Regulatory Capital Requirements

12 Months Ended

Dec. 31, 2024

Regulatory Capital Requirements Abstract [Abstract]

Regulatory Capital Requirements

Regulatory Capital Requirements

The Corporation and the Bank are subject to various regulatory capital requirements administered by the federal bank regulatory authorities. Under these requirements, banks must maintain specific risk-based capital and leverage ratios in order to be classified as “well-capitalized.” The regulatory capital requirements impose certain restrictions upon banks that meet minimum capital requirements but are not “well-capitalized” and obligate the federal bank regulatory authorities to take “prompt corrective action” with respect to banks that do not maintain such minimum ratios. Such prompt corrective action could have a direct material effect on a bank’s financial statements.

As of December 31, 2024 and 2023, the Bank had capital ratios above the levels required for classification as a “well-capitalized” institution and had not received any regulatory notification of a lower classification. The results of the 2024 DFAST, published by the Federal Reserve Board on June 26, 2024, resulted in Northern Trust’s stress capital buffer and effective Common Equity Tier 1 capital ratio minimum requirement remaining constant at 2.5% and 7.0%, respectively, for the annual capital plan cycle, which began on October 1, 2024 and continues through September 30, 2025.

Additionally, Northern Trust’s subsidiary banks located outside the U.S. are subject to regulatory capital requirements in the jurisdictions in which they operate. As of December 31, 2024 and 2023, Northern Trust’s non-U.S. banking subsidiaries had capital ratios above their specified minimum requirements. There were no conditions or events since December 31, 2024, that management believes have adversely affected the capital categorization of any Northern Trust subsidiary bank. The following table provides capital ratios for the Corporation and the Bank determined by Basel III phased in requirements.

TABLE 122: RISK-BASED AND LEVERAGE CAPITAL AMOUNTS AND RATIOS

	DECEMBER 31, 2024								DECEMBER 31, 2023
($ In Millions)	STANDARDIZED APPROACH				ADVANCED APPROACH				STANDARDIZED APPROACH				ADVANCED APPROACH
	BALANCE		RATIO		BALANCE		RATIO		BALANCE		RATIO		BALANCE		RATIO
Common Equity Tier 1 Capital
Northern Trust Corporation	$	11,038.2	12.4	%	$	11,038.2	14.5	%	$	10,179.4	11.4	%	$	10,179.4	13.4	%
The Northern Trust Company	9,983.8		11.4		9,983.8		13.6		10,806.2		12.2		10,806.2		14.6
Minimum to qualify as well-capitalized:
Northern Trust Corporation	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
The Northern Trust Company	5,703.2		6.5		4,789.1		6.5		5,768.4		6.5		4,808.6		6.5
Tier 1 Capital
Northern Trust Corporation	11,870.2		13.3		11,870.2		15.6		11,023.9		12.3		11,023.9		14.5
The Northern Trust Company	9,983.8		11.4		9,983.8		13.6		10,806.2		12.2		10,806.2		14.6
Minimum to qualify as well-capitalized:
Northern Trust Corporation	5,336.4		6.0		4,555.3		6.0		5,371.6		6.0		4,558.8		6.0
The Northern Trust Company	7,019.4		8.0		5,894.2		8.0		7,099.5		8.0		5,918.3		8.0
Total Capital
Northern Trust Corporation	13,423.2		15.1		13,217.3		17.4		12,733.9		14.2		12,514.7		16.5
The Northern Trust Company	11,241.7		12.8		11,035.8		15.0		12,279.3		13.8		12,060.2		16.3
Minimum to qualify as well-capitalized:
Northern Trust Corporation	8,894.0		10.0		7,592.1		10.0		8,952.7		10.0		7,598.0		10.0
The Northern Trust Company	8,774.2		10.0		7,367.8		10.0		8,874.4		10.0		7,397.9		10.0
Tier 1 Leverage
Northern Trust Corporation	11,870.2		8.1		11,870.2		8.1		11,023.9		8.1		11,023.9		8.1
The Northern Trust Company	9,983.8		6.9		9,983.8		6.9		10,806.2		8.0		10,806.2		8.0
Minimum to qualify as well-capitalized:
Northern Trust Corporation	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
The Northern Trust Company	7,262.3		5.0		7,262.3		5.0		6,764.0		5.0		6,764.0		5.0
Supplementary Leverage
Northern Trust Corporation	N/A		N/A		11,870.2		8.9		N/A		N/A		11,023.9		8.6
The Northern Trust Company	N/A		N/A		9,983.8		7.5		N/A		N/A		10,806.2		8.5
Minimum to qualify as well-capitalized:
Northern Trust Corporation	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
The Northern Trust Company	N/A		N/A		3,974.3		3.0		N/A		N/A		3,825.6		3.0

Under the final Basel III rules, the Corporation and the Bank are required to calculate and publicly disclose risk-based capital ratios using two methodologies: an advanced approach and a standardized approach. Under the advanced approach, credit RWA are based on internal credit models and parameters. Additionally, the advanced approach incorporates operational risk RWA. Under the standardized approach, RWA are based on supervisory prescribed risk weights that are primarily dependent on counterparty type and asset class.

Pursuant to the Federal Reserve Board's implementation in the final Basel III rules of a provision of the Dodd-Frank Act, the capital adequacy of the Corporation and the Bank is assessed based on the lower of the advanced approach or standardized approach capital ratios.