Loans and Leases (Tables)

9 Months Ended

Sep. 30, 2020

Amounts outstanding for loans and leases, by segment and class, are shown in the following table. During the first quarter of 2020, the Corporation implemented a change in the classification of certain loans and leases to specific segments to enhance the consistency of its reporting across various regulatory regimes. As a result, the loan and lease balances as of December 31, 2019 below have been adjusted to conform to the presentation for periods ended after such date. The adjustments generally reflect reclassification of loans from the commercial real estate class to commercial and institutional, residential real estate, and private client classes. There was no impact on total loans and leases previously reported.

TABLE 49: LOANS AND LEASES


(In Millions)	SEPTEMBER 30, 2020		DECEMBER 31, 2019
Commercial
Commercial and Institutional	$	9,524.0	$	9,091.1
Commercial Real Estate	3,373.6		3,104.3
Non-U.S.	1,441.0		1,576.3
Lease Financing, net	30.1		65.6
Other	213.0		164.0
Total Commercial	14,581.7		14,001.3
Personal
Private Client	11,893.0		11,071.4
Residential Real Estate	5,928.3		6,095.0
Non-U.S.	338.7		174.8
Other	24.6		67.1
Total Personal	18,184.6		17,408.3
Total Loans and Leases	$	32,766.3	$	31,409.6

Borrower Ratings

Loan and lease segment and class balances as of September 30, 2020 are provided in the following table, segregated by borrower ratings into “1 to 3,” “4 to 5” and “6 to 9” (watch list and nonaccrual status) categories by year of origination at amortized cost basis. Loans that are held for investment are reported at the principal amount outstanding, net of unearned income.

TABLE 50: CREDIT QUALITY INDICATOR AT AMORTIZED COST BASIS BY ORIGINATION YEAR


September 30, 2020	TERM LOANS AND LEASES																		REVOLVING LOANS	REVOLVING LOANS CONVERTED TO TERM LOANS
(In Millions)	2020		2019		2018		2017		2016		PRIOR						TOTAL
Commercial
Commercial and Institutional
Risk Rating:
1 to 3 Category	$	245.2	$	571.6	$	208.2	$	142.8	$	457.8	$	465.2	$	3,286.6	$	2.0	$	5,379.4
4 to 5 Category	614.0		579.5		379.7		428.4		143.0		180.4		1,346.4		50.1		3,721.5
6 to 9 Category	36.7		134.7		39.0		29.0		38.5		20.5		124.7		—		423.1
Total Commercial and Institutional	895.9		1,285.8		626.9		600.2		639.3		666.1		4,757.7		52.1		9,524.0
Commercial Real Estate
Risk Rating:
1 to 3 Category	359.5		205.7		71.8		40.5		24.9		113.4		126.5		8.9		951.2
4 to 5 Category	453.4		758.0		294.1		110.6		178.5		383.9		72.4		13.7		2,264.6
6 to 9 Category	7.5		55.2		32.5		32.0		1.6		29.0		—		—		157.8
Total Commercial Real Estate	820.4		1,018.9		398.4		183.1		205.0		526.3		198.9		22.6		3,373.6
Non-U.S.
Risk Rating:
1 to 3 Category	790.8		15.9		10.0		10.7		—		—		32.2		—		859.6
4 to 5 Category	259.5		0.6		2.0		—		—		78.6		37.2		1.8		379.7
6 to 9 Category	0.7		23.1		—		—		—		—		177.9		—		201.7
Total Non-U.S.	1,051.0		39.6		12.0		10.7		—		78.6		247.3		1.8		1,441.0
Lease Financing, net
Risk Rating:
1 to 3 Category	—		—		—		—		—		18.5		—		—		18.5
4 to 5 Category	—		—		—		—		—		11.6		—		—		11.6
6 to 9 Category	—		—		—		—		—		—		—		—		—
Total Lease Financing, net	—		—		—		—		—		30.1		—		—		30.1
Other
Risk Rating:
1 to 3 Category	97.7		—		—		—		—		—		—		—		97.7
4 to 5 Category	115.3		—		—		—		—		—		—		—		115.3
6 to 9 Category	—		—		—		—		—		—		—		—		—
Total Other	213.0		—		—		—		—		—		—		—		213.0
Total Commercial	2,980.3		2,344.3		1,037.3		794.0		844.3		1,301.1		5,203.9		76.5		14,581.7
Personal
Private Client
Risk Rating:
1 to 3 Category	466.3		394.3		56.8		67.6		34.2		150.2		5,087.1		126.1		6,382.6
4 to 5 Category	468.4		493.6		129.6		60.0		78.1		80.9		3,952.3		145.7		5,408.6
6 to 9 Category	5.6		0.5		22.4		3.2		—		—		62.1		8.0		101.8
Total Private Client	940.3		888.4		208.8		130.8		112.3		231.1		9,101.5		279.8		11,893.0
Residential Real Estate
Risk Rating:
1 to 3 Category	1,322.9		396.2		60.9		108.9		254.2		738.0		188.2		1.5		3,070.8
4 to 5 Category	619.8		342.5		126.6		184.2		233.8		904.6		270.2		7.4		2,689.1
6 to 9 Category	13.1		9.4		1.7		0.5		2.7		108.7		32.3		—		168.4
Total Residential Real Estate	1,955.8		748.1		189.2		293.6		490.7		1,751.3		490.7		8.9		5,928.3
Non-U.S.
Risk Rating:
1 to 3 Category	8.6		21.5		—		—		—		1.8		28.2		—		60.1
4 to 5 Category	12.8		22.7		11.9		0.5		0.5		8.2		216.7		5.1		278.4
6 to 9 Category	—		—		—		—		—		0.2		—		—		0.2
Total Non-U.S.	21.4		44.2		11.9		0.5		0.5		10.2		244.9		5.1		338.7
Other
Risk Rating:
1 to 3 Category	5.5		—		—		—		—		—		—		—		5.5
4 to 5 Category	19.1		—		—		—		—		—		—		—		19.1
6 to 9 Category	—		—		—		—		—		—		—		—		—
Total Other	24.6		—		—		—		—		—		—		—		24.6
Total Personal	2,942.1		1,680.7		409.9		424.9		603.5		1,992.6		9,837.1		293.8		18,184.6
Total Loans and Leases	$	5,922.4	$	4,025.0	$	1,447.2	$	1,218.9	$	1,447.8	$	3,293.7	$	15,041.0	$	370.3	$	32,766.3

Delinquency Status

The following table provides balances and delinquency status of accrual and nonaccrual loans and leases by segment and class, as well as the other real estate owned and nonaccrual asset balances, as of September 30, 2020 and December 31, 2019.

TABLE 51: DELINQUENCY STATUS


	ACCRUAL																		NONACCRUAL WITH NO ALLOWANCE
(In Millions)	CURRENT		30 – 59 DAYS PAST DUE		60 – 89 DAYS PAST DUE		90 DAYS OR MORE PAST DUE		TOTAL ACCRUAL		NONACCRUAL		TOTAL LOANS AND LEASES
September 30, 2020
Commercial
Commercial and Institutional	$	9,470.9	$	21.9	$	0.2	$	0.8	$	9,493.8	$	30.2	$	9,524.0	$	11.5
Commercial Real Estate	3,361.0		0.6		8.1		—		3,369.7		3.9		3,373.6		3.9
Non-U.S.	1,441.0		—		—		—		1,441.0		—		1,441.0		—
Lease Financing, net	30.1		—		—		—		30.1		—		30.1		—
Other	213.0		—		—		—		213.0		—		213.0		—
Total Commercial	14,516.0		22.5		8.3		0.8		14,547.6		34.1		14,581.7		15.4
Personal
Private Client	11,832.8		39.4		13.3		7.5		11,893.0		—		11,893.0		—
Residential Real Estate	5,859.9		2.9		1.3		0.3		5,864.4		63.9		5,928.3		55.5
Non-U.S.	338.7		—		—		—		338.7		—		338.7		—
Other	24.6		—		—		—		24.6		—		24.6		—
Total Personal	18,056.0		42.3		14.6		7.8		18,120.7		63.9		18,184.6		55.5
Total Loans and Leases	$	32,572.0	$	64.8	$	22.9	$	8.6	$	32,668.3	$	98.0	$	32,766.3	$	70.9
	Other Real Estate Owned																$	0.9
	Total Nonaccrual Assets																$	98.9


	ACCRUAL																		NONACCRUAL WITH NO ALLOWANCE
(In Millions)	CURRENT		30 – 59 DAYS PAST DUE		60 – 89 DAYS PAST DUE		90 DAYS OR MORE PAST DUE		TOTAL ACCRUAL		NONACCRUAL		TOTAL LOANS AND LEASES
December 31, 2019
Commercial
Commercial and Institutional	$	9,068.3	$	4.1	$	9.9	$	1.2	$	9,083.5	$	7.6	$	9,091.1	$	0.8
Commercial Real Estate	3,089.6		2.3		4.1		4.7		3,100.7		3.6		3,104.3		2.4
Non-U.S.	1,576.3		—		—		—		1,576.3		—		1,576.3		—
Lease Financing, net	65.6		—		—		—		65.6		—		65.6		—
Other	164.0		—		—		—		164.0		—		164.0		—
Total Commercial	13,963.8		6.4		14.0		5.9		13,990.1		11.2		14,001.3		3.2
Personal
Private Client	11,027.9		33.2		9.5		0.3		11,070.9		0.5		11,071.4		0.5
Residential Real Estate	5,997.7		19.8		4.9		1.2		6,023.6		71.4		6,095.0		66.4
Non-U.S	174.1		0.2		—		—		174.3		0.5		174.8		0.5
Other	67.1		—		—		—		67.1		—		67.1		—
Total Personal	17,266.8		53.2		14.4		1.5		17,335.9		72.4		17,408.3		67.4
Total Loans and Leases	$	31,230.6	$	59.6	$	28.4	$	7.4	$	31,326.0	$	83.6	$	31,409.6	$	70.6
	Other Real Estate Owned																$	3.2
	Total Nonaccrual Assets																$	86.8

Modified Troubled Debt Restructurings

The following table provides, by segment and class, the number of TDR modifications of loans and leases during the three- and nine- month periods ended September 30, 2020 and 2019, and the recorded investments and unpaid principal balances as of September 30, 2020 and 2019.

TABLE 52: TROUBLED DEBT RESTRUCTURINGS


	THREE MONTHS ENDED SEPTEMBER 30, 2020								NINE MONTHS ENDED SEPTEMBER 30, 2020
($ In Millions)	NUMBER OF LOANS AND LEASES	RECORDED INVESTMENT		UNPAID PRINCIPAL BALANCE		NUMBER OF LOANS AND LEASES	RECORDED INVESTMENT		UNPAID PRINCIPAL BALANCE
Commercial
Commercial and Institutional	1	$	1.0	$	1.0	3	$	25.3	$	25.5
Total Commercial	1	1.0		1.0		3	25.3		25.5
Personal
Residential Real Estate	10	17.4		17.5		16	18.3		18.7
Total Personal	10	17.4		17.5		16	18.3		18.7
Total Loans and Leases	11	$	18.4	$	18.5	19	$	43.6	$	44.2

Note: Period-end balances reflect all paydowns and charge-offs during the period.


	THREE MONTHS ENDED SEPTEMBER 30, 2019								NINE MONTHS ENDED SEPTEMBER 30, 2019
($ In Millions)	NUMBER OF LOANS AND LEASES	RECORDED INVESTMENT		UNPAID PRINCIPAL BALANCE		NUMBER OF LOANS AND LEASES	RECORDED INVESTMENT		UNPAID PRINCIPAL BALANCE
Commercial
Commercial and Institutional	—	$	—	$	—	1	$	7.6	$	8.8
Commercial Real Estate	—	—		—		2	—		—
Total Commercial	—	—		—		3	7.6		8.8
Personal
Residential Real Estate	5	3.1		3.1		31	20.6		20.8
Total Personal	5	3.1		3.1		31	20.6		20.8
Total Loans and Leases	5	$	3.1	$	3.1	34	$	28.2	$	29.6

Note: Period-end balances reflect all paydowns and charge-offs during the period.

Schedule Of Non-Troubled Debt Restructuring Modifications

The following tables provide, by segment and class, the number of total COVID-19-related loan modifications including the loan volume and deferred principal and interest balances as of September 30, 2020, for which Northern Trust applied an exemption from TDR classification that are in active deferral (loans currently in the deferral period) or completed deferral (loans that returned to their regular payment schedule).

TABLE 53: COVID-19 LOAN MODIFICATIONS NOT CONSIDERED TDRS IN ACTIVE DEFERRAL STATUS


	SEPTEMBER 30, 2020
($ In Millions)	NUMBER OF COVID-19 RELATED MODIFICATIONS	LOAN VOLUME		DEFERRED PRINCIPAL AMOUNT		DEFERRED INTEREST AMOUNT
Commercial
Commercial and Institutional	13	$	73.2	$	0.3	$	0.5
Commercial Real Estate	2	7.3		—		—
Total Commercial	15	$	80.5	$	0.3	$	0.5

Personal
Private Client	2	$	5.2	$	—	$	0.1
Residential Real Estate	53	19.3		0.3		0.3
Total Personal	55	$	24.5	$	0.3	$	0.4
Total Loans	70	$	105.0	$	0.6	$	0.9

TABLE 54: COVID-19 LOAN MODIFICATIONS NOT CONSIDERED TDRS THAT HAVE COMPLETED DEFERRAL


	SEPTEMBER 30, 2020
($ In Millions)	NUMBER OF COVID-19 RELATED MODIFICATIONS	LOAN VOLUME		DEFERRED PRINCIPAL AMOUNT		DEFERRED INTEREST AMOUNT
Commercial
Commercial and Institutional	101	$	199.7	$	5.0	$	1.5
Commercial Real Estate	104	472.2		2.9		3.3
Total Commercial	205	$	671.9	$	7.9	$	4.8

Personal
Private Client	34	$	177.6	$	2.3	$	1.1
Residential Real Estate	346	184.8		0.5		2.0
Total Personal	380	$	362.4	$	2.8	$	3.1
Total Loans	585	$	1,034.3	$	10.7	$	7.9

Not included in the table above are 31 loans with $34.3 million in loan balances as of June 30, 2020 that had been granted payment deferrals but have since paid off.