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Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 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 nine months ended September 30, 2023 and 2022.
TABLE 52: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES
THREE MONTHS ENDED SEPTEMBER 30, 2023
(In Millions)LOANSUNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDITHELD TO MATURITY DEBT SECURITIESOTHER FINANCIAL ASSETSTOTAL
Balance at Beginning of Period$152.5 $26.0 $16.7 $1.0 $196.2 
Charge-Offs(0.8)— — — (0.8)
Recoveries1.1 — — — 1.1 
Net Recoveries (Charge-Offs)0.3 — — — 0.3 
Provision for (Release of) Credit Losses(1)
14.0 2.3 (1.8)0.1 14.6 
Balance at End of Period$166.8 $28.3 $14.9 $1.1 $211.1 
(1) The table excludes a release of credit reserves of $0.6 million for the three months ended September 30, 2023 for AFS debt securities.
NINE MONTHS ENDED SEPTEMBER 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(5.6)— — — (5.6)
Recoveries3.0 — — — 3.0 
Net Recoveries (Charge-Offs)(2.6)— — — (2.6)
Provision for (Release of) Credit Losses(1)
25.1 (10.2)(1.1)0.3 14.1 
Balance at End of Period$166.8 $28.3 $14.9 $1.1 $211.1 
(1) The table excludes a release of credit reserves of $0.6 million for the nine months ended September 30, 2023 for AFS debt securities. See further detail in Note 4—Securities.
THREE MONTHS ENDED SEPTEMBER 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$138.2 $43.5 $15.4 $1.1 $198.2 
Charge-Offs(5.4)— — — (5.4)
Recoveries0.9 — — — 0.9 
Net Recoveries (Charge-Offs) (4.5)— — — (4.5)
Provision for (Release of) Credit Losses(1)
5.0 (2.8)(0.4)(0.4)1.4 
Balance at End of Period$138.7 $40.7 $15.0 $0.7 $195.1 
(1) The table excludes a release of credit reserves of $0.9 million for the three months ended September 30, 2022 for AFS debt securities. See further detail in Note 4—Securities.
NINE MONTHS ENDED SEPTEMBER 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(5.5)— — — (5.5)
Recoveries9.7 — — — 9.7 
Net Recoveries (Charge-Offs)4.2 — — — 4.2 
Provision for (Release of) Credit Losses(1)
(3.9)6.6 3.8 (0.3)6.2 
Balance at End of Period$138.7 $40.7 $15.0 $0.7 $195.1 
(1) The table excludes a provision for credit losses of $0.8 million for the nine months ended September 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, including undrawn loan commitments and standby letters of credit, by segment during the three and nine months ended September 30, 2023 and 2022.
TABLE 53: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES RELATED TO LOANS
THREE MONTHS ENDED SEPTEMBER 30, 2023
LOANSUNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
(In Millions)COMMERCIALPERSONALTOTALCOMMERCIALPERSONALTOTAL
Balance at Beginning of Period$124.0 $28.5 $152.5 $23.3 $2.7 $26.0 
Charge-Offs(0.5)(0.3)(0.8)— — — 
Recoveries— 1.1 1.1 — — — 
Net Recoveries (Charge-Offs)(0.5)0.8 0.3 — — — 
Provision for (Release of) Credit Losses13.9 0.1 14.0 2.2 0.1 2.3 
Balance at End of Period$137.4 $29.4 $166.8 $25.5 $2.8 $28.3 
NINE MONTHS ENDED SEPTEMBER 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(4.5)(1.1)(5.6)— — — 
Recoveries0.1 2.9 3.0 — — — 
Net Recoveries (Charge-Offs) (4.4)1.8 (2.6)— — — 
Provision for (Release of) Credit Losses25.6 (0.5)25.1 (10.8)0.6 (10.2)
Balance at End of Period$137.4 $29.4 $166.8 $25.5 $2.8 $28.3 
THREE MONTHS ENDED SEPTEMBER 30, 2022
LOANS AND LEASESUNDRAWN LOAN COMMITMENTS AND STANDBY LETTERS OF CREDIT
(In Millions)COMMERCIALPERSONALTOTALCOMMERCIALPERSONALTOTAL
Balance at Beginning of Period$102.5 $35.7 $138.2 $40.3 $3.2 $43.5 
Charge-Offs(4.9)(0.5)(5.4)— — — 
Recoveries0.3 0.6 0.9 — — — 
Net Recoveries (Charge-Offs)(4.6)0.1 (4.5)— — — 
Provision for (Release of) Credit Losses2.7 2.3 5.0 (2.8)— (2.8)
Balance at End of Period$100.6 $38.1 $138.7 $37.5 $3.2 $40.7 
NINE MONTHS ENDED SEPTEMBER 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(4.9)(0.6)(5.5)— — — 
Recoveries2.7 7.0 9.7 — — — 
Net Recoveries (Charge-Offs)(2.2)6.4 4.2 — — — 
Provision for (Release of) Credit Losses(2.8)(1.1)(3.9)6.1 0.5 6.6 
Balance at End of Period$100.6 $38.1 $138.7 $37.5 $3.2 $40.7 
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 September 30, 2023 and December 31, 2022.
TABLE 54: RECORDED INVESTMENTS IN LOANS
SEPTEMBER 30, 2023DECEMBER 31, 2022
(In Millions)COMMERCIALPERSONALTOTALCOMMERCIALPERSONALTOTAL
Loans
Evaluated on an Individual Basis$27.4 $67.3 $94.7 $63.0 $46.1 $109.1 
Evaluated on a Collective Basis21,959.9 21,522.4 43,482.3 21,572.6 21,211.6 42,784.2 
Total Loans21,987.3 21,589.7 43,577.0 21,635.6 21,257.7 42,893.3 
Allowance for Credit Losses on Loans
Evaluated on an Individual Basis8.3 2.0 10.3 10.4 — 10.4 
Evaluated on a Collective Basis129.1 27.4 156.5 105.8 28.1 133.9 
Allowance Assigned to Loans137.4 29.4 166.8 116.2 28.1 144.3 
Allowance for Undrawn Loan Commitments and Standby Letters of Credit
Evaluated on an Individual Basis— — — — — — 
Evaluated on a Collective Basis25.5 2.8 28.3 36.3 2.2 38.5 
Allowance Assigned to Undrawn Loan Commitments and Standby Letters of Credit25.5 2.8 28.3 36.3 2.2 38.5 
Total Allowance Assigned to Loans and Undrawn Loan Commitments and Standby Letters of Credit$162.9 $32.2 $195.1 $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 nine months ended September 30, 2023 and 2022.
TABLE 55: CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES RELATED TO HELD TO MATURITY DEBT SECURITIES
THREE MONTHS ENDED SEPTEMBER 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$1.4 $5.4 $3.4 $1.3 $0.1 $5.1 $16.7 
Provision for (Release of) Credit Losses(0.1)(0.8)(0.5)(0.1)— (0.3)(1.8)
Balance at End of Period$1.3 $4.6 $2.9 $1.2 $0.1 $4.8 $14.9 
(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.
NINE MONTHS ENDED SEPTEMBER 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 
Provision for (Release of) Credit Losses(0.6)1.0 (1.1)(0.3)— (0.1)(1.1)
Balance at End of Period$1.3 $4.6 $2.9 $1.2 $0.1 $4.8 $14.9 
(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 SEPTEMBER 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$1.8 $3.8 $4.8 $— $0.1 $4.9 $15.4 
Provision for (Release of) Credit Losses(0.3)(0.7)(1.0)— — 1.6 (0.4)
Balance at End of Period$1.5 $3.1 $3.8 $— $0.1 $6.5 $15.0 
NINE MONTHS ENDED SEPTEMBER 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 (Release of) Credit Losses0.1 1.2 0.8 — — 1.7 3.8 
Balance at End of Period$1.5 $3.1 $3.8 $— $0.1 $6.5 $15.0 
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)SEPTEMBER 30, 2023DECEMBER 31, 2022
Loans$249.4 $203.1 
Debt Securities
Held to Maturity82.7 63.2 
Available for Sale138.0 147.1 
Other Financial Assets58.4 43.8 
Total$528.5 $457.2