Loans (Tables)

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Loans

Amounts outstanding for Loans, by segment and class, are shown in the following table.

TABLE 46: LOANS

(In Millions)	SEPTEMBER 30, 2023		DECEMBER 31, 2022
Commercial
Commercial and Institutional(1)	$	12,061.3	$	12,415.0
Commercial Real Estate	5,063.1		4,773.0
Non-U.S.(1)	2,857.8		3,131.1
Other	2,005.1		1,316.5
Total Commercial	21,987.3		21,635.6
Personal
Private Client	14,068.6		14,119.0
Residential Real Estate	6,285.8		6,413.5
Non-U.S.	432.6		510.0
Other	802.7		215.2
Total Personal	21,589.7		21,257.7
Total Loans	$	43,577.0	$	42,893.3

(1) Commercial and institutional and commercial-non-U.S. combined include $4.8 billion and $5.6 billion of private equity capital call finance loans at September 30, 2023 and December 31, 2022, respectively.

Borrower Ratings

Loan segment and class balances as of September 30, 2023 and December 31, 2022 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 47: CREDIT QUALITY INDICATOR AT AMORTIZED COST BASIS BY ORIGINATION YEAR

September 30, 2023	TERM LOANS												REVOLVING LOANS		REVOLVING LOANS CONVERTED TO TERM LOANS
(In Millions)	2023		2022		2021		2020		2019		PRIOR						TOTAL
Commercial
Commercial and Institutional
Risk Rating:
1 to 3 Category	$	355.1	$	539.8	$	874.3	$	95.9	$	148.3	$	417.6	$	5,148.5	$	16.0	$	7,595.5
4 to 5 Category	689.9		818.7		669.7		147.6		125.0		180.4		1,549.0		75.3		4,255.6
6 to 9 Category	13.9		71.1		69.3		12.2		0.1		1.7		41.5		0.4		210.2
Total Commercial and Institutional	1,058.9		1,429.6		1,613.3		255.7		273.4		599.7		6,739.0		91.7		12,061.3
Commercial Real Estate
Risk Rating:
1 to 3 Category	334.2		331.8		183.5		19.1		40.8		45.9		47.7		0.5		1,003.5
4 to 5 Category	1,360.9		1,260.2		541.7		228.7		254.9		136.7		202.7		7.4		3,993.2
6 to 9 Category	16.2		3.3		21.6		—		8.2		14.6		2.5		—		66.4
Total Commercial Real Estate	1,711.3		1,595.3		746.8		247.8		303.9		197.2		252.9		7.9		5,063.1
Commercial Real Estate Gross Charge-offs	—		(4.5)		—		—		—		—		—		—		(4.5)
Non-U.S.
Risk Rating:
1 to 3 Category	842.6		—		43.9		65.4		35.8		3.2		823.5		—		1,814.4
4 to 5 Category	689.6		0.8		—		—		23.1		180.2		88.7		—		982.4
6 to 9 Category	46.5		14.5		—		—		—		—		—		—		61.0
Total Non-U.S.	1,578.7		15.3		43.9		65.4		58.9		183.4		912.2		—		2,857.8
Other
Risk Rating:
1 to 3 Category	1,190.9		—		—		—		—		—		—		—		1,190.9
4 to 5 Category	814.2		—		—		—		—		—		—		—		814.2
Total Other	2,005.1		—		—		—		—		—		—		—		2,005.1
Total Commercial	6,354.0		3,040.2		2,404.0		568.9		636.2		980.3		7,904.1		99.6		21,987.3
Commercial Gross Charge-offs	—		(4.5)		—		—		—		—		—		—		(4.5)
Personal
Private Client
Risk Rating:
1 to 3 Category	326.5		218.2		44.4		70.0		15.1		25.0		5,723.2		172.8		6,595.2
4 to 5 Category	305.3		467.8		686.6		99.9		155.4		165.7		5,115.6		429.5		7,425.8
6 to 9 Category	18.3		4.4		—		—		—		17.8		7.1		—		47.6
Total Private Client	650.1		690.4		731.0		169.9		170.5		208.5		10,845.9		602.3		14,068.6
Residential Real Estate
Risk Rating:
1 to 3 Category	198.7		536.2		565.4		405.1		154.2		729.2		229.2		—		2,818.0
4 to 5 Category	115.1		644.7		682.6		672.1		273.7		863.7		142.9		—		3,394.8
6 to 9 Category	—		17.5		5.5		2.2		11.0		33.8		3.0		—		73.0
Total Residential Real Estate	313.8		1,198.4		1,253.5		1,079.4		438.9		1,626.7		375.1		—		6,285.8
Residential Real Estate Gross Write-offs	(0.8)		—		—		—		—		(0.3)		—		—		(1.1)
Non-U.S.
Risk Rating:
1 to 3 Category	16.1		3.7		0.6		—		—		5.5		54.0		—		79.9
4 to 5 Category	9.0		20.7		39.4		—		18.8		8.3		249.0		7.5		352.7
Total Non-U.S.	25.1		24.4		40.0		—		18.8		13.8		303.0		7.5		432.6
Other
Risk Rating:
1 to 3 Category	90.5		—		—		—		—		—		—		—		90.5
4 to 5 Category	712.2		—		—		—		—		—		—		—		712.2
Total Other	802.7		—		—		—		—		—		—		—		802.7
Total Personal	1,791.7		1,913.2		2,024.5		1,249.3		628.2		1,849.0		11,524.0		609.8		21,589.7
Personal Gross Charge-offs	(0.8)		—		—		—		—		(0.3)		—		—		(1.1)
Total Loans	$	8,145.7	$	4,953.4	$	4,428.5	$	1,818.2	$	1,264.4	$	2,829.3	$	19,428.1	$	709.4	$	43,577.0
Total Loans Gross Charge-offs	$	(0.8)	$	(4.5)	$	—	$	—	$	—	$	(0.3)	$	—	$	—	$	(5.6)

December 31, 2022	TERM LOANS												REVOLVING LOANS		REVOLVING LOANS CONVERTED TO TERM LOANS
(In Millions)	2022		2021		2020		2019		2018		PRIOR						TOTAL
Commercial
Commercial and Institutional
Risk Rating:
1 to 3 Category	$	753.3	$	1,087.5	$	209.8	$	159.3	$	45.9	$	511.3	$	6,032.8	$	17.7	$	8,817.6
4 to 5 Category	744.1		740.6		300.8		191.1		151.4		174.7		1,102.3		32.9		3,437.9
6 to 9 Category	50.8		30.5		—		13.7		—		—		64.5		—		159.5
Total Commercial and Institutional	1,548.2		1,858.6		510.6		364.1		197.3		686.0		7,199.6		50.6		12,415.0
Commercial Real Estate
Risk Rating:
1 to 3 Category	318.7		227.4		123.6		123.5		39.8		39.1		113.4		3.0		988.5
4 to 5 Category	968.5		1,040.0		637.8		447.3		153.0		256.9		181.5		17.5		3,702.5
6 to 9 Category	7.7		22.7		—		49.1		—		—		2.5		—		82.0
Total Commercial Real Estate	1,294.9		1,290.1		761.4		619.9		192.8		296.0		297.4		20.5		4,773.0
Non-U.S.
Risk Rating:
1 to 3 Category	991.9		46.2		109.6		14.8		—		6.5		1,158.3		—		2,327.3
4 to 5 Category	459.0		—		—		—		—		214.9		89.5		1.8		765.2
6 to 9 Category	0.1		—		—		23.1		—		—		15.4		—		38.6
Total Non-U.S.	1,451.0		46.2		109.6		37.9		—		221.4		1,263.2		1.8		3,131.1
Other
Risk Rating:
1 to 3 Category	993.9		—		—		—		—		—		—		—		993.9
4 to 5 Category	322.6		—		—		—		—		—		—		—		322.6
Total Other	1,316.5		—		—		—		—		—		—		—		1,316.5
Total Commercial	5,610.6		3,194.9		1,381.6		1,021.9		390.1		1,203.4		8,760.2		72.9		21,635.6
Personal
Private Client
Risk Rating:
1 to 3 Category	395.5		159.9		50.5		313.6		13.4		18.5		5,352.5		28.2		6,332.1
4 to 5 Category	430.3		755.1		192.4		191.3		38.7		160.0		5,728.6		267.2		7,763.6
6 to 9 Category	0.9		—		0.1		—		18.6		—		3.7		—		23.3
Total Private Client	826.7		915.0		243.0		504.9		70.7		178.5		11,084.8		295.4		14,119.0
Residential Real Estate
Risk Rating:
1 to 3 Category	871.6		666.7		567.7		168.1		102.9		750.8		128.4		7.9		3,264.1
4 to 5 Category	354.3		656.7		597.6		290.0		170.9		838.2		180.4		1.0		3,089.1
6 to 9 Category	—		6.8		1.5		1.1		3.7		35.9		11.3		—		60.3
Total Residential Real Estate	1,225.9		1,330.2		1,166.8		459.2		277.5		1,624.9		320.1		8.9		6,413.5
Non-U.S.
Risk Rating:
1 to 3 Category	3.0		3.7		—		—		4.6		2.3		124.6		—		138.2
4 to 5 Category	24.2		40.3		—		21.3		3.2		2.9		272.0		7.8		371.7
6 to 9 Category	—		—		—		—		—		0.1		—		—		0.1
Total Non-U.S.	27.2		44.0		—		21.3		7.8		5.3		396.6		7.8		510.0
Other
Risk Rating:
1 to 3 Category	190.8		—		—		—		—		—		—		—		190.8
4 to 5 Category	24.4		—		—		—		—		—		—		—		24.4
Total Other	215.2		—		—		—		—		—		—		—		215.2
Total Personal	2,295.0		2,289.2		1,409.8		985.4		356.0		1,808.7		11,801.5		312.1		21,257.7
Total Loans	$	7,905.6	$	5,484.1	$	2,791.4	$	2,007.3	$	746.1	$	3,012.1	$	20,561.7	$	385.0	$	42,893.3

Delinquency Status

The following table provides balances and delinquency status of accrual and nonaccrual loans by segment and class, as well as the other real estate owned and nonaccrual asset balances, as of September 30, 2023 and December 31, 2022.

TABLE 48: 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
September 30, 2023
Commercial
Commercial and Institutional	$	12,032.4	$	7.9	$	1.6	$	3.1	$	12,045.0	$	16.3	$	12,061.3	$	6.9
Commercial Real Estate	5,059.9		—		—		—		5,059.9		3.2		5,063.1		3.2
Non-U.S.	2,854.8		3.0		—		—		2,857.8		—		2,857.8		—
Other	2,005.1		—		—		—		2,005.1		—		2,005.1		—
Total Commercial	21,952.2		10.9		1.6		3.1		21,967.8		19.5		21,987.3		10.1
Personal
Private Client	13,911.3		91.0		13.4		33.1		14,048.8		19.8		14,068.6		17.8
Residential Real Estate	6,254.9		—		1.4		—		6,256.3		29.5		6,285.8		28.1
Non-U.S.	432.6		—		—		—		432.6		—		432.6		—
Other	802.7		—		—		—		802.7		—		802.7		—
Total Personal	21,401.5		91.0		14.8		33.1		21,540.4		49.3		21,589.7		45.9
Total Loans	$	43,353.7	$	101.9	$	16.4	$	36.2	$	43,508.2	$	68.8	$	43,577.0	$	56.0
	Other Real Estate Owned										$	0.3
	Total Nonaccrual Assets										$	69.1

	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
December 31, 2022
Commercial
Commercial and Institutional	$	12,353.7	$	40.2	$	3.0	$	0.7	$	12,397.6	$	17.4	$	12,415.0	$	4.4
Commercial Real Estate	4,761.5		1.3		—		—		4,762.8		10.2		4,773.0		6.2
Non-U.S.	3,131.1		—		—		—		3,131.1		—		3,131.1		—
Other	1,316.5		—		—		—		1,316.5		—		1,316.5		—
Total Commercial	21,562.8		41.5		3.0		0.7		21,608.0		27.6		21,635.6		10.6
Personal
Private Client	13,843.5		192.3		29.9		53.3		14,119.0		—		14,119.0		—
Residential Real Estate	6,373.2		9.6		12.3		0.1		6,395.2		18.3		6,413.5		18.3
Non-U.S	509.9		—		—		0.1		510.0		—		510.0		—
Other	215.2		—		—		—		215.2		—		215.2		—
Total Personal	20,941.8		201.9		42.2		53.5		21,239.4		18.3		21,257.7		18.3
Total Loans	$	42,504.6	$	243.4	$	45.2	$	54.2	$	42,847.4	$	45.9	$	42,893.3	$	28.9
	Other Real Estate Owned										$	—
	Total Nonaccrual Assets										$	45.9

Modified Troubled Debt Restructurings

The following table provides, by segment and class, the number of TDR modifications of loans entered into during the three and nine months ended September 30, 2022, and the recorded investments and unpaid principal balances as of September 30, 2022.

TABLE 51: TROUBLED DEBT RESTRUCTURINGS

		THREE MONTHS ENDED SEPTEMBER 30, 2022					NINE MONTHS ENDED SEPTEMBER 30, 2022
($ In Millions)	LOAN MODIFICATION DETAIL	NUMBER OF LOANS AND LEASES	RECORDED INVESTMENT		UNPAID PRINCIPAL BALANCE		NUMBER OF LOANS AND LEASES	RECORDED INVESTMENT		UNPAID PRINCIPAL BALANCE
Commercial
Commercial and Institutional	Interest rate concession, extension of term and other modification	1	$	0.1	$	0.1	2	$	0.6	$	0.6
Commercial Real Estate	Interest rate concession and other modification	1	31.6		32.5		1	31.6		32.5
Total Commercial		2	31.7		32.6		3	32.2		33.1
Personal
Residential Real Estate	Interest rate concession, deferrals of principal, extension of term and other modification	1	0.1		0.1		3	0.2		0.2
Total Personal		1	0.1		0.1		3	0.2		0.2
Total Loans and Leases		3	$	31.8	$	32.7	6	$	32.4	$	33.3

Note: Period-end balances reflect all pay downs and charge-offs during the year.

Financing Receivable, Troubled Debt Restructuring

The following table shows the amortized cost basis of loan modifications provided to financially distressed borrowers that impacted the respective cash flows of the underlying loans as of September 30, 2023, disaggregated by relevant class of financing receivable and type of modification provided.

TABLE 49: LOAN MODIFICATIONS MADE TO BORROWERS EXPERIENCING FINANCIAL DIFFICULTY

		THREE MONTHS ENDED SEPTEMBER 30, 2023				NINE MONTHS ENDED SEPTEMBER 30, 2023
(in $ million)	LOAN MODIFICATION DETAIL	AMORTIZED COST BASIS		% OF TOTAL SEGMENT		AMORTIZED COST BASIS			% OF TOTAL SEGMENT
Commercial
Commercial and Institutional	Extension of term	$	16.7	0.14	%	$	16.7		0.14	%
Commercial Real Estate	Combination of principal and/or interest deferral and extension of term	—		—		—		(1)	—
Total Commercial		16.7		0.08		16.7			0.08
Personal
Residential Real Estate	Principal and/or interest deferral	0.1		—		3.2			0.05
Residential Real Estate	Combination of principal and/or interest deferral and extension of term	4.7		0.08		4.7			0.08
Private Client	Extension of term	—		—		—		(1)	—
Total Personal		4.8		0.02		7.9			0.04
Total Loans		$	21.5	0.05	%	$	24.6		0.06	%

(1) Included are financially distressed modifications of $32.5 million (combinations of principal and/or interest deferral and term extensions) for the commercial real estate portfolio and $0.2 million (term extensions) for the private client portfolio for which the respective loans had no amortized cost basis as of the end of the respective period. The $32.5 million loan was fully repaid during the second quarter of 2023.

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty.

TABLE 50: FINANCIAL EFFECT OF MODIFICATIONS MADE TO BORROWERS EXPERIENCING FINANCIAL DIFFICULTY

	THREE MONTHS ENDED SEPTEMBER 30, 2023	NINE MONTHS ENDED SEPTEMBER 30, 2023
	FINANCIAL EFFECT	FINANCIAL EFFECT
PRINCIPAL AND INTEREST DEFERRAL
Commercial
Commercial Real Estate	—	Northern Trust provided a weighted average of 6 months payment deferrals to borrowers for total deferred principal and interest of $32.5 million.
Personal
Residential Real Estate	Northern Trust provided a weighted average of 9 months payment deferrals to borrowers for immaterial principal and interest deferral amounts.	Northern Trust provided a weighted average of 9 months payment deferrals to borrowers for immaterial principal and interest deferral amounts.
TERM EXTENSION
Commercial
Commercial and Institutional	Northern Trust provided weighted average term extensions of 12 months.	Northern Trust provided weighted average term extensions of 12 months.
Commercial Real Estate	—	Northern Trust provided weighted average term extensions of 6 months.
Personal
Residential Real Estate	Northern Trust provided weighted average term extensions of 9 months.	Northern Trust provided weighted average term extensions of 9 months.
Private Client	—	Northern Trust provided weighted average term extensions of 60 months.