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Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2023
Receivables [Abstract]  
Allowance for Credit Loss
The following table provides information regarding changes in the total allowance for credit losses during the three and six months ended June 30, 2023 and 2022.
TABLE 52: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES
THREE MONTHS ENDED JUNE 30, 2023
(In Millions)LOANSUNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDITHELD TO MATURITY DEBT SECURITIESOTHER FINANCIAL ASSETSTOTAL
Balance at Beginning of Period$159.9 $34.3 $16.0 $1.0 $211.2 
Charge-Offs(0.8)— — — (0.8)
Recoveries0.8 — — — 0.8 
Net Recoveries (Charge-Offs)— — — — — 
(Release of) Provision for Credit Losses(1)
(7.4)(8.3)0.7 — (15.0)
Balance at End of Period$152.5 $26.0 $16.7 $1.0 $196.2 
(1) The table excludes a release of credit reserves of $0.5 million for the three months ended June 30, 2023 for AFS debt securities. See further detail in Note 4—Securities.
SIX MONTHS ENDED JUNE 30, 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(4.8)— — — (4.8)
Recoveries1.9 — — — 1.9 
Net Recoveries (Charge-Offs)(2.9)— — — (2.9)
(Release of) Provision for Credit Losses(1)
11.1 (12.5)0.7 0.2 (0.5)
Balance at End of Period$152.5 $26.0 $16.7 $1.0 $196.2 
(1) There was no provision for credit losses for the six months ended June 30, 2023 for AFS debt securities. See further detail in Note 4—Securities.
THREE MONTHS ENDED JUNE 30, 2022
(In Millions)LOANS AND LEASESUNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDITHELD TO MATURITY DEBT SECURITIESOTHER FINANCIAL ASSETSTOTAL
Balance at Beginning of Period$136.3 $37.5 $14.6 $1.1 $189.5 
Charge-Offs— — — — — 
Recoveries5.5 — — — 5.5 
Net Recoveries (Charge-Offs) 5.5 — — — 5.5 
(Release of) Provision for Credit Losses(1)
(3.6)6.0 0.8 — 3.2 
Balance at End of Period$138.2 $43.5 $15.4 $1.1 $198.2 
(1) The table excludes a provision for credit losses of $1.3 million for the three months ended June 30, 2022 for AFS debt securities. See further detail in Note 4—Securities.
SIX MONTHS ENDED JUNE 30, 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)
Recoveries8.8 — — — 8.8 
Net Recoveries (Charge-Offs)8.7 — — — 8.7 
(Release of) Provision for Credit Losses(1)
(8.9)9.4 4.2 0.1 4.8 
Balance at End of Period$138.2 $43.5 $15.4 $1.1 $198.2 
(1) The table excludes a provision for credit losses of $1.7 million for the six months ended June 30, 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 and six months ended June 30, 2023 and 2022.
TABLE 53: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES RELATED TO LOANS AND LEASES
THREE MONTHS ENDED JUNE 30, 2023
LOANSUNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
(In Millions)COMMERCIALPERSONALTOTALCOMMERCIALPERSONALTOTAL
Balance at Beginning of Period$130.8 $29.1 $159.9 $31.3 $3.0 $34.3 
Charge-Offs— (0.8)(0.8)— — — 
Recoveries0.1 0.7 0.8 — — — 
Net Recoveries (Charge-Offs)0.1 (0.1)— — — — 
(Release of) Provision for Credit Losses(6.9)(0.5)(7.4)(8.0)(0.3)(8.3)
Balance at End of Period$124.0 $28.5 $152.5 $23.3 $2.7 $26.0 
SIX MONTHS ENDED JUNE 30, 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)(0.8)(4.8)— — — 
Recoveries0.1 1.8 1.9 — — — 
Net Recoveries (Charge-Offs) (3.9)1.0 (2.9)— — — 
(Release of) Provision for Credit Losses11.7 (0.6)11.1 (13.0)0.5 (12.5)
Balance at End of Period$124.0 $28.5 $152.5 $23.3 $2.7 $26.0 
THREE MONTHS ENDED JUNE 30, 2022
LOANS AND LEASESUNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
(In Millions)COMMERCIALPERSONALTOTALCOMMERCIALPERSONALTOTAL
Balance at Beginning of Period$102.5 $33.8 $136.3 $34.7 $2.8 $37.5 
Charge-Offs— — — — — — 
Recoveries0.2 5.3 5.5 — — — 
Net Recoveries (Charge-Offs)0.2 5.3 5.5 — — — 
(Release of) Provision for Credit Losses(0.2)(3.4)(3.6)5.6 0.4 6.0 
Balance at End of Period$102.5 $35.7 $138.2 $40.3 $3.2 $43.5 
SIX MONTHS ENDED JUNE 30, 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)— — — 
Recoveries2.4 6.4 8.8 — — — 
Net Recoveries (Charge-Offs)2.4 6.3 8.7 — — — 
(Release of) Provision for Credit Losses(5.5)(3.4)(8.9)8.9 0.5 9.4 
Balance at End of Period$102.5 $35.7 $138.2 $40.3 $3.2 $43.5 
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 June 30, 2023 and December 31, 2022.
TABLE 54: RECORDED INVESTMENTS IN LOANS
JUNE 30, 2023DECEMBER 31, 2022
(In Millions)COMMERCIALPERSONALTOTALCOMMERCIALPERSONALTOTAL
Loans
Evaluated on an Individual Basis$26.7 $51.2 $77.9 $63.0 $46.1 $109.1 
Evaluated on a Collective Basis22,334.5 21,134.3 43,468.8 21,572.6 21,211.6 42,784.2 
Total Loans22,361.2 21,185.5 43,546.7 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 Basis115.0 26.5 141.5 105.8 28.1 133.9 
Allowance Assigned to Loans124.0 28.5 152.5 116.2 28.1 144.3 
Allowance for Undrawn Loan Commitments and Standby Letters of Credit
Evaluated on an Individual Basis— — — — — — 
Evaluated on a Collective Basis23.3 2.7 26.0 36.3 2.2 38.5 
Allowance Assigned to Undrawn Loan Commitments and Standby Letters of Credit23.3 2.7 26.0 36.3 2.2 38.5 
Total Allowance Assigned to Loans and Undrawn Loan Commitments and Standby Letters of Credit$147.3 $31.2 $178.5 $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 and six months ended June 30, 2023 and 2022.
TABLE 55: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES RELATED TO HELD TO MATURITY DEBT SECURITIES
THREE MONTHS ENDED JUNE 30, 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 $3.9 $4.1 $1.3 $0.1 $4.7 $16.0 
(Release of) Provision for Credit Losses(0.5)1.5 (0.7)— — 0.4 0.7 
Balance at End of Period$1.4 $5.4 $3.4 $1.3 $0.1 $5.1 $16.7 
(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.
SIX MONTHS ENDED JUNE 30, 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 
(Release of) Provision for Credit Losses(0.5)1.8 (0.6)(0.2)— 0.2 0.7 
Balance at End of Period$1.4 $5.4 $3.4 $1.3 $0.1 $5.1 $16.7 
(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 JUNE 30, 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$1.6 $3.4 $4.6 $— $0.1 $4.9 $14.6 
Provision for Credit Losses0.2 0.4 0.2 — — — 0.8 
Balance at End of Period$1.8 $3.8 $4.8 $— $0.1 $4.9 $15.4 
SIX MONTHS ENDED JUNE 30, 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 Losses0.4 1.9 1.8 — — 0.1 4.2 
Balance at End of Period$1.8 $3.8 $4.8 $— $0.1 $4.9 $15.4 
Schedule of Accrued Liabilities
The following table provides the amount of accrued interest excluded from the amortized cost basis of the following portfolios.
TABLE 56: ACCRUED INTEREST
(In Millions)JUNE 30, 2023DECEMBER 31, 2022
Loans$227.2 $203.1 
Debt Securities
Held to Maturity77.9 63.2 
Available for Sale169.5 147.1 
Other Financial Assets52.6 43.8 
Total$527.2 $457.2