XML 48 R37.htm IDEA: XBRL DOCUMENT v3.23.1
Allowance for Credit Losses (Tables)
 3 Months Ended
Mar. 31, 2023
Receivables [Abstract]  
Allowance for Credit Loss
The following table provides information regarding changes in the total allowance for credit losses during the three months ended March 31, 2023 and 2022.
TABLE 47: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES
THREE MONTHS ENDED MARCH 31, 2023
(In Millions)LOANSUNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDITHELD TO MATURITY DEBT SECURITIESOTHER FINANCIAL ASSETSTOTAL
Balance at Beginning of Period$144.3 $38.5 $16.0 $0.8 $199.6 
Charge-Offs(4.0)— — — (4.0)
Recoveries1.1 — — — 1.1 
Net Recoveries (Charge-Offs)(2.9)— — — (2.9)
Provision for Credit Losses(1)
18.5 (4.2)— 0.2 14.5 
Balance at End of Period$159.9 $34.3 $16.0 $1.0 $211.2 
(1) The table excludes a provision for credit losses of $0.5 million for the three months ended March 31, 2023 for AFS debt securities. See further detail in Note 4—Securities.
THREE MONTHS ENDED MARCH 31, 2022
(In Millions)LOANS AND LEASESUNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDITHELD TO MATURITY DEBT SECURITIESOTHER FINANCIAL ASSETSTOTAL
Balance at Beginning of Period$138.4 $34.1 $11.2 $1.0 $184.7 
Charge-Offs(0.1)— — — (0.1)
Recoveries3.3 — — — 3.3 
Net Recoveries (Charge-Offs) 3.2 — — — 3.2 
Provision for Credit Losses(5.3)3.4 3.4 0.1 1.6 
Balance at End of Period$136.3 $37.5 $14.6 $1.1 $189.5 
(1) The table excludes a provision for credit losses of $0.4 million for the three months ended March 31, 2022 for AFS debt securities. See further detail in Note 4—Securities.
The following table provides information regarding changes in the total allowance for credit losses related to loans and leases, including undrawn loan commitments and standby letters of credit, by segment during the three months ended March 31, 2023 and 2022.
TABLE 48: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES RELATED TO LOANS AND LEASES
THREE MONTHS ENDED MARCH 31, 2023
LOANSUNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
(In Millions)COMMERCIALPERSONALTOTALCOMMERCIALPERSONALTOTAL
Balance at Beginning of Period$116.2 $28.1 $144.3 $36.3 $2.2 $38.5 
Charge-Offs(4.0)— (4.0)— — — 
Recoveries— 1.1 1.1 — — — 
Net Recoveries (Charge-Offs)(4.0)1.1 (2.9)— — — 
Provision for Credit Losses18.6 (0.1)18.5 (5.0)0.8 (4.2)
Balance at End of Period$130.8 $29.1 $159.9 $31.3 $3.0 $34.3 
THREE MONTHS ENDED MARCH 31, 2022
LOANS AND LEASESUNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
(In Millions)COMMERCIALPERSONALTOTALCOMMERCIALPERSONALTOTAL
Balance at Beginning of Period$105.6 $32.8 $138.4 $31.4 $2.7 $34.1 
Charge-Offs— (0.1)(0.1)— — — 
Recoveries2.2 1.1 3.3 — — — 
Net Recoveries (Charge-Offs)2.2 1.0 3.2 — — — 
Provision for Credit Losses(5.3)— (5.3)3.3 0.1 3.4 
Balance at End of Period$102.5 $33.8 $136.3 $34.7 $2.8 $37.5 
The following table provides information regarding the recorded investments in loans and the allowance for credit losses for loans and undrawn loan commitments and standby letters of credit by segment as of March 31, 2023 and December 31, 2022.
TABLE 49: RECORDED INVESTMENTS IN LOANS
MARCH 31, 2023DECEMBER 31, 2022
(In Millions)COMMERCIALPERSONALTOTALCOMMERCIALPERSONALTOTAL
Loans
Evaluated on an Individual Basis$63.3 $46.0 $109.3 $63.0 $46.1 $109.1 
Evaluated on a Collective Basis21,546.4 20,713.8 42,260.2 21,572.6 21,211.6 42,784.2 
Total Loans21,609.7 20,759.8 42,369.5 21,635.6 21,257.7 42,893.3 
Allowance for Credit Losses on Loans
Evaluated on an Individual Basis9.0 2.0 11.0 10.4 — 10.4 
Evaluated on a Collective Basis121.8 27.1 148.9 105.8 28.1 133.9 
Allowance Assigned to Loans130.8 29.1 159.9 116.2 28.1 144.3 
Allowance for Undrawn Loan Commitments and Standby Letters of Credit
Evaluated on an Individual Basis— — — — — — 
Evaluated on a Collective Basis31.3 3.0 34.3 36.3 2.2 38.5 
Allowance Assigned to Undrawn Loan Commitments and Standby Letters of Credit31.3 3.0 34.3 36.3 2.2 38.5 
Total Allowance Assigned to Loans and Undrawn Loan Commitments and Standby Letters of Credit$162.1 $32.1 $194.2 $152.5 $30.3 $182.8 
Debt Securities, Held-to-maturity, Allowance for Credit Loss The following table provides information regarding changes in the total allowance for credit losses for HTM debt securities during the three months ended March 31, 2023 and 2022.
TABLE 50: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES RELATED TO HELD TO MATURITY DEBT SECURITIES
THREE MONTHS ENDED MARCH 31, 2023
(In Millions)CORPORATE DEBTNON-U.S. GOVERNMENTSUB-SOVEREIGN, SUPRANATIONAL, AND NON-U.S. AGENCY BONDS
OBLIGATIONS OF STATES AND POLITICAL SUBDIVISIONS(1)
COVERED BONDSOTHERTOTAL
Balance at Beginning of Period$1.9 $3.6 $4.0 $1.5 $0.1 $4.9 $16.0 
Provision for Credit Losses— 0.3 0.1 (0.2)— (0.2)— 
Balance at End of Period$1.9 $3.9 $4.1 $1.3 $0.1 $4.7 $16.0 
(1) The allowance for Obligations of States and Political Subdivisions is related to (non pre-refunded) municipal securities that do not fall under Northern Trust’s zero-loss assumption.
THREE MONTHS ENDED MARCH 31, 2022
(In Millions)CORPORATE DEBTNON-U.S. GOVERNMENTSUB-SOVEREIGN, SUPRANATIONAL, AND NON-U.S. AGENCY BONDSOBLIGATIONS OF STATES AND POLITICAL SUBDIVISIONSCOVERED BONDSOTHERTOTAL
Balance at Beginning of Period$1.4 $1.9 $3.0 $— $0.1 $4.8 $11.2 
Provision for Credit Losses0.2 1.5 1.6 — — 0.1 3.4 
Balance at End of Period$1.6 $3.4 $4.6 $— $0.1 $4.9 $14.6 
Schedule of Accrued Liabilities
The following table provides the amount of accrued interest excluded from the amortized cost basis of the following portfolios.
TABLE 51: ACCRUED INTEREST
(In Millions)MARCH 31, 2023DECEMBER 31, 2022
Loans$210.8 $203.1 
Debt Securities
Held to Maturity66.0 63.2 
Available for Sale136.5 147.1 
Other Financial Assets59.0 43.8 
Total$472.3 $457.2