,232.60 | ||
Other Investing Activities, net | -16.9 | 29.1 | ||
Net Cash Provided by (Used in) Investing Activities | -822.1 | 4,438.90 | ||
Cash Flows from Financing Activities: | ' | ' | ||
Change in Deposits | 2,082.40 | -5,778.30 | ||
Change in Federal Funds Purchased | 48.8 | 540.3 | ||
Change in Securities Sold under Agreements to Repurchase | -180.7 | -209.6 | ||
Change in Short-Term Other Borrowings | -1,004.40 | 1,057.30 | ||
Repayments of Senior Notes and Long-Term Debt | -1.1 | -201 | ||
Treasury Stock Purchased | -163 | -74.2 | ||
Net Proceeds from Stock Options | 54 | 51.1 | ||
Cash Dividends Paid on Common Stock | -75 | -1.1 | ||
Other Financing Activities, net | 27.1 | -52.1 | ||
Net Cash Provided by (Used in) Financing Activities | 788.1 | -4,667.60 | ||
Effect of Foreign Currency Exchange Rates on Cash | 9.4 | -63 | ||
Increase in Cash and Due from Banks | 513.9 | 20.8 | ||
Cash and Due from Banks at Beginning of Year | 3,162.40 | 3,752.70 | ||
Cash and Due from Banks at End of Period | 3,676.30 | 3,773.50 | ||
Supplemental Disclosures of Cash Flow Information: | ' | ' | ||
Interest Paid | 50.4 | 79.4 | ||
Income Taxes Paid | 15.1 | 14.5 | ||
Transfers from Loans to OREO | 1.9 | 4.4 | ||
Computer Software | ' | ' | ||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ' | ' | ||
Amortization of Intangibles | 55.6 | 48.7 | ||
Other Intangible Assets | ' | ' | ||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ' | ' | ||
Amortization of Intangibles | $4.90 | $5.20 | ||
[1] | Changes in Other-Than-Temporary-Impairment (OTTI) Losses $ (4.6 ) $ - Noncredit-related OTTI Losses Recorded in/(Reclassified from) OCI 0.7 - Other Security Gains (Losses), net (0.1 ) 0.2 Investment Security Gains (Losses), net $ (4.0 ) $ 0.2 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Basis of Presentation | ' |
1. Basis of Presentation – The consolidated financial statements include the accounts of Northern Trust Corporation (Corporation) and its subsidiaries (collectively, Northern Trust). Significant intercompany balances and transactions have been eliminated. The consolidated financial statements, as of and for the periods ended March 31, 2014 and 2013, 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. Certain reclassifications have been made to the prior period consolidated financial statements to place them on a basis comparable with the current period’s consolidated financial statements. Within the statement of cash flows, net changes in the fair values of derivative assets and liabilities, previously included within Net Changes in Derivative Fair Value, Including Required Collateral, are included in Other Operating Activities, net. For a description of Northern Trust’s significant accounting policies, refer to Note 1 of the Notes to Consolidated Financial Statements in the 2013 Annual Report to Shareholders. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2014 | |
Recent Accounting Pronouncements | ' |
2. Recent Accounting Pronouncements – As of January 1, 2014, Northern Trust adopted Accounting Standards Update (ASU) No. 2014-01, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force)”, and has elected to account for investments in qualified affordable housing projects using the proportional amortization method when the conditions to apply are met. Northern Trust recognized the cumulative effect of the adoption in the current period, resulting in a $1.1 million increase in the provision for income taxes and a $0.2 million increase in income before income taxes, and the adoption of the ASU will not have a material impact on Northern Trust’s consolidated financial position or results of operations going forward. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||
3. 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, 2014 or the year ended December 31, 2013. | |||||||||||||||||||||
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, 2014, Northern Trust’s available for sale securities portfolio included 891 Level 2 securities with an aggregate market value of $27.0 billion. All 891 securities were valued by external pricing vendors. As of December 31, 2013, Northern Trust’s available for sale securities portfolio included 831 Level 2 securities with an aggregate market value of $26.4 billion. Of those, 829 securities, with an aggregate market value of $26.3 billion, were valued by external pricing vendors. The remaining 2 securities, with an aggregate market value of $57.4 million, were valued consistent with prices of similar securities as there were no vended prices available for these securities. Trading account securities, which totaled $1.5 million and $1.7 million as of March 31, 2014 and December 31, 2013, respectively, were all valued using external pricing vendors. | |||||||||||||||||||||
Northern Trust has established processes and procedures to assess the suitability of valuation methodologies used by external pricing vendors, including reviews of valuation techniques and assumptions used for selected securities. On a daily basis, periodic quality control reviews of prices received from vendors are conducted which include comparisons to prices on similar security types received from multiple pricing vendors and to the previous day’s reported prices for each security. Predetermined tolerance level exceptions are researched and may result in additional validation through available market information or the use of an alternate pricing vendor. Quarterly, Northern Trust reviews documentation from third-party pricing vendors regarding the valuation processes and assumptions used in their valuations and assesses whether the fair value levels assigned by Northern Trust to each security classification are appropriate. Annually, valuation inputs used within third-party pricing vendor valuations are reviewed for propriety on a sample basis through a comparison of inputs used to comparable market data, including security classifications that are less actively traded and security classifications comprising significant portions of the portfolio. | |||||||||||||||||||||
Level 2 assets and liabilities also include derivative contracts which are valued internally using widely accepted income-based models that incorporate inputs readily observable in actively quoted markets and reflect the contractual terms of the contracts. Observable inputs include foreign exchange rates and interest rates for foreign exchange contracts; credit spreads, default probabilities, and recovery rates for credit default swap contracts; interest rates for interest rate swap contracts and forward contracts; and interest rates and volatility inputs for interest rate option contracts. Northern Trust evaluates the impact of counterparty credit risk and its own credit risk on the valuation of its derivative instruments. Factors considered include the likelihood of default by Northern Trust and its counterparties, the remaining maturities of the instruments, net exposures after giving effect to master netting arrangements or similar agreements, available collateral, and other credit enhancements in determining the appropriate fair value of derivative instruments. The resulting valuation adjustments have not been considered material. | |||||||||||||||||||||
Level 3 – Valuation techniques in which one or more significant inputs are unobservable in the marketplace. | |||||||||||||||||||||
Northern Trust’s Level 3 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. Level 3 liabilities at December 31, 2013 consisted of acquisition-related contingent consideration liabilities, the fair value of which was determined using an income-based (discounted cash flow) model that incorporated Northern Trust’s own assumptions about business growth rates and applicable discount rates, which represented unobservable inputs to the model. As of March 31, 2014, the value of the acquisition-related consideration had been agreed by the parties to be $55.3 million, removing the contingency. | |||||||||||||||||||||
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 Policy, Corporate Financial Management, and relevant business unit personnel) determine the valuation policies and procedures for Level 3 assets and liabilities. Each business and department represents a component of Northern Trust’s business units, and reports to management of their respective business units. Generally, valuation policies are reviewed by management of each business or department. Fair value measurements are performed upon acquisitions 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 as of March 31, 2014. | |||||||||||||||||||||
Financial Instrument | Fair Value | Valuation Technique | Unobservable Input | Range of Lives and Rates | |||||||||||||||||
Auction Rate Securities | $98.5 million | Discounted Cash Flow | Remaining lives | 2.2 – 8.6 years | |||||||||||||||||
Discount rates | 0.2% – 7.8% | ||||||||||||||||||||
The following presents assets and liabilities measured at fair value on a recurring basis as of March 31, 2014 and December 31, 2013, segregated by fair value hierarchy level. | |||||||||||||||||||||
(In Millions) | Level 1 | Level 2 | Level 3 | Netting | Assets/Liabilities | ||||||||||||||||
at Fair Value | |||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||
Securities | |||||||||||||||||||||
Available for Sale | |||||||||||||||||||||
U.S. Government | $ | 2,414.70 | $ | — | $ | — | $ | — | $ | 2,414.70 | |||||||||||
Obligations of States and Political Subdivisions | — | 4.6 | — | — | 4.6 | ||||||||||||||||
Government Sponsored Agency | — | 18,150.80 | — | — | 18,150.80 | ||||||||||||||||
Corporate Debt | — | 3,626.00 | — | — | 3,626.00 | ||||||||||||||||
Covered Bonds | — | 1,978.50 | — | — | 1,978.50 | ||||||||||||||||
Supranational, Sovereign and Non-U.S. Agency Bonds | — | 720.5 | — | — | 720.5 | ||||||||||||||||
Residential Mortgage-Backed | — | 45.7 | — | — | 45.7 | ||||||||||||||||
Other Asset-Backed | — | 2,304.70 | — | — | 2,304.70 | ||||||||||||||||
Auction Rate | — | — | 98.5 | — | 98.5 | ||||||||||||||||
Other | — | 196.6 | — | — | 196.6 | ||||||||||||||||
Total Available for Sale | 2,414.70 | 27,027.40 | 98.5 | — | 29,540.60 | ||||||||||||||||
Trading Account | — | 1.5 | — | — | 1.5 | ||||||||||||||||
Total Available for Sale and Trading Securities | 2,414.70 | 27,028.90 | 98.5 | — | 29,542.10 | ||||||||||||||||
Other Assets | |||||||||||||||||||||
Derivative Assets | |||||||||||||||||||||
Foreign Exchange Contracts | — | 1,866.10 | — | — | 1,866.10 | ||||||||||||||||
Interest Rate Contracts | — | 228.4 | — | — | 228.4 | ||||||||||||||||
Total Derivative Assets | — | 2,094.50 | — | (1,393.7 | ) | 700.8 | |||||||||||||||
Other Liabilities | |||||||||||||||||||||
Derivative Liabilities | |||||||||||||||||||||
Foreign Exchange Contracts | — | 1,890.40 | — | — | 1,890.40 | ||||||||||||||||
Interest Rate Contracts | — | 154.8 | — | — | 154.8 | ||||||||||||||||
Credit Default Swaps | — | — | — | — | — | ||||||||||||||||
Total Derivative Liabilities | — | 2,045.20 | — | (1,445.0 | ) | 600.2 | |||||||||||||||
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, 2014, derivative assets and liabilities shown above also include reductions of $313.6 million and $364.9 million, respectively, as a result of cash collateral received from and deposited with derivative counterparties. | |||||||||||||||||||||
(In Millions) | Level 1 | Level 2 | Level 3 | Netting | Assets/Liabilities | ||||||||||||||||
at Fair Value | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Securities | |||||||||||||||||||||
Available for Sale | |||||||||||||||||||||
U.S. Government | $ | 1,917.90 | $ | — | $ | — | $ | — | $ | 1,917.90 | |||||||||||
Obligations of States and Political Subdivisions | — | 4.6 | — | — | 4.6 | ||||||||||||||||
Government Sponsored Agency | — | 17,528.00 | — | — | 17,528.00 | ||||||||||||||||
Corporate Debt | — | 3,524.50 | — | — | 3,524.50 | ||||||||||||||||
Covered Bonds | — | 1,943.90 | — | — | 1,943.90 | ||||||||||||||||
Supranational, Sovereign and Non-U.S. Agency Bonds | — | 720.6 | — | — | 720.6 | ||||||||||||||||
Residential Mortgage-Backed | — | 48.1 | — | — | 48.1 | ||||||||||||||||
Other Asset-Backed | — | 2,391.80 | — | — | 2,391.80 | ||||||||||||||||
Auction Rate | — | — | 98.9 | — | 98.9 | ||||||||||||||||
Other | — | 214.5 | — | — | 214.5 | ||||||||||||||||
Total Available for Sale | 1,917.90 | 26,376.00 | 98.9 | — | 28,392.80 | ||||||||||||||||
Trading Account | — | 1.7 | — | — | 1.7 | ||||||||||||||||
Total Available for Sale and Trading Securities | 1,917.90 | 26,377.70 | 98.9 | — | 28,394.50 | ||||||||||||||||
Other Assets | |||||||||||||||||||||
Derivative Assets | |||||||||||||||||||||
Foreign Exchange Contracts | — | 2,865.70 | — | — | 2,865.70 | ||||||||||||||||
Interest Rate Contracts | — | 237.9 | — | — | 237.9 | ||||||||||||||||
Total Derivative Assets | — | 3,103.60 | — | (1,369.0 | ) | 1,734.60 | |||||||||||||||
Other Liabilities | |||||||||||||||||||||
Derivative Liabilities | |||||||||||||||||||||
Foreign Exchange Contracts | — | 2,905.70 | — | — | 2,905.70 | ||||||||||||||||
Interest Rate Swaps | — | 195.2 | — | — | 195.2 | ||||||||||||||||
Total Derivative Liabilities | — | 3,100.90 | — | (1,926.0 | ) | 1,174.90 | |||||||||||||||
Contingent Consideration | $ | — | $ | — | $ | 55.4 | $ | — | $ | 55.4 | |||||||||||
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, 2013, derivative assets and liabilities shown above also include reductions of $210.7 million and $767.7 million, respectively, as a result of cash collateral received from and deposited with derivative counterparties. | |||||||||||||||||||||
The following tables present the changes in Level 3 assets and liabilities for the three months ended March 31, 2014 and 2013. | |||||||||||||||||||||
Level 3 Assets (In Millions) | Auction Rate Securities | ||||||||||||||||||||
Three Months Ended March 31, | 2014 | 2013 | |||||||||||||||||||
Fair Value at January 1 | $ | 98.9 | $ | 97.8 | |||||||||||||||||
Total Gains (Losses): | |||||||||||||||||||||
Included in Earnings (1) | — | 0.1 | |||||||||||||||||||
Included in Other Comprehensive Income (2) | (0.2 | ) | 2.7 | ||||||||||||||||||
Purchases, Issues, Sales, and Settlements | |||||||||||||||||||||
Sales | 0.1 | — | |||||||||||||||||||
Settlements | (0.3 | ) | (1.0 | ) | |||||||||||||||||
Fair Value at March 31 | $ | 98.5 | $ | 99.6 | |||||||||||||||||
-1 | Realized gains for the three month period ended March 31, 2013 of $0.1 million represent gains from redemptions by issuers, which are recorded in interest income within the consolidated statement of income. | ||||||||||||||||||||
-2 | Unrealized gains (losses) related to auction rate securities are included in net unrealized gains (losses) on securities available for sale within the consolidated statement of comprehensive income. | ||||||||||||||||||||
Level 3 Liabilities (In Millions) | Contingent Consideration | ||||||||||||||||||||
Three Months Ended March 31, | 2014 | 2013 | |||||||||||||||||||
Fair Value at January 1 | $ | 55.4 | $ | 50.1 | |||||||||||||||||
Total (Gains) and Losses: | |||||||||||||||||||||
Included in Earnings (1) | (0.1 | ) | 1.3 | ||||||||||||||||||
Included in Other Comprehensive Income | — | — | |||||||||||||||||||
Purchases, Issues, Sales, and Settlements | |||||||||||||||||||||
Purchases | — | — | |||||||||||||||||||
Settlements | (55.3 | ) | — | ||||||||||||||||||
Fair Value at March 31 | $ | — | $ | 51.4 | |||||||||||||||||
Unrealized (Gains) Losses Included in Earnings Related to Financial Instruments Held at March 31 (1) | $ | — | $ | 1.3 | |||||||||||||||||
-1 | Gains (losses) are recorded in other operating income (expense) within the consolidated statement of income. | ||||||||||||||||||||
During the three months ended March 31, 2014 and 2013, 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 separately disclose these subsequent fair value measurements and to classify them under the fair value hierarchy. | |||||||||||||||||||||
Assets measured at fair value on a nonrecurring basis at March 31, 2014 and 2013, 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. 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 $33.3 million and $1.5 million, respectively, at March 31, 2014, and $32.4 million and $1.5 million, respectively, at March 31, 2013. 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, 2014. | |||||||||||||||||||||
Financial | Fair Value | Valuation | Unobservable Input | Range of | |||||||||||||||||
Instrument | Technique | Discounts | |||||||||||||||||||
Applied | |||||||||||||||||||||
Loans | $33.3 million | Market Approach | Discount to reflect realizable value | 15% – 40% | |||||||||||||||||
OREO | $1.5 million | Market Approach | Discount to reflect realizable value | 15% – 40% | |||||||||||||||||
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 on Northern Trust’s consolidated balance sheet 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 were modeled by external pricing vendors, or in limited cases internally, using widely accepted models which are based on an income approach that incorporates current market yield curves. | |||||||||||||||||||||
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. | |||||||||||||||||||||
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 and other interest-bearing assets; 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). As required by GAAP, the fair values required to be disclosed for demand, noninterest-bearing, savings, and money market deposits must equal the amounts disclosed in the consolidated balance sheet, even though such deposits are typically priced at a premium in banking industry consolidations. | |||||||||||||||||||||
The following tables summarize the fair values of all financial instruments. | |||||||||||||||||||||
(In Millions) | March 31, 2014 | ||||||||||||||||||||
Book | Total | Fair Value | |||||||||||||||||||
Value | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Assets | |||||||||||||||||||||
Cash and Due from Banks | $ | 3,676.30 | $ | 3,676.30 | $ | 3,676.30 | $ | — | $ | — | |||||||||||
Federal Funds Sold and Resell Agreements | 510 | 510 | — | 510 | — | ||||||||||||||||
Interest-Bearing Deposits with Banks | 17,155.80 | 17,155.80 | — | 17,155.80 | — | ||||||||||||||||
Federal Reserve Deposits and Other Interest-Bearing | 12,211.00 | 12,211.00 | — | 12,211.00 | — | ||||||||||||||||
Securities | |||||||||||||||||||||
Available for Sale (1) | 29,540.60 | 29,540.60 | 2,414.70 | 27,027.40 | 98.5 | ||||||||||||||||
Held to Maturity | 4,211.70 | 4,209.20 | — | 4,209.20 | — | ||||||||||||||||
Trading Account | 1.5 | 1.5 | — | 1.5 | — | ||||||||||||||||
Loans (excluding Leases) | |||||||||||||||||||||
Held for Investment | 28,492.50 | 28,533.10 | — | — | 28,533.10 | ||||||||||||||||
Held for Sale | — | — | — | — | — | ||||||||||||||||
Client Security Settlement Receivables | 1,845.20 | 1,845.20 | — | 1,845.20 | — | ||||||||||||||||
Other Assets | |||||||||||||||||||||
Federal Reserve and Federal Home Loan Bank Stock | 194.7 | 194.7 | — | 194.7 | — | ||||||||||||||||
Community Development Investments | 216.3 | 219.9 | — | 219.9 | — | ||||||||||||||||
Employee Benefit and Deferred Compensation | 149.3 | 145.6 | 93.9 | 51.7 | — | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Deposits | |||||||||||||||||||||
Demand, Noninterest-Bearing, Savings and Money Market | $ | 36,668.80 | $ | 36,668.80 | $ | 36,668.80 | $ | — | $ | — | |||||||||||
Savings Certificates and Other Time | 2,034.50 | 2,036.60 | — | 2,036.60 | — | ||||||||||||||||
Non U.S. Offices Interest-Bearing | 47,564.40 | 47,564.40 | — | 47,564.40 | — | ||||||||||||||||
Federal Funds Purchased | 1,013.90 | 1,013.90 | — | 1,013.90 | — | ||||||||||||||||
Securities Sold under Agreements to Repurchase | 736.6 | 736.6 | — | 736.6 | — | ||||||||||||||||
Other Borrowings | 652.4 | 652.4 | — | 652.4 | — | ||||||||||||||||
Senior Notes | 1,996.70 | 2,020.10 | — | 2,020.10 | — | ||||||||||||||||
Long Term Debt (excluding Leases) | |||||||||||||||||||||
Subordinated Debt | 1,560.40 | 1,587.10 | — | 1,587.10 | — | ||||||||||||||||
Federal Home Loan Bank Borrowings | 135 | 135.7 | — | 135.7 | — | ||||||||||||||||
Floating Rate Capital Debt | 277.2 | 238.9 | — | 238.9 | — | ||||||||||||||||
Other Liabilities | |||||||||||||||||||||
Standby Letters of Credit | 57.6 | 57.6 | — | — | 57.6 | ||||||||||||||||
Loan Commitments | 33 | 33 | — | — | 33 | ||||||||||||||||
Derivative Instruments | |||||||||||||||||||||
Asset/Liability Management | |||||||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||
Assets | $ | 11.9 | $ | 11.9 | $ | — | $ | 11.9 | $ | — | |||||||||||
Liabilities | 23.7 | 23.7 | — | 23.7 | — | ||||||||||||||||
Interest Rate Contracts | |||||||||||||||||||||
Assets | 111.7 | 111.7 | — | 111.7 | — | ||||||||||||||||
Liabilities | 43.5 | 43.5 | — | 43.5 | — | ||||||||||||||||
Client-Related and Trading | |||||||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||
Assets | 1,854.20 | 1,854.20 | — | 1,854.20 | — | ||||||||||||||||
Liabilities | 1,866.70 | 1,866.70 | — | 1,866.70 | — | ||||||||||||||||
Interest Rate Contracts | |||||||||||||||||||||
Assets | 116.7 | 116.7 | — | 116.7 | — | ||||||||||||||||
Liabilities | 111.3 | 111.3 | — | 111.3 | — | ||||||||||||||||
-1 | Refer to the table located on page 33 for the disaggregation of available for sale securities. | ||||||||||||||||||||
(In Millions) | December 31, 2013 | ||||||||||||||||||||
Book | Total | Fair Value | |||||||||||||||||||
Value | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Assets | |||||||||||||||||||||
Cash and Due from Banks | $ | 3,162.40 | $ | 3,162.40 | $ | 3,162.40 | $ | – | $ | — | |||||||||||
Federal Funds Sold and Resell Agreements | 529.6 | 529.6 | — | 529.6 | — | ||||||||||||||||
Interest-Bearing Deposits with Banks | 19,397.40 | 19,397.40 | — | 19,397.40 | — | ||||||||||||||||
Federal Reserve Deposits and Other Interest-Bearing | 12,911.50 | 12,911.50 | — | 12,911.50 | — | ||||||||||||||||
Securities | |||||||||||||||||||||
Available for Sale (1) | 28,392.80 | 28,392.80 | 1,917.90 | 26,376.00 | 98.9 | ||||||||||||||||
Held to Maturity | 2,325.80 | 2,321.40 | — | 2,321.40 | — | ||||||||||||||||
Trading Account | 1.7 | 1.7 | — | 1.7 | — | ||||||||||||||||
Loans (excluding Leases) | |||||||||||||||||||||
Held for Investment | 28,136.50 | 28,147.20 | — | — | 28,147.20 | ||||||||||||||||
Held for Sale | — | — | — | — | — | ||||||||||||||||
Client Security Settlement Receivables | 1,355.20 | 1,355.20 | — | 1,355.20 | — | ||||||||||||||||
Other Assets | |||||||||||||||||||||
Federal Reserve and Federal Home Loan Bank Stock | 194.7 | 194.7 | — | 194.7 | — | ||||||||||||||||
Community Development Investments | 228.1 | 227.8 | — | 227.8 | — | ||||||||||||||||
Employee Benefit and Deferred Compensation | 132.7 | 126.9 | 79.3 | 47.6 | — | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Deposits | |||||||||||||||||||||
Demand, Noninterest-Bearing, Savings and Money Market | $ | 33,762.00 | $ | 33,762.00 | $ | 33,762.00 | $ | — | $ | — | |||||||||||
Savings Certificates and Other Time | 1,874.40 | 1,877.10 | — | 1,877.10 | — | ||||||||||||||||
Non U.S. Offices Interest-Bearing | 48,461.70 | 48,461.70 | — | 48,461.70 | — | ||||||||||||||||
Federal Funds Purchased | 965.1 | 965.1 | — | 965.1 | — | ||||||||||||||||
Securities Sold under Agreements to Repurchase | 917.3 | 917.3 | — | 917.3 | — | ||||||||||||||||
Other Borrowings | 1,558.60 | 1,558.60 | — | 1,558.60 | — | ||||||||||||||||
Senior Notes | 1,996.60 | 1,989.30 | — | 1,989.30 | — | ||||||||||||||||
Long Term Debt (excluding Leases) | |||||||||||||||||||||
Subordinated Debt | 1,537.30 | 1,563.50 | — | 1,563.50 | — | ||||||||||||||||
Federal Home Loan Bank Borrowings | 135 | 137.2 | — | 137.2 | — | ||||||||||||||||
Floating Rate Capital Debt | 277.1 | 230.2 | — | 230.2 | — | ||||||||||||||||
Other Liabilities | |||||||||||||||||||||
Standby Letters of Credit | 59.6 | 59.6 | — | — | 59.6 | ||||||||||||||||
Contingent Consideration | 55.4 | 55.4 | — | — | 55.4 | ||||||||||||||||
Loan Commitments | 35.7 | 35.7 | — | — | 35.7 | ||||||||||||||||
Derivative Instruments | |||||||||||||||||||||
Asset/Liability Management | |||||||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||
Assets | $ | 21 | $ | 21 | $ | — | $ | 21 | $ | — | |||||||||||
Liabilities | 59.5 | 59.5 | — | 59.5 | — | ||||||||||||||||
Interest Rate Swaps | |||||||||||||||||||||
Assets | 115.1 | 115.1 | — | 115.1 | — | ||||||||||||||||
Liabilities | 78.2 | 78.2 | — | 78.2 | — | ||||||||||||||||
Client-Related and Trading | |||||||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||
Assets | 2,844.70 | 2,844.70 | — | 2,844.70 | — | ||||||||||||||||
Liabilities | 2,846.20 | 2,846.20 | — | 2,846.20 | — | ||||||||||||||||
Interest Rate Contracts | |||||||||||||||||||||
Assets | 122.8 | 122.8 | — | 122.8 | — | ||||||||||||||||
Liabilities | 117 | 117 | — | 117 | — | ||||||||||||||||
-1 | Refer to the table located on page 34 for the disaggregation of available for sale securities. | ||||||||||||||||||||
Securities
Securities | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Securities | ' | ||||||||||||||||||||||||
4. Securities – The following tables provide the amortized cost and fair values of securities at March 31, 2014 and December 31, 2013. | |||||||||||||||||||||||||
Securities Available for Sale | March 31, 2014 | ||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||||
(In Millions) | Cost | Gains | Losses | Value | |||||||||||||||||||||
U.S. Government | $ | 2,396.00 | $ | 20.5 | $ | 1.8 | $ | 2,414.70 | |||||||||||||||||
Obligations of States and Political Subdivisions | 4.5 | 0.1 | — | 4.6 | |||||||||||||||||||||
Government Sponsored Agency | 18,131.40 | 65.1 | 45.7 | 18,150.80 | |||||||||||||||||||||
Corporate Debt | 3,661.90 | 5.3 | 41.2 | 3,626.00 | |||||||||||||||||||||
Covered Bonds | 1,965.20 | 13.7 | 0.4 | 1,978.50 | |||||||||||||||||||||
Supranational, Sovereign and Non-U.S. Agency Bonds | 719.9 | 2 | 1.4 | 720.5 | |||||||||||||||||||||
Residential Mortgage-Backed | 48.6 | 0.1 | 3 | 45.7 | |||||||||||||||||||||
Other Asset-Backed | 2,302.80 | 2 | 0.1 | 2,304.70 | |||||||||||||||||||||
Auction Rate | 97.3 | 2.1 | 0.9 | 98.5 | |||||||||||||||||||||
Other | 196.1 | 0.5 | — | 196.6 | |||||||||||||||||||||
Total | $ | 29,523.70 | $ | 111.4 | $ | 94.5 | $ | 29,540.60 | |||||||||||||||||
Securities Held to Maturity | March 31, 2014 | ||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||||
(In Millions) | Cost | Gains | Losses | Value | |||||||||||||||||||||
Obligations of States and Political Subdivisions | $ | 196.2 | $ | 9.7 | $ | — | $ | 205.9 | |||||||||||||||||
Government Sponsored Agency | 32.1 | 1.1 | — | 33.2 | |||||||||||||||||||||
Non-U.S. Government Debt | 176.1 | — | 0.1 | 176 | |||||||||||||||||||||
Certificates of Deposit | 1,531.80 | 0.1 | 0.1 | 1,531.80 | |||||||||||||||||||||
Supranational, Sovereign and Non-U.S. Agency Bonds | 2,217.50 | 3.8 | 6.3 | 2,215.00 | |||||||||||||||||||||
Other | 58 | 0.1 | 10.8 | 47.3 | |||||||||||||||||||||
Total | $ | 4,211.70 | $ | 14.8 | $ | 17.3 | $ | 4,209.20 | |||||||||||||||||
Securities Available for Sale | December 31, 2013 | ||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||||
(In Millions) | Cost | Gains | Losses | Value | |||||||||||||||||||||
U.S. Government | $ | 1,896.70 | $ | 22.6 | $ | 1.4 | $ | 1,917.90 | |||||||||||||||||
Obligations of States and Political Subdivisions | 4.5 | 0.1 | — | 4.6 | |||||||||||||||||||||
Government Sponsored Agency | 17,495.20 | 80.7 | 47.9 | 17,528.00 | |||||||||||||||||||||
Corporate Debt | 3,615.20 | 10.5 | 101.2 | 3,524.50 | |||||||||||||||||||||
Covered Bonds | 1,898.90 | 50.9 | 5.9 | 1,943.90 | |||||||||||||||||||||
Supranational, Sovereign and Non-U.S. Agency Bonds | 717 | 5.3 | 1.7 | 720.6 | |||||||||||||||||||||
Residential Mortgage-Backed | 52.4 | 0.1 | 4.4 | 48.1 | |||||||||||||||||||||
Other Asset-Backed | 2,390.80 | 1.4 | 0.4 | 2,391.80 | |||||||||||||||||||||
Auction Rate | 97.5 | 2.2 | 0.8 | 98.9 | |||||||||||||||||||||
Other | 214.1 | 0.4 | — | 214.5 | |||||||||||||||||||||
Total | $ | 28,382.30 | $ | 174.2 | $ | 163.7 | $ | 28,392.80 | |||||||||||||||||
Securities Held to Maturity | December 31, 2013 | ||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||||
(In Millions) | Cost | Gains | Losses | Value | |||||||||||||||||||||
Obligations of States and Political Subdivisions | $ | 225.2 | $ | 10.3 | $ | — | $ | 235.5 | |||||||||||||||||
Government Sponsored Agency | 35.9 | 1.1 | — | 37 | |||||||||||||||||||||
Non-U.S. Government Debt | 197.3 | — | — | 197.3 | |||||||||||||||||||||
Certificates of Deposit | 698.1 | — | 0.2 | 697.9 | |||||||||||||||||||||
Supranational, Sovereign and Non-U.S. Agency Bonds | 1,109.40 | 0.8 | 4.3 | 1,105.90 | |||||||||||||||||||||
Other | 59.9 | 0.1 | 12.2 | 47.8 | |||||||||||||||||||||
Total | $ | 2,325.80 | $ | 12.3 | $ | 16.7 | $ | 2,321.40 | |||||||||||||||||
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, 2014. | |||||||||||||||||||||||||
(In Millions) | Amortized | Fair Value | |||||||||||||||||||||||
Cost | |||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
Due in One Year or Less | $ | 9,112.90 | $ | 9,117.70 | |||||||||||||||||||||
Due After One Year Through Five Years | 15,997.90 | 16,023.60 | |||||||||||||||||||||||
Due After Five Years Through Ten Years | 2,946.90 | 2,937.80 | |||||||||||||||||||||||
Due After Ten Years | 1,466.00 | 1,461.50 | |||||||||||||||||||||||
Total | 29,523.70 | 29,540.60 | |||||||||||||||||||||||
Held to Maturity | |||||||||||||||||||||||||
Due in One Year or Less | 1,897.90 | 1,900.90 | |||||||||||||||||||||||
Due After One Year Through Five Years | 2,256.40 | 2,257.50 | |||||||||||||||||||||||
Due After Five Years Through Ten Years | 25.3 | 25.9 | |||||||||||||||||||||||
Due After Ten Years | 32.1 | 24.9 | |||||||||||||||||||||||
Total | $ | 4,211.70 | $ | 4,209.20 | |||||||||||||||||||||
Note: | Mortgage-backed and asset-backed securities are included in the above table taking into account anticipated future prepayments. | ||||||||||||||||||||||||
Investment Security Gains and Losses. Net investment security losses of $4.0 million were recognized in the three months ended March 31, 2014, and include $3.9 million of charges related to the other-than-temporary impairment of certain Community Reinvestment Act (CRA) eligible held to maturity securities. Gross proceeds from the sale of securities during the three months ended March 31, 2014 of $199.7 million resulted in gross realized gains of $0.3 million and gross realized losses of $0.4 million. Gross proceeds from the sale of securities during the three months ended March 31, 2013 of $55.7 million resulted in gross realized gains of $0.2 million. | |||||||||||||||||||||||||
Securities with Unrealized Losses. The following tables provide information regarding securities that had been in a continuous unrealized loss position for less than 12 months and for 12 months or longer as of March 31, 2014 and December 31, 2013. | |||||||||||||||||||||||||
as of March 31, 2014 | Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
(In Millions) | Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
U.S. Government | $ | 1,195.60 | $ | 1.8 | $ | — | $ | — | $ | 1,195.60 | $ | 1.8 | |||||||||||||
Government Sponsored Agency | 6,055.60 | 33.6 | 913.1 | 12.1 | 6,968.70 | 45.7 | |||||||||||||||||||
Corporate Debt | 1,323.60 | 20.8 | 497 | 20.4 | 1,820.60 | 41.2 | |||||||||||||||||||
Covered Bonds | 190.1 | 0.2 | 9.9 | 0.2 | 200 | 0.4 | |||||||||||||||||||
Supranational, Sovereign and Non-U.S. Agency Bonds | 1,260.40 | 7.7 | — | — | 1,260.40 | 7.7 | |||||||||||||||||||
Residential Mortgage-Backed | — | — | 41 | 3 | 41 | 3 | |||||||||||||||||||
Other Asset-Backed | 187.4 | 0.1 | — | — | 187.4 | 0.1 | |||||||||||||||||||
Auction Rate | 23.2 | 0.2 | 13.7 | 0.7 | 36.9 | 0.9 | |||||||||||||||||||
Non-U.S. Government Debt | 148.9 | 0.1 | — | — | 148.9 | 0.1 | |||||||||||||||||||
Certificates of Deposit | 473.5 | 0.1 | — | — | 473.5 | 0.1 | |||||||||||||||||||
Other | 41.3 | 3.5 | 29 | 7.3 | 70.3 | 10.8 | |||||||||||||||||||
Total | $ | 10,899.60 | $ | 68.1 | $ | 1,503.70 | $ | 43.7 | $ | 12,403.30 | $ | 111.8 | |||||||||||||
Securities with Unrealized Losses | Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
as of December 31, 2013 | |||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
(In Millions) | Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
U.S. Government | $ | 896.4 | $ | 1.4 | $ | — | $ | — | $ | 896.4 | $ | 1.4 | |||||||||||||
Government Sponsored Agency | 4,340.80 | 42.6 | 413.7 | 5.3 | 4,754.50 | 47.9 | |||||||||||||||||||
Corporate Debt | 1,759.50 | 85.4 | 267 | 15.8 | 2,026.50 | 101.2 | |||||||||||||||||||
Covered Bonds | 278.8 | 5.7 | 9.9 | 0.2 | 288.7 | 5.9 | |||||||||||||||||||
Supranational, Sovereign and Non-U.S. Agency Bonds | 789.4 | 6 | — | — | 789.4 | 6 | |||||||||||||||||||
Residential Mortgage-Backed | — | — | 42 | 4.4 | 42 | 4.4 | |||||||||||||||||||
Other Asset-Backed | 677 | 0.4 | — | — | 677 | 0.4 | |||||||||||||||||||
Certificates of Deposit | 684.2 | 0.2 | — | — | 684.2 | 0.2 | |||||||||||||||||||
Auction Rate | 22.1 | 0.1 | 14 | 0.7 | 36.1 | 0.8 | |||||||||||||||||||
Other | 25.7 | 4 | 29.5 | 8.2 | 55.2 | 12.2 | |||||||||||||||||||
Total | $ | 9,473.90 | $ | 145.8 | $ | 776.1 | $ | 34.6 | $ | 10,250.00 | $ | 180.4 | |||||||||||||
As of March 31, 2014, 509 securities with a combined fair value of $12.4 billion were in an unrealized loss position, with their unrealized losses totaling $111.8 million. Unrealized losses of $45.7 million related to government sponsored agency securities are primarily attributable to changes in market rates since their purchase. Unrealized losses of $41.2 million within corporate debt securities primarily reflect widened credit spreads and higher market rates since purchase; 46% of the corporate debt portfolio is backed by guarantees provided by U.S. and non-U.S. governmental entities. | |||||||||||||||||||||||||
Unrealized losses on residential mortgage-backed securities totaling $3.0 million reflect the impact of wider credit and liquidity spreads on the valuations of 5 residential mortgage-backed securities since purchase, with $41.0 million having been in an unrealized loss position for more than 12 months. Residential mortgage-backed securities at March 31, 2014 had a total amortized cost and fair value of $48.6 million and $45.7 million, respectively. Securities classified as “other asset-backed” had average lives less than 5 years, and 99% were rated triple-A. | |||||||||||||||||||||||||
The majority of the $10.8 million of unrealized losses in securities classified as “other” at March 31, 2014 relate to securities which Northern Trust purchases for compliance with CRA. Unrealized losses on these CRA related securities are attributable to their purchase at 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 $0.9 million related to auction rate securities primarily reflect reduced market liquidity as a majority of auctions continue to fail preventing holders from liquidating their investments at par. The remaining unrealized losses on Northern Trust’s securities portfolio as of March 31, 2014 are attributable to changes in overall market interest rates, increased credit spreads, or reduced market liquidity. As of March 31, 2014, Northern Trust does not intend to sell any investment in an unrealized loss position and it is not more likely than not that Northern Trust will 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 following describes Northern Trust’s process for identifying credit impairment within non-agency residential mortgage-backed securities, the security type for which Northern Trust has previously recognized the majority of its OTTI. To determine if an unrealized loss on a non-agency residential mortgage-backed security is other-than-temporary, economic models are used to perform cash flow analyses by developing multiple scenarios in order to create reasonable forecasts of the security’s future performance using available data including servicers’ loan charge off patterns, prepayment speeds, annualized default rates, each security’s current delinquency pipeline, the delinquency pipeline’s growth rate, the roll rate from delinquency to default, loan loss severities and historical performance of like collateral, along with Northern Trust’s outlook for the housing market and the overall economy. If the present value of future cash flows projected as a result of this analysis is less than the current amortized cost of the security, a credit-related OTTI loss is recorded to earnings equal to the difference between the two amounts. | |||||||||||||||||||||||||
Impairments of non-agency residential mortgage-backed securities are influenced by a number of factors, including but not limited to, U.S. economic and housing market performance, security credit enhancement level, insurance coverage, year of origination, and type of collateral. The factors used in estimating losses on non-agency residential mortgage-backed securities vary by year of origination and type of collateral. | |||||||||||||||||||||||||
As of March 31, 2014, loss estimates for subprime, Alt-A, prime and 2nd lien collateral portfolios were developed using default roll rates, determined primarily by the stage of delinquency of the underlying instrument, that generally assumed ultimate default rates approximating 5% to 30% for current loans; 30% for loans 30 to 60 days delinquent; 80% for loans 60 to 90 days delinquent; 90% for loans delinquent greater than 90 days; and 100% for OREO properties and loans that are in foreclosure. March 31, 2014 amortized cost, weighted average ultimate default rates, and impairment severity rates for the non-agency residential mortgage-backed securities portfolio, by security type, are provided in the following table. | |||||||||||||||||||||||||
($ In Millions) | March 31, 2014 | ||||||||||||||||||||||||
Loss Severity Rates | |||||||||||||||||||||||||
Security Type | Amortized | Weighted Average | Low | High | Weighted | ||||||||||||||||||||
Cost | Ultimate Default Rates | Average | |||||||||||||||||||||||
Prime | $ | 7.2 | 19.7 | % | 32.5 | % | 53.4 | % | 47 | % | |||||||||||||||
Alt-A | 11.8 | 40.1 | 64.7 | 64.7 | 64.7 | ||||||||||||||||||||
Subprime | 21.6 | 47.1 | 74 | 77.1 | 74.7 | ||||||||||||||||||||
2nd Lien | 8 | 32.3 | 98.9 | 99 | 99 | ||||||||||||||||||||
Total Non-Agency Residential Mortgage-Backed Securities | $ | 48.6 | 38.5 | % | 32.5 | % | 99 | % | 72.1 | % | |||||||||||||||
Northern Trust’s processes for identifying credit impairment within auction rate securities are largely consistent with the processes utilized for non-agency residential mortgage-backed securities and include analyses of expected loss severities and default rates adjusted for the type of underlying loan and the presence of government guarantees, as applicable. | |||||||||||||||||||||||||
The process for identifying credit impairment within CRA eligible mortgage-backed securities incorporates an expected loss approach on the underlying collateral pools. To evaluate whether an unrealized loss on CRA mortgage-backed securities is other-than-temporary, a reasonable forecast of the security’s ultimate recovery value is calculated using available data including default rates, current delinquency pipeline, loan loss severities and historical performance of like collateral, along with Northern Trust’s outlook for the housing market and the overall economy. If the estimated recovery value of the collateral pools is less than the current amortized cost of the security, a credit-related OTTI loss is recorded to earnings equal to the difference between the two amounts. | |||||||||||||||||||||||||
Impairments of CRA 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 mortgage-backed securities vary by vintage of loan origination and collateral quality. | |||||||||||||||||||||||||
As of March 31, 2014, impairment estimates for CRA mortgage-backed securities were developed using default and loss severity rates sourced from industry mortgage data. Ultimate recovery value of the securities was determined by applying default and severity rates against remaining collateral balances in the pools. An expected loss amount was calculated by applying loss severity rates on defaulted amounts. Lastly, book values were compared against collateral values net of expected losses in order to determine OTTI. | |||||||||||||||||||||||||
There was $3.9 million of OTTI losses recognized during the three months ended March 31, 2014 related to CRA eligible mortgage-backed securities. There were no OTTI losses recognized during the three months ended March 31, 2013. | |||||||||||||||||||||||||
Credit Losses on Debt Securities. The table below provides information regarding total other-than-temporarily impaired securities, including noncredit-related amounts recognized in other comprehensive income and net impairment losses recognized in earnings, for the three months ended March 31, 2014 and 2013. | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||||||||||||||
Changes in OTTI Losses* | $ | (4.6 | ) | $ | — | ||||||||||||||||||||
Noncredit-related Losses Recorded in / (Reclassified from) OCI** | 0.7 | — | |||||||||||||||||||||||
Net Impairment Losses Recognized in Earnings | $ | (3.9 | ) | $ | — | ||||||||||||||||||||
* | For initial other-than-temporary impairments in the respective period, the balance includes the excess of the amortized cost over the fair value of the impaired securities. For subsequent impairments of the same security, the balance includes any additional changes in fair value of the security subsequent to its most recently recorded OTTI. | ||||||||||||||||||||||||
** | For initial other-than-temporary impairments in the respective period, the balance includes the portion of the excess of amortized cost over the fair value of the impaired securities that was recorded in OCI. For subsequent impairments of the same security, the balance includes additional changes in OCI for that security subsequent to its most recently recorded OTTI. | ||||||||||||||||||||||||
Provided in the table below are the cumulative credit-related losses recognized in earnings on debt securities other-than-temporarily impaired. | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||||||||||||||
Cumulative Credit-Related Losses on Securities Held – Beginning of Period | $ | 8.8 | $ | 42.3 | |||||||||||||||||||||
Plus: Losses on Newly Identified Impairments | 1.8 | — | |||||||||||||||||||||||
Additional Losses on Previously Identified Impairments | 2.1 | — | |||||||||||||||||||||||
Less: Current and Prior Period Losses on Securities Sold During the Period | — | (33.5 | ) | ||||||||||||||||||||||
Cumulative Credit-Related Losses on Securities Held – End of Period | $ | 12.7 | $ | 8.8 | |||||||||||||||||||||
The table below provides information regarding debt securities held as of March 31, 2014 and December 31, 2013, for which an OTTI loss has been recognized in the current period or previously. | |||||||||||||||||||||||||
(In Millions) | March 31, | December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Fair Value | $ | 52.4 | $ | 38.3 | |||||||||||||||||||||
Amortized Cost Basis | 55.4 | 42.8 | |||||||||||||||||||||||
Noncredit-related Losses Recognized in OCI | (3.0 | ) | (4.5 | ) | |||||||||||||||||||||
Tax Effect | 1.1 | 1.7 | |||||||||||||||||||||||
Amount Recorded in OCI | $ | (1.9 | ) | $ | (2.8 | ) | |||||||||||||||||||
Loans_and_Leases
Loans and Leases | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||
Loans and Leases | ' | ||||||||||||||||||||||||||||||||
5. Loans and Leases – Amounts outstanding for loans and leases, by segment and class, are shown below. | |||||||||||||||||||||||||||||||||
(In Millions) | March 31, | December 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and Institutional | $ | 7,738.20 | $ | 7,375.80 | |||||||||||||||||||||||||||||
Commercial Real Estate | 3,018.90 | 2,955.80 | |||||||||||||||||||||||||||||||
Lease Financing, net | 892.6 | 975.1 | |||||||||||||||||||||||||||||||
Non-U.S. | 1,349.70 | 954.7 | |||||||||||||||||||||||||||||||
Other | 281.3 | 358.6 | |||||||||||||||||||||||||||||||
Total Commercial | 13,280.70 | 12,620.00 | |||||||||||||||||||||||||||||||
Personal | |||||||||||||||||||||||||||||||||
Residential Real Estate | 10,093.90 | 10,271.30 | |||||||||||||||||||||||||||||||
Private Client | 6,247.80 | 6,445.60 | |||||||||||||||||||||||||||||||
Other | 38.4 | 48.6 | |||||||||||||||||||||||||||||||
Total Personal | 16,380.10 | 16,765.50 | |||||||||||||||||||||||||||||||
Total Loans and Leases | 29,660.80 | 29,385.50 | |||||||||||||||||||||||||||||||
Allowance for Credit Losses Assigned to Loans and Leases | (279.2 | ) | (278.1 | ) | |||||||||||||||||||||||||||||
Net Loans and Leases | $ | 29,381.60 | $ | 29,107.40 | |||||||||||||||||||||||||||||
Residential real estate loans consist of conventional home mortgages and equity credit lines that generally require a loan to collateral value of no more than 65% to 80% at inception. Northern Trust’s equity credit line products generally have draw periods of up to 10 years and a balloon payment of any outstanding balance is due at maturity. Payments are interest only with variable interest rates. Northern Trust does not offer equity credit lines that include an option to convert the outstanding balance to an amortizing payment loan. | |||||||||||||||||||||||||||||||||
As of March 31, 2014 and December 31, 2013, equity credit lines totaled $1.9 billion and $2.0 billion, respectively, and equity credit lines for which first liens were held by Northern Trust represented 87% of the total equity credit lines as of those dates. | |||||||||||||||||||||||||||||||||
Included within the non-U.S., commercial-other, and personal-other classes are short duration advances primarily related to the processing of custodied client investments, that totaled $1.5 billion at March 31, 2014 and $1.3 billion at December 31, 2013. Demand deposits reclassified as loan balances totaled $117.5 million and $104.1 million at March 31, 2014 and December 31, 2013, respectively. There were no loans classified as held for sale at March 31, 2014 or December 31, 2013. | |||||||||||||||||||||||||||||||||
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, 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, return on assets, asset size, and capital levels; | ||||||||||||||||||||||||||||||||
• | Commercial Real Estate: debt service coverage and leasing status for income-producing properties; loan-to-value and loan-to-cost ratios, leasing status, and guarantor support for loans associated with construction and development properties; | ||||||||||||||||||||||||||||||||
• | Lease Financing and Commercial-Other: leverage and profit margin levels; | ||||||||||||||||||||||||||||||||
• | Non-U.S.: entity type, liquidity, size, and leverage; | ||||||||||||||||||||||||||||||||
• | Residential Real Estate: payment history, credit bureau scores, and cash flow-to-debt and net worth ratios; | ||||||||||||||||||||||||||||||||
• | Private Client: cash flow-to-debt and net worth ratios, leverage, and profit margin levels; 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, 2014 and December 31, 2013 are provided below, segregated by borrower ratings into “1 to 3”, “4 to 5” and “6 to 9” (watch list), categories. | |||||||||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||
(In Millions) | 1 to 3 | 4 to 5 | 6 to 9 | Total | 1 to 3 | 4 to 5 | 6 to 9 | Total | |||||||||||||||||||||||||
Category | Category | Category | Category | Category | Category | ||||||||||||||||||||||||||||
(Watch List) | (Watch List) | ||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and Institutional | $ | 4,730.70 | $ | 2,860.40 | $ | 147.1 | $ | 7,738.20 | $ | 4,432.50 | $ | 2,801.50 | $ | 141.8 | $ | 7,375.80 | |||||||||||||||||
Commercial Real Estate | 1,150.60 | 1,709.70 | 158.6 | 3,018.90 | 1,053.70 | 1,748.70 | 153.4 | 2,955.80 | |||||||||||||||||||||||||
Lease Financing, net | 458.9 | 429.3 | 4.4 | 892.6 | 685.7 | 285 | 4.4 | 975.1 | |||||||||||||||||||||||||
Non-U.S. | 523.2 | 825.6 | 0.9 | 1,349.70 | 442.8 | 511.9 | — | 954.7 | |||||||||||||||||||||||||
Other | 172.7 | 108.6 | — | 281.3 | 157.7 | 200.9 | — | 358.6 | |||||||||||||||||||||||||
Total Commercial | 7,036.10 | 5,933.60 | 311 | 13,280.70 | 6,772.40 | 5,548.00 | 299.6 | 12,620.00 | |||||||||||||||||||||||||
Personal | |||||||||||||||||||||||||||||||||
Residential Real Estate | 3,124.30 | 6,473.60 | 496 | 10,093.90 | 3,204.60 | 6,563.60 | 503.1 | 10,271.30 | |||||||||||||||||||||||||
Private Client | 3,932.50 | 2,308.30 | 7 | 6,247.80 | 3,957.60 | 2,481.20 | 6.8 | 6,445.60 | |||||||||||||||||||||||||
Other | 23.4 | 15 | — | 38.4 | 21.2 | 27.4 | — | 48.6 | |||||||||||||||||||||||||
Total Personal | 7,080.20 | 8,796.90 | 503 | 16,380.10 | 7,183.40 | 9,072.20 | 509.9 | 16,765.50 | |||||||||||||||||||||||||
Total Loans and Leases | $ | 14,116.30 | $ | 14,730.50 | $ | 814 | $ | 29,660.80 | $ | 13,955.80 | $ | 14,620.20 | $ | 809.5 | $ | 29,385.50 | |||||||||||||||||
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 to probable 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. At the time a loan is determined to be nonperforming, interest accrued but not collected is reversed against interest income of the current period and the loan is classified as nonperforming. 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 other real estate owned and nonperforming asset balances, as of March 31, 2014 and December 31, 2013. | |||||||||||||||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||||||||||||
(In Millions) | Current | 30-59 Days | 60-89 Days | 90 Days or | Total | Nonperforming | Total Loans | ||||||||||||||||||||||||||
Past Due | Past Due | More Past Due | Performing | and Leases | |||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and Institutional | $ | 7,700.80 | $ | 5.5 | $ | 4.2 | $ | 1.6 | $ | 7,712.10 | $ | 26.1 | $ | 7,738.20 | |||||||||||||||||||
Commercial Real Estate | 2,934.00 | 22.5 | 3.8 | 7 | 2,967.30 | 51.6 | 3,018.90 | ||||||||||||||||||||||||||
Lease Financing, net | 892.6 | — | — | — | 892.6 | — | 892.6 | ||||||||||||||||||||||||||
Non-U.S. | 1,349.70 | — | — | — | 1,349.70 | — | 1,349.70 | ||||||||||||||||||||||||||
Other | 281.3 | — | — | — | 281.3 | — | 281.3 | ||||||||||||||||||||||||||
Total Commercial | 13,158.40 | 28 | 8 | 8.6 | 13,203.00 | 77.7 | 13,280.70 | ||||||||||||||||||||||||||
Personal | |||||||||||||||||||||||||||||||||
Residential Real Estate | 9,841.00 | 65.7 | 3.2 | 3.1 | 9,913.00 | 180.9 | 10,093.90 | ||||||||||||||||||||||||||
Private Client | 6,206.80 | 30.9 | 8.2 | 0.6 | 6,246.50 | 1.3 | 6,247.80 | ||||||||||||||||||||||||||
Other | 38.4 | — | — | — | 38.4 | — | 38.4 | ||||||||||||||||||||||||||
Total Personal | 16,086.20 | 96.6 | 11.4 | 3.7 | 16,197.90 | 182.2 | 16,380.10 | ||||||||||||||||||||||||||
Total Loans and Leases | $ | 29,244.60 | $ | 124.6 | $ | 19.4 | $ | 12.3 | $ | 29,400.90 | $ | 259.9 | $ | 29,660.80 | |||||||||||||||||||
Other Real Estate Owned | 9.8 | ||||||||||||||||||||||||||||||||
Total Nonperforming Assets | $ | 269.7 | |||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||
(In Millions) | Current | 30-59 Days | 60-89 Days | 90 Days or | Total | Nonperforming | Total Loans | ||||||||||||||||||||||||||
Past Due | Past Due | More Past Due | Performing | and Leases | |||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and Institutional | $ | 7,332.30 | $ | 5 | $ | 12.1 | $ | 3.3 | $ | 7,352.70 | $ | 23.1 | $ | 7,375.80 | |||||||||||||||||||
Commercial Real Estate | 2,881.10 | 4.1 | 14.6 | 6.8 | 2,906.60 | 49.2 | 2,955.80 | ||||||||||||||||||||||||||
Lease Financing, net | 975.1 | — | — | — | 975.1 | — | 975.1 | ||||||||||||||||||||||||||
Non-U.S. | 954.7 | — | — | — | 954.7 | — | 954.7 | ||||||||||||||||||||||||||
Other | 358.6 | — | — | — | 358.6 | — | 358.6 | ||||||||||||||||||||||||||
Total Commercial | 12,501.80 | 9.1 | 26.7 | 10.1 | 12,547.70 | 72.3 | 12,620.00 | ||||||||||||||||||||||||||
Personal | |||||||||||||||||||||||||||||||||
Residential Real Estate | 9,934.40 | 129.3 | 15.6 | 2.9 | 10,082.20 | 189.1 | 10,271.30 | ||||||||||||||||||||||||||
Private Client | 6,404.20 | 29.1 | 7.5 | 3.4 | 6,444.20 | 1.4 | 6,445.60 | ||||||||||||||||||||||||||
Other | 48.6 | — | — | — | 48.6 | — | 48.6 | ||||||||||||||||||||||||||
Total Personal | 16,387.20 | 158.4 | 23.1 | 6.3 | 16,575.00 | 190.5 | 16,765.50 | ||||||||||||||||||||||||||
Total Loans and Leases | $ | 28,889.00 | $ | 167.5 | $ | 49.8 | $ | 16.4 | $ | 29,122.70 | $ | 262.8 | $ | 29,385.50 | |||||||||||||||||||
Other Real Estate Owned | 11.9 | ||||||||||||||||||||||||||||||||
Total Nonperforming Assets | $ | 274.7 | |||||||||||||||||||||||||||||||
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. 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 $250,000) 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 is consistent across all classes of loans and leases. | |||||||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||||||
The following tables provide information related to impaired loans by segment and class. | |||||||||||||||||||||||||||||||||
As of March 31, 2014 | As of December 31, 2013 | ||||||||||||||||||||||||||||||||
Unpaid | Unpaid | ||||||||||||||||||||||||||||||||
Recorded | Principal | Specific | Recorded | Principal | Specific | ||||||||||||||||||||||||||||
(In Millions) | Investment | Balance | Allowance | Investment | Balance | Allowance | |||||||||||||||||||||||||||
With No Related Specific Allowance | |||||||||||||||||||||||||||||||||
Commercial and Institutional | $ | 12.2 | $ | 15.4 | $ | — | $ | 12.2 | $ | 18.1 | $ | — | |||||||||||||||||||||
Commercial Real Estate | 49.8 | 58.1 | — | 46.6 | 57.1 | — | |||||||||||||||||||||||||||
Lease Financing, net | 4.4 | 4.4 | — | 4.4 | 4.4 | — | |||||||||||||||||||||||||||
Residential Real Estate | 190.7 | 237.3 | — | 185 | 227.8 | — | |||||||||||||||||||||||||||
Private Client | 0.5 | 0.5 | — | 0.8 | 0.8 | — | |||||||||||||||||||||||||||
With a Related Specific Allowance | |||||||||||||||||||||||||||||||||
Commercial and Institutional | 12.3 | 13 | 3.7 | 9.6 | 12.1 | 3.6 | |||||||||||||||||||||||||||
Commercial Real Estate | 27 | 33 | 6 | 26.7 | 31.5 | 4.5 | |||||||||||||||||||||||||||
Residential Real Estate | 5.1 | 5.3 | 1.7 | 8.1 | 8.7 | 2.3 | |||||||||||||||||||||||||||
Private Client | 0.4 | 0.4 | 0.4 | — | — | — | |||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||
Commercial | 105.7 | 123.9 | 9.7 | 99.5 | 123.2 | 8.1 | |||||||||||||||||||||||||||
Personal | 196.7 | 243.5 | 2.1 | 193.9 | 237.3 | 2.3 | |||||||||||||||||||||||||||
Total | $ | 302.4 | $ | 367.4 | $ | 11.8 | $ | 293.4 | $ | 360.5 | $ | 10.4 | |||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Average | Interest | Average | Interest | ||||||||||||||||||||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||||||||||||||||||||
(In Millions) | Investment | Recognized | Investment | Recognized | |||||||||||||||||||||||||||||
With No Related Specific Allowance | |||||||||||||||||||||||||||||||||
Commercial and Institutional | $ | 11.4 | $ | — | $ | 12.2 | $ | — | |||||||||||||||||||||||||
Commercial Real Estate | 44.8 | 0.3 | 39.6 | 0.2 | |||||||||||||||||||||||||||||
Lease Financing, net | 4.4 | 0.1 | 4.6 | — | |||||||||||||||||||||||||||||
Residential Real Estate | 189.2 | 0.6 | 141 | 0.5 | |||||||||||||||||||||||||||||
Private Client | 0.7 | — | 9.4 | 0.1 | |||||||||||||||||||||||||||||
With a Related Specific Allowance | |||||||||||||||||||||||||||||||||
Commercial and Institutional | 10 | — | 11 | — | |||||||||||||||||||||||||||||
Commercial Real Estate | 26.4 | — | 30.4 | — | |||||||||||||||||||||||||||||
Residential Real Estate | 7.1 | — | 9.8 | — | |||||||||||||||||||||||||||||
Private Client | 0.1 | — | 1.1 | — | |||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||
Commercial | 97 | 0.4 | 97.8 | 0.2 | |||||||||||||||||||||||||||||
Personal | 197.1 | 0.6 | 161.3 | 0.6 | |||||||||||||||||||||||||||||
Total | $ | 294.1 | $ | 1 | $ | 259.1 | $ | 0.8 | |||||||||||||||||||||||||
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 $2.5 million and $2.6 million, respectively, for the three months ended March 31, 2014 and 2013. | |||||||||||||||||||||||||||||||||
There were $2.9 million and $3.4 million of aggregate undrawn loan commitments and standby letters of credit at March 31, 2014 and December 31, 2013, respectively, issued to borrowers whose loans were classified as nonperforming or impaired. | |||||||||||||||||||||||||||||||||
Troubled Debt Restructurings (TDRs). Included within impaired loans were $61.9 million and $72.7 million of nonperforming TDRs, and $95.9 million and $89.8 million of performing TDRs as of March 31, 2014 and December 31, 2013, respectively. All TDRs are reported as impaired loans in the calendar year of their restructuring. In subsequent years, a TDR may cease being reported as impaired if the loan was modified at a market rate and has performed according to the modified terms for at least six months. A loan that has been modified at a below market rate will return to performing status if it satisfies the six month performance requirement; however, it will remain reported as impaired. | |||||||||||||||||||||||||||||||||
The following tables provide, by segment and class, the number of loans and leases modified in TDRs during the three month period ended March 31, 2014 and 2013, and the recorded investments and unpaid principal balances as of March 31, 2014 and 2013. | |||||||||||||||||||||||||||||||||
($ In Millions) | Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||||||||
Number of | Recorded | Unpaid Principal | |||||||||||||||||||||||||||||||
Loans and Leases | Investment | Balance | |||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial Real Estate | 1 | $ | 0.7 | $ | 0.7 | ||||||||||||||||||||||||||||
Total Commercial | 1 | 0.7 | 0.7 | ||||||||||||||||||||||||||||||
Personal | |||||||||||||||||||||||||||||||||
Residential Real Estate | 34 | 3.5 | 3.8 | ||||||||||||||||||||||||||||||
Private Client | 1 | — | — | ||||||||||||||||||||||||||||||
Total Personal | 35 | 3.5 | 3.8 | ||||||||||||||||||||||||||||||
Total Loans and Leases | 36 | $ | 4.2 | $ | 4.5 | ||||||||||||||||||||||||||||
Note: Period end balances reflect all paydowns and charge-offs during the period. | |||||||||||||||||||||||||||||||||
($ In Millions) | Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, 2013 | |||||||||||||||||||||||||||||||||
Number of | Recorded | Unpaid Principal | |||||||||||||||||||||||||||||||
Loans and Leases | Investment | Balance | |||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and Institutional | 7 | $ | 2.5 | $ | 3.1 | ||||||||||||||||||||||||||||
Commercial Real Estate | 1 | 0.1 | 0.1 | ||||||||||||||||||||||||||||||
Total Commercial | 8 | 2.6 | 3.2 | ||||||||||||||||||||||||||||||
Personal | |||||||||||||||||||||||||||||||||
Residential Real Estate | 48 | 41.7 | 43.1 | ||||||||||||||||||||||||||||||
Private Client | 5 | 12.8 | 12.8 | ||||||||||||||||||||||||||||||
Total Personal | 53 | 54.5 | 55.9 | ||||||||||||||||||||||||||||||
Total Loans and Leases | 61 | $ | 57.1 | $ | 59.1 | ||||||||||||||||||||||||||||
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, 2014, the majority of TDR modifications of loans within the commercial real estate, residential real estate, and private client classes were extensions of term. During the three months ended March 31, 2013, TDR modifications of loans within the commercial and institutional, commercial real estate, and private client classes were primarily deferrals of principal; extensions of term, and other modifications, and modifications of loans within the residential real estate class were primarily deferrals of principal, interest rate concessions, extensions of term, and other modifications. | |||||||||||||||||||||||||||||||||
There were no loans or leases modified in TDRs in the 12 months ended December 31, 2013 or 2012 which subsequently became nonperforming during the three months ended March 31, 2014 or 2013, respectively. | |||||||||||||||||||||||||||||||||
All loans and leases modified in troubled debt restructurings are evaluated for impairment. The nature and extent of impairment of TDRs, including those which have experienced a subsequent default, is considered in the determination of an appropriate level of allowance for credit losses. |
Allowance_for_Credit_Losses
Allowance for Credit Losses | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Allowance for Credit Losses | ' | ||||||||||||||||||||||||
6. 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. | |||||||||||||||||||||||||
In establishing the inherent portion of the allowance for credit losses, Northern Trust’s Loan Loss Allowance Committee assesses a common set of qualitative factors applicable to both the commercial and personal loan segments. The risk characteristics underlying these qualitative factors, and management’s assessments as to the relative importance of a qualitative factor, can vary between loan segments and between classes within loan segments. Factors evaluated include those related to external matters, such as economic conditions and changes in collateral value, and those related to internal matters, such as changes in asset quality metrics and loan review activities. In addition to the factors noted above, risk characteristics such as portfolio delinquencies, percentage of portfolio on the watch list and on nonperforming status, and average borrower ratings are assessed in the determination of the inherent allowance. | |||||||||||||||||||||||||
Loan-to-value levels are considered for collateral-secured loans and leases in both the personal and commercial segments. Borrower debt service coverage is evaluated in the personal segment, and cash flow coverage is analyzed in the commercial segment. | |||||||||||||||||||||||||
Similar risk characteristics by type of exposure are analyzed when determining the allowance for undrawn commitments and standby letters of credit. These qualitative factors, together with historical loss rates, serve as the basis for the allowance for credit losses. | |||||||||||||||||||||||||
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 tables provide information regarding changes in the total allowance for credit losses by segment during the three months ended March 31, 2014 and 2013. | |||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(In Millions) | Commercial | Personal | Total | Commercial | Personal | Total | |||||||||||||||||||
Balance at Beginning of Period | $ | 168 | $ | 139.9 | $ | 307.9 | $ | 194.2 | $ | 133.4 | $ | 327.6 | |||||||||||||
Charge-Offs | (4.2 | ) | (7.3 | ) | (11.5 | ) | (0.9 | ) | (11.7 | ) | (12.6 | ) | |||||||||||||
Recoveries | 8.5 | 1.5 | 10 | 1.8 | 2.1 | 3.9 | |||||||||||||||||||
Net (Charge-Offs) Recoveries | 4.3 | (5.8 | ) | (1.5 | ) | 0.9 | (9.6 | ) | (8.7 | ) | |||||||||||||||
Provision for Credit Losses | 0.8 | 2.2 | 3 | (7.9 | ) | 12.9 | 5 | ||||||||||||||||||
Effect of Foreign Exchange Rates | — | — | — | (0.1 | ) | — | (0.1 | ) | |||||||||||||||||
Balance at End of Period | $ | 173.1 | $ | 136.3 | $ | 309.4 | $ | 187.1 | $ | 136.7 | $ | 323.8 | |||||||||||||
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, 2014 and December 31, 2013. | |||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
(In Millions) | Commercial | Personal | Total | Commercial | Personal | Total | |||||||||||||||||||
Loans and Leases | |||||||||||||||||||||||||
Specifically Evaluated for Impairment | $ | 105.7 | $ | 196.7 | $ | 302.4 | $ | 99.5 | $ | 193.9 | $ | 293.4 | |||||||||||||
Evaluated for Inherent Impairment | 13,175.00 | 16,183.40 | 29,358.40 | 12,520.50 | 16,571.60 | 29,092.10 | |||||||||||||||||||
Total Loans and Leases | 13,280.70 | 16,380.10 | 29,660.80 | 12,620.00 | 16,765.50 | 29,385.50 | |||||||||||||||||||
Allowance for Loans and Leases | |||||||||||||||||||||||||
Specifically Evaluated for Impairment | 9.7 | 2.1 | 11.8 | 8.1 | 2.3 | 10.4 | |||||||||||||||||||
Evaluated for Inherent Impairment | 136.4 | 131 | 267.4 | 132.8 | 134.9 | 267.7 | |||||||||||||||||||
Allowance Assigned to Loans and Leases | 146.1 | 133.1 | 279.2 | 140.9 | 137.2 | 278.1 | |||||||||||||||||||
Allowance for Unfunded Exposures | |||||||||||||||||||||||||
Commitments and Standby Letters of Credit | 27 | 3.2 | 30.2 | 27.1 | 2.7 | 29.8 | |||||||||||||||||||
Total Allowance for Credit Losses | $ | 173.1 | $ | 136.3 | $ | 309.4 | $ | 168 | $ | 139.9 | $ | 307.9 | |||||||||||||
Pledged_Assets
Pledged Assets | 3 Months Ended |
Mar. 31, 2014 | |
Pledged Assets | ' |
7. Pledged Assets – Certain of Northern Trust’s subsidiaries, as required or permitted by law, pledge assets to secure public and trust deposits; repurchase agreements; Federal Home Loan Bank borrowings; and for other purposes, including support for securities settlement, primarily related to client activities, and for potential Federal Reserve Bank discount window borrowings. At March 31, 2014, securities and loans totaling $30.3 billion ($20.7 billion of government sponsored agency and other securities, $173.3 million of obligations of states and political subdivisions, and $9.4 billion of loans) were pledged. This compares to $32.4 billion ($22.6 billion of government sponsored agency and other securities, $222.7 million of obligations of states and political subdivisions, and $9.6 billion of loans) at December 31, 2013. Collateral required for these purposes totaled $3.2 billion and $5.0 billion at March 31, 2014 and December 31, 2013, respectively. Included in the total pledged assets at March 31, 2014 and December 31, 2013 were available for sale securities with a total fair value of $735.5 million and $915.3 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 as of March 31, 2014 and December 31, 2013 was $500.0 million. There was no repledged or sold collateral at March 31, 2014 or December 31, 2013. Deposits maintained to meet Federal Reserve Bank reserve requirements averaged $1.2 billion and $0.9 billion for the three months ended March 31, 2014 and 2013, respectively. |
Goodwill_and_Other_Intangibles
Goodwill and Other Intangibles | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Goodwill and Other Intangibles | ' | ||||||||
8. Goodwill and Other Intangibles – The carrying amounts of goodwill, reflecting the effect of foreign exchange rates on non-U.S. dollar denominated balances, by business unit at March 31, 2014 and December 31, 2013 were as follows: | |||||||||
(In Millions) | March 31, | December 31, | |||||||
2014 | 2013 | ||||||||
Corporate & Institutional Services | $ | 470.1 | $ | 469.2 | |||||
Wealth Management | 71.5 | 71.5 | |||||||
Total Goodwill | $ | 541.6 | $ | 540.7 | |||||
The gross carrying amount and accumulated amortization of other intangible assets subject to amortization as of March 31, 2014 and December 31, 2013 were as follows: | |||||||||
(In Millions) | March 31, | December 31, | |||||||
2014 | 2013 | ||||||||
Gross Carrying Amount | $ | 198.7 | $ | 198.2 | |||||
Less: Accumulated Amortization | 120.5 | 115.2 | |||||||
Net Book Value | $ | 78.2 | $ | 83 | |||||
Other intangible assets consist primarily of the value of acquired client relationships and are included within other assets on the consolidated balance sheet. Amortization expense related to other intangible assets totaled $4.9 million and $5.2 million for the three months ended March 31, 2014 and 2013, respectively. Amortization for the remainder of 2014 and for the years 2015, 2016, 2017, and 2018 is estimated to be $14.8 million, $11.9 million, $9.3 million, $9.3 million and $8.6 million, respectively. |
Business_Units
Business Units | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||
Business Units | ' | ||||||||||||||||||||||||||||||||
9. Business Units – The following tables show the earnings contributions of Northern Trust’s business units for the three month periods ended March 31, 2014 and 2013. | |||||||||||||||||||||||||||||||||
Three Months Ended | Corporate & | Wealth | Treasury and | Total | |||||||||||||||||||||||||||||
March 31, | Institutional | Management | Other | Consolidated | |||||||||||||||||||||||||||||
Services | |||||||||||||||||||||||||||||||||
($ In Millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Noninterest Income | |||||||||||||||||||||||||||||||||
Trust, Investment and Other Servicing Fees | $ | 379.2 | $ | 348.7 | $ | 300.3 | $ | 282 | $ | — | $ | — | $ | 679.5 | $ | 630.7 | |||||||||||||||||
Foreign Exchange Trading Income | 48.1 | 58.2 | 2 | 1.3 | — | — | 50.1 | 59.5 | |||||||||||||||||||||||||
Other Noninterest Income | 44.4 | 40.2 | 22.7 | 17.2 | (1.9 | ) | 2.7 | 65.2 | 60.1 | ||||||||||||||||||||||||
Net Interest Income (FTE)* | 73.7 | 64.1 | 135 | 147.8 | 45.7 | 21.8 | 254.4 | 233.7 | |||||||||||||||||||||||||
Revenue* | 545.4 | 511.2 | 460 | 448.3 | 43.8 | 24.5 | 1,049.20 | 984 | |||||||||||||||||||||||||
Provision for Credit Losses | 1.2 | (2.7 | ) | 1.8 | 7.7 | — | — | 3 | 5 | ||||||||||||||||||||||||
Noninterest Expense | 423.5 | 398.7 | 318.8 | 301.8 | 25.7 | 28.4 | 768 | 728.9 | |||||||||||||||||||||||||
Income (Loss) before Income Taxes* | 120.7 | 115.2 | 139.4 | 138.8 | 18.1 | (3.9 | ) | 278.2 | 250.1 | ||||||||||||||||||||||||
Provision (Benefit) for Income Taxes* | 34.8 | 35.9 | 52.6 | 52.8 | 9.4 | (2.6 | ) | 96.8 | 86.1 | ||||||||||||||||||||||||
Net Income | $ | 85.9 | $ | 79.3 | $ | 86.8 | $ | 86 | $ | 8.7 | $ | (1.3 | ) | $ | 181.4 | $ | 164 | ||||||||||||||||
Percentage of Consolidated Net Income | 47 | % | 48 | % | 48 | % | 52 | % | 5 | % | N/M | 100 | % | 100 | % | ||||||||||||||||||
Average Assets | $ | 57,252.40 | $ | 51,316.80 | $ | 22,528.70 | $ | 22,861.40 | $ | 20,462.40 | $ | 17,391.10 | $ | 100,243.50 | $ | 91,569.30 | |||||||||||||||||
* | Stated on a fully taxable equivalent basis (FTE). Total consolidated includes FTE adjustments of $8.7 million for 2014 and $7.6 million for 2013. | ||||||||||||||||||||||||||||||||
Further discussion of business unit results is provided within the “Business Unit Reporting” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||||||||||
10. Accumulated Other Comprehensive Income (Loss) – The following tables summarize the components of accumulated other comprehensive income (loss) at March 31, 2014 and 2013, and changes during the three month periods then ended. | |||||||||||||||||||||||||
(In Millions) | Balance at | Net Change | Balance at | ||||||||||||||||||||||
December 31, | March 31, | ||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||
Net Unrealized Gains (Losses) on Securities Available for Sale | $ | 6 | $ | 4.5 | $ | 10.5 | |||||||||||||||||||
Net Unrealized Gains (Losses) on Cash Flow Hedges | 2.9 | 1.6 | 4.5 | ||||||||||||||||||||||
Net Foreign Currency Adjustments | 7.1 | (1.3 | ) | 5.8 | |||||||||||||||||||||
Net Pension and Other Postretirement Benefit Adjustments | (260.3 | ) | 3.4 | (256.9 | ) | ||||||||||||||||||||
Total | $ | (244.3 | ) | $ | 8.2 | $ | (236.1 | ) | |||||||||||||||||
(In Millions) | Balance at | Net Change | Balance at | ||||||||||||||||||||||
December 31, | March 31, | ||||||||||||||||||||||||
2012 | 2013 | ||||||||||||||||||||||||
Net Unrealized Gains (Losses) on Securities Available for Sale | $ | 101 | $ | 1.3 | $ | 102.3 | |||||||||||||||||||
Net Unrealized Gains (Losses) on Cash Flow Hedges | (1.4 | ) | (5.2 | ) | (6.6 | ) | |||||||||||||||||||
Net Foreign Currency Adjustments | 10.5 | (4.2 | ) | 6.3 | |||||||||||||||||||||
Net Pension and Other Postretirement Benefit Adjustments | (393.1 | ) | 7 | (386.1 | ) | ||||||||||||||||||||
Total | $ | (283.0 | ) | $ | (1.1 | ) | $ | (284.1 | ) | ||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(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 | $ | 1.5 | $ | (0.6 | ) | $ | 0.9 | $ | 2.1 | $ | (0.8 | ) | $ | 1.3 | |||||||||||
Other Unrealized Gains (Losses) on Securities Available for Sale | 5.7 | (2.2 | ) | 3.5 | 0.2 | (0.1 | ) | 0.1 | |||||||||||||||||
Reclassification Adjustment for (Gains) Losses Included in Net Income | 0.1 | — | 0.1 | (0.2 | ) | 0.1 | (0.1 | ) | |||||||||||||||||
Net Change | 7.3 | (2.8 | ) | 4.5 | 2.1 | (0.8 | ) | 1.3 | |||||||||||||||||
Unrealized Gains (Losses) on Cash Flow Hedges | |||||||||||||||||||||||||
Unrealized Gains (Losses) on Cash Flow Hedges | 2.4 | (0.9 | ) | 1.5 | (9.2 | ) | 2.9 | (6.3 | ) | ||||||||||||||||
Reclassification Adjustment for (Gains) Losses Included in Net Income | 0.2 | (0.1 | ) | 0.1 | 1.8 | (0.7 | ) | 1.1 | |||||||||||||||||
Net Change | 2.6 | (1.0 | ) | 1.6 | (7.4 | ) | 2.2 | (5.2 | ) | ||||||||||||||||
Foreign Currency Adjustments | |||||||||||||||||||||||||
Foreign Currency Translation Adjustments | 6.5 | (0.7 | ) | 5.8 | (56.4 | ) | 0.5 | (55.9 | ) | ||||||||||||||||
Long-Term Intra-Entity Foreign Currency Transaction Losses | (0.6 | ) | — | (0.6 | ) | — | — | — | |||||||||||||||||
Net Investment Hedge Gains (Losses) | (10.6 | ) | 4.1 | (6.5 | ) | 82.8 | (31.1 | ) | 51.7 | ||||||||||||||||
Reclassification Adjustment for (Gains) Losses Included in Net Income | — | — | — | — | — | — | |||||||||||||||||||
Net Change | (4.7 | ) | 3.4 | (1.3 | ) | 26.4 | (30.6 | ) | (4.2 | ) | |||||||||||||||
Pension and Other Postretirement Benefit Adjustments | |||||||||||||||||||||||||
Net Actuarial Gain (Loss) | — | — | — | — | — | — | |||||||||||||||||||
Reclassification Adjustment for (Gains) Losses Included in Net Income | 6.4 | (3.0 | ) | 3.4 | 11.2 | (4.2 | ) | 7 | |||||||||||||||||
Net Change | $ | 6.4 | $ | (3.0 | ) | $ | 3.4 | $ | 11.2 | $ | (4.2 | ) | $ | 7 | |||||||||||
The following table provides the location and before-tax amounts of reclassifications out of accumulated other comprehensive income (loss) during the three months ended March 31, 2014. | |||||||||||||||||||||||||
(In Millions) | Location of Reclassification Adjustments | Amount of Reclassification | |||||||||||||||||||||||
Recognized in Income | Adjustments Recognized | ||||||||||||||||||||||||
in Income for the | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||||
Securities Available for Sale | |||||||||||||||||||||||||
Realized (Gains) Losses on Securities Available for Sale | Investment Security Gains (Losses), net | $ | 0.1 | ||||||||||||||||||||||
Realized (Gains) Losses on Cash Flow Hedges | |||||||||||||||||||||||||
Foreign Exchange Contracts | Other Operating Income/ Expense | 0.2 | |||||||||||||||||||||||
Pension and Other Postretirement Benefit Adjustments | |||||||||||||||||||||||||
Amortization of Net Actuarial (Gain) Loss | Employee Benefits | (0.4 | ) | ||||||||||||||||||||||
Amortization of Prior Service Cost | Employee Benefits | 6.8 | |||||||||||||||||||||||
Gross Reclassification Adjustment | $ | 6.4 | |||||||||||||||||||||||
Net_Income_Per_Common_Share_Co
Net Income Per Common Share Computations | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Net Income Per Common Share Computations | ' | ||||||||
11. Net Income Per Common Share Computations – The computations of net income per common share are presented in the following table. | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
($ In Millions Except Per Common Share Information) | 2014 | 2013 | |||||||
Basic Net Income Per Common Share | |||||||||
Average Number of Common Shares Outstanding | 237,208,151 | 239,167,559 | |||||||
Net Income Applicable to Common Stock | $ | 181.4 | $ | 164 | |||||
Less: Earnings Allocated to Participating Securities | 2.9 | 2.5 | |||||||
Earnings Allocated to Common Shares Outstanding | 178.5 | 161.5 | |||||||
Basic Net Income Per Common Share | 0.75 | 0.68 | |||||||
Diluted Net Income Per Common Share | |||||||||
Average Number of Common Shares Outstanding | 237,208,151 | 239,167,559 | |||||||
Plus: Dilutive Effect of Share-based Compensation | 1,842,563 | 1,021,656 | |||||||
Average Common and Potential Common Shares | 239,050,714 | 240,189,215 | |||||||
Earnings Allocated to Common and Potential Common Shares | $ | 178.5 | $ | 161.5 | |||||
Diluted Net Income Per Common Share | 0.75 | 0.67 | |||||||
Note: Common stock equivalents totaling 1,997,337 and 4,603,526 for the three months ended March 31, 2014 and 2013, 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, 2014 | |||||||||
Net Interest Income | ' | ||||||||
12 | Net Interest Income – The components of net interest income were as follows: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
(In Millions) | 2014 | 2013 | |||||||
Interest Income | |||||||||
Loans and Leases | $ | 182.9 | $ | 187.6 | |||||
Securities – Taxable | 69.5 | 58.2 | |||||||
– Non-Taxable | 2.2 | 3.3 | |||||||
Interest-Bearing Deposits with Banks | 32.1 | 35 | |||||||
Federal Reserve Deposits and Other | 8.7 | 2.6 | |||||||
Total Interest Income | 295.4 | 286.7 | |||||||
Interest Expense | |||||||||
Deposits | 20.1 | 29.1 | |||||||
Federal Funds Purchased | 0.3 | 0.3 | |||||||
Securities Sold Under Agreements to Repurchase | 0.1 | 0.1 | |||||||
Other Borrowings | 0.7 | 0.7 | |||||||
Senior Notes | 17.5 | 19.2 | |||||||
Long-Term Debt | 10.4 | 10.6 | |||||||
Floating Rate Capital Debt | 0.6 | 0.6 | |||||||
Total Interest Expense | 49.7 | 60.6 | |||||||
Net Interest Income | $ | 245.7 | $ | 226.1 | |||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Taxes | ' |
13. Income Taxes – Income tax expense for the three months ended March 31, 2014 of $88.1 million was recorded, representing an effective tax rate of 32.7%. The prior year three month provision for income taxes was $78.5 million, representing an effective tax rate of 32.4%. |
Pension_and_Other_Postretireme
Pension and Other Postretirement Plans | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Pension and Other Postretirement Plans | ' | ||||||||
14. Pension and Other Postretirement Plans – 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 other postretirement plan for the three months ended March 31, 2014 and 2013. | |||||||||
Net Periodic Pension Expense | Three Months Ended | ||||||||
U.S. Plan | March 31, | ||||||||
(In Millions) | 2014 | 2013 | |||||||
Service Cost | $ | 8.2 | $ | 7.6 | |||||
Interest Cost | 11.1 | 10.5 | |||||||
Expected Return on Plan Assets | (24.4 | ) | (23.1 | ) | |||||
Amortization | |||||||||
Net Actuarial Loss | (0.1 | ) | 10.4 | ||||||
Prior Service Cost | 5.4 | (0.1 | ) | ||||||
Net Periodic Pension Expense | $ | 0.2 | $ | 5.3 | |||||
Net Periodic Pension Expense | Three Months Ended | ||||||||
Non U.S. Plans | March 31, | ||||||||
(In Millions) | 2014 | 2013 | |||||||
Interest Cost | $ | 1.7 | $ | 1.7 | |||||
Expected Return on Plan Assets | (1.7 | ) | (1.5 | ) | |||||
Net Actuarial Loss Amortization | (0.4 | ) | 0.1 | ||||||
Net Periodic Pension Expense | $ | (0.4 | ) | $ | 0.3 | ||||
Net Periodic Pension Expense | Three Months Ended | ||||||||
Supplemental Plan | March 31, | ||||||||
(In Millions) | 2014 | 2013 | |||||||
Service Cost | $ | 0.8 | $ | 0.4 | |||||
Interest Cost | 1.2 | 1.1 | |||||||
Amortization | |||||||||
Net Actuarial Loss | 0.1 | 1.7 | |||||||
Prior Service Cost | 1.5 | 0.1 | |||||||
Net Periodic Pension Expense | $ | 3.6 | $ | 3.3 | |||||
Net Periodic Postretirement Benefit | Three Months Ended | ||||||||
Other Postretirement Plan | March 31, | ||||||||
(In Millions) | 2014 | 2013 | |||||||
Service Cost | $ | — | $ | — | |||||
Interest Cost | 0.4 | 0.3 | |||||||
Amortization | |||||||||
Net Actuarial Gain | — | (0.3 | ) | ||||||
Prior Service Cost | (0.1 | ) | (0.7 | ) | |||||
Net Periodic Postretirement Benefit | $ | 0.3 | $ | (0.7 | ) | ||||
ShareBased_Compensation_Plans
Share-Based Compensation Plans | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Share-Based Compensation Plans | ' | ||||||||
15. 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 2014, the Corporation granted 386,749 nonqualified stock options with a total grant-date fair value of $6.3 million, 999,862 restricted stock unit awards with a total grant-date fair value of $60.8 million and 249,618 performance stock units with a total grant-date fair value of $15.2 million. Restricted stock unit award compensation expense for the three months ended March 31, 2014 and 2013 includes $1.4 million and $1.5 million, respectively, attributable to restricted stock units which vested in full and were expensed in their entirety on their date of grant. Compensation expense for the three months ended March 31, 2014 and 2013 includes $3.0 million and $2.1 million, respectively, attributable to stock options granted to retirement-eligible employees that were expensed in their entirety on the grant date. Total compensation expense for share-based payment arrangements and the associated tax impacts were as follows for the three months ended March 31, 2014 and 2013. | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
(In Millions) | 2014 | 2013 | |||||||
Restricted Stock Unit Awards | $ | 14.1 | $ | 12.4 | |||||
Stock Options | 6.4 | 6.9 | |||||||
Performance Stock Units | 2.6 | 1.2 | |||||||
Total Share-Based Compensation Expense | 23.1 | 20.5 | |||||||
Tax Benefits Recognized | $ | 8.7 | $ | 7.7 | |||||
Variable_Interest_Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2014 | |
Variable Interest Entities | ' |
16. Variable Interest Entities – Variable Interest Entities (VIEs) are defined within GAAP as entities which 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. | |
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, 2014 and December 31, 2013, the carrying amounts of these investments, which are included in loans and leases in the consolidated balance sheet, were $635.1 million and $671.2 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. These 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 investments and their ability to operate in compliance with the rules and regulations necessary for the qualification of tax credits generated by equity investments. Northern Trust has determined that it is not the primary beneficiary of any community development project 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 unfunded commitments. As of March 31, 2014 and December 31, 2013, the carrying amount of investments in community development projects that generate tax credits, included in other assets in the consolidated balance sheet, totaled $215.3 million and $222.3 million, respectively. As of March 31, 2014 and December 31, 2013, liabilities related to unfunded commitments on investments in tax credit community development projects, included in other liabilities in the consolidated balance sheet, totaled $22.4 million and $19.8 million, respectively. Northern Trust’s funding requirements are limited to its invested capital and unfunded 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 $14.8 million for the three months ended March 31, 2014. As discussed in Note 2 to the consolidated financial statements, Northern Trust recognized a $1.1 million increase in the provision for income taxes and a $0.2 million increase in income before income taxes in connection with its adoption, effective January 1, 2014, of ASU 2014-01. | |
Trust Preferred Securities. In 1997, Northern Trust issued Floating Rate Capital Securities, Series A and Series B, through NTC Capital I and NTC Capital II, respectively, statutory business trusts wholly-owned by the Corporation. The sole assets of the trusts are Subordinated Debentures of the Corporation that have the same interest rates and maturity dates as the corresponding distribution rates and redemption dates of the Floating Rate Capital Securities. NTC Capital I and NTC Capital II are considered VIEs; however, as the sole asset of each trust is a receivable from the Corporation and proceeds to the Corporation from the receivable exceed the Corporation’s investment in the VIEs’ equity shares, the Corporation is not permitted to consolidate the trusts, even though the Corporation owns all of the voting equity shares of the trusts, has fully guaranteed the trusts’ obligations, and has the right to redeem the preferred securities in certain circumstances. Northern Trust recognizes the subordinated debentures on its consolidated balance sheet as long-term liabilities. | |
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, the Corporation 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. |
Contingent_Liabilities
Contingent Liabilities | 3 Months Ended |
Mar. 31, 2014 | |
Contingent Liabilities | ' |
17. Contingent Liabilities – Standby Letters of Credit and Indemnifications. 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 $4.4 billion at March 31, 2014 and $4.5 billion at December 31, 2013. | |
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 Senior Credit 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 fully collateralize 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 subject to indemnification was $95.4 billion at March 31, 2014 and $82.7 billion at December 31, 2013. Because of the credit quality of the borrowers and the requirement to fully collateralize securities borrowed, management believes that the exposure to credit loss from this activity is not significant and no liability was recorded at March 31, 2014 or December 31, 2013 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”. Thus, references to the upper end of the range of reasonably possible loss for matters in which the Corporation is able to estimate a range of reasonably possible loss mean the upper end of the range of loss for matters for which the Corporation believes the risk of loss is more than remote but less than likely. | |
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, 2014, the Corporation has estimated the upper end of the range of reasonably possible losses for these matters to be approximately $130 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. | |
As previously disclosed, a number of participants in our securities lending program, which is associated with the Corporation’s asset servicing business, have commenced either individual lawsuits or purported class actions in which they claim, among other things, that we 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 the fourth quarter of 2013, Northern Trust recorded a $19.2 million pre-tax charge in connection with an agreement to resolve claims related to two of these lawsuits. The settlement is not final as it requires further documentation, signed agreements and court approval. Other lawsuits related to securities lending are not part of the proposed settlement, and remain pending. | |
In April 2014, Northern Trust received a subpoena from the U.S. Securities and Exchange Commission (SEC) seeking documents related to Northern Trust’s securities lending activities. Northern Trust will fully cooperate with the SEC in this investigation. | |
Visa Membership. Northern Trust, as a member of Visa U.S.A. Inc. (Visa U.S.A.) and in connection with the 2007 initial public offering of Visa Inc. (Visa), received shares of restricted stock in Visa, a portion of which was redeemed pursuant to a mandatory redemption. The proceeds of the redemption totaled $167.9 million and were recorded as a gain in 2008. The remaining Visa shares held by Northern Trust are recorded at their original cost basis of zero and as of March 31, 2014 had restrictions as to their sale or transfer. | |
Northern Trust is obligated to indemnify Visa for losses resulting from certain indemnified litigation involving Visa and has been required to recognize, at its estimated fair value in accordance with GAAP, a guarantee liability arising from such litigation that has not yet settled. | |
During 2007, Northern Trust recorded charges and corresponding liabilities of $150 million relating to Visa indemnified litigation. Subsequently, Visa established an escrow account to cover the settlements of, or judgments in, indemnified litigation. The fundings by Visa of its escrow account have resulted in reductions of Northern Trust’s Visa related indemnification liability and of the future realization of the value of outstanding shares of Visa common stock held by Northern Trust as a member bank of Visa U.S.A. Reductions of Northern Trust’s indemnification liability totaling $23.1 million, $33.0 million, and $17.8 million were recorded in 2011, 2010, and 2009, respectively, which combined with a $76.1 million reduction recorded in 2008, fully eliminated the recorded indemnification liability as of December 31, 2011. | |
On October 19, 2012, Visa signed a settlement agreement with plaintiff representatives for binding settlement of the indemnified litigation relating to interchange fees, which was approved by a federal judge on December 13, 2013, and is subject to appeals. While the final settlement and ultimate resolution of outstanding Visa related litigation and the timing for removal of selling restrictions on shares owned by Northern Trust are highly uncertain, based upon the settlement terms announced by Visa, Northern Trust anticipates that the value of its remaining shares of Visa stock will be adequate to offset any remaining indemnification obligations related to Visa litigation. | |
Contingent Purchase Consideration. In connection with an acquisition consummated in 2011, contingent consideration was recorded relating to certain performance-related purchase price adjustments. The fair value of the contingent consideration was $55.4 million at December 31, 2013. On March 31, 2014, the value of the acquisition-related contingent consideration was agreed by the parties to be $55.3 million and Northern Trust subsequently made a payment to extinguish the liability. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||
Derivative Financial Instruments | ' | ||||||||||||||||||||||||||||
18. 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, and credit default swap contracts. | |||||||||||||||||||||||||||||
Northern Trust’s primary risks associated with these instruments is the possibility that interest rates, foreign exchange rates, 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 to pay based on the contractual terms of the agreement, and is generally limited to the unrealized fair value gains or losses 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 credit spreads 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 sheet 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 statement 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 sheet were each reduced by $1.1 billion as of March 31, 2014 and by $1.2 billion as of December 31, 2013, as a result of master netting arrangements and similar agreements in place. Derivative assets and liabilities recorded at March 31, 2014 also reflect reductions of $313.6 million and $364.9 million, 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 $210.7 million and $767.7 million, respectively, at December 31, 2013. Additional cash collateral received from and deposited with derivative counterparties totaling $56.8 million and $81.8 million, respectively, as of March 31, 2014, and $36.4 million and $39.3 million, respectively, as of December 31, 2013, were not offset against derivative assets and liabilities on the consolidated balance sheet as the amounts exceeded the net derivative positions with those counterparties. Northern Trust centrally clears interest rate derivative instruments that are addressed under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Securities posted as collateral for these transactions totaled $27.6 million, are not offset against derivative assets and liabilities on the consolidated balance sheet, 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 $348.2 million and $257.3 million at March 31, 2014 and December 31, 2013, respectively. Cash collateral amounts deposited with derivative counterparties on those dates included $316.6 million and $197.0 million, respectively, posted against these liabilities, resulting in a net maximum amount of termination payments that could have been required at March 31, 2014 and December 31, 2013 of $31.6 million and $60.3 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 on behalf of 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, and swaptions, and provide for the transfer or reduction of interest rate risk 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 option contracts for risk management purposes. | |||||||||||||||||||||||||||||
Credit default swap contracts are agreements to transfer credit default risk from one party to another in exchange for a fee. Northern Trust enters into credit default swaps with outside counterparties where the counterparty agrees to assume the underlying credit exposure of a specific Northern Trust commercial loan or loan commitment. | |||||||||||||||||||||||||||||
Client-Related and Trading Derivative Instruments. Approximately 96% of Northern Trust’s derivatives outstanding at March 31, 2014 and December 31, 2013, 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 sheet. 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. | |||||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||
Notional | Fair Value | Notional | Fair Value | ||||||||||||||||||||||||||
(In Millions) | Value | Asset | Liability | Value | Asset | Liability | |||||||||||||||||||||||
Foreign Exchange Contracts | $ | 239,970.00 | $ | 1,854.20 | $ | 1,866.70 | $ | 243,135.00 | $ | 2,844.70 | $ | 2,846.20 | |||||||||||||||||
Interest Rate Contracts | 5,139.70 | 116.7 | 111.3 | 5,001.70 | 122.8 | 117 | |||||||||||||||||||||||
Total | $ | 245,109.70 | $ | 1,970.90 | $ | 1,978.00 | $ | 248,136.70 | $ | 2,967.50 | $ | 2,963.20 | |||||||||||||||||
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 statement of income for the three months ended March 31, 2014 and 2013. | |||||||||||||||||||||||||||||
Location of Derivative Gain/(Loss) | Amount of Derivative | ||||||||||||||||||||||||||||
Recognized in Income | Gain/(Loss) Recognized in | ||||||||||||||||||||||||||||
Income | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||||||||||||||||||
Foreign Exchange Contracts | Foreign Exchange Trading Income | $ | 50.1 | $ | 59.5 | ||||||||||||||||||||||||
Interest Rate Contracts | Security Commissions and Trading Income | 1.9 | 3.3 | ||||||||||||||||||||||||||
Total | $ | 52 | $ | 62.8 | |||||||||||||||||||||||||
Risk Management Instruments. Northern Trust uses derivative instruments to hedge its exposure to foreign currency, interest rate, 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. | |||||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||
Derivative | Risk | Notional | Fair Value | Notional | Fair Value | ||||||||||||||||||||||||
(In Millions) | Instrument | Classification | Value | Asset | Liability | Value | Asset | Liability | |||||||||||||||||||||
Fair Value Hedges | |||||||||||||||||||||||||||||
Available for Sale Investment Securities | Interest Rate | Interest | $ | 3,219.40 | $ | 24.7 | $ | 35.2 | $ | 3,296.90 | $ | 31.5 | $ | 44.8 | |||||||||||||||
Swap Contracts | Rate | ||||||||||||||||||||||||||||
Senior Notes and Long- Term Subordinated Debt | Interest Rate | Interest | 1,250.00 | 87 | 8.3 | 1,250.00 | 83.6 | 33.4 | |||||||||||||||||||||
Swap Contracts | Rate | ||||||||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||||||||
Forecasted Foreign Currency Denominated Transactions | Foreign Exchange | Foreign | 322.2 | 10.3 | 3 | 314 | 10.2 | 5.5 | |||||||||||||||||||||
Contracts | Currency | ||||||||||||||||||||||||||||
Net Investment Hedges | |||||||||||||||||||||||||||||
Net Investments in Non-U.S. Affiliates | Foreign Exchange | Foreign | 1,763.20 | 0.9 | 19.4 | 1,684.90 | 9.8 | 52.8 | |||||||||||||||||||||
Contracts | Currency | ||||||||||||||||||||||||||||
Total | $ | 6,554.80 | $ | 122.9 | $ | 65.9 | $ | 6,545.80 | $ | 135.1 | $ | 136.5 | |||||||||||||||||
In addition to the above, Sterling denominated debt, totaling $250.6 million and $259.1 million at March 31, 2014 and December 31, 2013, respectively, was designated as a hedge of the foreign exchange risk associated with the net investment in certain non-U.S. affiliates. | |||||||||||||||||||||||||||||
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 statement of income related to fair value hedges for the three months ended March 31, 2014 and 2013. | |||||||||||||||||||||||||||||
Amount of Derivative | |||||||||||||||||||||||||||||
Gain/(Loss) Recognized in | |||||||||||||||||||||||||||||
Income | |||||||||||||||||||||||||||||
Location of Derivative | Three Months Ended | ||||||||||||||||||||||||||||
Derivative | Gain/(Loss) | March 31, | |||||||||||||||||||||||||||
(In Millions) | Instrument | Recognized in Income | 2014 | 2013 | |||||||||||||||||||||||||
Available for Sale Investment Securities | Interest Rate | Interest | $ | (12.1 | ) | $ | 3.4 | ||||||||||||||||||||||
Swap Contracts | Income | ||||||||||||||||||||||||||||
Senior Notes and Long-Term Subordinated Debt | Interest Rate | Interest | 32.5 | (0.7 | ) | ||||||||||||||||||||||||
Swap Contracts | Expense | ||||||||||||||||||||||||||||
Total | $ | 20.4 | $ | 2.7 | |||||||||||||||||||||||||
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. As a result, changes recorded in the fair value of the hedged item are equal to the offsetting gain or loss on the derivative and are reflected in the same line item as the gain or loss. For fair value hedges that do not qualify for the “shortcut” method of | |||||||||||||||||||||||||||||
accounting, Northern Trust utilizes regression analysis, a “long-haul” method of accounting, in assessing whether the hedging relationships are highly effective at inception and on an ongoing basis. There was no ineffectiveness or changes in the fair value of hedged items recognized in earnings for fair value hedges during the three months ended March 31, 2014. There were $0.3 million of losses recorded within the fair values of hedged items for such “long-haul” hedges and $0.2 million of losses from ineffectiveness recorded during the three months ended March 31, 2013 in connection with the hedging of available for sale investment securities, senior notes, and subordinated debt. Ineffectiveness resulting from fair value hedges is recorded in either interest income or interest expense. | |||||||||||||||||||||||||||||
Derivatives are also designated as cash flow hedges in order to minimize the variability in cash flows of forecasted transactions caused by movements in foreign exchange rates. The effective portion of changes in the fair value of such derivatives is recognized in AOCI, a component of stockholders’ equity, and there is no change in the accounting for the hedged item. When the hedged forecasted transaction impacts earnings, balances in AOCI are reclassified to earnings. For cash flow hedges of forecasted foreign currency denominated revenue and expenditure transactions, Northern Trust closely matches all terms of the hedged item and the hedging derivative at inception and on an ongoing basis which limits hedge ineffectiveness. To the extent all terms are not perfectly matched, effectiveness is assessed using the dollar-offset method and any ineffectiveness is measured using the hypothetical derivative method. There was no ineffectiveness recognized in earnings for cash flow hedges during the three months ended March 31, 2014 and 2013. As of March 31, 2014, 23 months is the maximum length of time over which the exposure to variability in future cash flows of forecasted foreign currency denominated transactions is being hedged. | |||||||||||||||||||||||||||||
The following tables provide cash flow hedge derivative gains and losses recognized in AOCI and the amounts reclassified to earnings during the three months ended March 31, 2014 and 2013. | |||||||||||||||||||||||||||||
Foreign Exchange | |||||||||||||||||||||||||||||
(In Millions) | Contracts (Before Tax) | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
Net Gain/(Loss) Recognized in AOCI | $ | 2.4 | $ | (9.2 | ) | ||||||||||||||||||||||||
Net Gain/(Loss) Reclassified from AOCI to Earnings | |||||||||||||||||||||||||||||
Other Operating Income | 0.8 | (0.7 | ) | ||||||||||||||||||||||||||
Other Operating Expense | (0.2 | ) | (1.1 | ) | |||||||||||||||||||||||||
Total | $ | 0.6 | $ | (1.8 | ) | ||||||||||||||||||||||||
During the three months ended March 31, 2014 and 2013, there were no transactions discontinued due to the original forecasted transactions no longer being probable of occurring. It is estimated that a net gain of $5.2 million will be reclassified into earnings within the next twelve months relating to cash flow hedges. | |||||||||||||||||||||||||||||
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. The effective portion of changes in the fair value of the hedging instrument is recognized in AOCI consistent with the related translation gains and losses of the hedged net investment. For net investment hedges, all critical terms of the hedged item and the hedging instrument are matched at inception and on an ongoing basis to minimize the risk of hedge ineffectiveness. To the extent all terms are not perfectly matched, any ineffectiveness is measured using the hypothetical derivative method. Ineffectiveness resulting from net investment hedges is recorded in other operating income. There was no ineffectiveness recorded during the three months ended March 31, 2014 and 2013. Amounts recorded in AOCI are reclassified to earnings only upon the sale or liquidation of an investment in a non-U.S. branch or subsidiary. | |||||||||||||||||||||||||||||
The following table provides net investment hedge gains and losses recognized in AOCI during the three months ended March 31, 2014 and 2013. | |||||||||||||||||||||||||||||
Hedging Gain/(Loss) | |||||||||||||||||||||||||||||
Recognized in OCI (Before Tax) | |||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||||||||||||||||||
Foreign Exchange Contracts | $ | (9.0 | ) | $ | 66.3 | ||||||||||||||||||||||||
Sterling Denominated Subordinated Debt | (1.6 | ) | 16.5 | ||||||||||||||||||||||||||
Total | $ | (10.6 | ) | $ | 82.8 | ||||||||||||||||||||||||
Derivatives that are not formally designated as hedges 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. Credit default swaps are entered into to manage the credit risk associated with certain loans and loan commitments. The following table identifies the types of risk management derivative instruments not formally designated as hedges and their notional amounts and fair values. | |||||||||||||||||||||||||||||
(In Millions) | March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||
Notional | Fair Value | Notional | Fair Value | ||||||||||||||||||||||||||
Value | Asset | Liability | Value | Asset | Liability | ||||||||||||||||||||||||
Foreign Exchange Contracts | $ | 182.6 | $ | 0.7 | $ | 1.3 | $ | 168.8 | $ | 1 | $ | 1.2 | |||||||||||||||||
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 statement of income for the three months ended March 31, 2014 and 2013. | |||||||||||||||||||||||||||||
Location of | Amount of Derivative Gain/(Loss) | ||||||||||||||||||||||||||||
Recognized in Income | |||||||||||||||||||||||||||||
Derivative Gain/ | Three Months Ended | ||||||||||||||||||||||||||||
(Loss) Recognized | March 31, | ||||||||||||||||||||||||||||
(In Millions) | in Income | 2014 | 2013 | ||||||||||||||||||||||||||
Credit Default Swap Contracts | Other Operating Income | $ | — | $ | (0.1 | ) | |||||||||||||||||||||||
Foreign Exchange Contracts | Other Operating Income | (0.7 | ) | (2.9 | ) | ||||||||||||||||||||||||
Total | $ | (0.7 | ) | $ | (3.0 | ) | |||||||||||||||||||||||
Offsetting_of_Assets_and_Liabi
Offsetting of Assets and Liabilities | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Offsetting of Assets and Liabilities | ' | ||||||||||||||||||||
19. 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 sheet as of March 31, 2014 and December 31, 2013. | |||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||
(In Millions) | Gross | Gross | Net | Gross | Net | ||||||||||||||||
Recognized | Amounts | Amounts | Amounts | Amount (3) | |||||||||||||||||
Assets | Offset | Presented | Not Offset | ||||||||||||||||||
Derivative Assets (1) | |||||||||||||||||||||
Foreign Exchange Contracts Over the Counter (OTC) | $ | 1,577.10 | $ | 965.7 | $ | 611.4 | $ | — | $ | 611.4 | |||||||||||
Interest Rate Swaps OTC | 217.9 | 41.7 | 176.2 | — | 176.2 | ||||||||||||||||
Interest Rate Swaps Exchange Cleared | 10.5 | 5.7 | 4.8 | — | 4.8 | ||||||||||||||||
Cross Product Netting Adjustment | — | 67 | — | — | — | ||||||||||||||||
Cross Product Collateral Adjustment | — | 313.6 | — | — | — | ||||||||||||||||
Total Derivatives Subject to a Master Netting Arrangement | 1,805.50 | 1,393.70 | 411.8 | — | 411.8 | ||||||||||||||||
Total Derivatives Not Subject to a Master Netting Arrangement | 289 | — | 289 | — | 289 | ||||||||||||||||
Total Derivatives | 2,094.50 | 1,393.70 | 700.8 | — | 700.8 | ||||||||||||||||
Securities Purchased under Agreements to Resell (2) | $ | 500 | $ | — | $ | 500 | $ | 500 | $ | — | |||||||||||
December 31, 2013 | |||||||||||||||||||||
(In Millions) | Gross | Gross | Net | Gross | Net | ||||||||||||||||
Recognized | Amounts | Amounts | Amounts | Amount (3) | |||||||||||||||||
Assets | Offset | Presented | Not Offset | ||||||||||||||||||
Derivative Assets (1) | |||||||||||||||||||||
Foreign Exchange Contracts OTC | $ | 2,612.50 | $ | 1,073.30 | $ | 1,539.20 | $ | — | $ | 1,539.20 | |||||||||||
Interest Rate Swaps OTC | 228.8 | 47.5 | 181.3 | — | 181.3 | ||||||||||||||||
Interest Rate Swaps Exchange Cleared | 9.1 | 9.1 | — | — | — | ||||||||||||||||
Cross Product Netting Adjustment | — | 28.4 | — | — | — | ||||||||||||||||
Cross Product Collateral Adjustment | — | 210.7 | — | — | — | ||||||||||||||||
Total Derivatives Subject to a Master Netting Arrangement | 2,850.40 | 1,369.00 | 1,481.40 | — | 1,481.40 | ||||||||||||||||
Total Derivatives Not Subject to a Master Netting Arrangement | 253.2 | — | 253.2 | — | 253.2 | ||||||||||||||||
Total Derivatives | 3,103.60 | 1,369.00 | 1,734.60 | — | 1,734.60 | ||||||||||||||||
Securities Purchased under Agreements to Resell (2) | $ | 500 | $ | — | $ | 500 | $ | 500 | $ | — | |||||||||||
-1 | Derivative assets are reported in other assets in the consolidated balance sheet. Other assets (excluding derivative assets) totaled $3,607.1 million and $3,029.4 million as of March 31, 2014 and December 31, 2013, 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 sheet. Federal funds sold totaled $10 million and $29.6 million as of March 31, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||
-3 | Northern Trust did not possess any cash collateral that was not offset in the consolidated balance sheet that could have been used to offset the net amounts presented in the consolidated balance sheet as of March 31, 2014 and December 31, 2013. | ||||||||||||||||||||
The following tables provide information regarding the offsetting of derivative liabilities and securities sold under agreements to repurchase within the consolidated balance sheet as of March 31, 2014 and December 31, 2013. | |||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||
(In Millions) | Gross | Gross | Net | Gross | Net | ||||||||||||||||
Recognized | Amounts | Amounts | Amounts | Amount (2) | |||||||||||||||||
Liabilities | Offset | Presented | Not Offset | ||||||||||||||||||
Derivative Liabilities (1) | |||||||||||||||||||||
Foreign Exchange Contracts OTC | $ | 1,522.30 | $ | 965.7 | $ | 556.6 | $ | — | $ | 556.6 | |||||||||||
Interest Rate Swaps OTC | 149.1 | 41.7 | 107.4 | — | 107.4 | ||||||||||||||||
Interest Rate Swaps Exchange Cleared | 5.7 | 5.7 | — | — | — | ||||||||||||||||
Cross Product Netting Adjustment | — | 67 | — | — | — | ||||||||||||||||
Cross Product Collateral Adjustment | — | 364.9 | — | — | — | ||||||||||||||||
Total Derivatives Subject to a Master Netting Arrangement | 1,677.10 | 1,445.00 | 232.1 | — | 232.1 | ||||||||||||||||
Total Derivatives Not Subject to a Master Netting Arrangement | 368.1 | — | 368.1 | — | 368.1 | ||||||||||||||||
Total Derivatives | 2,045.20 | 1,445.00 | 600.2 | — | 600.2 | ||||||||||||||||
Securities Sold under Agreements to Repurchase | $ | 736.6 | $ | — | $ | 736.6 | $ | 736.6 | $ | — | |||||||||||
December 31, 2013 | |||||||||||||||||||||
(In Millions) | Gross | Gross | Net | Gross | Net | ||||||||||||||||
Recognized | Amounts | Amounts | Amounts | Amount (2) | |||||||||||||||||
Liabilities | Offset | Presented | Not Offset | ||||||||||||||||||
Derivative Liabilities (1) | |||||||||||||||||||||
Foreign Exchange Contracts OTC | $ | 2,039.00 | $ | 1,073.30 | $ | 965.7 | $ | — | $ | 965.7 | |||||||||||
Interest Rate Swaps OTC | 163.7 | 47.5 | 116.2 | — | 116.2 | ||||||||||||||||
Interest Rate Swaps Exchange Cleared | 31.5 | 9.1 | 22.4 | — | 22.4 | ||||||||||||||||
Cross Product Netting Adjustment | — | 28.4 | — | — | — | ||||||||||||||||
Cross Product Collateral Adjustment | — | 767.7 | — | — | — | ||||||||||||||||
Total Derivatives Subject to a Master Netting Arrangement | 2,234.20 | 1,926.00 | 308.2 | — | 308.2 | ||||||||||||||||
Total Derivatives Not Subject to a Master Netting Arrangement | 866.7 | — | 866.7 | 866.7 | |||||||||||||||||
Total Derivatives | 3,100.90 | 1,926.00 | 1,174.90 | — | 1,174.90 | ||||||||||||||||
Securities Sold under Agreements to Repurchase | $ | 917.3 | $ | — | $ | 917.3 | $ | 917.3 | $ | — | |||||||||||
-1 | Derivative liabilities are reported in other liabilities in the consolidated balance sheet. Other liabilities (excluding derivative liabilities) totaled $2,608.3 million and $2,338.4 million as of March 31, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||
-2 | Northern Trust did not place any cash collateral with counterparties that was not offset in the consolidated balance sheet that could have been used to offset the net amounts presented in the consolidated balance sheet as of March 31, 2014 and December 31, 2013. | ||||||||||||||||||||
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. Effective in the second quarter of 2013, Northern Trust centrally clears those interest rate derivative instruments addressed under Title VII of the Dodd-Frank Act. These transactions are subject to an agreement similar to a master netting arrangement which has the same rights of offset as described above. | |||||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis Segregated by Fair Value Hierarchy Level | ' | ||||||||||||||||||||
The following presents assets and liabilities measured at fair value on a recurring basis as of March 31, 2014 and December 31, 2013, segregated by fair value hierarchy level. | |||||||||||||||||||||
(In Millions) | Level 1 | Level 2 | Level 3 | Netting | Assets/Liabilities | ||||||||||||||||
at Fair Value | |||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||
Securities | |||||||||||||||||||||
Available for Sale | |||||||||||||||||||||
U.S. Government | $ | 2,414.70 | $ | — | $ | — | $ | — | $ | 2,414.70 | |||||||||||
Obligations of States and Political Subdivisions | — | 4.6 | — | — | 4.6 | ||||||||||||||||
Government Sponsored Agency | — | 18,150.80 | — | — | 18,150.80 | ||||||||||||||||
Corporate Debt | — | 3,626.00 | — | — | 3,626.00 | ||||||||||||||||
Covered Bonds | — | 1,978.50 | — | — | 1,978.50 | ||||||||||||||||
Supranational, Sovereign and Non-U.S. Agency Bonds | — | 720.5 | — | — | 720.5 | ||||||||||||||||
Residential Mortgage-Backed | — | 45.7 | — | — | 45.7 | ||||||||||||||||
Other Asset-Backed | — | 2,304.70 | — | — | 2,304.70 | ||||||||||||||||
Auction Rate | — | — | 98.5 | — | 98.5 | ||||||||||||||||
Other | — | 196.6 | — | — | 196.6 | ||||||||||||||||
Total Available for Sale | 2,414.70 | 27,027.40 | 98.5 | — | 29,540.60 | ||||||||||||||||
Trading Account | — | 1.5 | — | — | 1.5 | ||||||||||||||||
Total Available for Sale and Trading Securities | 2,414.70 | 27,028.90 | 98.5 | — | 29,542.10 | ||||||||||||||||
Other Assets | |||||||||||||||||||||
Derivative Assets | |||||||||||||||||||||
Foreign Exchange Contracts | — | 1,866.10 | — | — | 1,866.10 | ||||||||||||||||
Interest Rate Contracts | — | 228.4 | — | — | 228.4 | ||||||||||||||||
Total Derivative Assets | — | 2,094.50 | — | (1,393.7 | ) | 700.8 | |||||||||||||||
Other Liabilities | |||||||||||||||||||||
Derivative Liabilities | |||||||||||||||||||||
Foreign Exchange Contracts | — | 1,890.40 | — | — | 1,890.40 | ||||||||||||||||
Interest Rate Contracts | — | 154.8 | — | — | 154.8 | ||||||||||||||||
Credit Default Swaps | — | — | — | — | — | ||||||||||||||||
Total Derivative Liabilities | — | 2,045.20 | — | (1,445.0 | ) | 600.2 | |||||||||||||||
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, 2014, derivative assets and liabilities shown above also include reductions of $313.6 million and $364.9 million, respectively, as a result of cash collateral received from and deposited with derivative counterparties. | |||||||||||||||||||||
(In Millions) | Level 1 | Level 2 | Level 3 | Netting | Assets/Liabilities | ||||||||||||||||
at Fair Value | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Securities | |||||||||||||||||||||
Available for Sale | |||||||||||||||||||||
U.S. Government | $ | 1,917.90 | $ | — | $ | — | $ | — | $ | 1,917.90 | |||||||||||
Obligations of States and Political Subdivisions | — | 4.6 | — | — | 4.6 | ||||||||||||||||
Government Sponsored Agency | — | 17,528.00 | — | — | 17,528.00 | ||||||||||||||||
Corporate Debt | — | 3,524.50 | — | — | 3,524.50 | ||||||||||||||||
Covered Bonds | — | 1,943.90 | — | — | 1,943.90 | ||||||||||||||||
Supranational, Sovereign and Non-U.S. Agency Bonds | — | 720.6 | — | — | 720.6 | ||||||||||||||||
Residential Mortgage-Backed | — | 48.1 | — | — | 48.1 | ||||||||||||||||
Other Asset-Backed | — | 2,391.80 | — | — | 2,391.80 | ||||||||||||||||
Auction Rate | — | — | 98.9 | — | 98.9 | ||||||||||||||||
Other | — | 214.5 | — | — | 214.5 | ||||||||||||||||
Total Available for Sale | 1,917.90 | 26,376.00 | 98.9 | — | 28,392.80 | ||||||||||||||||
Trading Account | — | 1.7 | — | — | 1.7 | ||||||||||||||||
Total Available for Sale and Trading Securities | 1,917.90 | 26,377.70 | 98.9 | — | 28,394.50 | ||||||||||||||||
Other Assets | |||||||||||||||||||||
Derivative Assets | |||||||||||||||||||||
Foreign Exchange Contracts | — | 2,865.70 | — | — | 2,865.70 | ||||||||||||||||
Interest Rate Contracts | — | 237.9 | — | — | 237.9 | ||||||||||||||||
Total Derivative Assets | — | 3,103.60 | — | (1,369.0 | ) | 1,734.60 | |||||||||||||||
Other Liabilities | |||||||||||||||||||||
Derivative Liabilities | |||||||||||||||||||||
Foreign Exchange Contracts | — | 2,905.70 | — | — | 2,905.70 | ||||||||||||||||
Interest Rate Swaps | — | 195.2 | — | — | 195.2 | ||||||||||||||||
Total Derivative Liabilities | — | 3,100.90 | — | (1,926.0 | ) | 1,174.90 | |||||||||||||||
Contingent Consideration | $ | — | $ | — | $ | 55.4 | $ | — | $ | 55.4 | |||||||||||
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, 2013, derivative assets and liabilities shown above also include reductions of $210.7 million and $767.7 million, respectively, as a result of cash collateral received from and deposited with derivative counterparties. | |||||||||||||||||||||
Changes in Level 3 Assets | ' | ||||||||||||||||||||
The following tables present the changes in Level 3 assets and liabilities for the three months ended March 31, 2014 and 2013. | |||||||||||||||||||||
Level 3 Assets (In Millions) | Auction Rate Securities | ||||||||||||||||||||
Three Months Ended March 31, | 2014 | 2013 | |||||||||||||||||||
Fair Value at January 1 | $ | 98.9 | $ | 97.8 | |||||||||||||||||
Total Gains (Losses): | |||||||||||||||||||||
Included in Earnings (1) | — | 0.1 | |||||||||||||||||||
Included in Other Comprehensive Income (2) | (0.2 | ) | 2.7 | ||||||||||||||||||
Purchases, Issues, Sales, and Settlements | |||||||||||||||||||||
Sales | 0.1 | — | |||||||||||||||||||
Settlements | (0.3 | ) | (1.0 | ) | |||||||||||||||||
Fair Value at March 31 | $ | 98.5 | $ | 99.6 | |||||||||||||||||
-1 | Realized gains for the three month period ended March 31, 2013 of $0.1 million represent gains from redemptions by issuers, which are recorded in interest income within the consolidated statement of income. | ||||||||||||||||||||
-2 | Unrealized gains (losses) related to auction rate securities are included in net unrealized gains (losses) on securities available for sale within the consolidated statement of comprehensive income. | ||||||||||||||||||||
Changes in Level 3 Liabilities | ' | ||||||||||||||||||||
Level 3 Liabilities (In Millions) | Contingent Consideration | ||||||||||||||||||||
Three Months Ended March 31, | 2014 | 2013 | |||||||||||||||||||
Fair Value at January 1 | $ | 55.4 | $ | 50.1 | |||||||||||||||||
Total (Gains) and Losses: | |||||||||||||||||||||
Included in Earnings (1) | (0.1 | ) | 1.3 | ||||||||||||||||||
Included in Other Comprehensive Income | — | — | |||||||||||||||||||
Purchases, Issues, Sales, and Settlements | |||||||||||||||||||||
Purchases | — | — | |||||||||||||||||||
Settlements | (55.3 | ) | — | ||||||||||||||||||
Fair Value at March 31 | $ | — | $ | 51.4 | |||||||||||||||||
Unrealized (Gains) Losses Included in Earnings Related to Financial Instruments Held at March 31 (1) | $ | — | $ | 1.3 | |||||||||||||||||
-1 | Gains (losses) are recorded in other operating income (expense) within the consolidated statement of income. | ||||||||||||||||||||
Book and Fair Values of All Financial Instruments | ' | ||||||||||||||||||||
The following tables summarize the fair values of all financial instruments. | |||||||||||||||||||||
(In Millions) | March 31, 2014 | ||||||||||||||||||||
Book | Total | Fair Value | |||||||||||||||||||
Value | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Assets | |||||||||||||||||||||
Cash and Due from Banks | $ | 3,676.30 | $ | 3,676.30 | $ | 3,676.30 | $ | — | $ | — | |||||||||||
Federal Funds Sold and Resell Agreements | 510 | 510 | — | 510 | — | ||||||||||||||||
Interest-Bearing Deposits with Banks | 17,155.80 | 17,155.80 | — | 17,155.80 | — | ||||||||||||||||
Federal Reserve Deposits and Other Interest-Bearing | 12,211.00 | 12,211.00 | — | 12,211.00 | — | ||||||||||||||||
Securities | |||||||||||||||||||||
Available for Sale (1) | 29,540.60 | 29,540.60 | 2,414.70 | 27,027.40 | 98.5 | ||||||||||||||||
Held to Maturity | 4,211.70 | 4,209.20 | — | 4,209.20 | — | ||||||||||||||||
Trading Account | 1.5 | 1.5 | — | 1.5 | — | ||||||||||||||||
Loans (excluding Leases) | |||||||||||||||||||||
Held for Investment | 28,492.50 | 28,533.10 | — | — | 28,533.10 | ||||||||||||||||
Held for Sale | — | — | — | — | — | ||||||||||||||||
Client Security Settlement Receivables | 1,845.20 | 1,845.20 | — | 1,845.20 | — | ||||||||||||||||
Other Assets | |||||||||||||||||||||
Federal Reserve and Federal Home Loan Bank Stock | 194.7 | 194.7 | — | 194.7 | — | ||||||||||||||||
Community Development Investments | 216.3 | 219.9 | — | 219.9 | — | ||||||||||||||||
Employee Benefit and Deferred Compensation | 149.3 | 145.6 | 93.9 | 51.7 | — | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Deposits | |||||||||||||||||||||
Demand, Noninterest-Bearing, Savings and Money Market | $ | 36,668.80 | $ | 36,668.80 | $ | 36,668.80 | $ | — | $ | — | |||||||||||
Savings Certificates and Other Time | 2,034.50 | 2,036.60 | — | 2,036.60 | — | ||||||||||||||||
Non U.S. Offices Interest-Bearing | 47,564.40 | 47,564.40 | — | 47,564.40 | — | ||||||||||||||||
Federal Funds Purchased | 1,013.90 | 1,013.90 | — | 1,013.90 | — | ||||||||||||||||
Securities Sold under Agreements to Repurchase | 736.6 | 736.6 | — | 736.6 | — | ||||||||||||||||
Other Borrowings | 652.4 | 652.4 | — | 652.4 | — | ||||||||||||||||
Senior Notes | 1,996.70 | 2,020.10 | — | 2,020.10 | — | ||||||||||||||||
Long Term Debt (excluding Leases) | |||||||||||||||||||||
Subordinated Debt | 1,560.40 | 1,587.10 | — | 1,587.10 | — | ||||||||||||||||
Federal Home Loan Bank Borrowings | 135 | 135.7 | — | 135.7 | — | ||||||||||||||||
Floating Rate Capital Debt | 277.2 | 238.9 | — | 238.9 | — | ||||||||||||||||
Other Liabilities | |||||||||||||||||||||
Standby Letters of Credit | 57.6 | 57.6 | — | — | 57.6 | ||||||||||||||||
Loan Commitments | 33 | 33 | — | — | 33 | ||||||||||||||||
Derivative Instruments | |||||||||||||||||||||
Asset/Liability Management | |||||||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||
Assets | $ | 11.9 | $ | 11.9 | $ | — | $ | 11.9 | $ | — | |||||||||||
Liabilities | 23.7 | 23.7 | — | 23.7 | — | ||||||||||||||||
Interest Rate Contracts | |||||||||||||||||||||
Assets | 111.7 | 111.7 | — | 111.7 | — | ||||||||||||||||
Liabilities | 43.5 | 43.5 | — | 43.5 | — | ||||||||||||||||
Client-Related and Trading | |||||||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||
Assets | 1,854.20 | 1,854.20 | — | 1,854.20 | — | ||||||||||||||||
Liabilities | 1,866.70 | 1,866.70 | — | 1,866.70 | — | ||||||||||||||||
Interest Rate Contracts | |||||||||||||||||||||
Assets | 116.7 | 116.7 | — | 116.7 | — | ||||||||||||||||
Liabilities | 111.3 | 111.3 | — | 111.3 | — | ||||||||||||||||
-1 | Refer to the table located on page 33 for the disaggregation of available for sale securities. | ||||||||||||||||||||
(In Millions) | December 31, 2013 | ||||||||||||||||||||
Book | Total | Fair Value | |||||||||||||||||||
Value | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Assets | |||||||||||||||||||||
Cash and Due from Banks | $ | 3,162.40 | $ | 3,162.40 | $ | 3,162.40 | $ | – | $ | — | |||||||||||
Federal Funds Sold and Resell Agreements | 529.6 | 529.6 | — | 529.6 | — | ||||||||||||||||
Interest-Bearing Deposits with Banks | 19,397.40 | 19,397.40 | — | 19,397.40 | — | ||||||||||||||||
Federal Reserve Deposits and Other Interest-Bearing | 12,911.50 | 12,911.50 | — | 12,911.50 | — | ||||||||||||||||
Securities | |||||||||||||||||||||
Available for Sale (1) | 28,392.80 | 28,392.80 | 1,917.90 | 26,376.00 | 98.9 | ||||||||||||||||
Held to Maturity | 2,325.80 | 2,321.40 | — | 2,321.40 | — | ||||||||||||||||
Trading Account | 1.7 | 1.7 | — | 1.7 | — | ||||||||||||||||
Loans (excluding Leases) | |||||||||||||||||||||
Held for Investment | 28,136.50 | 28,147.20 | — | — | 28,147.20 | ||||||||||||||||
Held for Sale | — | — | — | — | — | ||||||||||||||||
Client Security Settlement Receivables | 1,355.20 | 1,355.20 | — | 1,355.20 | — | ||||||||||||||||
Other Assets | |||||||||||||||||||||
Federal Reserve and Federal Home Loan Bank Stock | 194.7 | 194.7 | — | 194.7 | — | ||||||||||||||||
Community Development Investments | 228.1 | 227.8 | — | 227.8 | — | ||||||||||||||||
Employee Benefit and Deferred Compensation | 132.7 | 126.9 | 79.3 | 47.6 | — | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Deposits | |||||||||||||||||||||
Demand, Noninterest-Bearing, Savings and Money Market | $ | 33,762.00 | $ | 33,762.00 | $ | 33,762.00 | $ | — | $ | — | |||||||||||
Savings Certificates and Other Time | 1,874.40 | 1,877.10 | — | 1,877.10 | — | ||||||||||||||||
Non U.S. Offices Interest-Bearing | 48,461.70 | 48,461.70 | — | 48,461.70 | — | ||||||||||||||||
Federal Funds Purchased | 965.1 | 965.1 | — | 965.1 | — | ||||||||||||||||
Securities Sold under Agreements to Repurchase | 917.3 | 917.3 | — | 917.3 | — | ||||||||||||||||
Other Borrowings | 1,558.60 | 1,558.60 | — | 1,558.60 | — | ||||||||||||||||
Senior Notes | 1,996.60 | 1,989.30 | — | 1,989.30 | — | ||||||||||||||||
Long Term Debt (excluding Leases) | |||||||||||||||||||||
Subordinated Debt | 1,537.30 | 1,563.50 | — | 1,563.50 | — | ||||||||||||||||
Federal Home Loan Bank Borrowings | 135 | 137.2 | — | 137.2 | — | ||||||||||||||||
Floating Rate Capital Debt | 277.1 | 230.2 | — | 230.2 | — | ||||||||||||||||
Other Liabilities | |||||||||||||||||||||
Standby Letters of Credit | 59.6 | 59.6 | — | — | 59.6 | ||||||||||||||||
Contingent Consideration | 55.4 | 55.4 | — | — | 55.4 | ||||||||||||||||
Loan Commitments | 35.7 | 35.7 | — | — | 35.7 | ||||||||||||||||
Derivative Instruments | |||||||||||||||||||||
Asset/Liability Management | |||||||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||
Assets | $ | 21 | $ | 21 | $ | — | $ | 21 | $ | — | |||||||||||
Liabilities | 59.5 | 59.5 | — | 59.5 | — | ||||||||||||||||
Interest Rate Swaps | |||||||||||||||||||||
Assets | 115.1 | 115.1 | — | 115.1 | — | ||||||||||||||||
Liabilities | 78.2 | 78.2 | — | 78.2 | — | ||||||||||||||||
Client-Related and Trading | |||||||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||
Assets | 2,844.70 | 2,844.70 | — | 2,844.70 | — | ||||||||||||||||
Liabilities | 2,846.20 | 2,846.20 | — | 2,846.20 | — | ||||||||||||||||
Interest Rate Contracts | |||||||||||||||||||||
Assets | 122.8 | 122.8 | — | 122.8 | — | ||||||||||||||||
Liabilities | 117 | 117 | — | 117 | — | ||||||||||||||||
-1 | Refer to the table located on page 34 for the disaggregation of available for sale securities. | ||||||||||||||||||||
Fair Value, Measurements, Recurring | ' | ||||||||||||||||||||
Valuation Techniques, Significant Unobservable Inputs, and Quantitative Information | ' | ||||||||||||||||||||
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 as of March 31, 2014. | |||||||||||||||||||||
Financial Instrument | Fair Value | Valuation Technique | Unobservable Input | Range of Lives and Rates | |||||||||||||||||
Auction Rate Securities | $98.5 million | Discounted Cash Flow | Remaining lives | 2.2 – 8.6 years | |||||||||||||||||
Discount rates | 0.2% – 7.8% | ||||||||||||||||||||
Fair Value, Measurements, Nonrecurring | ' | ||||||||||||||||||||
Valuation Techniques, Significant Unobservable Inputs, and Quantitative Information | ' | ||||||||||||||||||||
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, 2014. | |||||||||||||||||||||
Financial | Fair Value | Valuation | Unobservable Input | Range of | |||||||||||||||||
Instrument | Technique | Discounts | |||||||||||||||||||
Applied | |||||||||||||||||||||
Loans | $33.3 million | Market Approach | Discount to reflect realizable value | 15% – 40% | |||||||||||||||||
OREO | $1.5 million | Market Approach | Discount to reflect realizable value | 15% – 40% |
Securities_Tables
Securities (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Reconciliation of Amortized Cost to Fair Values of Securities Available for Sale | ' | ||||||||||||||||||||||||
The following tables provide the amortized cost and fair values of securities at March 31, 2014 and December 31, 2013. | |||||||||||||||||||||||||
Securities Available for Sale | March 31, 2014 | ||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||||
(In Millions) | Cost | Gains | Losses | Value | |||||||||||||||||||||
U.S. Government | $ | 2,396.00 | $ | 20.5 | $ | 1.8 | $ | 2,414.70 | |||||||||||||||||
Obligations of States and Political Subdivisions | 4.5 | 0.1 | — | 4.6 | |||||||||||||||||||||
Government Sponsored Agency | 18,131.40 | 65.1 | 45.7 | 18,150.80 | |||||||||||||||||||||
Corporate Debt | 3,661.90 | 5.3 | 41.2 | 3,626.00 | |||||||||||||||||||||
Covered Bonds | 1,965.20 | 13.7 | 0.4 | 1,978.50 | |||||||||||||||||||||
Supranational, Sovereign and Non-U.S. Agency Bonds | 719.9 | 2 | 1.4 | 720.5 | |||||||||||||||||||||
Residential Mortgage-Backed | 48.6 | 0.1 | 3 | 45.7 | |||||||||||||||||||||
Other Asset-Backed | 2,302.80 | 2 | 0.1 | 2,304.70 | |||||||||||||||||||||
Auction Rate | 97.3 | 2.1 | 0.9 | 98.5 | |||||||||||||||||||||
Other | 196.1 | 0.5 | — | 196.6 | |||||||||||||||||||||
Total | $ | 29,523.70 | $ | 111.4 | $ | 94.5 | $ | 29,540.60 | |||||||||||||||||
Securities Available for Sale | December 31, 2013 | ||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||||
(In Millions) | Cost | Gains | Losses | Value | |||||||||||||||||||||
U.S. Government | $ | 1,896.70 | $ | 22.6 | $ | 1.4 | $ | 1,917.90 | |||||||||||||||||
Obligations of States and Political Subdivisions | 4.5 | 0.1 | — | 4.6 | |||||||||||||||||||||
Government Sponsored Agency | 17,495.20 | 80.7 | 47.9 | 17,528.00 | |||||||||||||||||||||
Corporate Debt | 3,615.20 | 10.5 | 101.2 | 3,524.50 | |||||||||||||||||||||
Covered Bonds | 1,898.90 | 50.9 | 5.9 | 1,943.90 | |||||||||||||||||||||
Supranational, Sovereign and Non-U.S. Agency Bonds | 717 | 5.3 | 1.7 | 720.6 | |||||||||||||||||||||
Residential Mortgage-Backed | 52.4 | 0.1 | 4.4 | 48.1 | |||||||||||||||||||||
Other Asset-Backed | 2,390.80 | 1.4 | 0.4 | 2,391.80 | |||||||||||||||||||||
Auction Rate | 97.5 | 2.2 | 0.8 | 98.9 | |||||||||||||||||||||
Other | 214.1 | 0.4 | — | 214.5 | |||||||||||||||||||||
Total | $ | 28,382.30 | $ | 174.2 | $ | 163.7 | $ | 28,392.80 | |||||||||||||||||
Reconciliation of Amortized Cost to Fair Values of Securities Held to Maturity | ' | ||||||||||||||||||||||||
Securities Held to Maturity | March 31, 2014 | ||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||||
(In Millions) | Cost | Gains | Losses | Value | |||||||||||||||||||||
Obligations of States and Political Subdivisions | $ | 196.2 | $ | 9.7 | $ | — | $ | 205.9 | |||||||||||||||||
Government Sponsored Agency | 32.1 | 1.1 | — | 33.2 | |||||||||||||||||||||
Non-U.S. Government Debt | 176.1 | — | 0.1 | 176 | |||||||||||||||||||||
Certificates of Deposit | 1,531.80 | 0.1 | 0.1 | 1,531.80 | |||||||||||||||||||||
Supranational, Sovereign and Non-U.S. Agency Bonds | 2,217.50 | 3.8 | 6.3 | 2,215.00 | |||||||||||||||||||||
Other | 58 | 0.1 | 10.8 | 47.3 | |||||||||||||||||||||
Total | $ | 4,211.70 | $ | 14.8 | $ | 17.3 | $ | 4,209.20 | |||||||||||||||||
Securities Held to Maturity | December 31, 2013 | ||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||||
(In Millions) | Cost | Gains | Losses | Value | |||||||||||||||||||||
Obligations of States and Political Subdivisions | $ | 225.2 | $ | 10.3 | $ | — | $ | 235.5 | |||||||||||||||||
Government Sponsored Agency | 35.9 | 1.1 | — | 37 | |||||||||||||||||||||
Non-U.S. Government Debt | 197.3 | — | — | 197.3 | |||||||||||||||||||||
Certificates of Deposit | 698.1 | — | 0.2 | 697.9 | |||||||||||||||||||||
Supranational, Sovereign and Non-U.S. Agency Bonds | 1,109.40 | 0.8 | 4.3 | 1,105.90 | |||||||||||||||||||||
Other | 59.9 | 0.1 | 12.2 | 47.8 | |||||||||||||||||||||
Total | $ | 2,325.80 | $ | 12.3 | $ | 16.7 | $ | 2,321.40 | |||||||||||||||||
Securities Continuous Unrealized Loss Position | ' | ||||||||||||||||||||||||
The following tables provide information regarding securities that had been in a continuous unrealized loss position for less than 12 months and for 12 months or longer as of March 31, 2014 and December 31, 2013. | |||||||||||||||||||||||||
as of March 31, 2014 | Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
(In Millions) | Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
U.S. Government | $ | 1,195.60 | $ | 1.8 | $ | — | $ | — | $ | 1,195.60 | $ | 1.8 | |||||||||||||
Government Sponsored Agency | 6,055.60 | 33.6 | 913.1 | 12.1 | 6,968.70 | 45.7 | |||||||||||||||||||
Corporate Debt | 1,323.60 | 20.8 | 497 | 20.4 | 1,820.60 | 41.2 | |||||||||||||||||||
Covered Bonds | 190.1 | 0.2 | 9.9 | 0.2 | 200 | 0.4 | |||||||||||||||||||
Supranational, Sovereign and Non-U.S. Agency Bonds | 1,260.40 | 7.7 | — | — | 1,260.40 | 7.7 | |||||||||||||||||||
Residential Mortgage-Backed | — | — | 41 | 3 | 41 | 3 | |||||||||||||||||||
Other Asset-Backed | 187.4 | 0.1 | — | — | 187.4 | 0.1 | |||||||||||||||||||
Auction Rate | 23.2 | 0.2 | 13.7 | 0.7 | 36.9 | 0.9 | |||||||||||||||||||
Non-U.S. Government Debt | 148.9 | 0.1 | — | — | 148.9 | 0.1 | |||||||||||||||||||
Certificates of Deposit | 473.5 | 0.1 | — | — | 473.5 | 0.1 | |||||||||||||||||||
Other | 41.3 | 3.5 | 29 | 7.3 | 70.3 | 10.8 | |||||||||||||||||||
Total | $ | 10,899.60 | $ | 68.1 | $ | 1,503.70 | $ | 43.7 | $ | 12,403.30 | $ | 111.8 | |||||||||||||
Securities with Unrealized Losses | Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
as of December 31, 2013 | |||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
(In Millions) | Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
U.S. Government | $ | 896.4 | $ | 1.4 | $ | — | $ | — | $ | 896.4 | $ | 1.4 | |||||||||||||
Government Sponsored Agency | 4,340.80 | 42.6 | 413.7 | 5.3 | 4,754.50 | 47.9 | |||||||||||||||||||
Corporate Debt | 1,759.50 | 85.4 | 267 | 15.8 | 2,026.50 | 101.2 | |||||||||||||||||||
Covered Bonds | 278.8 | 5.7 | 9.9 | 0.2 | 288.7 | 5.9 | |||||||||||||||||||
Supranational, Sovereign and Non-U.S. Agency Bonds | 789.4 | 6 | — | — | 789.4 | 6 | |||||||||||||||||||
Residential Mortgage-Backed | — | — | 42 | 4.4 | 42 | 4.4 | |||||||||||||||||||
Other Asset-Backed | 677 | 0.4 | — | — | 677 | 0.4 | |||||||||||||||||||
Certificates of Deposit | 684.2 | 0.2 | — | — | 684.2 | 0.2 | |||||||||||||||||||
Auction Rate | 22.1 | 0.1 | 14 | 0.7 | 36.1 | 0.8 | |||||||||||||||||||
Other | 25.7 | 4 | 29.5 | 8.2 | 55.2 | 12.2 | |||||||||||||||||||
Total | $ | 9,473.90 | $ | 145.8 | $ | 776.1 | $ | 34.6 | $ | 10,250.00 | $ | 180.4 | |||||||||||||
Book Values, Ultimate Default Rates, and Loss Severity Rates for Non-Agency Residential Mortgage-Backed Securities Portfolio, by Security Type | ' | ||||||||||||||||||||||||
March 31, 2014 amortized cost, weighted average ultimate default rates, and impairment severity rates for the non-agency residential mortgage-backed securities portfolio, by security type, are provided in the following table. | |||||||||||||||||||||||||
($ In Millions) | March 31, 2014 | ||||||||||||||||||||||||
Loss Severity Rates | |||||||||||||||||||||||||
Security Type | Amortized | Weighted Average | Low | High | Weighted | ||||||||||||||||||||
Cost | Ultimate Default Rates | Average | |||||||||||||||||||||||
Prime | $ | 7.2 | 19.7 | % | 32.5 | % | 53.4 | % | 47 | % | |||||||||||||||
Alt-A | 11.8 | 40.1 | 64.7 | 64.7 | 64.7 | ||||||||||||||||||||
Subprime | 21.6 | 47.1 | 74 | 77.1 | 74.7 | ||||||||||||||||||||
2nd Lien | 8 | 32.3 | 98.9 | 99 | 99 | ||||||||||||||||||||
Total Non-Agency Residential Mortgage-Backed Securities | $ | 48.6 | 38.5 | % | 32.5 | % | 99 | % | 72.1 | % | |||||||||||||||
Credit Related Impairment Losses Recognized in Earnings on Other Than Temporarily Impaired Securities | ' | ||||||||||||||||||||||||
The table below provides information regarding total other-than-temporarily impaired securities, including noncredit-related amounts recognized in other comprehensive income and net impairment losses recognized in earnings, for the three months ended March 31, 2014 and 2013. | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||||||||||||||
Changes in OTTI Losses* | $ | (4.6 | ) | $ | — | ||||||||||||||||||||
Noncredit-related Losses Recorded in / (Reclassified from) OCI** | 0.7 | — | |||||||||||||||||||||||
Net Impairment Losses Recognized in Earnings | $ | (3.9 | ) | $ | — | ||||||||||||||||||||
* | For initial other-than-temporary impairments in the respective period, the balance includes the excess of the amortized cost over the fair value of the impaired securities. For subsequent impairments of the same security, the balance includes any additional changes in fair value of the security subsequent to its most recently recorded OTTI. | ||||||||||||||||||||||||
** | For initial other-than-temporary impairments in the respective period, the balance includes the portion of the excess of amortized cost over the fair value of the impaired securities that was recorded in OCI. For subsequent impairments of the same security, the balance includes additional changes in OCI for that security subsequent to its most recently recorded OTTI. | ||||||||||||||||||||||||
Cumulative Credit-Related Losses Recognized in Earnings on Debt Securities Other-Than-Temporarily Impaired | ' | ||||||||||||||||||||||||
Provided in the table below are the cumulative credit-related losses recognized in earnings on debt securities other-than-temporarily impaired. | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||||||||||||||
Cumulative Credit-Related Losses on Securities Held – Beginning of Period | $ | 8.8 | $ | 42.3 | |||||||||||||||||||||
Plus: Losses on Newly Identified Impairments | 1.8 | — | |||||||||||||||||||||||
Additional Losses on Previously Identified Impairments | 2.1 | — | |||||||||||||||||||||||
Less: Current and Prior Period Losses on Securities Sold During the Period | — | (33.5 | ) | ||||||||||||||||||||||
Cumulative Credit-Related Losses on Securities Held – End of Period | $ | 12.7 | $ | 8.8 | |||||||||||||||||||||
Debt Securities Held for which Other-Than-Temporary Impairment Loss has been Recognized in Current Period or Previously | ' | ||||||||||||||||||||||||
The table below provides information regarding debt securities held as of March 31, 2014 and December 31, 2013, for which an OTTI loss has been recognized in the current period or previously. | |||||||||||||||||||||||||
(In Millions) | March 31, | December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Fair Value | $ | 52.4 | $ | 38.3 | |||||||||||||||||||||
Amortized Cost Basis | 55.4 | 42.8 | |||||||||||||||||||||||
Noncredit-related Losses Recognized in OCI | (3.0 | ) | (4.5 | ) | |||||||||||||||||||||
Tax Effect | 1.1 | 1.7 | |||||||||||||||||||||||
Amount Recorded in OCI | $ | (1.9 | ) | $ | (2.8 | ) | |||||||||||||||||||
Available for Sale Investment Securities | ' | ||||||||||||||||||||||||
Remaining Maturity of Securities | ' | ||||||||||||||||||||||||
The following table provides the remaining maturity of securities as of March 31, 2014. | |||||||||||||||||||||||||
(In Millions) | Amortized | Fair Value | |||||||||||||||||||||||
Cost | |||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
Due in One Year or Less | $ | 9,112.90 | $ | 9,117.70 | |||||||||||||||||||||
Due After One Year Through Five Years | 15,997.90 | 16,023.60 | |||||||||||||||||||||||
Due After Five Years Through Ten Years | 2,946.90 | 2,937.80 | |||||||||||||||||||||||
Due After Ten Years | 1,466.00 | 1,461.50 | |||||||||||||||||||||||
Total | 29,523.70 | 29,540.60 | |||||||||||||||||||||||
Held-to-maturity Securities | ' | ||||||||||||||||||||||||
Remaining Maturity of Securities | ' | ||||||||||||||||||||||||
Held to Maturity | |||||||||||||||||||||||||
Due in One Year or Less | 1,897.90 | 1,900.90 | |||||||||||||||||||||||
Due After One Year Through Five Years | 2,256.40 | 2,257.50 | |||||||||||||||||||||||
Due After Five Years Through Ten Years | 25.3 | 25.9 | |||||||||||||||||||||||
Due After Ten Years | 32.1 | 24.9 | |||||||||||||||||||||||
Total | $ | 4,211.70 | $ | 4,209.20 | |||||||||||||||||||||
Note: | Mortgage-backed and asset-backed securities are included in the above table taking into account anticipated future prepayments. |
Loans_and_Leases_Tables
Loans and Leases (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||
Amounts Outstanding for Loans and Leases by Segment and Class | ' | ||||||||||||||||||||||||||||||||
Amounts outstanding for loans and leases, by segment and class, are shown below. | |||||||||||||||||||||||||||||||||
(In Millions) | March 31, | December 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and Institutional | $ | 7,738.20 | $ | 7,375.80 | |||||||||||||||||||||||||||||
Commercial Real Estate | 3,018.90 | 2,955.80 | |||||||||||||||||||||||||||||||
Lease Financing, net | 892.6 | 975.1 | |||||||||||||||||||||||||||||||
Non-U.S. | 1,349.70 | 954.7 | |||||||||||||||||||||||||||||||
Other | 281.3 | 358.6 | |||||||||||||||||||||||||||||||
Total Commercial | 13,280.70 | 12,620.00 | |||||||||||||||||||||||||||||||
Personal | |||||||||||||||||||||||||||||||||
Residential Real Estate | 10,093.90 | 10,271.30 | |||||||||||||||||||||||||||||||
Private Client | 6,247.80 | 6,445.60 | |||||||||||||||||||||||||||||||
Other | 38.4 | 48.6 | |||||||||||||||||||||||||||||||
Total Personal | 16,380.10 | 16,765.50 | |||||||||||||||||||||||||||||||
Total Loans and Leases | 29,660.80 | 29,385.50 | |||||||||||||||||||||||||||||||
Allowance for Credit Losses Assigned to Loans and Leases | (279.2 | ) | (278.1 | ) | |||||||||||||||||||||||||||||
Net Loans and Leases | $ | 29,381.60 | $ | 29,107.40 | |||||||||||||||||||||||||||||
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, 2014 and December 31, 2013 are provided below, segregated by borrower ratings into “1 to 3”, “4 to 5” and “6 to 9” (watch list), categories. | |||||||||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||
(In Millions) | 1 to 3 | 4 to 5 | 6 to 9 | Total | 1 to 3 | 4 to 5 | 6 to 9 | Total | |||||||||||||||||||||||||
Category | Category | Category | Category | Category | Category | ||||||||||||||||||||||||||||
(Watch List) | (Watch List) | ||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and Institutional | $ | 4,730.70 | $ | 2,860.40 | $ | 147.1 | $ | 7,738.20 | $ | 4,432.50 | $ | 2,801.50 | $ | 141.8 | $ | 7,375.80 | |||||||||||||||||
Commercial Real Estate | 1,150.60 | 1,709.70 | 158.6 | 3,018.90 | 1,053.70 | 1,748.70 | 153.4 | 2,955.80 | |||||||||||||||||||||||||
Lease Financing, net | 458.9 | 429.3 | 4.4 | 892.6 | 685.7 | 285 | 4.4 | 975.1 | |||||||||||||||||||||||||
Non-U.S. | 523.2 | 825.6 | 0.9 | 1,349.70 | 442.8 | 511.9 | — | 954.7 | |||||||||||||||||||||||||
Other | 172.7 | 108.6 | — | 281.3 | 157.7 | 200.9 | — | 358.6 | |||||||||||||||||||||||||
Total Commercial | 7,036.10 | 5,933.60 | 311 | 13,280.70 | 6,772.40 | 5,548.00 | 299.6 | 12,620.00 | |||||||||||||||||||||||||
Personal | |||||||||||||||||||||||||||||||||
Residential Real Estate | 3,124.30 | 6,473.60 | 496 | 10,093.90 | 3,204.60 | 6,563.60 | 503.1 | 10,271.30 | |||||||||||||||||||||||||
Private Client | 3,932.50 | 2,308.30 | 7 | 6,247.80 | 3,957.60 | 2,481.20 | 6.8 | 6,445.60 | |||||||||||||||||||||||||
Other | 23.4 | 15 | — | 38.4 | 21.2 | 27.4 | — | 48.6 | |||||||||||||||||||||||||
Total Personal | 7,080.20 | 8,796.90 | 503 | 16,380.10 | 7,183.40 | 9,072.20 | 509.9 | 16,765.50 | |||||||||||||||||||||||||
Total Loans and Leases | $ | 14,116.30 | $ | 14,730.50 | $ | 814 | $ | 29,660.80 | $ | 13,955.80 | $ | 14,620.20 | $ | 809.5 | $ | 29,385.50 | |||||||||||||||||
Balances and Delinquency Status of Performing and Nonperforming Loans and Leases by Segment and Class as well as Total Other Real Estate Owned 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 other real estate owned and nonperforming asset balances, as of March 31, 2014 and December 31, 2013. | |||||||||||||||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||||||||||||
(In Millions) | Current | 30-59 Days | 60-89 Days | 90 Days or | Total | Nonperforming | Total Loans | ||||||||||||||||||||||||||
Past Due | Past Due | More Past Due | Performing | and Leases | |||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and Institutional | $ | 7,700.80 | $ | 5.5 | $ | 4.2 | $ | 1.6 | $ | 7,712.10 | $ | 26.1 | $ | 7,738.20 | |||||||||||||||||||
Commercial Real Estate | 2,934.00 | 22.5 | 3.8 | 7 | 2,967.30 | 51.6 | 3,018.90 | ||||||||||||||||||||||||||
Lease Financing, net | 892.6 | — | — | — | 892.6 | — | 892.6 | ||||||||||||||||||||||||||
Non-U.S. | 1,349.70 | — | — | — | 1,349.70 | — | 1,349.70 | ||||||||||||||||||||||||||
Other | 281.3 | — | — | — | 281.3 | — | 281.3 | ||||||||||||||||||||||||||
Total Commercial | 13,158.40 | 28 | 8 | 8.6 | 13,203.00 | 77.7 | 13,280.70 | ||||||||||||||||||||||||||
Personal | |||||||||||||||||||||||||||||||||
Residential Real Estate | 9,841.00 | 65.7 | 3.2 | 3.1 | 9,913.00 | 180.9 | 10,093.90 | ||||||||||||||||||||||||||
Private Client | 6,206.80 | 30.9 | 8.2 | 0.6 | 6,246.50 | 1.3 | 6,247.80 | ||||||||||||||||||||||||||
Other | 38.4 | — | — | — | 38.4 | — | 38.4 | ||||||||||||||||||||||||||
Total Personal | 16,086.20 | 96.6 | 11.4 | 3.7 | 16,197.90 | 182.2 | 16,380.10 | ||||||||||||||||||||||||||
Total Loans and Leases | $ | 29,244.60 | $ | 124.6 | $ | 19.4 | $ | 12.3 | $ | 29,400.90 | $ | 259.9 | $ | 29,660.80 | |||||||||||||||||||
Other Real Estate Owned | 9.8 | ||||||||||||||||||||||||||||||||
Total Nonperforming Assets | $ | 269.7 | |||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||
(In Millions) | Current | 30-59 Days | 60-89 Days | 90 Days or | Total | Nonperforming | Total Loans | ||||||||||||||||||||||||||
Past Due | Past Due | More Past Due | Performing | and Leases | |||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and Institutional | $ | 7,332.30 | $ | 5 | $ | 12.1 | $ | 3.3 | $ | 7,352.70 | $ | 23.1 | $ | 7,375.80 | |||||||||||||||||||
Commercial Real Estate | 2,881.10 | 4.1 | 14.6 | 6.8 | 2,906.60 | 49.2 | 2,955.80 | ||||||||||||||||||||||||||
Lease Financing, net | 975.1 | — | — | — | 975.1 | — | 975.1 | ||||||||||||||||||||||||||
Non-U.S. | 954.7 | — | — | — | 954.7 | — | 954.7 | ||||||||||||||||||||||||||
Other | 358.6 | — | — | — | 358.6 | — | 358.6 | ||||||||||||||||||||||||||
Total Commercial | 12,501.80 | 9.1 | 26.7 | 10.1 | 12,547.70 | 72.3 | 12,620.00 | ||||||||||||||||||||||||||
Personal | |||||||||||||||||||||||||||||||||
Residential Real Estate | 9,934.40 | 129.3 | 15.6 | 2.9 | 10,082.20 | 189.1 | 10,271.30 | ||||||||||||||||||||||||||
Private Client | 6,404.20 | 29.1 | 7.5 | 3.4 | 6,444.20 | 1.4 | 6,445.60 | ||||||||||||||||||||||||||
Other | 48.6 | — | — | — | 48.6 | — | 48.6 | ||||||||||||||||||||||||||
Total Personal | 16,387.20 | 158.4 | 23.1 | 6.3 | 16,575.00 | 190.5 | 16,765.50 | ||||||||||||||||||||||||||
Total Loans and Leases | $ | 28,889.00 | $ | 167.5 | $ | 49.8 | $ | 16.4 | $ | 29,122.70 | $ | 262.8 | $ | 29,385.50 | |||||||||||||||||||
Other Real Estate Owned | 11.9 | ||||||||||||||||||||||||||||||||
Total Nonperforming Assets | $ | 274.7 | |||||||||||||||||||||||||||||||
Impaired Loans By Segment and Class | ' | ||||||||||||||||||||||||||||||||
The following tables provide information related to impaired loans by segment and class. | |||||||||||||||||||||||||||||||||
As of March 31, 2014 | As of December 31, 2013 | ||||||||||||||||||||||||||||||||
Unpaid | Unpaid | ||||||||||||||||||||||||||||||||
Recorded | Principal | Specific | Recorded | Principal | Specific | ||||||||||||||||||||||||||||
(In Millions) | Investment | Balance | Allowance | Investment | Balance | Allowance | |||||||||||||||||||||||||||
With No Related Specific Allowance | |||||||||||||||||||||||||||||||||
Commercial and Institutional | $ | 12.2 | $ | 15.4 | $ | — | $ | 12.2 | $ | 18.1 | $ | — | |||||||||||||||||||||
Commercial Real Estate | 49.8 | 58.1 | — | 46.6 | 57.1 | — | |||||||||||||||||||||||||||
Lease Financing, net | 4.4 | 4.4 | — | 4.4 | 4.4 | — | |||||||||||||||||||||||||||
Residential Real Estate | 190.7 | 237.3 | — | 185 | 227.8 | — | |||||||||||||||||||||||||||
Private Client | 0.5 | 0.5 | — | 0.8 | 0.8 | — | |||||||||||||||||||||||||||
With a Related Specific Allowance | |||||||||||||||||||||||||||||||||
Commercial and Institutional | 12.3 | 13 | 3.7 | 9.6 | 12.1 | 3.6 | |||||||||||||||||||||||||||
Commercial Real Estate | 27 | 33 | 6 | 26.7 | 31.5 | 4.5 | |||||||||||||||||||||||||||
Residential Real Estate | 5.1 | 5.3 | 1.7 | 8.1 | 8.7 | 2.3 | |||||||||||||||||||||||||||
Private Client | 0.4 | 0.4 | 0.4 | — | — | — | |||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||
Commercial | 105.7 | 123.9 | 9.7 | 99.5 | 123.2 | 8.1 | |||||||||||||||||||||||||||
Personal | 196.7 | 243.5 | 2.1 | 193.9 | 237.3 | 2.3 | |||||||||||||||||||||||||||
Total | $ | 302.4 | $ | 367.4 | $ | 11.8 | $ | 293.4 | $ | 360.5 | $ | 10.4 | |||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Average | Interest | Average | Interest | ||||||||||||||||||||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||||||||||||||||||||
(In Millions) | Investment | Recognized | Investment | Recognized | |||||||||||||||||||||||||||||
With No Related Specific Allowance | |||||||||||||||||||||||||||||||||
Commercial and Institutional | $ | 11.4 | $ | — | $ | 12.2 | $ | — | |||||||||||||||||||||||||
Commercial Real Estate | 44.8 | 0.3 | 39.6 | 0.2 | |||||||||||||||||||||||||||||
Lease Financing, net | 4.4 | 0.1 | 4.6 | — | |||||||||||||||||||||||||||||
Residential Real Estate | 189.2 | 0.6 | 141 | 0.5 | |||||||||||||||||||||||||||||
Private Client | 0.7 | — | 9.4 | 0.1 | |||||||||||||||||||||||||||||
With a Related Specific Allowance | |||||||||||||||||||||||||||||||||
Commercial and Institutional | 10 | — | 11 | — | |||||||||||||||||||||||||||||
Commercial Real Estate | 26.4 | — | 30.4 | — | |||||||||||||||||||||||||||||
Residential Real Estate | 7.1 | — | 9.8 | — | |||||||||||||||||||||||||||||
Private Client | 0.1 | — | 1.1 | — | |||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||
Commercial | 97 | 0.4 | 97.8 | 0.2 | |||||||||||||||||||||||||||||
Personal | 197.1 | 0.6 | 161.3 | 0.6 | |||||||||||||||||||||||||||||
Total | $ | 294.1 | $ | 1 | $ | 259.1 | $ | 0.8 | |||||||||||||||||||||||||
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 period ended March 31, 2014 and 2013, and the recorded investments and unpaid principal balances as of March 31, 2014 and 2013. | |||||||||||||||||||||||||||||||||
($ In Millions) | Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||||||||
Number of | Recorded | Unpaid Principal | |||||||||||||||||||||||||||||||
Loans and Leases | Investment | Balance | |||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial Real Estate | 1 | $ | 0.7 | $ | 0.7 | ||||||||||||||||||||||||||||
Total Commercial | 1 | 0.7 | 0.7 | ||||||||||||||||||||||||||||||
Personal | |||||||||||||||||||||||||||||||||
Residential Real Estate | 34 | 3.5 | 3.8 | ||||||||||||||||||||||||||||||
Private Client | 1 | — | — | ||||||||||||||||||||||||||||||
Total Personal | 35 | 3.5 | 3.8 | ||||||||||||||||||||||||||||||
Total Loans and Leases | 36 | $ | 4.2 | $ | 4.5 | ||||||||||||||||||||||||||||
Note: Period end balances reflect all paydowns and charge-offs during the period. | |||||||||||||||||||||||||||||||||
($ In Millions) | Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, 2013 | |||||||||||||||||||||||||||||||||
Number of | Recorded | Unpaid Principal | |||||||||||||||||||||||||||||||
Loans and Leases | Investment | Balance | |||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and Institutional | 7 | $ | 2.5 | $ | 3.1 | ||||||||||||||||||||||||||||
Commercial Real Estate | 1 | 0.1 | 0.1 | ||||||||||||||||||||||||||||||
Total Commercial | 8 | 2.6 | 3.2 | ||||||||||||||||||||||||||||||
Personal | |||||||||||||||||||||||||||||||||
Residential Real Estate | 48 | 41.7 | 43.1 | ||||||||||||||||||||||||||||||
Private Client | 5 | 12.8 | 12.8 | ||||||||||||||||||||||||||||||
Total Personal | 53 | 54.5 | 55.9 | ||||||||||||||||||||||||||||||
Total Loans and Leases | 61 | $ | 57.1 | $ | 59.1 | ||||||||||||||||||||||||||||
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, 2014 | |||||||||||||||||||||||||
Changes in Allowance for Credit Losses by Segment | ' | ||||||||||||||||||||||||
The following tables provide information regarding changes in the total allowance for credit losses by segment during the three months ended March 31, 2014 and 2013. | |||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(In Millions) | Commercial | Personal | Total | Commercial | Personal | Total | |||||||||||||||||||
Balance at Beginning of Period | $ | 168 | $ | 139.9 | $ | 307.9 | $ | 194.2 | $ | 133.4 | $ | 327.6 | |||||||||||||
Charge-Offs | (4.2 | ) | (7.3 | ) | (11.5 | ) | (0.9 | ) | (11.7 | ) | (12.6 | ) | |||||||||||||
Recoveries | 8.5 | 1.5 | 10 | 1.8 | 2.1 | 3.9 | |||||||||||||||||||
Net (Charge-Offs) Recoveries | 4.3 | (5.8 | ) | (1.5 | ) | 0.9 | (9.6 | ) | (8.7 | ) | |||||||||||||||
Provision for Credit Losses | 0.8 | 2.2 | 3 | (7.9 | ) | 12.9 | 5 | ||||||||||||||||||
Effect of Foreign Exchange Rates | — | — | — | (0.1 | ) | — | (0.1 | ) | |||||||||||||||||
Balance at End of Period | $ | 173.1 | $ | 136.3 | $ | 309.4 | $ | 187.1 | $ | 136.7 | $ | 323.8 | |||||||||||||
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, 2014 and December 31, 2013. | |||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
(In Millions) | Commercial | Personal | Total | Commercial | Personal | Total | |||||||||||||||||||
Loans and Leases | |||||||||||||||||||||||||
Specifically Evaluated for Impairment | $ | 105.7 | $ | 196.7 | $ | 302.4 | $ | 99.5 | $ | 193.9 | $ | 293.4 | |||||||||||||
Evaluated for Inherent Impairment | 13,175.00 | 16,183.40 | 29,358.40 | 12,520.50 | 16,571.60 | 29,092.10 | |||||||||||||||||||
Total Loans and Leases | 13,280.70 | 16,380.10 | 29,660.80 | 12,620.00 | 16,765.50 | 29,385.50 | |||||||||||||||||||
Allowance for Loans and Leases | |||||||||||||||||||||||||
Specifically Evaluated for Impairment | 9.7 | 2.1 | 11.8 | 8.1 | 2.3 | 10.4 | |||||||||||||||||||
Evaluated for Inherent Impairment | 136.4 | 131 | 267.4 | 132.8 | 134.9 | 267.7 | |||||||||||||||||||
Allowance Assigned to Loans and Leases | 146.1 | 133.1 | 279.2 | 140.9 | 137.2 | 278.1 | |||||||||||||||||||
Allowance for Unfunded Exposures | |||||||||||||||||||||||||
Commitments and Standby Letters of Credit | 27 | 3.2 | 30.2 | 27.1 | 2.7 | 29.8 | |||||||||||||||||||
Total Allowance for Credit Losses | $ | 173.1 | $ | 136.3 | $ | 309.4 | $ | 168 | $ | 139.9 | $ | 307.9 | |||||||||||||
Goodwill_and_Other_Intangibles1
Goodwill and Other Intangibles (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Carrying Amounts of Goodwill | ' | ||||||||
The carrying amounts of goodwill, reflecting the effect of foreign exchange rates on non-U.S. dollar denominated balances, by business unit at March 31, 2014 and December 31, 2013 were as follows: | |||||||||
(In Millions) | March 31, | December 31, | |||||||
2014 | 2013 | ||||||||
Corporate & Institutional Services | $ | 470.1 | $ | 469.2 | |||||
Wealth Management | 71.5 | 71.5 | |||||||
Total Goodwill | $ | 541.6 | $ | 540.7 | |||||
Other Intangible Assets Subject to Amortization | ' | ||||||||
The gross carrying amount and accumulated amortization of other intangible assets subject to amortization as of March 31, 2014 and December 31, 2013 were as follows: | |||||||||
(In Millions) | March 31, | December 31, | |||||||
2014 | 2013 | ||||||||
Gross Carrying Amount | $ | 198.7 | $ | 198.2 | |||||
Less: Accumulated Amortization | 120.5 | 115.2 | |||||||
Net Book Value | $ | 78.2 | $ | 83 | |||||
Business_Units_Tables
Business Units (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||
Earnings Contribution of Northern Trust's Business Units | ' | ||||||||||||||||||||||||||||||||
The following tables show the earnings contributions of Northern Trust’s business units for the three month periods ended March 31, 2014 and 2013. | |||||||||||||||||||||||||||||||||
Three Months Ended | Corporate & | Wealth | Treasury and | Total | |||||||||||||||||||||||||||||
March 31, | Institutional | Management | Other | Consolidated | |||||||||||||||||||||||||||||
Services | |||||||||||||||||||||||||||||||||
($ In Millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Noninterest Income | |||||||||||||||||||||||||||||||||
Trust, Investment and Other Servicing Fees | $ | 379.2 | $ | 348.7 | $ | 300.3 | $ | 282 | $ | — | $ | — | $ | 679.5 | $ | 630.7 | |||||||||||||||||
Foreign Exchange Trading Income | 48.1 | 58.2 | 2 | 1.3 | — | — | 50.1 | 59.5 | |||||||||||||||||||||||||
Other Noninterest Income | 44.4 | 40.2 | 22.7 | 17.2 | (1.9 | ) | 2.7 | 65.2 | 60.1 | ||||||||||||||||||||||||
Net Interest Income (FTE)* | 73.7 | 64.1 | 135 | 147.8 | 45.7 | 21.8 | 254.4 | 233.7 | |||||||||||||||||||||||||
Revenue* | 545.4 | 511.2 | 460 | 448.3 | 43.8 | 24.5 | 1,049.20 | 984 | |||||||||||||||||||||||||
Provision for Credit Losses | 1.2 | (2.7 | ) | 1.8 | 7.7 | — | — | 3 | 5 | ||||||||||||||||||||||||
Noninterest Expense | 423.5 | 398.7 | 318.8 | 301.8 | 25.7 | 28.4 | 768 | 728.9 | |||||||||||||||||||||||||
Income (Loss) before Income Taxes* | 120.7 | 115.2 | 139.4 | 138.8 | 18.1 | (3.9 | ) | 278.2 | 250.1 | ||||||||||||||||||||||||
Provision (Benefit) for Income Taxes* | 34.8 | 35.9 | 52.6 | 52.8 | 9.4 | (2.6 | ) | 96.8 | 86.1 | ||||||||||||||||||||||||
Net Income | $ | 85.9 | $ | 79.3 | $ | 86.8 | $ | 86 | $ | 8.7 | $ | (1.3 | ) | $ | 181.4 | $ | 164 | ||||||||||||||||
Percentage of Consolidated Net Income | 47 | % | 48 | % | 48 | % | 52 | % | 5 | % | N/M | 100 | % | 100 | % | ||||||||||||||||||
Average Assets | $ | 57,252.40 | $ | 51,316.80 | $ | 22,528.70 | $ | 22,861.40 | $ | 20,462.40 | $ | 17,391.10 | $ | 100,243.50 | $ | 91,569.30 | |||||||||||||||||
* | Stated on a fully taxable equivalent basis (FTE). Total consolidated includes FTE adjustments of $8.7 million for 2014 and $7.6 million for 2013. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Components of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||||||||||
The following tables summarize the components of accumulated other comprehensive income (loss) at March 31, 2014 and 2013, and changes during the three month periods then ended. | |||||||||||||||||||||||||
(In Millions) | Balance at | Net Change | Balance at | ||||||||||||||||||||||
December 31, | March 31, | ||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||
Net Unrealized Gains (Losses) on Securities Available for Sale | $ | 6 | $ | 4.5 | $ | 10.5 | |||||||||||||||||||
Net Unrealized Gains (Losses) on Cash Flow Hedges | 2.9 | 1.6 | 4.5 | ||||||||||||||||||||||
Net Foreign Currency Adjustments | 7.1 | (1.3 | ) | 5.8 | |||||||||||||||||||||
Net Pension and Other Postretirement Benefit Adjustments | (260.3 | ) | 3.4 | (256.9 | ) | ||||||||||||||||||||
Total | $ | (244.3 | ) | $ | 8.2 | $ | (236.1 | ) | |||||||||||||||||
(In Millions) | Balance at | Net Change | Balance at | ||||||||||||||||||||||
December 31, | March 31, | ||||||||||||||||||||||||
2012 | 2013 | ||||||||||||||||||||||||
Net Unrealized Gains (Losses) on Securities Available for Sale | $ | 101 | $ | 1.3 | $ | 102.3 | |||||||||||||||||||
Net Unrealized Gains (Losses) on Cash Flow Hedges | (1.4 | ) | (5.2 | ) | (6.6 | ) | |||||||||||||||||||
Net Foreign Currency Adjustments | 10.5 | (4.2 | ) | 6.3 | |||||||||||||||||||||
Net Pension and Other Postretirement Benefit Adjustments | (393.1 | ) | 7 | (386.1 | ) | ||||||||||||||||||||
Total | $ | (283.0 | ) | $ | (1.1 | ) | $ | (284.1 | ) | ||||||||||||||||
Components of Changes in Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(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 | $ | 1.5 | $ | (0.6 | ) | $ | 0.9 | $ | 2.1 | $ | (0.8 | ) | $ | 1.3 | |||||||||||
Other Unrealized Gains (Losses) on Securities Available for Sale | 5.7 | (2.2 | ) | 3.5 | 0.2 | (0.1 | ) | 0.1 | |||||||||||||||||
Reclassification Adjustment for (Gains) Losses Included in Net Income | 0.1 | — | 0.1 | (0.2 | ) | 0.1 | (0.1 | ) | |||||||||||||||||
Net Change | 7.3 | (2.8 | ) | 4.5 | 2.1 | (0.8 | ) | 1.3 | |||||||||||||||||
Unrealized Gains (Losses) on Cash Flow Hedges | |||||||||||||||||||||||||
Unrealized Gains (Losses) on Cash Flow Hedges | 2.4 | (0.9 | ) | 1.5 | (9.2 | ) | 2.9 | (6.3 | ) | ||||||||||||||||
Reclassification Adjustment for (Gains) Losses Included in Net Income | 0.2 | (0.1 | ) | 0.1 | 1.8 | (0.7 | ) | 1.1 | |||||||||||||||||
Net Change | 2.6 | (1.0 | ) | 1.6 | (7.4 | ) | 2.2 | (5.2 | ) | ||||||||||||||||
Foreign Currency Adjustments | |||||||||||||||||||||||||
Foreign Currency Translation Adjustments | 6.5 | (0.7 | ) | 5.8 | (56.4 | ) | 0.5 | (55.9 | ) | ||||||||||||||||
Long-Term Intra-Entity Foreign Currency Transaction Losses | (0.6 | ) | — | (0.6 | ) | — | — | — | |||||||||||||||||
Net Investment Hedge Gains (Losses) | (10.6 | ) | 4.1 | (6.5 | ) | 82.8 | (31.1 | ) | 51.7 | ||||||||||||||||
Reclassification Adjustment for (Gains) Losses Included in Net Income | — | — | — | — | — | — | |||||||||||||||||||
Net Change | (4.7 | ) | 3.4 | (1.3 | ) | 26.4 | (30.6 | ) | (4.2 | ) | |||||||||||||||
Pension and Other Postretirement Benefit Adjustments | |||||||||||||||||||||||||
Net Actuarial Gain (Loss) | — | — | — | — | — | — | |||||||||||||||||||
Reclassification Adjustment for (Gains) Losses Included in Net Income | 6.4 | (3.0 | ) | 3.4 | 11.2 | (4.2 | ) | 7 | |||||||||||||||||
Net Change | $ | 6.4 | $ | (3.0 | ) | $ | 3.4 | $ | 11.2 | $ | (4.2 | ) | $ | 7 | |||||||||||
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||||||||||
The following table provides the location and before-tax amounts of reclassifications out of accumulated other comprehensive income (loss) during the three months ended March 31, 2014. | |||||||||||||||||||||||||
(In Millions) | Location of Reclassification Adjustments | Amount of Reclassification | |||||||||||||||||||||||
Recognized in Income | Adjustments Recognized | ||||||||||||||||||||||||
in Income for the | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||||
Securities Available for Sale | |||||||||||||||||||||||||
Realized (Gains) Losses on Securities Available for Sale | Investment Security Gains (Losses), net | $ | 0.1 | ||||||||||||||||||||||
Realized (Gains) Losses on Cash Flow Hedges | |||||||||||||||||||||||||
Foreign Exchange Contracts | Other Operating Income/ Expense | 0.2 | |||||||||||||||||||||||
Pension and Other Postretirement Benefit Adjustments | |||||||||||||||||||||||||
Amortization of Net Actuarial (Gain) Loss | Employee Benefits | (0.4 | ) | ||||||||||||||||||||||
Amortization of Prior Service Cost | Employee Benefits | 6.8 | |||||||||||||||||||||||
Gross Reclassification Adjustment | $ | 6.4 | |||||||||||||||||||||||
Net_Income_Per_Common_Share_Co1
Net Income Per Common Share Computations (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Computations of Net Income per Common Share | ' | ||||||||
The computations of net income per common share are presented in the following table. | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
($ In Millions Except Per Common Share Information) | 2014 | 2013 | |||||||
Basic Net Income Per Common Share | |||||||||
Average Number of Common Shares Outstanding | 237,208,151 | 239,167,559 | |||||||
Net Income Applicable to Common Stock | $ | 181.4 | $ | 164 | |||||
Less: Earnings Allocated to Participating Securities | 2.9 | 2.5 | |||||||
Earnings Allocated to Common Shares Outstanding | 178.5 | 161.5 | |||||||
Basic Net Income Per Common Share | 0.75 | 0.68 | |||||||
Diluted Net Income Per Common Share | |||||||||
Average Number of Common Shares Outstanding | 237,208,151 | 239,167,559 | |||||||
Plus: Dilutive Effect of Share-based Compensation | 1,842,563 | 1,021,656 | |||||||
Average Common and Potential Common Shares | 239,050,714 | 240,189,215 | |||||||
Earnings Allocated to Common and Potential Common Shares | $ | 178.5 | $ | 161.5 | |||||
Diluted Net Income Per Common Share | 0.75 | 0.67 | |||||||
Net_Interest_Income_Tables
Net Interest Income (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Components of Net Interest Income | ' | ||||||||
12 | Net Interest Income – The components of net interest income were as follows: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
(In Millions) | 2014 | 2013 | |||||||
Interest Income | |||||||||
Loans and Leases | $ | 182.9 | $ | 187.6 | |||||
Securities – Taxable | 69.5 | 58.2 | |||||||
– Non-Taxable | 2.2 | 3.3 | |||||||
Interest-Bearing Deposits with Banks | 32.1 | 35 | |||||||
Federal Reserve Deposits and Other | 8.7 | 2.6 | |||||||
Total Interest Income | 295.4 | 286.7 | |||||||
Interest Expense | |||||||||
Deposits | 20.1 | 29.1 | |||||||
Federal Funds Purchased | 0.3 | 0.3 | |||||||
Securities Sold Under Agreements to Repurchase | 0.1 | 0.1 | |||||||
Other Borrowings | 0.7 | 0.7 | |||||||
Senior Notes | 17.5 | 19.2 | |||||||
Long-Term Debt | 10.4 | 10.6 | |||||||
Floating Rate Capital Debt | 0.6 | 0.6 | |||||||
Total Interest Expense | 49.7 | 60.6 | |||||||
Net Interest Income | $ | 245.7 | $ | 226.1 | |||||
Pension_and_Other_Postretireme1
Pension and Other Postretirement Plans (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
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 other postretirement plan for the three months ended March 31, 2014 and 2013. | |||||||||
Net Periodic Pension Expense | Three Months Ended | ||||||||
U.S. Plan | March 31, | ||||||||
(In Millions) | 2014 | 2013 | |||||||
Service Cost | $ | 8.2 | $ | 7.6 | |||||
Interest Cost | 11.1 | 10.5 | |||||||
Expected Return on Plan Assets | (24.4 | ) | (23.1 | ) | |||||
Amortization | |||||||||
Net Actuarial Loss | (0.1 | ) | 10.4 | ||||||
Prior Service Cost | 5.4 | (0.1 | ) | ||||||
Net Periodic Pension Expense | $ | 0.2 | $ | 5.3 | |||||
Net Periodic Pension Expense | Three Months Ended | ||||||||
Non U.S. Plans | March 31, | ||||||||
(In Millions) | 2014 | 2013 | |||||||
Interest Cost | $ | 1.7 | $ | 1.7 | |||||
Expected Return on Plan Assets | (1.7 | ) | (1.5 | ) | |||||
Net Actuarial Loss Amortization | (0.4 | ) | 0.1 | ||||||
Net Periodic Pension Expense | $ | (0.4 | ) | $ | 0.3 | ||||
Net Periodic Pension Expense | Three Months Ended | ||||||||
Supplemental Plan | March 31, | ||||||||
(In Millions) | 2014 | 2013 | |||||||
Service Cost | $ | 0.8 | $ | 0.4 | |||||
Interest Cost | 1.2 | 1.1 | |||||||
Amortization | |||||||||
Net Actuarial Loss | 0.1 | 1.7 | |||||||
Prior Service Cost | 1.5 | 0.1 | |||||||
Net Periodic Pension Expense | $ | 3.6 | $ | 3.3 | |||||
Net Periodic Postretirement Benefit | Three Months Ended | ||||||||
Other Postretirement Plan | March 31, | ||||||||
(In Millions) | 2014 | 2013 | |||||||
Service Cost | $ | — | $ | — | |||||
Interest Cost | 0.4 | 0.3 | |||||||
Amortization | |||||||||
Net Actuarial Gain | — | (0.3 | ) | ||||||
Prior Service Cost | (0.1 | ) | (0.7 | ) | |||||
Net Periodic Postretirement Benefit | $ | 0.3 | $ | (0.7 | ) | ||||
ShareBased_Compensation_Plans_
Share-Based Compensation Plans (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
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, 2014 and 2013. | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
(In Millions) | 2014 | 2013 | |||||||
Restricted Stock Unit Awards | $ | 14.1 | $ | 12.4 | |||||
Stock Options | 6.4 | 6.9 | |||||||
Performance Stock Units | 2.6 | 1.2 | |||||||
Total Share-Based Compensation Expense | 23.1 | 20.5 | |||||||
Tax Benefits Recognized | $ | 8.7 | $ | 7.7 | |||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||
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 sheet. 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. | |||||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||
Notional | Fair Value | Notional | Fair Value | ||||||||||||||||||||||||||
(In Millions) | Value | Asset | Liability | Value | Asset | Liability | |||||||||||||||||||||||
Foreign Exchange Contracts | $ | 239,970.00 | $ | 1,854.20 | $ | 1,866.70 | $ | 243,135.00 | $ | 2,844.70 | $ | 2,846.20 | |||||||||||||||||
Interest Rate Contracts | 5,139.70 | 116.7 | 111.3 | 5,001.70 | 122.8 | 117 | |||||||||||||||||||||||
Total | $ | 245,109.70 | $ | 1,970.90 | $ | 1,978.00 | $ | 248,136.70 | $ | 2,967.50 | $ | 2,963.20 | |||||||||||||||||
Location and Amount of Gains and Losses Recorded in Consolidated Statement of Income | ' | ||||||||||||||||||||||||||||
The following table shows the location and amount of gains and losses recorded in the consolidated statement of income for the three months ended March 31, 2014 and 2013. | |||||||||||||||||||||||||||||
Location of Derivative Gain/(Loss) | Amount of Derivative | ||||||||||||||||||||||||||||
Recognized in Income | Gain/(Loss) Recognized in | ||||||||||||||||||||||||||||
Income | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||||||||||||||||||
Foreign Exchange Contracts | Foreign Exchange Trading Income | $ | 50.1 | $ | 59.5 | ||||||||||||||||||||||||
Interest Rate Contracts | Security Commissions and Trading Income | 1.9 | 3.3 | ||||||||||||||||||||||||||
Total | $ | 52 | $ | 62.8 | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||
Derivative | Risk | Notional | Fair Value | Notional | Fair Value | ||||||||||||||||||||||||
(In Millions) | Instrument | Classification | Value | Asset | Liability | Value | Asset | Liability | |||||||||||||||||||||
Fair Value Hedges | |||||||||||||||||||||||||||||
Available for Sale Investment Securities | Interest Rate | Interest | $ | 3,219.40 | $ | 24.7 | $ | 35.2 | $ | 3,296.90 | $ | 31.5 | $ | 44.8 | |||||||||||||||
Swap Contracts | Rate | ||||||||||||||||||||||||||||
Senior Notes and Long- Term Subordinated Debt | Interest Rate | Interest | 1,250.00 | 87 | 8.3 | 1,250.00 | 83.6 | 33.4 | |||||||||||||||||||||
Swap Contracts | Rate | ||||||||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||||||||
Forecasted Foreign Currency Denominated Transactions | Foreign Exchange | Foreign | 322.2 | 10.3 | 3 | 314 | 10.2 | 5.5 | |||||||||||||||||||||
Contracts | Currency | ||||||||||||||||||||||||||||
Net Investment Hedges | |||||||||||||||||||||||||||||
Net Investments in Non-U.S. Affiliates | Foreign Exchange | Foreign | 1,763.20 | 0.9 | 19.4 | 1,684.90 | 9.8 | 52.8 | |||||||||||||||||||||
Contracts | Currency | ||||||||||||||||||||||||||||
Total | $ | 6,554.80 | $ | 122.9 | $ | 65.9 | $ | 6,545.80 | $ | 135.1 | $ | 136.5 | |||||||||||||||||
Gains/Losses of Derivative Financial Instruments | ' | ||||||||||||||||||||||||||||
The following table shows the location and amount of derivative gains and losses recorded in the consolidated statement of income related to fair value hedges for the three months ended March 31, 2014 and 2013. | |||||||||||||||||||||||||||||
Amount of Derivative | |||||||||||||||||||||||||||||
Gain/(Loss) Recognized in | |||||||||||||||||||||||||||||
Income | |||||||||||||||||||||||||||||
Location of Derivative | Three Months Ended | ||||||||||||||||||||||||||||
Derivative | Gain/(Loss) | March 31, | |||||||||||||||||||||||||||
(In Millions) | Instrument | Recognized in Income | 2014 | 2013 | |||||||||||||||||||||||||
Available for Sale Investment Securities | Interest Rate | Interest | $ | (12.1 | ) | $ | 3.4 | ||||||||||||||||||||||
Swap Contracts | Income | ||||||||||||||||||||||||||||
Senior Notes and Long-Term Subordinated Debt | Interest Rate | Interest | 32.5 | (0.7 | ) | ||||||||||||||||||||||||
Swap Contracts | Expense | ||||||||||||||||||||||||||||
Total | $ | 20.4 | $ | 2.7 | |||||||||||||||||||||||||
Cash Flow Hedge Derivative Gains and Losses Recognized in AOCI and the Amounts Reclassified to Earnings | ' | ||||||||||||||||||||||||||||
The following tables provide cash flow hedge derivative gains and losses recognized in AOCI and the amounts reclassified to earnings during the three months ended March 31, 2014 and 2013. | |||||||||||||||||||||||||||||
Foreign Exchange | |||||||||||||||||||||||||||||
(In Millions) | Contracts (Before Tax) | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
Net Gain/(Loss) Recognized in AOCI | $ | 2.4 | $ | (9.2 | ) | ||||||||||||||||||||||||
Net Gain/(Loss) Reclassified from AOCI to Earnings | |||||||||||||||||||||||||||||
Other Operating Income | 0.8 | (0.7 | ) | ||||||||||||||||||||||||||
Other Operating Expense | (0.2 | ) | (1.1 | ) | |||||||||||||||||||||||||
Total | $ | 0.6 | $ | (1.8 | ) | ||||||||||||||||||||||||
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, 2014 and 2013. | |||||||||||||||||||||||||||||
Hedging Gain/(Loss) | |||||||||||||||||||||||||||||
Recognized in OCI (Before Tax) | |||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
(In Millions) | 2014 | 2013 | |||||||||||||||||||||||||||
Foreign Exchange Contracts | $ | (9.0 | ) | $ | 66.3 | ||||||||||||||||||||||||
Sterling Denominated Subordinated Debt | (1.6 | ) | 16.5 | ||||||||||||||||||||||||||
Total | $ | (10.6 | ) | $ | 82.8 | ||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||
(In Millions) | March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||
Notional | Fair Value | Notional | Fair Value | ||||||||||||||||||||||||||
Value | Asset | Liability | Value | Asset | Liability | ||||||||||||||||||||||||
Foreign Exchange Contracts | $ | 182.6 | $ | 0.7 | $ | 1.3 | $ | 168.8 | $ | 1 | $ | 1.2 | |||||||||||||||||
Gains/Losses of Derivative Financial Instruments | ' | ||||||||||||||||||||||||||||
The following table provides the location and amount of gains and losses recorded in the consolidated statement of income for the three months ended March 31, 2014 and 2013. | |||||||||||||||||||||||||||||
Location of | Amount of Derivative Gain/(Loss) | ||||||||||||||||||||||||||||
Recognized in Income | |||||||||||||||||||||||||||||
Derivative Gain/ | Three Months Ended | ||||||||||||||||||||||||||||
(Loss) Recognized | March 31, | ||||||||||||||||||||||||||||
(In Millions) | in Income | 2014 | 2013 | ||||||||||||||||||||||||||
Credit Default Swap Contracts | Other Operating Income | $ | — | $ | (0.1 | ) | |||||||||||||||||||||||
Foreign Exchange Contracts | Other Operating Income | (0.7 | ) | (2.9 | ) | ||||||||||||||||||||||||
Total | $ | (0.7 | ) | $ | (3.0 | ) | |||||||||||||||||||||||
Offsetting_of_Assets_and_Liabi1
Offsetting of Assets and Liabilities (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Securities Purchased Under Agreements to Resell and Derivative Assets in the Consolidated Balance Sheet | ' | ||||||||||||||||||||
The following tables provide information regarding the offsetting of derivative assets and securities purchased under agreements to resell within the consolidated balance sheet as of March 31, 2014 and December 31, 2013. | |||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||
(In Millions) | Gross | Gross | Net | Gross | Net | ||||||||||||||||
Recognized | Amounts | Amounts | Amounts | Amount (3) | |||||||||||||||||
Assets | Offset | Presented | Not Offset | ||||||||||||||||||
Derivative Assets (1) | |||||||||||||||||||||
Foreign Exchange Contracts Over the Counter (OTC) | $ | 1,577.10 | $ | 965.7 | $ | 611.4 | $ | — | $ | 611.4 | |||||||||||
Interest Rate Swaps OTC | 217.9 | 41.7 | 176.2 | — | 176.2 | ||||||||||||||||
Interest Rate Swaps Exchange Cleared | 10.5 | 5.7 | 4.8 | — | 4.8 | ||||||||||||||||
Cross Product Netting Adjustment | — | 67 | — | — | — | ||||||||||||||||
Cross Product Collateral Adjustment | — | 313.6 | — | — | — | ||||||||||||||||
Total Derivatives Subject to a Master Netting Arrangement | 1,805.50 | 1,393.70 | 411.8 | — | 411.8 | ||||||||||||||||
Total Derivatives Not Subject to a Master Netting Arrangement | 289 | — | 289 | — | 289 | ||||||||||||||||
Total Derivatives | 2,094.50 | 1,393.70 | 700.8 | — | 700.8 | ||||||||||||||||
Securities Purchased under Agreements to Resell (2) | $ | 500 | $ | — | $ | 500 | $ | 500 | $ | — | |||||||||||
December 31, 2013 | |||||||||||||||||||||
(In Millions) | Gross | Gross | Net | Gross | Net | ||||||||||||||||
Recognized | Amounts | Amounts | Amounts | Amount (3) | |||||||||||||||||
Assets | Offset | Presented | Not Offset | ||||||||||||||||||
Derivative Assets (1) | |||||||||||||||||||||
Foreign Exchange Contracts OTC | $ | 2,612.50 | $ | 1,073.30 | $ | 1,539.20 | $ | — | $ | 1,539.20 | |||||||||||
Interest Rate Swaps OTC | 228.8 | 47.5 | 181.3 | — | 181.3 | ||||||||||||||||
Interest Rate Swaps Exchange Cleared | 9.1 | 9.1 | — | — | — | ||||||||||||||||
Cross Product Netting Adjustment | — | 28.4 | — | — | — | ||||||||||||||||
Cross Product Collateral Adjustment | — | 210.7 | — | — | — | ||||||||||||||||
Total Derivatives Subject to a Master Netting Arrangement | 2,850.40 | 1,369.00 | 1,481.40 | — | 1,481.40 | ||||||||||||||||
Total Derivatives Not Subject to a Master Netting Arrangement | 253.2 | — | 253.2 | — | 253.2 | ||||||||||||||||
Total Derivatives | 3,103.60 | 1,369.00 | 1,734.60 | — | 1,734.60 | ||||||||||||||||
Securities Purchased under Agreements to Resell (2) | $ | 500 | $ | — | $ | 500 | $ | 500 | $ | — | |||||||||||
-1 | Derivative assets are reported in other assets in the consolidated balance sheet. Other assets (excluding derivative assets) totaled $3,607.1 million and $3,029.4 million as of March 31, 2014 and December 31, 2013, 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 sheet. Federal funds sold totaled $10 million and $29.6 million as of March 31, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||
-3 | Northern Trust did not possess any cash collateral that was not offset in the consolidated balance sheet that could have been used to offset the net amounts presented in the consolidated balance sheet as of March 31, 2014 and December 31, 2013. | ||||||||||||||||||||
Securities Sold Under Agreements to Repurchase and Derivative Liabilities in the Consolidated Balance Sheet | ' | ||||||||||||||||||||
The following tables provide information regarding the offsetting of derivative liabilities and securities sold under agreements to repurchase within the consolidated balance sheet as of March 31, 2014 and December 31, 2013. | |||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||
(In Millions) | Gross | Gross | Net | Gross | Net | ||||||||||||||||
Recognized | Amounts | Amounts | Amounts | Amount (2) | |||||||||||||||||
Liabilities | Offset | Presented | Not Offset | ||||||||||||||||||
Derivative Liabilities (1) | |||||||||||||||||||||
Foreign Exchange Contracts OTC | $ | 1,522.30 | $ | 965.7 | $ | 556.6 | $ | — | $ | 556.6 | |||||||||||
Interest Rate Swaps OTC | 149.1 | 41.7 | 107.4 | — | 107.4 | ||||||||||||||||
Interest Rate Swaps Exchange Cleared | 5.7 | 5.7 | — | — | — | ||||||||||||||||
Cross Product Netting Adjustment | — | 67 | — | — | — | ||||||||||||||||
Cross Product Collateral Adjustment | — | 364.9 | — | — | — | ||||||||||||||||
Total Derivatives Subject to a Master Netting Arrangement | 1,677.10 | 1,445.00 | 232.1 | — | 232.1 | ||||||||||||||||
Total Derivatives Not Subject to a Master Netting Arrangement | 368.1 | — | 368.1 | — | 368.1 | ||||||||||||||||
Total Derivatives | 2,045.20 | 1,445.00 | 600.2 | — | 600.2 | ||||||||||||||||
Securities Sold under Agreements to Repurchase | $ | 736.6 | $ | — | $ | 736.6 | $ | 736.6 | $ | — | |||||||||||
December 31, 2013 | |||||||||||||||||||||
(In Millions) | Gross | Gross | Net | Gross | Net | ||||||||||||||||
Recognized | Amounts | Amounts | Amounts | Amount (2) | |||||||||||||||||
Liabilities | Offset | Presented | Not Offset | ||||||||||||||||||
Derivative Liabilities (1) | |||||||||||||||||||||
Foreign Exchange Contracts OTC | $ | 2,039.00 | $ | 1,073.30 | $ | 965.7 | $ | — | $ | 965.7 | |||||||||||
Interest Rate Swaps OTC | 163.7 | 47.5 | 116.2 | — | 116.2 | ||||||||||||||||
Interest Rate Swaps Exchange Cleared | 31.5 | 9.1 | 22.4 | — | 22.4 | ||||||||||||||||
Cross Product Netting Adjustment | — | 28.4 | — | — | — | ||||||||||||||||
Cross Product Collateral Adjustment | — | 767.7 | — | — | — | ||||||||||||||||
Total Derivatives Subject to a Master Netting Arrangement | 2,234.20 | 1,926.00 | 308.2 | — | 308.2 | ||||||||||||||||
Total Derivatives Not Subject to a Master Netting Arrangement | 866.7 | — | 866.7 | 866.7 | |||||||||||||||||
Total Derivatives | 3,100.90 | 1,926.00 | 1,174.90 | — | 1,174.90 | ||||||||||||||||
Securities Sold under Agreements to Repurchase | $ | 917.3 | $ | — | $ | 917.3 | $ | 917.3 | $ | — | |||||||||||
-1 | Derivative liabilities are reported in other liabilities in the consolidated balance sheet. Other liabilities (excluding derivative liabilities) totaled $2,608.3 million and $2,338.4 million as of March 31, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||
-2 | Northern Trust did not place any cash collateral with counterparties that was not offset in the consolidated balance sheet that could have been used to offset the net amounts presented in the consolidated balance sheet as of March 31, 2014 and December 31, 2013. |
Recent_Accounting_Pronouncemen1
Recent Accounting Pronouncements - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' |
Provision for Income Taxes | $88.10 | $78.50 |
Income before income taxes | 269.5 | 242.5 |
Accounting Standards Update 2014-01 | ' | ' |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' |
Provision for Income Taxes | 1.1 | ' |
Income before income taxes | $0.20 | ' |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 3 Months Ended | ||||||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
Level 2 | Level 2 | Loans | Loans | Other Real Estate Owned | Other Real Estate Owned | External Pricing | External Pricing | Internal Pricing | |||
Securities | Securities | Level 3 | Level 3 | Level 3 | Level 3 | Level 2 | Level 2 | Level 2 | |||
Securities | Securities | Securities | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of available for sale securities portfolio | ' | ' | 891 | 831 | ' | ' | ' | ' | 891 | 829 | 2 |
Available for sale securities portfolio, value | $29,540.60 | $28,392.80 | $27,000 | $26,400 | ' | ' | ' | ' | ' | $26,300 | $57.40 |
Trading account securities | 1.5 | 1.7 | ' | ' | ' | ' | ' | ' | 1.5 | 1.7 | ' |
Settlement of contingent consideration | 55.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial Instrument, fair value | ' | ' | ' | ' | $33.30 | $32.40 | $1.50 | $1.50 | ' | ' | ' |
Valuation_Techniques_Significa
Valuation Techniques, Significant Unobservable Inputs, and Quantitative Information (Detail) (Fair Value, Inputs, Level 3, Auction Rate Securities, USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' |
Financial instrument, fair value | 98.5 |
Group One | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' |
Valuation Technique | 'Discounted Cash Flow |
Unobservable Input | 'Remaining lives |
Group Two | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' |
Valuation Technique | 'Discounted Cash Flow |
Unobservable Input | 'Discount rates |
Lower Limit | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' |
Financial instrument remaining lives | '2 years 2 months 12 days |
Financial instrument discount rate | 0.20% |
Upper Limit | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' |
Financial instrument remaining lives | '8 years 7 months 6 days |
Financial instrument discount rate | 7.80% |
Assets_and_Liabilities_Measure
Assets and Liabilities Measured at Fair Value on Recurring Basis Segregated by Fair Value Hierarchy Level (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Available for Sale | $29,540.60 | $28,392.80 | ||
Trading Account | 1.5 | 1.7 | ||
Contingent Consideration | ' | 55.4 | ||
Fair Value, Measurements, Recurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Total Available for Sale and Trading Securities | 29,542.10 | 28,394.50 | ||
Contingent Consideration | ' | 55.4 | ||
Fair Value, Measurements, Recurring | Securities Investment | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Available for Sale | 29,540.60 | 28,392.80 | ||
Trading Account | 1.5 | 1.7 | ||
Fair Value, Measurements, Recurring | Securities Investment | U.S. Government | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Available for Sale | 2,414.70 | 1,917.90 | ||
Fair Value, Measurements, Recurring | Securities Investment | Obligations of States and Political Subdivisions | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Available for Sale | 4.6 | 4.6 | ||
Fair Value, Measurements, Recurring | Securities Investment | U.S. Government Sponsored Agency | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Available for Sale | 18,150.80 | 17,528 | ||
Fair Value, Measurements, Recurring | Securities Investment | Corporate Debt | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Available for Sale | 3,626 | 3,524.50 | ||
Fair Value, Measurements, Recurring | Securities Investment | Covered Bonds | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Available for Sale | 1,978.50 | 1,943.90 | ||
Fair Value, Measurements, Recurring | Securities Investment | Supranational, Sovereign and Non-U.S. Agency Bonds | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Available for Sale | 720.5 | 720.6 | ||
Fair Value, Measurements, Recurring | Securities Investment | Residential Mortgage-Backed | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Available for Sale | 45.7 | 48.1 | ||
Fair Value, Measurements, Recurring | Securities Investment | Other Asset-Backed | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Available for Sale | 2,304.70 | 2,391.80 | ||
Fair Value, Measurements, Recurring | Securities Investment | Auction Rate Securities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Available for Sale | 98.5 | 98.9 | ||
Fair Value, Measurements, Recurring | Securities Investment | Others | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Available for Sale | 196.6 | 214.5 | ||
Fair Value, Measurements, Recurring | Other Assets | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Derivative Assets | 700.8 | 1,734.60 | ||
Fair Value, Measurements, Recurring | Other Assets | Foreign Exchange Contracts | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Derivative Assets | 1,866.10 | 2,865.70 | ||
Fair Value, Measurements, Recurring | Other Assets | Interest Rate Contracts | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Derivative Assets | 228.4 | 237.9 | ||
Fair Value, Measurements, Recurring | Other Liabilities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Derivative Liabilities | 600.2 | 1,174.90 | ||
Fair Value, Measurements, Recurring | Other Liabilities | Foreign Exchange Contracts | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Derivative Liabilities | 1,890.40 | 2,905.70 | ||
Fair Value, Measurements, Recurring | Other Liabilities | Interest Rate Contracts | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Derivative Liabilities | 154.8 | 195.2 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Total Available for Sale and Trading Securities | 2,414.70 | 1,917.90 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Securities Investment | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Available for Sale | 2,414.70 | 1,917.90 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Securities Investment | U.S. Government | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Available for Sale | 2,414.70 | 1,917.90 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Total Available for Sale and Trading Securities | 27,028.90 | 26,377.70 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Securities Investment | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Available for Sale | 27,027.40 | 26,376 | ||
Trading Account | 1.5 | 1.7 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Securities Investment | Obligations of States and Political Subdivisions | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Available for Sale | 4.6 | 4.6 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Securities Investment | U.S. Government Sponsored Agency | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Available for Sale | 18,150.80 | 17,528 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Securities Investment | Corporate Debt | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Available for Sale | 3,626 | 3,524.50 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Securities Investment | Covered Bonds | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Available for Sale | 1,978.50 | 1,943.90 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Securities Investment | Supranational, Sovereign and Non-U.S. Agency Bonds | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Available for Sale | 720.5 | 720.6 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Securities Investment | Residential Mortgage-Backed | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Available for Sale | 45.7 | 48.1 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Securities Investment | Other Asset-Backed | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Available for Sale | 2,304.70 | 2,391.80 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Securities Investment | Others | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Available for Sale | 196.6 | 214.5 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Other Assets | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Derivative Assets | 2,094.50 | 3,103.60 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Other Assets | Foreign Exchange Contracts | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Derivative Assets | 1,866.10 | 2,865.70 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Other Assets | Interest Rate Contracts | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Derivative Assets | 228.4 | 237.9 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Other Liabilities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Derivative Liabilities | 2,045.20 | 3,100.90 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Other Liabilities | Foreign Exchange Contracts | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Derivative Liabilities | 1,890.40 | 2,905.70 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Other Liabilities | Interest Rate Contracts | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Derivative Liabilities | 154.8 | 195.2 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Total Available for Sale and Trading Securities | 98.5 | 98.9 | ||
Contingent Consideration | ' | 55.4 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Securities Investment | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Available for Sale | 98.5 | 98.9 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Securities Investment | Auction Rate Securities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Available for Sale | 98.5 | 98.9 | ||
Fair Value, Measurements, Recurring | Netting and Collateral | Other Assets | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Derivative Assets | -1,393.70 | [1] | -1,369 | [2] |
Fair Value, Measurements, Recurring | Netting and Collateral | Other Liabilities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ||
Derivative Liabilities | ($1,445) | [1] | ($1,926) | [2] |
[1] | 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, 2014, derivative assets and liabilities shown above also include reductions of $313.6 million and $364.9 million, respectively, as a result of cash collateral received from and deposited with derivative counterparties. | |||
[2] | 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, 2013, derivative assets and liabilities shown above also include reductions of $210.7 million and $767.7 million, respectively, as a result of cash collateral received from and deposited with derivative counterparties. |
Assets_and_Liabilities_Measure1
Assets and Liabilities Measured at Fair Value on Recurring Basis Segregated by Fair Value Hierarchy Level (Parenthetical) (Detail) (Fair Value, Measurements, Recurring, Netting and Collateral, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative Financial Instruments, Liabilities | ' | ' |
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 | $364.90 | $767.70 |
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 | $313.60 | $210.70 |
Changes_in_Level_3_Assets_Deta
Changes in Level 3 Assets (Detail) (Auction Rate Securities, USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Auction Rate Securities | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ||
Fair Value Assets Beginning Balance | $98.90 | $97.80 | ||
Total Gains and (Losses): | ' | ' | ||
Included in Earnings | ' | 0.1 | [1] | |
Included in Other Comprehensive Income | -0.2 | [2] | 2.7 | [2] |
Purchases, Issuances, Sales, and Settlements: | ' | ' | ||
Sales | 0.1 | ' | ||
Settlements | -0.3 | -1 | ||
Fair Value Assets Ending Balance | $98.50 | $99.60 | ||
[1] | Realized gains for the three month period ended March 31, 2013 of $0.1 million represent gains from redemptions by issuers, which are recorded in interest income within the consolidated statement of income. | |||
[2] | Unrealized gains (losses) related to auction rate securities are included in net unrealized gains (losses) on securities available for sale within the consolidated statement of comprehensive income. |
Changes_in_Level_3_Assets_Pare
Changes in Level 3 Assets (Parenthetical) (Detail) (Auction Rate Securities, Redemptions by Issuers, USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2013 |
Auction Rate Securities | Redemptions by Issuers | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' |
Realized gains (losses) on securities | $0.10 |
Changes_in_Level_3_Liabilities
Changes in Level 3 Liabilities (Detail) (Contingent Consideration, USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Contingent Consideration | ' | ' | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ||
Fair Value Liabilities Beginning Balance | $55.40 | $50.10 | ||
Total (Gains) and Losses: | ' | ' | ||
Included in Earnings | -0.1 | [1] | 1.3 | [1] |
Included in Other Comprehensive Income | ' | ' | ||
Purchases, Issues, Sales, and Settlements | ' | ' | ||
Purchases | ' | ' | ||
Settlements | -55.3 | ' | ||
Fair Value Liabilities Ending Balance | ' | 51.4 | ||
Unrealized (Gains) Losses Included in Earnings Related to Financial Instruments Held at December 31 | ' | $1.30 | [1] | |
[1] | Gains (losses) are recorded in other operating income (expense) within the consolidated statement of income. |
Valuation_Techniques_Significa1
Valuation Techniques, Significant Unobservable Inputs, Quantitative Information Non-recurring Basis (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Loans | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Valuation Technique | 'Market Approach |
Unobservable Input | 'Discount to reflect realizable value |
Loans | Fair Value, Inputs, Level 3 | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Financial Instrument, fair value | 33.3 |
Other Real Estate Owned | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Valuation Technique | 'Market Approach |
Unobservable Input | 'Discount to reflect realizable value |
Other Real Estate Owned | Fair Value, Inputs, Level 3 | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Financial Instrument, fair value | 1.5 |
Lower Limit | Loans | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Range of Discounts Applied | 15.00% |
Lower Limit | Other Real Estate Owned | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Range of Discounts Applied | 15.00% |
Upper Limit | Loans | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Range of Discounts Applied | 40.00% |
Upper Limit | Other Real Estate Owned | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Range of Discounts Applied | 40.00% |
Book_and_Fair_Values_of_All_Fi
Book and Fair Values of All Financial Instruments (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||||
Assets | ' | ' | ' | ' | ||
Cash and Due from Banks | $3,676.30 | $3,162.40 | $3,773.50 | $3,752.70 | ||
Federal Funds Sold and Resell Agreements | 510 | 529.6 | ' | ' | ||
Interest-Bearing Deposits with Banks | 17,155.80 | 19,397.40 | ' | ' | ||
Federal Reserve Deposits and Other Interest-Bearing | 12,211 | 12,911.50 | ' | ' | ||
Securities | ' | ' | ' | ' | ||
Available for Sale | 29,540.60 | 28,392.80 | ' | ' | ||
Held to Maturity | 4,211.70 | 2,325.80 | ' | ' | ||
Trading Account | 1.5 | 1.7 | ' | ' | ||
Loans (excluding Leases) | ' | ' | ' | ' | ||
Client Security Settlement Receivables | 1,845.20 | 1,355.20 | ' | ' | ||
Deposits | ' | ' | ' | ' | ||
Savings Certificates and Other Time | 2,034.50 | 1,874.40 | ' | ' | ||
Non U.S. Offices Interest-Bearing | 47,564.40 | 48,461.70 | ' | ' | ||
Federal Funds Purchased | 1,013.90 | 965.1 | ' | ' | ||
Securities Sold under Agreements to Repurchase | 736.6 | 917.3 | ' | ' | ||
Other Borrowings | 652.4 | 1,558.60 | ' | ' | ||
Senior Notes | 1,996.70 | 1,996.60 | ' | ' | ||
Other Liabilities | ' | ' | ' | ' | ||
Contingent Consideration | ' | 55.4 | ' | ' | ||
Carrying (Reported) Amount, Fair Value Disclosure | ' | ' | ' | ' | ||
Assets | ' | ' | ' | ' | ||
Cash and Due from Banks | 3,676.30 | 3,162.40 | ' | ' | ||
Federal Funds Sold and Resell Agreements | 510 | 529.6 | ' | ' | ||
Interest-Bearing Deposits with Banks | 17,155.80 | 19,397.40 | ' | ' | ||
Federal Reserve Deposits and Other Interest-Bearing | 12,211 | 12,911.50 | ' | ' | ||
Securities | ' | ' | ' | ' | ||
Available for Sale | 29,540.60 | [1] | 28,392.80 | [2] | ' | ' |
Held to Maturity | 4,211.70 | 2,325.80 | ' | ' | ||
Trading Account | 1.5 | 1.7 | ' | ' | ||
Loans (excluding Leases) | ' | ' | ' | ' | ||
Held for Investment | 28,492.50 | 28,136.50 | ' | ' | ||
Held for Sale | ' | ' | ' | ' | ||
Client Security Settlement Receivables | 1,845.20 | 1,355.20 | ' | ' | ||
Other Assets | ' | ' | ' | ' | ||
Federal Reserve and Federal Home Loan Bank Stock | 194.7 | 194.7 | ' | ' | ||
Community Development Investments | 216.3 | 228.1 | ' | ' | ||
Employee Benefit and Deferred Compensation | 149.3 | 132.7 | ' | ' | ||
Deposits | ' | ' | ' | ' | ||
Demand, Noninterest-Bearing, Savings and Money Market | 36,668.80 | 33,762 | ' | ' | ||
Savings Certificates and Other Time | 2,034.50 | 1,874.40 | ' | ' | ||
Non U.S. Offices Interest-Bearing | 47,564.40 | 48,461.70 | ' | ' | ||
Federal Funds Purchased | 1,013.90 | 965.1 | ' | ' | ||
Securities Sold under Agreements to Repurchase | 736.6 | 917.3 | ' | ' | ||
Other Borrowings | 652.4 | 1,558.60 | ' | ' | ||
Senior Notes | 1,996.70 | 1,996.60 | ' | ' | ||
Long Term Debt (excluding Leases) | ' | ' | ' | ' | ||
Subordinated Debt | 1,560.40 | 1,537.30 | ' | ' | ||
Federal Home Loan Bank Borrowings | 135 | 135 | ' | ' | ||
Floating Rate Capital Debt | 277.2 | 277.1 | ' | ' | ||
Other Liabilities | ' | ' | ' | ' | ||
Standby Letters of Credit | 57.6 | 59.6 | ' | ' | ||
Contingent Consideration | ' | 55.4 | ' | ' | ||
Loan Commitments | 33 | 35.7 | ' | ' | ||
Carrying (Reported) Amount, Fair Value Disclosure | Asset And Liability Management | Foreign Exchange Contracts | ' | ' | ' | ' | ||
Derivative Instruments | ' | ' | ' | ' | ||
Assets | 11.9 | 21 | ' | ' | ||
Liabilities | 23.7 | 59.5 | ' | ' | ||
Carrying (Reported) Amount, Fair Value Disclosure | Asset And Liability Management | Interest Rate Contracts | ' | ' | ' | ' | ||
Derivative Instruments | ' | ' | ' | ' | ||
Assets | 111.7 | ' | ' | ' | ||
Liabilities | 43.5 | ' | ' | ' | ||
Carrying (Reported) Amount, Fair Value Disclosure | Asset And Liability Management | Interest Rate Swap Contracts | ' | ' | ' | ' | ||
Derivative Instruments | ' | ' | ' | ' | ||
Assets | ' | 115.1 | ' | ' | ||
Liabilities | ' | 78.2 | ' | ' | ||
Carrying (Reported) Amount, Fair Value Disclosure | Client Related and Trading | Foreign Exchange Contracts | ' | ' | ' | ' | ||
Derivative Instruments | ' | ' | ' | ' | ||
Assets | 1,854.20 | 2,844.70 | ' | ' | ||
Liabilities | 1,866.70 | 2,846.20 | ' | ' | ||
Carrying (Reported) Amount, Fair Value Disclosure | Client Related and Trading | Interest Rate Contracts | ' | ' | ' | ' | ||
Derivative Instruments | ' | ' | ' | ' | ||
Assets | 116.7 | 122.8 | ' | ' | ||
Liabilities | 111.3 | 117 | ' | ' | ||
Estimate of Fair Value, Fair Value Disclosure | ' | ' | ' | ' | ||
Assets | ' | ' | ' | ' | ||
Cash and Due from Banks | 3,676.30 | 3,162.40 | ' | ' | ||
Federal Funds Sold and Resell Agreements | 510 | 529.6 | ' | ' | ||
Interest-Bearing Deposits with Banks | 17,155.80 | 19,397.40 | ' | ' | ||
Federal Reserve Deposits and Other Interest-Bearing | 12,211 | 12,911.50 | ' | ' | ||
Securities | ' | ' | ' | ' | ||
Available for Sale | 29,540.60 | [1] | 28,392.80 | [2] | ' | ' |
Held to Maturity | 4,209.20 | 2,321.40 | ' | ' | ||
Trading Account | 1.5 | 1.7 | ' | ' | ||
Loans (excluding Leases) | ' | ' | ' | ' | ||
Held for Investment | 28,533.10 | 28,147.20 | ' | ' | ||
Held for Sale | ' | ' | ' | ' | ||
Client Security Settlement Receivables | 1,845.20 | 1,355.20 | ' | ' | ||
Other Assets | ' | ' | ' | ' | ||
Federal Reserve and Federal Home Loan Bank Stock | 194.7 | 194.7 | ' | ' | ||
Community Development Investments | 219.9 | 227.8 | ' | ' | ||
Employee Benefit and Deferred Compensation | 145.6 | 126.9 | ' | ' | ||
Deposits | ' | ' | ' | ' | ||
Demand, Noninterest-Bearing, Savings and Money Market | 36,668.80 | 33,762 | ' | ' | ||
Savings Certificates and Other Time | 2,036.60 | 1,877.10 | ' | ' | ||
Non U.S. Offices Interest-Bearing | 47,564.40 | 48,461.70 | ' | ' | ||
Federal Funds Purchased | 1,013.90 | 965.1 | ' | ' | ||
Securities Sold under Agreements to Repurchase | 736.6 | 917.3 | ' | ' | ||
Other Borrowings | 652.4 | 1,558.60 | ' | ' | ||
Senior Notes | 2,020.10 | 1,989.30 | ' | ' | ||
Long Term Debt (excluding Leases) | ' | ' | ' | ' | ||
Subordinated Debt | 1,587.10 | 1,563.50 | ' | ' | ||
Federal Home Loan Bank Borrowings | 135.7 | 137.2 | ' | ' | ||
Floating Rate Capital Debt | 238.9 | 230.2 | ' | ' | ||
Other Liabilities | ' | ' | ' | ' | ||
Standby Letters of Credit | 57.6 | 59.6 | ' | ' | ||
Contingent Consideration | ' | 55.4 | ' | ' | ||
Loan Commitments | 33 | 35.7 | ' | ' | ||
Estimate of Fair Value, Fair Value Disclosure | Asset And Liability Management | Foreign Exchange Contracts | ' | ' | ' | ' | ||
Derivative Instruments | ' | ' | ' | ' | ||
Assets | 11.9 | 21 | ' | ' | ||
Liabilities | 23.7 | 59.5 | ' | ' | ||
Estimate of Fair Value, Fair Value Disclosure | Asset And Liability Management | Interest Rate Contracts | ' | ' | ' | ' | ||
Derivative Instruments | ' | ' | ' | ' | ||
Assets | 111.7 | ' | ' | ' | ||
Liabilities | 43.5 | ' | ' | ' | ||
Estimate of Fair Value, Fair Value Disclosure | Asset And Liability Management | Interest Rate Swap Contracts | ' | ' | ' | ' | ||
Derivative Instruments | ' | ' | ' | ' | ||
Assets | ' | 115.1 | ' | ' | ||
Liabilities | ' | 78.2 | ' | ' | ||
Estimate of Fair Value, Fair Value Disclosure | Client Related and Trading | Foreign Exchange Contracts | ' | ' | ' | ' | ||
Derivative Instruments | ' | ' | ' | ' | ||
Assets | 1,854.20 | 2,844.70 | ' | ' | ||
Liabilities | 1,866.70 | 2,846.20 | ' | ' | ||
Estimate of Fair Value, Fair Value Disclosure | Client Related and Trading | Interest Rate Contracts | ' | ' | ' | ' | ||
Derivative Instruments | ' | ' | ' | ' | ||
Assets | 116.7 | 122.8 | ' | ' | ||
Liabilities | 111.3 | 117 | ' | ' | ||
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 1 | ' | ' | ' | ' | ||
Assets | ' | ' | ' | ' | ||
Cash and Due from Banks | 3,676.30 | 3,162.40 | ' | ' | ||
Securities | ' | ' | ' | ' | ||
Available for Sale | 2,414.70 | [1] | 1,917.90 | [2] | ' | ' |
Loans (excluding Leases) | ' | ' | ' | ' | ||
Held for Sale | ' | ' | ' | ' | ||
Other Assets | ' | ' | ' | ' | ||
Employee Benefit and Deferred Compensation | 93.9 | 79.3 | ' | ' | ||
Deposits | ' | ' | ' | ' | ||
Demand, Noninterest-Bearing, Savings and Money Market | 36,668.80 | 33,762 | ' | ' | ||
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 2 | ' | ' | ' | ' | ||
Assets | ' | ' | ' | ' | ||
Federal Funds Sold and Resell Agreements | 510 | 529.6 | ' | ' | ||
Interest-Bearing Deposits with Banks | 17,155.80 | 19,397.40 | ' | ' | ||
Federal Reserve Deposits and Other Interest-Bearing | 12,211 | 12,911.50 | ' | ' | ||
Securities | ' | ' | ' | ' | ||
Available for Sale | 27,027.40 | [1] | 26,376 | [2] | ' | ' |
Held to Maturity | 4,209.20 | 2,321.40 | ' | ' | ||
Trading Account | 1.5 | 1.7 | ' | ' | ||
Loans (excluding Leases) | ' | ' | ' | ' | ||
Held for Sale | ' | ' | ' | ' | ||
Client Security Settlement Receivables | 1,845.20 | 1,355.20 | ' | ' | ||
Other Assets | ' | ' | ' | ' | ||
Federal Reserve and Federal Home Loan Bank Stock | 194.7 | 194.7 | ' | ' | ||
Community Development Investments | 219.9 | 227.8 | ' | ' | ||
Employee Benefit and Deferred Compensation | 51.7 | 47.6 | ' | ' | ||
Deposits | ' | ' | ' | ' | ||
Savings Certificates and Other Time | 2,036.60 | 1,877.10 | ' | ' | ||
Non U.S. Offices Interest-Bearing | 47,564.40 | 48,461.70 | ' | ' | ||
Federal Funds Purchased | 1,013.90 | 965.1 | ' | ' | ||
Securities Sold under Agreements to Repurchase | 736.6 | 917.3 | ' | ' | ||
Other Borrowings | 652.4 | 1,558.60 | ' | ' | ||
Senior Notes | 2,020.10 | 1,989.30 | ' | ' | ||
Long Term Debt (excluding Leases) | ' | ' | ' | ' | ||
Subordinated Debt | 1,587.10 | 1,563.50 | ' | ' | ||
Federal Home Loan Bank Borrowings | 135.7 | 137.2 | ' | ' | ||
Floating Rate Capital Debt | 238.9 | 230.2 | ' | ' | ||
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 2 | Asset And Liability Management | Foreign Exchange Contracts | ' | ' | ' | ' | ||
Derivative Instruments | ' | ' | ' | ' | ||
Assets | 11.9 | 21 | ' | ' | ||
Liabilities | 23.7 | 59.5 | ' | ' | ||
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 2 | Asset And Liability Management | Interest Rate Contracts | ' | ' | ' | ' | ||
Derivative Instruments | ' | ' | ' | ' | ||
Assets | 111.7 | ' | ' | ' | ||
Liabilities | 43.5 | ' | ' | ' | ||
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 2 | Asset And Liability Management | Interest Rate Swap Contracts | ' | ' | ' | ' | ||
Derivative Instruments | ' | ' | ' | ' | ||
Assets | ' | 115.1 | ' | ' | ||
Liabilities | ' | 78.2 | ' | ' | ||
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 2 | Client Related and Trading | Foreign Exchange Contracts | ' | ' | ' | ' | ||
Derivative Instruments | ' | ' | ' | ' | ||
Assets | 1,854.20 | 2,844.70 | ' | ' | ||
Liabilities | 1,866.70 | 2,846.20 | ' | ' | ||
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 2 | Client Related and Trading | Interest Rate Contracts | ' | ' | ' | ' | ||
Derivative Instruments | ' | ' | ' | ' | ||
Assets | 116.7 | 122.8 | ' | ' | ||
Liabilities | 111.3 | 117 | ' | ' | ||
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 3 | ' | ' | ' | ' | ||
Securities | ' | ' | ' | ' | ||
Available for Sale | 98.5 | [1] | 98.9 | [2] | ' | ' |
Loans (excluding Leases) | ' | ' | ' | ' | ||
Held for Investment | 28,533.10 | 28,147.20 | ' | ' | ||
Held for Sale | ' | ' | ' | ' | ||
Other Liabilities | ' | ' | ' | ' | ||
Standby Letters of Credit | 57.6 | 59.6 | ' | ' | ||
Contingent Consideration | ' | 55.4 | ' | ' | ||
Loan Commitments | $33 | $35.70 | ' | ' | ||
[1] | Refer to the table located on page 33 for the disaggregation of available for sale securities. | |||||
[2] | Refer to the table located on page 34 for the disaggregation of available for sale securities. |
Reconciliation_of_Amortized_Co
Reconciliation of Amortized Cost to Fair Values of Securities Available for Sale (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investment Holdings [Line Items] | ' | ' |
Amortized Cost | $29,523.70 | $28,382.30 |
Gross Unrealized Gains | 111.4 | 174.2 |
Gross Unrealized Losses | 94.5 | 163.7 |
Fair Value | 29,540.60 | 28,392.80 |
U.S. Government | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Amortized Cost | 2,396 | 1,896.70 |
Gross Unrealized Gains | 20.5 | 22.6 |
Gross Unrealized Losses | 1.8 | 1.4 |
Fair Value | 2,414.70 | 1,917.90 |
Obligations of States and Political Subdivisions | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Amortized Cost | 4.5 | 4.5 |
Gross Unrealized Gains | 0.1 | 0.1 |
Fair Value | 4.6 | 4.6 |
U.S. Government Sponsored Agency | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Amortized Cost | 18,131.40 | 17,495.20 |
Gross Unrealized Gains | 65.1 | 80.7 |
Gross Unrealized Losses | 45.7 | 47.9 |
Fair Value | 18,150.80 | 17,528 |
Corporate Debt | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Amortized Cost | 3,661.90 | 3,615.20 |
Gross Unrealized Gains | 5.3 | 10.5 |
Gross Unrealized Losses | 41.2 | 101.2 |
Fair Value | 3,626 | 3,524.50 |
Covered Bonds | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Amortized Cost | 1,965.20 | 1,898.90 |
Gross Unrealized Gains | 13.7 | 50.9 |
Gross Unrealized Losses | 0.4 | 5.9 |
Fair Value | 1,978.50 | 1,943.90 |
Supranational, Sovereign and Non-U.S. Agency Bonds | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Amortized Cost | 719.9 | 717 |
Gross Unrealized Gains | 2 | 5.3 |
Gross Unrealized Losses | 1.4 | 1.7 |
Fair Value | 720.5 | 720.6 |
Residential Mortgage-Backed | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Amortized Cost | 48.6 | 52.4 |
Gross Unrealized Gains | 0.1 | 0.1 |
Gross Unrealized Losses | 3 | 4.4 |
Fair Value | 45.7 | 48.1 |
Other Asset-Backed | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Amortized Cost | 2,302.80 | 2,390.80 |
Gross Unrealized Gains | 2 | 1.4 |
Gross Unrealized Losses | 0.1 | 0.4 |
Fair Value | 2,304.70 | 2,391.80 |
Auction Rate Securities | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Amortized Cost | 97.3 | 97.5 |
Gross Unrealized Gains | 2.1 | 2.2 |
Gross Unrealized Losses | 0.9 | 0.8 |
Fair Value | 98.5 | 98.9 |
Others | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Amortized Cost | 196.1 | 214.1 |
Gross Unrealized Gains | 0.5 | 0.4 |
Fair Value | $196.60 | $214.50 |
Reconciliation_of_Amortized_Co1
Reconciliation of Amortized Cost to Fair Values of Securities Held to Maturity (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized Cost | $4,211.70 | $2,325.80 |
Gross Unrealized Gains | 14.8 | 12.3 |
Gross Unrealized Losses | 17.3 | 16.7 |
Fair Value | 4,209.20 | 2,321.40 |
Obligations of States and Political Subdivisions | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized Cost | 196.2 | 225.2 |
Gross Unrealized Gains | 9.7 | 10.3 |
Gross Unrealized Losses | ' | ' |
Fair Value | 205.9 | 235.5 |
U.S. Government Sponsored Agency | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized Cost | 32.1 | 35.9 |
Gross Unrealized Gains | 1.1 | 1.1 |
Gross Unrealized Losses | ' | ' |
Fair Value | 33.2 | 37 |
Non-U.S. Government | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized Cost | 176.1 | 197.3 |
Gross Unrealized Gains | ' | ' |
Gross Unrealized Losses | 0.1 | ' |
Fair Value | 176 | 197.3 |
Certificates of Deposit | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized Cost | 1,531.80 | 698.1 |
Gross Unrealized Gains | 0.1 | ' |
Gross Unrealized Losses | 0.1 | 0.2 |
Fair Value | 1,531.80 | 697.9 |
Supranational, Sovereign and Non-U.S. Agency Bonds | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized Cost | 2,217.50 | 1,109.40 |
Gross Unrealized Gains | 3.8 | 0.8 |
Gross Unrealized Losses | 6.3 | 4.3 |
Fair Value | 2,215 | 1,105.90 |
Others | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized Cost | 58 | 59.9 |
Gross Unrealized Gains | 0.1 | 0.1 |
Gross Unrealized Losses | 10.8 | 12.2 |
Fair Value | $47.30 | $47.80 |
Remaining_Maturity_of_Securiti
Remaining Maturity of Securities Available for Sale (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Available for Sale - Amortized Cost | ' | ' |
Due in One Year or Less | $9,112.90 | ' |
Due After One Year Through Five Years | 15,997.90 | ' |
Due After Five Years Through Ten Years | 2,946.90 | ' |
Due After Ten Years | 1,466 | ' |
Total | 29,523.70 | ' |
Held to Maturity - Amortized Cost | ' | ' |
Due in One Year or Less | 1,897.90 | ' |
Due After One Year Through Five Years | 2,256.40 | ' |
Due After Five Years Through Ten Years | 25.3 | ' |
Due After Ten Years | 32.1 | ' |
Total | 4,211.70 | 2,325.80 |
Available for Sale - Fair Value | ' | ' |
Due in One Year or Less | 9,117.70 | ' |
Due After One Year Through Five Years | 16,023.60 | ' |
Due After Five Years Through Ten Years | 2,937.80 | ' |
Due After Ten Years | 1,461.50 | ' |
Total | 29,540.60 | ' |
Held to Maturity - Fair Value | ' | ' |
Due in One Year or Less | 1,900.90 | ' |
Due After One Year Through Five Years | 2,257.50 | ' |
Due After Five Years Through Ten Years | 25.9 | ' |
Due After Ten Years | 24.9 | ' |
Fair Value | $4,209.20 | $2,321.40 |
Securities_Additional_Informat
Securities - Additional Information (Detail) (USD $) | 3 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | ||
Investment | |||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' | ||
Investment Security Gains (Losses), net | ($4) | [1] | $0.20 | [1] | ' |
Gross proceeds from sale of securities | 199.7 | 55.7 | ' | ||
Gross realized securities gains | 0.3 | 0.2 | ' | ||
Gross realized securities losses | 0.4 | ' | ' | ||
Number of securities in an unrealized loss position | 509 | ' | ' | ||
Total Fair Value | 12,403.30 | ' | 10,250 | ||
Total Unrealized Losses | 111.8 | ' | 180.4 | ||
12 Months or Longer Unrealized Losses | 43.7 | ' | 34.6 | ||
Net impairment losses recognized in earnings | 3.9 | ' | ' | ||
U.S. Government Sponsored Agency | ' | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' | ||
Total Unrealized Losses | 45.7 | ' | ' | ||
Others | Community Reinvestment Act CRA | ' | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' | ||
Total Unrealized Losses | 10.8 | ' | ' | ||
Auction Rate Securities | ' | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' | ||
Total Unrealized Losses | 0.9 | ' | ' | ||
Corporate Debt | ' | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' | ||
Total Unrealized Losses | 41.2 | ' | ' | ||
Percent of corporate debt portfolio | 46.00% | ' | ' | ||
Non-Agency RMBS | Financing Receivable, Current | Upper Limit | ' | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' | ||
Expected loss on subprime, Alt-A, prime and 2nd lien portfolios developed using default roll rate | 30.00% | ' | ' | ||
Non-Agency RMBS | Financing Receivable, Current | Lower Limit | ' | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' | ||
Expected loss on subprime, Alt-A, prime and 2nd lien portfolios developed using default roll rate | 5.00% | ' | ' | ||
Non-Agency RMBS | Financing Receivable, 30 to 59 Days Past Due | ' | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' | ||
Expected loss on subprime, Alt-A, prime and 2nd lien portfolios developed using default roll rate | 30.00% | ' | ' | ||
Non-Agency RMBS | Financing Receivable, 60 to 89 Days Past Due | ' | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' | ||
Expected loss on subprime, Alt-A, prime and 2nd lien portfolios developed using default roll rate | 80.00% | ' | ' | ||
Non-Agency RMBS | Financing Receivable, 90 Days and Greater Past Due | ' | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' | ||
Expected loss on subprime, Alt-A, prime and 2nd lien portfolios developed using default roll rate | 90.00% | ' | ' | ||
Non-Agency RMBS | Other Real Estate Owned and Loans in Foreclosure | ' | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' | ||
Expected loss on subprime, Alt-A, prime and 2nd lien portfolios developed using default roll rate | 100.00% | ' | ' | ||
Residential Mortgage-Backed | ' | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' | ||
Total Unrealized Losses | 3 | ' | ' | ||
Number of securities in an unrealized loss position for more than 12 months | 5 | ' | ' | ||
12 Months or Longer Unrealized Losses | 41 | ' | ' | ||
Residential Mortgage-Backed | Sub-prime and Alt-A Mortgage Backed Securities | ' | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' | ||
Residential mortgage-backed securities total amortized cost | 48.6 | ' | ' | ||
Residential mortgage-backed securities fair value | $45.70 | ' | ' | ||
Other Asset-Backed | Floating Rate Securities | ' | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' | ||
Percentage of "other asset-backed" securities rated triple-A | 99.00% | ' | ' | ||
Credit Rating | 'AAA | ' | ' | ||
Other Asset-Backed | Floating Rate Securities | Upper Limit | ' | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' | ||
Average life | '5 years | ' | ' | ||
[1] | Changes in Other-Than-Temporary-Impairment (OTTI) Losses $ (4.6 ) $ - Noncredit-related OTTI Losses Recorded in/(Reclassified from) OCI 0.7 - Other Security Gains (Losses), net (0.1 ) 0.2 Investment Security Gains (Losses), net $ (4.0 ) $ 0.2 |
Securities_Continuous_Unrealiz
Securities Continuous Unrealized Loss Position (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months Fair Value | $10,899.60 | $9,473.90 |
Less than 12 Months Unrealized Losses | 68.1 | 145.8 |
12 Months or Longer Fair Value | 1,503.70 | 776.1 |
12 Months or Longer Unrealized Losses | 43.7 | 34.6 |
Total Fair Value | 12,403.30 | 10,250 |
Total Unrealized Losses | 111.8 | 180.4 |
U.S. Government | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months Fair Value | 1,195.60 | 896.4 |
Less than 12 Months Unrealized Losses | 1.8 | 1.4 |
Total Fair Value | 1,195.60 | 896.4 |
Total Unrealized Losses | 1.8 | 1.4 |
U.S. Government Sponsored Agency | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months Fair Value | 6,055.60 | 4,340.80 |
Less than 12 Months Unrealized Losses | 33.6 | 42.6 |
12 Months or Longer Fair Value | 913.1 | 413.7 |
12 Months or Longer Unrealized Losses | 12.1 | 5.3 |
Total Fair Value | 6,968.70 | 4,754.50 |
Total Unrealized Losses | 45.7 | 47.9 |
Corporate Debt | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months Fair Value | 1,323.60 | 1,759.50 |
Less than 12 Months Unrealized Losses | 20.8 | 85.4 |
12 Months or Longer Fair Value | 497 | 267 |
12 Months or Longer Unrealized Losses | 20.4 | 15.8 |
Total Fair Value | 1,820.60 | 2,026.50 |
Total Unrealized Losses | 41.2 | 101.2 |
Covered Bonds | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months Fair Value | 190.1 | 278.8 |
Less than 12 Months Unrealized Losses | 0.2 | 5.7 |
12 Months or Longer Fair Value | 9.9 | 9.9 |
12 Months or Longer Unrealized Losses | 0.2 | 0.2 |
Total Fair Value | 200 | 288.7 |
Total Unrealized Losses | 0.4 | 5.9 |
Supranational, Sovereign and Non-U.S. Agency Bonds | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months Fair Value | 1,260.40 | 789.4 |
Less than 12 Months Unrealized Losses | 7.7 | 6 |
Total Fair Value | 1,260.40 | 789.4 |
Total Unrealized Losses | 7.7 | 6 |
Residential Mortgage-Backed | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
12 Months or Longer Fair Value | 41 | 42 |
12 Months or Longer Unrealized Losses | 3 | 4.4 |
Total Fair Value | 41 | 42 |
Total Unrealized Losses | 3 | 4.4 |
Other Asset-Backed | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months Fair Value | 187.4 | 677 |
Less than 12 Months Unrealized Losses | 0.1 | 0.4 |
Total Fair Value | 187.4 | 677 |
Total Unrealized Losses | 0.1 | 0.4 |
Certificates of Deposit | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months Fair Value | 473.5 | 684.2 |
Less than 12 Months Unrealized Losses | 0.1 | 0.2 |
Total Fair Value | 473.5 | 684.2 |
Total Unrealized Losses | 0.1 | 0.2 |
Auction Rate Securities | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months Fair Value | 23.2 | 22.1 |
Less than 12 Months Unrealized Losses | 0.2 | 0.1 |
12 Months or Longer Fair Value | 13.7 | 14 |
12 Months or Longer Unrealized Losses | 0.7 | 0.7 |
Total Fair Value | 36.9 | 36.1 |
Total Unrealized Losses | 0.9 | 0.8 |
Non-U.S. Government | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months Fair Value | 148.9 | ' |
Less than 12 Months Unrealized Losses | 0.1 | ' |
Total Fair Value | 148.9 | ' |
Total Unrealized Losses | 0.1 | ' |
Others | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months Fair Value | 41.3 | 25.7 |
Less than 12 Months Unrealized Losses | 3.5 | 4 |
12 Months or Longer Fair Value | 29 | 29.5 |
12 Months or Longer Unrealized Losses | 7.3 | 8.2 |
Total Fair Value | 70.3 | 55.2 |
Total Unrealized Losses | $10.80 | $12.20 |
Book_Values_Ultimate_Default_R
Book Values, Ultimate Default Rates, and Loss Severity Rates for Non-Agency Residential Mortgage-Backed Securities Portfolio, by Security Type (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | $29,523.70 | $28,382.30 |
Non-Agency RMBS | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 48.6 | ' |
Weighted Average Ultimate Default Rates | 38.50% | ' |
Loss Severity Rates - Weighted Average | 72.10% | ' |
Non-Agency RMBS | Lower Limit | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Loss Severity Rates | 32.50% | ' |
Non-Agency RMBS | Upper Limit | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Loss Severity Rates | 99.00% | ' |
Non-Agency RMBS | Prime | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 7.2 | ' |
Weighted Average Ultimate Default Rates | 19.70% | ' |
Loss Severity Rates - Weighted Average | 47.00% | ' |
Non-Agency RMBS | Prime | Lower Limit | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Loss Severity Rates | 32.50% | ' |
Non-Agency RMBS | Prime | Upper Limit | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Loss Severity Rates | 53.40% | ' |
Non-Agency RMBS | Alt-A | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 11.8 | ' |
Weighted Average Ultimate Default Rates | 40.10% | ' |
Loss Severity Rates - Weighted Average | 64.70% | ' |
Non-Agency RMBS | Alt-A | Lower Limit | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Loss Severity Rates | 64.70% | ' |
Non-Agency RMBS | Alt-A | Upper Limit | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Loss Severity Rates | 64.70% | ' |
Non-Agency RMBS | Subprime | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 21.6 | ' |
Weighted Average Ultimate Default Rates | 47.10% | ' |
Loss Severity Rates - Weighted Average | 74.70% | ' |
Non-Agency RMBS | Subprime | Lower Limit | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Loss Severity Rates | 74.00% | ' |
Non-Agency RMBS | Subprime | Upper Limit | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Loss Severity Rates | 77.10% | ' |
Non-Agency RMBS | 2nd Lien | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | $8 | ' |
Weighted Average Ultimate Default Rates | 32.30% | ' |
Loss Severity Rates - Weighted Average | 99.00% | ' |
Non-Agency RMBS | 2nd Lien | Lower Limit | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Loss Severity Rates | 98.90% | ' |
Non-Agency RMBS | 2nd Lien | Upper Limit | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Loss Severity Rates | 99.00% | ' |
Credit_Related_Impairment_Loss
Credit Related Impairment Losses Recognized in Earnings on Other Than Temporarily Impaired Securities (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ' | ' | |
Changes in OTTI Losses | ($4.60) | [1] | ' |
Noncredit-related Losses Recorded in / (Reclassified from) OCI | 0.7 | [2] | ' |
Net Impairment Losses Recognized in Earnings | ($3.90) | ' | |
[1] | For initial other-than-temporary impairments in the respective period, the balance includes the excess of the amortized cost over the fair value of the impaired securities. For subsequent impairments of the same security, the balance includes any additional changes in fair value of the security subsequent to its most recently recorded OTTI. | ||
[2] | For initial other-than-temporary impairments in the respective period, the balance includes the portion of the excess of amortized cost over the fair value of the impaired securities that was recorded in OCI. For subsequent impairments of the same security, the balance includes additional changes in OCI for that security subsequent to its most recently recorded OTTI. |
CreditRelated_Losses_Recognize
Credit-Related Losses Recognized in Earnings on Debt Securities Other-Than-Temporarily Impaired (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ' | ' |
Cumulative Credit-Related Losses on Securities Held - Beginning of Period | $8.80 | $42.30 |
Plus: Losses on Newly Identified Impairments | 1.8 | ' |
Additional Losses on Previously Identified Impairments | 2.1 | ' |
Less: Current and Prior Period Losses on Securities Sold During the Period | ' | -33.5 |
Cumulative Credit-Related Losses on Securities Held - End of Period | $12.70 | $8.80 |
Debt_Securities_Held_for_which
Debt Securities Held for which Other-Than-Temporary Impairment Loss has been Recognized in Current Period or Previously (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
OtherThanTemporary Impairment Non Credit Losses Recognized In Earnings [Line Items] | ' | ' |
Fair Value | $52.40 | $38.30 |
Amortized Cost Basis | 55.4 | 42.8 |
Noncredit-related Losses Recognized in OCI | -3 | -4.5 |
Tax Effect | 1.1 | 1.7 |
Amount Recorded in OCI | ($1.90) | ($2.80) |
Amounts_Outstanding_for_Loans_
Amounts Outstanding for Loans and Leases by Segment and Class (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total Loans and Leases | $29,660.80 | $29,385.50 |
Allowance for Credit Losses Assigned to Loans and Leases | -279.2 | -278.1 |
Net Loans and Leases | 29,381.60 | 29,107.40 |
Commercial | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Commercial and Institutional | 7,738.20 | 7,375.80 |
Commercial Real Estate | 3,018.90 | 2,955.80 |
Lease Financing, net | 892.6 | 975.1 |
Non-U.S. | 1,349.70 | 954.7 |
Other | 281.3 | 358.6 |
Total Loans and Leases | 13,280.70 | 12,620 |
Allowance for Credit Losses Assigned to Loans and Leases | -146.1 | -140.9 |
Personal | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Residential Real Estate | 10,093.90 | 10,271.30 |
Private Client | 6,247.80 | 6,445.60 |
Other | 38.4 | 48.6 |
Total Loans and Leases | 16,380.10 | 16,765.50 |
Allowance for Credit Losses Assigned to Loans and Leases | ($133.10) | ($137.20) |
Loans_and_Leases_Additional_In
Loans and Leases - Additional Information (Detail) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Lower Limit | Upper Limit | First Lien | First Lien | Equity | Equity | Nonperforming Financing Receivable | Nonperforming Financing Receivable | Performing Financing Receivable | Performing Financing Receivable | Performing Financing Receivable | Residential Real Estate | Residential Real Estate | ||||
Lower Limit | Re-Defaulted | Re-Defaulted | ||||||||||||||
Loan | 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 | 80.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Draw period for credit line products | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity credit lines | ' | ' | ' | ' | ' | ' | ' | $1,900,000,000 | $2,000,000,000 | ' | ' | ' | ' | ' | ' | ' |
Loans held by Northern trust | ' | ' | ' | ' | ' | 87.00% | 87.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other U.S. loans and non-U.S. loans, short duration advances | 1,500,000,000 | ' | 1,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Demand deposits | 117,500,000 | ' | 104,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans held for sale | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Days contractually past due for interest and principal and the loan is not well-secured and in the process of collection | ' | ' | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of days past due for disclosure purposes to be categorized as a current | ' | ' | ' | ' | '29 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum limit of individual homogeneous loans collective evaluation for impairment and excluded from impaired loan disclosures | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income that would have been recorded for nonperforming loans | 2,500,000 | 2,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Undrawn loan commitments and standby letters of credit | 2,900,000 | ' | 3,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Loans and Leases | $29,660,800,000 | ' | $29,385,500,000 | ' | ' | ' | ' | ' | ' | $61,900,000 | $72,700,000 | $95,900,000 | $89,800,000 | ' | ' | ' |
Period for which troubled debt restructurings with modified terms is performing before ceasing to be classified as impaired loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | ' | ' |
Troubled debt restructuring loans and leases receivable to Performing status | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | ' | ' |
Number of Loans and Leases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 |
Loan_and_Lease_Segment_and_Cla
Loan and Lease Segment and Class Balances Segregated by Borrower Ratings into "One to Three", "Four to Five" and "Six to Nine" (Watch List) Categories (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Loans and Leases | $29,660.80 | $29,385.50 |
1 to 3 Category | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Loans and Leases | 14,116.30 | 13,955.80 |
4 to 5 Category | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Loans and Leases | 14,730.50 | 14,620.20 |
6 to 9 Category (Watch List) | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Loans and Leases | 814 | 809.5 |
Commercial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial and Institutional | 7,738.20 | 7,375.80 |
Commercial Real Estate | 3,018.90 | 2,955.80 |
Lease Financing, net | 892.6 | 975.1 |
Non-U.S. | 1,349.70 | 954.7 |
Other | 281.3 | 358.6 |
Total Loans and Leases | 13,280.70 | 12,620 |
Commercial | 1 to 3 Category | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial and Institutional | 4,730.70 | 4,432.50 |
Commercial Real Estate | 1,150.60 | 1,053.70 |
Lease Financing, net | 458.9 | 685.7 |
Non-U.S. | 523.2 | 442.8 |
Other | 172.7 | 157.7 |
Total Loans and Leases | 7,036.10 | 6,772.40 |
Commercial | 4 to 5 Category | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial and Institutional | 2,860.40 | 2,801.50 |
Commercial Real Estate | 1,709.70 | 1,748.70 |
Lease Financing, net | 429.3 | 285 |
Non-U.S. | 825.6 | 511.9 |
Other | 108.6 | 200.9 |
Total Loans and Leases | 5,933.60 | 5,548 |
Commercial | 6 to 9 Category (Watch List) | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial and Institutional | 147.1 | 141.8 |
Commercial Real Estate | 158.6 | 153.4 |
Lease Financing, net | 4.4 | 4.4 |
Non-U.S. | 0.9 | ' |
Total Loans and Leases | 311 | 299.6 |
Personal | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Residential Real Estate | 10,093.90 | 10,271.30 |
Private Client | 6,247.80 | 6,445.60 |
Other | 38.4 | 48.6 |
Total Loans and Leases | 16,380.10 | 16,765.50 |
Personal | 1 to 3 Category | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Residential Real Estate | 3,124.30 | 3,204.60 |
Private Client | 3,932.50 | 3,957.60 |
Other | 23.4 | 21.2 |
Total Loans and Leases | 7,080.20 | 7,183.40 |
Personal | 4 to 5 Category | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Residential Real Estate | 6,473.60 | 6,563.60 |
Private Client | 2,308.30 | 2,481.20 |
Other | 15 | 27.4 |
Total Loans and Leases | 8,796.90 | 9,072.20 |
Personal | 6 to 9 Category (Watch List) | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Residential Real Estate | 496 | 503.1 |
Private Client | 7 | 6.8 |
Total Loans and Leases | $503 | $509.90 |
Balances_and_Delinquency_Statu
Balances and Delinquency Status of Performing and Nonperforming Loans and Leases by Segment and Class as well as Total Other Real Estate Owned and Nonperforming Asset Balances (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Other Real Estate Owned | $9.80 | $11.90 |
Total Nonperforming Assets | 269.7 | 274.7 |
Total Loans and Leases | 29,660.80 | 29,385.50 |
Commercial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Loans and Leases | 13,280.70 | 12,620 |
Commercial | Commercial and Institutional | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Loans and Leases | 7,738.20 | 7,375.80 |
Commercial | Commercial Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Loans and Leases | 3,018.90 | 2,955.80 |
Commercial | Lease Financing, net | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Loans and Leases | 892.6 | 975.1 |
Commercial | Non-U.S. | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Loans and Leases | 1,349.70 | 954.7 |
Commercial | Other | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Loans and Leases | 281.3 | 358.6 |
Personal | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Loans and Leases | 16,380.10 | 16,765.50 |
Personal | Residential Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Loans and Leases | 10,093.90 | 10,271.30 |
Personal | Private Client | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Loans and Leases | 6,247.80 | 6,445.60 |
Personal | Other | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Loans and Leases | 38.4 | 48.6 |
Performing Financing Receivable | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Current | 29,244.60 | 28,889 |
30-59 Days Past Due | 124.6 | 167.5 |
60-89 Days Past Due | 19.4 | 49.8 |
90 Days or More Past Due | 12.3 | 16.4 |
Total Loans and Leases | 29,400.90 | 29,122.70 |
Performing Financing Receivable | Commercial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Current | 13,158.40 | 12,501.80 |
30-59 Days Past Due | 28 | 9.1 |
60-89 Days Past Due | 8 | 26.7 |
90 Days or More Past Due | 8.6 | 10.1 |
Total Loans and Leases | 13,203 | 12,547.70 |
Performing Financing Receivable | Commercial | Commercial and Institutional | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Current | 7,700.80 | 7,332.30 |
30-59 Days Past Due | 5.5 | 5 |
60-89 Days Past Due | 4.2 | 12.1 |
90 Days or More Past Due | 1.6 | 3.3 |
Total Loans and Leases | 7,712.10 | 7,352.70 |
Performing Financing Receivable | Commercial | Commercial Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Current | 2,934 | 2,881.10 |
30-59 Days Past Due | 22.5 | 4.1 |
60-89 Days Past Due | 3.8 | 14.6 |
90 Days or More Past Due | 7 | 6.8 |
Total Loans and Leases | 2,967.30 | 2,906.60 |
Performing Financing Receivable | Commercial | Lease Financing, net | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Current | 892.6 | 975.1 |
Total Loans and Leases | 892.6 | 975.1 |
Performing Financing Receivable | Commercial | Non-U.S. | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Current | 1,349.70 | 954.7 |
Total Loans and Leases | 1,349.70 | 954.7 |
Performing Financing Receivable | Commercial | Other | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Current | 281.3 | 358.6 |
Total Loans and Leases | 281.3 | 358.6 |
Performing Financing Receivable | Personal | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Current | 16,086.20 | 16,387.20 |
30-59 Days Past Due | 96.6 | 158.4 |
60-89 Days Past Due | 11.4 | 23.1 |
90 Days or More Past Due | 3.7 | 6.3 |
Total Loans and Leases | 16,197.90 | 16,575 |
Performing Financing Receivable | Personal | Residential Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Current | 9,841 | 9,934.40 |
30-59 Days Past Due | 65.7 | 129.3 |
60-89 Days Past Due | 3.2 | 15.6 |
90 Days or More Past Due | 3.1 | 2.9 |
Total Loans and Leases | 9,913 | 10,082.20 |
Performing Financing Receivable | Personal | Private Client | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Current | 6,206.80 | 6,404.20 |
30-59 Days Past Due | 30.9 | 29.1 |
60-89 Days Past Due | 8.2 | 7.5 |
90 Days or More Past Due | 0.6 | 3.4 |
Total Loans and Leases | 6,246.50 | 6,444.20 |
Performing Financing Receivable | Personal | Other | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Current | 38.4 | 48.6 |
Total Loans and Leases | 38.4 | 48.6 |
Nonperforming Financing Receivable | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Loans and Leases | 259.9 | 262.8 |
Nonperforming Financing Receivable | Commercial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Loans and Leases | 77.7 | 72.3 |
Nonperforming Financing Receivable | Commercial | Commercial and Institutional | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Loans and Leases | 26.1 | 23.1 |
Nonperforming Financing Receivable | Commercial | Commercial Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Loans and Leases | 51.6 | 49.2 |
Nonperforming Financing Receivable | Personal | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Loans and Leases | 182.2 | 190.5 |
Nonperforming Financing Receivable | Personal | Residential Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Loans and Leases | 180.9 | 189.1 |
Nonperforming Financing Receivable | Personal | Private Client | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Loans and Leases | $1.30 | $1.40 |
Impaired_Loans_by_Segment_and_
Impaired Loans by Segment and Class (Detail) (USD $) | 3 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | ||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ||
Recorded Investment | $302.40 | ' | $293.40 | ||
Unpaid principal balance | 367.4 | ' | 360.5 | ||
Specific allowance | 11.8 | ' | 10.4 | ||
Average recorded investment | 294.1 | [1] | 259.1 | [1] | ' |
Interest income recognized | 1 | 0.8 | ' | ||
Commercial | ' | ' | ' | ||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ||
Recorded Investment | 105.7 | ' | 99.5 | ||
Unpaid principal balance | 123.9 | ' | 123.2 | ||
Specific allowance | 9.7 | ' | 8.1 | ||
Average recorded investment | 97 | [1] | 97.8 | [1] | ' |
Interest income recognized | 0.4 | 0.2 | ' | ||
Commercial | Commercial and Institutional | ' | ' | ' | ||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ||
With no related specific reserve, recorded investment | 12.2 | ' | 12.2 | ||
With a related specific reserve, recorded investment | 12.3 | ' | 9.6 | ||
With no related specific reserve, unpaid principal balance | 15.4 | ' | 18.1 | ||
With a related specific reserve, unpaid principal balance | 13 | ' | 12.1 | ||
Specific allowance | 3.7 | ' | 3.6 | ||
With no related specific reserve, average recorded investment | 11.4 | [1] | 12.2 | [1] | ' |
With a related specific reserve, average recorded investment | 10 | [1] | 11 | [1] | ' |
With a related specific reserve, interest income recognized | ' | ' | ' | ||
Commercial | Commercial Real Estate | ' | ' | ' | ||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ||
With no related specific reserve, recorded investment | 49.8 | ' | 46.6 | ||
With a related specific reserve, recorded investment | 27 | ' | 26.7 | ||
With no related specific reserve, unpaid principal balance | 58.1 | ' | 57.1 | ||
With a related specific reserve, unpaid principal balance | 33 | ' | 31.5 | ||
Specific allowance | 6 | ' | 4.5 | ||
With no related specific reserve, average recorded investment | 44.8 | [1] | 39.6 | [1] | ' |
With a related specific reserve, average recorded investment | 26.4 | [1] | 30.4 | [1] | ' |
With no related specific reserve, interest income recognized | 0.3 | 0.2 | ' | ||
With a related specific reserve, interest income recognized | ' | ' | ' | ||
Commercial | Lease Financing, net | ' | ' | ' | ||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ||
With no related specific reserve, recorded investment | 4.4 | ' | 4.4 | ||
With no related specific reserve, unpaid principal balance | 4.4 | ' | 4.4 | ||
With no related specific reserve, average recorded investment | 4.4 | [1] | 4.6 | [1] | ' |
With no related specific reserve, interest income recognized | 0.1 | ' | ' | ||
Personal | ' | ' | ' | ||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ||
Recorded Investment | 196.7 | ' | 193.9 | ||
Unpaid principal balance | 243.5 | ' | 237.3 | ||
Specific allowance | 2.1 | ' | 2.3 | ||
Average recorded investment | 197.1 | [1] | 161.3 | [1] | ' |
Interest income recognized | 0.6 | 0.6 | ' | ||
Personal | Residential Real Estate | ' | ' | ' | ||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ||
With no related specific reserve, recorded investment | 190.7 | ' | 185 | ||
With a related specific reserve, recorded investment | 5.1 | ' | 8.1 | ||
With no related specific reserve, unpaid principal balance | 237.3 | ' | 227.8 | ||
With a related specific reserve, unpaid principal balance | 5.3 | ' | 8.7 | ||
Specific allowance | 1.7 | ' | 2.3 | ||
With no related specific reserve, average recorded investment | 189.2 | [1] | 141 | [1] | ' |
With a related specific reserve, average recorded investment | 7.1 | [1] | 9.8 | [1] | ' |
With no related specific reserve, interest income recognized | 0.6 | 0.5 | ' | ||
With a related specific reserve, interest income recognized | ' | ' | ' | ||
Personal | Private Client | ' | ' | ' | ||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ||
With no related specific reserve, recorded investment | 0.5 | ' | 0.8 | ||
With a related specific reserve, recorded investment | 0.4 | ' | ' | ||
With no related specific reserve, unpaid principal balance | 0.5 | ' | 0.8 | ||
With a related specific reserve, unpaid principal balance | 0.4 | ' | ' | ||
Specific allowance | 0.4 | ' | ' | ||
With no related specific reserve, average recorded investment | 0.7 | [1] | 9.4 | [1] | ' |
With a related specific reserve, average recorded investment | 0.1 | [1] | 1.1 | [1] | ' |
With no related specific reserve, interest income recognized | ' | 0.1 | ' | ||
With a related specific reserve, interest income recognized | ' | ' | ' | ||
[1] | 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_Mod
Number of Loans and Leases Modified in TDRs and Total Recorded Investments and Unpaid Principal Balances (Detail) (Class of Financing Receivable, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Contract | Contract | |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Loans and Leases | 36 | 61 |
Recorded Investment | $4.20 | $57.10 |
Unpaid Principal Balance | 4.5 | 59.1 |
Commercial | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Loans and Leases | 1 | 8 |
Recorded Investment | 0.7 | 2.6 |
Unpaid Principal Balance | 0.7 | 3.2 |
Commercial | Commercial and Institutional | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Loans and Leases | ' | 7 |
Recorded Investment | ' | 2.5 |
Unpaid Principal Balance | ' | 3.1 |
Commercial | Commercial Real Estate Portfolio Segment | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Loans and Leases | 1 | 1 |
Recorded Investment | 0.7 | 0.1 |
Unpaid Principal Balance | 0.7 | 0.1 |
Personal | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Loans and Leases | 35 | 53 |
Recorded Investment | 3.5 | 54.5 |
Unpaid Principal Balance | 3.8 | 55.9 |
Personal | Residential Real Estate | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Loans and Leases | 34 | 48 |
Recorded Investment | 3.5 | 41.7 |
Unpaid Principal Balance | 3.8 | 43.1 |
Personal | Private Client | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Loans and Leases | 1 | 5 |
Recorded Investment | ' | 12.8 |
Unpaid Principal Balance | ' | $12.80 |
Changes_in_Allowance_for_Credi
Changes in Allowance for Credit Losses by Segment (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Balance at Beginning of Period | $307.90 | $327.60 |
Charge-Offs | -11.5 | -12.6 |
Recoveries | 10 | 3.9 |
Net (Charge-Offs) Recoveries | -1.5 | -8.7 |
Provision for Credit Losses | 3 | 5 |
Effect of Foreign Exchange Rates | ' | -0.1 |
Balance at End of Period | 309.4 | 323.8 |
Commercial | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Balance at Beginning of Period | 168 | 194.2 |
Charge-Offs | -4.2 | -0.9 |
Recoveries | 8.5 | 1.8 |
Net (Charge-Offs) Recoveries | 4.3 | 0.9 |
Provision for Credit Losses | 0.8 | -7.9 |
Effect of Foreign Exchange Rates | ' | -0.1 |
Balance at End of Period | 173.1 | 187.1 |
Personal | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Balance at Beginning of Period | 139.9 | 133.4 |
Charge-Offs | -7.3 | -11.7 |
Recoveries | 1.5 | 2.1 |
Net (Charge-Offs) Recoveries | -5.8 | -9.6 |
Provision for Credit Losses | 2.2 | 12.9 |
Balance at End of Period | $136.30 | $136.70 |
Allowances_for_Credit_Losses_a
Allowances for Credit Losses and Recorded Investments in Loans and Leases by Segment (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Specifically Evaluated for Impairment | $302.40 | $293.40 | ' | ' |
Evaluated for Inherent Impairment | 29,358.40 | 29,092.10 | ' | ' |
Total Loans and Leases | 29,660.80 | 29,385.50 | ' | ' |
Specifically Evaluated for Impairment | 11.8 | 10.4 | ' | ' |
Evaluated for Inherent Impairment | 267.4 | 267.7 | ' | ' |
Allowance Assigned to Loans and Leases | 279.2 | 278.1 | ' | ' |
Allowance for Undrawn Exposures Commitments and Standby Letters of Credit | 30.2 | 29.8 | ' | ' |
Total Allowance for Credit Losses | 309.4 | 307.9 | 323.8 | 327.6 |
Commercial | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Specifically Evaluated for Impairment | 105.7 | 99.5 | ' | ' |
Evaluated for Inherent Impairment | 13,175 | 12,520.50 | ' | ' |
Total Loans and Leases | 13,280.70 | 12,620 | ' | ' |
Specifically Evaluated for Impairment | 9.7 | 8.1 | ' | ' |
Evaluated for Inherent Impairment | 136.4 | 132.8 | ' | ' |
Allowance Assigned to Loans and Leases | 146.1 | 140.9 | ' | ' |
Allowance for Undrawn Exposures Commitments and Standby Letters of Credit | 27 | 27.1 | ' | ' |
Total Allowance for Credit Losses | 173.1 | 168 | 187.1 | 194.2 |
Personal | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Specifically Evaluated for Impairment | 196.7 | 193.9 | ' | ' |
Evaluated for Inherent Impairment | 16,183.40 | 16,571.60 | ' | ' |
Total Loans and Leases | 16,380.10 | 16,765.50 | ' | ' |
Specifically Evaluated for Impairment | 2.1 | 2.3 | ' | ' |
Evaluated for Inherent Impairment | 131 | 134.9 | ' | ' |
Allowance Assigned to Loans and Leases | 133.1 | 137.2 | ' | ' |
Allowance for Undrawn Exposures Commitments and Standby Letters of Credit | 3.2 | 2.7 | ' | ' |
Total Allowance for Credit Losses | $136.30 | $139.90 | $136.70 | $133.40 |
Pledged_Assets_Additional_Info
Pledged Assets - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' | ' |
Amount of securities and loans pledged | $30,300,000,000 | ' | $32,400,000,000 |
Fair value of accepted collateral | 500,000,000 | ' | 500,000,000 |
Amount of securities repledged or sold collateral | 0 | ' | 0 |
Average deposits maintained to meet Federal Reserve Bank reserve requirements | 1,200,000,000 | 900,000,000 | ' |
US Government Corporations and Agencies Securities | ' | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' | ' |
Amount of securities and loans pledged | 20,700,000,000 | ' | 22,600,000,000 |
Obligations of States and Political Subdivisions | ' | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' | ' |
Amount of securities and loans pledged | 173,300,000 | ' | 222,700,000 |
Loans | ' | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' | ' |
Amount of securities and loans pledged | 9,400,000,000 | ' | 9,600,000,000 |
Collateral Requirements | ' | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' | ' |
Amount of securities and loans pledged | 3,200,000,000 | ' | 5,000,000,000 |
Available for Sale Investment Securities | ' | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' | ' |
Amount of securities and loans pledged | $735,500,000 | ' | $915,300,000 |
Carrying_Amounts_of_Goodwill_D
Carrying Amounts of Goodwill (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Goodwill [Line Items] | ' | ' |
Total Goodwill | $541.60 | $540.70 |
Corporate & Institutional Services | ' | ' |
Goodwill [Line Items] | ' | ' |
Total Goodwill | 470.1 | 469.2 |
Wealth Management | ' | ' |
Goodwill [Line Items] | ' | ' |
Total Goodwill | $71.50 | $71.50 |
Other_Intangible_Assets_Subjec
Other Intangible Assets Subject to Amortization (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | $198.70 | $198.20 |
Less: Accumulated Amortization | 120.5 | 115.2 |
Net Book Value | $78.20 | $83 |
Goodwill_and_Other_Intangibles2
Goodwill and Other Intangibles - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Goodwill and Intangible Assets Disclosure [Line Items] | ' | ' |
Estimated future amortization expense for 2014 | $14.80 | ' |
Estimated future amortization expense for 2015 | 11.9 | ' |
Estimated future amortization expense for 2016 | 9.3 | ' |
Estimated future amortization expense for 2017 | 9.3 | ' |
Estimated future amortization expense for 2018 | 8.6 | ' |
Other Intangible Assets | ' | ' |
Goodwill and Intangible Assets Disclosure [Line Items] | ' | ' |
Amortization expense related to other intangible assets | $4.90 | $5.20 |
Earnings_Contribution_of_North
Earnings Contribution of Northern Trust's Business Units (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Trust, Investment and Other Servicing Fees | $679.50 | $630.70 | ||
Foreign Exchange Trading Income | 50.1 | 59.5 | ||
Other Noninterest Income | 65.2 | 60.1 | ||
Net Interest Income (FTE) | 254.4 | [1] | 233.7 | [1] |
Revenue | 1,049.20 | [1] | 984 | [1] |
Provision for Credit Losses | 3 | 5 | ||
Noninterest Expense | 768 | 728.9 | ||
Income (Loss) before Income Taxes | 278.2 | [1] | 250.1 | [1] |
Provision (Benefit) for Income Taxes | 96.8 | [1] | 86.1 | [1] |
Net Income | 181.4 | 164 | ||
Percentage of Consolidated Net Income | 100.00% | 100.00% | ||
Average Assets | 100,243.50 | 91,569.30 | ||
Corporate & Institutional Services | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Trust, Investment and Other Servicing Fees | 379.2 | 348.7 | ||
Foreign Exchange Trading Income | 48.1 | 58.2 | ||
Other Noninterest Income | 44.4 | 40.2 | ||
Net Interest Income (FTE) | 73.7 | [1] | 64.1 | [1] |
Revenue | 545.4 | [1] | 511.2 | [1] |
Provision for Credit Losses | 1.2 | -2.7 | ||
Noninterest Expense | 423.5 | 398.7 | ||
Income (Loss) before Income Taxes | 120.7 | [1] | 115.2 | [1] |
Provision (Benefit) for Income Taxes | 34.8 | [1] | 35.9 | [1] |
Net Income | 85.9 | 79.3 | ||
Percentage of Consolidated Net Income | 47.00% | 48.00% | ||
Average Assets | 57,252.40 | 51,316.80 | ||
Wealth Management | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Trust, Investment and Other Servicing Fees | 300.3 | 282 | ||
Foreign Exchange Trading Income | 2 | 1.3 | ||
Other Noninterest Income | 22.7 | 17.2 | ||
Net Interest Income (FTE) | 135 | [1] | 147.8 | [1] |
Revenue | 460 | [1] | 448.3 | [1] |
Provision for Credit Losses | 1.8 | 7.7 | ||
Noninterest Expense | 318.8 | 301.8 | ||
Income (Loss) before Income Taxes | 139.4 | [1] | 138.8 | [1] |
Provision (Benefit) for Income Taxes | 52.6 | [1] | 52.8 | [1] |
Net Income | 86.8 | 86 | ||
Percentage of Consolidated Net Income | 48.00% | 52.00% | ||
Average Assets | 22,528.70 | 22,861.40 | ||
Treasury and Other | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Other Noninterest Income | -1.9 | 2.7 | ||
Net Interest Income (FTE) | 45.7 | [1] | 21.8 | [1] |
Revenue | 43.8 | [1] | 24.5 | [1] |
Noninterest Expense | 25.7 | 28.4 | ||
Income (Loss) before Income Taxes | 18.1 | [1] | -3.9 | [1] |
Provision (Benefit) for Income Taxes | 9.4 | [1] | -2.6 | [1] |
Net Income | 8.7 | -1.3 | ||
Percentage of Consolidated Net Income | 5.00% | ' | ||
Average Assets | $20,462.40 | $17,391.10 | ||
[1] | Stated on a fully taxable equivalent basis (FTE). Total consolidated includes FTE adjustments of $8.7 million for 2014 and $7.6 million for 2013. |
Earnings_Contribution_of_North1
Earnings Contribution of Northern Trust's Business Units (Parenthetical) (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Fully taxable equivalent basis adjustments | $8.70 | $7.60 |
Components_of_Accumulated_Othe
Components of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning Balance | ($244.30) | ($283) |
Net Change | 8.2 | -1.1 |
Ending Balance | -236.1 | -284.1 |
Net Unrealized Gains (Losses) on Securities Available for Sale | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning Balance | 6 | 101 |
Net Change | 4.5 | 1.3 |
Ending Balance | 10.5 | 102.3 |
Net Unrealized Gains (Losses) on Cash Flow Hedge Designations | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning Balance | 2.9 | -1.4 |
Net Change | 1.6 | -5.2 |
Ending Balance | 4.5 | -6.6 |
Net Foreign Currency Adjustments | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning Balance | 7.1 | 10.5 |
Net Change | -1.3 | -4.2 |
Ending Balance | 5.8 | 6.3 |
Net Pension and Other Postretirement Benefit Adjustments | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning Balance | -260.3 | -393.1 |
Net Change | 3.4 | 7 |
Ending Balance | ($256.90) | ($386.10) |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) Changes During Period (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Other Comprehensive Income (Loss) | $8.20 | ($1.10) |
Net Unrealized Gains (Losses) on Securities Available for Sale | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Before Tax | 7.3 | 2.1 |
Tax Effect | -2.8 | -0.8 |
Other Comprehensive Income (Loss) | 4.5 | 1.3 |
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 | 1.5 | 2.1 |
Tax Effect | -0.6 | -0.8 |
Other Comprehensive Income (Loss) | 0.9 | 1.3 |
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 | 5.7 | 0.2 |
Tax Effect | -2.2 | -0.1 |
Other Comprehensive Income (Loss) | 3.5 | 0.1 |
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 | 0.1 | -0.2 |
Tax Effect | ' | 0.1 |
Other Comprehensive Income (Loss) | 0.1 | -0.1 |
Net Unrealized Gains (Losses) on Cash Flow Hedge Designations | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Before Tax | 2.6 | -7.4 |
Tax Effect | -1 | 2.2 |
Other Comprehensive Income (Loss) | 1.6 | -5.2 |
Net Unrealized Gains (Losses) on Cash Flow Hedge Designations | Reclassification Adjustment for (Gains) Losses Included in Net Income | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Before Tax | 0.2 | 1.8 |
Tax Effect | -0.1 | -0.7 |
Other Comprehensive Income (Loss) | 0.1 | 1.1 |
Net Unrealized Gains (Losses) on Cash Flow Hedge Designations | Unrealized Gains (Losses) on Cash Flow Hedges | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Before Tax | 2.4 | -9.2 |
Tax Effect | -0.9 | 2.9 |
Other Comprehensive Income (Loss) | 1.5 | -6.3 |
Net Foreign Currency Adjustments | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Before Tax | -4.7 | 26.4 |
Tax Effect | 3.4 | -30.6 |
Other Comprehensive Income (Loss) | -1.3 | -4.2 |
Net Foreign Currency Adjustments | Foreign Currency Translation Adjustments | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Before Tax | 6.5 | -56.4 |
Tax Effect | -0.7 | 0.5 |
Other Comprehensive Income (Loss) | 5.8 | -55.9 |
Net Foreign Currency Adjustments | Net Investment Hedge Gains (Losses) | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Before Tax | -10.6 | 82.8 |
Tax Effect | 4.1 | -31.1 |
Other Comprehensive Income (Loss) | -6.5 | 51.7 |
Net Foreign Currency Adjustments | Long Term Intra Entity Foreign Currency Transaction Losses | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Before Tax | -0.6 | ' |
Other Comprehensive Income (Loss) | -0.6 | ' |
Net Pension and Other Postretirement Benefit Adjustments | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Before Tax | 6.4 | 11.2 |
Tax Effect | -3 | -4.2 |
Other Comprehensive Income (Loss) | 3.4 | 7 |
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 | 11.2 |
Tax Effect | -3 | -4.2 |
Other Comprehensive Income (Loss) | $3.40 | $7 |
Reclassification_Adjustments_o
Reclassification Adjustments out of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Available for Sale Investment Securities | Realized (Gains) Losses on Securities Available for Sale | Investment Security Gains (Losses), net | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' |
Gross Reclassification Adjustment | $0.10 |
CASH FLOW HEDGES | Foreign Exchange Contracts | Other Operating Income | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' |
Gross Reclassification Adjustment | 0.2 |
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 (Gain) Loss | -0.4 |
Amortization of Prior Service Cost | $6.80 |
Computations_of_Net_Income_Per
Computations of Net Income Per Common Share (Detail) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Basic Net Income Per Common Share | ' | ' |
Average Number of Common Shares Outstanding | 237,208,151 | 239,167,559 |
Net Income Applicable to Common Stock | $181.40 | $164 |
Less: Earnings Allocated to Participating Securities | 2.9 | 2.5 |
Earnings Allocated to Common Shares Outstanding | 178.5 | 161.5 |
Basic Net Income Per Common Share | $0.75 | $0.68 |
Diluted Net Income Per Common Share | ' | ' |
Average Number of Common Shares Outstanding | 237,208,151 | 239,167,559 |
Plus: Dilutive Effect of Share-based Compensation | 1,842,563 | 1,021,656 |
Average Common and Potential Common Shares | 239,050,714 | 240,189,215 |
Earnings Allocated to Common and Potential Common Shares | $178.50 | $161.50 |
Diluted Net Income Per Common Share | $0.75 | $0.67 |
Net_Income_Per_Common_Share_Co2
Net Income Per Common Share Computations - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Common stock equivalents not included in the computation of diluted earnings per share because their inclusion would have been antidilutive | 1,997,337 | 4,603,526 |
Components_of_Net_Interest_Inc
Components of Net Interest Income (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Interest Income | ' | ' |
Loans and Leases | $182.90 | $187.60 |
Securities - Taxable | 69.5 | 58.2 |
- Non-Taxable | 2.2 | 3.3 |
Interest-Bearing Deposits with Banks | 32.1 | 35 |
Federal Reserve Deposits and Other | 8.7 | 2.6 |
Total Interest Income | 295.4 | 286.7 |
Interest Expense | ' | ' |
Deposits | 20.1 | 29.1 |
Federal Funds Purchased | 0.3 | 0.3 |
Securities Sold Under Agreements to Repurchase | 0.1 | 0.1 |
Other Borrowings | 0.7 | 0.7 |
Senior Notes | 17.5 | 19.2 |
Long-Term Debt | 10.4 | 10.6 |
Floating Rate Capital Debt | 0.6 | 0.6 |
Total Interest Expense | 49.7 | 60.6 |
Net Interest Income | $245.70 | $226.10 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Taxes [Line Items] | ' | ' |
Income tax expense | $88.10 | $78.50 |
Effective tax rate | 32.70% | 32.40% |
Components_of_Companys_Net_Per
Components of Company's Net Periodic Benefit Cost (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
U.S. Plan | ' | ' |
Defined Benefit plan Net periodic benefit cost | ' | ' |
Service Cost | $8.20 | $7.60 |
Interest Cost | 11.1 | 10.5 |
Expected Return on Plan Assets | -24.4 | -23.1 |
Amortization | ' | ' |
Net Actuarial (Gain) Loss | -0.1 | 10.4 |
Prior Service Cost | 5.4 | -0.1 |
Net Periodic Pension Expense (Benefit) | 0.2 | 5.3 |
Non U.S. Plans | ' | ' |
Defined Benefit plan Net periodic benefit cost | ' | ' |
Interest Cost | 1.7 | 1.7 |
Expected Return on Plan Assets | -1.7 | -1.5 |
Amortization | ' | ' |
Net Actuarial (Gain) Loss | -0.4 | 0.1 |
Net Periodic Pension Expense (Benefit) | -0.4 | 0.3 |
Supplemental Plan | ' | ' |
Defined Benefit plan Net periodic benefit cost | ' | ' |
Service Cost | 0.8 | 0.4 |
Interest Cost | 1.2 | 1.1 |
Amortization | ' | ' |
Net Actuarial (Gain) Loss | 0.1 | 1.7 |
Prior Service Cost | 1.5 | 0.1 |
Net Periodic Pension Expense (Benefit) | 3.6 | 3.3 |
Other Postretirement Plan | ' | ' |
Defined Benefit plan Net periodic benefit cost | ' | ' |
Interest Cost | 0.4 | 0.3 |
Amortization | ' | ' |
Net Actuarial (Gain) Loss | ' | -0.3 |
Prior Service Cost | -0.1 | -0.7 |
Net Periodic Pension Expense (Benefit) | $0.30 | ($0.70) |
ShareBased_Compensation_Plans_1
Share-Based Compensation Plans - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-Based Compensation Expense | $23.10 | $20.50 |
Stock Options | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock options granted | 386,749 | ' |
Stock granted, total grant-date fair value | 6.3 | ' |
Share-Based Compensation Expense | 6.4 | 6.9 |
Stock Options | Retirement Eligible Employees | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-Based Compensation Expense | 3 | 2.1 |
Restricted Stock Unit Awards | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock granted, total grant-date fair value | 60.8 | ' |
Stock unit awards granted | 999,862 | ' |
Share-Based Compensation Expense | 14.1 | 12.4 |
Restricted Stock Unit Awards | Fully Vested Restricted Stock Unit Grants | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-Based Compensation Expense | 1.4 | 1.5 |
Performance Stock Units | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock granted, total grant-date fair value | 15.2 | ' |
Stock unit awards granted | 249,618 | ' |
Share-Based Compensation Expense | $2.60 | $1.20 |
Compensation_Expense_for_Share
Compensation Expense for Share-Based Payment Arrangements and Associated Tax Impacts (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-Based Compensation Expense | $23.10 | $20.50 |
Tax Benefits Recognized | 8.7 | 7.7 |
Restricted Stock Unit Awards | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-Based Compensation Expense | 14.1 | 12.4 |
Stock Options | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-Based Compensation Expense | 6.4 | 6.9 |
Performance Stock Units | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-Based Compensation Expense | $2.60 | $1.20 |
Variable_Interest_Entities_Add
Variable Interest Entities - Additional Information (Detail) (USD $) | 3 Months Ended | ||||||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Accounting Standards Update 2014-01 | Tax Credit Structures | Tax Credit Structures | Leveraged Leasing Transactions | Leveraged Leasing Transactions | Leveraged Leasing Transactions | Leveraged Leasing Transactions | Leveraged Leasing Transactions | Leveraged Leasing Transactions | |||
Lower Limit | Lower Limit | Upper Limit | Upper Limit | ||||||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Funding of asset's cost via an equity interest | ' | ' | ' | ' | ' | ' | ' | 20.00% | 20.00% | 30.00% | 30.00% |
Funding of asset's cost via third party non recourse debt holders | ' | ' | ' | ' | ' | ' | ' | 70.00% | 70.00% | 80.00% | 80.00% |
Carrying amounts | ' | ' | ' | $215.30 | $222.30 | $635.10 | $671.20 | ' | ' | ' | ' |
Exposure to loss from liquidity arrangements and obligations to purchase assets | ' | ' | ' | 0 | ' | 0 | ' | ' | ' | ' | ' |
Liabilities related to unfunded commitments | ' | ' | ' | 22.4 | 19.8 | ' | ' | ' | ' | ' | ' |
Affordable housing tax credits and other tax benefits | ' | ' | ' | 14.8 | ' | ' | ' | ' | ' | ' | ' |
Provision for Income Taxes | 88.1 | 78.5 | 1.1 | ' | ' | ' | ' | ' | ' | ' | ' |
Income before income taxes | $269.50 | $242.50 | $0.20 | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent_Liabilities_Additio
Contingent Liabilities - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Dec. 31, 2007 | |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Standby letters of credit outstanding | $4,400,000,000 | $4,500,000,000 | ' | ' | ' | ' | ' |
Minimum securities lending related collateral percentage | 100.00% | ' | ' | ' | ' | ' | ' |
Possible loss in future periods in excess of accrual | 130,000,000 | ' | ' | ' | ' | ' | ' |
Legal Settlement Charge | ' | 19,200,000 | ' | ' | ' | ' | ' |
Gain on redemption of Visa common stock | ' | ' | ' | ' | ' | 167,900,000 | ' |
Remaining Visa shares held by Northern Trust, original cost basis | ' | ' | ' | ' | ' | 0 | ' |
Visa indemnified litigation benefit (charges) recorded | ' | ' | 23,100,000 | 33,000,000 | 17,800,000 | 76,100,000 | -150,000,000 |
Fair value of contingent consideration | ' | 55,400,000 | ' | ' | ' | ' | ' |
Settlement of contingent consideration | 55,300,000 | ' | ' | ' | ' | ' | ' |
Indemnification Agreement | ' | ' | ' | ' | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Collateralized securities loaned, subject to indemnification | 95,400,000,000 | 82,700,000,000 | ' | ' | ' | ' | ' |
Credit loss liability | $0 | $0 | ' | ' | ' | ' | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | |
Net Investment Hedges | Net Investment Hedges | Client Related and Trading | Client Related and Trading | ||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Derivative assets recorded on the consolidated balance sheet, reduced as a result of master netting agreements | $1,100,000,000 | ' | $1,200,000,000 | ' | ' | ' | ' |
Derivative liabilities recorded on the consolidated balance sheet, reduced as a result of master netting agreements | 1,100,000,000 | ' | 1,200,000,000 | ' | ' | ' | ' |
Reduction in derivative assets due to cash collateral received from derivative counterparties | 313,600,000 | ' | 210,700,000 | ' | ' | ' | ' |
Reduction in derivative liabilities due to cash collateral deposited with derivative counterparties | 364,900,000 | ' | 767,700,000 | ' | ' | ' | ' |
This amount represents additional cash collateral received from derivative counterparties not offset against derivative assets | 56,800,000 | ' | 36,400,000 | ' | ' | ' | ' |
This amount represents additional cash collateral deposited with derivative counterparties not offset against derivative liabilities | 81,800,000 | ' | 39,300,000 | ' | ' | ' | ' |
Securities posted as collateral | 27,600,000 | ' | ' | ' | ' | ' | ' |
Aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a liability position | 348,200,000 | ' | 257,300,000 | ' | ' | ' | ' |
Collateral deposited with derivative counterparties for derivatives instruments with credit-risk-related contingent features that are in a liability position | 316,600,000 | ' | 197,000,000 | ' | ' | ' | ' |
Termination payments that could have been required for derivative instruments with credit-risk-related contingent features | 31,600,000 | ' | 60,300,000 | ' | ' | ' | ' |
Percentage of derivatives outstanding related to client-related and trading activities | ' | ' | ' | ' | ' | 96.00% | 96.00% |
Sterling denominated debt designated as hedges of foreign exchange risk | ' | ' | ' | 250,600,000 | 259,100,000 | ' | ' |
Changes recorded in the fair value of the hedged items in a fair value hedge | 0 | -300,000 | ' | ' | ' | ' | ' |
The net gain/loss recognized in earnings during the period representing the amount of hedge ineffectiveness for fair value hedges of available for sale investment securities, senior notes, or subordinated debt | 0 | -200,000 | ' | ' | ' | ' | ' |
Maximum length of time being hedged for exposure to variability in future cash flows of forecasted foreign currency denominated transactions | '23 months | ' | ' | ' | ' | ' | ' |
The net gain/loss recognized in earnings during the period representing the amount of hedge ineffectiveness cash flow hedges | 0 | 0 | ' | ' | ' | ' | ' |
Net foreign exchange contract gains (losses) reclassified from AOCI | 0 | 0 | ' | ' | ' | ' | ' |
Estimated net gain (loss) to be reclassified into earnings within the next twelve months relating to cash flow hedges | 5,200,000 | ' | ' | ' | ' | ' | ' |
Ineffectiveness from net investment hedges | $0 | $0 | ' | ' | ' | ' | ' |
Notional_and_Fair_Value_Amount
Notional and Fair Value Amounts of Client-related and Trading Derivative Financial Instruments (Detail) (Client Related and Trading, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Notional Value | $245,109.70 | $248,136.70 |
Fair Value Asset | 1,970.90 | 2,967.50 |
Fair Value Liability | 1,978 | 2,963.20 |
Foreign Exchange Contracts | ' | ' |
Derivative [Line Items] | ' | ' |
Notional Value | 239,970 | 243,135 |
Fair Value Asset | 1,854.20 | 2,844.70 |
Fair Value Liability | 1,866.70 | 2,846.20 |
Interest Rate Contracts | ' | ' |
Derivative [Line Items] | ' | ' |
Notional Value | 5,139.70 | 5,001.70 |
Fair Value Asset | 116.7 | 122.8 |
Fair Value Liability | $111.30 | $117 |
Gains_and_Losses_Recorded_in_C
Gains and Losses Recorded in Consolidated Statement of Income Related to Client Related and Trading Derivative Financial Instruments (Detail) (Client Related and Trading, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Derivative Gain/(Loss) Recognized in Income | $52 | $62.80 |
Foreign Exchange Contracts | Foreign Exchange Trading Income | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Derivative Gain/(Loss) Recognized in Income | 50.1 | 59.5 |
Interest Rate Contracts | Security Commissions and Trading Income | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Derivative Gain/(Loss) Recognized in Income | $1.90 | $3.30 |
Types_and_Classifications_of_D
Types and Classifications of Derivative Instruments Designated as Hedges (Detail) (Asset And Liability Management, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Notional Value | $6,554.80 | $6,545.80 |
Fair Value Asset | 122.9 | 135.1 |
Fair Value Liability | 65.9 | 136.5 |
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 | 87 | 83.6 |
Fair Value Liability | 8.3 | 33.4 |
FAIR VALUE HEDGES | Available for Sale Investment Securities | Interest Rate Swap Contracts | ' | ' |
Derivative [Line Items] | ' | ' |
Notional Value | 3,219.40 | 3,296.90 |
Fair Value Asset | 24.7 | 31.5 |
Fair Value Liability | 35.2 | 44.8 |
CASH FLOW HEDGES | Forecasted Foreign Currency Denominated Transactions | Foreign Exchange Contracts | ' | ' |
Derivative [Line Items] | ' | ' |
Notional Value | 322.2 | 314 |
Fair Value Asset | 10.3 | 10.2 |
Fair Value Liability | 3 | 5.5 |
Net Investment Hedges | Net Investments in Non-U.S. Affiliates | Foreign Exchange Contracts | ' | ' |
Derivative [Line Items] | ' | ' |
Notional Value | 1,763.20 | 1,684.90 |
Fair Value Asset | 0.9 | 9.8 |
Fair Value Liability | $19.40 | $52.80 |
Gains_and_Losses_Recorded_in_C1
Gains and Losses Recorded in Consolidated Statement of Income Related to Fair Value Hedges (Detail) (Asset And Liability Management, FAIR VALUE HEDGES, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Derivative Gain/(Loss) Recognized in Income | $20.40 | $2.70 |
Available for Sale Investment Securities | Interest Rate Swap Contracts | Interest Income | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Derivative Gain/(Loss) Recognized in Income | -12.1 | 3.4 |
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 | $32.50 | ($0.70) |
Cash_Flow_Hedge_Derivative_Gai
Cash Flow Hedge Derivative Gains and Losses Recognized in AOCI and the Amounts Reclassified to Earnings (Detail) (Asset And Liability Management, Foreign Exchange Contracts, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Net Gain/(Loss) Recognized in AOCI | $2.40 | ($9.20) |
Net Gain/(Loss) Reclassified from AOCI to Earnings | 0.6 | -1.8 |
Net Gain/(Loss) Reclassified from AOCI to Earnings | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Other Operating Income | 0.8 | -0.7 |
Other Operating Expense | ($0.20) | ($1.10) |
Net_Investment_Hedge_Gains_and
Net Investment Hedge Gains and Losses Recognized in AOCI (Detail) (Net Investment Hedges, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative [Line Items] | ' | ' |
Hedging Instrument Gain/(Loss) Recognized in AOCI (Before Tax) | ($10.60) | $82.80 |
Foreign Exchange Contracts | ' | ' |
Derivative [Line Items] | ' | ' |
Hedging Instrument Gain/(Loss) Recognized in AOCI (Before Tax) | -9 | 66.3 |
Sterling Denominated Subordinated Debt | ' | ' |
Derivative [Line Items] | ' | ' |
Hedging Instrument Gain/(Loss) Recognized in AOCI (Before Tax) | ($1.60) | $16.50 |
Types_of_Risk_Management_Deriv
Types of Risk Management Derivative Instruments Not Formally Designated as Hedges and Their Notional Amounts and Fair Values (Detail) (Nondesignated, Foreign Exchange Contracts, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Nondesignated | Foreign Exchange Contracts | ' | ' |
Derivative [Line Items] | ' | ' |
Notional Value | $182.60 | $168.80 |
Fair Value Asset | 0.7 | 1 |
Fair Value Liability | $1.30 | $1.20 |
Gains_and_Losses_Recorded_in_C2
Gains and Losses Recorded in Consolidated Statement of Income related to Derivative Instruments Not Formally Designated as Hedges (Detail) (Nondesignated, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Derivative Gain/(Loss) Recognized in Income | ($0.70) | ($3) |
Credit Default Swap Contracts | Others Operating Income | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Derivative Gain/(Loss) Recognized in Income | ' | -0.1 |
Foreign Exchange Contracts | Others Operating Income | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Derivative Gain/(Loss) Recognized in Income | ($0.70) | ($2.90) |
Offsetting_of_Derivative_Asset
Offsetting of Derivative Assets and of Securities Purchased Under Agreements to Resell Within Consolidated Balance Sheet (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Derivatives | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Gross Recognized Assets | $2,094.50 | [1] | $3,103.60 | [1] |
Gross Amounts Offset | 1,393.70 | [1] | 1,369 | [1] |
Net Amount Presented | 700.8 | [1] | 1,734.60 | [1] |
Gross Amounts Not Offset | ' | [1] | ' | [1] |
Net Amount | 700.8 | [1],[2] | 1,734.60 | [1],[2] |
Derivatives | Subject to Master Netting Arrangement | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Gross Recognized Assets | 1,805.50 | [1] | 2,850.40 | [1] |
Gross Amounts Offset | 1,393.70 | [1] | 1,369 | [1] |
Net Amount Presented | 411.8 | [1] | 1,481.40 | [1] |
Gross Amounts Not Offset | ' | [1] | ' | [1] |
Net Amount | 411.8 | [1],[2] | 1,481.40 | [1],[2] |
Derivatives | Not Subject to Master Netting Arrangement | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Gross Recognized Assets | 289 | [1] | 253.2 | [1] |
Gross Amounts Offset | ' | [1] | ' | [1] |
Net Amount Presented | 289 | [1] | 253.2 | [1] |
Gross Amounts Not Offset | ' | [1] | ' | [1] |
Net Amount | 289 | [1],[2] | 253.2 | [1],[2] |
Derivatives | Foreign Exchange Contracts | Over the Counter Derivative | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Gross Recognized Assets | 1,577.10 | [1] | 2,612.50 | [1] |
Gross Amounts Offset | 965.7 | [1] | 1,073.30 | [1] |
Net Amount Presented | 611.4 | [1] | 1,539.20 | [1] |
Gross Amounts Not Offset | ' | [1] | ' | [1] |
Net Amount | 611.4 | [1],[2] | 1,539.20 | [1],[2] |
Derivatives | Interest Rate Swaps | Over the Counter Derivative | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Gross Recognized Assets | 217.9 | [1] | 228.8 | [1] |
Gross Amounts Offset | 41.7 | [1] | 47.5 | [1] |
Net Amount Presented | 176.2 | [1] | 181.3 | [1] |
Gross Amounts Not Offset | ' | [1] | ' | [1] |
Net Amount | 176.2 | [1],[2] | 181.3 | [1],[2] |
Derivatives | Interest Rate Swaps | Exchange Cleared | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Gross Recognized Assets | 10.5 | [1] | 9.1 | [1] |
Gross Amounts Offset | 5.7 | [1] | 9.1 | [1] |
Net Amount Presented | 4.8 | [1] | ' | [1] |
Gross Amounts Not Offset | ' | [1] | ' | [1] |
Net Amount | 4.8 | [1],[2] | ' | [1],[2] |
Derivatives | Cross Product Netting Adjustment | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Gross Recognized Assets | ' | [1] | ' | [1] |
Gross Amounts Offset | 67 | [1] | 28.4 | [1] |
Net Amount Presented | ' | [1] | ' | [1] |
Gross Amounts Not Offset | ' | [1] | ' | [1] |
Net Amount | ' | [1],[2] | ' | [1],[2] |
Derivatives | Cross Product Collateral Adjustment | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Gross Recognized Assets | ' | [1] | ' | [1] |
Gross Amounts Offset | 313.6 | [1] | 210.7 | [1] |
Net Amount Presented | ' | [1] | ' | [1] |
Gross Amounts Not Offset | ' | [1] | ' | [1] |
Net Amount | ' | [1],[2] | ' | [1],[2] |
Securities Purchased under Agreements to Resell | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Gross Recognized Assets | 500 | [3] | 500 | [3] |
Gross Amounts Offset | ' | [3] | ' | [3] |
Net Amount Presented | 500 | [3] | 500 | [3] |
Gross Amounts Not Offset | 500 | [3] | 500 | [3] |
Net Amount | ' | [2],[3] | ' | [2],[3] |
[1] | Derivative assets are reported in other assets in the consolidated balance sheet. Other assets (excluding derivative assets) totaled $3,607.1 million and $3,029.4 million as of March 31, 2014 and December 31, 2013, respectively. | |||
[2] | Northern Trust did not possess any cash collateral that was not offset in the consolidated balance sheet that could have been used to offset the net amounts presented in the consolidated balance sheet as of March 31, 2014 and December 31, 2013. | |||
[3] | Securities purchased under agreements to resell are reported in federal funds sold and securities purchased under agreements to resell in the consolidated balance sheet. Federal funds sold totaled $10 million and $29.6 million as of March 31, 2014 and December 31, 2013, respectively. |
Offsetting_of_Derivative_Asset1
Offsetting of Derivative Assets and of Securities Purchased Under Agreements to Resell Within Consolidated Balance Sheet (Parenthetical) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Other Assets (excluding Derivative Assets) | $3,607.10 | $3,029.40 |
Federal Funds Sold | $10 | $29.60 |
Offsetting_of_Derivative_Liabi
Offsetting of Derivative Liabilities and of Securities Sold Under Agreements to Repurchase Within Consolidated Balance Sheet (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Derivative [Line Items] | ' | ' | ||
Net Amounts Presented | $736.60 | $917.30 | ||
Derivatives | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Gross Recognized Liabilities | 2,045.20 | [1] | 3,100.90 | [1] |
Gross Amounts Offset | 1,445 | [1] | 1,926 | [1] |
Net Amounts Presented | 600.2 | [1] | 1,174.90 | [1] |
Gross Amounts Not Offset | ' | [1] | ' | [1] |
Net Amount | 600.2 | [1],[2] | 1,174.90 | [1],[2] |
Derivatives | Subject to Master Netting Arrangement | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Gross Recognized Liabilities | 1,677.10 | [1] | 2,234.20 | [1] |
Gross Amounts Offset | 1,445 | [1] | 1,926 | [1] |
Net Amounts Presented | 232.1 | [1] | 308.2 | [1] |
Gross Amounts Not Offset | ' | [1] | ' | [1] |
Net Amount | 232.1 | [1],[2] | 308.2 | [1],[2] |
Derivatives | Not Subject to Master Netting Arrangement | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Gross Recognized Liabilities | 368.1 | [1] | 866.7 | [1] |
Gross Amounts Offset | ' | [1] | ' | [1] |
Net Amounts Presented | 368.1 | [1] | 866.7 | [1] |
Gross Amounts Not Offset | ' | [1] | ' | [1] |
Net Amount | 368.1 | [1],[2] | 866.7 | [1],[2] |
Derivatives | Foreign Exchange Contracts | Over the Counter Derivative | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Gross Recognized Liabilities | 1,522.30 | [1] | 2,039 | [1] |
Gross Amounts Offset | 965.7 | [1] | 1,073.30 | [1] |
Net Amounts Presented | 556.6 | [1] | 965.7 | [1] |
Gross Amounts Not Offset | ' | [1] | ' | [1] |
Net Amount | 556.6 | [1],[2] | 965.7 | [1],[2] |
Derivatives | Interest Rate Swaps | Over the Counter Derivative | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Gross Recognized Liabilities | 149.1 | [1] | 163.7 | [1] |
Gross Amounts Offset | 41.7 | [1] | 47.5 | [1] |
Net Amounts Presented | 107.4 | [1] | 116.2 | [1] |
Gross Amounts Not Offset | ' | [1] | ' | [1] |
Net Amount | 107.4 | [1],[2] | 116.2 | [1],[2] |
Derivatives | Interest Rate Swaps | Exchange Cleared | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Gross Recognized Liabilities | 5.7 | [1] | 31.5 | [1] |
Gross Amounts Offset | 5.7 | [1] | 9.1 | [1] |
Net Amounts Presented | ' | [1] | 22.4 | [1] |
Gross Amounts Not Offset | ' | [1] | ' | [1] |
Net Amount | ' | [1],[2] | 22.4 | [1],[2] |
Derivatives | Cross Product Netting Adjustment | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Gross Recognized Liabilities | ' | [1] | ' | [1] |
Gross Amounts Offset | 67 | [1] | 28.4 | [1] |
Net Amounts Presented | ' | [1] | ' | [1] |
Gross Amounts Not Offset | ' | [1] | ' | [1] |
Net Amount | ' | [1],[2] | ' | [1],[2] |
Derivatives | Cross Product Collateral Adjustment | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Gross Recognized Liabilities | ' | [1] | ' | [1] |
Gross Amounts Offset | 364.9 | [1] | 767.7 | [1] |
Net Amounts Presented | ' | [1] | ' | [1] |
Gross Amounts Not Offset | ' | [1] | ' | [1] |
Net Amount | ' | [1],[2] | ' | [1],[2] |
Securities Sold under Agreements to Repurchase | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Gross Recognized Liabilities | 736.6 | 917.3 | ||
Gross Amounts Offset | ' | ' | ||
Net Amounts Presented | 736.6 | 917.3 | ||
Gross Amounts Not Offset | 736.6 | 917.3 | ||
Net Amount | ' | [2] | ' | [2] |
[1] | Derivative liabilities are reported in other liabilities in the consolidated balance sheet. Other liabilities (excluding derivative liabilities) totaled $2,608.3 million and $2,338.4 million as of March 31, 2014 and December 31, 2013, respectively. | |||
[2] | Northern Trust did not place any cash collateral with counterparties that was not offset in the consolidated balance sheet that could have been used to offset the net amounts presented in the consolidated balance sheet as of March 31, 2014 and December 31, 2013. |
Offsetting_of_Derivative_Liabi1
Offsetting of Derivative Liabilities and of Securities Sold Under Agreements to Repurchase Within Consolidated Balance Sheet (Parenthetical) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Other liabilities | $2,608.30 | $2,338.40 |